United Kingdom Internal Market Bill

Anne McLaughlin Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Craig Williams]

That is a wonderful intervention. Such is the power of the hon. Lady’s argument that she asks me to help her name a power in reverse. I have asked Opposition Members to name one specific power, but it has not been forthcoming. This is a complete politicisation of what is an essential Bill.

In conclusion—I am conscious of my promise to keep my contribution short—the Bill clearly does not affect the powers of the DAs. It clearly reinforces the importance of the market to the United Kingdom and to my Welsh constituency, and it clearly will protect the jobs that I have been sent here to protect. I commend the Bill and thank the Minister for promoting it.

[Anne McLaughlin (Glasgow North East) (SNP)]

I will address you in the Chair, Ms McDonagh, as is customary, but I hope through you to get a message to the people of Scotland, because it is our duty to warn those who are not yet aware of it that this Government down here in London are planning to take powers away from the Scottish Government, the Scottish Parliament and, ultimately, the people of Scotland.

They say that they have no such plans. Nobody in my party believes that, but let us say that they are correct. I am going to give a couple of examples of what we are so alarmed about, and I would be very happy for any Government Member to stand up when I have done so and tell me that I am wrong and have misunderstood. But they should be warned: if they plan to do that, they had better be able to point to the actual legislation that guarantees that our fears are unfounded. If no Government Member can do that, the people of Scotland will know. Whether this Government like it or not, an independence referendum is on its way to Scotland, and our people are watching very closely.

Let me start with the first example. We in Scotland, as Members will have heard many times today, are very proud of our minimum price controls on alcohol. It is a policy that I, as a former Member of the Scottish Parliament, and others fought tooth and nail to introduce many years ago, though unsuccessfully at the time. In fact, I remember making my speech in the Scottish Parliament, holding aloft a 2-litre bottle of what was at the time a very cheap top-strength cider, to illustrate a point. As an aside, my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald) was my researcher at the time, and his job was to buy it and empty it down the sink so that I did not take alcohol into the Chamber.

We are very proud of minimum pricing, because in two short years we have already seen a decrease in harmful drinking in Scotland. But what if we had not passed that legislation already, and what if the democratically elected Scottish Parliament wanted to do so next year, after this Bill has been enacted? It would not matter how many bottles of cheap liquor we held up. It would not matter how many stories we shared of the untold damage done to individuals and their families because of the easy and cheap access to very high-strength alcohol. It would not matter if every single Member of the Scottish Parliament—Scotland’s democratically elected Parliament—voted yes to minimum pricing next year. With this Bill, the UK Government could drive a bulldozer through it and there would be nothing we could do while we remained a part of this Union.

As we heard earlier, Professor Michael Dougan of Liverpool University has identified that Scotland’s minimum price controls could be characterised as a form of product requirement. That would mean that the principle of mutual recognition in this Bill would apply, and once that obligation applies there is virtually no scope for Scotland to justify applying new rules to imports from England.

Members might ask, “Why does that matter now? Scotland did pass minimum pricing. This legislation applies to new rules, and minimum pricing is not new.” But it does matter, because what happens when we in Scotland come to review minimum pricing? And what if, in that review, the democratically elected Scottish Parliament were to vote for tighter legislation? What if it were to step it up because it works? None of the new rules would apply to alcohol imported from elsewhere in the UK, so cheap high-strength alcohol from England, Wales and Northern Ireland could flood the market in Scotland and a bulldozer would again be driven through all of our good work.

[Alexander Stafford]

I am listening very carefully to the language the hon. Lady is using. There are lots of coulds and woulds, but no actual evidence. It is always “could” and supposition. Is she admitting that the Scottish Government do not have the power or the willpower? Concrete facts would be great.

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[Anne McLaughlin]

The hon. Gentleman is in effect saying that we have to just trust that the UK Government will not do that. I will tell him what I do trust: EU laws. In this scenario, if we were still subject to EU laws the principle of proportionality would apply and that would protect those public health decisions.

[Deidre Brock]

Further to that point, does my hon. Friend not find it extraordinary that, if the Government are so carefully minded to protect the different regulations of the nations of the UK, there is no mechanism in the Bill for negotiating or agreeing minimum standards?

