European Union (Approvals) Bill

Debate between Bill Esterson and Ian Paisley

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[Ian Paisley (North Antrim) (DUP)]

Does the hon. Gentleman agree that this Bill serves as an interesting template for taking forward competitive activities post-Brexit? If we can get this right, it might serve to enable other members of the Commonwealth to look at how we can pattern a similar relationship.

[Bill Esterson]

That is a good point, and I will come later to further questions about arrangements after we leave the EU, so that we can continue to benefit from the sort of arrangements set out in the Bill. We certainly need to make sure arrangements are in place to address anti-competitive practices in this country and involving our interests across the world. The Minister might want to address that very good point in her concluding remarks.

[Ian Paisley]

Does the hon. Gentleman agree that the question of establishing such a pattern impacts greatly on our nearest neighbour, the Republic of Ireland? If we can get the relationship right between ourselves and Canada, it might help in getting it right with the Republic of Ireland, which will help us to bolster our trade.

[Bill Esterson]

I think we are in danger of wandering away from the subject—[Interruption.] I have no idea why Conservative Members find that funny, but there we are. Obviously, the hon. Gentleman and the Democratic Unionist party are particularly exercised by that matter, among others, but I dare say that this is something that the Minister can pick up on, perhaps on another day.

Competition delivers benefits to consumers, to businesses and to society as a whole. Competition policy therefore contributes to boosting jobs, growth and investment. The Commission pursues this objective by enforcing competition rules, sanctioning breaches and promoting a competition culture internationally. The proposed agreement will improve the administrative co-operation between the European Commission and the Canadian Competition Bureau. Ultimately, consumers in the European Union and in Canada benefit from competition policy and from the sanctions that contribute to a stronger deterrence of anti-competitive behaviour. More effective competition enforcement results in more open and competitive markets in which companies can compete more freely, enabling them to generate wealth and to create jobs. It also gives consumers a better choice of products at lower prices.

This new agreement is substantively the same as the existing one, which has been in place since June 1999. This agreement just adds new provisions on the exchange of information. Even after we have left the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in anti-trust and merger investigations, as all non-EU countries are. Information on UK companies will still be transferable after Brexit. After Brexit, the European Commission will still share information about UK companies with Canada but will not be bound to share the information about the UK it receives from Canada with the UK. I would like the Minister to address that point.

This agreement relates to administrative co-operation between the European Commission and the Canadian Competition Bureau, so public consultation and an impact assessment were not considered necessary by the Government, and, as the Minister has now said on a number of occasions, she does not think that there will be financial implications. The Government have noted in the explanatory memorandum that this new agreement will have no impact on UK law and no financial implications.

The European Scrutiny Committee did not at first clear the proposal. The Chair of the Committee, the hon. Member for Stone (Sir William Cash), who I dare say will make a contribution to the debate, requested further information about whether and in what way the United Kingdom could participate in the agreement following withdrawal. The Minister responded to the Committee on 24 October, stating that

“the Government will ensure that the UK is in the strongest possible position to cooperate on competition matters with our international partners...There are a number of options for securing the means for international cooperation…As the form of any cooperation agreement will depend on our negotiation with the EU and negotiations with other countries such as Canada it is too early to say what exact form international cooperation will take.”

That raises a number of questions about transitional arrangements in the longer term. In response to that letter, the Committee subsequently cleared the documents.

That brings us to the question of what arrangements will exist after we leave the EU. The Minister referred in her letter to seeking to extend the current arrangements. For how long does she think that will be necessary? What guarantee is there that it would be possible to extend them? UK companies operating in the EU will still be covered by this agreement. The difference will be that, while the European Commission will continue to share information with Canada about UK companies, that information will not be shared with the UK unless a further agreement is reached. She said in her letter that any co-operation agreement would depend on negotiation. How long does she think those negotiations are likely to take? What will she be seeking to achieve in them? We have now reached the point at which Ministers need to start answering the questions about transitional and longer-term arrangements for these and many other matters.

There is no doubt that competition is vital to our economy, to the success of our businesses and to the prosperity of the people of our country. Encouraging healthy competition is vital. The role of national Governments, and of international co-operation, is to create a fair market, not just a free market. It is also to avoid anti-competitive practices, including the creation of cartels through mergers and acquisitions which distort the market; the undercutting and exploitation of workers and smaller businesses; the use of zero-hours contracts where workers have little choice; the treatment of smaller businesses by banks that will only fund those with liquid assets; and the delays in the payment of invoices by larger firms. Those are all examples of anti-competitive and exploitative practices in which Governments—nationally and internationally—should find ways of intervening to set a level playing field. Governments should be a partner to business and to the workforce. They should encourage those wishing to start and grow a business. They should be investing, and they should have the right strategy for infrastructure and skills. They should have an industrial strategy. Underpinning all that should be the right approach to competition, which is what this part of the Bill is all about.

We need answers to the questions about what happens after we leave the EU and about what transitional arrangements will be in place. The nature of the Minister’s comments in her letter to the European Scrutiny Committee show just how complex these questions are, and it is time we started to get some answers.

