Economic Activity of Public Bodies (Overseas Matters) Bill

Angela Rayner Excerpts

Report stage
Wednesday 25th October 2023 Commons Chamber

[Mr Deputy Speaker (Sir Roger Gale)]

I call the shadow Secretary of State.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

Following the right hon. Member for Chipping Barnet (Theresa Villiers), let me say this:

“When things are so delicate, we all have a responsibility to take additional care in the language we use, and to operate on the basis of facts alone.”—[Official Report, 23 October 2023; Vol. 738, c. 592.]

Those are the words of the Prime Minister in his statement to the House on Monday. He also said that

“this is not a time for hyperbole and simplistic solutions.”

He was absolutely right about the importance of tone in today’s debate, as we discuss the 7 October attack and events in the middle east. What we say and how we behave in this Chamber really matters, because it echoes out across the country. It goes without saying that the disgusting rise in antisemitism and Islamophobia since the attack on 7 October only makes that point more profound.

I fear that the Prime Minister’s powerful statement at the Dispatch Box earlier this week has been undermined by how he and his Ministers have brought this Bill before us today, at the last minute and with the least possible notice. The tension and disagreement surrounding the issues are well known to the Secretary of State yet, in the middle of a humanitarian emergency in the middle east, he has chosen this week of all weeks to force this legislation on to the parliamentary timetable—a Bill that fails the Prime Minister’s own test of avoiding simplistic solutions.

There can be no doubt that Labour is opposed to a policy of adopting boycott, divestment and sanctions against Israel, as it wrongly singles out one individual nation and is counterproductive to the prospect of peace. We know this is a serious issue.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

The right hon. Lady says with some force at the Dispatch Box that Labour is clearly opposed to singling out Israel through BDS measures, yet where Labour is in government in the UK—Wales—the Welsh Labour Government sought to bring forward a procurement note that singled out Israel and the Palestinian territories. Can she explain what her position was when her colleagues in Wales sought to do that?

[Angela Rayner]

I thank the right hon. Member for his intervention. We are hoping to get consensus around what we are trying to do. I stand by my statement, but we do not want one nation to be singled out in this boycott. We do not agree with boycott tactics, which is why we were concerned enough to table our amendment to the Procurement Bill back in February, when I shadowed the Cabinet Office, which would have prevented councils from singling out Israel or any other country. The Government have consistently opposed that amendment.

Today, we are presented with a Bill that will not address the problem it rightly seeks to solve. As it stands, the Bill has needlessly broad and sweeping draconian powers and far-reaching effects. It is poorly drafted legislation that risks creating fresh legal disputes, and will only serve as new flashpoints for community tension. We remain far from convinced that protracted legal battles over the BDS would serve or protect Jewish communities in the UK. My hon. Friend the Member for Wigan (Lisa Nandy) clearly spelled out those issues on Second Reading, as did my hon. Friends the Members for Nottingham North (Alex Norris) and for Caerphilly (Wayne David) in Committee. Today is the fourth time that we have presented the Government with a chance to change course and choose a more constructive way forward, yet the Bill has been brought back nearly totally unamended—the only change is to the explanatory notes. It is all too clear that the Secretary of State has not listened.

However, there is a way forward. In our view, it is not wrong for public bodies to take ethical investment and procurement decisions. There is a difference between applying consistent ethical principles in legitimate criticism of foreign Governments and what, in recent years, some individuals and organisations have tried to do: seek to target Israel alone; hold it to different standards from other countries; question its right to exist; and equate the actions of the Israeli Government to Jewish people and in doing so, create hate and hostility against Jewish people here in the UK. That is completely wrong.

Amendment 13, on which we will seek a vote today, addresses that problem. It would allow public bodies to produce a document setting out their policy on procurement and human rights. The policy would be cemented in a framework, based on principles that apply equally to all countries, rather than singling out individual nations. Such a statement of ethical policy would ensure consistency in how public bodies decide on these matters, and would be subject to guidance issued by elected Ministers and laid before this House. Any inconsistent application would be prohibited. Under Labour’s proposals, if a public body were to act only against a particular state—for instance, the world’s only Jewish state—and failed to comply a consistent approach to human rights everywhere, such actions would be unlawful. We were disappointed that the Government chose not to support our amendment at previous stages, but I repeat today our offer to the Government—indeed, the whole House—to work together and speak with one voice on this most serious of issues, by accepting the amendment.

