United Kingdom Internal Market Bill

Jonathan Edwards Excerpts

Tuesday 22nd September 2020 Commons Chamber

[Drew Hendry]

Indeed—I agree. In fact, Professor Dougan has said:

“I do not share UKGov’s apparent assumption that regulatory divergence is inherently problematic and must be strictly controlled, by imposing extensive limits (in effect) on the ability of devolved institutions to make different choices from Westminster”.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

I congratulate the hon. Gentleman on his very carefully crafted amendment 89, which would mean a race to the top as opposed to the race to the bottom that he has alluded to.

[Drew Hendry]

I thank the hon. Gentleman for that. Of course, that is where we all should be aiming—a race to the top. That should be the principle that is being set by elected Members in the Parliaments that they are elected to represent, yet we find here a complete travesty of that.

Devolution has proved that the market can successfully operate across the UK with variations in standards. This Bill’s proposals work against the interests of our high-quality producers and our consumers. As the National Farmers Union of Scotland explained in its submission to the UK Government’s White Paper consultation, the proposals for the UK internal market, in the absence of effective common frameworks, could trigger a race to the bottom. In a Scottish context at the very least, they could force a choice between upholding high standards of production or maintaining the competitiveness of agricultural businesses.

The existing common frameworks were designed to manage cross-UK divergence where EU law and competences intersect. They do not need to be supplemented or undermined. Scottish Environment Link is clear that the UK Government’s plans could

“force Scotland to follow the lowest common denominator, especially where countries negotiating bilateral trade deals with the UK demand lower standards seriously undermining efforts to combat climate change and biodiversity decline.”

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Let us consider the ports regulation as an example of the kind of thing I am talking about. I do not know whether the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) is aware of what went on a couple of years ago in the European Scrutiny Committee and during the European Standing Committee stage on the ports regulation. It is very relevant to this state aid clause. I believe that every port in Europe is publicly owned, whereas every port in the UK, including those in Scotland and Northern Ireland, is owned privately. [Interruption.] They are supported by state aid in the European Union, and the impact on the people I am discussing is so great that every trade union throughout the whole UK and every private employer was against this measure, as were the Government, but there was nothing we could do.

[Jonathan Edwards]

rose—

[Sir William Cash]

Just a moment. This refers back to what I said earlier when the hon. Member for Inverness, Nairn, Badenoch and Strathspey wanted to intervene on me to suggest that somehow or other I was exaggerating the issue, as I am certainly not. The reality is that the EU takes all these decisions behind closed doors; nobody really knows how the authorisations are made; and—surprise, surprise—we could not stop any of those ports regulations, as indeed we could not stop any of the state aids authorisations. That is the essence of it, and he will not be able to explain to the people of Scotland why they will not benefit if the day comes when he gets his way, which I do not think he will, by our ending up removing the state aids from the EU. The people of Scotland would benefit so much by having a system in place that they can deal with on the Floor of the House.

The hon. Gentleman puts forward capable arguments. I notice how he weaves his way round these subjects. That is a compliment, in a way, but it does not alter the fact that the people in Scotland will suffer grievously if they continue to have EU regulatory arrangements inflicted on them. The Bill ensures that they will not. I dare say that the Minister is noting what I am saying—I hope that he is—because it is important to understand the damage that has been done.

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[Sir William Cash]

That is interesting, because the counterpoint to that—the hon. Gentleman would expect me to come back with this—is to ask why on earth the people of Scotland would want to subjugate themselves to the European Union system, which we are escaping from, when it has such deleterious and tragic consequences for so many people and jobs in Scotland, as well as in Wales and England. He argues that Scotland can do this better, but I tell him that the consequences of staying in the European Union would be extremely damaging.

