United Kingdom Internal Market Bill

Bill Esterson Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Monday 14th September 2020 Commons Chamber

[Ian Blackford]

The hon. Lady is correct about that, because we know that the Government have got into trouble with the judiciary over their actions in the past, and I will come on to talk about that.

The right hon. Member for Doncaster North (Edward Miliband), who spoke for the Opposition, was correct when he said that the Prime Minister cannot pretend that he did not know the terms of the treaty or its obligations when he signed it—that simply beggars belief. This is a test for the House this evening; do not wait for the Committee stage, as legally, morally and ethically the right thing to do is to vote down this Bill tonight. This House must be accountable. Do not follow the Prime Minister in acquiescing in breaking the law—if you vote to give the Bill its Second Reading tonight, that is exactly what you are all doing. So this is a test, and I understand the challenge the Conservative Members face. Do not support the Prime Minister by breaking the law this evening—it is as simple as that.

Of course, the Prime Minister has form: a year ago he went to the Queen to prorogue Parliament, an illegal act that the courts forced him to reverse. Here he is again—although in this case he is not, because he has run off—woefully breaking international law this time, seeking to ask the Queen to enact legislation that breaks international law. We have the power individually and collectively to stop the Prime Minister in this act of madness this evening. This is a matter of principle; it is about this House saying that we should not breach our legal obligations—I implore the House to say exactly that.

We were expecting the Secretary of State for Business, Energy and Industrial Strategy to have drawn the short straw in having to come here to argue for this dreadful piece of legislation, but he was stood down. We all know who the parcel of rogues are behind this legislation; this Bill has the fingerprints of the Prime Minister, the Minister for the Cabinet Office and, of course, Dominic Cummings. We have just heard the bluff and bluster of the Prime Minister in seeking to defend the indefensible. He can try all he likes to dress this up as a business Bill, but no amount of dressing up will hide the fact that this is a naked power grab. The Tories are fooling no one, least of all businesses in Scotland. If this UK Government were actually serious about delivering an ounce of business confidence, they would not be threatening to blow apart any hope of a future trade deal with the European Union.

[Bill Esterson (Sefton Central) (Lab)]

We can see from the right hon. Gentleman’s speech so far that he clearly shares many of the concerns of the Labour Front-Bench team. On that basis, will he confirm that he will be supporting the reasoned amendment standing in the name of the Leader of the Opposition?

[Ian Blackford]

I am grateful for the question. We will be voting against this Bill this evening but we will not be supporting the reasoned amendment, because of some of the other conditions attached to it, not least that there should be a single market Act that does not enshrine the rights of the devolved nations to be able to protect their own interests—that is the fundamental difference we have this evening. I ask the House to oppose the Bill and vote it down on Second Reading.

The provisions of this legislation recklessly and deliberately risk a bad deal or, increasingly, the economic devastation of a no deal. You cannot claim to support business while pursuing a bad Brexit. You cannot claim to support business by burdening it with yet more economic uncertainty, in the face of a global pandemic, one where we know the challenges we face. Yet, in the midst of this, the Prime Minister brings this Bill. The Government cannot claim to support the Scottish economy by taking more economic powers away from Scotland’s democratically elected Parliament.

I will turn now to some of the contents of the Bill, and specifically the numerous aspects that will undermine the powers and authority of Scotland’s Parliament. Clauses 2 to 9 contain sweeping powers that could act to compel Scotland to accept lower standards set elsewhere in the UK. That means standards on animal welfare, food safety and environmental protection to name but a few. We all know the risk and the threat that that will bring, especially for Scotland’s farmers and consumers. This law is a Tory invitation for chlorinated chicken and hormone-injected beef in our supermarkets. [Interruption.] We can hear the guffawing from the Conservative Benches, but yesterday morning on “Politics Scotland” a Treasury Minister more or less admitted that they could not stop chlorinated chicken coming into the United Kingdom. [Interruption.] Go and check the tapes; it is there.

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[Bill Esterson (Sefton Central) (Lab)]

The Labour party stands for the rule of law. We stand for the international rules-based system. We stand for peace in Northern Ireland and the settlement that has lasted for 22 years, and we stand for keeping promises to the British people, which then go on to be enshrined in British law. That prompts the question: what do Conservative MPs stand for anymore if they are prepared to break promises on all three of those areas? Why is what they are promising different now from what they promised in a general election—an oven-ready deal, a deal that was the easiest in human history? What changed? What went so wrong? Why are they shouting for more time and saying that they did not have enough time then when they were telling us then that that was all the time they needed and that they did not need to spend any longer scrutinising the legislation, which suddenly they find to have flaws?

