Trade Bill Debate
Full Debate: Read Full DebateBaroness McIntosh of Pickering
Main Page: Baroness McIntosh of Pickering (Conservative - Life peer)Department Debates - View all Baroness McIntosh of Pickering's debates with the Department for Business, Energy and Industrial Strategy
(3 years, 10 months ago)
Lords ChamberMy Lords, I am grateful to the noble Lord, Lord Purvis, for giving me the opportunity to probe one particular aspect under this amendment. I also note my regret that, despite the rather energetic notes my noble friend Lord Younger of Leckie took when I asked about the rollover agreements with the economic partnership agreement countries, I have not had an answer to my question. I would be most grateful if I could have an update from my noble friend on that point before Thursday.
On the existing impact assessment and the EU agreements we have, it is worth noting that they account for only 15.7% of our trade. They are quite limited in size.
This is an interesting amendment because, at the virtual Conservative Party conference that we held last week on 4 October, we heard, apparently for the first time, the Secretary of State for International Trade, my right honourable friend Elizabeth Truss, announce that the International Trade Committee in the other place will receive a signed deal in advance of it being laid before the CRaG procedures and—this is what is new, certainly to me—an independently verified impact assessment on environmental, social, animal welfare and economic issues before the committee consults with industry experts and produces a report.
I want to take this opportunity to ask my noble friend whether this is new. When will the first such impact assessment be laid? Can he explain who will do the independent verification of such an impact assessment? I for one would certainly welcome such an impact assessment, as I am sure industry and consumers would, but I am slightly baffled as to who would do the independent verification. I would be very keen to learn that.
My Lords, this is a very important impendent indeed, and we have cause to be grateful to all those who put it on the agenda. I have never understood how you can have an effective free market of any kind without the free movement of people. It makes a nonsense of it. In that sense, the arguments have been very well rehearsed in this debate. I would just like noble Lords to know that at least one of us on these Benches—I am sure there are many more—is very much behind the amendment.
My Lords, I will focus on the narrow words in the amendment on
“the same reciprocal rights to work, live and study for the purpose of the provision of trade in goods or services.”
I make a plea to my noble friend Lady Noakes that we are trying here to grapple with reality.
I declare an interest. I practised law for approximately three years in two separate law firms in Brussels. I want to extend the same opportunities that I had to this brave new world now that we are outside the European Union and permit our qualified solicitors, barristers and advocates to do the same. What worries me is something that has been shared today in the report looking at reciprocal rights published by the EU Committee, The Future UK-EU Relationship on Professional and Business Services. I will quote from it and make sure that Hansard gets the right reference so that everyone can find it. The report summarises the default position that has been adopted; I know that this does not fall within the remit of this Bill but our free movement with the EEA does. The committee notes that the default position of the Government is mutual recognition; that is fine, but it is not happening on the basis of reciprocity.
I want to use this opportunity to probe my noble friend Lord Younger of Leckie: when he comes to reply, can he update the House as to where we are on the reciprocal arrangements, particularly with the EEA countries, under the rollover agreements? My understanding when the relevant statutory instruments went through this place was that we were, quite rightly, allowing qualified lawyers from EEA countries to carry on practising here but our qualified barristers, solicitors and advocates were not given the reciprocal arrangements. That is just plain wrong.
I recall that, at the time, a number of professionals, particularly lawyers, qualified under other jurisdictions, such as Dublin, and I was shocked to see how the cost of requalifying went up incrementally to accommodate their rights to do so. The report is very timely and highlights the fact that mutual recognition is not as reciprocal as one would hope with the EEA countries. I hope that my noble friend will put my mind at rest, as this is an area—the free movement of services—where the World Trade Organization’s record is not particularly good; it tends to be patchy. As other noble Lords have alluded to, today’s report states:
“Professional and business services are an important part of the UK economy”,
accounting for 12% of our gross value added. Others have spoken about different aspects of the economy; I just ask my noble friend that question about the professional services provided by lawyers.
