AUKUS: Impact on Anglo-Chinese Relations

Debate between Drew Hendry and Geoffrey Clifton-Brown

Wednesday 20th October 2021 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Davies. As this is the first time I have spoken in Parliament since the tragic and senseless loss of our parliamentary colleague, Sir David Amess, I wish to put on record my own deep personal sorrow and condolences to his family for his loss.

I congratulate the hon. Member for Shrewsbury and Atcham (Daniel Kawczynski) on securing the debate. It is an important issue, and there is no doubt about his passion for the subject and for defending the AUKUS deal. There is also no doubt about his clear and persistent disdain for the EU, which came through very strongly in his words. The hon. Gentleman made some very important points about the behaviour of China that I agree with, particularly on its human rights record. Before I get to the substance of my speech, I would say that nobody should ever be bullied or intimidated about speaking out on these issues. That is just not acceptable under any circumstances.

AUKUS is directed against an increasingly aggressive China, but it has had the short-term effect of triggering one of the worst inter-ally crises in living memory. The fallout with France that ensued in the aftermath of the AUKUS deal announcement only plays into the hands of the Chinese. The French Foreign Minister was quoted as saying that the UK was engaging in its usual opportunism, which was why they did not recall the UK ambassador alongside the US and Australian ambassadors.

Maintaining unity with European allies and demonstrating military co-operation are not mutually exclusive. The French should have been involved at each and every stage of this pact’s development even if, ultimately, they would not play a leading role. This UK Government have squandered unity with key European allies who have existing, established presences in the Indo-Pacific area—namely the French—just for membership in this pact.

Common challenges are better faced when countries can trust each other, and that has never been more pertinent than in this case. Diplomatic duplicity and misleading allies is foolish at any time, and cannot contain China—if that is indeed the objective of the UK Government, apart from burning diplomatic bridges between the UK and France by giving Australia access to sensitive technology in the form of nuclear-powered submarines. I must say that our view, unlike that of the hon. Member for Strangford (Jim Shannon), is that this is tacitly encouraging nuclear proliferation, which we in the Scottish National party are morally, economically, environmentally and strategically against.

Despite the passionate defence from the hon. Member for Shrewsbury and Atcham, the AUKUS pact is indicative of UK fears that its status has diminished and is threatened by China. Better decisions will be made here in Westminster only when the UK embraces the fact that it is a middle power. Reluctance to accept that is leading to all kinds of fallout, as we have seen played out on the world stage.

[Sir Geoffrey Clifton-Brown]

I would question what the hon. Gentleman says about nuclear proliferation. If these submarines were going to carry nuclear weapons, he would possibly have a case, but these are only nuclear-powered submarines, and nuclear power is a relatively well-known technology that is certainly not covered by the treaties.

[Drew Hendry]

The hon. Gentleman would make that point, and that would be his defence; I would expect him to do that. However, the fact is that there will be nuclear weapons—nuclear-powered submarines—patrolling as a result of the deal. That is a matter of fact.

Australia has been under pressure since its Prime Minister called for an independent investigation into the origins of covid-19 in China. As we have heard, China has already imposed huge tariffs and restrictions on Australian exports, including wine, beef and barley, and banned coal imports outright. However, that Chinese aggression abroad is only matched by its aggression at home. There have been deadly skirmishes on the Indo-Chinese border. There is the appalling genocidal treatment of the Uyghur Muslims, the ongoing militarisation of the South China sea, military aircraft incursions into Taiwanese airspace, the widespread persecution of the Christians and the Falun Gong, and increased intimidation of the groups in inner Mongolia and Tibet. China has also trashed the Sino-British agreement, and stripped away residual rights of Hongkongers.

In part, this deal seems to message that the international community will not allow aggressive behaviour to go unchecked. Unfortunately, in reality, the posture of this Tory Government towards China remains ambiguous. Although China is described as a “systemic competitor” in this year’s integrated review, there have been several statements confirming that the UK does not want diplomatic tensions to undermine economic relations with Beijing, and that this is merely a war of words.

For instance, the Deputy Prime Minister stated in a leaked message to civil servants that the UK

“ought to be trading liberally around the world”,

regardless of whether our commercial partners comply with human rights standards. That was reiterated by the Foreign Secretary when questioned on this very leak at the recent Tory party conference. Perhaps the Minister might want to clarify her own view.

For the time being, it appears that UK-China relations will be binary and played out on two different levels—one diplomatic and the other economic. China regards the AUKUS pact and in many ways the phrase global Britain as confirmation of the UK standing on the side of the United States in a new cold war between Washington and Beijing. China also believes that a declining Britain does not have the capabilities to become an influential player in the Indo-Pacific region. Some have argued that the UK role in this alliance, in particular, is merely that of a third wheel. There are questions about whether this lack of meaningfulness is worth the provocation it has caused.

