United Kingdom Internal Market Bill

Jonathan Edwards Excerpts

Consideration of Lords amendments
Tuesday 15th December 2020 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

I beg to move,

That this House disagrees with Lords amendments 1F, 1G, 1H, 1K, 1L and 8M.

I am pleased that we continue to make positive progress on the Bill and that both Houses have continued to find agreement on a number of issues. In large part, this is due to colleagues from across both Houses continuing to have constructive and positive discussions with the Government. I want to put on record my thanks to colleagues on the Opposition Benches in this place, and the other place, in particular, for their engagement.

There are still a few outstanding areas, which have gone back and forth between the Houses, and I will outline the Government’s rationale for why we cannot accept the proposals as drafted. I will begin by speaking about the approach to exclusions taken by the Bill, which is a shared point across amendments 1F, 1G, 1H, 1J, 1K, 1L and 8M. I will then address the specifics of the common frameworks amendments and wider market access exclusions.

As I said last week, and as my noble friends Lord Callanan and Lord True said in the other place yesterday, the Government have been clear throughout these debates that we agree that there is a need for an exclusions regime. However, it has to be carefully drafted and provide certainty for business. In drafting the Bill, and clauses 10 and 17 specifically, the Government have designed an exclusions approach that achieves a careful balance. Both the noble and learned Lord Hope and Lord Stevenson have narrowed the scope of their amendments and I thank them both for their continued dialogue with the Government on those. Our assessment remains, however, that the approach in both sets of amendments goes too far both in the breadth of exclusions that it would require the Secretary of State to create and the uncertainty that it would lead to. These amendments would be detrimental to the clarity, simplicity and certainty that the Bill intends to provide.

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

My reading of these amendments is that they are extremely watered down from what we would want. They essentially still give the Westminster Government a veto over the ability of the devolved Governments to legislate within devolved competency, so these are very meagre proposals. In refusing to accept even these proposals, is not the true nature of the Bill revealing itself? It is the British Government’s intention to use the Bill to impose uniformity over Wales and Scotland.

--- Later in debate ---

[Lucy Powell]

We have worked incredibly hard to maintain the devolution settlement through the Bill; that is not something that the hon. and learned Lady’s party want to do. The SNP wants to use measures in the Bill to break up the Union and seek independence in Scotland. That is not something that we agree with. We have tabled amendments and voted on them to ensure that the devolution settlement in this country is respected, and I hope that the Government will continue to talk to us about that.

We welcome the Government concessions so far and are hopeful that with some more good will we can get some more recognition of common frameworks in the Bill in these late stages of ping-pong. The Lords amendments to strengthen the common-frameworks approach and fair access to the market are good ones that we will vote to uphold today. I am grateful to Ministers and Lords colleagues, especially Lord Hope and others, for their continued engagement on this issue, because there is a lot of agreement between us. Ministers are rightly proud of the common frameworks process, which has brought about a number of areas of agreement on standards and market access because it involves the Government working with the devolved Administrations. It is an approach that both Front-Bench teams agree on.

We also agree—unlike the SNP—that the UK Parliament should be the ultimate arbiter of the internal market, and we agree that no one nation should be able to frustrate that process, that all must act in good faith before the UK Parliament intervenes, and that safeguards should be in place to make sure that that is the case. It really feels to me like the Government could move further on this issue, because there is a huge amount of common ground. We need to see in the Bill a recognition of the common frameworks process and the devolution settlement that it represents, which is why I hope and expect that in returning the Bill to the other place today, the Government will introduce some final amendments along those lines. If they do so, they could receive broad support. It did not need to take quite so many iterations and pleas from both Houses, had the Government not taken such a hostile, blunderbuss approach with the Bill in the first place.

[Jonathan Edwards]

Will the hon. Lady give way?

[Lucy Powell]

No, I am afraid I will not; I am finishing.

I sincerely hope that the Government will reflect on that approach in future.

United Kingdom Internal Market Bill

Jonathan Edwards Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Monday 7th December 2020 Commons Chamber

[Paul Scully]

The hon. and learned Lady will note that the document states “where…necessary”. As I said earlier, many of the common frameworks do not relate to the internal market. That was my point exactly.

It is a core point that none of us should wish to see internal barriers to trade erected inside our country to the detriment of jobs and growth. We have been clear in the other place about how we see the common frameworks programme and the market access principles interreacting with this point at the heart of the argument. While common frameworks are jointly owned, the UK’s full internal market regime can only be owned by the UK Government and overseen by the UK Parliament.

The Minister for the Constitution and Devolution, my hon. Friend the Member for Norwich North (Chloe Smith) looks forward to completing the delivery of the common frameworks programme, discussing further with our partners in the devolved Administrations and the devolved legislatures how we can capitalise on working ahead through common frameworks and put these areas of co-operation on a sustainable footing for the longer term to the benefit of citizens and businesses. We welcome the support of right hon. and hon. Members in achieving that, but we have been clear that amendments 1, 19 and 34 are not necessary and have considerable drawbacks. I therefore call on the House to disagree with them.

To speak to Lords amendments 8 to 13, 15, 16 to 18, 30 to 33 and 56, the Government have taken positive steps to reach a compromise position that balances concern about delegated powers with the ability of the Government to act to protect our internal market. The Government have already made significant steps. We have removed the power, which is no longer considered essential, for the operation of flexibility in the internal market system. We have made further changes on transparency and accountability, such as a review mechanism on the use of such powers. In the other place, we tabled amendments to require consultation with the devolved Administrations before the use of key powers, reflecting our previous commitments. However, once consultation is undertaken, the right place for final decisions should be back in Parliament where parliamentarians from all parts of the UK can debate and vote on the proposed use of the powers. The Government are therefore disappointed by the decision in the other place.

