Budget Resolutions

Geraint Davies Excerpts

Monday 13th March 2017 Commons Chamber

[Boris Johnson]

As I was saying before your kind advice to Members, Mr Speaker, it is right that at this pivotal and exciting moment in our international economic relations, not just with the EU but of course with the 93% of the world that does not live in the EU—shortly to be 94%—that I should be the first Foreign Secretary in more than 10 years to open a Budget debate. I do so with pride, because this is a Budget that will sustain the momentum of what is already one of the fastest growing economies in the west, with unemployment at its lowest for 11 years, the stock market 1,000 points higher than it was on 23 June, to pick a date entirely at random, and with more people in work—

[Geraint Davies (Swansea West) (Lab/Co-op)]

Will the Foreign Secretary give way?

[Boris Johnson]

I want to make a tiny bit of progress. I will give way many times, but let me get to the end of my second sentence—more people in work than ever before. This is a Budget that continues and enables the biggest programme of infrastructure investment this country has seen since Victorian times. It offers our young people the funding and technical qualifications to enable them to realise their full potential. As Britain prepares for re-entry, as I call it, into the global economy and for forging new relationships and partnerships around the world, the Budget—

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[Boris Johnson]

I am terribly sorry; I missed the second half of that question. However, if the assertion was that British diplomacy is in any way falling short, let me say this. I believe that in the last few months we have seen an understanding of what the country wants, and a growing warmth towards our objectives, because they are, after all, shared with our European friends and partners.

As I have said, one of the things that are most admired by our colleagues around the table, not just in Brussels but in the United Nations, the G7 and the G20—all the bodies whose meetings I attend—is the fact that, as they realise, our Government have an extraordinary record of giving development aid. As we sit here now, the Department of my right hon. Friend the Secretary of State for International Development is helping the Pakistani Government to put 6 million girls through school in the Punjab alone. I think everyone appreciates that that is the best way of promoting economic growth, curbing infant mortality and reducing the pressures of a growing population.

We do not spend our aid budget—0.7% of gross national income—just because that is the right thing to do, although surely it is morally the right thing to do. I am not embarrassed to say that it is also the best way of promoting the development of the economies concerned, and thereby spurring the growth of our export markets. In that sense, a global Britain—[Interruption.] I did not think Labour Members would like that, because they are not interested in any policy that is so obviously of economic benefit to the country, but that is one of the reasons we are doing this. I speak as a defender of, and a believer in, globalisation, because millions of British people in our country—tens of millions, indeed—depend for their jobs and their livelihoods on the benign force of global free trade, which in turn requires safe and open shipping lanes, clear rules and effective institutions. None of that can be taken for granted.

[Geraint Davies]

Will the Foreign Secretary give way?

[Boris Johnson]

I think I have already given way to the hon. Gentleman. [Interruption.] I am sorry; I have not. Go on.

[Geraint Davies]

In the context of global free trade and, in particular, the judgment of the international financial markets, does the Foreign Secretary not accept that since 23 June our economy has slipped from fifth biggest to sixth biggest, and that those markets have deflated its value by 15%, which is why we have devalued and everyone’s wages and all our assets are 15% lower? That is not a success; it is a failure.

[Boris Johnson]

One would have thought that they would learn. One would have thought that the merchants of this kind of thing would have understood that there is no point in continually standing up and running our country down when, in fact, we are back up at No. 5. We have seen record investment in the United Kingdom, and we continue to see that the fundamentals of the British economy are strong and getting stronger.

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[Geraint Davies (Swansea West) (Lab/Co-op)]

That excellent speech by my hon. Friend the Member for Norwich South (Clive Lewis) was certainly much more entertaining than the after-Budget speech we heard from the blond Bullingdon bombshell, who told of his experience selling Toblerone, whisky and boomerangs, after an apprenticeship in selling pork pies to the British public over Brexit. Hon. Members will remember that he promised us £350 million a week for the NHS, though it has not materialised in the Chancellor’s Budget—or, should I say, fudge-it?

Since 23 June, there has of course been a 15% reduction in the size of the economy due to the devaluation of the pound, which is reflected in asset values and people’s wages. Our economy has shifted from the fifth to the sixth largest. We are about to hurtle forward with triggering article 50, giving all the power to determine what happens to the EU 27, without us having a vote in the House. They will impose tariffs. We send 43% of our exports to the EU, and 7% of their exports come to us; we are much more reliant on them than they are on us. Only two countries—the Netherlands and Germany—have a net export surplus with us; the others have an interest in imposing tariffs and making sure that it is not worth while for others to leave the EU, so things do not look too good.

I have spoken to the CBI, particularly in Wales, and it is worried about what is happening to cars—and not just Vauxhall, and Ford in Bridgend; there are other problems: Nissan wants under-the-table deals, and we have seen Rolls-Royce devalued by €4 billion, thanks to the revaluation of the pound. Our second biggest export is chemicals; we are told that 20% of chemical manufacturers are relocating to Ireland, or at least thinking of doing so.

We are told that if we lose trade with the EU, we can go to the emerging markets. Of course, those markets want to trade market access for migration and visas, in the same way that there is a trade-off with the EU between migration and intervention, so there is no obvious net benefit. Donald Trump said on his inauguration that countries are ravaging his economy, taking his jobs, selling his products, and stealing his companies, and he will not have a deal that does not give a net benefit to the United States, so things are not looking too good there.