We have made it clear that the laws would continue under the protocol, as we discussed yesterday. I know that from the advice and analysis that we are doing in the European Scrutiny Committee, and the Cabinet Office Minister is coming to see the Committee very soon to discuss all these questions. Given the manner in which the European Union functions—as I have said, behind closed doors and without even a transcript—and with the wholly unelected European Commission making the authorisations, the system is very bad news for Scotland. It will be no substitute for having these things handled in an objective and down-to-earth way by the Minister; I have no doubt that he will ensure that the people of Scotland are looked after properly.

This is a bread-and-butter issue for those who work in our economy. It is about putting food on the table, into the indefinite future, for all voters, whether they are Conservative, Labour, DUP, SNP or others. It is similarly important for those voters’ representatives in this House. If Members vote against the Bill, they will have to explain to every one of their constituents, including those in Labour constituencies—I am not looking at anybody in particular or making a point about that, because we represent the whole country through different political parties—why our economy and voters’ jobs and businesses have continued to be undermined by unfair and discriminatory EU state aid and other uncompetitive lawmaking.

The Bill will ensure, among other things, that the UK escapes unfair discrimination under the EU state aid regime, which I mentioned yesterday in relation to the steel industry. The voters in the red wall know this, as do their parents, including those in coalfield communities. I became vice-chair of the all-party parliamentary group on coalfield communities—this is going back five or 10 years—because I understood, as did many Labour Members from Mansfield and all over the country, how important those communities are. I even got up the other day and spoke in the House about pension arrangements for coalminers. We need to take account of the fact that the state aid rules cause total misery and tragedy, and ultimately the destruction of our coal and steel industries.

[Jonathan Edwards]

As someone who represents two coalmining valleys, I think the hon. Gentleman might be guilty of some historical revisionism. The French, the Germans and the Spanish also went through a similar transition in coalfield communities, but they did it over a number of decades. It was a decision of the British Government to bring a guillotine over the coal industry and decimate it in one go, and that was a Conservative Government.

[Sir William Cash]

I voted against my own Government and nearly defeated them on the question of the closure of pits around Stoke-on-Trent. I actually challenged Arthur Scargill on a platform in Hanley and grabbed the microphone from him. It was recorded by BBC and apparently won an award. The issues to which the hon. Gentleman refers are very important, but I do not agree that this is revisionism at all. It is what happened and I objected to it.

Let us consider state aid. I will give the figures: Germany received as much as £4 billion a year in grants and subsidies, while our coal and coalfields in the United Kingdom were languishing. I know that coal is not popular now in quite the way it was, but none the less the principle is there: the state aid policy discriminated in favour of Germany and France. It is part of the deal: the European Coal and Steel Community, and supranationality—that is what it is all about. Our people in those communities were not compensated by grants and regional aid under various EU schemes and handouts, and they have never forgotten it.

Furthermore, the Court of Auditors reports that we debate in this House, although not on the Floor of the House, which we should, have genuinely never been signed off. Almost never has a Court of Auditors report ever been signed off. The money never got to those who really needed it. That was compounded by a wave of scandals—for example, over milk quotas, backhanders and fraud—all of which has been well documented over the years. The list is endless. In any case, our taxpayers—from the whole United Kingdom—paid for those inadequate grants through our own massive contributions to the EU of up to £18 billion a year and rising. If we do not fully disengage, this is what we—the people of Scotland, too—will be suffering from.

The Bill is therefore about the economic future of our future generations. It is about a new competition law administered on our own terms in our own country by our own courts. It will prevent our professional working voters from being trapped indefinitely in an EU economic satellite run by the unelected European Commission and Council of Ministers. We will have no veto. It will be imposed on us and it is an outrage that that should be the case. That is why the notwithstanding clauses, which I played some part in developing, are a matter of vital national interest and sovereignty. Otherwise, we will continue to be subjected to EU laws on terms and conditions imposed on us by them. The bottom line is that, for the vital national interest of this country, that situation cannot be allowed to continue.

