United Kingdom Internal Market Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage & Committee: 3rd sitting (Hansard) & Committee: 3rd sitting (Hansard): House of Lords
Monday 2nd November 2020 Lords Chamber

These amendments seek to correct that gross imbalance in the Bill and to make some provision for the independent governance of the internal market and UK state aid in the post-Brexit future. They have my strong support.

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

My Lords, it is a great pleasure to follow the noble Baroness, Lady Finlay, and the noble Lords, Lord Wigley and Lord Hain. I agree with much of what they have said. The noble Baroness was particularly clear in setting out the issues that arise with this group. I have attached my name to, and will speak to, Amendments 119 and 126, in the name of the noble Baroness, Lady Hayter of Kentish Town, who I thank for originating them.

They share the purpose of many amendments in this group: to ensure that the devolved nations have a voice in the operation of the internal market—the market that will govern much of what they can regulate and what protections they can provide to their peoples, as the Committee discussed last week in the group starting with Amendment 15.

As the noble Baroness, Lady Hayter, has not yet spoken, I will briefly address the detail. I interpret Amendment 119 as something of a back-up to Amendment 118, which would ensure that the Government have to obtain the consent of devolved Administrations before appointing the chair and members of the CMA’s office for the internal market panel. Amendment 119 says “seek consent”. I prefer Amendment 118, but it is important that at this stage we offer a range of amendments to the Government.

Amendment 126 refers to the membership of the OIM panel, saying that it should include representatives from each of the four nations of the United Kingdom. The purpose of these two amendments, as in so many of the amendments in this group, is—to adapt the well-known phrase— to ensure that there is no regulation, or deregulation, without representation or democracy.

In briefly making the case for these amendments, I go back to the first group debated today, which, as your Lordships will recall, related to professional qualifications. I quote the words of the noble Lord, Lord Callanan, in that debate:

“There is the whole world of artificial intelligence or gene editing—there is a massive range of new and potential professional areas, bodies and qualifications that may come forward … in the case of new professions, it is entirely possible that the individual nations of the UK might seek to regulate them differently, and we want no new barriers to trade to emerge”.


In that one short statement, the Minister managed to sum up the disturbing intention of the Government to centralise in Westminster decision-making on extremely important areas of public policy that are currently devolved; the reasons for the objections to this Bill held by many, particularly those concerned with defending the devolution settlements; and the case for these amendments. Even if the protections that the still relatively new institutions of the nations have been able to create for their peoples stay in place, they will not be able to react to social, economic or technological changes, or strengthen existing protections.

To go back to the single-use plastics example that was discussed extensively under Amendment 15, if the Welsh Government want to provide extra protections for their people and environment from these deeply damaging products, they can rush to get measures under the wire now, before the internal market replaces the single one. For what happens after that, I cannot think of better examples than those provided by the noble Lord, Lord Callanan—gene editing and artificial intelligence, where different regulations might be applied by the devolved Administrations in their areas of competence. That would include areas ranging from agriculture to education, from food safety to transport. We need to ensure that the devolved Administrations can keep control.

[Baroness Noakes (Con)]

My Lords, I listened carefully to noble Lords who spoke before me. The devolved Administrations are failing to recognise that both the CMA and the office for the internal market are fundamentally UK-wide bodies working on UK-wide issues. They are not bodies where territorial interests will be played out. The devolved nations are part of the United Kingdom, which exists and is not just a federation of four independent nations. There are clear United Kingdom functions, which is why we have UK Ministers looking out for the interests of the whole United Kingdom. We should not regard the UK as somehow morphing into an equivalence with England, which the noble Lord, Lord Hain, came close to saying, even if he did not actually say it, when he spoke earlier.

Furthermore, these significant independent public bodies should not be seen as having nominees or representatives on them: it is important that you get the best people to contribute to the functions given to these bodies by statute. Those people will require qualifications and experience. It does not matter where they come from: the most important thing is to get the right quality of individual on those bodies to carry out their functions. Any sense that those individuals become the possessions of devolved Administrations could take them into political alignment, which would have a very negative influence on the effective operation of the independent bodies.

Schedule 3 already requires consultation with the devolved Administrations over the appointment of the chair and panel of the office for the internal market. That is the normal formulation. I do not think that there is a precedent for what is proposed, for example, in Amendment 117: direct appointments by devolved Administrations to independent UK-wide bodies. That would take us in a direction that could undermine the independence and coherence of those bodies. I hope that noble Lords will not pursue their amendments.

--- Later in debate ---

[Lord Judd (Lab) [V]]

My Lords, I shall not now speak to the group starting with Amendment 134, in the name of the noble Baroness, Lady McIntosh of Pickering. As this debate went forward, I came to realise that I can perfectly adequately cover what I want to say in that context in this group.

At several points in this evening’s debate, I have been struck by the measured and telling way in which the noble and learned Lord, Lord Thomas, has said that he believes that the Bill is undemocratic. It is certainly undemocratic in the arrangements for the even distribution of resources. I do not want to become a Jeremiah; I would rather leave that role to the noble Lord, Lord Cormack. However, as someone who is half-Scottish and half-Welsh and closely identifies with both families, who has northern Irish blood, and whose wife has Welsh blood, I see disturbing trouble ahead unless we get the spirit of what we are doing right.

The key to that is to recognise that what happens in the future must belong to the people of Northern Ireland, Wales, Scotland and England. Even in the context of this debate, in an excellent speech, the noble Lord, Lord Dunlop, referred to partnership. I am not sure that partnership is an adequate description; it must be a completely common approach, in which all parties are on an equal footing.