As for Swansea West, which I represent, there was no news about the Swansea bay lagoon. There was no money for the city deal. There was no bringing forward of rail electrification; it is going to Cardiff in 2018, but it will not arrive in Swansea until 2024. Overall, in Wales, 70% of exports go to the EU, compared to 43% from the UK, so people are naturally concerned. We are told that the economy has grown by 2%, but that has been fuelled by consumer borrowing, which is unsustainable. We know that inflation will grow, which will further undermine people’s wages. Debt has risen from 45% of GDP under Labour to 90% under the Tories. What a failure! If we look at the Red Book, productivity has been flatlining since 2010.

John Maynard Keynes famously said:

“When the facts change, I change my mind. What do you do, sir?”

The vote for Brexit was predicated on more money, market access and less migration. All that is cast into question. We in this place, regardless of the votes earlier today, will have to look again at the situation that arises, and my prediction is that the British public will rise up against market failure, economic failure by the Government, and their decisions.

EU Membership: Economic Benefits

Geraint Davies Excerpts

Wednesday 15th June 2016 Commons Chamber

[John McDonnell]

If I may press on—

[Geraint Davies (Swansea West) (Lab/Co-op)]

May I intervene on this very point?

[John McDonnell]

Yes—

[Mr Speaker]

Order. Before the hon. Member for Swansea West (Geraint Davies) intervenes, let me say that Members must not harangue the hon. Member for Hayes and Harlington (John McDonnell). He is generously giving way, but people should not insist on intervening until it has been agreed. I call Mr Geraint Davies.

[Geraint Davies]

I apologise for my Welsh mannerisms.

May I simply put it to the shadow Chancellor that only two countries—Holland and Germany—have a trade surplus with the UK, while the other 26 have a deficit, and does he therefore agree that in the event of Brexit those countries would vote for tariffs to protect their own jobs and we would be turning our back on 44% of our trade?

[John McDonnell]

The concern, obviously, is that tariffs would be introduced, but also the negotiating period to establish a new trade deal will take, optimistically, as the Prime Minister has said, seven years, if not longer.

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[Caroline Flint]

rose—

[Geraint Davies]

rose—

[Mr Hammond]

Let me just make this point, then I will give way again.

By contrast, if we remain inside the EU, we can look forward to a huge dividend from an opening of the market in services over the coming years. The truth is that we have barely scratched the surface when it comes to the EU single market. The single market in goods is well developed, but in the sectors in which the UK is truly market-leading—financial, business, technical and professional services, the digital economy, the creative industries and energy—the potential remains huge, and the EU’s high-value market is the place to realise it.

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[Stephen Gethins (North East Fife) (SNP)]

Once again, we find ourselves involved in a crucial referendum and a crucial debate that is fundamentally about more powers for this place, and, critically, more powers for Government Front Benchers. They may have denied 16 and 17-year-olds the vote, but let us not forget that this is about younger people, about the future, and about the kind of country that we want to see. Those Front Benchers may even have been reluctant to extend the deadline so that more young people could vote, yet fundamentally next week’s decision will impact on young people, and on our future, for far longer than it will impact on most people in this Chamber.

I hate to say it, but the Tory Brexiters have fought an endlessly negative campaign founded on a cynical misrepresentation of the facts. I found that out for myself a few months ago when I appealed for us to avoid “Project Fear”, have a positive campaign, and give the benefit of the doubt to our opponents, only to find myself on a Vote Leave leaflet advocating for the side for which I was not advocating. That was cynical misrepresentation by those on that side, who fundamentally, instead of working in co-operation with other member states, want to launch a power grab for a Government who are the most right wing of recent times and could be about to become even more so.

In contrast to the Tory Brexit plans, the positive reason for staying in the European Union is one of co-operation between independent and sovereign member states. That co-operation makes us wealthier, with access to a single market of 500 million wealthy consumers. The EU is Scotland’s top export destination—42% of our exports go there, and more whisky is drunk in France in a month than cognac in a year. But that is not going to stop us exporting to the rest of the world. Scotland benefits from a huge diaspora in markets in the United States, Australia and elsewhere, and that will still be there—it is not going away. The European Union benefits us in that people can step from Scotland into a large EU market; we are very well placed for that. Critically, this is not just about big business: small businesses benefit almost more than any others. Many businesses in my constituency cannot afford lawyers in 28 capital cities around the European Union for all the different rules and regulations, so the EU fundamentally helps them, and makes us wealthier.

[Geraint Davies]

Brexiters who say that Britain is the fifth largest economy in the world and that we are big enough to fend for ourselves forget that we are not the United States where California is nearly as big as us, we cannot be China or India, we would not want to be Japan, and France and Germany are part of the EU and locked into the biggest economy in the world. Does he agree that theirs is a ridiculous claim?

[Stephen Gethins]

The hon. Gentleman will not be surprised that I do agree. Just as Scotland is a medium-sized European state, so the UK is a medium-sized global state.

Oral Answers to Questions

Geraint Davies Excerpts

Tuesday 24th May 2016 Commons Chamber

[Mr Hammond]

The sanctions my hon. Friend refers to are in fact Russian counter-sanctions that have been imposed against EU producers. I am pleased to be able to tell the House that, despite the sanctions measures Russia has taken in retaliation against EU agricultural producers, agricultural exports from the European Union in 2015 were up by 6%, showing that our producers—Europe-wide producers—are able to address the challenge of Russian sanctions and to find alternative markets elsewhere.

[Geraint Davies (Swansea West) (Lab/Co-op)]

On the Ukraine, does the Secretary of State accept that Russian bombing of Syrian civilians to provoke refugees and possibly to tilt the balance in favour of Brexit is part of a strategy to fragment European resolve on Ukraine? He is frowning—obviously he has not thought about that.