[Anne McLaughlin]

I do indeed find that extraordinary, but perhaps they will have a change of heart if what the hon. Member for Rother Valley (Alexander Stafford) says—that the “could” and “should” and “would” is not going to happen—is correct. But we know that is not going to happen.

[Craig Williams]

Will the hon. Lady give way?

[Anne McLaughlin]

No, I need to get on.

The Government say that the Bill creates an internal market based on the principles of the EU single market, but there is a considerable gap between the principles enshrined in EU law and those proposed in the Bill, as I have just demonstrated. Perhaps the Government think it is in Scotland’s best interest for them to take away those controls, because they know best. I, personally, do not expect to be able to change that centuries-old colonial attitude, but it might be worth remembering that there are policies started in Scotland that have subsequently been adopted by the rest of the UK.

[Craig Williams]

rose—

[Anne McLaughlin]

I will let the hon. Gentleman intervene in a minute.

Banning smoking in public places is one such policy and plastic bag charges is another. Perhaps sometimes Scotland does know best and perhaps at other times other countries know best. This proposed legislation, however, only recognises one legislature that apparently knows, and that is the UK Government.

[Craig Williams]

rose—

[Anne McLaughlin]

The hon. Gentleman does not have to keep doing that. I said I will let him in, so I will let him in.

[Craig Williams]

I thank the hon. Lady. May I just touch on alcohol pricing? Of course, that would not change much. At the moment, if alcohol is dispatched from England, Wales or Northern Ireland, minimum pricing does not apply in Scotland, so what would the Bill actually change on alcohol pricing? It does not apply at the moment if dispatched from other parts of the UK to Scotland.

[Anne McLaughlin]

I think what the hon. Gentleman is doing is making an argument for independence. If he is saying that the only way we can control this is by Scotland becoming independent, well I will be looking forward to that in the not-too-distant future.

I want to come on to my second scenario, which is procurement. There are many differences between procurement rules in the UK and in Scotland. I will give the House some examples. Scotland excludes companies that have breached blacklisting regulations. That is a good thing, but the UK does not agree. In Scotland, public bodies are forbidden from awarding contracts solely on the basis of cost alone; not so in the rest of the UK. Scottish rules put an explicit requirement on public bodies to include conditions of contract which ensure the contractor complies with environmental, social and employment law in the performance of that contract—also a good thing, but also something where UK rules do not apply. Yet we could be compelled to ditch our rules in favour of the weaker procurement system.

Is there anything in the Bill to prevent this scenario? A company with a dodgy track record on blacklisting eyes up a juicy contract from a public body in Scotland. Could the Bill enable the dodgy company to argue that Scotland’s different rules be considered disruptive, and, in arguing thus, it becomes eligible to apply for the contract? There is nothing to stop that happening. Yet again, the UK Government are asking us to permit them to bulldoze their way through carefully crafted responsible legislation. And yes, I am aware of the exclusions, but I am also aware of the powers of the Secretary of State for Business, Energy and Industrial Strategy to alter those exclusions. And yes, I also know that this relates to goods rather than services, but after this week, when the UK Government said they would break international law, we cannot take a single assurance of theirs seriously. Still they cannot point to the legislation that guarantees that what I just described could not possibly happen.

In fact, clauses 3, 7, 6, 5 and 10 give considerable latitude to the Secretary of State to amend the scope of the mutual recognition and non-discrimination principles, by using affirmative resolution procedure. This is a sweeping power that gives very limited room for parliamentary scrutiny. The clause pays lip service to consulting with the devolved Administrations, but contains little detail on what happens if they do not consent. The dictionary definition of the word consultation is

“the process of discussing something with someone in order to get their advice or opinion about it”.

What is the point if that opinion is simply disregarded? The Government always deny that that would be the case. They say, “That will never happen. You’re making it up,” but I am afraid it happens all the time.

My very good, honest and honourable friend Michael Russell MSP, who is the Scottish Government’s Cabinet Secretary, talks of the disrespect and even hostility coming from the current UK Government towards the devolved nations, and we hear it all the time. He says that there is “no trust” between the UK and Scottish Governments. That is a ridiculous state of affairs. The UK Government can hardly claim that they are behaving respectfully when there are no safeguarding provisions in this Bill to respect the consent of the devolved Administrations by protecting the Sewel convention.

