Israel and the Occupied Palestinian Territories

Geoffrey Clifton-Brown Excerpts

Tuesday 14th November 2023 Commons Chamber

[Mr Mitchell]

We have always made it clear to Israel that we are its closest possible friend, but friends give candid advice and do not always say what people want to hear. The British Government will continue—with, I believe, the strong support of this House—to make the right points to the Israeli Government, and we are able to do so because of our extremely close alliance and friendship with them.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

The human misery and death on both sides, Israeli and Palestinian, are the worst I have witnessed since I became a Member of this House, and they will be solved only by a long-term political solution. Will my right hon. Friend, with whom I totally agree, explain what the British Government are doing in strategic planning to bring about a two-state solution?

[Mr Mitchell]

There is an immense amount of work going on about how we get to the point where we can achieve that. As I set out in my statement, there is no alternative to the two-state solution, and all interested parties should get behind that.

Repurposing Russian Assets to Rebuild Ukraine

Geoffrey Clifton-Brown Excerpts

Tuesday 27th June 2023 Commons Chamber

[Mr Lammy]

I agree with my right hon. Friend, who has raised these issues time and again. The concern is, of course, that there is not the appropriate ministerial oversight, that this place is being kept in the dark about fundamental, key issues, and that in the end the money of taxpayers in all our constituencies will fund these waivers. That is why the House should have both transparency and the opportunity to challenge and question those who make these decisions on our behalf. I hope that that is what Ministers are doing, but it does appear that this is happening without ministerial oversight.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I agree entirely with the thrust of the right hon. Gentleman’s speech. Does he agree that the possible lacuna in the tracing of Russian assets is in Companies House and shell companies? Does he agree that we need to amend the regulations surrounding Companies House to provide proper verification of the people in charge of those companies, and allow Companies House to liaise more closely with the fraud authorities and report suspected fraud?

[Mr Lammy]

The hon. Gentleman is absolutely right. That has been a standing issue that the official Opposition have taken up. We do think further reform is necessary at Companies House, and we were slightly concerned that that was not supported by the Government in the Economic Crime and Corporate Transparency Bill.

--- Later in debate ---

[Mr Lammy]

My hon. Friend is right, and it is why I wanted to mention in my speech that work is happening in Ukraine now, which is extraordinary. We should be behind that work, in defiance of Putin’s imperialism.

We will continue to work with the Government to ensure that Ukraine gets the support it needs to win this war. From the start of this invasion, we have been united on providing Ukraine with the military, economic, diplomatic and humanitarian support it needs. We commend the Government for the commitments they made to support Ukraine at the Ukraine recovery conference last week. We welcome the International Monetary Fund’s announcement of $15 billion to support Ukraine over four years, and we welcome the announcement of £250 million of extra funding from British International Investment. However, just as we pressed the Government to move further and faster on sanctions, in a constructive spirit, at the start of the full-scale invasion, today we are urging the Government to come forward with a legislative plan to repurpose Russian state assets for Ukraine’s recovery.

[Sir Geoffrey Clifton-Brown]

The right hon. Gentleman is a lawyer. Is he aware that one of the biggest arbitration cases ever is before the United Kingdom commercial court? It concerns the seizure by Russia, a month before it went to war in Ukraine, of several hundred civil commercial aircraft. That case is going to cover many billions of pounds, both here and in the US. When we consider what measures we take against Russia, should we not consider that act of expropriation by the Russian authorities?

[Mr Lammy]

The hon. Gentleman puts before the House an important case, which we should look at very closely, as it will be of concern to all of us in relation to how we move forward in these areas. It has been some time since I practised law, although I was pleased to be made an honorary doctor of laws by the University of Glasgow last week.

The UK has a part to play in supporting Ukraine not only today, but for tomorrow and in the decades to come. We believe that we can go further. The frozen Russian state assets held in the UK could have a transformative impact on the future of Ukraine. Let us imagine the good that £26 billion could do if we reappropriated it with the sole purpose of securing a positive future for the people of Ukraine. Russia forfeited its rights to these assets when Putin embarked on his barbaric and illegal invasion, and the least we can do is join our international allies in repurposing these assets for the benefit of Ukrainians. The Government have had more than a year to come up with this legislation, but there has been no plan, no action and no progress. We call on them to treat this matter with the urgency we believe it deserves and to come up with the required legislation within the next 90 days. That gets us to a place where in the autumn we could come together as a House to make this happen—if need be, this could be in the next Session of Parliament. Labour will support the Government in any way we can to make sure that this succeeds, and of course we will hold them to account if they should fail.

--- Later in debate ---

[Leo Docherty]

Thank you, Mr Deputy Speaker. The Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) has had to go away to deal with an urgent welfare issue. So, with the leave of the House, let me begin by thanking all right hon. and hon. Members from across the House for the constructive tone of this debate and for their continued support for Ukraine in the face of Putin’s deplorable and illegal invasion. We have heard many thoughtful and considered speeches and interventions. First and foremost, I would like to reiterate our absolute determination to ensure that, fundamentally, Russia pays for the damage it has caused in Ukraine.

I was grateful for the contribution of the hon. Member for Cardiff South and Penarth (Stephen Doughty), and I will try to cover some of the points he raised. It was welcome that he reiterated the fact that Putin is to blame. We work on the basis that the perpetrator must pay, which is exactly what the Prime Minister outlined last week during the very successful Ukrainian recovery conference.

[Sir Geoffrey Clifton-Brown]

The Russian economy is worth about $1.8 trillion, ranking it 11th in the world. Does my hon. Friend agree that the UK has a strong legal base and that we need to work with our international partners so that we can send out a strong message to the Ukrainians today that there is a hope that one day their country will be rebuilt?

[Leo Docherty]

I am grateful for that intervention, as I entirely agree with it. If we look at the work that has been carried out by G7 allies, European nations and other states around the world in constraining the export of Russian hydrocarbons and finding alternative supplies, we see that the European energy picture has changed radically overnight. That was a consequence of allied will and effort. If we bring that same determination to the issues we have discussed today, we can have a very significant impact.

The perpetrator must pay and we are very clear about that. I will come on to what consideration we have given to the various options that have been laid out today, but I should say—

Ukraine Recovery Conference

Geoffrey Clifton-Brown Excerpts

Thursday 22nd June 2023 Commons Chamber

[Leo Docherty]

The Department will keep colleagues informed through oral and written statements. The hon. Gentleman is correct that public capital is a small component; we are trying to create an environment where global private capital can flow into Ukraine to drive development and long-term sustainable growth. The de-risking of that is a key condition in which the London insurance market will be central.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Our Government deserve great credit for the military and non-military support—£470 million has been given. The World Bank estimated in March that the total rebuilding of Ukraine was likely to cost in excess of £411 billion—that was before the destruction of the Kakhovka dam. Did my hon. Friend detect at yesterday’s conference a willingness among the world’s wealthier nations that for one reason or another have not felt able to participate in the military effort to participate generously in the efforts to rebuild Ukraine?

[Leo Docherty]

That is a relevant question. I think that there is that appetite. The sheer scale of the economic and financial heft of G7 and non-G7 nations there left us full of confidence that our resolute military effort across allied nations will be matched by global capital.

