United Kingdom Internal Market Bill

Baroness Bennett of Manor Castle Excerpts
Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Wednesday 28th October 2020

(4 years ago)

Lords Chamber
Read Full debate United Kingdom Internal Market Act 2020 View all United Kingdom Internal Market Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 135-III Third Marshalled list for Committee - (28 Oct 2020)
Lord Hope of Craighead Portrait Lord Hope of Craighead (CB) [V]
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My Lords, as the noble Lord, Lord German, just said, it would be far better if we did not have these provisions in the Bill at all, but one must assume that they may remain. That is why these amendments, particularly Amendments 15 and 30, to which I have added my name, address the provision which talks about consultation but does not mention the word “consent”.

I have two requests for the Minister; I will not elaborate further on what the noble Lord, Lord German, said in his very helpful introduction to this group. First, would he be good enough to repeat, in the context to which these amendments refer, the assurance he has already given that the Sewel convention principles will be applied without any hesitation in regard to consultation?

Secondly, will the Minister consider whether it would not be wise, in view of the importance of the clauses in which these provisions appear, to adopt the system used, he will recall, in the European Union (Withdrawal) Act 2018 when considering the system of seeking the consent of the devolved Administrations—Assemblies, Senates and Parliaments—to the modification of EU law? He may recall that Ministers were given power to restrict the powers of the devolved Administrations to modify EU law in certain respects by delegated legislation. Provided for in Part 1 of Schedule 3 was a system whereby the Parliaments, Senate and Assembly were given an opportunity to provide consent. The wording in the Scotland provision was:

“A Minister of the Crown must not lay for approval before each House of the Parliament of the United Kingdom a draft of a statutory instrument containing”


the relevant

“regulations … unless … the Scottish Parliament has made a consent decision in relation to the laying of the draft, or … the 40 day period has ended without the Parliament having made such a decision.”


If it came to the point of there being no consent, when the Minister of the Crown laid this draft, as mentioned, before either House, he would be required to explain his decision to lay it without the consent of the Parliament.

That system was arrived at after a great deal of discussion in the 2018 Act; it is quite a useful one that might well be thought appropriate in this case to reduce the element of dismay which the devolved Administrations are feeling about how they are being treated by these provisions—all that has been provided for is consultation. They would at least have an opportunity in their legislatures to consider whether consent should be given. Of course, if they fail to give it within 40 days, ultimately the Minister can go ahead, provided he explains why he is doing so. There is no amendment to this effect, but this is an opportunity for the noble Lord to consider whether it would not be wise to soften the blow that has been felt by the devolved Administrations by adopting that system, which was so carefully worked out and eventually accepted in the 2018 Act.

Beyond that, I support everything the noble Lord, Lord German, has said in support of the amendments to which he has spoken.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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My Lords, it is a pleasure to follow the noble Lord, Lord German, and the noble and learned Lord, Lord Hope of Craighead. I thank them both for setting out detailed consideration of this rather long list of amendments, the length reflecting the levels of concern in the Committee about this area of the Bill.

I will speak to a series of amendments in this group to which I have attached my name, Amendments 15 and 64 in the name of the noble Baroness, Lady Finlay of Llandaff, and Amendments 16, 41, 48, 74 and 99 in the name of the noble Baroness, Lady Hayter of Kentish Town. I apologise to your Lordships for not taking part at Second Reading. My name was down to speak, but I was caught up in the collision with the Medicines and Medical Devices Bill, which also prevented me from taking part in earlier Committee sittings.

That is not the only crucial political collision we are encountering at the moment. As a former newspaper editor, I am well aware of the problem of the media being able to focus on only one issue at a time. I sought to place an article about the environmental issues in the medicines Bill with a major news outlet, and was told “No, we’ve already run too many articles on this Bill.” We are at risk of falling into the same problem with this Bill.

I can identify at least three major areas that could in normal circumstances expect attention from the serious media. Rightfully getting top billing are the Part 5 issues that we expect to get to on the final day of this Committee’s deliberations. The second area, which would normally get massive amounts of attention, is the clauses that provide powers even greater than those of Henry VIII, as the noble Baroness, Lady Andrews, the noble and learned Lord, Lord Hope of Craighead, and others spoke to so powerfully earlier today. As a former journalist, I have a shorthand for that—Henry VIII on steroids. I share the liking of the noble Lord, Lord German, for the amendments that wipe those out altogether.

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Lord Faulkner of Worcester Portrait Lord Faulkner of Worcester (Lab) [V]
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My Lords, I wish to draw the Committee’s attention to the risk to future public health policy as a result of the inconsistent nature of this Bill and focus on the impact of artificially splitting the public health exclusion so that it applies unevenly across the market access principles.