[Mr Hammond]

There is definitely a Russian strategy to try to fragment European resolve. It is probably a step too far to suggest that Russia’s engagement in Syria is designed only to apply pressure over Ukraine. Russia has important and historical equities in Syria and is seeking to defend its interests there. But, overall, Russia’s behaviour in Syria and Ukraine gives us deep cause for concern about the established security settlement that we have been used to living with for the last 25 years.

Government Referendum Leaflet

Geraint Davies Excerpts

Monday 11th April 2016 Commons Chamber

[Mr Lidington]

I completely agree with my right hon. Friend.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Many of my constituents are concerned about the impact of loosening or cutting our ties with our biggest market and closest allies, and they want more information, especially at a time when the media will be dominated by a Murdoch-driven, anti-EU press, and the BBC has been dumbed down to give equal weight to propaganda from the flat-earthers, rather than a rational evaluation of the merits of continued EU membership. Will the Minister undertake not just to publish a leaflet, but to do much more with posters, TV and other media, to ensure that Britain can make a rational judgment?

[Mr Lidington]

I cannot make the commitment that the hon. Gentleman asks for, but the Prime Minister, the Foreign Secretary and other Ministers will, on behalf of the Government, continue to press as strongly and persuasively as they can the case for Britain’s prosperity and security to be served by continued membership of a reformed European Union.

UK’s Relationship with the EU

Geraint Davies Excerpts

Tuesday 2nd February 2016 Commons Chamber

[Mr Lidington]

The red card, if one is finally agreed, would, for one thing, be quite an effective deterrent against measures being brought forward that the institutions thought did not command democratic support in the Parliaments of member states. One of the lessons national Parliaments should draw from the experience of the yellow card system so far is that they could be more energetic than they have been in bringing forward reasoned opinions under that procedure. I would be delighted if the House of Commons matched the record of the Swedish Parliament or the Polish Parliament in bringing forward reasoned opinions and deploying the yellow card.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Minister agree that the central issue is that if, whether we are in or out, we want lasting influence over the social, environmental and economic future of Europe, we need to stay in? This candyfloss negotiation—it is not possible to ratify it legally in a treaty, but it is welcome—may be sweet to taste, but appears much bigger than it in fact is and will not have a lasting impact unless we stay in the Union to see it through.

[Mr Lidington]

I really do not think that the hon. Gentleman should be so dismissive of issues that the Prime Minister has put on the table and which matter a great deal to the people whom both he and I represent in this House. There are very significant advantages to our national interest in remaining part of a reformed European Union, but opinions in the House have differed on the subject, quite honourably and openly, for many years and it is right that the people have the final say.

UK and Kazakhstan

Geraint Davies Excerpts

Tuesday 5th January 2016 Westminster Hall

[Geraint Davies (in the Chair)]

Happy new year, everyone.

[Bob Stewart (Beckenham) (Con)]

I beg to move,

That this House has considered the relationship between the UK and Kazakhstan.

Happy new year, everyone. It is particularly good to see staff from the embassy of Kazakhstan here. I declare my personal interest as treasurer of the all-party parliamentary group on Kazakhstan.

Kazakhstan is massive. The whole of western Europe would fit into the state. It is the world’s largest landlocked country, and it stretches from the Caspian sea to China. Some 16 million people live across its vast lands. Kazakhstan is so vast that, if those people were evenly spread out, there would be only six in every square kilometre. In 1991, Kazakhstan was the last former Soviet republic to break from the Soviet Union. The former Communist party leader, Nursultan Nazarbayev, has effectively ruled the country since its independence—he is now 75 years old. He was first elected as the secretary of the Communist party of Kazakhstan in 1989, but he was re-elected after the break with the Soviet Union in 1991. Practically unopposed, President Nazarbayev has won—

[Bob Stewart]

I thank my good friend, despite her being in opposition, for that intervention. I entirely agree that that is one of the problems that Kazakhstan has to address.

The President is very popular with ordinary Kazakhs and is credited with presiding over successful political, economic and social changes through the 1990s and impressive economic growth since 2000. Corruption is undoubtedly a serious problem in the country, with perceptions of Kazakhstan in Transparency International’s annual index being almost as bad as the perceptions of Russia. However, I note that Kazakhstan is not listed as a country of concern in the 2014 Foreign and Commonwealth Office annual report on human rights, unlike its neighbours Uzbekistan and Turkmenistan.

Clearly, President Nazarbayev retains a tight rein on power. In fairness, he argues that real democracy will come one day but that change must be gradual so as not to destroy the country’s stability. That makes pragmatic sense, considering the situation in many surrounding countries. Kazakhstan is doing its very best in a region where good governance is hardly endemic. After all, Kazakhstan is no different from countless other states across the world, most of which the United Kingdom considers to be both friendly and a trading partner.

With that in mind, I support Kazakhstan’s bid for a non-permanent seat on the UN Security Council in 2017, and I hope the Minister will do so, too. Kazakhstan has a great record on non-proliferation and disarmament, and it gave invaluable help to our Government during the withdrawal of British forces from Afghanistan. Kazakhstan also hosted two rounds of negotiations on the Iranian nuclear programme, which was important. Kazakhstan has also mediated in talks on Syria and Ukraine. Finally, the country has initiated the establishment of a nuclear weapons-free zone in central Asia—that treaty was signed on 8 September 2006 in Kazakhstan. In 2009, it was Kazakhstan that initiated the adoption of the UN resolution declaring 29 August as the International Day against Nuclear Tests. Kazakhstan has also closed down a nuclear test site, which was a legacy of the Soviet Union. That is an impressive record.