Oral Answers to Questions

Geoffrey Clifton-Brown Excerpts

Tuesday 21st June 2022 Commons Chamber

[Elizabeth Truss]

It is very true that we face a much more insecure Europe and a much more insecure world, and it is right that we are increasing defence spending. We are increasing our capabilities, particularly in areas such as cyber, but we are also making sure that we have fully trained and efficient armed services, not just to be ready but to ensure that we are training up Ukrainians, for example, and helping our allies, particularly on the eastern flank, who face that direct threat from Russia.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

The harvest in Ukraine is going to have to start in the next few weeks. The problem is that there are 25 million tonnes of old crop filling up all the stores, so there will be nowhere to put the new crop. It will have to be piled on the fields, and the Russians will seize it and use it as a weapon of war to buy influence around the world. What more can my right hon. Friend do to ensure that there is international passage for that grain out of Odesa and other ports?

[Elizabeth Truss]

We are doing all we can to secure the export of that very important grain from Ukraine. My hon. Friend is right to say that we have only a number of weeks to be able to achieve that. We are backing the UN plan, but we are also doing what we can with our allies to provide safe passage and to make sure that Odesa is fully defended. Tomorrow, I will be travelling to Turkey to talk to people there about how we could do more to get the grain out of Odesa.

Georgia and the War in Ukraine

Geoffrey Clifton-Brown Excerpts

Tuesday 24th May 2022 Westminster Hall

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

It is a great pleasure to serve under your chairmanship, Sir Mark. I pay great tribute to my hon. Friend the Member for Huntingdon (Mr Djanogly), not only for the informed way he spoke, but for leading a successful all-party delegation to Georgia, as declared in my entry in the Register of Members’ Financial Interests.

We found that the Georgian people are not only extremely hospitable, but very pro-European. In 2020, the chairman of the ruling Georgian Dream party announced plans for Georgia effectively to apply for EU membership in 2024, but the geopolitical situation changed. Russia invaded Ukraine on 24 February this year, and Georgia responded by expediting a full application and submitting it on 3 March for EU consideration.

This month, further documentation was submitted, with the Georgian Government’s answers to a 2,600-point EU questionnaire on the country’s political, economic and institutional readiness to begin the process of joining the EU bloc. A response from the EU is expected in the next couple of months. During our visit to Georgia, as others have said, we visited a training and evaluation centre organised by NATO, where the level of military co-operation with Georgia is increasing. The Georgians seemed incredibly grateful to us as British Members of Parliament for visiting their country and showing our support.

Georgia is at a crossroads, linking Europe and Asia. It has, over the centuries, been partially or completely conquered by many different powers, including the Persian, Ottoman, Mongol and Russian empires. They have all left their mark on the country, culturally enriching it. It is an incredibly beautiful country, with the Caucasus bordering the north, the Black sea to the west, and the wine regions of Kakheti to the east.

One reason we were invited was to assess the current situation with Russia, which, as others have said, occupies 20% of Georgia’s internationally recognised territory. Unfortunately, as the Georgians reminded us many times during our visit, that occupation, which began in 2008, happened with hardly any protest from the rest of the world. Many would argue that that event, combined with Russia’s annexation of Crimea in 2014, led to Putin’s boldness in Ukraine today. We visited South Ossetia, which is one of the two occupied areas, the other being Abkhazia. Standing on the line of control from Russian occupation, peering through binoculars into the mist and seeing no life at all—most, except some of the elderly, have been driven out—was a very eerie feeling.

The only parallel I can draw is with standing on the demilitarised zone between North and South Korea, again peering into the mist through binoculars into the Kaesong joint industrial centre. The only difference in South Ossetia is that the Russians have purpose-built military forts about every 7 kilometres along the border. There is a direct link road through the Caucasus into the former Republic of North Ossetia, which has also been annexed by Russia.

The democracy of Georgia, after years of occupation by the Soviet Union, is nowhere near as well embedded as ours. Although there is a free press, the majority of the press and media usually toe the Government line. In the Parliament, which we visited, the Government exercise control and the opposition do not have anything like the opportunities for criticism in holding the Government to account that we do. There were allegations, though we were provided with no proof, that the judiciary tends to find in the Government’s favour in the most serious cases.

Having said all that, and to put it into perspective, it is considerable how far the country has come since it was occupied by the Soviet Union. There are free elections, and the former President Mikheil Saakashvili admitted defeat in the parliamentary elections in 2012, allowing the first peaceful transition of power since Georgian independence. So, it is possible for people to exercise democratic power. For instance, demonstrations outside Parliament are a common feature, and they are allowed to go ahead unhindered by the Government.

The war in Ukraine is worrying on a number of fronts, because of the human tragedies that have occurred, with the prospect of future trials for war crimes and even genocide. It is essential that we keep up all the pressure against President Putin through sanctions, disruption of the Russian banking system, trade, continual resupply of lethal equipment to the Ukrainian military and, finally, reinforcing the generous British offer to take in Ukrainians affected by war.

No one yet knows how the war will end. It may even become a prolonged low-intensity war. One thing is certain: the military and political landscape of Europe has changed. That is what the Georgians hope—that somehow, in future negotiations, Russians can be pressured to leave the occupied territories, and that the people and families who lived there for so many generations can return to their homes.

As a farmer, I hope that the west will take control of the supply routes through the Black sea, allowing grain to come out of Ukraine and into some of the poorest countries in the world that are most in need of it. Otherwise, various things will happen. Obviously, the people in those countries will suffer hugely. The Ukrainians will also suffer further, because their grain stores are currently full and, unless they can get the grain out of those stores, they will not be able to put into them whatever new harvest they have to prepare for next year.

I left Georgia with a feeling of hope. The Georgians are a wonderful, hard-working and hospitable people who have endured so much over the years—not least because Stalin was born in the country and it was the location of some of the most brutal purges. The Georgians are determined to build it into a prosperous, modern and democratic country. Historically located at the crossroads of Europe and Asia, right at the heart of the old silk route between east and west, they have huge opportunities to trade.

In closing, I pay tribute to the Georgian ambassador to London, who went to huge trouble to organise our trip. We learned a great deal on that trip, and I hope that relationships between Georgia and this country have been, and will continue to be, improved by similar exchanges of views.

--- Later in debate ---

[Stephen Doughty]

The hon. Gentleman is absolutely right to point to that history. It is of course the history of many others in the near orbit of Russia, including in the Baltics. Now, yet again, we see a false, so-called referendum being used next month to attempt to formally bring one of those illegally occupied regions into union with Putin’s Russia. The ceasefire agreed back in 2008 was undoubtedly tipped in favour of Putin and, in the weeks and months that followed, I am sorry to say, the west went back to a business-as-usual approach in its dealings with Moscow. We failed to implement tough enough sanctions or to punish such egregious behaviour. Indeed, the US led the way in “resetting” relations with the Kremlin, and continued to treat Russia as a wayward partner rather than a belligerent adversary.

We cannot continue to make these mistakes if we are to end this diabolical trend of interference and invasion. And, of course, let us not forget the human cost. We saw the persecution of ethnic Georgians in Russia, South Ossetia and Abkhazia, the indiscriminate killing of civilians and the deliberate targeting of urban centres, the waging of a concerted information war to skew and misrepresent the actions of the invaders, and the displacement of 200,000 people. Does any of that sound eerily familiar? It is exactly what we are seeing yet again, so the warning signs were there and it saddens me greatly that we ignored them. We cannot afford to do that again and again.