I believe that my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) perhaps understands that a little better as we move forward. Yesterday, I got the impression that although he was very concerned about breaking international law, the reality is that there are circumstances—my exchanges with him yesterday are informative on this point—about which he is now very aware, as are other Members who signed that amendment, which as yet I do not think has been completely disposed of. This is about our sovereignty and our ability to maintain political and economic sovereignty and to save jobs, develop them and create enterprise.

This is not a small matter; this is monumental. It is all very well for the hon. Member for Inverness, Nairn, Badenoch and Strathspey to talk about this in terms of independence, but people will not thank him, and they will not thank the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) or anyone from any other part of the United Kingdom when the truth comes home to roost, which is that the EU will not allow us to compete favourably or at all. Its cardinal principle is to make sure that we cannot compete with it, and that is a reason in itself why we have to stand firm on the whole question of the notwithstanding clauses.

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[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Dame Rosie. I rise to speak on behalf of the Liberal Democrats on parts 1, 2 and 3 of the Bill.

In part 1, which deals with the principles of non-discrimination and mutual recognition of goods, the Secretary of State proposes to award himself the power to vary the statutory requirements included in the mutual recognition principle by statutory instrument. The Bill states that he has only to consult with the relevant Ministers in Scotland, Wales and Northern Ireland, rather than to receive their consent. I put it to the Government that that undermines the ability of the devolved legislatures to set standards for the goods being sold to the citizens in their nations.

[Jonathan Edwards]

I am sorry for interrupting the hon. Lady so early in her speech, but she hits on a key point. There is a world of difference between consulting and consenting. Any respect agenda must be based on the latter as opposed to the former.

[Sarah Olney]

I entirely agree. I was going on to say that the Secretary of State also awards himself the power to vary the statutory requirements in the non-discrimination clause, such as on transportation and inspection of goods or regulation of the markets, in the same way. Is it not the case that, should the Secretary of State find that such requirements no longer suited the needs of English producers, he could change them, to the detriment of Scottish, Welsh or Northern Irish producers, without the express consent of their Governments?

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[Mr Richard Holden (North West Durham) (Con)]

I would like to raise two main points on the clauses that are being discussed today. The first is around how the Bill protects our successful internal market through mutual recognition and non-discrimination. It is crucial to protect that internal market from a short-term race to the bottom and from measures being taken by devolved Administrations or even the UK Government to favour certain parts of the country over others. That is why it is so important that we maintain that internal market.

The second thing I want briefly to talk about is state aid. Without state aid powers coming back to the United Kingdom, as my hon. Friend the Member for Stone (Sir William Cash) said, we will not be able to deliver on the Government’s manifesto commitments on levelling up, which are crucial to areas such as mine. He mentioned extensively the coalfield communities and the former steelmaking communities—places that I represent in the now blue wall in the north-east—and it is crucial that we have state aid powers to enable us to deliver on those commitments.

[Jonathan Edwards]

I thank the hon. Gentleman for his comments on state aid, and I also thank the hon. Member for Stone (Sir William Cash)—I did not realise the Tory party was so in favour of state intervention. However, will the hon. Gentleman square this circle for me? The other big driving force of British Government policy at the moment is international trade deals, and the big ambition is the Trans-Pacific Partnership. That trade deal with the 11 countries in that part of the world has very strict conditions on state aid, so how does the hon. Gentleman square the circle with his argument this afternoon?

[Mr Holden]

The hon. Gentleman might not have recognised where the Conservative party has moved to, but I guarantee that a lot of voters across the country did recognise that, especially when they saw us standing up for them at the general election in the broader sense of wanting to bring powers back to the UK from the EU, which has been particularly restrictive. We are looking for international agreements, and there will be debates. For example, we have just seen what has happened with the Japan free trade deal. There are going to be measures around this, and negotiations are going to take place. It is particularly important that, as we look at these things, they are part of a broader picture. However, state aid will be important in helping to level up certain parts of the country. I am sure that debate will go on over the next few years, and it is one we will need to keep an eye on as we see these trade negotiations going through the House in future years.