There is a serious lack of trust and credibility, as we can see around the world and across these islands, as a result of the behaviour of this Government, supported by far too many of their Back Benchers so far this evening. We heard a Cabinet Minister say at the Dispatch Box last week, in a breathtaking, brazen way, that it was okay to break international law in a “specific and limited way”. It is breaking the law, whether it is in a specific and limited way or not, and that is the reality.

The withdrawal agreement, of which the Northern Ireland protocol is part, is part of the answer to guaranteeing the peace that has been so sacrosanct for the last 22 years. The Government are in denial. They are pretending that it is the opposite. They are pretending that what they said last year was the way of defending the peace is no longer true, and it simply does not stack up.

What of state aid? Today we hear of a deal being done with Japan—that is good news—but with a completely different state aid regime from the one that the Government say they want with the EU. They cannot operate two different state aid regimes. It will not work. When is the penny going to drop for them?

As for standards, the Bill undermines farmers. It undermines our animal welfare standards. It undermines the devolution settlement and it lacks the scrutiny, just as the Trade Bill did before and continues to do—so, too, with this Bill. Ministers will be able to act as they want. This is a bunch of incompetents and chancers at their worst, and they need to think again.

United Kingdom Internal Market Bill

Bill Esterson Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Jerome Mayhew (Broadland) (Con)]

Clause 46 has been the subject of much heated debate in this Chamber, yet when I read it, it seems innocuous enough. It provides power for a Minister of the Crown to provide financial assistance to promote lots of good things—economic development, infrastructure, cultural activities and sport—yet this has caused such seeming offence to the nationalists in Scotland that they have tabled amendment 18 to do away with the power in its entirety.

The SNP talks of a power grab, and yet it is an incontrovertible fact that not a single power held in Edinburgh, Cardiff or Belfast is being removed. In fact, the opposite is taking place—more than 70 powers currently held in Brussels are being devolved, which the SNP would like to give back to the EU. It is true that not every power currently held in Brussels is passing to the devolved Administrations. The reason is that the Government are properly applying the constitutional devolution settlement between the four nations, and quite right too.

I have heard the Scottish nationalists assert that clause 46 goes against the principles of devolution, but the opposite is true. Devolution in Scotland was devised by the late right hon. Member for Glasgow Anniesland. As the father of devolution, Donald Dewar set out his vision in the 1997 White Paper “Scotland’s Parliament”, which said:

“Westminster will continue to be responsible for those areas of policy best run on a United Kingdom basis.”

It goes on:

“By preserving the integrity of the United Kingdom, the Union secures for its people participation in an economic unit, which benefits business, provides access to wider markets and investment and increases prosperity to all.”

That is the vision that Scots backed in 1997, and it is exactly the approach that the Government are following in clause 46.

To be clear, this is not money repatriated from the EU, nor is it money taken from the devolved Assemblies. This is money granted by the Parliament of the United Kingdom to be spent across the United Kingdom. This is money that is needed throughout our country. The response to covid-19 is the most recent example of why we all benefit from this power residing at UK level and as the devolution settlements require.

To cushion the profound economic shock of the virus, the UK Government put in place a truly monumental system of business and employment support, in addition to their spending allocations to the four nations. In Scotland alone, nearly 800,000 jobs—almost a third of the entire workforce—were protected by the furlough scheme and the self-employment income support schemes. In addition, a minimum £12.7 billion has been provided, including £6.5 billion to Scotland, on top of the spring Budget—a 25% increase on pre-virus spending levels.

How do we have access to that money? It does not come from our financial reserves as a nation. Sadly, it comes from the UK Government’s ability to raise debt at very low interest rates because the markets have faith in the financial strength of this United Kingdom. It is the strength created by a unity of 68 million people with the financial firepower of the City of London and Charlotte Square combined. To pretend otherwise would be to perpetrate a fraud on the people of Scotland, Wales and Northern Ireland.

There are arguments for independence, but to remove the powers of the UK Government to provide ongoing financial assistance to every part of the United Kingdom would be a huge disservice to the people of Scotland. And for what reason? To promote a nationalist agenda, even at the cost of support for the people of Scotland.

[Bill Esterson (Sefton Central) (Lab)]

The Chancellor of the Duchy of Lancaster described the breaching of international law as a “safety net”. That breaching of international law is set out clearly as being such in article 5 of the withdrawal agreement that this Government signed up to, put to the British people and passed in legislation. There is no shadow of a doubt that even bringing this legislation to the House means breaching international law, with all the consequences that flow from that.

