(3 years, 8 months ago)
Commons ChamberI just want to clarify one matter. Perhaps the hon. Gentleman can do that. When it comes to sovereignty and the free trade agreements that he and others have referred to, can he give me an educated guess on where Northern Ireland stands with sovereignty? Do we have the same freedom and the same rule of law across the United Kingdom of Great Britain and Northern Ireland, or will Northern Ireland be treated differently?
Provided the treaty itself, and therefore the Act of Parliament that follows from it, maintain the principles I set out in my question to the Secretary of State for Business, Energy and Industrial Strategy yesterday, there is no question as to whether we will be entitled to exercise our sovereignty and to displace European Court jurisdiction and the EU laws, for example—there are many others—on state aid. We will be entitled to do so, but it is a matter of constitutional law and also, as I have explained, international law.
I am afraid that there has been a great deal of assertion that we are so-called potentially in breach of international law, but international law recognises the fact that a country can exercise its sovereign rights to defend its economic interests from a national point of view. In fact, Helmut Schmidt did precisely that in, I think, 1998 over the question of the deutschmark and the dollar. There are many examples, and we have not got time to go into them all today.
I will turn to some of the precedents just to illustrate the fact that it is not such a novel idea somehow or other to use a “notwithstanding” clause or formula, and that applies to all parties, whether that is the Labour party, the coalition, where the Liberal Democrats joined in and voted with us on these matters, or the Conservative party. For example, the Income and Corporation Taxes Act 1988 provides that the parts that diverge from treaty obligations—the language of the section was completely unambiguous—were “notwithstanding anything contrary” to those arrangements set out in the Act. The section was enacted to retaliate against the introduction of unitary tax systems adopted by certain states in the US, most notably in California. I think my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) may know about that.
What I am saying is that such provisions are not exactly unusual. Indeed, in the Finance Act 2013, which was under the coalition, the Liberal Democrats went along with allowing Parliament to effectively write a blank cheque to interfere with international treaties—approximately 130 of them, in fact. That provision is still in force. No one questioned the Chancellor’s right to introduce any such legislation or, indeed, the lawfulness of the work of Her Majesty’s Revenue and Customs, which still relies on it in combating questions relating to such arrangements.
Then there are other precedents. I shall stick to Finance Acts at this juncture as that is what we are dealing with in the context of this particular Bill, which is, of course, a finance Bill. Section 52 of the Finance (No. 2) Act 1945 overrode aspects of the Ireland-UK tax treaty of 1926. I hope I may be allowed a slight smile here, as I look across the Irish sea and consider the position with regard to the Irish Government in relation to the “notwithstanding” clauses, because we actually did this in 1926. The Act was used as an example in a case involving Collco in which the court said that if the statute is unambiguous, its provisions must be followed even if they are contrary to international law. It could not be clearer. The Finance Act 1955 again overrode the Ireland-UK tax treaty. In the Inland Revenue Commissioners v. Collco Dealings, Viscount Simonds said, “The company has no rights under any agreement. Its rights arise from the Act of Parliament, which confirmed the agreement and give it the force of law.”
Section 59 of the Finance Act 2008 excluded UK residents from benefiting from provisions in respect of profits from the trade etc. Then there is the coalition arrangement under the Taxation (International and Other Provisions) Act 2010 where, again, the position was made entirely clear in accordance with the precedents.
Indeed, it is not just the UK, or even a party in the UK, that has been doing this over a period of time in its economic and national interests. An example from 2020 is the European Central Bank’s bond-buying scheme. In May 2020, the German constitutional court sought to override EU law and the Court of Justice, suggesting that the ECB’s public sector purchase programme was unconstitutional. Then there are the bail-outs. Every one of the bail-outs from 2010 to 2015 could justifiably be described as in breach of article 125 of the Treaty on the Functioning of the European Union. I will not read out the details, but I shall give some examples: the first Greek bail-out in 2010; the Irish bail-out in 2010; the Portuguese bail-out, the second Greek bail-out; the Spanish bail-out; the Cypriot bail-out; and the third Greek bail-out in 2015. There are so many examples—whether in the UK, or in relation to other member states, or, indeed, in relation to the EU itself—that have demonstrated that, when it comes to the question of sovereignty and the ability to override treaties, this is done quite often as a matter of course. I am not saying that it is done generally. I am not saying that it happens every week or every day. What I am saying, however, is that it happens and that it happens for good reasons which are directly related to the arguments on sovereignty which I gave at the beginning, and it is not for the unelected House of Lords to tell us. That is why, in this Bill, they would not have been able to do so because of the issue of financial privilege.
