United Kingdom Internal Market Bill Debate
Full Debate: Read Full DebateDrew Hendry
Main Page: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)Department Debates - View all Drew Hendry's debates with the Ministry of Housing, Communities and Local Government
(4 years, 2 months ago)
Commons ChamberWith this it will be convenient to discuss the following:
Government amendment 90.
Amendment 89, in clause 2, page 2, line 8, leave out from “requirements)” to end of line 10 and insert
“must meet the relevant requirements of the part of the United Kingdom with the highest level of standards for that sale of that good.”
This amendment would ensure that any good produced, or imported, into the United Kingdom would have to meet the level of standards for sale of that good in the part of the UK with the highest level standards.
Government amendment 91.
Clause 2 stand part.
Amendment 34, in clause 3, page 3, line 24, leave out “consult” and insert “gain the agreement of”.
Clause 3 stand part.
Amendment 73, in clause 4, page 3, line 35, leave out “not”.
The intention of this amendment, linked to Amendment 74, is to ensure that mutual recognition applies to existing legislation as well as future legislation.
Amendment 74, page 3, line 36, leave out from “principle” to end of line 10 on page 4.
The intention of this amendment, linked to Amendment 73, is to ensure that mutual recognition applies to existing legislation as well as future legislation.
Clauses 4 and 5 stand part.
Amendment 35, in clause 6, page 5, line 22, leave out “consult” and insert “gain the agreement of”.
Clauses 6 and 7 stand part.
Amendment 86, in clause 8, page 6, line 40, at end insert—
“(c) the promotion of environmental, social and labour standards.”
This amendment would expand the definition of “legitimate aim” that could permit discrimination against incoming goods to include the promotion of environmental, social and labour standards.
Amendment 36, page 6, line 41, after “State” insert
“, after obtaining the agreement of the devolved administrations,”.
Clause 8 stand part.
Amendment 76, in clause 9, page 7, line 4, leave out “not”.
The intention of this amendment, linked to Amendment 77, is to ensure that the non-discrimination principle applies to existing legislation as well as future legislation.
Amendment 77, page 7, line 8, leave out subsections (2) and (3).
The intention of this amendment, linked to Amendment 76, is to ensure that the non-discrimination principle applies to existing legislation as well as future legislation.
Clause 9 stand part.
Amendment 78, in clause 10, page 7, line 17, at end, insert—
“(2A) In making these regulations, the Secretary of State must have special regard to the need to maintain the integral place of Northern Ireland in the United Kingdom internal market.
The intention of this amendment is to ensure that further exclusions from the application of the access principles have regard to safeguarding unfettered access of NI businesses to the UK Internal Market.
Clause 10 stand part.
Government amendments 5 and 6.
Amendment 79, in schedule 1, page 44, line 40, at end, insert—
“(6A) In the case that there is one REACH authorisation process for Great Britain, an authorisation that is lawful for the Northern Ireland market will be valid for the Great Britain market.”
The intention of this amendment is to apply the non-discrimination principle to the REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regime.
Government amendment 7.
Amendment 80, page 45, line 2, at end insert—
“(8A) The United Kingdom market access principles do not apply to fisheries within the jurisdiction of Scottish Government Ministers.”
This amendment would exempt fisheries in Scotland from market access principles.
Amendment 87, page 45, line 23, at end insert—
“11 The United Kingdom market access principles do not apply to (and sections 2(3) and 5(3) do not affect the operation of) any legislation so far as it relates to public procurement.”
This amendment would include specific reference to public procurement within those areas of regulation that are exempt from market access principles under Schedule 1.
Schedule 1 stand part.
Clauses 12 and 13 stand part.
Government amendments 93 to 95.
Amendment 40, in clause 14, page 9, line 26, at end insert—
“(8A) A reference in this Part to “regulations” must take into account the requirements of section (Maintenance of minimum standards).”
Government amendment 92.
Clause 14 stand part.
Government amendments 97 to 107.
Clause 15 stand part.
Government amendment 108.
Clause 16 stand part.
Government amendments 112 and 111.
Schedule 2 stand part.
Clauses 17 to 20 stand part.
