Oral Answers to Questions

Debate between Geraint Davies and Conor Burns

Wednesday 7th September 2022 Commons Chamber

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

14. What steps the Government are taking to help tackle increases in the cost of living in Northern Ireland.

[The Minister of State, Northern Ireland Office (Conor Burns)]

The Government have taken decisive action to help tackle increases in the cost of living across the entirety of the United Kingdom, including support for the most vulnerable households in Northern Ireland, who will receive up to £1,000, including a one-off £650 cost of living payment. Yesterday, our new Prime Minister, whom we warmly welcome to office, made it clear that the Government will announce further action later this week.

--- Later in debate ---

[Conor Burns]

The hon. Lady is right to highlight the extent of the challenge, but as she is incredibly fair-minded I know that she will acknowledge that Northern Ireland has significant challenges that go back many generations. If, for example, we could get Northern Ireland to the average UK level of productivity, it would be worth some £16 billion to the Exchequer. If we could get the level of economic inactivity in Northern Ireland to the UK average, there would be an extra 50,000 people in work in Northern Ireland. That is the scale of the challenge that will face all Governments as they try to improve the opportunities for all communities across Northern Ireland.

[Geraint Davies]

Northern Ireland is poorer, it is less well, it is more dependent on public sector pay and it is going to be hit much harder by the cost of living crisis, so why do the UK Government not spend the £400 million that has been allocated but is not being spent because Stormont is not sitting directly on the people who need it most, rather than being preoccupied with cutting Northern Ireland off from the single market, which will make things even worse?

[Conor Burns]

The hon. Gentleman is absolutely right to highlight the scale of the challenge. My right hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), when he was Chancellor of the Exchequer, came to Northern Ireland to meet the Communities Minister and the Economy Minister to seek ways that the UK Government could get help directly to people who need it so desperately in Northern Ireland. We are absolutely clear—the whole House will understand this, and my right hon. Friend the new Secretary of State made it clear earlier—that the protocol is a negotiation between the Government of the United Kingdom and the European Union. We have committed publicly and straightforwardly to fixing the challenges of the interpretation and implementation of the protocol, and we believe that while we crack on with that, the parties should crack on with reforming devolved government in Northern Ireland.

Trade Deals and Fair Trade

Debate between Geraint Davies and Conor Burns

Wednesday 11th March 2020 Westminster Hall

[The Minister of State, Department for International Trade (Conor Burns)]

It is a pleasure to serve under your chairmanship, Mr Stringer, for my first speech as a Minister in Westminster Hall. I congratulate the hon. Member for Swansea West (Geraint Davies) on securing the debate, and other hon. Members not only on their contributions but on their ingenuity in using this occasion at the end of Fairtrade fortnight to widen the debate into one about our future free trade agreements around the world, in particular with the United States. I also congratulate the hon. Gentleman on having been such a doughty advocate for the cause of fair trade over the years—a position that the Government share.

The Department for International Trade works very closely with the Fairtrade Foundation; indeed, the foundation serves on the strategic trade advisory group—the STAG—which I chair as the Minister responsible for trade policy. The global fair trade system reaches more than 1.5 million farmers and workers in more than 73 countries, many of which have historical ties to the UK, principally through the Commonwealth. The UK market for Fairtrade certified goods, which is underpinned by fair trade standards, minimum prices and direct payment of premiums to producers, has grown into one of the world’s largest. The Fairtrade mark continues to be trusted highly by the UK consumer, with more than 80% of the public saying they trust it.

Working towards a living income in domestic and global value chains is one of the keys to driving poverty reduction and economic development, and fair trade plays a crucial role in that. It also provides a means to create wealth, jobs and prosperity in local communities, in turn driving a country’s development and allowing it to grow into a trading partner of the future.

I will give some examples of how the Government, across various Departments, support free and fair trade. Between 2010 and 2016, the Department for International Development provided £20 million to Fairtrade International to help it to have a greater impact through its work and to make the global fair trade system stronger. DFID has also supported fair trade by investing more than £30 million in the responsible, accountable and transparent enterprise programme. That programme has helped to fund Shift, which works to improve companies’ human rights reporting through capacity building in business and human rights, and a new reporting database. It has also piloted and promoted Fairsource, a suite of supply chain mapping tools for use by companies to improve the sourcing of agricultural commodities such as flowers and cocoa, which was referred to by the hon. Member for Strangford (Jim Shannon). Fairsource dashboards are now available for more than 410 businesses and have been used by household names such as Ben & Jerry’s, Marks & Spencer and Starbucks.

Achieving the UN sustainable development goals by 2030 means achieving inclusive economic growth and decent jobs. The Government are committed to supporting that to spread opportunity ever more widely. We have the trade and investment advocacy fund to build developing countries’ capacity to participate in trade negotiations and fully engage at the World Trade Organisation. We have the SheTrades Commonwealth programme to enhance the competitiveness of women entrepreneurs in Commonwealth countries by connecting them to international markets. We have the Commonwealth Standards Network to increase awareness and the use of international standards across the Commonwealth in order to boost trade.