Rightly, since 2008, Tbilisi, under different Governments, has pushed strongly for closer links with the EU and NATO, to attain the diplomatic and military assurances that it would be protected should it face such threats again. Obviously, membership of either organisation is unlikely in the immediate future, despite the clear attitudes of the population, which have rightly been referenced, and the passion there for close alliance with us. We need to do all we can to facilitate that dialogue and direction.

Georgia has been forced into a very difficult position when it comes to the war in Ukraine, but, despite the expected tension between Kyiv and Tbilisi, I was encouraged to see Georgia’s support for the 2 March UN General Assembly resolution condemning Russia’s illegal attack; support for Russia’s expulsion from the Council of Europe; and backing for the International Criminal Court probe into war crimes against the people of Ukraine. Those are encouraging signals, and we should absolutely recognise their significance. I certainly hope that Georgia can go further, but that requires us also to get involved and to proactively and consistently support all those who face these very difficult choices, particularly in the near neighbourhood of Putin’s Russia, and who need our support economically, diplomatically and in security terms.

I read the article by the hon. Member for Huntingdon that gave us a preview of his speech. It was a very interesting and important article. Fundamentally, if Georgia is to have the confidence to definitively support Ukraine’s resistance, and if the international community is to speak with one voice, clear assurances must come from countries such as the United Kingdom and others of support in multiple domains. If we want to ensure a network of liberty, democracy and peace, we have to invest in it urgently. With that, I have three questions, in conclusion, for the Minister. Can the Minister say what additional measures the UK is taking now to support Georgia diplomatically, economically and, crucially, in terms of security guarantees?

The focus has rightly been on Moldova in recent days, given the imminent threat that country faces. However, we know that the threat can be anywhere in the near neighbourhood of Russia at any time, as seen in Putin’s actions. What is our medium and long-term strategy for the likes of Georgia or, indeed, as mentioned, the western Balkans? What are we doing to reopen the Black sea fully? It cannot be right that Russia alone is able to dominate that crucial maritime domain.

We have heard about the impact on grain and trade, which affects Georgia and other countries bordering the Black sea. We have seen the despicable alleged theft of Ukrainian grain by the Russians in recent days, which has much wider consequences for the rest of the world, as rightly identified by the hon. Members for Huntingdon and for The Cotswolds (Sir Geoffrey Clifton-Brown). What are we doing to block the sale of that illegally seized grain, get the Black sea back open for trade, and ensure that Ukraine and others, including Georgia, can access their trade routes? Finally, what are we doing to build on and enhance the historic friendships and bilateral trade between the UK and Georgia? We have heard so much about that positive relationship. It is clear, in all the relationships that many of us have enjoyed, that the appetite is there from the UK and Georgia, and it is needed more than ever in these difficult times.

[Sir Geoffrey Clifton-Brown]

Will the hon. Gentleman give way?

[Stephen Doughty]

I will, just before I say my last words.

[Sir Geoffrey Clifton-Brown]

The hon. Gentleman has not quite been saved by the bell. A point that was put to us several times throughout our visit was that one of the things that could facilitate greater trade between the United Kingdom and Georgia would be to establish a direct air link between the two countries. In intervening on the hon. Gentleman, may I press the Minister on what she can do to help in that respect?

[Stephen Doughty]

The hon. Gentleman puts an important question. I hope the Minister can address that point, because we must have those links open—not only for trade, but for relationships based on culture and friendship that we know are there—to enable people to travel easily between the UK and Georgia. I hope the Minister has something to say about that.

Today we have covered two important countries and the implications of Russia’s actions towards both. The United Kingdom has to stand united and resolute with our allies and friends around the world, be that Ukraine or Georgia.

Cotswold District Council: Solar Farms

Geoffrey Clifton-Brown Excerpts

Wednesday 27th April 2022 Commons Chamber

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Mr Deputy Speaker, would you please thank Mr Speaker for granting me this opportunity to raise the matter of Cotswold District Council and funding for solar farms?

The council’s Liberal Democrat administration proposes to borrow a staggering £76.5 million to fund various capital projects. The plans were laid out in a report presented to the council’s capital programme investment board on 24 March 2022 and during a subsequent cabinet meeting on 4 April 2022. The full public document pack is available on CDC’s website.

The problem is that if a local authority is ever put into special financial measures, for example as seen in 2018 when Northamptonshire County Council effectively declared itself bankrupt because it could not pay its bills, it is the taxpayer, via the Government, who always ends up paying for disastrous financial decisions made by local councillors.

So what exactly are these proposals as laid out in the circulated tactical delivery plan? Well, page 66 states that the council wishes to borrow a total of £76.5 million to finance various projects, at the same time exhausting the council’s general reserve fund. The plan envisages that £49.7 million be borrowed to finance climate change and green energy investment projects. The largest of these projects is to buy five solar farm sites for a total of £46.5 million. There is more than sufficient finance in the market to fund these schemes without the council’s intervention. In addition, there are plans to borrow £25 million for investment in a variety of projects described as investments for economic development and asset usage, although further details on these schemes are currently not available.

From the delivery plan setting out the substantial amount of money that the council intends to borrow overall, just one project so far has been approved in this entire programme—a £1.8 million housing loan to contribute to Cottsway Housing, which produces income below target. This is a good thing. Borrowing to invest in social housing would really benefit the people of the Cotswolds. However, this is a comparatively small sum compared with the overall amount that the council proposes to borrow, despite its having tangible benefits for the people of the Cotswolds and the fact that it should be prioritised in the building of homes, especially social housing. I understand that councillors were originally advised that about half the borrowing was for social housing, only to later discover from the plans that only £1.8 million had been allocated.

The total amount of this borrowing is spread over five years. However, according to the plans, it appears that some £50 million is scheduled to be spent next year, as they are showing an income for the following year. If this borrowing occurs, it is equivalent to mortgaging council tax payers in the Cotswolds for a generation. The Liberal Democrat administration says that these investments are green and follow economic growth priorities for the council. So what is wrong with that? Well, there is strict legal guidance that all local authorities must act with financial probity, including not borrowing excessively in a way that could put the council’s finances at risk. Please could the Minister confirm this in her reply?

We have seen many recent examples of councils losing huge amounts of money in failed investment schemes. For example, Nottingham City Council ultimately lost £30 million of public money in 2015 after it set up and invested in Robin Hood Energy—a localised green energy company that ran into financial difficulties and could not pay its bills. By 2019, the council was forced to bail it out. In 2020, Croydon Council effectively declared itself bankrupt with a £73 million shortfall. It borrowed £545 million during a three-year period to invest in commercial and housing properties. The council invested £30 million in the Croydon Park hotel in 2018-19. A central Government taskforce was sent to oversee an audit in 2020, following these risky property investments and the council ignoring repeated warnings on its dire financial situation, and last year the council had to have a £120 million bailout from the Government.