Government amendments 109 and 110.
Clause 21 stand part.
Amendment 81, in clause 22, page 13, line 33, after “23)” insert “or frontier worker”.
This amendment would accord to frontier workers the rights accorded to qualifying UK residents under this clause, to have experience or qualifications awarded in one part of the UK to be recognised in another part.
Amendment 82, page 13, line 34, after “resident” insert “or frontier worker”.
This amendment is linked to Amendment 81.
Amendment 83, page 13, line 39, at end insert—
“(3A) For the purposes of this Part, “Frontier worker” shall have the meaning given in Article 9(b) of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community.”
This amendment is linked to Amendment 81.
Clauses 22 and 23 stand part.
Amendment 84, in clause 24, page 15, line 2, after “resident” insert “or frontier worker”.
This amendment would accord the same rights to frontier workers as to qualifying UK residents under this clause.
Amendment 85, page 15, line 9, leave out “, the resident” and insert “or frontier worker, the resident or frontier worker”.
This amendment is linked to Amendment 84.
Clauses 24 to 26 stand part.
Government amendment 96.
Amendment 27, in clause 27, page 19, line 42, after “training” insert
“that has been agreed and approved by the devolved ministers”.
Clause 27 stand part.
Government new clause 12—Guidance relating to Part 1.
New clause 5—Maintenance of minimum standards—
“Regulations under this Part must not result in lower food or environmental standards applying in any part of the United Kingdom than apply in the European Union.”
New clause 10—Environmental derogation for market access principles—
“The United Kingdom market access principles do not apply to (and sections 2(3) and 5(3) do not affect the operation of) any legislation or other requirement so far as—
(a) its purpose is to protect the environment, and
(b) it is a proportionate means of achieving a legitimate aim.”
The purpose of this new clause is to provide for exceptions and derogations that allow all four UK nations to put in place proportionate measures to protect the environment and improve environmental standards.
Amendment 72, in clause 48, page 38, line 49, at end insert “or
(b) has the effect of making Northern Ireland businesses less competitive in the Great Britain market.”
The intention of this amendment is to include within the definition of distortive or harmful subsidies a subsidy which has the effect of making NI businesses less competitive in the GB market.
Clause 48 stand part.
Amendment 88, in clause 49, page 39, line 2, leave out subsection (1).
This amendment would prevent the United Kingdom Internal Market Act 2020 from being inserted into Schedule 4 of the Scotland Act 1998, meaning that this Bill would not become a “protected enactment” under that legislation.
Clauses 49 and 51 to 53 stand part.
Amendment 4, in clause 54, page 41, line 24, at end insert—
“(2A) The relevant sections of this Act come into force in accordance only if—
(a) a Minister of the Crown has moved a motion in the House of Commons specifying on which date a relevant section comes into force, and
(b) that motion is approved by resolution of the House of Commons.
(2B) The relevant sections for the purposes of subsection (2A) are sections 42, 43 and 45.”
This amendment would prevent any of sections 42 (Power to disapply or modify export declarations and other exit procedures), 43 (Regulations about Article 10 of the Northern Ireland Protocol) and 45 (Further provision related to sections 42 and 43 etc) coming into force before the House of Commons had approved by resolution the date from which they would take effect.
Amendment 9, page 41, line 25, leave out subsections (3) and (4) and insert—
“(2A) The other provisions of this Act may not come into force (and in particular no additions may be made to Part 2 of Schedule 7A to the Government of Wales Act 2006 (specific reservations), Part 2 of Schedule 5 to the Scotland Act 1998 (specific reservations) or Schedule 2 to the Northern Ireland Act 1998 (excepted matters)) until the Prime Minister is satisfied that resolutions have been passed in Senedd Cymru, the Scottish Parliament and the Northern Ireland Assembly in favour of those provisions coming into force.”
This amendment would ensure that no additional powers are reserved to Westminster through this Bill unless the devolved legislatures of Wales, Scotland and Northern Ireland give their consent.
Government amendment 66.
Amendment 39, page 41, line 26, at end insert—
“(3A) Regulations under subsection (3) may not be made before a legislative consent motion relating to this Act has been approved by the each of the devolved legislatures in Scotland, Wales and Northern Ireland.”