I will concentrate on Amendments 39A, 47A and 52A —tabled by the noble Lord, Lord Young of Cookham—to which I have added my name and which are also supported by the noble Baroness, Lady Northover. As the noble Lord, Lord Young of Cookham, said, the exclusions to the market access commitment differ between mutual recognition and non-discrimination. I struggle to understand the rationale of legislation that recognises the importance of allowing policy that is necessary to protect some aspects of human health but provides no equivalent avenue for others. This is not a continuation of how our internal market is currently regulated, but a significant departure from it.

The example of minimum unit pricing for alcohol, which was mentioned by the noble Lord, Lord Young, illuminates the risk of arbitrary distinctions. Much of the discussion in the House of Commons on this Bill’s health impacts revolved around its potential effects on minimum unit pricing, which arguably was covered by the mutual recognition principle. If it were covered by mutual recognition, this could have rendered any future similar policy—possibly even modifications of the existing minimum pricing regime—largely untenable due to the lack of a public health exclusion from mutual recognition.

In responding to this, rather than applying a public health exclusion to mutual recognition, the Government instead moved minimum unit pricing and similar manner-of-sale policies from mutual recognition. When introducing these amendments, the Minister in the other place said:

“We are taking the opportunity to put it beyond any possible doubt that alcohol minimum unit pricing-type regulation and any other sales requirements are not in the scope of the mutual recognition principle, unless they amount in practice to a total ban on a good being sold.”—[Official Report, Commons 29/9/2020; col. 189.]


While your Lordships may consider that this represents an improvement at face value, on closer inspection, it is a cause for considerable concern.

First, the Government’s decision to do this indicates that a thoroughly evidenced-based policy such as minimum unit pricing, which has steadily defeated challenge in the courts, might not have been possible if it were included within mutual recognition. That illustrates just how narrow the exclusions are to this principle.

Secondly, it demonstrates the risk that this Bill poses to future public health legislation. We know about minimum unit pricing, so we can modify the Bill to attempt to protect it, but it is not hard to imagine that we might in future see innovative and effective policy based on health labelling bans or content reformulation of alcohol, tobacco or food products. All these aspects would likely be subject to the rigid mutual recognition principle.

Lastly, regarding the amendments on the powers of the Secretary of State to amend the Bill through secondary legislation, the Delegated Powers and Regulatory Reform Committee concluded that the Government’s adoption in the Bill of wide-ranging Henry VIII powers, whereby:

“Any power to make regulations under this Act is exercisable by statutory instrument”


and includes the power

“to amend, repeal or otherwise modify legislation”

is completely inappropriate. In effect, it allows the removal or weakening by ministerial diktat of the limited public health protections currently included in the Bill.

At Second Reading, I discussed the importance of allowing the Governments of the four nations of the United Kingdom to protect the health of their populations and how that can lead to innovative policy solutions. The UK has been a leader in the past on tackling smoking, alcohol and sugary drinks. This legislation risks us being unable to embrace, let alone lead, key public health policies in years to come. Our amendments will protect the future of public health legislation, and I commend them to the Committee.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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My Lords, it is a pleasure to follow the noble Lord, Lord Faulkner of Worcester, who, along with many other noble Lords in this group, focused on public health. Covid-19 has reminded us how unhealthy our society is and how inadequate current arrangements are.

Given that my noble friend Lady Jones of Moulsecoomb has spoken with great power and eloquence in this group, I will be brief and address only Amendment 51 in the name of the noble Lord, Lord Stevenson of Balmacara, to which I attached my name. That amendment would provide public interest defences on trade restrictions; environmental standards and protection; animal welfare; consumer standards; employment rights; the health and life of humans, animals or plants; cultural expression; regional sociocultural characteristics; and equality entitlements, rights and protections. These describe what should be the goals of a decent Government aiming to deliver a healthy life for all their citizens and the sustainable development goals that they are signed up to.

The term “public interest” makes me think of public money for public goods. I am aware that “public goods” has a technical definition but the parallels with “public interest” in this amendment are obvious. I cannot, therefore, see how the Government can oppose it, given that they want to spend significant sums of public money for some of the same goals through the mechanisms of the Agriculture Bill and the Environment Bill, whereas here we are simply applying standards to deliver public goods. I am aware that some Members of your Lordships’ House believe that trade, and the greater volume of it, is a good in itself and should be our primary or sole aim, but we come back to the question: do we work for the economic system, or does it work for us?