Only today, my hon. Friend the Member for Eastleigh (Paul Holmes) raised during Prime Minister’s questions the shocking fact that by 2025 Liberal Democrat Eastleigh Borough Council will have a debt of £650 million following investment in property projects. Cotswold District Council hopes to borrow the money from the Public Works Loan Board at 3.3%, making a profit on the loan by obtaining a return of 7.5% from the investment. The problem the council has with this proposal is that in order to curb excessive substantial, and risky, borrowing from the PWLB, I and others on the Public Accounts Committee have recommended to the Government that they prohibit loans in what I call exotic investments. Such projects include solar farms, and even commercial property investments, purely to make a return on the investment. Could the Minister please confirm that bodies would not, under the PWLB’s loan criteria, be eligible for a loan for an investment in a solar farm?

Furthermore, any application to the PWLB must—this is critical to the whole debate—be accompanied by a repayment statement known as a minimum revenue provision, or MRP, setting out the repayment period and how the council will repay the loan on top of paying interest payments. As an illustration, the proposed loan by Cotswold District Council of £76.5 million, repayable over 25 years, would require annual payments of around £3 million per annum. That is purely to pay off the loan, without any interest payments. The plan does not say where the money borrowed will come from, the duration of the loan, nor how the borrowing will be repaid.

I remind the House that the council’s annual core spending was only £11.2 million last year. From that £11.2 million, which needs to pay for all services if there is to be a balanced budget without a deficit, it would need to deduct £3 million for the annual loan repayment. In the financial year 2021-22, the council forecast a budget of £12.55 million; £5.5 million is from council tax, £3.278 million is from business taxes, and the balance of around £4 million is from a variety of Government grants, which are not necessarily recurring. The council’s finances are fairly flimsy in any case. Will the Minister confirm that the size of this loan—£76.5 million—would be totally disproportionate and unaffordable, given the council’s current income, from which loan repayments and interest would have to be deducted?

It seems that the motivation for taking on all this borrowing was the desire to invest in schemes to generate income. However, as other councils doing the same thing have found to their cost, these schemes are highly risky and could make the finances worse, which would pose a considerable risk to the core finances of the whole council. No commercial bank would ever contemplate agreeing to such a loan. Could the Minister confirm that the PWLB will require a repayment schedule for the so-called MRP?

Under the Chartered Institute of Public Finance and Accountancy code, the council’s financial section 151 officer is required to give advice to councillors about the financial probity of such a large borrowing plan. The section 151 officer can ultimately give a section 114 notice, warning a council that, given the overall state of the council’s finances, the level of borrowing is not sustainable.

Another proposal mooted by the council is issuing green bonds to publicly finance these projects. Securities such as these are regulated by the Financial Conduct Authority. Cotswold District Council anticipates that an issuance programme will be aimed at small investors, although no details are available at this time. Even if the council could begin to sell the bonds in the markets, can the Minister confirm that this form of finance would also come under the financial probity regulations, under which the section 151 officer would have to warn councillors of the effect on the council’s finances of such large borrowing? Furthermore, as a financial instrument, it would have to be authorised by the regulator, the Financial Conduct Authority.

Cotswold District Council has increased council tax by £5, which is a 3.6% increase in the tax bill for residents. That is above the official cap in England of 2.99%—the maximum allowed without a referendum of local council tax payers, and a cap that some 286 councils across England and Wales are exceeding. Given the cost of living squeeze, the council should not look to put up council tax by that much while planning this huge amount of borrowing. It should focus on increasing council tax as little as possible, in order to help people with the cost of living, and should focus on delivering its core strategic services of waste collection and planning, rather than spending our money on feasibility studies.

Although the Government have set some achievable targets under the green agenda, such as bringing all greenhouse gas emissions to net zero by 2050, and securing global net zero by mid-century to limit global warming to 1.5°, there is evidence that, faced with the cost of living, people are asking the Government to help with the squeeze on bills by slowing down the increases in green levies. The same applies to the extreme borrowing that is proposed by Cotswold District Council for solar farms.

Worryingly, I do not see any statements from the council that it is trying to live within its means. Instead, it continually says that the Government are cutting various grants. In fact, in recent years, central Government—the Minister’s Department—have given it significantly more money, as is laid out in the local government settlement, which includes £16.3 billion in settlement funding for local councils in England this financial year. With other grants and an estimate of council tax included, the core spending of councils across England will rise to £54.1 billion, which is an increase of 4.6% on the previous year. There is no pressure on the council to borrow all this money to increase its income. The settlement will partly help to reverse the trend of council tax accounting for an increasingly large proportion of any council’s spending power.

There is no evidence that the council or councillors have the experience to successfully manage a long-term investment programme of this size and complexity. Delivering a financial plan on the scale that is proposed would require considerable financial expertise in the council, which could be lacking, as the competent long-term financial officer, head of finance and deputy CEO has recently resigned. The Liberal Democrat authority also proposes carrying out the programme before the local elections in May 2023. Even the biggest and best commercial banks would struggle to find suitable investments involving that amount of money, and to do the necessary due diligence on them, in just 12 months.

The proposals by Cotswold District Council to borrow a breathtaking £76.5 million, as stated in the plan circulated to its capital programme investment board and cabinet, clearly demonstrate financial incompetence amounting to a recklessness that has the potential to bankrupt the council. At the very least, it will mortgage the council for the generation to come. I urge Liberal Democrat councillors, in the interest of Cotswolds council tax payers, to think again, and I urge the Government to use all their powers to stop councillors borrowing that unsustainably large amount of money. I thank the Minister for being here to answer my debate.

[The Minister for Levelling Up Communities (Kemi Badenoch)]

I start by congratulating my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) on securing a debate on this important topic. Borrowing rules for local authorities may not be the sort of thing that generate many column inches in the newspapers, but they really matter to the day-to-day workings of local government. In many ways, these rules are the guard rails that help to govern decisions around the investment of public funds, which is why it is vital that hon. Members have as much clarity and transparency as possible on what councils can and cannot do, as well as having the opportunity to challenge and raise instances of what they perceive to be misallocation of funds.

My hon. Friend is a tireless campaigner on behalf of his constituents and I applaud him for bringing the issue to the House today for discussion. First, he asked whether the borrowing in question was within the lending rules of the Public Works Loan Board. Under Public Works Loan Board guidance, a project for service delivery includes education, highways and transport, social care, public health, culture, environmental and regulatory services; police, fire and rescue; and central services. I can confirm that projects related to climate change are included in that.

I make it clear that the Government understand that although borrowing is necessary to deliver local priorities, it does carry risk, so it is important that it is done sensibly to keep local authorities’ finances sustainable. My hon. Friend will no doubt be aware that in recent years, a small minority of local authorities have taken excessive and unnecessary risks with taxpayers’ money. Those risks have backfired. That has been all too visible in the high-profile cases of councils that have become too indebted or have made substantial investments in projects that have ultimately proved too risky or too large.

On my hon Friend’s points about the scale of the borrowing that Cotswold District Council intends to do in comparison with its annual income, it goes without saying that disproportionate levels of debt expose councils to financial risk. It is not just the size of the debt that can create issues; some authorities invest in novel activities outside their areas of experience or expertise, which can lead to financial loss when the investment is mismanaged. My hon. Friend will remember what happened with Robin Hood Energy, Bristol Energy and Together Energy. While councils are sometimes very well meaning in trying to tackle important issues such as achieving net zero, we cannot forget that the energy market can be volatile, and councils need to be sure that they are getting the right advice when proceeding with such investments.

That is not to say that local authorities should not undertake borrowing. I want to make it clear that the Government recognise that commercial investments can be necessary and appropriate when made sensibly. Sensible investment can play an important role in helping us to power forward on issues that are central to the Government’s agenda, be they levelling up, net zero or building the homes that the country needs.

