Economic Activity of Public Bodies (Overseas Matters) Bill

Helen Morgan Excerpts

2nd reading
Monday 3rd July 2023 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

I remind Members that I am a vice-president of the Local Government Association.

First, I want to be very clear that the Liberal Democrats condemn antisemitism. Anti-Jewish hatred has absolutely no place in our society, and we must all do more—as individuals, as political parties and as a Parliament—to tackle antisemitism in all its forms. Nor do we support the BDS movement or any other singling out of Israel driven by anti-Jewish hatred. However, we do not believe that this piece of legislation is going to help to tackle antisemitism. In fact, as many Members throughout the House, including the right hon. Member for Barking (Dame Margaret Hodge), have already set out, the measures in the Bill could even be counterproductive, which is frankly the last thing we want.

Liberal Democrats are also deeply concerned by a series of the provisions in the Bill. First, it will greatly restrict the ability of public bodies to take action against human rights abuses. Many public bodies as well as civil society organisations are alarmed by the persecution of the Uyghurs in Xinjiang, which has led to the detention of more than a million people by the Chinese state. Regrettably, the Government have failed to recognise the genocide that is taking place in Xinjiang, even though Parliament has called on them to do so. It is appalling that a local council will be prevented from calling what is taking place in Xinjiang what it is—a genocide—simply because the Government continue to take a cowardly approach. It seems extraordinary that a local council or museum would risk a significant fine by deciding that they did not want to buy products coming from Xinjiang.

Many of us in this place will remember the popular boycotts of South African goods in the 1980s, which were an effective way of demonstrating opposition to apartheid and which added to the international political pressure to end the regime. In this country, it was local councils that led the way then—and thank goodness they did—but under these new provisions, such action would be illegal.

Secondly, this piece of legislation represents an unjustified restriction on the power of local communities to take decisions for themselves. As a Liberal Democrat, I believe in liberalism, federalism and localism. We believe that it is up to local authorities and public bodies to be able to decide for themselves what they do. If local councillors are elected on a manifesto that includes a commitment to a boycott on ethical or environmental grounds, we believe that those councillors should be held to account by their local electorate, not banned by a distant central Government.

Thirdly, we are hugely concerned by the restriction on the freedom of speech on public bodies and elected representatives in clause 4—the gagging clause. The Bill does not just restrict a public body from engaging in boycott and divestment; it restricts it from saying that it would support such a boycott if it were legal. That represents a significant overreach, which will erode a fundamental democratic right—that of free speech.

Fourthly, I echo the concerns raised by other Members that the provisions in clause 3 represent an attempt by the Government to change their position on the status of the occupied territories. The UK Government have always made a distinction between the occupied territories and Israel, in line with international law. That is clear in everything from our trading arrangements to the advice given to businesses looking to operate in the occupied territories. However, the Bill conflates the two by listing the occupied territories as exempt from the Bill alongside Israel. The Bill goes against not just the widespread consensus held on both sides of the House and by our allies, but international law. What an irony it is that, at the heart of a Bill designed to restrict local councils from speaking out about international issues, we find the Secretary of State for Levelling Up, Housing and Communities trying to conduct his own foreign policy. It is almost as if he has forgotten the purported purpose of his own legislation.

On today of all days, when we have awoken yet again to more violence in the region, it is incredibly depressing that the Government are choosing not to stand up for international law, at a time when there is such hopelessness around the conflict.

In conclusion, I firmly agree that we need to do more on the pressing need to tackle antisemitism. I agree that the BDS movement targeting Israel will not help to achieve peace between Israel and Palestine. If there is a need to beef-up legislation on hate crime or prejudice against protected characteristics, such as race and religion, Liberal Democrats would wholeheartedly support such a move. Local councils should not be singling out one country and holding it to a higher standard than others because of their own prejudice, but closing down debate on international human rights issues will not achieve the stated aim of stamping out antisemitism. The resolution to the problem is not to clamp down on debate on international human rights issues. The Liberal Democrats will oppose the Bill for that reason, and will be voting in favour of the reasoned amendment tabled by those on the Opposition Front Bench.

I urge the Secretary of State to rethink this legislation and work across party lines to resolve issues of prejudice and discrimination by more practical and fair means.