United Kingdom Internal Market Bill

Debate between Drew Hendry and Wendy Chamberlain

Consideration of Lords amendments
Wednesday 16th December 2020 Commons Chamber

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

Any improvement to the Bill would be welcomed, but the proposed amendment does nothing to protect the devolution settlement—the Minister said as much in his opening remarks—and the provisions will simply allow this Parliament to overrule Scottish Parliament and Welsh Parliament decisions. It is incredible to hear Labour Front Benchers trying to take credit. They say that they led the way, but they have actually paved the way for this Bill to do that to the Scottish Parliament. They talk about the guile they have shown, but it is gall that they have when they talk about this. You can understand, Madam Deputy Speaker, why Labour has only one MP in Scotland.

Instead of taking this Bill apart, as they should have done, those on the Labour Front Bench spend more of their time talking about the democratically elected Members of Parliament that they have here, who, as I pointed out, are in vastly greater numbers than the one Labour MP from Scotland. They are not listening to Scotland—they never do—and Labour has allowed this aberration to come forward in this way by abstaining in the House of Lords.

The amendment does not protect devolution, as I said: the Minister has laid that out clearly today for everybody to hear. Westminster Ministers will still have the right to impose lower food, environmental and other devolved standards on Scotland, regardless of the view of Holyrood. This Bill is the biggest assault on devolution in the history of the Scottish Parliament. It undermines devolved policy making, grabs spending powers, and removes state aid from being a devolved responsibility. The Scottish Parliament and the Welsh Assembly refused to give this Bill consent, and it is outrageous that the UK Government are once again ignoring the wishes of the people of Scotland as well as Wales.

In welcoming the amendment, Professor Aileen McHarg warned:

“There are still significant problems with this Bill: it changes the scope of devolved decision-making; it reserves additional powers to Westminster; it empowers the UK Government to spend in devolved areas that have nothing to do with markets (eg prisons, sport, international student exchanges); and above all—unlike EU law—it has an inherently asymmetrical effect on decision-making for England and for the devolved territories.

This is a Bill which squarely falls within the scope of the Sewel Convention, and the necessity of which is deeply questionable.”

But of course the Government have not listened to that, and Labour has capitulated on it.

The only reason for this Bill as it now stands is to demolish devolution. If the Government take this Bill forward today, as they obviously will, that is what they will be doing. Any pretence thereafter by the Scottish Tory MPs that they respect the democratic rights of the people of Scotland will be blown apart if they support this today. In fact, they have already supported it, because it seems that it will go through. They have done nothing to protect the democratic rights of the Scottish people.

People in Scotland are watching. People in Scotland, when they see the effects of this Bill, will be angry about the fact that their rights are being taken away by these Tory Ministers, aided by their Labour bedfellows. They will be furious about the fact that their rights are being stripped from them. They are listening, they are watching, and they are seeing developments in this place. They are understanding, now, that the only way to protect their Parliament, their rights and their democracy in Scotland is to go forward as an independent nation—and they will be voting for that, I am sure, in due course.

[Wendy Chamberlain (North East Fife) (LD)]

Yesterday I said that there was still time for compromise, so I am glad that the Government have finally gone for some degree of a consensus approach, and there is no doubt that what will be on the statute book is an improvement on the legislation that was initially introduced back in the autumn. I would like to acknowledge the Minister’s engagement over the Bill. I also thank my Liberal Democrat colleagues in the Lords, who have played an important role, and our staff teams across both Houses.

However, I do still have concerns about the Bill, one of which is about the Office for the Internal Market. The Government need to be transparent about what role that office will play in future trade deals. Can foreign investors in a US trade deal use it to undermine the devolved nations? I have asked that question repeatedly. I am also conscious that the legislative value of this Bill might, in practice, be limited, or indeed pretty much non-existent, especially if we reach a trade deal and a standards agreement with the EU. We obviously need more clarity on this, as the hon. Member for Stone (Sir William Cash) said.

Unfortunately, as I pointed out yesterday, these changes, while positive, are too late, because the damage has already been done. The Minister heard the speeches of SNP Members yesterday, but I wonder whether he listened. With this Bill, the Government have been pouring fuel on a fire, as alluded to by the hon. Member for Manchester Central (Lucy Powell). I ask the Minister: what has this all been worth? If the Government are committed to the future of the United Kingdom, they need to start acting like it.

I cannot count the number of newspaper articles I have read over the past year reporting a reset in the Government’s approach to the Union, that a new Cabinet Committee has been set up to finally solve the Government’s problem as regards relations with the devolved nations, or that the Prime Minister is going to love-bomb Scotland. I urge the Government: this is not about Committees, or grand new offices in Edinburgh, or bridges or tunnels over or under the Irish sea. Those of my constituents who are uncertain about where they want Scotland’s future to lie will not be convinced by Union Jacks on UK Government infrastructure projects: cack-handed stuff, as the passage of this Bill clearly indicates. What they will be convinced by is a UK Government who treat the devolved nations with respect, maturity and honesty, and who work together with the devolved nations to find consensus, because I do believe that we have too much in common for borders to divide us. Are we in this place capable of that? I like to believe we are, but for too many of my constituents, it has not felt like that over the last few months with this Bill.

So I do urge the Government: compromise and consensus were the reluctant final steps they took with regard to this Bill. Noting the comments of the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) in relation to the Welsh Government’s statement, let the first steps the Government take in their future relationship with the devolved nations be that compromise and consensus.

United Kingdom Internal Market Bill

Debate between Drew Hendry and Wendy Chamberlain

Consideration of Lords amendments
Tuesday 15th December 2020 Commons Chamber

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

Thank you, Madam Deputy Speaker. I will do my utmost to whizz through what I can here.

