Trade Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Tuesday 13th October 2020 Lords Chamber

The main point is that logistics people will do what they are asked to do, but it is up to the Government to make proper arrangements. If these are inadequate, both physically and operationally, it is unacceptable for the Government to try to lay the blame not on themselves, having not prepared the ground properly, but on the operators—they are often very low-level employees—who are bound to carry it out. There was some talk in the press this week of fining the National Health Service because it is falling behind in routine operations. If that is the way the Government are going to treat the logistics industry, we are in for a very rough ride.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I speak to offer the Green group’s support for Amendment 46 and closely associate myself with the remarks of the noble Lords presenting it, particularly the noble Earl, Lord Clancarty, and the noble Baroness, Lady Bull.

I was going to be brief but I really want to respond to what the noble Baroness, Lady Noakes, said. She suggested that the amendment seeks to recreate what was lost. No, it is trying to save what is threatened: the businesses, livelihoods and professional lives of people who have, as the noble Baroness, Lady McIntosh of Pickering, alluded to, spent many years studying—and invested their time, energy and finances—to develop lives that are now under serious threat.

The noble Baroness, Lady Bull, in her useful setting out of the different ways in which the exchange has happened, spoke about where services are an integral component of a good being sold. We think of companies that have offered long-term service contracts for goods sold into the EU and EEA and the difficulties that they might experience in continuing those service contracts unless we have the kind of mobility framework offered here. We are now on a rescue mission.

I do not think anyone else has referred to this in detail but we have to go back to what we will be missing if we do not have the opportunity for EU/EEA citizens to come into the UK under this kind of mobility framework. There is the important area of language studies. Sadly, we have seen some documentation since the vote in 2016 showing that interest in language study, at least in our schools, has actually fallen. If we are to continue to operate in this world, where we are going to have much more complex relationships with other countries in Europe than we do now, we will desperately need those language skills. The reciprocal side of this is of course that Britons have the very valuable skill of being native English speakers that they can take around the continent and beyond.

We need to have quality of language teaching and development of language skills in the UK. Most of the teaching assistants in our schools are native speakers from other parts of Europe. These are crucial issues, so I commend the amendment to the House.

[Lord Berkeley (Lab) [V]]

My Lords, I too support the amendment. It is very important, and noble Lords who have spoken have made some very good arguments in favour of it. As we all know, free movement within the EU has been very important for education, services and other businesses as well as for people getting to know each other. It could easily and should still happen after Brexit, but that needs the Government to support the idea positively and proactively even after we have left.

Transport is of course part of mobility. It must be cheap, reliable and accessible. Although Covid-19 has caused a massive reduction in demand, it is still there and it still needs to be there. However, the situation regarding the Government’s support is still very confusing and uncertain for services and their users. I have been trying to get answers from the Government for several months on how much in loans, guarantees or grants they have given to each of the international transport sectors, by which I mean air, sea, road and rail. I have had two Written Answers saying that that information per sector is commercially confidential. Surprisingly, maybe, I got a letter from the noble Baroness, Lady Vere, this morning saying that providers have many options as to how to find money, but with no comparators.

I can see why the noble Baroness could not see tell me about comparators. If one digs a little deeper, one finds that in the maritime sector—ferries—the Public Accounts Committee recently reported that the Government had written off £85 million for cancelled ferry contracts, which included a settlement with Eurotunnel of £33 million because apparently the Government had forgotten that Eurotunnel took the same kind of traffic that the ferries do. Noble Lords will remember that the Government spent £14 million on a company called Seaborne Freight, which owned a non-existent ferry and whose terms and conditions of carriage on its website appeared to have been copied from an online takeaway.

In the air sector, airlines have had soft loans to keep them alive. The noble Baroness said in a Written Answer that the Government were

“working closely with the aviation sector to support it to ensure there is sufficient capacity”.

