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—]