Transatlantic Trade and Investment Partnership

Debate between Ian Murray and Jim Cunningham

Tuesday 25th February 2014 Commons Chamber

[Ian Murray]

I shall be unpicking some of the arguments during the short time available to me. I think that ISDS is the subject of one of the most important criticisms of this process, and I shall be interested to hear what the Minister has to say.

The TTIP has huge potential. The CBI has rightly described it as a “global economic game changer”. It can create more jobs here in the UK, improve the wages of British workers, and deliver a better deal for our consumers, but only if we get it right. As we have heard, according to some assessments the potential gain to British output is between £4 billion and £10 billion, equating to between 1% and 3% in exports. We must, however, be cautious about the overall figures, as they have been questioned by some leading academics. My right hon. Friend the Member for Wentworth and Dearne has been asking for an area-by-area assessment, and I think that such an assessment would allow Members to sell the deal to their constituents. Perhaps the Minister will reflect on that.

Given that the European Union and the United States account for 40% of global economic output and that their bilateral economic relationship is already the world’s largest, the opportunities are clear for all to see. Between them, they contain more than 800 million consumers, and the TTIP has significant potential for them as well. It is clear from the helpful briefing sent to all Members by Which? that there will be big prizes for them if we can get this right. Opposition Members strongly support the principles behind the negotiations, and hope that their objectives—job creation, better wages, higher standards and consumer benefits—can be realised. That, indeed, should be the focus of all EU activity.

With the fourth round of talks scheduled to take place next month, things are moving rather quickly, but we are worried about the potential for the talks becoming derailed. Legitimate concerns raised by Members in all parts of the House about some aspects are not being taken as seriously as we would like by the Government.

[Mr Jim Cunningham]

My hon. Friend has probably heard some of my colleagues say that the agreement will be all right provided that we have the necessary safeguards, such as employment rights. Multinationals should not be able to overrule an elected Government.

[Ian Murray]

My hon. Friend is absolutely right. I shall deal with some of those issues later in my speech, and I hope that the Minister will address them robustly.

The attempt to build momentum to get the deal through is understandable, given the political realities of the European elections in May, the fact that the European Commission is to be replaced this year and the very small issue of the US presidential election in 2016. Europe and the US are our most important markets. Indeed the US is the UK’s largest export market and the UK economy attracts a significant level of foreign direct investment from across the Atlantic, but we all recognise that more can be done to make it easier to tackle barriers and to improve market access. We hope that the trade agreement will do just that.

Crucially, the benefits of any trade deal must filter down to employees, SMEs and consumers. As my right hon. Friend the Member for Wentworth and Dearne has rightly said, the business case for the TTIP must be more than a case for business. He is absolutely right and in his speech he laid out in a measured way the issues that we should be looking at in assessing any final deal. I want to reflect on the four tests that he set. They are the thread that runs through the entire debate.

The first key test is the ability to deliver jobs and growth, with which I think we would all agree. Indeed, the EU should be focused solely on that issue. Secondly, the deal should be open and accountable. That reflects some of the other issues that have been raised by Labour Members. Thirdly, the aim should be to achieve the highest possible standards in respect of social and environmental concerns, data and wages. Fourthly, the agreement must allow leeway for national Governments to act in their own interests.

Through those four key tests, we will monitor closely the negotiations between the EU and the US, and the UK Government’s input into them. Likewise, we want the benefits that businesses experience to be passed on to consumers, whether through increased choice or reduced prices. It is rather puzzling that we have a Government who extol the virtues of the opportunities that the TTIP brings, yet ironically argue at the same time that we must leave Europe. Frankly, the TTIP is a shot across the bows for Tory Eurosceptics—a gang that the Minister has never been part of, for which he should be commended. The hon. Member for North Dorset (Mr Walter), who is no longer in his place, said clearly that it is in the UK’s interests to stay in the EU. I hope that the Minister will echo that when he responds to the debate. I firmly hope, however, that the UK is in the room for the negotiations and not carping from the room next door. This issue is far too important. That is why Labour will make the hard-headed, patriotic case, founded on the national interest, both for Britain in Europe and for change in Europe. To take up the benefits of an EU-US deal fully, we must be part of the EU.

Let me turn to some of the concerns that right hon. and hon. Friends have raised. First, they raised concerns about the ISDS aspects of the proposals, which have been well publicised and documented. Labour MEP colleagues and our sister parties in the socialists and democrats group in the European Parliament voted to scrap that mechanism, but they have faced an uphill battle in the EU Parliament dominated by Conservatives and a minority of MEPs. Therefore, we will continue to push for the need for effective and necessary transparency to be included in the final deal. As the BIS study conducted by the London School of Economics found, the ISDS would have little or no economic benefit and carries significant political risks. It is welcome, then, that the EU Trade Commissioner has decided to consult on that, which will give stakeholders an important opportunity to raise their concerns and increase the transparency of the deal. My right hon. Friend the Member for Wentworth and Dearne mentioned War on Want, which has rightly campaigned on the matter and I hope that the Minister will be robust in having the ISDS removed from the TTIP negotiations. Can he update the House on his current thinking on that and whether he will press strongly for that to be removed?