To call this a safety net is entirely wrong. It is anything but that. There is nothing safe in the breach of international law whatsoever, as the Minister well knows. The breach of international law invites retaliation under the terms of the World Trade Organisation. It invites us being regarded as a pariah. It invites others to say that we are in no position to criticise those who routinely break international law. It undermines this country’s fine reputation, as set out by Margaret Thatcher—revered by all Conservative Members—who said that Britain is nothing if not a country that sets an example to other countries. It undermines the promised negotiations for deals around the world, including the fundamental negotiation right now with the European Union. We were promised by this Government—by their Prime Minister—that 80% of our trade would be covered by international trade agreements after Brexit had been concluded. What is the figure now? It is 8%—that is all they have managed, not the 80% they promised. The safety net has a great big hole in it; it is nothing of the kind. What of the Prime Minister, who described it as a safety net as well—as a means of preventing this fanciful blockade of Great Britain to Northern Ireland trade? If that were true, why is there nothing in the Bill that deals with this alleged shortcoming?

No safety net is needed, either, because the dispute resolution mechanisms set out in the withdrawal agreement and in the Northern Ireland protocol provide everything that we could possibly need. If those protections are followed step by step, we stay within international law, so why are the Government so keen to go beyond that? The right hon. and learned Member for Torridge and West Devon (Mr Cox) set out what is already provided—I remember; I was here—when he stood at the Dispatch Box and described the process as providing a clear and lawful set of responses, and he was right to do so.

We should not be going down this road. The agreement was signed, it was promised to the British people, and the Prime Minister told us that it was in perfect conformity with the Northern Ireland protocol. This Bill is not needed in its current form. The Government should take out the illegal actions that they are proposing and they should be honest with the British people.

[James Sunderland (Bracknell) (Con)]

The first duty of any Government is to protect their people from existential threats: it is called defence of the realm. Given that this overrides all other considerations, we need to see this Bill against the backdrop of our negotiations with the EU. It is not only a necessary piece of legislation in its own right but provides an insurance policy against the EU seeking to divide the Union or subjugate our right to exist as a sovereign trading nation.

The central premise of the Bill is to provide clarity over the internal market, to shed regulation, and to apportion powers to the home nations. This is about not just life after Brussels but supporting countless jobs and livelihoods across our whole country. Given that seamless trade between the devolved nations is proven and sacrosanct, there is no question but that we are better off together within the Union and that those who seek to divide us are not working in our nation’s best interests.

I subscribe to the Government’s insistence that the new powers in the Bill seek to protect peace in Northern Ireland, the integrity of the Good Friday agreement, the viability of the internal market, and the importance of the Union. I am also clear that there must not be a hard border between Northern Ireland and the Republic, and that pragmatic measures are needed to reinforce the sanctity of what has been achieved by politicians on all sides. To be frank, the EU does not have a trump card in this regard, and it is for the UK alone to decide what is best for the UK.

New clauses 4 and 5 are pragmatic; clarifying the role and scope of the Competition and Markets Authority within the wider protocols is necessary. Given that, for example, Northern Ireland exports 1.6 times more to the UK than to the EU and imports 2.5 times more from the UK than from the EU, we must maintain Northern Ireland’s integral place in the UK internal market and within its customs territory in the same way that we need to maintain a similar level of integrity for England, Scotland and Wales.

On new clauses 1, 2 and 3, the Bill already contains the safeguards that are needed to uphold the independence of the courts, uphold the rule of law and implement the withdrawal agreement—which, of course, the UK will do. I do not believe it is necessary to impose the environmental safeguards required by new clause 6 for the simple reason that the UK is already at the cutting edge of the green agenda, and that financial assistance to any part of our Union should not be dependent on a climate and nature emergency statement. That will prohibit, rather than enable.

--- Later in debate ---

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

The right hon. Gentleman spoke, as always, with great energy and passion. I sometimes regret that his successor as leader of the Labour party, the right hon. Member for Islington North (Jeremy Corbyn), did not show half as much energy and passion in making the case during the referendum; if he had, we would not need to be debating this Bill at all, but there it is.

The reality is that we must make sure that, as we leave the transition period, we have a working internal market, and I therefore support the Bill in principle. I am delighted to see the Business Secretary. I hope he takes on board a point that I know his junior Minister, my hon. Friend the Member for Sutton and Cheam (Paul Scully) has noted: as we build a working internal market, I hope we can find ways in which to expand it to other close parts of the British family that are aligned with and have great synergy with us. For example, the Crown dependencies—the Isle of Man and the Channel Islands—which are linked closely already to financial services and many other parts of our economy.