In the general election campaign, the Prime Minister drove a bulldozer with “Get Brexit done” emblazoned on it through a polystyrene wall. Now he and his colleagues are doing the same thing to the devolution settlement. We know exactly what the Prime Minister meant when he talked about taking back control. He meant that the UK Government should take back control of Scotland.

You know how sometimes a song will keep popping into your head, Ms McDonagh? Whenever I hear this Government talk about Scotland these days, the old Who song “Won’t Get Fooled Again” pops up, and there is nothing I can do to get rid of it. I will not subject you to my singing, but I will share some of the lyrics:

“I’ll tip my hat to the new constitution

Take a bow for the new revolution”—

I will miss out the bit about picking up my guitar—

“Then I’ll get on my knees and pray

We don’t get fooled again”.

“Lead, don’t leave”, we were told in 2014. I do not blame those who trusted the UK Government, but they will not be fooled again.

I want to respond to the hon. Member for Hitchin and Harpenden (Bim Afolami), although he has gone now. To win the next independence referendum, one side has to convince the people in Scotland who embraced devolution but voted no last time. Either the Unionists convince them to vote no again, or we convince them to vote yes. If the UK Government keep on with this level of respect, keep driving that bulldozer through everything we in Scotland hold dear and pass this legislation, they will be doing our jobs for us. Perhaps in time, when I look back from our newly independent country where people and the environment come before profit, my anger will, ironically, turn to gratitude.

[Claire Hanna]

I rise to support amendments 81 to 85, which are in my name. I will also pick up on a couple of the points raised by the hon. Member for Hitchin and Harpenden (Bim Afolami), who performed some logical somersaults in becoming the defender of free trade. I have to remind Members that it is this Government’s decisions that are erecting barriers, because we were already part of the largest, most stable and most successful free trading body in the world. I suppose we are the ones who are attempting to deal with the complications of those barriers.

I am not sure if it was just rhetoric, or if the hon. Gentleman genuinely does not understand why the regulations that we all shared while we were in the EU are not perceived to be such an imposition. That is the case precisely because they have raised standards in things such as environmental protection, food standards, the safety of products and toys, and workers’ rights. We see them as a guarantor, an enforcer and a raiser of standards. Unfortunately, we see the Government as no such thing, and in the first year of their term they have resisted and rejected numerous attempts to put into legislation protections for food and environmental standards. This Bill makes absolutely no mention, let alone guarantee, of consultation.

I do not like to keep refighting the last war, but the fact is that when the UK was in the EU, 95% of the regulations that the Government want to change—we never know which ones they want to change—were agreed by consensus. The UK had to oppose only 2% of them. Such consensus-based decision making is not currently enjoyed in the United Kingdom.

Our amendments 81 to 85, which are in my name and that of my hon. Friend the Member for Foyle (Colum Eastwood), are designed to address a specific issue about frontier workers, and I will take a wee minute to explain what that is. The border on the island of Ireland is soft and invisible, as Members know, and it runs for hundreds of kilometres. It goes through villages and townlands, and even through homes, churches and farms, so a lot of people live a very cross-border existence. Over the last few years we have tried to soften out some of the bumps that will come up, and that is what we are trying to do with this Bill. One of them is about frontier workers. Between 23,000 and 30,000 people routinely cross the border for their job; I am talking not about people going for social reasons or going up and down, but people whose daily commute crosses the border. That is very common, and until now people have not had to think about decisions in their personal or working life that might involve crossing a continental barrier, but now they do, and we are trying to address this.

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[Alexander Stafford]

I could not agree more, but let us be honest, SNP Members do not want to talk about success; they want to talk about breaking up the country, and about how bad it is, because they are unashamedly nationalist. That is their prerogative—they have been elected on a nationalistic ticket—and they will do anything to push this false narrative, but my hon. Friend is completely correct about the benefits. However, I do want to make some progress now.

Turning to amendments 38 and 88, it is critical that the UK Government insert the Bill as a protected enactment in respect of the devolution Acts. The Bill applies to the whole of the UK. If devolved legislatures were able to amend it, it would rupture the internal market and cause chaos for businesses and consumers. Again, I emphasise that this Bill is about businesses and consumers. We want to give them stability after we leave the European Union; we want to ensure that businesses flourish, not to try to break things up and create uncertainty for business. That is incredibly important.

