Transatlantic Trade and Investment Partnership

Jim Cunningham Excerpts

Thursday 15th January 2015 Commons Chamber

[Geraint Davies]

That is very important indeed. I agree with my right hon. Friend. The thorn in the rose is the investor-state dispute settlement—the ISDS. As has been mentioned, this is an opportunity for deals to be struck behind closed doors to empower multinational companies, within a new system of law outside the law with which we govern ourselves, to sue democratically elected Governments for passing laws that protect people.

[Mr Jim Cunningham (Coventry South) (Lab)]

Following on from the point made by my right hon. Friend the Member for Knowsley (Mr Howarth) about public services, is there not another issue we have to careful about: the erosion of employment rights?

[Geraint Davies]

My hon. Friend is completely right. There are people who say there is no risk from ISDS, but there is a lot of evidence and a track record of multinationals using the powers at their disposal to extract money where laws are passed undermining future profit flows. Philip Morris is the obvious example: it is suing Uruguay and Australia for something like $100 million. Lone Pine is suing the Canadian Government for about $250 million, because Quebec wants a moratorium on fracking. Achmea, the Dutch insurer, is suing the Slovakian Government who tried to reverse some of their health privatisations. Argentina has paid more than $1 billion to US and EU energy giants, because it froze energy and water prices. If these powers are available, they will be used to fleece the taxpayer. In my view, they are unnecessary. I accept that some protection may be needed between developed economies and democracies and rogue states, but rogue states are certainly not the United States. Mature democracies and economies, namely the EU and the US, do not need anything more than contract law to protect investors.