On my hon Friend’s point that the Government should stop Cotswold District Council borrowing this money, as he will be aware, councils have responsibility for setting out capital strategies for their area, and they will be held accountable by their communities. Local leaders should understand local issues and prioritise accordingly; it is the Government’s expectation that they should be able to make decisions that reflect the needs of their communities.

In making these decisions, every local authority has a duty to comply with the prudential framework by making sure that its plans are prudent, affordable and sustainable. As my hon. Friend highlighted, taxpayers should not have to foot the bill for preventable mistakes. The Government will, of course, step in where there is clear evidence that local authorities are not complying with their legal duties or acting in the best interests of their taxpayers.

Our focus, as my hon. Friend might expect, is on making sure that we have a system that is genuinely fit for purpose.

[Sir Geoffrey Clifton-Brown]

Will my hon. Friend confirm that the guidance to the Public Works Loan Board has recently been changed so that no investment that is made purely to increase return is allowed? Will she also confirm that any application to the PWLB will have to be accompanied by a statement including a minimum loan guarantee repayment, so that it is crystal clear to everybody in the Cotswold district how these loans will be repaid?

[Kemi Badenoch]

I can confirm that my hon. Friend is correct on the first point. The council cannot invest purely for profit, but because its investment has a net zero element, it would qualify under the guidance. However, it remains to be seen exactly how the proposal will manifest itself. I cannot confirm the second point at the Dispatch Box, but I will get officials to write to him formally with a comprehensive answer. He is absolutely right to raise the point that there is guidance out there that should ensure that councils invest prudently.

In July 2021, we set out what might be called a multi-pronged approach to supporting our role as steward of local investments by improving local decision making and capability, and by developing proportionate tools for intervention, when that might be needed. We continue to work with the sector to implement our proposals and keep the system under continuous review.

I turn to my hon. Friend’s point that the council lacks the experience to successfully manage the programme. To be clear, when local authorities make decisions to borrow to invest in areas such as solar farms, it is important that they have the relevant expertise in the market, and that they have the governance in place to challenge the parties and people running the projects if they are being mismanaged or appear to be falling behind schedule. The council will need to satisfy itself, taxpayers and the electorate that it has the necessary expertise to manage complex projects without exposing itself to excessive risk.

[Sir Geoffrey Clifton-Brown]

I am grateful to the Minister for giving way again; she has been generous. Considering that there is more than adequate private finance to fund these solar farms, is it right that a local authority should invest in such a risky venture?

[Kemi Badenoch]

I thank my hon. Friend for that point. He is right that the Government should not be competing too much with the private sector, but it is not for me to determine what a council should or should not do. Councils are elected and have mandates, but they must be responsible in spending taxpayers’ money. We do not want, as a corollary of that, the Government intervening too much in councils’ decisions. We have empowered councils to do the right thing and, as I said, we expect them to satisfy themselves and taxpayers that they have the necessary expertise to manage complex projects and not expose themselves to excessive risk. We would expect any council to comply with good practice guidance from not just the PWLB but organisations such as the Chartered Institute for Public Finance and Accountancy, and to take on board lessons learned from other authorities. We want to support local authorities in investing responsibly. In March—my hon. Friend may not be aware of this—we commissioned a review of the governance and capability of local authority investment and borrowing, and that review will report later this year.

I thank my hon. Friend for bringing the issue to the House, and for raising this case. It is important that local authorities remain financially sustainable, and the Government take that seriously. If he would like to raise any further points, I will be happy to write to him with further details. Members from across the House care about local accountability and protecting taxpayers’ interests. I am sure that Members will agree that that needs to be achieved in the right way, and that local authorities’ spending needs to be sustainable and not beyond their means.

Question put and agreed to.

Relationship with Russia and China

Geoffrey Clifton-Brown Excerpts

Thursday 24th February 2022 Commons Chamber

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am grateful to catch your eye, Mr Deputy Speaker, in this important debate. I will concentrate my remarks solely on the west and Russia today, although I have a great deal of experience in China.

By invading Ukraine, President Vladimir Putin is imposing misery on the Ukrainian people and his own people, and economic hardship on the rest of the world. Using military aggression to annex sovereign countries is a 19th-century grand power concept in the 21st-century world, where we should be able to settle our differences in a more sophisticated way. Putin wants to go down in history as the leader who restored the Soviet Union. He is tough, he appears not to respect the west or its leaders, and he will not back down easily now that he has invaded Ukraine. We all know what is going on even at this very minute, and how the whole of Ukraine is coming under pressure, and I think it will probably not be long before Kyiv falls.

It is completely false for Putin to claim that Ukraine, or at least parts of Ukraine, belong to Russia due to historical ties. Following such tenuous logic, other well-established European sovereign states that were former members of the Soviet Union would also “belong” to Russia, including the Baltics, or even those countries that have historically fallen under the Russian sphere of influence, such as Finland and Romania. I imagine many of the countries that have borders with Russia feel very nervous at this moment.

The fact is that Ukraine has gained independence and has had democratic elections for 30 years this month. Indeed, as several Members, including my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin), have said, Ukraine gave up its atomic weapons following an agreement in 1994, which was backed by a peace agreement by Russia, America, ourselves and other nations. As my right hon. Friend the Member for North Somerset (Dr Fox) said, it would be interesting to postulate what would have happened if Ukraine still had nuclear weapons.

While the west has responded with solidarity so far, it is very much a first step. The annexation of Crimea by Russia in 2014 was a first test by Putin of how the west would respond to his design on rebuilding Russia’s soviet legacy, and we know that responding weakly and ending sanctions as soon as we could has led to the situation we find ourselves in today. The decisive western leadership at the end of the cold war could not have been more different. The strong alliance between Thatcher and Reagan was crucial in the diplomacy that took place with Gorbachev, and their combined policy led to the end of the cold war and the fall of the Berlin Wall in 1989.

What should our response now be? The two main elements are military and economic. Regarding military support, I am pleased that for a number of years the UK has been supporting the defence and security of Ukraine, helping to train more than 22,000 members of the Ukrainian army, as well as helping to expand the Ukraine’s naval facilities and capability. There is plenty more military support that we can provide without sending British troops. I welcome the Defence Secretary’s recent announcements about the defensive weapons we have been supplying, including light anti-tank armour and defensive weapons systems, but there is plenty more we could be doing, and I look forward to the announcement that the Prime Minister will make at 5 o’clock this evening. We could, for example, supply anti-aircraft missiles and satellite communication intelligence on Russian troop movements, which would help Ukraine plan its defence. We must continue to re-supply the Ukraine military with anything it needs. We must commit to do that until Russia leaves the sovereign country of Ukraine, so that Russia knows it will not have an easy task in attacking Ukraine.

What concerns me and many of my constituents in the Cotswolds is the somewhat limited economic action we have taken so far. As I have said, it is very much a first step, and we must look to further economic sanctions. We should, for example, examine the fact that Putin is one of the world’s richest men, with his wealth estimated at £200 billion, largely distributed about the world in dollars. We should go after that money and freeze it, and we should go after the people who have helped him make that money.