Oil is dominant in Kazakhstan’s economy. It provides a very large source of foreign investment, Government revenues and employment. Kazakhstan is the 17th largest oil-producing country in the world and has the 12th largest proven reserves of oil, too. Booming oil prices sustained Kazakhstan’s strong growth from 2000 to 2007, when the global financial crisis hit. GDP per capita, a measure of living standards, rose by 89% in real terms over those years. Growth slowed in 2008 and 2009, but picked up again in 2010. The World Bank notes that those rising income levels have led to rapidly falling levels of poverty, which is excellent news.

Our Prime Minister visited the Kashagan oil district on the Caspian sea in June 2013, taking with him representatives from 30 British businesses. The visit was billed as the beginning of a new strategic partnership with the United Kingdom. More recently, President Nazarbayev visited the UK last November to hold talks with the Prime Minister in No. 10 Downing Street. The President and Prime Minister discussed Russia and Ukraine. On Syria, they considered the vital importance of finding a political solution to the conflict and, concerning Daesh, the Prime Minister and President agreed that violent Islamist extremism poses one of the most significant threats to our generation and that there must be comprehensive efforts to defeat it. On Afghanistan, the two leaders agreed that rebuilding the economy would be a key guarantor of the country’s future stability. In short, Kazakhstan is clearly playing a full and responsible part on the world stage.

After the meeting, the Prime Minister announced that the two leaders had secured 40 deals worth £3 billion. The biggest deal was a memorandum of understanding with Kazakh state firm KazTransGas on the construction of a 1,500 km gas pipeline and four power plants in Kazakhstan. Will the Minister tell us about President Nazarbayev’s reforms and our partnership deals with Kazakhstan? What further plans are there to enhance our relationship with the Kazakhs?

I am told that there is a bit of a problem doing business in Kazakhstan. Consultant advisers such as McKinsey & Company suggests that it stems from factors such as the taxation system, lack of transparency, corruption and possibly the revision of original contracts, which is awful for businesses. Mindful that the UK is one of the top 10 investors in Kazakhstan, what are the Government doing to help fix such problems for our businesses?

As a member of the Defence Committee, I am particularly interested in how we can foster and grow a bigger military relationship between Kazakhstan and the United Kingdom. I gather that a certain amount of defence co-operation has taken place already, particularly on the UK’s withdrawal of troops from neighbouring Afghanistan. Just over two years ago, in November 2013, a military co-operation plan was signed between our Ministry of Defence and Kazakhstan’s. Matters decided included support for English language training, career courses in the UK and peacekeeping courses with the British military advisory training team based in the Czech Republic, as well as for programmes to professionalise the Kazakh armed forces and participate in KADEX, the Kazakhstan defence exhibition. Although I appreciate that the Minister is not part of the defence ministerial team, when he replies to this debate, can he update us on the status of our defence relationship with Kazakhstan?

In conclusion, I believe that the United Kingdom’s current and future relationship with Kazakhstan is of huge importance and will be beneficial to both. Kazakhstan might not be a democracy in the way that we experience democracy, but it is one in its own manner. We should help the country to evolve its own version of democracy even further, which will take time. Political, economic, social and military links between the UK and Kazakhstan will help each not only to understand the other better but to prosper.

[Geraint Davies (in the Chair)]

I call Peter Grant. [Interruption.] Sorry; my notes are obviously wrong. I call Tasmina Ahmed-Sheikh.

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[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairmanship, Mr Davies.

I thank my very good friend, the hon. Member for Beckenham (Bob Stewart), for bringing this matter to Westminster Hall for consideration. It will be no surprise to Members here that I will focus on some of the human rights issues and the persecution of Christians in Kazakhstan. I mean to do so in a very constructive way. I hope that Members will view my contribution in that way, but it is also very important that these things are said; they need to be said. We have a very strong economic working relationship with Kazakhstan and we want that to continue, but the issues of human rights and equalities, as well as the abuses that take place, also have to be addressed.

Kazakhstan is often overlooked, but it is the world’s largest landlocked country; as the hon. Member for Beckenham said in his introductory remarks, it is larger than western Europe. Therefore, I suppose that we should not be that surprised to learn that the astronaut Tim Peake was launched into space from that central Asian republic. It has been ruled by the same president—Nursultan Nazarbayev—since it gained independence from the Soviet Union in 1991. Nazarbayev’s regime is heavily criticised by human rights groups for restricting freedom of speech and for its apparent lack of democracy. At the most recent presidential elections, Mr Nazarbayev obtained 97% of the vote, which is a majority that some MPs can only dream of.

As the right hon. Member for Birmingham, Edgbaston (Ms Stuart) said, there has been a start to democracy in Kazakhstan, but there is a long way for that democracy to move, and it must move alongside the securing of human rights and equalities. The hon. Member for Ochil and South Perthshire (Ms Ahmed-Sheikh) clearly outlined the human rights issues in her contribution, and I will do that too, as well as I can.

Kazakhstan is No. 42 on the Open Doors world watch list and suffers from both Islamic extremism and dictatorial paranoia. The population is 16.7 million, of whom 2.5 million are Christian, although the majority of people in Kazakhstan are followers of Islam. The Christians amount to some 12% to 13% of the population. Not all Christians are affected by persecution in Kazakhstan, but those from non-traditional Protestant groups or who are converts from Islam face the most pressure from both families and communities, as well as from the regime, which is constantly working hard to extend its influence in the country.

