Economic Activity of Public Bodies (Overseas Matters) Bill (Sixth sitting)

Debate between Chris Stephens and Alex Norris
Alex Norris Portrait Alex Norris
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Similarly, I want to put on record our thanks to you, Dame Caroline, and Sir George, to the top-class Clerks for all their help, to the civil servants for their work and to my colleagues. I draw special attention to my hon. Friend the Member for Wigan (Lisa Nandy), who was shadow Secretary of State on Second Reading, for her efforts and support while we have been getting our work together, and to the Minister for her collegiate work, both inside and outside this room. I also thank her colleagues.

Chris Stephens Portrait Chris Stephens
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May I first thank you, Dame Caroline, and Sir George for chairing these sittings? I also commend all Members. There has been much debate around the Bill, and many of us have regarded it as essential that we debate it in a tone that is appropriate but also robust. I think we have done that in this Committee. I would like to thank all hon. Members for the tone they have adopted and also for their good humour. That has been essential for the Bill, which has been fairly controversial.

We will obviously reflect on the changes we want to see in the stages to come. I do think there is going to be a challenge on the Government’s side, because a number of their Members are very critical of the Bill. The fact that no amendments have been agreed will be a test for them. I again thank you, Dame Caroline, and Sir George, as well as the Clerks, for all the help we have had.

Lastly, it was unfortunate that there was no evidence from a Palestine support group in our evidence sessions. I do not believe there was a conspiracy on that. I think it was perhaps more cock-up than conspiracy, but I hope it is something we will all learn from. We should have all views heard, and we might all want to take that point away and reflect on it.

Economic Activity of Public Bodies (Overseas Matters) Bill (Fourth sitting)

Debate between Chris Stephens and Alex Norris
Alex Norris Portrait Alex Norris
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I beg to move amendment 2, in clause 3, page 2, line 40, at end insert—

“(4A) Section 1 does not apply to a decision which has been made in accordance with a Statement of Policy Relating to Human Rights.

(4B) A Statement of Policy Relating to Human Rights—

(a) is a public authority’s policy criteria relating to disinvestment in cases concerning contravention of human rights; and

(b) must be applied consistently by the public authority to all foreign countries.

(4C) Within 60 days of the passing of this Act, the Secretary of State must publish, and lay before Parliament, guidance on the form, content and application of Statements for the purposes of this section.

(4D) Public authorities must have regard to the guidance referenced in subsection (4C) when devising a Statement.”

This amendment would exempt public bodies from the prohibition in section 1, where the decision has been made in accordance with a Statement of Policy Relating to Human Rights. A Statement may not single out individual nations, but would have to be applied consistently, and in accordance with guidance published by the Secretary of State.

We heard on Second Reading, and again today, that the Government want to put disapproval of the conduct of foreign states and their territories beyond the scope of competent activity for local public bodies, in order to stop public bodies taking partial and potentially harmful stances. However, this Bill is akin to using a nuclear weapon to crack that nut. We have just heard from the Minister that the Government are so concerned about the unintended consequences the Bill may have that they are having to reserve the powers to change it quickly later, lest a public body be shut down for a number of months. The Committee just accepted that change, but it is yet another power grab by the Secretary of State and it is heavy-handed in its enforcement.

Amendment 2 sets out an alternative approach. We have been clear from the outset that it is possible to achieve what both the Government and the Opposition wish to achieve but without the overreach of the Bill in its current form. Amendment 2 would allow a public body to produce a document that sets out its policy on procurement and human rights and for that to be developed in accordance with guidance published by the Secretary of State. This is a relatively long-held Opposition policy. Indeed, it is similar to an amendment I tabled to the Procurement Bill many months ago. It is vital that procurement decisions made with regard to human rights issues be applied across the board, not just to prevent unethical actions against specific states but to ensure that common actions have the greatest impact.

Such a statement of ethical policy would thus ensure consistency in how contracting authorities—or public bodies more generally—decide on such matters, and inconsistent application would be prohibited. The practical effect would be to make it unambiguous that if a public body does not wish to procure goods from Russia because of President Putin’s abhorrent human rights abuses in Ukraine, the law will be on its side. If the same body does not wish to procure services from Xinjiang because of the appalling treatment of Uyghur Muslims, the law will be on its side.

Chris Stephens Portrait Chris Stephens
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The hon. Gentleman is making an excellent speech. In our evidence sessions, we heard very powerful testimony from Uyghur society and the Uyghur people, who said that we really need to look at this part of the Bill. Does he also agree that it is very interesting that witnesses on the Government’s side support disinvestment for China, for the very reasons that he has just outlined?

Economic Activity of Public Bodies (Overseas Matters) Bill (Second sitting)

Debate between Chris Stephens and Alex Norris
Alex Norris Portrait Alex Norris
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Q What I would say is that you would know, as a local authority councillor, that local authorities routinely take legal advice about their actions, certainly if they thought they might be an edge case in such legislation. On a fair reading—I would be delighted if I were wrong—this would permit the extraction of such information, which we would normally consider privileged, by dint of a Government information notice, and I wondered if you felt that was proportionate.

Dr Harris: It is important to note that it does not say that the enforcer can demand information that is confidential. All that happens is that the person disclosing will not be liable if they breach a right of confidence. It is not a right to extract the information, or a power of the Government; it is simply a freeing from liability of the discloser.

Dr Mendoza: I would agree with that reading. It says:

“A person providing information in compliance”,

so I think that is the correct reading of that clause.

Dr Harris: There is one, perhaps related, problem for me. Clause 4 states:

“A person who is subject to section 1 must not publish a statement”,

and that can include statements of intent or hypothetical intent. Consider, for instance, a university governing body—senate or council—making a decision about divestment. Let us say that there is a meeting, there are minutes and they are kicking ideas around. They may well benefit from a degree of those deliberations not being public.

The problem I have is that my understanding is that an FOI disclosure would constitute publication. If you look at section 79 of FOIA, it is explicitly called “publication”. This body would be in a position whereby it would say, “Well, we have to comply with FOIA, because we have to disclose, and if we do disclose, we may be breaching the law by publishing a statement whereby we say that we intend to act in a certain way.” It is a drafting point, I think, but that needs to be cleared up. We do not want over-defensiveness in these deliberations by public authorities.

Dr Mendoza: I agree. That is an interesting technicality that probably should be taken note of by the Committee.

Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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Q I have a question for you, Dr Mendoza, and then a separate question for Dr Harris. The Henry Jackson Society, the organisation that you represent, is described as being

“focused primarily on supporting global democracy in the face of threats from China and Russia”.

Does your organisation in any way support divestment in China, particularly regarding the treatment of Uyghur Muslims?

Dr Mendoza: I would say, on that point, absolutely. The position that we adopt with China is very simple. I believe that you have a witness who will be able to tell you about the experiences of her family, her relatives and, indeed, her people in what are effectively modern-day concentration camps, to the point that many among us believe that the Chinese Government are practising genocide against this particular group in Xinjiang. If we look at what is actually happening there—the eradication of their culture, the imprisonment of people for forced labour and that sort of activity—on that basis, we are essentially talking about modern-day slavery. You will be aware that the Bill will be superseded by modern slavery actions and the UK’s sanctions regime on this. Yes, we do believe that there ought to be accountability from the Chinese Government on this score, and I personally would not be buying things from Xinjiang province.