Moving on, there are four more concerning areas in the Bill that I wish to raise briefly with the Secretary of State. First, we have serious reservations about how the Bill effectively rewrites UK foreign policy by explicitly equating Israel with the Occupied Palestinian Territories and the Golan Heights. That is an unprecedented step that, to my knowledge, has never been taken in British statute and is unique in British legislation.

--- Later in debate ---

[Andrew Western (Stretford and Urmston) (Lab)]

As my right hon. Friend knows, I am a former local authority leader in Trafford. I am incredibly proud that, when I was the leader of Trafford Council, my Labour administration took steps to cease procurement linked to the Xinjiang region because of the oppression and suppression of Uyghur Muslims. Am I correct to interpret the Bill as seeming to suggest that my Labour administration and I were incorrect to do that, and that others up and down the country who speak up for human rights and against that sort behaviour are in the wrong?

[Angela Rayner]

My hon. Friend makes a very important point, which is why we are trying to gain consensus across the House through our amendments. It is important that people should be able to raise concerns appropriately and in the best way. The Bill does not allow that. Even the Foreign Secretary’s office warned No. 10 about the impact of the Bill on our foreign commitments. For that reason, we welcome amendment 7 in the name of the right hon. Member for North West Hampshire (Kit Malthouse), which has support across the House—including from Members from the Liberal Democrat and SNP Benches. We think it will go some way to addressing the problem.

Thirdly, I want to re-emphasise the concerns raised by Members from all major parties about clause 4—the so-called gagging clause. I acknowledge the changes made to the explanatory notes in this area, but this unprecedented restriction could have far-reaching consequences for our democracy, and I urge the Secretary of State to think again. I have tabled amendment 16, which would address the issue of elected bodies. It is a mark of the concern across the House that there are so many amendments to the clause, including from Members from the Government and the SNP Benches. The seriousness of the clause must not be underestimated. It is an unprecedented restriction on the ability of the public bodies—many of them directly elected—to express a view on policy, effectively gagging them from even talking about it.

We are concerned that clause 4 would be incompatible with article 10 of the European convention on human rights, which protects freedom of expression. Labour’s amendment 14 seeks to remove the most sweeping provisions in the Bill through which the Secretary of State intends to hand himself unprecedented power to change the scope and application of the Bill through regulations.

Lastly, it is important to note that the Bill in its current form will not set out what it seeks to achieve. There are loopholes that will allow discriminatory acts to continue unchallenged. Our new clause 3 presents just one example, and I am sure that there are many more. The new clause requires the Government to review the impact of the Bill on discrimination, and addresses one form of it that has been raised with me—refusal to provide kosher food. We on the Labour Benches know that that impacts on many British Jews across this country, causing much distress and suffering. That is the type of concerning practice that should be tackled, but the Bill in its current form will not address it. I urge the Secretary of State to take a pause, take a step back, and consider that there might be another way through.

I assure the Secretary of State that Labour feels strongly that BDS practices against Israel offer no meaningful route to peace for the people of either Palestine or of Israel. As my hon. Friend the Member for Wigan said on Second Reading,

“We on the Labour Benches do not claim that all those who support BDS, despite our profound disagreement with them on that issue, are antisemitic.”—[Official Report, 3 July 2023; Vol. 735, c. 527.]

But let us be clear: the effect of BDS would be the total economic, social and cultural isolation of the world’s only Jewish state, and there are those who use the campaign to whip up hostility towards Jewish people, providing no route to peace and a two-state solution. I can assure the Secretary of State that Labour will continue to condemn and oppose that in the strongest terms. I do not believe there is genuine disagreement between us on that point.

But let me be totally clear, too, both as a shadow Minister and as deputy leader of the Labour party: now more than ever we expect councils to bring all their communities together and represent all their citizens. It would be utterly wrong to choose one community over another—or worse, pit one against another.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

I agree 100% with the right hon. Lady that we must be moderate in our tone and the language we use. Does she agree it was therefore very unhelpful for the Scottish Labour leader to use terms accusing Israel of breaching international law when we are discussing such a sensitive subject?

[Angela Rayner]

As I said at the start of the debate, people have to be responsible—and, in fairness, I acknowledged that the Prime Minister at the start of this week also outlined that people have to be responsible. I say that across the whole House and genuinely mean it: we all have to be responsible. I know people feel very strongly at the moment about these issues, and rightly so, and I hope the hon. Gentleman sees from my contribution to this debate that I am taking that very seriously as well.