In particular—I declare an interest as chair of the all-party parliamentary group on Gibraltar—we should make sure that the overseas territory of Gibraltar has clear, free and unfettered access to the UK internal market. They stood with Britain, despite the fact that, like me, they did not want to be in this situation. We owe it to them to make sure that they are not allowed to become collateral damage, economically or in other respects, as a result of the decision that we took. I hope the Business Secretary is actively engaged with the Government of Gibraltar to find ways in which we can make sure that they are able to participate fully in that market and benefit from it.

It is well enough known that the provisions relating to Northern Ireland cause me and many others great concern in their original form. I am grateful for the approach that the Government have adopted, and for the clarifications of their approach and on the changes that they have been willing to make. I will not pretend that we have solved every problem there. I will not rerun the discussion we had on Report, but I gently say this: sovereignty power and reserved powers are generally best used sparingly, lightly and with great deliberation. I hope that, having taken certain powers, we will make sure through our negotiations: first, that we never have need to use them, because the damage would be real were we to do so; and, secondly, that we exercise them with restraint. Like it or not, and whether necessary or not, even accepting the Secretary of State’s proposition that we need a “break glass in emergency” provision, we do have to reflect that this legislation has, for whatever reason, created concern among many of our closest allies and neighbours—people with whom we need to engage.

I want to be in a position where we can, for example, advance the excellent Judge Joanna Korner’s candidature for the International Criminal Court with a clear hand, and say that we are genuinely committed to the rule of international law. I want us genuinely to be able to say in the Parliamentary Assembly of the Council of Europe and other places that we remain committed to the rule of law internationally.

[Bill Esterson]

Will the hon. Gentleman give way?

[Sir Robert Neill]

I normally try to give way, but time is short; I hope that the hon. Gentleman will forgive me.

I hope that we will be able to say, as a number of hon. Friends of mine have been able to do in the Council of Europe, that we are—despite, for example, the difference over prisoner voting rights—committed to the rule of law. We must make sure that we do not allow anything to undermine that, because reputations take time to build. Ours is an excellent one in international legal circles, and we do not want that to be lost.

The Secretary of State made a fair point about the desire for business continuity and for the UK to remain a beacon for inward investment. As well as benign tax and regulatory regimes, the other—perhaps the most important—reason that people invest here is the fact that we are regarded as a safe jurisdiction in legal terms and a safe polity in which to invest, because we do not behave in an arbitrary manner. I therefore hope that we will be very clear that we will stick rigidly to the clarifications and caveats that we gave in relation to the use of any emergency powers, and that such powers will be used carefully, proportionately and without ousting the other obligations that we entered into through the withdrawal agreement and the protocol.

Let me turn to the other matter relating to business continuity. It is important that we rebuild and strengthen our international links for the practical reason that was mentioned by an Opposition Member on Report, and that is the need to go forward. Once we have left the provisions of the EU arrangements at the end of the transition period, businesses will need and want to have a ready, efficient and swift means of enforcing contracts and judgments upon contracts across the EU and with our neighbours. To do that, at the very least we have to join, as a matter of urgency, the Lugano convention. To achieve membership of the Lugano convention, we must have the consent of the European Union members of that convention. At the moment, the Commission is recommending withholding that consent. The European Free Trade Association members have consented.

It would be profoundly dangerous and damaging for British business were we not able to access Lugano, because of all the difficulties for any international contract that I have pointed out. It would be a huge disadvantage and would affect individuals: the woman seeking to get maintenance payments from the absent father, who is now in an EU country; or the person seeking to pursue a personal injury claim, where the driver of the vehicle that went into them is in a different jurisdiction. Rebuilding the bridges to ensure that we can get back into Lugano may sound prosaic, but it is actually profoundly important for the good operation of our legal system once we have left. Sometimes a little less of the poetry—and a bit more of the prosaic—is required in government. I hope that we can now move forward into that stage.

United Kingdom Internal Market Bill

Bill Esterson Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Monday 7th December 2020 Commons Chamber

[Gary Sambrook (Birmingham, Northfield) (Con)]

I rise tonight to support the Government in their approach to handling the United Kingdom Internal Market Bill, which is incredibly important for this United Kingdom. I shall also speak in favour of disagreeing with the Lords amendments.

There are a couple of reasons behind that for me. The first is the issue of high standards. In this place, we constantly hear lots of myths about what we will be doing with our high standards post Brexit as if the European Union was, of course, some sort of beacon for food and animal welfare standards. We see a live issue with fur in the EU. Back in 2002 we outlawed the production of fur across the United Kingdom, but because of single market restrictions we cannot ban the import of fur across the country. The same applies to things such as live animal exports or the sale of whalemeat. When we leave the single market at the end of the transition period and have our own single market across the United Kingdom, we will be able to ban those things, increasing animal welfare protection to a much higher level than in the EU. We need only look at the last couple of months in Denmark, where we saw millions of mink being culled because of intensive farming that has meant that they have been infected with coronavirus. Such standards, which we would not accept in our own country, are things that we will be able to outlaw after the end of the transition period.