They have spent £3 billion on keeping the franchise railways going, and that is good, but for cross-channel rail there is not a penny to ensure sufficient capacity. According to a presentation by the High Speed 1 chief executive Dyan Crowther to the all-party rail group last week, Eurostar has received no government guarantees or support and is likely to reduce the number of trains a day that it operates, possibly to between three and five or even fewer in order to survive. These are of course low-emission services, and I remind Ministers that, according to Eurostar, if all the passengers who took Eurostar in the last few years were to transfer to air, the increase in emissions would be equivalent to 40 new Luton Airports. We love Luton Airport but the emissions from 40 of them is hard to imagine.

Is there a solution? I suggest there are many that the Government ought to adopt. The European Union Council has adopted emergency measures to give member states the opportunity to reduce infrastructure charges to zero for trains. Italy and France are thinking about it, Austria has done it and the UK could do the same; it would be nothing to do with Europe but they could do it for HS1 to reduce the track access charges to just the direct costs. That might cost HS1 about £100 million but let us not forget that the Government made about £2 billion selling HS1 to the private sector, so they could afford to do this through HS1. It would mean that all train operators got the same benefit on that loan.

I hope the Minister can provide some comfort that Eurostar services can survive, providing the availability of a cost-effective and environmentally friendly transport service for those who want to work, live or study for the purpose of trade and goods. It would be a disaster if it were forced to close.

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[Baroness Noakes (Con)]

My Lords, I wish to speak only to Amendment 82 in this group. I generally try not to speak on matters about Northern Ireland, because life is too short.

I completely agree with what my noble friend Lord Lansley said on the trader support service. In particular, I am sure that, if there were a need for further support at the end of the two years, any responsible Government would ensure that such support was available. I remind noble Lords that it is a temporary facility in order to help traders become accustomed to the new arrangements, whatever they finally turn out to be. It includes training. It is not to take over from the traders handling the paperwork; it is to train them so that it becomes part of their everyday activities. In that context, two years may well still be enough, although I accept that there is uncertainty at the moment.

The amendment says that the service can be accessed at no cost—that is, of course, no cost to the trader, but there will be a cost to the public purse. I just say to noble Lords that, if they pass the amendment, they are walking straight into financial privilege.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I will be brief. The noble Lord, Lord Hain, and the noble Baroness, Lady Ritchie, have outlined clearly the sad and urgent need for these amendments. I particularly commend the words of the noble Baroness, Lady Ritchie, speaking from the heart from a lifetime of experience on the ground. Lives and businesses have been peacefully and productively intertwined between Northern Ireland and Ireland and must not be torn asunder.

It is a year since I came into your Lordships’ House. I did not appreciate then—although, in retrospect, perhaps I should have, given that it was just after the unlawful Prorogation of the other place—that in 12 months’ time I would have to join a broad coalition of fellow Peers speaking up simply for the rule of law, the Government having explicitly disavowed adherence to it.

We are daily reminded of the fragility, instability and weakness of our current institutional arrangements and the pressing need to make the UK a modern, functional democracy. I go back to a paper from the Constitution Society in 2019, which noted:

“We have long assumed that those who rise to high office will be ‘good chaps’”.


The gendered nature of that phrase is telling but not my main point. The paper concludes that general standards of good behaviour among senior UK politicians can no longer be taken for granted.

Reflecting on the suggestion of the noble Lord, Lord Lansley, that these amendments are unnecessary because they are already covered, my response would be that, on an issue of this importance, we need to seek every possible protective mechanism in these circumstances. That is the context in which these amendments come before us. The practical reality is that they create laws that then may well have to be enforced on the Government. I urge the proponents to pursue them to the utmost.

[Baroness Suttie (LD) [V]]

My Lords, in his eloquent speech, the noble Lord, Lord Hain, set out the background and the history to this important group of amendments on Northern Ireland. I am pleased to have been able to add my name to the amendments. I am also delighted to have received the support of the noble Lord, Lord Lansley, on Amendment 58, although I felt that there were perhaps some contradictions in his argumentation. I look forward to seeing him in our Division Lobbies when we come to vote on this on Report.