This amendment would require the remainder of the Act to have gained consent of the devolved legislatures before coming into effect.
Clause 54 stand part.
New clause 9—UK Council of Ministers—
“(1) The Secretary of State must publish no later than three months from the date on which this Act is passed a framework for a UK Council of Ministers to be agreed by resolution of each House of Parliament.
(2) The responsibilities of the UK Council of Ministers must include—
(a) considering the UK Government’s use of financial assistance for economic development in terms of section 46 of this Act;
(b) considering the terms of any reports prepared by the Competition and Markets Authority in terms of section 29 of this Act;
(c) considering the extent to which its members have acted in a manner consistent with the devolved settlement;
(d) reviewing and considering the impact of any aspect of the internal market of the United Kingdom on any part of the United Kingdom;
(e) requesting that the Secretary of State take specific necessary action to facilitate policy objectives in an area within the competence of the Secretary of State.
(3) The membership of the UK Council of Ministers must include representatives from all parts of the United Kingdom and its devolved administrations.”
This new clause establishes a UK Council of Ministers to ensure the effective functioning of the Internal Market and to examine spending under this Bill.
New clause 11—Review of the Act—
“(1) Within three months of the date on which this Act is passed, the Secretary of State must lay a report before each House of Parliament on the dates on which each section—
(a) was commenced; or
(b) is planned to be commenced.
(2) The Secretary of State must arrange for a review to be carried out within three months of the date on which this Act is passed, and thereafter at least once in each calendar year on the operation of this Act.
(3) The Secretary of State must invite the Scottish Government, the Welsh Government and the Northern Ireland Executive to contribute to the reviews in subsection (2).
(4) The reviews under subsection (2) must make an assessment of—
(a) the functioning of the United Kingdom internal market;
(b) the effectiveness of market access principles;
(c) progress towards agreeing common frameworks with the devolved administrations;
(d) progress towards drawing up a shared prosperity fund framework; and
(e) progress in resolving issues through the Joint Committee machinery in the Withdrawal Agreement.
(5) The Prime Minister must arrange for a report of any review under this section to be laid before each House of Parliament as soon as practicable after its completion.”
The intention of this new clause is to provide Parliament with information on the working of this Act in the context of developing common frameworks.
As ever, it is a pleasure to serve under your chairmanship, Dame Rosie. This Cummings-directed Tory UK Government are breaking international law, and they are breaking devolution. Behind the innocent-sounding mutual recognition mechanism, the Bill simply starts a race to the bottom on standards with the UK Government imposing it against our will in Scotland.
The Bill will see the Tories mount an assault on devolution with the biggest power grab since the Scottish Parliament was re-established. People in Scotland are seeing through the contempt that the Tory Government and Westminster have for their democratic choices. They are not daft. They know that this shabby, illegal, dogmatic Bill is not designed to fix anything, but it is designed to game the system for vested interests.
It is a fact that existing mechanisms and simple changes to Standing Orders could have worked with consensus instead, but this Government do not believe in consensus, just in getting their own narrow ideological way.
The UK Government’s approach—the diktat—is the opposite of the democratic European single market approach. The development of the EU single market has been based on the principles of equality, co-operation, co-decision, subsidiarity and, of course, consent. Crucially, it sets a baseline of minimum agreed standards with which all member states’ own rules must be compatible. What a contrast with this hasty, badly written, contemptuous Bill. The Government are even having to amend their own Bill as they go along, so shabby is it. Government amendment 109 is necessary to remove clause 20—how slapdash is that?
On the mutual recognition mechanism, clauses 2 to 9 contain sweeping powers to compel Scotland to accept lower standards, set elsewhere in the UK, on animal welfare, food safety and environmental protections, among a host of other areas.
My hon. Friend is making a very important point. One issue raised by the General Teaching Council for Scotland is that teachers in Scotland must adhere to certain professional standards. That is not the case in England. If professional qualifications were accepted across the United Kingdom, Scotland would potentially have to accept teachers with lower professional standards. That is a real concern for the GTC in Scotland. Does he share that concern?
