Draft Kimberley Process Certification Scheme (Amendment) (EU Exit) Regulations 2019

Bob Stewart Excerpts

Tuesday 5th February 2019 General Committees

[Bob Stewart (Beckenham) (Con)]

The Kimberley process certification scheme was established in 2003. Although it is a great system and I totally support the draft regulations, we must not consider it perfect. The scheme is not perfect; blood diamonds are still used by various regimes for different reasons, as the hon. Member for Glenrothes outlined.

We should obviously continue with the process, but I was not sure whether the Minister was implying that we would not be able to buy stuff until we get this—will he respond to that? We cannot get diamonds into this country if we do not get the draft regulations through—is that right?

--- Later in debate ---

[Sir Alan Duncan]

I am grateful to hon. Members for their comments and questions. Let me endeavour to answer them in turn.

I will respond first to the hon. Member for Heywood and Middleton, on the Opposition Front Bench. Among other things, if we were not a participant, others would not trade in rough diamonds with us, so we would be out of the trading system that has emerged on the back of the Kimberley process. Potentially, that could lead to a weakness in the policing of the trade in rough diamonds.

The cost would be the same as now. Likewise, the impact is unchanged, hence the absence of a need for an impact assessment. The point that I would make is that the draft regulations are simply the transposition of the EU-based regime to an autonomous UK one, so that we can participate autonomously. I suppose the parallel is with the Sanctions and Anti-Money Laundering Act 2018: we used to do all sanctions with the EU, but now we will be able to do them on our own. The regulations are one of the changes necessary to adjust to us leaving the European Union.

In response to the hon. Member for Vauxhall, 82 countries are members, which include Zimbabwe. We are confident that our existing participant status will be embraced by the 81 as we reapply on a slightly different footing.

My hon. Friend the Member for Braintree is absolutely right to emphasise again the importance of this regime in addressing some of the worst aspects of conflict and rapacious behaviour in war-torn areas. My hon. Friend the Member for Beckenham is also right that this is not a perfect regime, but it has been a successful and improving one, given what was there before, which was quite simply nothing.

The hon. Member for Glenrothes asked about influencing direction. We would remain a full participant, and would be so on our own, so inasmuch as we could influence direction in the past, we will still be able to do so in future. The draft regulations are a transposition of the regime—that is what such statutory instruments are for—which does not open up immediately any scope for adjusting, improving or amending, because that is not what the changes before us are intended to do.

[Bob Stewart]

I thank my right hon. Friend for allowing me to intervene again. May I ask whether, on 30 March—assuming that we leave on 29 March, as we will—Hatton Garden, say, will be able to import legal diamonds into the country? Is that what this is all about?

[Sir Alan Duncan]

There is a distinction between polished and rough diamonds—

[Bob Stewart]

I am sorry.

[Sir Alan Duncan]

So this is about a particular category of diamond. The draft regulations mean that if we were a participant, anything legal in the Kimberley process would include us in that process; if we do not pass them today, it would not.

Let me answer one more question put to me about the powers. The Kimberley process requires participating Governments to certify the origin of rough diamonds and to put in place effective controls to prevent conflict diamonds entering the supply chain. That is done through the Kimberley process certification scheme, of which we would be a part if the draft regulations go through. In the process, each international shipment of rough diamonds must be accompanied by a Kimberley process certificate relating to that specific shipment. In other words, the certificate is valid for one specific journey only. The certificates are issued by the exporting country’s Kimberley process authority, which has controls in place to verify that the shipments are conflict-free.

As I outlined in my opening speech, the draft regulations are crucial to our participation in the Kimberley process and, in turn, to our conflict prevention objectives and obligations. The instrument is fully consistent with the Prime Minister’s commitment to be a supportive member of the European Union until we leave, and it will ensure the UK’s continuous compliance with the scheme. It has the added advantage, Mr Evans, of making me a greater expert in rough trade than even you, sir. I commend the regulations to the Committee.

Question put and agreed to.