My Lords, I speak from my background as somebody who has worked in logistics. I will not enter into the economic or moral arguments, although I have strong views on both. My life has been spent moving people and freight by planes, ships, lorries and trains through airports, stations and other facilities.
Last week, the Government published a large document with detailed instructions as to how this was to be carried out in future. I received part of it last night and read some of it this morning. It is very complicated and is aimed at an industry used to carrying out instructions if they are communicated in fairly simple terms and in a logical and timely fashion. The document does not pass either test; it has been published within a few weeks of our leaving the EU and, as I said, it is complicated. It has to be understood by a lot of people low down the food chain—not lawyers but lorry drivers or people operating fork-lift trucks.
My Lords, I am delighted to move Amendment 54 and speak to Amendment 55, which is in my name and those of the noble Baronesses, Lady Henig and Lady Ritchie of Downpatrick, to whom I am grateful. I am also grateful to them and the noble Baroness, Lady Jones of Moulsecoomb, for supporting Amendment 54.
At the outset, I shall refer to something that my noble friend Lord Grimstone of Boscobel said in Grand Committee on 6 October, in reply to an earlier debate. He said:
“It would require a statutory process for these food standards to be altered.”[Official Report, 6/10/20; col. GC 198.]
I should like to place on record my understanding, which was echoed by the noble Lord, Lord Purvis, that food standards are set by statutory instruments, by regulation. The noble Lord, Lord Purvis, referred to one in particular. So the regulations could be amended or repealed by statutory instrument. The reason why that is important, and why I refer to it in the context of Amendments 54 and 55, is that because of what happened yesterday there is a greater need to put these issues into the Bill to become primary legislation that can be repealed only by further primary legislation. I do not wish to dwell on what happened, but it was extraordinary. Amendment 16, in the name of the noble Lord, Lord Grantchester, was voted down, but Amendment 18, which was passed by an overwhelming majority in this place, was taken off the table.
That begs the question that I am exploring through these two probing amendments to see whether we take them further on Report. Can the Minister say what resources in terms of staff have been made available to the Trade and Agriculture Commission, which currently has only a six-month remit? My distinct impression is that it has no staff and that every meeting convened and every press conference held is staffed by members of the Department for International Trade. Does the commission have a separate budget? If so, what we are proposing in the amendment will be miniscule in comparison to the existing budget of the commission. If it has no budget and relies completely on the resources and staff of the Department for International Trade, it is—I am sorry to use the word—a sham, an empty vessel, there in name alone, purely as a sop to the farm lobby.
That is borne out by the fact that on 29 September, a shadow trade commission was set up, the Future British Standards Coalition. It includes representatives of Sustain, the leading body, as well as the Tenant Farmers Association, Public Sector 100 and many more organisations. I understand that it will be attended by the noble Baroness, Lady Boycott, and my noble friend Lord Randall of Uxbridge. As far as they are concerned, there is a need for a shadow body on an ongoing basis to set the criteria for future trade agreements, to check the criteria of the existing roll-over agreements that are before us today and to report to this place, in particular, to our International Agreements Sub-Committee.
There was great dismay that yesterday’s amendment on international standards in the name of the noble Lord, Lord Grantchester, was not carried. I declare that I am an associate of the British Veterinary Association, as set out in the register, whose president, James Russell, said yesterday:
“If the Government won’t legislate to protect our standards it is vital that the Trade and Agriculture Commission is given more powers and stature to safeguard them in future trade deals.”
I am going slightly further in my probing amendments and I draw my noble friend’s attention—I know he does his homework and I am sorry if I spoilt his weekend—to the paragraph on page 79 of the Henry Dimbleby report. This is the only reference I am going to make to that report and the annexe. In its recommendations to the Government, he says:
“The Government should give itself a statutory duty to commission an independent report on all proposed trade agreements, assessing their impact on: economic productivity; food safety and public health; the environment and climate change; society and labour; human rights; and animal welfare. This report would be presented alongside a Government response when any final trade treaty is laid before Parliament. Sufficient time must be guaranteed for the discussion of these documents in the House of Commons, the House of Lords, and by the relevant select committees”.