I do indeed. I thank my hon. Friend for her intervention. As I mentioned in my speech last week, the Bill affects every aspect of Scottish public life. These powers radically undermine the ability of the Scottish Parliament to serve the people who elected it.
The UK Government want to ditch high regulatory standards. They continually refuse to confirm whether the UK will keep pace with EU standards after 31 December. They will not even rule out chlorinated chicken being forced into our marketplaces. The question has to be asked: why keep that prospect on our tables? It is because they are betting all of our farms on a US trade deal. They have put everything on black, hoping for a Trump victory. The irony is that if it comes up red, with a Biden win, the Bill puts any trade deal in trouble, because the presidential candidate has said that he will not put up with anything that undermines the Northern Ireland-Ireland peace process.
The hon. Member is absolutely right that there will be no trade deal if any damage is done to the Good Friday agreement or the protocol. It is also the case that the Houses of Congress have to ratify any trade deal, so no matter who wins the White House, it is clear that Congress will not support a US-UK trade deal after any damage is done to the Good Friday agreement.
I completely agree with my hon. Friend. His point that the Good Friday agreement is being put in jeopardy is absolutely spot on. That is why the Government are betting on a Trump victory. President Trump has declared that when it comes to doing business with the UK, as far as he is concerned
“everything is on the table.”
The US Secretary of State, Mike Pompeo, has said of the trade talks:
“We need to make sure that we don’t use food safety as a ruse to try and protect a particular industry.”
The Government have even voted against their own Back Benchers’ amendments to protect high standards. They voted five times against amendments to the Agriculture Bill, and five times against food standards amendments to the Trade Bill.
The effect of clauses 2 to 9 would be to prevent the Scottish Parliament from requiring goods or services to meet the standards that it decides. The UK Government’s White Paper outlined examples of this. Page 77 has a case study on deposit return schemes, page 78 has one on food labelling and pages 79 to 82 cover food manufacturing, including hygiene, recycling and animal welfare. On page 82, it specifically mentions minimum pricing as a regulatory restriction. Page 85 talks about building regulations and construction permits. As Professor Michael Dougan of Liverpool University observes, Scotland’s minimum price controls could be
“characterised as a form of product requirement”,
making them
“fully subject to the principle of mutual recognition.”
This would mean that
“imported English alcohol would not have to comply with any new Scottish requirements. Once the mutual recognition obligation applies, there is virtually no scope for Scotland…to justify applying its new rules to English imports: mutual recognition can only be set aside on the basis of serious health threats arising from the internal movement of pests/diseases/unsafe foodstuffs.”
I am sure that the hon. Gentleman shares my concern that Professor Dougan also draws attention to the fact that policies that already exist under the auspices of the Scottish Government and the Welsh Government, if they were to be adapted, might then fall within the scope of this Bill. These are popular policies that we have made to cut our own path in the past, and yet this now threatens their future.
Indeed—I agree. In fact, Professor Dougan has said:
“I do not share UKGov’s apparent assumption that regulatory divergence is inherently problematic and must be strictly controlled, by imposing extensive limits (in effect) on the ability of devolved institutions to make different choices from Westminster”.
I congratulate the hon. Gentleman on his very carefully crafted amendment 89, which would mean a race to the top as opposed to the race to the bottom that he has alluded to.
I thank the hon. Gentleman for that. Of course, that is where we all should be aiming—a race to the top. That should be the principle that is being set by elected Members in the Parliaments that they are elected to represent, yet we find here a complete travesty of that.
Devolution has proved that the market can successfully operate across the UK with variations in standards. This Bill’s proposals work against the interests of our high-quality producers and our consumers. As the National Farmers Union of Scotland explained in its submission to the UK Government’s White Paper consultation, the proposals for the UK internal market, in the absence of effective common frameworks, could trigger a race to the bottom. In a Scottish context at the very least, they could force a choice between upholding high standards of production or maintaining the competitiveness of agricultural businesses.
The existing common frameworks were designed to manage cross-UK divergence where EU law and competences intersect. They do not need to be supplemented or undermined. Scottish Environment Link is clear that the UK Government’s plans could
“force Scotland to follow the lowest common denominator, especially where countries negotiating bilateral trade deals with the UK demand lower standards seriously undermining efforts to combat climate change and biodiversity decline.”