We welcome the Lords amendments seeking to protect both the devolved settlements and the policy divergence across the nations of the UK, but we also know that the Prime Minister and his Tory Government simply detest devolution. All pretence otherwise has been swept away by this Bill, as it puts into action the casual contempt that they have.

The Prime Minister, as we know, believes that devolution is a disaster. Well, we think the same about him. Last night, however, in the Lords, Labour opened the door for the Tories, as they hollowed out devolution, withdrawing support for Lord Thomas’s amendments that challenged the UK Government’s clauses on direct spending in devolved areas. Equally disappointing was Labour’s abstention on the vote for the amendment of Baroness Llandaff to halt the brazen power grab on re-reserving state aid. This is not currently reserved. It is not listed in the reserved powers under schedule 5 to the Scotland Act 1998. It is a devolved power being grabbed back, along with the measures in this Bill in place to overrule decisions taken in Scotland.

I have been quoting absolutely committed Unionists in the other place throughout this debate, and I am grateful to be able to quote them again today. Lord Thomas said:

“The power to control state aid is not reserved. If it were, these amendments would be unnecessary…I ask why the UK Government would not work together with them, consult them before the Bill was produced and try to find a common solution…I fear it is an example of Westminster saying that it knows best, rather than working with the devolved Administrations.”—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1486.]

But once again, the Labour Front-Bench team took weak words from the Government as assurances and chose to abstain on that important measure.

Lord Stevenson’s amendment alters schedule 1 so that environmental standards and public health are exempt from market access principles. He warned the UK Government not to make

“the market access principles, which operate automatically, too narrow and too prescriptive. That would fatally undermine the opportunities for devolved Administrations to diverge”.—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1457.]

Baroness Bennett highlighted that much leadership on climate change has actually originated from the devolved Governments. Lord Hope explained that his amendments seek to ensure that the UK Government’s commitment to market access principles do not undermine the UK Government’s commitment on the common frameworks. On policy divergence, he warns:

“As the Bill stands, a measure that gives effect to an agreed decision to diverge can be ignored by traders bringing goods in from other areas. This undermines the opportunity to diverge, rendering it worthless and ineffective.—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1446.]

Baroness Hayter of Kentish Town provided this summary:

“When the case for Brexit was all about ‘taking back control’, we failed to understand that the Government meant taking control to themselves, even over issues that were fully devolved.”—[Official Report, House of Lords, 14 December 2020; Vol. 808, c. 1447.]

Time and again, across all the nations of the UK, across all parties and none, and across all the affected industries, trade bodies, academia and the legal profession, this Tory Government have been told that the Bill grabs power from devolution and places it here in Westminster. The Bill allows UK Ministers to control spending in devolved areas of economic development, infrastructure, cultural activities, regional development, education, water, power, gas, telecoms, railways, health, housing and justice. The people of Scotland did not vote for the Tories to make these decisions at Westminster. Madam Deputy Speaker, you are far too young to remember the last time the people of Scotland did that, although your grandparents might just have—but only just!

This Bill was born bad to the bone, setting to break international law and break devolution. The Government have been forced to drop some of it, but it remains an aberration and continues its assault on devolution, Scottish public services and public life. The Scottish public, unlike this Government, are listening and watching. They will choose their own path to protect their Parliament and democracy in the near future.

[Wendy Chamberlain (North East Fife) (LD)]

So here we are again. I am glad that the Lords have continued to press their points on the common frameworks and the impact of the Bill on the devolved Administrations. The Lords seem to understand that the Bill poses a great threat to the devolution settlement, so I cannot understand why the Government do not even accept the damage that this Bill has caused in the devolved nations. We are told by the Minister that it is not a political Bill. It is almost laughable. I wish the Government would just be honest with us. If they want to have a debate about the merits of devolution, many Members, not just on this side of the House, would be willing to argue in its favour. The Minister would also do well to remember that it was not the Scottish National party that brought about devolution in Scotland in the first place.

A case in point of the Government’s failure to own up to the impact of this Bill on devolution can be seen with the amendments that have been brought by the Lords on the common frameworks. Last week, I raised the question of what the Bill was for, in situations where common frameworks were already in place. I again ask the Minister to address that question. There is a huge hole in the Government’s argument, and they have left that question unanswered. There is also a real question about the interaction of the Bill with any potential EU trade deal, and I urge the Minister to address this. If we reach agreement with the EU on regulatory standards, which I hope we do, what will become of those clauses of the Bill on standards and frameworks? Will they ever come into effect, or will they become obsolete, with future standards being the subject of regulatory alignment with the EU? If the answer is the latter, I hope the Government will reflect on what this has all been for, and whether it has been worth it.

The Bill had two main aspects. The first was the part that broke international law, which was removed last week. That part of the Bill has resulted in huge damage to our international standing. It was reported this weekend that the serious mistrust sown as a result of those clauses has been a significant barrier to getting the trade deal that the Government claim they want. It has caused huge disquiet among our allies, including President-elect Biden. All that, for clauses that will never even reach the statute book.

Then we have the parts of the Bill that impact the devolution settlement. Those clauses will reach the statute book, but if there is a deal, it is likely that they will have no practical effect. However, the damage has already been done. This has caused deep dismay to the people of Scotland, Wales and Northern Ireland and given those SNP Members sitting around me grist to their mill. Congratulations! This is what you might call a PR nightmare for the United Kingdom and for the Union. Although in many respects it is already too late, I urge the Minister to accept the Lords amendments and finally deliver some form of limited consensus on this Bill.