I thank the noble Lord for his question. We will come to GSPs in a later debate; if the perceptive points he made are not answered then, I will perhaps write to him. Secondly, I always keep an open mind about the matters that we debate. We will reflect on the debate that happened in the other place last night.
I am grateful to those noble Lords who contributed. I would be most grateful if my noble friend could extend his invitation to the noble Lord, Lord Stevenson, to myself and the other co-signatories of this amendment, and perhaps also invite the noble Lord, Lord Purvis. This formula worked extremely well with his predecessor, the noble Baroness, Lady Fairhead, who I am sure would commend it to us.
I suspected, even though I raised this in the House yesterday, that my noble friend would not have the figures on the Trade and Agriculture Commission’s budget. He will be pleased to know that I have the topical Oral Question on Thursday, when I am sure he will be able to provide those figures because they are the subject of the Question.
The International Trade Secretary herself referred to Kenya as a wonderful new country that we are going to do deals with. It subsequently found itself in a spot of bother with avocado pears; we will certainly wish to revisit that.
I do not think that any of the signatories to these amendments intend to tie the Government’s hands; indeed, I do not. The purpose of the amendments was to understand the thinking on the role of, and resources available to, the current Trade and Agriculture Commission. I have no doubt that current members of the commission do not wish to carry on, so this is an opportunity to either reappoint new members to the Trade and Agriculture Commission or revamp it into a new body, such as the one in the US calling itself an International Trade Commission.
It is always a pleasure to speak to an amendment moved by my noble friend Lord Hain on Northern Ireland affairs. His commitment to Northern Ireland is second to none, and he always speaks with great authority and concern.
The progress towards building a better future for Northern Ireland and indeed the Republic has been remarkable. However, it is a human story in which very many people have been involved and committed themselves. A great deal has been happening at the community level in Northern Ireland. Central to all that has been the need for trust. A great disturbance was caused to that healing process based on trust when we came out of the European Union because the minority population in Northern Ireland had always felt that when we were in the European Union, they had the authority of the institutions of Europe, not least the court and everything, which were there to reassure them. That was a big shock.
We then negotiated the protocols. The protocols again are crucial not just technically in trade matters but as a process of building a situation in which there can be trust and faith in the future. It is impossible to overemphasise the importance of the Good Friday agreement. Let us never forget that the Good Friday agreement became possible by the magnificent work of Tony Blair and his colleagues, but also because of the work done, before Tony Blair took office, by John Major and his colleagues.
We have a huge responsibility and we must never do anything inadvertently or indirectly—as well as directly —to undermine that process of trust building and confidence in the future. These should be our guiding principles in all that we are tackling in trade matters and I am glad that we have my noble friend Lord Hain watching it like a hawk.
My Lords, I welcome the opportunity with this small group of amendments to press forward some of the evidence that we heard on the EU Environment Sub-Committee, on which I have the privilege to sit. While my noble friend Lord Lansley said that this amendment should not be needed, I rather regret that it may be and I would like to take this opportunity to press my noble friend the Minister in this regard.
The Government have made a commitment under the Northern Irish protocol that there will be unfettered access for goods moving from Northern Ireland to the rest of the United Kingdom. The position on exit summary declarations is as yet unclear and the discussions between the Government—presumably Defra and the Department for International Trade—and the Assembly in Northern Ireland do not seem to have been going as straightforwardly as one would wish.
In the letter that we wrote to the Minister—I believe in September, so we probably have not had a reply—we highlighted the need for training and awareness raising in what information gathering those we heard from, including farming organisations, freight operators and other businesses involved in this trade, will be required to make and submit under the new checks and controls. Those we heard felt, as the noble Lord, Lord Hain, has said, that they would benefit hugely from a trusted trader scheme. It would be interesting to hear what state that is at.
With those few queries, I would be grateful if my noble friend could respond to the serious issues that were raised. This is pretty much the 11th hour. We are now in the middle of October and these checks and controls presumably are meant to be in place ahead of 1 January. These amendments provide for us to obtain an update at a timely moment.