Labour’s amendment 86 looks to undermine the very purpose of the Bill by expanding the definition of a “legitimate aim” to permit discrimination against incoming goods from one part of the UK to another on grounds of environmental, social and labour standards. I am sure that Members on both sides of the House agree that our country is a world leader in those areas already, and nothing will alter that fact. Accordingly, it is important that we permit internal discrimination against goods only on the most restricted and limited basis, such as to prevent threats to life. Expanding the list of legitimate aims threatens to frustrate the purpose of the Bill—the market—and to go on to fragment and balkanise our internal market. We must keep our single market as one. Therefore, I cannot see why any Member would support Labour amendment 86.

The SNP and the Alliance party have collaborated to produce new clause 5, which seeks to ensure that regulations under part 1 do not result in lower food or environmental standards applying in any part of the UK than those that already apply in the EU. It is abundantly clear that those parties have not accepted the vote of the British people in 2016, our subsequent withdrawal from the EU this past January, and now our exit from the transition period at the end of the year.

[Anne McLaughlin]

Is the hon. Gentleman aware that Scotland did not vote to leave the EU? Scotland voted to remain in the EU, and we voted quite decisively. He seems not to be able to acknowledge that.

[Alexander Stafford]

I hate to rehash the arguments, but the United Kingdom did vote to leave the European Union. I am sure that Mrs Miggins at 34 Acacia Avenue in my constituency did not vote to leave the European Union either, but we are still part of the same family and we are leaving. We cannot balkanise our country. We cannot split up this family. That is the fundamental difference between Government Members and Opposition Members. We see this as a family—a family of nations; a family of people that we love. We want to keep us together, and we will not parcel off our great country. I will not be ashamed of promoting what this country voted for.

I turn to Government new clause 12, which enables the Secretary of State to issue guidance relating to part 1 of the Bill explaining how the UK internal market principles operate, in order to support traders, regulatory authorities and the public. That guidance will help us all to understand and benefit from the Bill, which will increase the internal market. Again, I emphasise that this Bill is about the market, not politics. It is not an independence Bill or a Brexit Bill; it is a business Bill—a Bill to get businesses going and to recover our economy.

The House must pass this Bill, which protects our domestic markets, rejects separatism and division, eliminates chaos and confusion, ensures transparency and impartiality, and strengthens our world-beating standards. I believe that in doing that, the Bill, with the Government amendments, will create a better business environment for all.

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The point about professional qualifications was well made by the hon. Member for Belfast South (Claire Hanna), and it is why I was struck that my membership of the Irish Bar might be of use, because, ironically, the legal profession has always had a carve-out from those regulations. It is a recognition going back to the Act of Union that we were not seeking to impose absolutely uniformity. To respect and protect the separate legal systems in Scotland and now, separately, in Northern Ireland, legal professional regulation is different and is carved out. As an English barrister, I do not have the right automatically to practise in the courts of Scotland. If I had, I would perhaps be trying to see whether I could measure up the Lord Advocate’s office. I do not have that right, but the irony is that as a member of the Irish Bar, an EU member state Bar, I would have that right. That is perfectly reasonable and I do not have any problem with it; we know it is necessary because the legal system’s distinctiveness is part of the national character of each of the parts of the UK. However, the free flow of goods, workers and services is in everybody’s interest.

[Anne McLaughlin]

rose—

[Sir Robert Neill]

I am sure the hon. Lady would be disappointed if she did not get every speaker to give way to her at some point, so I will add myself to her set.

[Anne McLaughlin]

If the hon. Gentleman is perfectly happy for our separate legal systems to mean that someone has to be qualified in the given jurisdiction, is he not uncomfortable with the idea that teachers who learn to teach, or who do not get a teaching qualification, in one country can move to another country and teach there? If he is perfectly happy with that, may I talk about—and will he go to the Home Secretary on this—all the teachers I know who have come to this country from other countries across the world, are not allowed to transfer their qualifications and are therefore not allowed to work? If he is happy to provide support on that, I will perhaps think about what he has to say.