Furthermore, we should go after the oligarchs who surround Putin. If we start to make them really uncomfortable in their pocket, perhaps sooner or later they will start to influence Putin. We need to do that rapidly, because people have the ability to move money around the world very quickly these days. We should have already passed an Act in this Parliament about how we can freeze the sovereign debt of the Soviet Union, how we can get into the SWIFT—Society for Worldwide Interbank Financial Telecommunication—system and stop money getting in and out of the Soviet Union and how we can stop them dealing in dollars. The right hon. Member for Orkney and Shetland (Mr Carmichael) said that Putin has an arsenal of £650 billion, but that will soon run down if we take effective economic measures.

The west must stand together, impose a full set of economic sanctions and resupply Ukraine in any military way possible without leading to full-scale troop insertions from the west. Above all, we must continue to give Ukraine hope. We must keep morale up. The Prime Minister was dead right to ring the President of Ukraine this morning at 4 o’clock to keep that morale up, and we must keep doing that.

--- Later in debate ---

[Richard Graham (Gloucester) (Con)]

As chair of the Westminster Foundation for Democracy and the all-party China group, it is a great pleasure to speak last—I think—from the Back Benches in this debate, which has been brilliantly timed by my hon. Friend the Member for Isle of Wight (Bob Seely).

It is an extraordinary thing. No one could criticise the energy of our defence and diplomatic engagement with Ukraine and Russia in the past few weeks and even months. It is also true, however, that a united western approach, whether on defence, cyber, energy or even legislation, has been lacking, and that is what, paradoxically, President Putin may be helping to bring about. Our own analysis has been in the integrated review for a year and a half: “Global Britain in a Competitive Age” clearly outlines Russia as the most acute direct threat, and China as a systemic competitor. Nor do we lack policy goals in either direction. We aspire to be the leading European ally in NATO, and have the broadest, most integrated presence of any European partner in the Indo-Pacific, in support of mutually beneficial trade, shared security and values.

However, the best plans have to adapt to facts on the ground, so let us identify the challenge before us which, as the head of the Security Service put it the other day, is

“a contest of different worlds…between the liberal democrat model west and the more authoritarian model nations.”

In my view, that is only partly true, because we do—and should—work closely with nations and societies, whether in the middle east, Africa or Asia, that could not be described as following a liberal democrat model, but that may not wish for a change of global leadership.

In that new environment, we must think carefully about what our approach should be, and I believe the first thing is to define British interests, which include a global Britain, not a Britain decoupled from the world—as the head of the Security Service made clear, there is no need to cut ourselves off from the world. It involves understanding autocrats through engagement. In the context of China, that engagement very much includes forums such as the UK-China Leadership Forum, which brings British and Chinese leaders together to talk about issues of strong bilateral and indeed global interest. It includes the work of a Foreign and Commonwealth Development Office non-departmental body, the Great Britain-China Centre, and the all-party China group. That group has now run its first masterclass for Members of Parliament, so that we all have a better grasp of some of the issues, whether that is mainland China, the bilateral relationship, Taiwan, Hong Kong—whatever. Such courses play an important part in expanding our knowledge of the autocracies of the world. Engagement has suffered hugely from this pandemic. It has been terrible for engagement, as it is effectively impossible to travel to China or Hong Kong if one has to quarantine for three weeks, and that lack of physical contact is always dangerous in a more uncertain world.

Within that, our approach needs to consider a number of different things. First, careful scrutiny, not blanket prejudice, is incredibly important. Colleagues across the House have talked about not having any danger of prejudice against the peoples of Russia or China, as that would be contrary to everything that this House and democracies stand for. More trade and investment is a good thing; it brings countries closer together and ties us all in, while protecting our national security. Other colleagues have raised ways in which we can and should do that, and we have been too slow to do so.

We also need to define our positive interests as much as the things we dislike. There is sometimes a danger in this House that while we are good at criticising what we do not like, we do not make enough of what is positive—what is good about our own country, what we need to do more of, and how we can engage with the world more effectively.

[Sir Geoffrey Clifton-Brown]

Through his chairmanship of the all-party China group, my hon. Friend and neighbour has probably done more than anybody in this House to engage with China. One thing he has always done when engaging with China is to be absolutely frank with the Chinese where they have got it wrong, as well as where they have it right. Is that how we should go forward?

[Richard Graham]

My hon. Friend and neighbour is very kind. I have always felt it incredibly important that we stand up for our values, and for the past 11 years, as chair of the all-party China group, I have never accepted mainland Chinese sponsorship of the group. That is precisely because I knew that somewhere along the line, that would be perceived as the group being obliged to a nation overseas, with whose values we do not always align. I have always felt it incredibly important to speak truth to power, whether that is our own Ministers, who may not always relish that, or foreign countries. It is all about the tone and how we engage, understanding where foreign countries, in particular autocracies, are coming from. There is no need for us to compromise on our values, but there is every need to find a way of co-existing peacefully with countries that will be here for a very long time to come. Our greatest challenge will be how we balance those two things.

I will conclude by musing on the fact that the story of the 20th century is fundamentally a story of how nationalist autocracies underestimated the resolve of the democratic west to come together in defence of what we believe in. It would be the cruellest irony and the greatest shame if the same were now to happen in our own century. For all those reasons, it is even more important that we double, triple, quadruple our engagement with those of different values in different systems, so that we understand where they are coming from and are better prepared to unite in a strategic approach together, if need be, to counter threats to our own future.

AUKUS: Impact on Anglo-Chinese Relations

Geoffrey Clifton-Brown Excerpts

Wednesday 20th October 2021 Westminster Hall

[Daniel Kawczynski]

Well, I am a politician, Mr Davies. You have to give me some leeway to give you a brief synopsis up front. Thank you for your patient indulgence.

With regard to AUKUS, we need to celebrate. I am having this debate because I want to send a copy of it to all of my members in Shrewsbury. I rang my association chairman—we have about 500 members in the Shrewsbury Conservative Association—and I have asked for a copy to be sent to all of my members because I think we ought to celebrate the signing of AUKUS. It is extraordinary how little coverage it has received in the press and that the United Kingdom is the only European country that has been asked to join this extraordinary military-naval pact with America and the United States of America.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Australia.

[Daniel Kawczynski]

Forgive me—Australia. I would describe AUKUS as historical allies joining forces again, reinforcing their military bonds, tempered over the heat of many conflicts. The USA, UK and Australia have come together to confront emerging threats. The three of us had to intervene during the second world war to prevent the Japanese empire causing chaos and instability in the region. Now again, I am afraid, those three countries have to come together, in advance of seeing the threat of the Chinese hurtling towards us and other important countries.

Although China was not named in the joint statement, the implication was clear in the opening paragraph:

“we resolve to deepen diplomatic, security and defense cooperation in the Indo-Pacific region”.

Artificial intelligence, quantum technology, cyber-warfare, long-range strike capabilities and a nuclear component are primary areas covered by the pact. It may be noted that in all those areas there is direct competition between China and the United States of America for supremacy.

One person who knew how to deal with the Chinese was the great Singapore statesman, Lee Kuan Yew. Many people told me ahead of this debate to listen again to that great man and how he managed to protect his tiny microstate of Singapore, despite all adversity and threats. I have been watching some of Lee Kuan Yew’s speeches, both in Singapore and in London during his many visits to our capital city. I would like to share with colleagues one thing he said that particularly struck me. He decried the British leaving Singapore in 1971. We had military bases there and he foresaw the dangers ahead of the British leaving.