If this is an attempt by the UK to forge a meaningful security role post-Brexit, it is not that. More effort should be made to begin talks of a UK-EU defence and security deal. It underlines the reality that, after promises of taking control, the UK’s foreign and security policy is now ultimately decided in Washington.

Local Government Funding: Rural Areas

Debate between Drew Hendry and Geoffrey Clifton-Brown

Monday 11th January 2016 Commons Chamber

[Drew Hendry]

Funding for Scotland has been drastically reduced over the past few years. We recognise the fact that we need more medical professionals, and that is why a comprehensive support package for training is in place in Scotland.

The Scottish Government have also committed to working with local authorities to develop stronger and more productive relationships between central and local government in order to develop real benefits for the people of Scotland. The Scottish budget for 2016-17 for local government has taken place against a backdrop of the toughest public expenditure conditions we have faced. This is the austerity of choice not of necessity, and it has been rejected wholesale by the people of Scotland. Between 2015-16 and 2019-20, Scotland’s total budget will be reduced by 4.3% in real terms. Scotland’s total discretionary budget will be cut by £1.2 billion in real terms, or 4.2%, and funding for day-to-day public services —the fiscal resource—will be cut by almost 6% in real terms, or £1.5 billion.

Between 2009-10 and 2014-15, Scotland’s budget has fallen by around 11% in real terms, with capital expenditure falling by around 34%. This means that our budget has been cut by a staggering £3.5 billion in real terms since 2009-10. As a result of the autumn statement, the Scottish Government’s revenue budget will be cut by 5.7% in real terms over the next four years. However, Scottish local government finance settlements have been maintained on a like-for-like basis for the period from 2012 to 2016, with extra money for new responsibilities. This has resulted in a total settlement of £10.8 billion in 2014-15 and more in 2015-16, allowing rural local authorities and others to perform their duties.

Additional funding has been made available for health and social care, local authority school budgets and support to ensure that the council tax freeze is maintained for its ninth consecutive year. I have to say I agree that once we let the genie out of the bottle and increase council tax year on year, that is exactly what will continue to happen: it will increase year on year. The sum of £70 million is included in the settlement to continue the council tax freeze for a ninth consecutive year, which in turn continues to fully fund local authorities for the moneys that would have been collected by raising the council tax.

While I am on the subject of the freeze on council tax, it should be remembered that before the Scottish National party came to power and agreed the freeze with the councils, this most regressive of taxes had been going up every single year. That was hitting the poorest households and pensioners the hardest. During the 2007 election campaign, I knocked on the door of a constituent in Fort Augustus who was in tears at the thought of yet another pressure on her household purse because of the threat of an increase in council tax.

This measure has now saved the average family some £1,500 at a time when they find themselves most under pressure. Those advocating a return to increasing council tax should remember that that would be likely to result in a return to the yearly default of ever-higher council taxes, with services remaining under pressure due to the UK Government’s austerity obsession. This tax is applied not only to those who can afford a little bit more but to those who cannot withstand yet another squeeze on their ability to put food on the table or to heat their homes.

The net revenue reduction for local authorities next year will be £320 million. That amounts to a reduction of 2% of the total expenditure of local authorities. It is a challenging settlement. However, that does not take account of the additional allocation announced by the Deputy First Minister of £250 million for social care.

[Geoffrey Clifton-Brown]

The hon. Gentleman mentions a reduction in local government revenue support grant of just 2%. I do not know whether he was in the Chamber when I intervened on my hon. Friend the Member for Beverley and Holderness (Graham Stuart) in his excellent speech to tell him that my local authority of Gloucestershire was likely to face a reduction of 30% this year. Does that not wholly demonstrate what a generous settlement Scotland has had?

[Drew Hendry]

It wholly demonstrates the fact that the Scottish Government prioritise local authorities to ensure that they have the ability to deliver the services that they need. I have listened carefully to the complaints being made in the Chamber, and I absolutely agree that some of the cuts being faced by English local authorities are devastating. That is why I am proud that the Scottish Government are prioritising these measures.

The net revenue reduction will be £320 million, but that does not take account of the additional allocation of £250 million for social care. Previously, it has been the sole responsibility of local authorities to fund social care. The national health service will now share that responsibility and will next year invest another £250 million in those services.

The funding settlement also needs to be seen in the context of further funding for local authority school budgets. The budget sets aside funds to ensure that we are progressing the work to close the attainment gap. The £33 million that will be invested next year is part of a bigger programme of £100 million that is being invested over and above local authority school budgets to prioritise improvement in attainment.

Let us compare the situation of Scottish local government with that of English local government. The funding for English local government has gone down by 27% over the past two years while Scottish local government has essentially had a flat cash settlement from the Scottish Government for a number of years. So we are starting from a much higher baseline figure for the provision of local authority services. This underlines the SNP’s commitment to supporting local government.