More and more sanctions have been imposed on the Church, and Christians are frequently fined for their activities, while pastors are often arrested and imprisoned. In 2014, at least 71 people were fined for worshipping in unregistered underground churches. When people are denied their basic human rights and cannot enjoy freedom of religion or belief, it is little wonder that they are forced underground. Also, a law passed in 2011 limits church registration to groups of more than 50 people, forcing more than 500 churches to close and making church planting nearly impossible. It is surprising that there are 2.5 million Christians in Kazakhstan when we realise the very direct effect that those activities have had upon them. In 2013, Pastor Bakhytzhan Kashkumbayev from Astana—such names never come out right in my Ulster Scots accent—spent eight months in prison and was given a four-year suspended sentence for allegedly serving a mind-altering substance to a parishioner, which turned out to be nothing more than herbal tea that was being used for communion.

Those are some of the things that have happened in Kazakhstan, Mr Davies, and you can understand why we as MPs have to ask these questions and make these contributions. Hopefully we do so in a constructive way through this debate, while also having these things recorded.

On human rights, Kazakhstan heavily restricts freedom of assembly, speech and religion, and torture remains a serious problem. In 2014, the authorities closed newspapers, jailed or fined dozens of people after peaceful but unsanctioned protests, and fined or detained worshippers for practising religion outside state controls. Government critics including Vladimir Kozlov, the opposition leader who the hon. Member for Ochil and South Perthshire referred to earlier, remain in detention after unfair trials.

Recently adopted changes to the Kazakh criminal code, as well as a new law on trade unions, contain articles restricting fundamental freedoms, which is incompatible with international standards, and I am sure the Minister will refer to that in his response to the debate. Also, despite widespread calls to decriminalise libel and to amend the overboard criminal offence of inciting social, national, clan, racial or religious discord, the Kazakh authorities increased the sanctions for these offences in the new criminal code. We have to ask why they have done that, and why they restrict the freedoms of religion, expression and belief of the Kazakh people.

Independent and opposition media continue to face harassment and interference in their work. For example, in May 2014 a Radio Free Europe/Radio Liberty journalist was jailed for four days on hooliganism charges. He was not involved in any protest; he was just reporting for the radio after covering an anti-Eurasian Economic Union meeting.

These are some of the things that have happened in Kazakhstan. I have asked some questions about Kazakhstan before; they are in the background information that I have. The Minister who is here today was the person who responded to those questions. I asked questions in relation to fundamental labour rights and exploitation of child labour. I also asked questions about human rights, and freedom of expression, freedom of assembly and freedom of religion. In fairness—I give credit where credit is due—the Minister responded that the previous Foreign Secretary had brought the issue of human rights before the Kazakhstan Foreign Minister. I am not saying that no one has done anything, but I do not see the response and the changes, and it is changes that I want to see, so I think that the issue needs to be brought to Kazakhstan’s attention again.

Despite the fact that the general public might overlook Kazakhstan, this central Asian republic is a hidden gem, with the potential to unleash a new wave of economic growth and co-operation between east and west. And it can do that, as the hon. Member for Beckenham said very well in his introduction. The ancient silk road that linked China in the east to us in the west ran through what is now Kazakhstan, and the potential for a new silk road has been talked about and can hopefully come to fruition. However, we must address the Kazakh regime’s shortcomings on human rights and democracy.

Britons can visit the country visa-free until the end of 2017. We are a nation that is in favour with the Kazakhs and I expect we will be top of the list for future co-operation, as the emerging powerhouse gains traction and begins to fulfil its true potential. Kazakhstan is underdeveloped, but it is sitting on an abundant wealth of natural resources and minerals and it is essential that we work with the country to move it towards a real democracy with which we can work. We can then truly begin to unleash the potential of a close relationship with what is sure to become the powerhouse of central Asia and a facilitator of even greater trade links with the far east’s emerging economies. The country is strategically placed, and we want to develop our relationship with it.

As we continue to advance our space industry and the stars become more and more within our reach, Kazakhstan, with its space capabilities, will become a central part of that. I am sure that Tim Peake will not be the last person to launch into orbit from such a place. The potential is there. Undoubtedly, Kazakhstan is one for the future.

I have outlined the potential for a new silk road, the abundance of underdeveloped resources and the huge swathes of undeveloped land, but we cannot fulfil the potential until we have progress on the key issues of human rights and democracy. With the election results I referred to being dismissed by the OECD as “largely indiscernible” and human rights organisations across the board continuing to raise the poor track record of the regime, with some of them feeling that it is getting worse, it is essential to put the necessary pressure on the Kazakh regime and let it know that such infringements are simply intolerable in this day and age. We need to get a balance between economic co-operation, human rights, equalities and religious freedom. Despite what Mr Nazarbayev’s public relations offensive would have us think, Kazakhstan continues to stand as a pre-eminent post-Soviet dictatorship, in which, in addition to the disregard for democracy, political opposition and independent media are routinely stifled. Events such as the 2011 Zhanaozen massacre, in which a dozen unarmed protestors were killed, have gone largely unpunished and, despite free speech being guaranteed in the country’s constitution, the reality is very different—I have given examples of just that. The potential for Kazakhstan is amazing, but we can begin to work fully with it to fulfil that potential only when the regime becomes a democracy that respects all human rights.

[Geraint Davies (in the Chair)]

We now turn to the Front-Bench speakers, beginning with Peter Grant for the SNP.

