United Kingdom Internal Market Bill

Jonathan Edwards Excerpts

Consideration of Lords amendments
Wednesday 16th December 2020 Commons Chamber

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

Before the Minister starts launching the fireworks in celebration of the progress in the Lords yesterday, I would like to remind him that the Welsh Government remain deeply dissatisfied and have announced that they intend taking the UK Government to court over the provisions in the Bill, not least the state aid provisions and the economic intervention proposals. Will he explain how the common frameworks process will work and where power will reside within the common frameworks, because there is a degree of ambiguity about that? Will he also commit the British Government to bringing forward a statement on the common frameworks to the House of Commons for scrutiny in the new year so that we can have a discussion about whether this is actually the best way forward?

[Paul Scully]

Clearly it is disappointing that the Welsh Government have chosen to issue that statement, especially in the light of the productive working relationship that we have enjoyed with their Ministers and officials during the passage of the Bill. I know that the common frameworks have been subject to much debate, and I hope I will be able to clarify this as we go through. There will be more discussion in the new year about the frameworks and how they will work moving forward, because they have been productive in a number of areas to date, and I know that that will continue.

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[Lucy Powell]

The hon. Gentleman knows that that is not the case. That is not what happened in the other place. It is thanks to the Labour leadership in the other place that we have seen improvements to the Bill, and I will say a bit more about that in a minute.

The Bill is now in much better shape than it was. It is far from good, let alone perfect, but it is better. That is thanks to the leadership shown by Labour colleagues in the other place, who built alliances and worked with guile and tenacity to get us to where we are. The Government, by the way, have a majority in the other place; despite that, we managed to inflict a number of Government defeats. As a result, the Government dropped most of part 5, which was the international lawbreaking part of the Bill originally and now upholds the Northern Ireland protocol.

After Labour worked cross-party with colleagues and others to ensure successive Government defeats in the other place, and after several rounds of ping-pong— I have lost count of how many—the Bill has been improved in a number of ways. We have the one-month mechanism for the devolved Administrations’ consent on regulations; the operation of the internal market in the interest of consumers; the consent and involvement of the devolved Administrations on the make-up and operation of the Office for the Internal Market, and the removal and review of the Henry VIII powers.

Today, we welcome the Government’s concessions on common frameworks in response to Lord Hope and Lord Stevenson’s amendments. In particular, amendments to clauses 10 and 17 allow for agreements arising from common frameworks to be excluded from the application of market principles. They also include in the Bill a definition of a common framework agreement, something that we have been seeking from the beginning. We also welcome the amendment to clause 31 that provides for the Competition and Markets Authority and the Office for the Internal Market to include in their five-year reporting details of the interaction between market access principles and common framework agreements, and of the impact of common framework agreements on the operation and development of the internal market.

We have fought long and hard to ensure that the Bill does not undermine devolution, because we believe in devolution. These are important safeguards that really do strengthen the Bill.

[Jonathan Edwards]

The hon. Lady will be aware that, as I alluded to earlier, the Labour Government in Wales are threatening legal action. Is that something that she and the Labour party in Westminster will be supporting?

[Lucy Powell]

I have just been alerted to that. I am not sure of the details at this stage, so it is probably best that I do not comment. However, it is obviously a Labour Administration, and we support them and have worked very closely with them. I thank them for their co-operation with us on the Bill.

Common frameworks will allow different nations in the UK to set their own standards in key areas and to agree minimum standards for all. That is why it was so important to us from the start that there was recognition of common frameworks on the face of the Bill. However, it is still far from ideal, and the Government have been dragged kicking and screaming to these issues only because of the pressure we have applied, working tirelessly in the other place, and I pay tribute again to Lord Hope, Lord Stevenson and Baroness Hayter for all their work on this.

--- Later in debate ---

[Sir William Cash (Stone) (Con)]

I was very taken by the reference the hon. Member for Manchester Central (Lucy Powell) made to improvement. Having looked at the Bill and followed it over the last few weeks, I find it difficult to call it an improvement.

However, I want to pay tribute to the Public Bill Office. Given the amendments, and the contortions the Public Bill Office has had to absorb in looking at the Reasons Committee’s consideration of these issues and at the question of what insistence on disagreement or agreement is at a particular point in time before it comes from one House to the other and goes back again, this has been an incredible exercise in complexity—so much so that it would be asking an awful lot to expect anybody, including the Minister, to be able to claim that they really understand what it is that has ultimately arrived. I was going to ask him if he would like to explain exactly what all this means. We will only find out in due course.

I was looking at the reasons for disagreeing only yesterday, and they were very clear. One said that the Government disagreed with the Lords over the question of legal certainty and disruption to business. Suddenly, almost at the wave of a magic wand, all of that has completely evaporated into thin air, and we have ended up with this extremely contorted, extremely confusing and ambiguous series of statements. However, at the heart of it, there is one point that I want to put to the Minister. Does he recall the famous Schleswig-Holstein question? Only three people comprehended what was going on, or they had originally, but unfortunately one had forgotten, one had died and the other had gone mad. [Interruption.] I am not going to attribute any one of those to the Minister. However, right at the heart of this, a lot of very complicated drafting has been put in to try to salvage some face. As I read it, the Secretary of State can make these regulations but—this goes to the heart of it—that process would be subject to the affirmative resolution under clause 10(2), which is mirrored in clause 17. It strikes me that there is one fundamental question: can the Minister effectively veto matters that have been discussed and consulted on with the devolved Administration? If the regulations are subject to the affirmative resolution, it seems that may well turn out to be the case. Who knows? I do not know at the moment, and only when the process reaches its conclusion will we know whether the reserved powers in the Scotland Act 1998 will bite. I cannot be sure of that. I have a feeling that this may end up in the courts, and perhaps the situation will be made clearer. We are at the end of the line for this Bill, and I regard the whole thing as being difficult to plot in terms of a clear path to any conclusion.

[Jonathan Edwards]

In the 10 years that I have been in this place, I think this is the first time that I have agreed with the hon. Gentleman on a substantial point. The concession last night in the Lords opens up a number of new questions, and there needs to be a well thought out process regarding how the common frameworks will work, where power will reside within the frameworks, and who has the power to create them. I would like a far more consensual approach than we have seen today.

[Sir William Cash]

I am glad to hear that. I am not sure—we cannot be sure—whether these provisions might eventually be declared void for uncertainty, and I am not clear about what they will do in practice. At least, however, we have got to the end of the Bill. I am in favour of the Bill in principle, and that is about all I need to say for the moment. As far as I am concerned, the future lies ahead with uncertainty built into these provisions.