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.
My Lords, I certainly support all that my noble friend Lord Lansley said about the importance of trade promotion and export promotion. Clearly, this is vital to underpin our success in a post-Brexit world. I also support the intention that underlies the amendment, which is to facilitate holding the Government to account for their delivery in those areas. I find it difficult, however, to support the amendment itself.
All amendments that call for reports need to be treated with a certain amount of scepticism. There is already a vehicle for delivering what the amendment asks for, which is the annual departmental report. If my noble friend had expressed his amendment in terms of a government-wide delivery on his aims, I could understand the need for it to be a free-standing report, but his amendment focuses on the Department for International Trade. Therefore, the annual report for the Department for International Trade should suffice.
There is also the International Trade Committee in the other place. We tend to be somewhat dismissive of the other place’s ability to scrutinise legislation well, but one of the things it does do well is to hold individual government departments to account. If you take the combination of a departmental report and the International Trade Committee in the other place, we have the mechanisms to achieve the very noble intents lying behind this amendment.
My Lord, I personally welcome the idea of the Secretary of State laying a report before Parliament. I have a feeling that the Secretary of State may not be minded to do so.
I am reminded of the fact that I started my political career in the European Parliament, where one of my functions was to advise my noble friend Lady Hooper, who very kindly found a letter from 1983 that I think we should frame. When I became a Member of the European Parliament for Essex North and Suffolk South, rather than an adviser to MEPs, one of the things I enjoyed the most was leading delegations of businesses to countries such as Poland, Hungary and Czechoslovakia and introducing them, through department of trade contacts, to their opposite numbers, prior to them joining the European Union. It seems a bit sad, now that we have left the European Union, but they have the benefit of all my good work in that regard.
I would like to congratulate my right honourable friend Elizabeth Truss, Secretary of State for International Trade, for being brave enough to appoint, to my certain knowledge, the first-ever agricultural attaché to China, based in Beijing. They have been there now for possibly two or more years. It could even be five years—time flies. The consequences of that single act have been magnificent. Malton Bacon Factory has been a beneficiary to the tune of millions every year because it produces pork, and we do not eat the parts that Chinese consumers take to be very appetising such as pigs’ trotters, snouts, tails and ears. The very fact that we have had a commercial attaché based there goes to the heart of what we can do. I think they are paid something like 80% by industry.
The thinking behind the amendment is very good, and I would like to see more of it. The balance is about right in terms of funding by the industry itself, but there could be some pump-priming from various departments, such as in the case I mentioned of agriculture. I hope we can learn from other countries such as Denmark, which obviously remains in the European Union. In its exports of food, particularly farm products, Denmark punches way above its weight, as we found when I led a small delegation there from the Environment, Food and Rural Affairs Committee from the other place. Denmark has a whole network in countries such as China, and indeed other European Union countries, where it uses a little bit of state funding but mostly industry funding to market, export and promote its own goods. This is something Deliciously Yorkshire has done very cleverly at a regional and national level, and I hope it is something we can roll out. I hope my noble friend will look favourably on this amendment in that regard.
My Lords, I am very grateful to the noble Lord, Lord Lansley, for moving this amendment. It has allowed us to generate a very high degree of cross-party support, and it is to be commended for that. I will try to respond to a valid point made by the noble Baroness, Lady Noakes, with regard to how reports are put together and where they best fit. I hope she does not mind me saying from these Benches that she made a good point, and that she can accept that, but maybe we need to just tweak it. If we tweak it, we may generate overwhelming consensus on this point.
I preface my remarks by referring to the work of the new all-party parliamentary group, which was so well laid out by the noble Viscount, Lord Waverley. I declare that I too am an office bearer for that group. I commend the noble Lord, other members, and the International Chamber of Commerce on their energy and direction in getting this group established. The noble Lord will forgive me if I ask that he does not invite me to any 4 am calls with the group, but I will be glad for him to send me the minutes of any discussions. In a moment I will touch on why that might be important.