We heard some extremely passionate speeches from other noble Lords, in particular from the noble Baroness, Lady Ritchie of Downpatrick, who has also signed these amendments and who spoke so movingly about the realities and threats that we face on the ground in Northern Ireland. I shall limit my remarks to Amendments 58 and 59.

As the noble Lord, Lord Hain, said, if a year ago there was already a strong case for these amendments, since the introduction of the internal market Bill they have become ever more important to safeguarding the Good Friday/Belfast agreement. I hope that these amendments, or similar, will be retabled on Report, so that we can test the opinion of the House.

It is worth briefly recalling how the Government have taken us to this point. We are in this situation because from the outset the Government have promised a series of incompatible things, namely that the whole of the UK would leave the customs union and the single market, that special status for Northern Ireland was ruled out and that there should remain no border on the island of Ireland.

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[Baroness Neville-Rolfe (Con)]

My Lords, I rise as someone with many years of experience in supply chains, including just-in-time supply chains. This area is often a problem in trade agreements, and indeed in the operation of such free trade agreements. I remember all the difficulties affecting our shoppers when quotas and rows between the EU and China held up bras and shoes on the high seas—not perishable, but as important as chicken for many of us. Food is trickier than goods, as noble Lords will remember from strikes affecting Channel crossings and the Icelandic ash cloud.

The point I want to make is that EU exit, or any continuity or future trade agreements, are likely to lead to changes in supply chains. We should embrace this, and I am afraid that I am not convinced that we need Amendments 70 and 95.

My own view is that the combination of more border checks, whether we agree a deal on trade with the EU and EEA or not—that is the reality—will change trade flows. New FTAs will bring changes in tariff schedules, rules of origin and perhaps new provisions on standards. This could be a huge opportunity at home for British industries and parts of British agriculture, as buyers turn to home production to avoid the complexities. Of course, they will also face competition, but I know from experience as a business executive that competition makes business sharper and better.

There may be a need for some transitional arrangements in EU or other FTAs—fisheries is an obvious area—and even help for small firms wrestling with new checks. But we should not seek an additional transition period with the EU, as my noble friend Lady Noakes has just said. We should not try to preserve existing systems in aspic, however good the intentions of those debating this Bill today. We will do much better if we lead the way in embracing the opportunities of EU exit and of new trade agreements.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I shall speak first, briefly, to linked Amendments 70 and 95, in the names of the noble Baroness, Lady McIntosh, and the noble Lord, Lord Wigley. I note that a Member of your Lordships’ House, the noble Lord, Lord Agnew, today found himself getting some attention for a claim that traders were taking a “head-in-the-sand” approach to trade post Brexit. I do not think that I could do better in response than quote the chief operating officer of the Food and Drink Federation:

“If any traders have their head in the sand it’s because, after many frustrating months awaiting critical answers, they probably think it’s more likely they’ll find those answers in the sand than they will from the Government.”


That was coming from an organisation which is not, I think it would be fair to say, a natural critic of the Government. I hope that the comments of the noble Lord, Lord Agnew, do not accurately reflect the view of the Government, and in particular that they do not indicate that they do not understand the extremely difficult position of small businesses, with so much else to deal with at the moment. We do not want to risk seeing them battered further on an uneven playing field by larger firms that are more likely to have the resources to react—something to which the noble Baroness, Lady Neville-Rolfe, just alluded.

I want to speak mostly to Amendment 93, in the name of the noble Lord, Lord Lansley. I appreciate the chance to support an amendment in his name, since we have had some disagreement on other elements of this Bill. I think that this is the first time that the issue of free zones has come up in this Committee, and I want to express the Green group’s strong opposition to the whole concept, noting that there were seven free ports in the UK at various points between 1984 and 2012 and that they were seen to have failed. Going back to the 1980s is surely not the answer for today.