Hon. Friends and colleagues will know that in 1971 we were going through a period of economic malaise and—how shall I put it?—a lack of self-belief and political courage, and introspection. That is why, under Ted Heath and Mr Wilson, we made those catastrophic mistakes of short-termism, yet again. Remember that the Chinese have a 1000-year strategy. Here there was short-termism, a lack of self-belief and a lack of understanding and appreciation of our reputation in the region from key allies. That led us to leave Singapore in 1971. I hope AUKUS is the prelude to a wider security pact with more countries, and potentially more negotiated British naval bases in countries in the region.

Let us take a moment to recognise and appreciate the extraordinary privilege and prestige that we have as the only European nation with a permanent naval base in the Arabian sea. The Minister will be very cognisant of that. That naval base in Bahrain plays a critical role in maintaining peace between Iran and Saudi Arabia, the two protagonists in that region. Can you imagine, Mr Davies, what would happen in the Arabian gulf if the British did not have a presence in Bahrain? I hope that what we are doing in the Arabian gulf will be replicated in the Indo-Pacific region. AUKUS is the embryo—the prelude—to that.

Mr Davies, you will be pleased to know that I am coming towards the conclusion of my statement. I will refer briefly to the CPTPP. I campaigned for Brexit and I am very proud that my constituency of Shrewsbury voted for Brexit. Now that we have left the European Union, an organisation that is shrinking every day as a percentage of global population and output, we have the opportunity to join the CPTPP, a $9 trillion market in exactly the same region in which AUKUS will operate. It is an economic partnership of 14 countries that, combined, are much larger than the European Union and growing, rather than shrinking, like the European Union.

Let me read out the statement I prepared earlier about why we must now marry our military responsibilities in AUKUS with our forthcoming membership of the CPTPP, and how there must be a unique synergy in tying these two projects together. We can send countries all the arms and armaments we like, but it will mean nothing if China strangle them economically. No one can fly a war plane if they cannot afford the fuel to feed it. China is fighting an economic battle that requires an economic response.

As mentioned, we have ready allies in the region who are more than willing and able to provide support in countering the Chinese. Vietnam and Indonesia, in particular, have the capability to meet our economic needs and those of our allies, in the same way that China can. There are few, if any, restrictions on what countries such as Vietnam can do, relative to what China can do.

I do not know about hon. Members here, but I have very important, large institutions in Shrewsbury—I will not embarrass them now—both in the public and private sectors, who have approached me to say, “We are worried and concerned about our over-dependence on Chinese investment. They are pouring resources into our institutions and are slowly, but inextricably, trying to take control of them. What do we do, Mr Kawczynski?”

The answer to this is the CPTPP. I say to my constituents, “If you need investment from Asia or the far east, please be aware that we applied to join the CPTPP on 1 February 2021 and that negotiations started on 1 June. When we finally agree to be the first ever European country to join the CPTPP, then that free trade scenario will afford us and be the catalyst for a potential massive recalibration of the investments that we accept in this country, and in the exports and imports that we have with China versus the other 14 countries, in particular countries such as Vietnam.”

I would like to ask the Minister, what can the Chinese provide us with that the Vietnamese cannot? I would rather give my money to the Vietnamese, the Singaporeans, the Malaysians, the Indonesians, the Indians, the Japanese and the Australians. All these countries are friendly nations who have nothing but good intentions towards the United Kingdom. What is the purpose of continuing to pour money into China, with this massive dependency on imports from that country?

Finally, Mr Davies, may I make one important last point about Diego Garcia, the British Indian Ocean Territory? In 2018, the Foreign Office asked me to visit the British Indian Ocean Territory, a chain of approximately 30 or 40 islands in the middle of the Indian ocean. What I saw there was absolutely breathtaking and mind-boggling. I have never seen such vast naval and air force installations in my life. This is a critical base that has already been used for wars in the middle east, for supplies, logistics and all the rest of it. We have just entered into an AUKUS military alliance with America and Australia, and yet Mauritius is trying to take these islands from us through the United Nations.

I want hon. Members to know, and this is one of the reasons I keep tabling written parliamentary questions on this issue, that when we gave Mauritius her independence in 1965, it was made abundantly clear—I have read the treaty documents many times—Mauritius would have her independence but would not have control over the British Indian Ocean Territory, which is literally hundreds and hundreds of miles away from it. Hon. Members will know that the British Indian Ocean Territory is actually much closer to the Maldives than it is to Mauritius, yet Mauritius is taking us through every conceivable route at the United Nations to steal—I use that word deliberately—these islands from us. I will also use parliamentary privilege to say that I would not be surprised if the French were not using their influence with the Mauritius Government to facilitate this action, because who do we think would have a naval base in the British Indian Ocean Territory if it was not controlled by Britain but taken over by Mauritius?

[Sir Geoffrey Clifton-Brown]

May I congratulate my hon. Friend on an outstanding speech? Indeed, it is one of the most outstanding speeches that I have heard in this Chamber in my time in Parliament. I will just inform my hon. Friend and the House that when I was a shadow Foreign Office Minister I studied the issue of the Diego Garcian people. When we gave Mauritius independence, they were fully compensated—the families were fully compensated. The wise ones invested and now have houses; the unwise ones spent all the money. There was then a further round of compensation, because it was deemed that they had not been given enough, so they have been fully compensated for any familial ties that they might have had to Diego Garcia.

[Daniel Kawczynski]

I thank my hon. Friend for that intervention. Not surprisingly, I completely concur with everything he has just stated. I would also say to him that in addition to the treaty—the Minister will know about this—we gave Mauritius £4 million as final settlement. Hon. Members will remember how much £4 million was in 1965. Mauritius took that money. Now, 50 years on, Mauritius is trying to overturn—

--- Later in debate ---

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Thank you, Mr Davies, for allowing me to take part in this debate. I would like to thank the Minister; she and I have not always agreed on everything, but we have moved on, and I am glad to see her here. I give sincere congratulations to my hon. Friend the Member for Shrewsbury and Atcham (Daniel Kawczynski); his was one of the highest-quality speeches that I have heard in this Chamber. This is an incredibly important debate, and I am sorry that it is so thinly attended.

You have given me about six minutes, Mr Davies, so I will motor on, but I want to make one or two important points that were not in my speech, but that arise from what my hon. Friend the Member for Shrewsbury and Atcham said. Perhaps the most important thing he said was that now that we have freed ourselves from the straitjacket of European Union trading arrangements, we need to participate fully in the Indo-Pacific tilt and its trading arrangements. He is quite right that it is one of the fastest-growing regions in the world. It is certainly growing much faster than the European Union, which is, if anything, retrenching in terms of percentage of world GDP; he is 100% right on that. I hope we succeed in our CPTPP negotiations. He is also 100% right to talk about naval bases. Ironically, that is exactly what the Chinese are doing; they are expanding their naval bases those in Sri Lanka and Djibouti being just two examples. China is doing exactly what he urges us to do. At Diego Garcia and Guam there are two very significant American bases, which will be maintained at full strength.

