Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Neville-Rolfe Excerpts

Tuesday 7th May 2024 Lords Chamber

I support the Foreign Secretary’s efforts. I think he is right to focus on these issues and to say that we must give hope to the Palestinians, but the Bill does nothing to enhance our efforts towards a two-state solution. It absolutely has the opposite effect and that is why I supported Kit Malthouse’s amendments. What he said in the other place was right. I hope noble Lords and the Minister will agree with me.

[The Minister of State, Cabinet Office (Baroness Neville-Rolfe) (Con)]

I thank the noble Lord, Lord Collins, for his comments. I feel a bit left out as the only person who has not been to Palestine or Israel. I was due to go on 7 October. As we have discussed, this amendment would remove Section 37 from the Bill so that Ministers could by secondary legislation allow public authorities to carry out their own boycott campaigns against Israel, the Occupied Palestinian Territories and the occupied Golan Heights. I am keen to make progress on our line-by-line consideration of the Bill, but I think I should briefly repeat that this legislation has three objectives: first, to uphold the integrity of British foreign policy decided by the Cabinet collectively on advice from the FCDO and others; secondly, to enable public authorities to focus on their core functions when delivering for the public on investment and procurement and to avoid damage to community cohesion; and, thirdly, to prevent the most divisive of these campaigns by public authorities which target Israel in particular and promote anti-Semitism in the UK.

We have seen the disturbing things happening in our universities today, with Jewish students not feeling safe, and what has happened in some local authorities in recent years. Our manifesto commitment and this Bill seek to address one aspect of the current troubles, including divestment campaigns. We need to find a way through. I am grateful for the suggestion of meetings between now and Report.

This amendment introduced by the noble Lord, Lord Warner, would allow Ministers to negate by secondary legislation the key objective of our primary legislation. That would not be right. We have heard from the Jewish Leadership Council and the Board of Deputies of British Jews, mentioned by my noble friend Lord Leigh, about how the BDS campaign singles out the world’s only Jewish state for unique treatment, and we heard in the Public Bill Committee of the distress felt by the Jewish community when Israel is targeted in such a manner by public authorities that, it seems to it, in no other case attempt to pursue foreign policy. These anti-Israel BDS campaigns do very little to promote peace in the Middle East, while sowing division and distrust in the UK.

I want to take the opportunity of our discussion of international issues to return briefly to the question raised earlier by the noble Lord, Lord Purvis. He asked whether public authorities would make the judgment of whether a procurement or investment decision risked putting the UK in breach of international law. Public authorities would make that judgment. They would need to do so to the existing legal standard of reasonableness and would be subject to the enforcement powers in the Bill if they did not. I have committed to taking away and considering carefully the points made about international law today, and I look forward to returning to that issue on Report.

Let me return to my overall case. The purpose of Clause 3(7) is to give Parliament the ability to scrutinise a future ministerial decision that would reverse a core objective of this legislation. Such a decision could have a very harmful effect on community cohesion while doing very little to advance peace and security in the Middle East. The amendment would allow Ministers to use secondary legislation to negate the key objectives. That would undermine parliamentary sovereignty. Should a future Government wish to allow such campaigns by public authorities, they should go through the same legislative scrutiny that this Government are going through to prevent them. The Government have ensured in the Bill that the scope of delegated powers is appropriately limited and that the core of the Bill cannot be altered by statutory instrument. In addition to this clause, we have limited the ability of the Secretary of State to remove local authorities, UK and devolved government Ministers and local government pension schemes from the scope. I also want to highlight that we have not received any challenge from the Delegated Powers and Regulatory Reform Committee with regard to the Bill.

We should be in no doubt that preventing BDS campaigns by public authorities against Israel, the Occupied Territories and the occupied Golan Heights is a core part of the Bill. This is due to the impact that such campaigns can have in contributing to and legitimising anti-Semitism, as highlighted by the noble Baroness, Lady Noakes.