I also note that the European Greens have been strong in their opposition, highlighting the links of free ports and free enterprise zones to tax avoidance, as exposed in the Madeira papers. To quote the historian, Quinn Slobodian, what they do is

“splinter the world into jurisdictions engaged in a constant competition to attract multinational companies, locking nations into a global ‘place war’ to offer businesses the most enticing incentives and the lowest labour costs.”

However, today we are mostly focusing not on the principle but on what the noble Lord, Lord Lansley, has created in his amendment, which is at least the chance of some democratic oversight and, crucially, a commitment to some local consultation. I would like to see in this amendment both a stronger position on local consultation and national oversight, noting that the impact is not only in the immediate area but in other economically similar areas, which are likely to see a loss of business and jobs to new zones. However, I hope we can return to that on Report. I will be very interested to hear the Minister’s response and perhaps what plans the Government have, particularly on local consultation and oversight, if they wish to push ahead with this revival of an old, neoliberal failure.

[Lord Fox (LD)]

My Lords, when I saw this grouping, I hoped that these speeches would identify the golden thread that linked them together. There is not one, so I will speak to them separately. I will talk to Amendment 93, in the name of the noble Lord, Lord Lansley, before coming to the other two.

I, too, agree with the noble Lord’s conjecture that there should be some parliamentary process that brings these free zones into being. I am not a fan of them, and I do not think our party is either. We think that they tend to move activity around rather than create new or larger activity, but that is not the point that we are here to debate, which is how these things are brought about and approved. I do not know about your Lordships, but I have been involved in a hell of a lot of statutory instruments in the past while, and they seem to be on some very big issues and some very trivial issues. It seems that there is no allergy in your Lordships’ House to taking on statutory instruments and trying to make decisions. Therefore to add a few more—I guess there would be a few free zones—does not seem a hugely controversial issue.

On the point made by the noble Lord, Lord Lansley, about applications coming in that had not had any form of local consultation, I can give him one idea of where people might object. There will almost certainly be planning things that will happen subsequent to the creation of a free zone, unless it is already an industrial zone. If you look at the sprawl outside airports, you start to see distribution centres and warehousing and all sorts of planning things. If I was a local resident living on the edge of or just outside somewhere that wanted to be a free zone, I would start to worry about some of those kinds of issues. So traditional planning issues would come forward—some would call them nimby and others straightforward—which would create problems, and do so for local politicians if not national ones. I am therefore very supportive of Amendment 93.

On Amendments 70 and 95, the noble Baroness, Lady Noakes, said that it would not work, and the noble Baroness, Lady Neville-Rolfe, said that manufacturers and so on need to embrace change. They may be right in both those instances, but I should caution a little compassion for the individuals concerned who are trying to make a business work. They are trying to do so when they still do not know what the rules are and in the face of all sorts of other pressures, not least Covid but also, as the noble Baroness, Lady Neville-Rolfe, said, immense international pressure and price pressure on what they are trying to do. Therefore, while the noble Baronesses might be right, I ask them, and in particular the Minister, to approach this with some compassion. Change is easy enough for some people. My father milked cows. You do not suddenly go from producing milk to producing pork pies overnight. Those kinds of changes can and do happen, but they do not happen at the turn of the year, when, eventually, the rules emerge.

I have one final point. Perhaps all of us could spend some time reading the latest edition of the GB-EU border operating model. I think my colleague my noble friend Lord Purvis, has mentioned it before. It should be compulsory reading for everyone working on this Bill. It is 138 pages, and every page has a list of at least 10 to 20 things that have either been changed or inserted in the latest edition, which was published last week. These are the things these people who have to change or get on with it have to embrace. It is hugely difficult to understand; it is a massive issue. So, the helpful slogan

“The UK’s new start: let’s get going”


is somewhat missing the point.

There is a huge amount to be done between now and the turn of the year, and the Government and the people in this Chamber need to have some air of understanding the extent to which it is threatening people’s livelihoods and putting them under pressure. These amendments are just two ways of trying to alleviate that. Overall, there has to be a wider understanding of the role of government in getting businesses past this huge change which is happening.