Transatlantic Trade and Investment Partnership

Debate between John Spellar and Andrew Murrison

Thursday 10th December 2015 Commons Chamber

[Mr Spellar]

I am pleased that my hon. Friend wants us to move towards a more rules-based system that will enable us to develop more effectively. Trade has worked in that regard, and I am glad that he concedes that.

A great mythology is being developed around this. When I asked my hon. Friend the Member for Swansea West how many agreements the UK has had that involved ISDS, he was reluctant to reveal that the answer is 94. How many cases have been taken against the UK on that basis? My understanding is two. How many of those cases have been successful? My understanding is none. Mention is made once again of the very long-running Philip Morris so-called case. It is absolutely true that Philip Morris said it was lodging a case. Has it gone anywhere? Has it stopped the Australian Government taking action? Of course it has not. One of the more regularly cited cases is that of Slovakia’s health insurance system. We are often told that a Dutch insurance company managed to secure substantial damages from the Slovakian Government. That is true, because the case was about whether, under the existing contract, it could repatriate its profits to Holland. In a second case, which everybody seems to forget, the Slovakian Government won, and also got costs, because the tribunal held that the company was not empowered to intervene in the democratic processes of a sovereign state.

I particularly take issue with the Government over the fact that while the Leader of the House might talk about left-wing groups campaigning with scare stories, Ministers will not take on the myths so that we can get back to arguing about the issues that my hon. Friend rightly raised. The Government just hide away engaging in the negotiations and will not take these issues on.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

If ISDS has been used so little, and given the concerns that have been expressed by all sorts of groups, particularly in relation to the NHS, why does the right hon. Gentleman think it is so important to have it as part of TTIP, which is an arrangement that, like my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), I would in general strongly support? ISDS appears to be the sticking point for a very large number of people.

[Mr Spellar]

I would strongly hold to that. I am just saying that ISDS is not the great problem that people are claiming. The hon. Gentleman mentions the NHS. The European Commissioner wrote to the former Trade and Investment Minister about the impact of TTIP on the NHS, saying:

“Member States do not have to open public services to competition from private providers, nor do they have to outsource to private providers.”

It is a decision for this Government, and nothing to do with any trade deal. She continued:

“Member States are free to change their policies and bring back outsourced services back into the public sector whenever they choose to do so, in a manner respecting property rights (which in any event are protected under UK law)”.