Economic Activity of Public Bodies (Overseas Matters) Bill

Felicity Buchan Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)]

I thank Members from throughout the House for their impassioned and heartfelt contributions. Let me remind the House why we have introduced this legislation: we believe that we should have one foreign policy, and we also believe that BDS campaigns risk undermining community cohesion. We believe that public bodies should not be wasting time and money on pursuing their own foreign policy agendas and should instead focus on providing vital public services and delivering value for money for the taxpayer in their procurement and investment decisions.

Let me also clarify certain misapprehensions that certain Members have about the Bill. First, the Bill applies only to public authorities. It does not apply to private individuals or private companies, except if they are exercising public functions. It does not place restrictions on local councillors, except when they talk expressly on the behalf of their local authority. It does not prevent public authorities from making statements on foreign policy; it prevents them only from making a procurement or investment decision if it is motivated by moral or political disapproval of a foreign state’s conduct.

Many Members have mentioned clause 4. I reassure Members that clause 4 only prevents public authorities from making statements of intent to boycott or divest. It does not prevent public bodies from disagreeing with this legislation. The Bill does not ban ethical, religious or socially conscious funds, so, for instance, climate change funds can continue with the Bill unless there are issues that are country-specific.

A number of Members mentioned clause 3(7). I want to clarify the role of the clause. The Bill applies equally to all countries. Countries can be exempted from the ban by secondary legislation, which is what we are planning to do with Russia and Belarus—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. This has been a very good-natured and difficult debate. It has been held with disagreement, but courtesy across the House. People have now come into the Chamber who have not been here during the debate and it is most discourteous of them now to make so much noise that we cannot hear the Minister. That is bad behaviour and it is bad for the way in which we do things in here, especially on a day when we have had a very well-constructed and conducted debate.

[Felicity Buchan]

Thank you, Madam Deputy Speaker.

Given the focus of the BDS campaign on Israel, we are simply saying in this clause that, for Israel to be exempted from the legislation, it will require primary legislation. I want to make that very clear. This policy does not affect our foreign policy position. We are not legislating for the UK’s foreign policy on Israel or on any other country in the Bill. The purpose of the Bill is to ensure a consistent approach to foreign policy across our public bodies, led by the UK Government. The Bill will not prevent the UK Government from imposing sanctions, or otherwise changing our foreign policy on any country in future.

I stress that none of the provisions in the Bill changes the UK’s position on Israeli settlements in the west bank and the Golan Heights. We are continuing to urge Israel not to take steps that move us away from our shared goals of peace and security. We support a negotiated settlement leading to a safe and secure Israel living alongside a viable and sovereign Palestinian state, based on 1967 borders with agreed land swaps, Jerusalem as the shared capital of both states and a just, fair and realistic settlement for refugees.

Furthermore, our position on settlements is clear: they are illegal under international law; present an obstacle to peace; and threaten the physical viability of a two-state solution. Our position is reflected in our continued support for UN Security Council resolution 2334, with which the Bill is compliant.

[Richard Graham]

What the Minister says is not really what is reflected in the Bill because a specific exemption is given not just to Israel, in what should be a country-agnostic Bill—just like our manifesto commitment—but to two parts of Israel which we do not recognise as part of Israel under international law. Therefore, there is specifically an exemption for Israel. Does she agree—the Secretary of State said earlier that he would listen very carefully to suggested amendments—that this is something that needs to be worked on during the Bill Committee?

[Felicity Buchan]

UN Security Council resolution 2334 asks countries to differentiate between Israel and the occupied territories. We have done that in this clause; they are clearly separated out in different paragraphs. However, as the Secretary of State said in his opening remarks, we are open to any discussions on the Bill and of course we want the best legislation here.

[Alicia Kearns]

rose—

[Felicity Buchan]

I am very conscious that, in the interests of time, I only have a few minutes.

[Alicia Kearns]

My hon. Friend knows the incredibly high esteem I hold her in, but it just is not credible to keep repeating that this does not change how we treat the Golan Heights, which have been annexed, and the Occupied Palestinian Territories. The Foreign Office’s own legal advice states that the Bill could breach UNSC 2334. How am I being told repeatedly from the Dispatch Box that that is not the case, when that is what Government lawyers are saying themselves? We have a responsibility to uphold that resolution. We drafted this legislation and therefore we need to remove clause 3(7). We on these Back Benches have offered a landing platform to the Government: “Remove that clause. You can still do this.” But please do not repeat that this does not change anything when the Government lawyers themselves say it does.

[Felicity Buchan]

The Government’s view is that the Bill is compliant with UN Security Council resolution 2334.

I move on to the reasoned amendment, which rightly recognises the impact that boycotts and divestment campaigns can have on undermining community cohesion. The Government, however, are resisting the amendment on the basis that this legislation is a robust and proportionate means of stopping public bodies engaging in divisive campaigns and of fulfilling our 2019 manifesto commitment. The amendment refers specifically to the Uyghur Muslims. This Government are concerned about the issue of Uyghur forced labour in supply chains and are taking robust action. The exceptions in this Bill, alongside the exclusion grounds in the Procurement Bill, will keep suppliers involved in labour market misconduct, including human trafficking and modern slavery, no matter where they are in the world, out of public sector supply chains.

We have already discussed the point on the occupied territories and the Golan Heights. The amendment claims that this Bill limits freedom of speech, but that is not the case. Private individuals and bodies are not affected by the legislation. The right to freedom of speech is protected by article 10 of the European convention on human rights and the Government remain strongly committed to the UK’s long and proud tradition of freedom of speech.

The amendment also criticises the powers given to the Secretary of State to enforce this ban. Far from being the unprecedented powers claimed, they are modelled on existing powers of regulators such as the Office for Students and the Pensions Regulator. It would simply not be logical to impose a ban with a toothless enforcement regime.

This legislation delivers an important manifesto commitment. It will ensure that the UK has a consistent foreign policy approach and speaks with one voice internationally. I look forward to working with hon. Members throughout the Bill’s passage to deliver this important legislation and to continuing engagement on the issues that hon. Members have raised in the House today. I commend the Bill to the House.

Question put, That the amendment be made.