Secondly, as my right hon. Friend the Member for Leigh (Andy Burnham) has said, we are clear that the NHS must not be included in any agreement. In fact, all public services should be removed. In the UK, the demands of a 21st-century care system require integration. Markets are not the answer to the delivery of today’s health care. That would deliver something unwelcome in the form of fragmentation. The Government need to be clear on that, as they have sent out mixed messages to date. In response to my parliamentary question on 12 November last year, the Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon), said:

“The Government has not sought to exclude health services from the scope of the Transatlantic Trade and Investment Partnership (TTIP) negotiations.” —[Official Report, 12 November 2013; Vol. 570, c. 598W.]

That is in contrast to the response from Lord Green to the British Medical Association. He has also called for health care to be explicitly ruled out of the negotiations. He said that

“national interests, including those of the NHS, are protected.”

Those statements appear to me to be contradictory. Therefore, can the Minister set the record straight on the Government’s position on the NHS, public services and the negotiations that are ongoing? As I said, those are the areas that could result in the derailing of any agreement. If the Government would rule out the NHS now, we could move forward with more confidence and transparency in the agreement.

I have a couple of additional questions to put to the Minister. First, does he believe that agreement before the end of 2014 is possible or likely? Secondly, what representations have he or his colleagues made to the EU and its consultation on ISDS? Thirdly, what engagement are the Government having with businesses, charities, consumer groups and trade unions on the issue to garner support and involvement? Lastly, what engagement strategy are the Government planning with the public, as it is not difficult to see why organisations such as Which? and War on Want think that this deal is being negotiated in secret?

The size of the prize embodied in the agreement is considerable. It is a prize that must be shared among all—business, employees and consumers—and not just corporate interests. I hope that the Government will be able to respond positively to our concerns. I want to make it clear to the Minister that Labour Members are very much looking to co-operate. However, he should be aware that we will hold him to account and ensure that he does not give negotiators a free rein. I urge him to push for transparency so that the benefits of this major deal are clear for all to see.

Pub Companies

Debate between Ian Murray and Jim Cunningham

Tuesday 21st January 2014 Commons Chamber

[Ian Murray (Edinburgh South) (Lab)]

First, may I welcome the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for Cardiff Central (Jenny Willott), to her post? She has taken over the role from the hon. Member for East Dunbartonshire (Jo Swinson) whom we congratulate on the birth of her son, Andrew, and we pass on our regards to the hon. Member for Chippenham (Duncan Hames), who participated in the early part of this debate.

We have had yet another constructive debate on pub companies and their relationship with their tenants, but I cannot help but feel a significant sense of déjà vu. As my hon. Friend the Member for Chesterfield (Toby Perkins) said in opening the debate, it would not be January without his staying off the alcohol for a month—I could flippantly say that he keeps off paying for it for the other 11 months of the year—and without our having a debate on pubcos. This is the third such Opposition day debate—that is, this Opposition are using our own parliamentary time to continue to raise this important issue and keep the pressure on the Government, stressing that they are doing too little, too late and too slowly.

It is important that we should continue to re-emphasise the contribution that pubs make to our local economies and local communities. Each pub employs an average of 10 people, often young people who find it particularly hard to find work in other sectors. They provide skills in customer service, management and training. My hon. Friend the Member for Huddersfield (Mr Sheerman) is no longer in his place but he talked about training, which allows me to mention the Montpelier group in Edinburgh, which set up its own training academy for people who work in its pubs and restaurants. It deserves great commendation for the work it does on that in Edinburgh.

The role of the licensee is very difficult, as I should know—I was a licensee of a hotel and two licensed premises before becoming an MP. It is the combination of pubcos and decisions by Governments of all political persuasions that has pushed prices up for the consumer, which has subsequently undermined the competitiveness of these organisations and, indeed, other activities. We need to look at what can be done by Government.

[Mr Jim Cunningham]

I hope my hon. Friend will cover the new idea of local people buying their own pubs and setting up community pubs. Some football clubs are doing that as well. What does he think about that as a way forward?

[Ian Murray]

I think it is fantastic that communities are able to bid for pubs. It is happening in Scotland as well, under the Scottish Parliament. Indeed, I have a small vested interest in that, because I am leading a consortium of fans looking to buy Heart of Midlothian football club. Community ownership—or at least having the opportunity to go into community ownership—is the way forward for lots of industries that have a tie to the local community.

The combination of high rents and tied barrelage costs means that a pubco tenant must sell a pint at a price level that allows some reasonable profit margin. That level is well above what non-tied premises can charge, which makes the pubco tenants uncompetitive and pushes up the price for the consumer. As the hon. Member for Tewkesbury (Mr Robertson) mentioned, barrelage costs can be 50% higher in tied premises than in non-tied premises, which can distort the market in terms of how much tied premises need to charge the customer. Add to that an increase in VAT to 20% and we have a cocktail of disaster for the publican.