Pakistan

Geraint Davies Excerpts

Tuesday 27th October 2015 Westminster Hall

[Rehman Chishti]

The hon. Lady not only raised the issue, but used that meeting to provide alternatives of how abuse could be curtailed. I fully support what she said about reform, whether it is a question of these cases being dealt with at high courts rather than lower courts or having special prosecutors and special judges. Those discussions took place at every level, and I thank her for her expertise and contributions.

The delegation to Pakistan had the opportunity to learn more about the British Council’s excellent work. Members on the trip visited Islamabad and Lahore to see some of the British Council’s projects in action, including Take a Child to School and the Punjab Education and English Language Initiative, which aims to train 300,000 teachers. The British Council in Pakistan works in all four provinces and has built a network with the scale, skills and influence to deliver transformational change. The council aims to expand its presence and reach tens of millions of people across the entire country by reopening libraries, improving life chances and community engagement through citizenship and sport, empowering women and girls, strengthening skills and expertise in English and UK-Pakistan partnerships in higher education, science and the creative industries.

The Department for International Development is investing some £320 million this year in Pakistan in one of its largest programmes. Pakistan was DFID’s third largest bilateral programme in 2014-15, and if progress continues, it could become DFID’s largest such programme in 2015-16. The greatest priorities for the UK as an international development donor to Pakistan are education, women and children, creating jobs and supporting economic growth, strengthening democracy and governance, building peace and stability in conflict-affected areas, and providing humanitarian assistance through life-saving support to people affected by conflict and natural disasters.

There are ways we can further our relations with Pakistan. In particular, I would like the Minister to consider the following issues. Will he ensure that every possible assistance is offered to Pakistan in the light of the earthquake, to assist the country at this difficult hour? There is a clear relationship between the number of direct flights to a country and an increase in trade. However, since 2008, British Airways has suspended its six weekly Heathrow flights. Will the Minister look at that? The Government’s travel advice has been raised as an issue. Will the Minister look at that and the process for reviewing it, in line with the improving security situation in Pakistan?

The Government have a target of increasing bilateral trade to £3 billion by 2015. Will the Minister present an update on plans to increase trade relations, including plans for trade delegations to Pakistan? With the bulk of trade focused on the goods sector, what can he say about the scope to develop trading links across the service sector? Around 10,000 Pakistani students are studying in the UK. However, changes to student visas were raised when we visited Pakistan as a delegation. Will the Minister provide an update on the situation?

On security, Pakistan is on the front line of the battle with terrorism and would appreciate assistance through GSM—global system for mobile communications—intelligence gathering and technology, such as biometric scanners and night goggles, to monitor the Afghan border more effectively.

I come to my last specific point for the Minister. In a recent joint statement with Prime Minister Sharif, President Obama said that US engagement with Pakistan, one of the largest Muslim democracies in the world, should be comprehensive and multi-dimensional to reflect the global challenges of the 21st century. Is that what the United Kingdom is trying to achieve with Pakistan in its long, strategic relationship with the country?

In conclusion, Pakistan still has many challenges, but it is determined to become a safe and prosperous nation at the heart of the international community. With our mutual shared history, our very large Pakistani-origin diaspora and our deep, strong, multi-dimensional relationship based on mutual trust, respect and understanding, our relationship can go from strength to strength by working together to tackle the global challenges facing the international community. I know that the Minister has recently visited Karachi and seen the many opportunities that the country offers. I thank him for the brilliant work that he does in building our two countries’ excellent relationship, and I look forward to hearing from him on this matter.

[Geraint Davies (in the Chair)]

I call the Minister, who will have to speak quickly.

European Union Referendum Bill

Geraint Davies Excerpts

Tuesday 9th June 2015 Commons Chamber

[Mr McFadden]

For businesses of all sizes, big and small, it makes no sense for us to put barriers and risks between them and their customers that do not exist at present.

As the debate unfolds, those who want to take us out of the EU will have to explain what it would mean for jobs, trade, exports and our collective security. On what terms will businesses want access to the single market? How much would they pay? What rules, including free movement, will they have to stick by? Is the strategy to walk away from the decision-making process and still accept many of the rules? Those who advocate Brexit in the name of sovereignty will have to explain why leaving the collective institutions where many of the rules of our economy are decided, and where we are currently represented, would enhance our power and influence. They will have to show why the major markets in the world outside the European Union would view us as a more attractive proposition if we walked away from where the rules are decided and were outside rather than in.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Will my right hon. Friend give way?

[Mr McFadden]

No, I will not give way any more.

My right hon. Friend the Member for Leeds Central (Hilary Benn) set out our response to the Bill and the ways in which we will seek to amend it as it goes through the House, including by extending the franchise to 16 and 17-year-olds, because it is their future too. In seeking to amend the Bill in that and other ways, we will also be clear that we believe that the best future for Britain is to remain a member of the European Union and not to withdraw from a group of nations held together by both economic interests and common values. We do not believe that we should be forced into a false choice between trading with Europe and trading with the rest of the world, when we all know that we should be doing both.

As I have said, this is a debate about power, influence and our place in the world. Losing elections, as we have just done, does not absolve a party of opposition of its responsibility to do the right thing by the country. In fact, doing the right thing by the country is essential to recovery from defeat, and that is why we will continue to argue for a Britain that maximises its power, influence and opportunities, and for a Britain that plays a leading and important role in Europe, not one that retreats into the arms of nostalgia and nationalism. There has been much debate about whether Britain has lost its confidence as a country with global reach, and whether we are presiding over a quiet and unannounced decline in our influence. Be in no doubt, the debate that the Bill begins is very much part of that issue, and we will continue to argue for Britain to remain an open, engaged and confident member of the European Union in the years ahead.