Where the single market has held back the United Kingdom’s high standards, the UK will be able to become a world leader when the transition period is over. Earlier, my right hon. Friend the Member for North Somerset (Dr Fox) said that for him the reason Brexit was so important was the constitutional settlement. For me, it is about clauses 48 and 49, which will enable this country to fulfil our manifesto commitment about levelling up. I look at communities across my constituency—I have mentioned MG Rover several times in this place, including on Second Reading—and the opportunities that have been lost there for many years. We can spend this money in the United Kingdom to offer jobs, opportunities, skills and training in communities that have felt left behind for far too long. When we look at places such as GKN Aerospace in my constituency, which unfortunately is closing, we need to look at ways in which we can upskill and retrain people who have worked for 20 or 30 years in the same factory unit, giving them the opportunity to move on and work in new jobs and new industries.

My hon. Friend the Member for Stone (Sir William Cash) set out earlier why it is important that we have this safety net, because the EU has acted in bad faith over the last days, weeks and months. It is important that this Union, through its internal market, continues to provide the economic and social benefits that it does. Seeing the democracy dodging from some of the separatists on the other side of the House, for whom 2,000 people in an opinion poll are more important than 3.6 million people in the 2014 independence referendum and millions of people across this country who voted for our manifesto last year are less important than a couple of hundred unelected peers down the corridor, I think it is very important that we get this Bill through.

[Bill Esterson (Sefton Central) (Lab)]

What are we being asked to do by the Government this evening? We are being asked to break international law, albeit in a “limited and specific” way. It is still breaking international law. It tears up a deal that was negotiated by this Prime Minister, put to the people of this country by this Prime Minister and voted on by every single Member of the governing party earlier this year. It is not just about breaking international law; it is a breach of trust with the same partners with whom we are now 24 days away from ending a transition period and with whom we desperately need to conclude a deal. Did not those Government Members who are sitting laughing at the prospect of no deal and its effect on the jobs and prosperity of their constituents anticipate the European Union’s reaction to the Government’s proposal to breach international law? Did they not know that one of the key elements of negotiation is to understand what the negotiating partner will ask for? Is it any surprise that they have asked for level playing field protections, given the breach of faith and the breaking of international law?

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making an excellent speech. Does he agree that many people around the country will find it absolutely staggering that the Government can make an agreement one year and go back on it the next?

[Bill Esterson]

That is exactly right, and it was the right hon. and learned Member for Torridge and West Devon (Mr Cox) who pointed out to Government Members that they all voted for the withdrawal agreement that they now want to abandon. Most people believed the Prime Minister’s guarantee—that he had an oven-ready deal for them—when they voted for him in last year’s general election. This is not about ignorance or dishonesty, as the right hon. Member for Braintree (James Cleverly) would have us believe; it is about the shameful abandonment of the trust of the people of this country. If no deal is the consequence, people will remember the promise made by Conservative Members when they were elected last year on the back of the Prime Minister’s promise.

They must move on from this. They have 24 days left and the clock is ticking. No deal will be disastrous. It will be disastrous for those workers in the car industry, whom the hon. Member for Birmingham, Northfield (Gary Sambrook) mentioned. It will be disastrous for livelihoods and for national security as well. It will be disastrous for security in Northern Ireland if the Good Friday agreement is upended, and it will be disastrous for the prospects of future trade agreements. In the United States, President-elect Biden has already made clear what it would mean to him if the Good Friday agreement is threatened by this Bill.

As for our reputation and authority on the world stage, prior to this debate we had an urgent question on Hong Kong. My hon. Friend the Member for Enfield, Southgate (Bambos Charalambous) mentioned those countries mentioned by Lord Howard. We will be in no position to lecture anyone on the world stage if we go ahead and break international law. Our credibility will be shot. How will investors be able to trust that their investment will be safe in this country if we are prepared to tear these things up so readily? Who will trust our word? Who will believe anything we say? Who overseas will believe in this country?

Our people deserve better than this. For the sake of the jobs and livelihoods of the people I represent and the people that those on the Government Benches represent, I say to the Government: do not allow no deal to happen. If they fail, the British people will remember who was responsible and they will blame the Prime Minister. They will hold him responsible and they will hold Conservative Members responsible, too.