I am interested in why the hon. Gentleman seems to assume that any standards legislated for in this Parliament would inherently always be lower, as he puts it. Why would that necessarily be the case?
Perhaps you should ask your hon. and right hon. Friends on your Back Benches who voted against your own Back Benchers’ amendments to protect—
Order. The hon. Gentleman knows that he should not address another hon. Member directly. When he uses the word “you”, he is talking about me, and I am sure he would not want to do that.
You will notice, Dame Rosie, that it is a very uncommon mistake I have made, in that case. I take the scolding in good grace. Thank you, indeed.
Perhaps the hon. Gentleman would like to ask his colleagues why they voted five times on the Trade Bill and the Agriculture Bill against protecting these standards. We know—the Scottish public know—what this is all about. They are not daft; they see this. They see that this grubby attempt to make sure that we can get a deal—any deal as long as it is not with the EU—is the reason these things are being sacrificed.
This Tory UK Government do not care about the views of the experts that we have quoted here today or of the groups that are concerned about these issues. They do not want to hear those views. They simply want to oversee the biggest power grab in the history of devolution.
Clause 48 reserves state aid. We know that state aid provisions will mirror those of the World Trade Organisation, making an already diminished deal option with the EU even more difficult. Incidentally, Tory claims about the constraints imposed by EU state aid rules are inevitably always exaggerated. Automatic approvals applied to nearly 95% of state aid last year, and this year the EU acted swiftly to sign off on a raft of Government help to aid industry during the pandemic.
Is the hon. Gentleman aware of the manner in which authorisations are given? Stating that it has been approved is one thing, but the way in which it has been arrived at—behind closed doors and without anybody knowing how it has been done—is a really big problem.
It beggars belief that this kind of intervention attacking EU procedures is being made when the Bill will directly give powers not only to the UK Government to overrule devolution, but to the Secretary of State himself to overrule essentially anything that he wants to. I will return to that point in a moment. The Bill directly undermines the Scottish Parliament’s ability to protect Scottish farmers’ livelihoods. Cheaper meat will drive out quality production. The ability to choose the highest standards in environmental protection and in building control and the ability to keep our NHS and water in public hands will all be affected. The UK Government want private companies to be given a guaranteed right to trade unhindered in Scotland. The UK Government claim that there are exclusions from the principles of non-discrimination, but that is absolutely blown out of the water by the fact that the Secretary of State will retain
“a power to alter these exclusions.”
The hon. Member for Stone (Sir William Cash) wants a backdoor deal. Well, there is one for him; he can do it in the Cabinet Room.
No, I will make some progress on this.
That is regardless of the views of the people of Scotland, Wales and Northern Ireland. It does not matter what the devolved Assemblies or Parliaments are saying, that is the ability that the Secretary of State has.
The Law Society Of Scotland warns that clause 8(7) empowers the Secretary of State to amend by adding, varying or removing an aim in clause 8(6). This is a very wide power, and regulations are subject to the affirmative resolution procedure. Unlike other order-making powers earlier in the Bill, the Secretary of State is under no obligation to consult the devolved Administrations before making such regulations. The Government should explain why clause 8 adopts a different approach from the earlier clauses in this respect.
The real threat to trade comes not from what could have been agreed on common frameworks across the nations of the UK, but from this Tory Government’s incompetent handling of the process to agree a deal with the EU. Their lofty ambitions are now, at best, low deal or no deal following their decision to remove Scotland against its wishes, and of course the rest of the UK, from the EU, a prosperous and highly integrated market no less, with an integrated trade and regulatory partnership of 450 million customers, along with the associated social vandalism that this has inflicted.
By the way, we hear that we should trust this Government. Just in case anybody is under the illusion that we can rely on the altruism of Westminster, they should listen to the words of Tory Luke Graham, who lost his seat in this place in December. Even he could see that it is foolish to do so. He said in this very Parliament:
“To reiterate my point and the frustration that I have felt since I have been in this place, sometimes…it appears that the Treasury is not so much a British Treasury but an English Treasury, which becomes incredibly frustrating for people trying to fight for projects in Scottish constituencies.—[Official Report, 15 January 2019; Vol. 652, c. 368WH.]