However, it is important to note that nothing in the Bill changes our foreign policy in regard to these areas. We do not recognise—I emphasise this—the settlements as part of Israel. Our position is reflected in our continued support for UN Security Council Resolution 2334. The Government’s position is that the Bill is in compliance with that resolution. My noble friend Lord Wolfson explained well why this is the case, and why Israel can, and should, be treated differently, reflecting the way that it is often singled out for unique treatment by many others.

[Lord Purvis of Tweed (LD)]

I am grateful to the Minister for giving way. She is responding very carefully to this debate. It is the Government’s position that the Occupied Palestinian Territories are a separate legal entity that the Government of Israel do not represent. Indeed, the UK has its own direct bilateral relationships with the representatives of the Occupied Palestinian Territories. Have they asked for the particular protections under this clause?

[Baroness Neville-Rolfe (Con)]

My Lords, our position on the Middle East peace process, which I am not sure entirely answers the noble Lord’s question, is that we support a negotiated settlement leading to a safe and secure Israel, living alongside a viable and sovereign Palestinian state, based on 1967 borders with agreed land swaps, Jerusalem as the shared capital of both states, and a just, fair, agreed and realistic settlement for refugees.

My noble friend Lord Ahmad updated the House earlier on Gaza. The Prime Minister has told Prime Minister Netanyahu and regional leaders that we are deeply concerned about the prospect of a military offensive in Rafah. The immediate priority must be a humanitarian pause in the fighting, which is the best route to secure the safe release of hostages and significantly step up aid to Gaza.

[Lord Purvis of Tweed (LD)]

I am grateful to the Minister for giving way. With respect, she has not answered my question. The Government do not recognise the Government of Israel to represent the Occupied Palestinian Territories in our discussions with their representatives. I ask in clear terms, since we are at the stage in this legislation where it has to be crystal clear, have the representatives of the OPTs requested the protections under the Bill in this clause?

[Baroness Neville-Rolfe (Con)]

I am clear that the Occupied Territories are separate. I think that that three-quarters answers the noble Lord’s question but let me reflect further. I certainly would not want to mislead him on such an important point.

[Lord Collins of Highbury (Lab)]

Can I also ask a question? The Minister mentioned that the Delegated Powers Committee did not comment on the Bill in a negative way. On the point about the amendment on free speech, I know that we have other clauses to deal with it, but the Constitution Committee was quite clear that Clauses 4(1)(a) and 4(1)(b) unduly limit freedom of speech by preventing public bodies from stating that they would—or even might—make a procurement or investment decision. That committee asked this House to consider whether Clause 4 should be removed from the Bill, so the Minister’s assertion is not quite true. Regarding the amendment tabled by the noble Lord, Lord Warner—the Constitution Committee shares some of his views.

[Baroness Neville-Rolfe (Con)]

Clearly, I do not think that we will be able to agree on this this evening. I replied to the excellent report by the noble Baroness, Lady Drake, and the Constitution Committee, and I will refresh my memory on that, if the noble Lord will allow.

In the meantime, in response to the noble Lord, Lord Purvis, who asked about the Government’s position on Gaza—it is that Israel remains the occupying power in Gaza, as advised by the FCDO.

[Lord Collins of Highbury (Lab)]

Yes, but does the Minister know why it says that? It is because an occupying power has duties—particularly under international humanitarian law—which is why the Foreign Secretary is monitoring this and has repeatedly said to the House that he will continue to monitor it. Israel has duties as an occupying power.

[Baroness Neville-Rolfe (Con)]

Indeed, in situations of occupation, international humanitarian law expressly requires the occupier—I think this is the point that the noble Lord is making—to the fullest extent of the means available to it, to ensure food and medical supplies for the population of the occupation territory. We expect Israel to fulfil its obligations, and for all parties to adhere to humanitarian law. I am glad to be able to repeat that.

Nothing in the Bill changes the Government’s support for a two-state solution. We believe that open and honest discussions, rather than imposing sanctions or supporting anti-Israeli boycotts, best support our efforts to help progress towards a negotiated solution. This is the position shared by the whole Government. But I continue to believe that it is important to retain for Parliament the ability to scrutinise a decision that would be so detrimental to community cohesion, through primary legislation and subject to full parliamentary scrutiny. I therefore respectfully ask that the noble Lord withdraw his amendment.