I have been involved in politics since before I was elected as a Member of the Scottish Parliament representing the Borders constituency, an area extremely rich in textile heritage and industry. Having been born and brought up in that region, I have an enormous admiration for exporters. They are in many respects unsung heroes and the work that they do in supporting the UK economy can never be overestimated. They are not only men and women who trade, but pioneers searching out competitive new markets. They have to overcome many barriers, from languages to what can be very bad behaviour by companies in other countries, often on very low margins. They are at the front end. We can perhaps help them with getting cross-party support in our new trading relationships going forward from next January. I hope that the all-party group will focus on that.
I hope the Minister knows that I am sincere when I say that I will look at the Japan agreement. I will be looking at whether we are securing better market access for our textile exporters as well as guaranteeing Japanese market access to ours. As for myself and many friends of mine in the Borders, we are still stung by the multifibre agreement and the “cashmere wars”, and we know some of the challenges. This has been a long preface, but I am passionate about this.
In many respects, the support that we need to give our exporters as we go forward will be meaningfully different from what it has been in the past. I want to reflect on the different profile of trade. The noble Lord, Lord Lansley, mentioned this; I want to add some figures that I have seen from the WTO, which are quite stark. Between 1995 and 2015, the overall global most-favoured-nation tariff rate had declined from 6% to 4%; the tariff reductions had been very good. However, over a fairly comparable period from mid-2000 to 2015, non-tariff measures had grown from just over 1,000 to 2,500 as recognised by the WTO. By and large, that is because countries that are becoming more prosperous regulate their own domestic markets, introducing more standards—this links with the debate on the previous groups. On the one hand it is harder to export to those markets; on the other, those countries are operating on a basis comparable to us.
In many respects, the support that we give to our businesses allows them to understand some of these markets much more and to navigate their way around the non-tariff measures that those countries have put in place. Our whisky industry has become expert at this. In many respects, the Government learn as much from our whisky industry as many other businesses can learn from government about how to operate in the competitive global market; as we go into the “new world”, this will be important. As much as we want to advance and support our exporters, our competitor countries are doing that as well if not better.
My Lords, I am delighted to speak to Amendments 70 and 95. The noble Lord, Lord Wigley, had very much hoped to speak this evening, as he has very kindly co-signed the amendments, for which I thank him. One of the idiosyncrasies of our procedures meant that he was not able to get on to the right Marshalled List. I know that he will be following proceedings very closely and I thank him warmly for his support. I look forward to hearing my noble friend Lord Lansley speak to his amendment on free zones. Free ports are something that I support, and anything that we can do to increase people’s understanding of free ports and the fact that we could join and create as many free ports as we liked while we were members of the European Union is all to the good.
The purposes of Amendments 70 and 95 are straight- forward. They look to introduce a short period of adjustment following the end of the formal transition period at the end of this year, particularly in relation to any free trade agreements with the EU, but also with our economic partnership agreements and rollover agreements under the Bill. This would allow industries in the farming sector to make business-critical changes following the outcome of these negotiations. Also, for business viability, it refers to the introduction of measures to facilitate trade with our partners, both in the EU in a future trading agreement and our current economic partners, with the EEA, EFTA and others, in the rollover and continuity categories of agreements. Also, again, it looks to the minimisation of compliance costs for the farming sector, including minimising veterinary checks and physical inspections on large volumes of food products moving between the UK and our partners, particularly the EU.
I know that many of these issues were touched on in the earlier amendments moved by the noble Lord, Lord Hain, so I take this opportunity to stress that we are dealing here with perishable goods, particularly fresh meat and produce. This is a particular source of concern to the British poultry business, which hopes that we will continue to have tariff-free access to the EU market to ensure quality, affordable British food. We should realise how important poultry is as an industry: more than half the meat we eat in the UK is poultry and 1 billion birds are reared for meat every year. The UK is the fourth largest producer of poultry meat in the EU and is about 60% self-sufficient.
We are very heavily dependent on trade. It is generally understood that, for trading purposes, your closest market is your best market, because obviously the cost of transport will be lower, and with this being fresh produce and, as I said, perishable, it is extremely important that we remove as many barriers as possible.