That was a Tory MP who was in this House until December last year.
The UK Government are breaking international law and devolution. The mutual recognition mechanism fires the starting gun on a race to the bottom on standards, with the UK Government imposing those standards on Scotland against our will. This Bill oversees the biggest power grab since the re-establishment of the Scottish Parliament. As I said earlier, the real threat to trade is the looming no deal or low deal that the Government are railroading through with the EU. It is now clear for all in Scotland to see that the only way to represent the public needs and to protect our way of life and our hard-won Parliament is through becoming an independent nation, taking our own place as an equal partner within the European Union.
I am always extremely aware of other points of view—I have been subjected to them for the past 35 years in this House, but so far they have not prevailed. I am clear in my mind about the benefits of the United Kingdom as a whole, on all these matters—there are so many aspects that we do not have time to go into today—but state aid is central to the whole question of maintaining our spirit of enterprise. It is central to the degree to which we can provide tax incentives to facilitate and encourage UK jobs for the whole UK, including Scotland. It is central to our ability to encourage competitiveness, based on our own laws, and level up throughout the entire country, including Scotland. This is fundamental stuff.
The hon. Gentleman discussed the situation in the 1950s and ’60s, and I know that he likes to dwell on that era. I note that he conveniently airbrushed Margaret Thatcher out of the demise of the coal industry in Scotland. For his information, we have trust ports in Scotland, too. Does he get the irony of arguing about another body’s interference in an elected Parliament’s ability to make decisions while he is making this argument? That is exactly what is happening to the Scottish Parliament through the Bill.
That is interesting, because the counterpoint to that—the hon. Gentleman would expect me to come back with this—is to ask why on earth the people of Scotland would want to subjugate themselves to the European Union system, which we are escaping from, when it has such deleterious and tragic consequences for so many people and jobs in Scotland, as well as in Wales and England. He argues that Scotland can do this better, but I tell him that the consequences of staying in the European Union would be extremely damaging.
We have made it clear that the laws would continue under the protocol, as we discussed yesterday. I know that from the advice and analysis that we are doing in the European Scrutiny Committee, and the Cabinet Office Minister is coming to see the Committee very soon to discuss all these questions. Given the manner in which the European Union functions—as I have said, behind closed doors and without even a transcript—and with the wholly unelected European Commission making the authorisations, the system is very bad news for Scotland. It will be no substitute for having these things handled in an objective and down-to-earth way by the Minister; I have no doubt that he will ensure that the people of Scotland are looked after properly.
This is a bread-and-butter issue for those who work in our economy. It is about putting food on the table, into the indefinite future, for all voters, whether they are Conservative, Labour, DUP, SNP or others. It is similarly important for those voters’ representatives in this House. If Members vote against the Bill, they will have to explain to every one of their constituents, including those in Labour constituencies—I am not looking at anybody in particular or making a point about that, because we represent the whole country through different political parties—why our economy and voters’ jobs and businesses have continued to be undermined by unfair and discriminatory EU state aid and other uncompetitive lawmaking.
The Bill will ensure, among other things, that the UK escapes unfair discrimination under the EU state aid regime, which I mentioned yesterday in relation to the steel industry. The voters in the red wall know this, as do their parents, including those in coalfield communities. I became vice-chair of the all-party parliamentary group on coalfield communities—this is going back five or 10 years—because I understood, as did many Labour Members from Mansfield and all over the country, how important those communities are. I even got up the other day and spoke in the House about pension arrangements for coalminers. We need to take account of the fact that the state aid rules cause total misery and tragedy, and ultimately the destruction of our coal and steel industries.
Does my hon. Friend agree that it tells a huge story that the Government have voted against those kinds of protections on 10 occasions?
Absolutely. An amendment was tabled by one of their own Members—the Chair of the Environment, Food and Rural Affairs Committee, the hon. Member for Tiverton and Honiton (Neil Parish)—to protect food standards in farming.