[Lord Warner (CB)]

I am glad it was “respectfully”, but I am totally unconvinced by what the Minister has said, just as, for the reasons given by the noble Lord, Lord Collins, about Clause 4, I was totally unconvinced in the previous discussion about my Amendment 48.

--- Later in debate ---

[Baroness Chapman of Darlington (Lab)]

I have the agreement that Goldsmiths made in front of me, and the noble Lord, Lord Leigh, is right. One of the six issues concerns BDS, but I suggest that he read the wording very carefully. It says that the senior management team will raise concerns with the college’s ethical investment fund manager; it is not saying that it will enact any divestment at this stage. I read the agreement very carefully, not least because I thought that it may have made a decision that undermined my case this evening. I would be very happy to meet with the noble Lord and discuss this further, because it leaves the door open, perhaps, to Goldsmiths taking the decisions that he fears it might. It does not look as if it has done so far, but even if it does not and were prevented from even discussing that, there would still be the other six elements that were driving the campaigns, the sit-ins and the activities on campus which were so problematic.

[Baroness Neville-Rolfe (Con)]

My Lords, I thank all noble Lords for their contributions and am very grateful to the noble Baroness, Lady Chapman, who has sat patiently throughout today for her contribution.

I do not think that sufficient weight has been given to the pressure on universities to engage in boycotts and divestment campaigns at this time. I am disturbed, as I am sure we all are, by the violence we have seen in the US over the past week, and the threat that that poses for the safety of students and their ability even to complete their exams. We cannot risk this in the UK and the associated intimidation of Jewish students. Sadly, we have begun to see a fresh wave of student demonstrations at our UK universities, including protest camps set up in Oxford and Cambridge, a deterioration that the noble Baroness acknowledged. These protesters have, I understand, been demanding that their universities cut financial ties with Israeli companies.

My noble friends Lord Willetts and Lord Johnson asked about examples of BDS activity in universities, and I have answered questions on this, as has been said. But another example was highlighted this evening by my noble friend Lord Leigh of Hurley, that of Goldsmith University, which has agreed to demands made by one of its student-led groups, Goldsmiths for Palestine, to review its ethical investment policy. I am glad that further discussions might take place, and I would be interested to see the document.

As my noble friend Lady Noakes said, there is a problem of anti-Semitism in universities, and we need to take this small step to head off BDS, which is a manifesto commitment, to answer the noble Baroness, Lady Blackstone. We are clear that universities should be in scope of the Bill, despite the oratory and expertise of my noble friend Lord Willetts. We have worked together on good government for many decades, and his contribution is welcome.

No noble Lord wants to inhibit the freedom of students and individual academics to express their views on the conflict in the Middle East, or, indeed, on any other difficult conflict, in a civil manner. Universities have always been the natural home for open debate, and that will continue. There is no thought control—we are talking about public authorities’ investment and procurement decisions when focused on a particular country or territory. The noble Baroness, Lady Falkner, would not herself be affected and university pensions are not in fact within scope.

However, it is the case that universities are part of public life. They have a responsibility to deliver education for their students, and in this context the Bill strikes a reasonable balance. It bans universities from carrying out their own boycott and sanction campaigns when they are exercising their public functions of investment and procurement. It does not deal with the private acts of individual academics, nor does it interfere with the private commercial activity of university bodies. However, it is a sad fact that in 2023, the Community Security Trust recorded 182 anti-Semitic incidents in the context of the higher education sector, an increase of 203%.

I pay tribute to the noble Lord, Lord Mann, particularly for his fervent advocacy regarding anti-Semitism. The Education Secretary is hosting a round table at No. 10 on 9 May with a number of vice-chancellors to discuss how we can prevent and crack down on anti-Semitism on campus.

Where student unions and pressure groups demand that universities engage in BDS campaigns, this Bill will help universities remain focused on their core public duties, rather than becoming agents for a pressure group. Indeed, the Bill will discourage these campaigners’ demands in the first place by removing the chance of success.

I hope this provides some context on why the Bill should apply to universities. It is supported by representatives of the Jewish community in the UK, including the Jewish Leadership Council.