I am bringing forward these amendments. I shall decide as we proceed whether I will press them to a vote. I will leave it at that for the moment, because I am more than fascinated to hear the usual Europhile utterings of the right hon. Member for Wolverhampton South East (Mr McFadden) who is about to speak.
(10 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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This is an interesting and important debate. I am chairman of the all-party parliamentary groups on Kenya and on Uganda and, as chairman or secretary of various other all-party groups, I have been much involved in all matters relating to east Africa since the 1980s. I have a strong sense that that part of the world is extremely important both in its own right and in relation not only to the United Kingdom but to the world as a whole. Economically, it is one of the fastest-growing areas in the world and, as with all countries—and I exclude none—there is a process of evolution and a necessity to ensure that justice and fairness prevail.
At the heart of all this lies the question whether domestic matters should be adjudicated by a methodology applicable through international law when the better route could well be to have them dealt with in the country in question. That important issue is illustrated by the fact that in many, many countries in the world—I do not need to set them all out, but Vietnam is a case in point—terrible things happen. There are civil wars. We had a civil war, as did the United States, and there are times when innocent people get caught up. We have a vast range of civil wars going on all over the middle east; it is a very disturbing picture. Not unnaturally, people will attribute blame to individuals who have been involved in the process, but it is an unwise person who makes assumptions about who was responsible for any particular causal event or incident.
One concern is that if the ICC case collapses, and there is every possibility that it might, the credibility, security and safety of the witnesses who have been called come into question. Does the hon. Gentleman share my concern about those independent witnesses who may feel under threat if the case collapses?
I certainly do. There must be a significant review of the methodology that is applied in relation to the ICC process, which can be encapsulated in an expression from Maine’s “Ancient Law” that says that justice is to be found in the interstices of procedure. It sounds grandiloquent, but it is extremely important given the incredible number of events that are taking place. We have to look at not just what is happening in countries such as Syria, where people from both sides commit atrocities all the time, but the motivation for such atrocities and the extent to which they are politically driven. Some would argue that the use of atomic weapons or chemical weapons is a matter where distinctions need to be drawn. It could also be said that all weapons of mass destruction should automatically be regarded as of one kind, which they are not.
In relation to the terrible events that took place in Kenya some years ago, the methodology that was applied in the prosecution and indictment is a matter that requires very careful consideration. There are good grounds, I believe, for taking a step back and looking at the matter again, taking into consideration the evidence and who is responsible for the conduct of the prosecution and the manner in which it is being deployed. It is also extremely important to bear in mind that the most incredible sensitivities will arise, and have arisen, which may lead to the African Union and other individual countries, many of which I am familiar with, withdrawing from the ICC.
There are several issues to be considered. One relates to justice, fairness and the question of procedures and methodology. Another relates to the impact of what is being done in relation to the African Union and individual countries there, and the extent to which they are taking a position, which, to say the least, is radical. Then there is the question whether the matter should really be dealt with in domestic courts. Is there the political impetus to prosecute a Head of State or one or two people when the evidence could as well be addressed in a domestic arena?
I was shadow Attorney-General for several years, and have always had certain reservations, to say the least, about the assumptions that lie behind some human rights trials. I will not enlarge on that, but what I will say is that with the massive number of conflicts and potential conflicts in the middle east—in countries such as Egypt, Libya, Syria and Tunisia—Somalia and elsewhere in Africa, a complete analysis of the whole matter is required. In addition, some of the most significant countries, not only numerically but in terms of power and influence, are not members of the ICC. How can we have a system of justice that is based on differentiation between those countries that are not involved in the process because they have not signed up, and others that are? There are so many interwoven complexities that it makes me seriously wonder about the whole question of justiciability and the methodology that lies at the heart not only of the procedures but of the underlying consequences of the ICC system.
I do not want to say any more, because I want everyone to stand back and ask themselves some central questions. The Minister, for whom I have the highest regard, has a very difficult task here. I have raised the matter with the Foreign Office, both after and in the run-up to elections, because I was concerned about the politicisation of what could be regarded as a matter of domestic legal process. Justice and fairness are key, and how we arrive at that, and whether the ICC can do so in this case and in many others, is a very big question. I will rest my argument there, but I shall continue to pursue such questions, because I believe that fundamental issues arise for not only us, but many other countries.