We rightly expect that our local government must surely stay by the principles I mentioned, but we must also make sure that our national Government do too. That is real leadership—of our communities, and of our whole country. Instead, I fear we have a Government unwilling to recognise what is needed from them at this moment on this Bill: careful, precise deliberation and to bring communities and the country with us.

I am disappointed that the Secretary of State has taken the reckless path of forcing the Bill back to Parliament today—a Bill that fails on its own terms. His approach risks dividing our country, our communities and even his party. I urge him now not to divide the House and to accept the amendments proposed by Members on the Opposition side and his own.

For our part, Labour stands ready—as we have at every single stage of the Bill—to work constructively with the Government and other parties to build consensus behind a workable, sensible solution. There is no doubt that the people of our country want us to speak with one voice. Labour stands ready and willing to work in good faith to achieve that goal. The question is, are the Government?

[George Eustice (Camborne and Redruth) (Con)]

The Prime Minister was absolutely right earlier this week to say that the tone we adopt is incredibly important given the gravity of the events we are seeing in the middle east at the moment. Every single Member of this House is obviously absolutely horrified by the tragedy that is unfolding and the barbaric atrocities committed by Hamas. In my case, I absolutely support the right of Israel to self-defence, but it is possible to believe all these things—to be a friend of Israel, too—but nevertheless to be reluctant to pass bad legislation through this House unamended when we have the opportunity to make amendments on Report. It is possible, too, to believe strongly that freedom of contract and freedom of speech are important pillars in our liberal democracy, and that although we might sometimes fetter those key pillars of freedom and our liberal democracy, we should not do so lightly.

For that reason, I would support amendments 7 and 3 in the name of my right hon. Friend the Member for North West Hampshire (Kit Malthouse), because putting the occupied territories and Israel into the Bill is unusual for a Bill of this sort. We must ask this question: if the purpose is to make it difficult for a future Government to take a position that would change the approach to our close allies, why is the United States not also listed? Many of the groups that people object to, such as BDS, are often quite anti-American as well, so why do we not have a fuller list of countries to make it difficult for them to add?

More importantly, this sends an unfortunate signal around British foreign policy. It has been the long-standing position of all British Governments that we support a two-state solution and that the Israeli settlements in the occupied territories are illegal. That is a consistent British Government position over a long period of time, and we must be careful not to send signals that that has changed.

More importantly, I would also support amendment 3, because clause 4 is a strong violation of freedom of speech. It has come to something when we are saying that not only would people not be free to follow the procurement policy they want, but they would not even be allowed to say that the reason why they were not free to do so was this Bill. I will support amendments 7 or 3 if either go to a vote this evening.

However, I want to focus principally on the two amendments in my name—amendments 10 and 11. Although much of the debate around the Bill is understandably conducted through the context of BDS and of Israel and the Palestinian situation, the scope of clause 1 is very broad. What is before us this evening is a broad procurement Bill that places quite broad restrictions on procurements and applies to every country in the world. I presume the reason is that the Government’s legal advice was that to have something that focused just on one country, Israel, or on just one campaign group, BDS, would create some legal issues. So they then had to construct a Bill that affects every organisation, every issue and every country, and then through the schedule try to piece back some of the liberties affected by the imposition of clause 1.

I want to focus on that schedule, because it lists lots of different issues that are outside the scope of clause 1, and rightly so, including “environmental misconduct”, but there is no mention of animal welfare. There will be times when public bodies will take a procurement decision based on animal welfare. They need to be free to do that, and it is not at all clear from the schedule that that could be done. Paragraph 10 mentions “environmental misconduct” and at the end talks about

“the life and health of plants and animals”,

but it does so very much in the context of the environment and the wild environment rather than through the context of kept animals.



The Government buying standards were recently revised to encourage all public bodies and all Government Departments to take account of animal welfare in their procurement policies, but the Bill would appear to curtail the right of local authorities to do just that. Legitimate issues will come into play here. These are probing amendments on which I am looking for reassurance from the Minister and an undertaking to consider these matters further in the other place. For instance, were a local authority to judge that it would prefer to procure lamb from New Zealand over, say, Australia, because New Zealand has high animal welfare standards while the Australian sheep industry has poor levels of animal welfare and does not have in place the right regulatory powers to deal with certain practices, that would be a legitimate consideration. Indeed, it is not only legitimate but a consideration that the Government’s own buying standards and the Crown Commercial Service encourage all public bodies to pursue.