These are intended to be probing amendments, and I hope that my noble friend Lord Younger of Leckie, when he comes to sum up, will be able to put my mind at rest that it will be part of an objective in negotiating trade and continuity agreements as well as any eventual agreement with the EU to secure such an implementation period, allowing industries with just-in-time supply chains, including the farming sector, to make these business-critical changes.
I am acutely aware of the impact of this particularly on the Northern Irish border with the Republic of Ireland, so any light that my noble friend can shed on this would be extremely helpful. Equally, when I ask, in Amendment 95, to look at
“the minimisation of veterinary checks and physical inspections on large volumes of food products”,
I am aware of the shortage of veterinary scientists in this country. Has my noble friend and his department addressed this in this regard?
I therefore seek to achieve a commitment that the trade will be as frictionless and seamless as possible, as we were promised when we decided to leave the European Union. This will continue to be the case with the EEA, EFTA and the EU. With those few remarks, I beg to move Amendment 70.
My Lords, I am glad to have the opportunity, in this group, to follow my noble friend Lady McIntosh. She will forgive me if I do not speak to her two amendments but instead confine myself to Amendment 93 in my name, which relates to free zones and free ports. These are essentially the same thing; they are called free zones in the legislation that establishes the procedure for making them.
I draw noble Lords’ attention to the debate on 4 February 2019 on the previous Bill that was brought forward. I had a debate whose purpose was to propose a consultation on the future designation of free zones; of course, there were and are no free zones. The Minister at the time, my noble friend Lord Bates, replied to me on that subject then. I was asking for a consultation, and he said that he was not able to offer one but that
“The idea has been advocated”—[Official Report, 4/2/19; col. 1349.]
by himself and a number of others in the north-east, including the local MP Rishi Sunak. I see that time has moved on.
I am raising the same subject but do not need to ask for a consultation on the part of the Government, because they have now had one and are readying themselves, I hope, to respond to the product of that consultation. Back in February 2019, my noble friend said at the end:
“I am not able to be more helpful than that to my noble friend at this point, much as I may wish to be”.—[Official Report, 4/2/19; col. 1349.]
So I am looking to my noble friend on the Front Bench again today to be as helpful as he wishes to be.
The noble Lord makes a very good point and I hope that he will not take this as being unempathetic; I am just making a point that focuses particularly on Brexit and the transition period. Putting aside the obvious huge problems that businesses are facing at the moment, there has been more than enough time—four years—for businesses to prepare. We have done our best to support them during this period.
My Lords, I think my noble friend was doing quite well until that last remark. Saying “four years to prepare” when we have not even heard what the situation will be on the Northern Ireland border is not quite the approach I would have hoped for. My noble friend did not answer the question about the number of available vets. This is a source of great anxiety to many, particularly those with livestock as well as products crossing the border. I hope that my noble friend will be able to put my mind at rest on that at some point.
I agree entirely with what my noble friends Lady Noakes and Lady Neville-Rolfe said with regard to home-produced substitutions. To a certain extent, that should already be happening given that those involved in home-produced food have come into their own during Covid; other priorities are maintaining our existing markets and opening up third-country markets for trade in poultry, other meat and breeding stock.
I agree with the noble Lord, Lord Fox, who said that it is all very well to embrace change, but businesses need to know what that change is before they can do so. Certainly, all the evidence that we have heard as recently as this September, along with a letter that we have followed up with a different department, Defra, as regards the rules for the checks and controls on the borders, make it incumbent on us to get information out as best we can.
I am grateful for the opportunity to debate these issues. I have listened to what my noble friend Lord Lansley said. I just hope that we do not get to the situation that we can see in Luxembourg, which has almost more free zones than it has territory. If my memory is correct, Luxembourg has a very large number of free ports in comparison with the size of that state. However, I find it difficult to share in the enthusiasm of realising our destiny until such time as I am 100% sure of what our destiny will be. With those remarks, I beg leave to withdraw the amendment at this stage.