Europe

Geraint Davies Excerpts

Wednesday 30th January 2013 Commons Chamber

[Mr Hague]

I will give way one more time for the moment.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Foreign Secretary accept, though, that what business wants is to renew and refresh the relationship, not for Britain to withdraw? In particular, companies such as Tata Steel near my constituency, which are already paying 50% more tax in Britain than our European counterparts, are very concerned about the prospect of Britain withdrawing from the EU.

[Mr Hague]

Business does want to renew and refresh that relationship, and the only political leader who has put forward a plan to do so is my right hon. Friend the Prime Minister.

For those reasons Britain should be at the front of the debate about Europe’s future to shape it and reform it, given that in the Government’s view, British membership of a reformed, competitive EU is strongly in our national interest. It is worth noting what the coalition Government have achieved to date. We have already democratised how we make the most important decisions of all on the EU by giving people and Parliament more control: the referendum lock in the European Union Act 2011 for the first time gives British voters the final say over any further expansion of EU powers. I am delighted that the Opposition have now stirred themselves from apathy and abstention to give support, belatedly, to the Act that we passed two years ago.

We have supported free trade agreements, with British efforts that helped secure a free trade agreement with Singapore and one with Korea worth up to £500 million a year to Britain alone. British negotiators helped to secure a single EU patent regime. All these support renewed economic growth and competitiveness across Europe.

European Union (Approval of Treaty Amendment Decision) Bill [Lords]

Geraint Davies Excerpts

Monday 10th September 2012 Commons Chamber

[Wayne David]

My hon. Friend makes an extremely good point. We would not be holding a debate for the sake of it, and we are not talking about transparency for the sake of it. We are trying to underline the importance of the ESM, which is being developed for the first time. It is imperative that we have an ongoing debate.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Is my hon. Friend aware that, only last week, members of the Welsh Affairs Committee were in Brussels to talk to MEPs and Commissioners about this important issue? Does he agree that that is symptomatic of the enormous appetite for discussion of these strategic issues that have a direct impact on the economic future of Britain?

[Wayne David]

I was not aware that the Welsh Affairs Committee had been in Brussels, but that underlines my point that this issue is absolutely central to the European Union at the moment. Debates in Select Committees should not be confined to the European Scrutiny Committee; other Committees should debate these matters as well. I have to say that I would not immediately have thought of the Welsh Affairs Committee as an appropriate vehicle for that, but I imagine that much of the discussion in Brussels focused on how Wales would be impacted by the developments in the European Union.

[Geraint Davies]

As my hon. Friend has questioned the legitimacy of the Welsh Affairs Committee in that regard, I should make him aware that the Committee has recently published an excellent report on inward investment and prosperity in Wales. A key part of that economic activity involves inward investment from and trade with Europe. That is why we adopted a nationally based view—in regard to the nation of Wales—as opposed to the departmental silo-based views. We have a crucial locus on this matter.

--- Later in debate ---

[Wayne David]

Yes, that is an important point, and the role of the ECB is central. Many of us would like to see it being more proactive far sooner than it has been in the past, but its more assertive role could be critical in the future.

Another concern is the circularity of having the facility guaranteed by the same group of countries that might draw on the fund. For example, we all know that Italy’s situation could become difficult, yet Italy is a country that is, at the same time, ensuring that resources are going into the fund that it might itself be required to draw on. That strange relationship and potential incompatibility at the heart of the ESM needs to be thought about carefully. What is important is what is being established here and now. Nevertheless, as situations develop, it becomes all the more important to review the circumstances.

The credit rating of the ESM is another issue. We all know that certain countries, including a number of eurozone countries, have been downgraded in the not-too-distant past. That includes France, which came as a big surprise to many people. The EFSF has been downgraded, too, and we must be sure that that does not develop further with respect to the ESM.

[Geraint Davies]

My hon. Friend and the hon. Member for Basildon and Billericay (Mr Baron) have made the point that if some countries in a group are both taking and giving money at the same time, it amounts to a problem. What about a simple model of a credit union and a community, from which some people put money in and some take it out? What about a marketplace in which some countries put resources in so that other countries can consume their exports? Is that not part of a system for helping broader growth, which is not a problem at all?

[Wayne David]

My hon. Friend could well be right, and I hope that he is, but it is an issue that needs to be rationalised and thought through carefully. My feeling is that, at this stage of the ESM’s development, it has not been given serious thought. It may be necessary and desirable, but it must, as I say, be thought through carefully. It must not happen by accident, but by proper design. The fact that it is not in the design of the programme at the moment provides all the more reason to ensure that we have a proper review and some time for the objective to be explicitly stated.

My last point is about private sector involvement. It is assumed that we are talking about public money, which to a large extent we are, but there is also a role for private sector involvement, which will be done in accordance with good practice as established by the International Monetary Fund. That is welcome, but, again, it needs to be monitored carefully. If we need to enhance our programme or provide more stipulations, those things must be done.

--- Later in debate ---

[Geraint Davies]

The hon. Member for North East Somerset (Jacob Rees-Mogg) has just given us a diatribe in support of laissez-faire economics and casting Britain adrift, and the idea that whatever happens in terms of the ESM will not have any impact on British trade and jobs, which it clearly will.

