Draft Recognition of Professional Qualifications and Implementation of International Recognition Agreements (Amendment) (Extension to Switzerland etc.) Regulations 2024

Greg Smith Excerpts

Monday 16th December 2024 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Roger. His Majesty’s loyal Opposition welcome this update. It is good to see the Government bringing into force an agreement made by the Department for Business and Trade when my right hon. Friend the Member for North West Essex (Mrs Badenoch), the Leader of the Opposition, was Secretary of State under the last Government. This legislation will reduce labour costs but will not impinge on Britain’s autonomy over immigration or regulatory policy. It is required to prevent a cliff edge after the previous agreement expires on 31 December.

Switzerland is the United Kingdom’s fourth-largest trading partner. The total trade in goods and services between the UK and Switzerland, in the four quarters to the end of quarter 2 in 2024, was worth £46 billion. According to the Department for Business and Trade,

“The agreement also safeguards the autonomy of UK and Swiss professional regulators to…set and maintain standards…assess against these standards…decide who is fit to practise the profession”.

The UK-Switzerland recognition of professional qualifications agreement, which this legislation implements, was welcomed by the Law Society for continuing the regime under the previous UK-Swiss citizens’ rights agreement.

I have just three questions for the Minister. Does he have plans to extend the mutual recognition scheme further with Switzerland, such as to include financial services, and with other countries, such as the United States? Will he confirm that the legislation will be enacted in Switzerland on the same date? Has he considered a data exchange for qualifications that regulators deem not comparable?

[Mr Alexander]

The questions one always fears are the short ones that come with no thinking time, but I shall endeavour to answer the hon. Gentleman.

[Greg Smith]

I am getting used to being in opposition.

[Mr Alexander]

Exactly—and I am getting used to the challenges of being in government, as distinct from in opposition.

First, in all seriousness, I thank the hon. Gentleman for what I anticipate will be his support for the measures. He is entirely right to recognise that the work was undertaken under the previous Government and he can rest assured that the lodestar for the incoming Government in the last six months has been continuity where it makes sense in the interests of the United Kingdom economy. In that spirit, I hope that we can find common ground this evening.

As I set out, the regulations implement the UK- Switzerland recognition of professional qualifications agreement and require regulators to operate routes to recognition for comparable Swiss professional qualifications in accordance with that agreement. On the issue of extending mutual recognition, we will take a phased approach to make sure that we avoid the cliff edge that the hon. Gentleman eloquently described.

The hon. Gentleman can rest assured, however, that one of the early negotiations that we have initiated is on a Swiss FTA, which again reflects work that was undertaken under the previous Government. We have looked carefully at the mandate and negotiators have begun that process. When one looks for equivalent countries around the world where there are clear synergies in the character of the economy and the economic opportunities, Switzerland is high on that list. In that sense, whether in relation to the mutual recognition of professional qualifications or other aspects of our regulatory arrangements more broadly, we continue to look carefully at opportunities for UK-Swiss co-operation.

On the date of introduction for the Swiss legislation, I do not have that to hand. As I said, Switzerland is passing legislation to require Swiss regulators to recognise UK qualifications to ensure that the benefits are mutual. I will write to the hon. Gentleman about what we understand the Swiss parliamentary timescale to be.

As I have emphasised, the regulations continue to uphold the principle of regulator autonomy as set out in the Professional Qualifications Act 2022. My officials have also engaged extensively with regulators and the devolved Governments on the implementation. I trust that hon. Members understand and recognise the need for the regulations, as the hon. Gentleman set out, and the benefits that they will bring to the UK services trade. I thank hon. Members and commend the regulations again to the Committee.

Question put and agreed to.