[Geraint Davies]

The Minister mentioned the good work of DFID in promoting fairness. Will he confirm, or press the Government to ensure, that DFID’s work continues and that it is integral to trade negotiations? There is some concern that the Department for International Trade is working in isolation and in the interests of investors, while DFID may be thinking about fair trade. It is important to hardwire the interests of fair trade into future trade arrangements.

[Conor Burns]

I agree with the hon. Gentleman. I know that my right hon. Friend the Prime Minister, when he served as Foreign and Commonwealth Secretary —I was his Parliamentary Private Secretary at the time—was frustrated to a degree by the disconnect that sometimes existed between DFID and the Foreign Office in pursuing Britain’s overall development and foreign policy objectives. It absolutely makes sense that we should try to co-ordinate our activity across all the international Departments of Government to get maximum influence for the United Kingdom and, most importantly, the most positive outcomes. One of the key drivers that motivates us in the Department for International Trade is the opportunity of trade with some of the poorest countries in the world to increase the opportunity for wider prosperity there. That will be at the heart of trade policy as we develop future free trade agreements.

We give £15 million to support the implementation of the trade facilitation agreement programme, which helps developing countries to reduce inefficient border processes, excessive red tape and administrative bottlenecks, which are hindrances to effective trade. The UK is the largest donor to the WTO’s enhanced integrated framework, providing technical and financial support to build trade capacity in 51 of the poorest countries in the world and to increase agricultural productivity for both local consumption and export. Through our support for the Impact Management Project, more than 2,000 organisations are harmonising a global approach to managing impact, including robust global standards on measurement and reporting. We are also examining the potential for fair trade standards to encourage businesses to be more responsible and reach vulnerable people in their supply chains.

Let me turn to a point raised by the hon. Member for Strangford—who is currently being interfered with by my hon. Friend the Member for Beckenham (Bob Stewart), who has just arrived in his coat. The hon. Gentleman mentioned the terrible conditions in which some people work in some of the poorest parts of the world. We are absolutely clear that those people and providing them with opportunities are at the heart of our trade policy. That means engaging across the whole supply chain, working in partnership with businesses, NGOs, producers, investors and consumers to be more responsible and reaching vulnerable people to ensure safe and decent opportunities for all.

Now that we have left the EU, we have a superb opportunity to advance the agenda further. It will enable us to build a fully integrated training and development package, encompassing trade preferences for developing countries alongside our existing aid spending. We know that trade is a key driver of economic growth, helping to raise incomes, create jobs and lift people out of poverty. That is why the Government are working to place development and global prosperity at the heart of UK trade policy.

Free and fair trade has been a great liberator for the world’s poor. Between 1990 and 2015, the number of people living in extreme poverty globally fell by more than 1 billion, but as the hon. Member for Strangford indicated, there is still so much to do. I say to the shadow Minister, the hon. Member for Sefton Central (Bill Esterson), that fair trade also means free trade. Let me tell him and colleagues that by free trade we mean supporting the international rules-based global trading order to ensure that trade works in the interests of all countries, large and small. As an independent trading nation, the United Kingdom will prioritise fair trade and, in particular, trade that helps developing countries to lift themselves out of poverty. That starts with working to ensure continuity in our trade agreements with those developing countries.

Following the transition period, the UK will put in place its own trade preference scheme granting duty-free, quota-free access to 48 least developed countries and tariff reductions to other developing nations. Far from rowing back, as was suggested, we intend to use our new independence to go forward. I contend that while DFID is the Department spending 0.7% of gross national income on development, the Department for International Trade is also, in a very real and profound sense, a Department for development by providing opportunities for creation of wealth and prosperity through trade.

We have signed four development-focused economic partnership agreements with the Southern African Customs Union, and Mozambique and other specific eastern and south African states. We continue to work with our partners on arrangements for the remaining countries covered by EU economic partnership agreements, including Cameroon, Côte d’Ivoire, Ghana and Madagascar. As was alluded to by the hon. Member for Halifax (Holly Lynch), we are absolutely determined to get those over the line. In fact, only last week I met representatives from some of those countries to discuss how we could get those agreements rolled over by the end of the year. We are also using our influence in organisations such as the WTO.

[Geraint Davies]

The Minister will know that the history of investor-state dispute mechanisms is basically about protecting investors who invested in countries without established systems of law and protection for investors. These days, we need a system in which people can invest in the knowledge that the host nation will also protect its environment and workers’ rights. Will he endeavour to strike deals that ensure that those social and environmental rights will be protected alongside investors’ rights, with investors’ rights not trumping those rights and attempts in host countries to protect those vital interests?