Many of these discussions have a distinctly Groundhog Day feeling and the Government may respond by saying, “Our intentions are good and we are trying to deliver all these things”. I come back to the word “dictatorship”, my use of which the noble Lord, Lord True, objected to. I reserve my own right to judgment on that. In fact, I do not have to go that far for the purpose of arguing for this or other amendments. We know that Prime Ministers and Governments have not had a long shelf life in recent times, and who knows how long this one will last? We are creating a legal framework and the possibility for action by any future Government, whatever they might look like. Giving the right to all devolved Governments to act on behalf of their citizens to defend them against chlorinated chicken or fruits laced with dangerous pesticides can be the only basis for continuing in a democratic manner.

Lord Teverson Portrait Lord Teverson (LD) [V]
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My Lords, I declare my interest as chair of the Cornwall and Isles of Scilly Local Nature Partnership. I wish to speak to Amendment 52, although I support a number of other amendments in this group. That amendment has been tabled by the noble Baroness, Lady Boycott, who, in a topsy-turvy way, will follow me.

We have naturally and correctly been obsessed by the Covid-19 crisis, yet we still very much have the climate change issues—the loss of nature, the biodiversity challenge and a raft of other environmental issues of great importance, such as plastics, marine pollution and so on. Those challenges are not just global; they are national, as well as being regional and subnational. In the United Kingdom devolution is a fact of life and something that I certainly welcome. Those devolution principles allow the nations that make up the United Kingdom to be able to set their own standards in a number of areas. One key area where those standards can be different and which I believe has been particularly successful is the environmental area, and there is potential in climate change as well.

The history of devolution and different decision-making within the UK in the environmental area has been very positive. There has been almost a competition, if you like, to get ahead of other nations within the UK, and that way the bar has been raised in terms of environmental legislation and what we are trying to do. In fact, the word “experimentation” has been used previously. It is important to see what works in one part of the UK, as this is sometimes copied by others. The plastic bag policy in supermarkets, cotton buds, plastic straws—all are examples of one leading and others following. Indeed, as we have heard many times, even within the EU single market, member states have been allowed to have enhanced standards and have not been challenged.

The challenge is: how do we meet the environmental and climate crises that we have and still keep our internal market? To do that, we cannot rest on the status quo. We have to move forward on all those agendas, as indeed the noble Lord, Lord Callanan, will know well, being the Government’s climate change Minister. We cannot stay where we are and have business as usual.

We therefore need to keep these positive, competitive aspects of environmental and climate change legislation within our devolution in the United Kingdom while keeping that important single market. As has been said before in this debate, no one in this Chamber is looking to restrict that single market in any way in principle. But I believe that this Bill undermines our ability to meet our environmental objectives easily and quickly.

What does the blanket—as I see it—market access principle risk here? One thing we have is offshoring. We have been very good performers in the United Kingdom on our carbon footprint, but that is because a lot of manufacturing has perhaps gone to Asia. That is not the whole story, but it is some of it.

As the Bill stands, if we have stringent rules within one part of the UK, manufacturers would just move to another part of it and effectively import into those other regions or nations. That would be extremely negative. But one key thing would happen: rather than having a “raising the bar” competition between national authorities within the UK, we would risk moving the power to the corporate sector, which is more likely to look for efficiencies or the lowest standards in order to make sure that they can remain strong within the market. That would be a very undesirable outcome of this legislation, which is not the Government’s intention. We risk, potentially, more of a commercial race to the bottom. I have nothing against industry whatever—indeed, I wish to see it promoted—but this would change the power structure within the supply chain. It is as if the legislation were applying the harshest WTO rules internally to our own internal market.

We need to have sensible derogations that can avoid these downsides and outcomes. Amendment 52, in the name of the noble Baroness, Lady Boycott, is exactly what we need for the environment and climate change agenda and for the United Kingdom to stay ahead in this area, not just globally but nationally and regionally as well. Without such derogations, other environmental legislation at a devolved level becomes almost redundant, as it cannot be enforced because goods will come from elsewhere in the United Kingdom—or else devolution will become redundant in this area because, since England is the largest part of the market, Westminster will effectively decide the rules. That is why this amendment is vital.

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Moved by
79: Page 51, line 23, at end insert—

“Teaching Services

provision of teaching services in schools or colleges”

Member’s explanatory statement
This amendment would add the profession of teacher and teaching services to the scope of the exclusions from the Bill, in the same way that the legal professions and legal services are excluded.
Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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My Lords, I beg leave to move Amendment 79, and also to speak to Amendment 106, both of which appear in my name. I acknowledge support in preparing these amendments and presenting this information from the General Teaching Council for Scotland. I also draw on the submission of the Education Workforce Council of Wales to the UK Internal Market White Paper. The Welsh submission noted:

“There is no public register of schoolteachers in England. There are many aspects of the regulatory system in England that are different. For example, there is no requirement for employers to refer cases, and the teaching regulation authority has only one disciplinary sanction it may apply. The rest of the UK and Ireland have registration and regulatory arrangements.”