We are rather good in this House—no less than anywhere else—at talking with utter conviction about the priorities that must be faced in political and social policy, and then failing to make consensus on the detailed policy before us. My noble friend Lady Hayman of Ullock made that point about the environment very well indeed.

If the Bill is basically undemocratic, Amendment 167 in the name of my noble friend Lord Stevenson, is highly relevant. I am very glad that he has brought into it one of the big preoccupations of this House and the other place: poverty and child poverty. He has made it central to what we are doing.

I also commend the noble Baroness, Lady Boycott, for bringing up the environment and climate change so seriously. Climate change is going to dwarf everything else that we are dealing with as it moves forward. We must not only speak about it and make dealing with it an aspiration; we have to make it central to everything that we do in mainstream policy and legislation. If this is not mainstream legislation, then I do not know what is. Therefore, it is crucial that climate change comes on board as well.

I was very glad to see the amendment in the name of the noble Baroness, Lady Bennett of Manor Castle, because obviously we want policies in the interests of the people in all four parts of the United Kingdom: Scotland, Wales, Northern Ireland and England. We want long-term policies which are sustainable and tackle climate change and the nature emergency. We have a major nature emergency at the moment, not least in the sphere of biodiversity. We need all those things, and I am glad to see that amendment there to keep our eye on the ball and our feet on the ground as we move forward, not just with a constitutional arrangement but with an arrangement that will be viable because it really belongs to all the people of the United Kingdom and deals with crucial issues that will make all our tactical politics seem pretty trifling by comparison.

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

My Lords, I thank those who assisted me in getting the chance to speak after the accidental omission of my name from the original list. It is a pleasure to follow the noble Lord, Lord Judd, and welcome his front and centring of the climate emergency and nature crisis. I thank the noble Lord for his expression of support for Amendment 169 in my name. I also thank the noble Lord, Lord Whitty, for his expression of support.

Before I get to that, I wish to briefly speak in support of Amendments 132, 167 and 168 in the name of the noble Lord, Lord Stevenson of Balmacara. It is notable that in the EU there are rules about the funds allocated for the alleviation of poverty and inequality—something that has been entirely lacking from UK practice and procedure, under which the Government have been able to direct money for electoral advantage without rules or oversight. The Americans have a word for that, “pork-barrelling”, and the practice is as unattractive as the metaphor.

I share the concerns expressed by other noble Lords speaking in this group about devolution issues, which other amendments seek to address, but as I have addressed those in other speeches I now speak chiefly to Amendment 169. It seeks to ensure that those who receive financial assistance, provided under the provisions of the internal market, can receive it only if a climate and nature emergency impact statement is undertaken first. This would ensure public money is granted only to development consistent with net climate, nature and environmental targets.

Amendment 169, and my argument for it, build on the comments of my noble friend Lady Jones of Moulsecoomb on the previous group, who reflected on the damage done by massive and continuing fossil fuel subsidies. As others have noted, my amendment has much in common with Amendment 166 in the name of the noble Baroness, Lady Boycott, to which my noble friend has already spoken, but my amendment extends further, calling for a detailed mechanism for each project, rather than the overview included in Amendment 166.

I must remind the Committee, as the noble Baroness, Lady Boycott, did, that the UK is the chair of the COP 26 climate talks. We have a responsibility to be the world leader the Government often proclaim they want to be. Green finance is an issue of great interest to a wide range of international bodies and commercial organisations. All new and continuing financial schemes, whatever their sources, have to be green, given the urgency of our climate emergency and nature crisis.

I note that on 25 June, the Committee on Climate Change made a progress report to Parliament, although we are yet to hear the Government’s response. The report showed how far our current policies are from meeting our existing commitments and the future, larger commitments we must surely make to live up to our enhanced ambition, beyond that of Paris 2015—something we have recently seen China taking a clear global leadership role in.

I refer to an Answer I received today from the noble Lord, Lord Callanan, to a Written Question on the green homes fund. I asked whether the programme would be extended and the funding enhanced. In his Answer, the noble Lord helpfully told me that £65 billion of investment will be needed for housing retrofit across the 2020s—£65 billion in nine years versus £2 billion of current funding. We clearly need to see some of the funding covered by this Bill directed towards this area, not nature-destroying, planet-trashing options.

Since the Government are very keen to look at league tables for education, we might look at two published in the last fortnight on the environment. One showed per capita contribution to plastic waste production. In this, we are, unfortunately, world-leading. We are second behind the United States on this plastic-choked planet—a huge and terrible responsibility. We have to use regulatory tools and funding to promote ways of cutting back on this. Secondly, the European Environment Agency reported that the UK has the third-greatest proportion of marine and land areas in bad conservation status; we are close behind Belgium and Denmark. More than 70% of our habitats

“exhibit overwhelmingly bad conservation status.”

Again, we must not only make sure we do not fund further damage but, as a matter of extreme urgency, direct funding in ways that start to repair the centuries of damage that has been turbocharged by our economic structure in recent decades.

These are not abstract, environmental, “nice to have” issues. They are about human survival. I ask your Lordships to think about the people of Nicaragua and Honduras seeking shelter and safety. To quote an NBC headline:

“Eta forecast to make landfall as a Category 4 hurricane, a rare occurrence in November.”


If noble Lords think that is an odd name for a hurricane, we are using the Greek alphabet now, because the normal alphabet has been exhausted this year.

The Committee might think about the people living now in low-lying areas around the world, including in the UK—we had a reference to flooding earlier. There have been reports from the Arctic of the failure of sea ice to form by the end of last month. That month broke the record for the lowest extent of sea ice in October. Its extent was more than 1.5 million square miles less than the 1980s average. That is an area larger than India, if noble Lords can envisage that.