Like you, Mr Benton, I am a member of the Council of Europe, and we both take very seriously the issue of Europe and our economic, political and social relationships with it. The Welsh Affairs Committee recently visited Brussels to talk to Commissioners, MEPs and others about the prospects for Europe. As we all know, the big debate there, as here, is to do with the challenge of finding the right balance between encouraging growth and making cuts in order to get us back on track. There are very different views in Europe—as there are, of course, across the Committee—about the need to get growth on track, rather than to crush it through excessive austerity measures. The setting up of the ESM will be critical, as will the terms of reference and the details of how it operates.

As to the ESM providing targeted support for Greece and others, the latest debate in Europe is about the interest rate to be applied and the period over which it will be repaid. Those are the two crucial issues for Greece, alongside the question of where the money will be targeted. Instead of being directed towards paying down existing debt, if the money were targeted on solar forests in Greece to provide energy to sell to Europe, on a railway network that supported a more effective tourist industry or on providing universal broadband for Greece to link up to the world, that would provide tools for growth rather than a hammer to hit across the heads of the worst-affected Greek people.

The way in which the ESM operates, its terms of reference, how it impacts on ailing countries and their sovereign debt and its relationship with our country all have major implications for our national interest. I am amazed that those on the other side of the debate—they say they are eurosceptics, but perhaps they should be members of the UK Independence party—deny that there are any implications for our national and economic interests and the jobs of local people in having these proposed reports, and in ensuring they are not merely produced annually, but updated more often.

There is a big difference between what happened in the 1930s, when France, one of the possible locomotives of growth, did not take the opportunity to provide it and instead allowed soaring unemployment in Germany—the rest is history—and what happened in 2008, when we faced a potential depression and Obama and Brown put in place a fiscal stimulus to keep growth going. Recently, we been facing the prospect of a new winter of austerity, but people have at last woken up, and it has now been recognised that the ESM and the fiscal stimulus are about getting Europe back on track, and thereby also securing our own positive future and destiny.

I therefore make no apology for supporting these two modest new clauses, and I hope they will enjoy support across the Committee.

[Mr Lidington]

New clause 1 would require the Government to report annually to Parliament on the impact of the ESM on the UK economy. As the Committee will no doubt be aware by now, the Chancellor already reports regularly to Parliament on Britain’s economic performance through the Budget and the autumn statement. In addition, the Government regularly publish details on our financial relationships with the International Monetary Fund and the European Union and on our bilateral loan to Ireland. As my hon. Friend the Member for North East Somerset (Jacob Rees-Mogg) so brilliantly pointed out, placing an additional reporting burden on the UK Government in respect of information that will largely be in the public domain has no apparent gains and serves no purpose.

The other new clause proposes that the Government report on the impact of the ESM on the economic performance of the EU. I hope that Members would agree that it would not be appropriate for the UK to produce reports on the economic policy and performance of our European neighbours. I can guess what the reaction would be in this place if we were to hear about a debate in the Bundestag or the Greek Parliament about the economic policy of the UK; I can envisage the angry points of order, the protests to Mr Speaker, the early-day motions and the requests to invoke Standing Order No. 20.

The new clause is not needed. The Chancellor has regularly updated the House throughout this crisis, including on developments in the euro-area assistance programmes and on negotiations over the ESM. Furthermore, the Opposition have overlooked the fact that the Commission already annually produces a report on the borrowing and lending activities of the EU, including under the different financial assistance mechanisms. The Government, under the normal scrutiny system, produce an explanatory memorandum for Parliament that summarises the report. That is sent to the European Scrutiny Committee, which, as with any such memorandum, has the option to refer the report for debate. It is also within the remit of the Treasury Committee to launch an inquiry into it, or for the Backbench Business Committee to schedule a debate.

These new clauses would create an unnecessary and burdensome obligation, with no clear benefit. As my hon. Friend the Member for Cheltenham (Martin Horwood) said, they would merely serve to tie up civil service resources in order to report on a mechanism that the UK is not even a part of, and has no intention whatever of joining.

An analogy with the Schengen agreement can be drawn. We are not a part of that, and the Government do not publish an annual report on it to Parliament. Of course, however, Home Office and Justice Ministers will answer questions and hold themselves to account if there are any important developments in that agreement that affect this country. In the event of there being any justice and home affairs measures into which the UK Government might choose to opt, the normal scrutiny system would apply, with the possibility of debates being held either in the ESC or on the Floor of the House.

The Bill is concerned only with approval of the decision amending article 136 of the treaty on the functioning of the European Union, and not with the ESM. These new clauses are therefore wide of the mark. In fact, the only reason I can conceive of as to why Parliament might wish to accept such a reporting requirement is if we were planning to be part of the ESM, which, of course, would in turn mean we were planning to be part of the euro. The logic of the Opposition new clauses is that they still have in mind that prospect for this country.

Of course, as we know, the weasel words have already been employed. In this Bill’s Second Reading a week ago, the shadow Foreign Secretary, the right hon. Member for Paisley and Renfrewshire South (Mr Alexander), was challenged as to the prospect of the UK entering the euro, and he said there was no immediate prospect of that happening. We know, too, that when the Leader of the Opposition was pressed on this same matter, he said that whether or not the United Kingdom were to join the euro would be a matter of how long he were to remain as Prime Minister.

Not only did we hear from my hon. Friend the Member for North East Somerset a clear and devastating exposition of why the Opposition new clauses are completely otiose, but we can see in the Opposition’s decision to bring such new clauses before the Committee this evening some hint of the policy yearning which dare not speak its name: they still cherish that lingering dream of taking this country into the euro one day. The Committee should have nothing whatever to do with these new clauses, and we should reject them.