--- Later in debate ---

[Ian Paisley]

I am quite happy that the hon. Gentleman has clarified his comments, but given what has happened in the past week in this House—the passing of the Queen’s Speech and the amendment that was not moved—I think reference has already been made to that. It should be absolutely clear that, in my view and in the view of my party, the unborn is—even in the words of Hillary Clinton—a “human being”. According to science, it feels pain, it knows emotions and it is faithfully and wonderfully made. My party will take a stand on that issue irrespective of the political agreements that are reached. I say that as a warning to others who may seek to raise the issue in the House in the weeks, months and, hopefully, years ahead.

Turning to the issue of competition, which is mentioned in this Bill, and the competitive rights, which have been identified, I welcome what has been put on page 6 of the Labour party manifesto, because it emphasises the importance of what we are discussing today. It says that the Labour party will make sure that we leave the European Union. I welcome that because, when we leave the European Union, we do not half leave it or partly leave it; we get out. It is essential that we get out of the customs union and the single market. We cannot address the competition matters identified in this Bill with Canada, for example, if we do not get out of the customs union. It is absolutely crucial that we leave the customs union. We cannot make free trade agreements with any other country unless we are free to do so, so the quest for freedom is incredibly important. That was driven home to me recently in a piece of correspondence that I received from a large steel processor here in the United Kingdom.

[Bill Esterson]

The hon. Gentleman is raising some really important points relating to the competition element of this Bill. He touched on an earlier intervention. Will he say a little bit about how he sees the relationship between the north and south of Ireland working?

[Ian Paisley]

Certainly. I will comment on it after I have made my point about the steel industry. I received a note from the managing director of John Reid and Sons. It is a massive company that has been in existence for 98 years. It said:

“to remain in the customs union would mean that we cannot do our own trade deals with the rest of the world. We have exported to over 140 countries throughout our 98 years in business; we have an idea of what we are talking about…The customs union is a terrible tragedy for Third World agriculture and fisheries, and prevents proper trade.”

That was written by someone who is at the coalface every day and knows what they are talking about. It is important that that point is reflected in this debate.

The hon. Member for Sefton Central (Bill Esterson) has asked me to comment on some of the points that were made about how this matter impacts on the Republic of Ireland. While you would show me great leniency, Mr Deputy Speaker, if I were to speak at length today on the Republic of Ireland and on what a future trade deal would look like, I think that, even though you like me considerably, you would probably rule me out of order. I will try to touch on the point. I recommend to all Members of the House that they go to the Library and get a copy of the Policy Exchange document that was published earlier this month. It was written by Ray Bassett, a former ambassador from the Republic of Ireland to the United Nations. The title is: “After Brexit: will Ireland be next to Exit?” It is a very important policy paper that sets out compelling reasons why the Republic of Ireland must follow the United Kingdom out of the EU. If it fails to do that, its trade will be ruined. We have something in common with Canada on that point. For example, Canada has great fishing waters, and it protects those fishing waters for its fishing fleet and fishing companies. In the past 48 to 72 hours, the fishing rights of the United Kingdom have been discussed at some length in the media.

Of course, the Republic of Ireland’s fishing waters are currently underfished, because the Republic of Ireland is able to encourage the rest of the EU to fish in our waters. Once we claim back our fishing waters, Mr Deputy Speaker, do you know what will happen? The rest of the EU will want to fish in Ireland’s fishing waters, putting great pressure on the Republic of Ireland and stealing its catch. It is for such reasons that it is essential that we understand the commercial reasons why it is important for Ireland to exit the EU. I think that I have probably pushed you just enough, Mr Deputy Speaker, with my comments on the Republic of Ireland. I wish that the shadow Front-Bench spokesman would encourage me again, perhaps by asking me another question on the issue, as I would certainly push the matter even further—then we might not get the red flag.

We must make it absolutely clear, as I said earlier, that agreements such as that which we are discussing today impact tangentially on the pattern of how we should do commerce in the future. The Canadian agreements and aspects are very important, because if that is how Canada will be treated by the EU after we leave, we need to take cognisance of what is in the Bill regarding the relationship that we will have with Canada.

In response to the points made by the hon. Member for Henley (John Howell), let me say that when the UK leaves and Albania and Serbia join—well, I almost feel like saying, “Good luck with that. It will be some club to be a part of,” but I think that would be unfair—those will, ultimately, be matters for what is left of the EU. By the time the accession rights are achieved, the EU will be a very different club from what it is now. When the UK leaves and, as I have predicted, Ireland leaves, although Serbia and Albania wish to join, the EU countries might at that point consider what is in their greater interests. The charges for membership of the EU will be immense. For example, since 2014 the Republic of Ireland has had to pay more than £1 billion to be a member of the EU. It previously paid nothing. If that is what Ireland will have to fork out, what will countries such as Serbia and Albania have to fork out under the new arrangements?

I leave those points for the House to consider and hope that the Minister can reflect on them when she sums up.