My hon. Friend is also right to say that we should reduce our dependency on Chinese investment in this country. Unprecedentedly in my 29-year parliamentary career, I have called for an urgent question. It is on the Chinese purchase of Newport Wafer Fab. It makes our highly sophisticated microchips, which are extremely difficult to make; we have some of the world’s best technology, and we are selling it to the Chinese. These microchips are the basis of every piece of electronic equipment. It was crazy to allow this, and I still appeal to the Minister to look at this again, because it was not very sensible.

I have been actively engaged with members of the Chinese Government at the most senior levels for the last 20 years or so. I am also deputy chairman of the all-party parliamentary China group, so I can claim to have some insight into the Chinese psychology. What one really needs to look into is: what is the psychology driving China when it takes an action? How will it react to this trilateral security pact? Since 2010, the relationship between the UK and China has been pragmatic and often mutually beneficial. For example, the UK was the first western nation to join the Asian Infrastructure Investment Bank. It is still one of the largest foreign countries trading renminbi. I think we have to be pragmatic. I do not think we should cut off our trade with China; I just think we should diversify it.

I totally agree with Members who have mentioned the serious human rights violations in China, which we in the UK abhor and rightly express our concerns about directly with China. That does not mean that we should not be friends with the Chinese on a people-to-people level; nor should it prevent our Governments from having responsible dialogue. China is too big and strategically important not to engage with. The message I want to leave this House with is that if we stop engaging with China, we stop having any influence with it. It is absolutely essential to engage, and we have done throughout history. We have engaged with people whom we do not like and do not approve of. We do not approve of their human rights violations, but we still engage with them. That is what we ought to be doing with the Chinese.

The People’s Republic is extremely strategic and long-term in its thinking—as my hon. Friend the Member for Shrewsbury and Atcham said, it has a 1,000-year strategy. When it sets out to achieve something, it invariably does. I would like my hon. Friend to focus on this line: while it might protest about AUKUS publicly, privately it will respect the fact that the west is standing up to its imperial ambitions. There is no doubt that China wants to become the dominant superpower in the world in regards to political, economic and military influence. We must accept that, but that does not mean we should stop dealing with it. We need to find a sensible way to work with China.

The Chinese are spending huge amounts of money on upgrading their submarine, space and ballistic missile capabilities. According to the Financial Times, in August they tested a nuclear-capable hypersonic missile, apparently to the surprise of the US and western intelligence. Why it was a surprise, I do not know, because we have known for several years that they have been trying to develop these weapons. Such demonstrations show the advanced capabilities of China’s modernised military.

We have witnessed the deterioration in Australian-Chinese relations and the bullying attitude to Australia over trade, which, of course, has spurred Australia on to spend a significant amount of its GDP upgrading its submarine capability to a nuclear-powered capability, so that it can spend more time at sea, hopefully undetected.

I fully welcome the AUKUS pact. I think it is the right thing to do. Hopefully, the UK as well as the US will take part in the production and technology of those submarines. AUKUS has been, to many, a bold step. We are pushing our global Britain credentials with a bigger role in the Indo-Pacific region. Importantly, as my hon. Friend says, we are working closely with our allies—something talked about in the integrated review. He mentioned the number of countries in the CPTPP partnership. One important country he did not mention, and which I would like to mention on the record, is South Korea. We have a trading agreement, and a good relationship, with it. It is one of those countries north of the South China sea that is also troubled by Chinese incursion.

There are still many areas that require productive and sensible China-Anglo dialogue. COP26 is an important milestone for the future of the UK’s climate change agenda and ambition. The UK produces around 1.1% of the world’s emissions, whereas China emits around 28% and accounts for almost two thirds of the growth in emissions since 2000. Clearly, we can set a good example to other countries to decarbonise more quickly and make a real difference to climate change, but we need alliances with other countries, so that they can do the same. We need China to come on board with that agenda. Any fallout over AUKUS will have consequences for other matters, as I have demonstrated with COP26, but I would like to think that it is of benefit to both the UK and China to continue with a constructive dialogue.

While we will always have our differences, and I do not hesitate to articulate our views vociferously to the Chinese when I talk to them, particularly over human rights, overall it is in both sides’ interests to have a realistic but frank dialogue in the future. The idea of breaking off all dialogue with China, as some would advocate, is simply cutting off our nose to spite our face. Worse still, as I have said, we would lose the chance to influence Chinese thinking on issues such as climate change.

This has been an important debate. I hope that my right hon. Friend the Minister will be able to take something from it: that while we want to stand up to China, we want to have a dialogue with it; that its human rights activities are unacceptable; and that we should start to reduce our reliance on Chinese investment.

[Geraint Davies (in the Chair)]

I will call the Front-Bench spokespeople at 10.28 am, so Mark Logan has just under eight minutes.

--- Later in debate ---

[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.

Hong Kong: Electoral Reforms

Geoffrey Clifton-Brown Excerpts

Wednesday 10th March 2021 Commons Chamber

[Nigel Adams]

I agree totally with the hon. Gentleman’s assessment. This is an assault on democracy in Hong Kong. It looks like what it says on the tin: it is an attempt to stifle that democracy. As I outlined in previous responses, we are working with international partners in this regard and we will continue to do so. We will continue to communicate directly with the Hong Kong authorities and the authorities in China. We have taken robust measures, and our presidency of the G7 this year gives us a great opportunity to step up that work.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con) [V]]

Will my right hon. Friend tell the House what further discussions he is having with Five Eyes allies and other allies so that BNO status holders, who are most welcome in the United Kingdom, have similar rights of abode in those countries? More importantly, if we all act in lockstep, we are much more likely to influence China’s policy towards acting in accordance with international norms of behaviour.

[Nigel Adams]

My hon. Friend makes a very good point. We are of course liaising with our international partners, including our Five Eyes colleagues. The United Kingdom is not the only country that is offering access for Hongkongers, certainly since the national security law was introduced. He will know that this is a generous offer for BNO status holders and their dependants. As I said, we are working with international partners, across Government and alongside civil society groups and others to make sure there is effective integration of BNO status holders when they arrive in the United Kingdom.

Hong Kong

Geoffrey Clifton-Brown Excerpts

Thursday 12th November 2020 Commons Chamber

[Nigel Adams]

We have been generous with regard to BNOs, and rightly so, given the duty that we owe to them. We have developed proposals for a bespoke immigration route for them and their dependants with five years’ limited leave to remain, with the right to work or study. The issue to which the hon. Lady refers is a matter, of course, for the Home Office. It is entirely appropriate for her to write to the Home Office and see whether she can get a response that gives her the satisfaction that she requires.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am grateful to my hon. Friend for confirming to the House this morning that this is the third breach of the Sino-British agreement, which was registered at the UN. As a friend of China for 25 years, I say that this is unacceptable. He and the Foreign Secretary must now show the  Chinese that this sort of breaking of international norms has consequences. Will he therefore build as wide a coalition of the free world as possible to act in unison on things such as the Magnitsky sanctions? If he does that, they will be much more effective.

[Nigel Adams]

My hon. Friend is absolutely right to raise this. We have already seen statements from four of our partners earlier today. I understand there may very well be a statement from the European Union later. In response to these developments, we have, as I say, offered this new immigration path, suspended the extradition treaty and extended our arms embargo on mainland China to Hong Kong. We have summoned the Chinese ambassador. We will continue to raise our concerns internationally at the UN. We will continue to lead the international community in calling on China to live up to its obligations under the joint declaration.