[Sir Robert Neill]

The first point is that there have to be professional qualifications in order to recognise the people qualified. The Bill does not seem to cause any difficulty about that. I was also making the point that the carve-out on legal qualifications accepts that there are legitimate areas of difference, but there are many other areas where it is entirely legitimate for us to try to work together as a single UK market. I would have therefore thought that the Bill was balanced and proportionate in that regard. I cited services and the importance of the financial services sector, both north and south of the border, as a key example of that. I hope that after the transition period we will also continue our good links with the financial services sector in Dublin, where a number of English legal and professional firms have bases because of those links. The Bill is not malign in any of those regards.

Although the Bill does not and need not cover this, I hope as we go forward that we will see what can be done to help other parts of the broader British family that would desire access to our new internal market—for example, the Crown dependencies, the Channel Islands and the Isle of Man. Many of their financial sectors— their trust arrangements and their banking fund arrangements—are importantly and closely linked to the City of London and the UK. The Justice Committee has oversight of the Ministry of Justice’s work on the relationships with the Crown dependencies, and I think there is a great desire to see how we can strengthen the access between them and the UK. The aspiration for the Crown dependencies to have free and unfettered access to the UK market is something we should look to explore with them on a reciprocal basis.

That particularly and specifically applies to our British territory of Gibraltar—as you know, Ms McDonagh, I have the honour to be the chair of the all-party parliamentary group on Gibraltar. It is a well expressed intention of the Gibraltar Government, supported by all parties in Gibraltar’s Parliament, to have access to, in effect, a free trade area with the United Kingdom. I hope the Minister will take that back to his colleagues in the Government, because it ought to be a no-brainer as we go forward. It causes the United Kingdom no difficulty, and it would be of considerable reassurance to the people of Gibraltar, who despite having voted overwhelmingly to remain in the European Union, none the less trumped even that and asserted their membership of the British family and the desire to remain with the United Kingdom and not to be coerced, sometimes, by their neighbours. Supporting them by making sure they have full access to the internal market ought to be a high priority, both practically and morally, for the United Kingdom Government.

Finally, there is one area that we can perhaps simplify. I am not generally in favour of simplifying or lowering food standards, and I am certainly not in favour of lowering environmental or food standards as we leave the EU or in any future free trade deal, but there is one area, ironically, where leaving the EU may give us something we can turn to our advantage, and that relates to public procurement and, in particular, local authority procurement.

As a number of hon. Members know, I served in local government for many years before I came into this House, and I was local government Minister for the first half of the coalition. One of the genuine complaints I had from councils of all political complexions was about the complexity of going through the OJEU—Official Journal of the European Union—process, where contracts over a fairly basic level had to be advertised through a pretty bureaucratic process. That had the no doubt laudable objective of ensuring that firms across the single market could access those contracts, although, in practice, doing a contract in Bromley, Merton or wherever was not likely to be attractive to a small-sized firm of builders in Poland or the Czech Republic.

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[James Daly]

Certainly, in my view, the Government have not at any point refused to give such a commitment. Let me repeat again for the hon. Member: the Government have repeatedly stated their commitment to the highest possible standards. I am talking about EU standards—standards that have regulated businesses and the various sectors of the economy to which I have referred. I would accept the argument if some evidence could be pointed to by SNP Members, but there is no evidence at all that the Government are going to derogate from the highest possible regulatory standards.

[Anne McLaughlin]

The hon. Gentleman says that there is no evidence at all that the Government will lower standards, but there is nothing to stop them doing so in the legislation. It is all very well their telling each other, chatting in the corridors and saying to us, “No, don’t worry, we won’t do that”. They have to put it in the legislation, otherwise how are we supposed to be clear that we will not have to lower standards against our will?

[James Daly]

Many, many things could happen in life, but the point remains that not one Opposition Member has been able to point to one action of the Government—they have not pointed to literally anything—that would indicate that they are derogating from the highest possible standards and the standards that we enjoy at this moment in time and that we have under the European Union.

This is a good Bill and this is a positive Bill. Rather than dwelling on the legal argument, which would be somewhat going off the point in respect of where we are today and which I am tempted to do, I will say that this is a Bill to strengthen our United Kingdom, to invest moneys in every part of it, to ensure that we have free unfettered access and to ensure that all parts of the United Kingdom are within the UK internal market, as set out in the withdrawal agreement and the Northern Ireland protocol. I congratulate Ministers on this Bill as it will only do good for our fellow citizens in all parts of the United Kingdom.