In its equivalent submission, the General Teaching Council for Scotland said that it

“does not consider that a system of mutual recognition can or should be applied to the teaching profession within the UK.”

It noted, as did the Education Workforce Council, that the systems are structured differently in England from the rest of the UK. The General Teaching Council continued:

“GTC Scotland is not prepared to lose this control over the standard of teachers entering the teaching profession in Scotland in this way and given the devolved education function within the UK, it does not believe that it would appropriate to do so.”


In Wales, the registration and regulatory arrangements were strengthened in 2015 with the reconfiguration of the General Teaching Council for Wales as the Education Workforce Council. That extended registration and regulation from just schoolteachers to include seven education professions. From 2022, Wales is introducing a new curriculum for initial teacher training relating to the specific circumstances of that nation and its systems. In Scotland, the teacher training system continues to be based on formal education, rather than the classroom-based learning that has been adopted as an alternative system in England, where unqualified teachers, who operate primarily in free schools, are allowed.

I am assured that almost all teachers coming from other parts of the UK who apply for registration in Scotland achieve it. This is not about discrimination, but keeping control and maintaining an existing and separate different system and rules, without seeing them swept aside by the Bill—or “bulldozed” in the powerful metaphor that my noble friend Lady Jones of Moulsecoomb used with broader application earlier this evening.

In referring to Northern Ireland, I start with a very useful 16-page briefing paper from the Northern Ireland Assembly. It begins by noting that there is a “complex educational structure” there. It notes that the Assembly has overall responsibility for the education of the people of Northern Ireland and for effectively implementing educational policy. Northern Ireland’s General Teaching Council is an arm’s-length body for the Department of Education, responsible for registering all teachers in grant-aided schools and approving qualifications for the purposes of registration.

We have here four very different systems that have evolved in different ways, for different purposes and for different situations. Three have registration systems under local control. England does not. Forcing them into mutual recognition is, I argue, clearly inappropriate. That is why these two amendments together aim to add the profession of teacher and teaching services to the scope of the exclusions from the Bill, in the same way that the legal professions and legal services are excluded. Mutual recognition is in no way appropriate for this situation. It involves sweeping away established, working, respected different systems. That of course was the point of devolution generally: to allow the nations to head in different directions to fit their particular cultures, circumstances and needs.

I stress that the Bill already acknowledges the different legal systems and the need for these to be treated differently. My amendments are minimalist in that they simply mirror the different treatment of lawyers in the treatment of teachers. However, the issues that I raise may well extend beyond teaching, and certainly beyond Scotland—for example, regarding social work in Wales. The Government have a great deal of work to do before Report to disentangle these complications and possibly extend the amendments even beyond what I have presented here. But adopting my amendments, or something very like them, would at least, by aligning the different treatment of legal systems with teaching, solve one of the problems.

I will continue to pursue these issues to that stage if I need to, but I very much hope that the Government will acknowledge the clear issues raised here and find their own solution to allow the existing, working, devolved systems for the registration of teachers, and possibly other related professions, to operate in all the nations of the UK where that is relevant. If they do not, I hope that some of the noble, and noble and learned, Lords in your Lordships’ House, who I am sure welcome the exemption for the legal profession from the mutual recognition provisions, might be prepared to join in the work to assist another profession to keep independent control of its own activities, as befits professional organisations in the nations of the UK. I beg to move.

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Baroness Scott of Bybrook Portrait Baroness Scott of Bybrook (Con)
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I am not going to give the noble Lord a definitive answer now but I will write to him to make sure that we are clear about that issue.

Baroness Bennett of Manor Castle Portrait Baroness Bennett of Manor Castle (GP) [V]
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I thank noble Lords who have contributed to the debate and the Minister for her response. The noble Lords, Lord German and Lord Purvis of Tweed, usefully added some pieces of history, particularly on Scotland and helped to identify that we are talking about long-separate and different systems. The noble Lord, Lord German, identified the way in which Wales has been heading in different directions. The noble Baroness, Lady Hayter of Kentish Town, stressed my point that there is no reason why teaching services should not be treated in the Bill in the same way as legal services and the noble Lord, Lord Purvis of Tweed, made an important point.

The Minister acknowledged the long-standing differences. I understood her to say that teaching would be automatically excluded without needing to be included in the Bill—at least in her initial remarks, but perhaps not so clearly in answer to the question she was asked. I know that that is not what was conveyed to the GTCS in previous discussions and that there is considerable public concern, particularly in Scotland, about these issues. I note the word that the Minister used in her comment that the nations “can” put in place alternative systems. The systems are already in place.

I will go away and look at Hansard, but I reserve the right to come back on Report. In the meantime, I beg leave to withdraw the amendment.

Amendment 79 withdrawn.