In closing, my question, which is very much linked to my two amendments, is this: is the Minister’s understanding that it would be entirely in order under the Bill for any local authority or public body to make decisions based on animal welfare, and that any such decision related to animal welfare would be totally outside the scope of clause 1?

Economic Activity of Public Bodies (Overseas Matters) Bill

Angela Rayner Excerpts

3rd reading
Wednesday 10th January 2024 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House, while opposing any discrimination or prejudice in the economic activities of public bodies, believing that all such bodies must act without bias or selectivity when making ethical decisions on procurement and investment and recognising the impact selective and biased campaigns have had on the Jewish community in particular, declines to give a Third Reading to the Economic Activity of Public Bodies (Overseas Matters) Bill because it does not effectively address the problem it rightly seeks to solve, is incompatible with international law and UN Security Council Resolutions, risks undermining support for groups around the world facing persecution, includes needlessly broad and sweeping draconian powers while placing unprecedented restrictions on public bodies to express a view on current and proposed policy and represents a major departure from the UK Government’s long-established diplomatic position on the Occupied Palestinian Territories and Golan Heights, in a way that undermines the UK’s future credibility and capacity to support diplomatic negotiations towards a just and lasting peace in Israel and Palestine based on a two-state solution, at a time when consistent support for that objective is more important than ever.”

Let me start by making clear that the Labour party completely opposes a policy of boycott, divestment and sanctions against Israel. It is in everyone’s interest that we find a way forward to address a genuine problem. Never has that been as important as it is now, at a time of heightened tensions, fear and distress both at home and abroad.

As such, throughout the passage of this Bill, we have always tried to seek consensus. We do not think it is wrong for public bodies to take ethical investment and procurement decisions. In fact, there is a long tradition of councils and other bodies taking stances on such questions. However, there is a difference between applying consistent ethical principles and legitimate criticism of foreign Governments, and what some have tried to do by targeting just one individual state—for example, the world’s only Jewish state—or, worse, using the cover of these issues to whip up prejudice or discrimination. That is completely wrong. For the Labour party, that will never change, and I thank the Secretary of State for acknowledging that we share common ground on those fundamental principles. On that basis, I had hoped that by now we would have a Bill that reflects that common ground.

However, unfortunately, our efforts for consensus have been met with blanket refusal. Four times we have come to this House with an alternative approach, and four times Ministers have led Government Members in voting down every single one of those proposals, seeking not to unite the House but to divide it in every sense. We did not want to be in this position, where the House is being told to approve such a deeply flawed piece of legislation, but regrettably that is where we have ended up, because the Bill before us is indeed deeply flawed.

The Bill contains sweeping new powers that create more uncertainty and run counter to our international obligations: provisions that would ban public bodies from making procurement decisions based on a country’s use of forced labour; a completely unprecedented clause that makes it illegal for public bodies, many of them directly elected, to express their view on policy; a new power for the Secretary of State himself to call in and interrogate those he suspects fall foul of the Bill; and, at its heart, a measure that is incompatible with both the Government’s own long-standing foreign policy and international law, flying in the face of the UK’s obligations. That is why I respectfully dispute what the Secretary of State said in his opening remarks. Explicitly equating Israel with the Occupied Palestinian Territories and the Golan Heights is an unprecedented step. To my knowledge, this wording has never appeared in British statute before, and it seriously undermines our country’s long-standing, consistent and cross-party support for a two-state solution, so I could not be more disappointed.

There are moments when all sides of this House come together to resolve the deep-seated issues facing our communities, and this could have been one of them. Instead, the Government have refused to listen, so as the Bill is read a Third time, we have had to put forward a reasoned amendment as a final plea to the Secretary of State to reconsider. We all know that this is a highly unusual procedure, so I want to make it clear why we have deemed it necessary. We recognise that there is a problem to solve and we want to solve it too, but if this Bill means a protracted legal battle in the courts, creates more uncertainty than it addresses or, worse, simply fuels yet more division, it will have achieved nothing. It could, in fact, make matters worse.

I have no doubt that this Bill will be scrutinised and challenged if sent to our colleagues in the other place. I can only hope that we find further opportunities to forge a consensus, but the Bill before the House is simply not fit to send to them. The greatest shame is that, in this challenging time, we had the chance to speak with one voice against discrimination and division, and for unity at home and lasting peace abroad, and it is in that spirit that I urge the whole House to support our amendment.

[Several hon. Members rose—]