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

My understanding is that the Welsh Senedd will vote tomorrow to decline to approve the legislative consent motion for the Bill. Does that not indicate the problem with the British Government’s approach to consent? Consent means nothing without the power of veto.

[Paul Scully]

If the Welsh Assembly decides that way, that will be regrettable—[Interruption.] The Welsh Senedd. It will be regrettable, because it is important that we continue to work together and allow continuity of trade and business between Wales, Welsh businesses and, indeed, the other nations of the UK. That is what Welsh businesses have been asking us for as we have been talking to them. They want certainty, and this Bill will give them certainty.

The Government are disappointed that the other place did not take up our reasonable offer and removed key provisions needed to ensure the operation of the internal market.

--- Later in debate ---

[Edward Miliband]

The right hon. Gentleman and I agree absolutely about the United Kingdom, and I am now going to come on to why I have such fear about this Bill. I fear that it is ignorant and blundering on the most important question about the way in which we share power across the United Kingdom. My fear about that and about the Bill is that it has given those who want to undermine the United Kingdom a further weapon with which to do so. That is why I want to turn to the devolution aspects of the Bill.

I particularly want to put on record my thanks to Lord Hope, former Lord President of the Court of Session and Lord Justice General, for his work on the Bill. The common frameworks are a complex issue, but it is worth spending some time explaining them. The common frameworks process—the Government deserve some credit for this—was established in 2017 to enable us to agree high standards across the United Kingdom and manage any divergence in those standards. The problem with the Bill is that there is no mention of common frameworks. Instead, it provides a blunderbuss principle that the lowest standard in one jurisdiction is the standard for all, with no voice for the devolved nations.

Take the issue of single-use plastics, which is a very concrete example. The Welsh Government want to legislate to ban the use of single-use plastics, but the problem is that the Bill as it stands enables the UK Parliament to simply come along, without discussion and without a voice for the Welsh Government, and legislate to stop them doing that. In a written answer earlier this month, they said very clearly that they believe that they will not be able to make that legislation stick. The Bill in its current form allows the UK Government simply to undercut the powers of the devolved Administrations in key devolved areas, including the use of plastics, other environmental standards, animal welfare and other consumer standards. That is very serious, because the common frameworks are a way in which we can both secure high standards—this is the intention of Lord Hope—and manage divergence when it occurs across the United Kingdom.

[Jonathan Edwards]

The right hon. Gentleman is making a very valid point. Does he agree that the problem with the Bill is that it enables the British Government, through its control of the UK Parliament, to become like a boa constrictor around the devolved Parliaments, restricting their ability to act in the policy fields for which they have responsibility?

[Edward Miliband]

However we describe it, I do not believe that the Bill properly respects the principles of devolution. These are principles that we have developed in a very British way, in a sense, over the past 20 years or so. The principles of devolution are, I think, principles that it is crucial that we uphold. I ask the Minister to think again. He should think again, and should agree to Lord Hope’s amendments, which put the common frameworks into the Bill. It makes no sense that the Governments of the four nations have spent three years working on the common frameworks only for them to make no appearance in the Bill.

Then we have a related issue, which is that in the absence of legislation for the common frameworks—the Minister mentioned this—amendment 12 seeks a wider set of exclusions for market access principles. The reason for that is very simple. In the absence of common frameworks, the market access principles apply with very narrow exclusions—on human, animal and plant health, I think—so if the Government are not willing to agree on the common frameworks, another way forward would be to have broader exclusions that allowed the devolved nations to uphold their powers. This is very important. It is about whether powers that have been devolved over 20 years are effective or ineffective, and whether this Parliament can simply override them without a voice for the devolved nations. These are deeply serious issues, and I think that their importance is recognised by Conservatives such as Lord Dunlop. 

Let us be absolutely clear what will happen if the old version of the Bill is restored and passed into law—this is a sort of prediction, but I am afraid that this is what will happen: this is a recipe for a constitutional punch-up within a very short period of the Bill’s becoming law. Frankly, if that does not happen naturally, it will be provoked by those who wish to have the punch-up. The Government will find themselves accused, rightly, of undermining the devolution settlement, and it would be a disaster for those who believe in the United Kingdom—and I think that includes the Government. The most generous interpretation is that the Government have been cavalier and have blundered into this. [Interruption.] Yes, that may be too generous. I hope that they will put it right.

--- Later in debate ---

[Drew Hendry]

Indeed, it is the UK Government who are seeking to take back control from Scotland, and from Wales, with the Bill, which is a clear and utter power grab.

[Jonathan Edwards]

I am extremely grateful to the hon. Member for his forensic analysis of the British Government’s tactics in relation to the Bill. Essentially, the British Government are hollowing out devolution as the middle ground in the constitutional debate in Wales and Scotland. For the people of Wales and Scotland, the choice becomes independence or direct Westminster rule.

[Drew Hendry]

The hon. Member is absolutely right. It is no surprise that in Scotland we have now had 15 opinion polls in a row that show that a majority of people support independence. That has not happened overnight; that has happened because they have been watching what has been happening here, and have seen the contempt with which Scotland and Wales’s Parliaments have been treated. The result is the growing demand for us to protect our Parliament in that way.

When it comes to devolution, the Tories used to wear a mask to hide their contempt, but the Bill, and recent comments from the Prime Minister and the Leader of the House, have ripped it away once and for all. The Prime Minister recently told his MPs that devolution was a disaster and Tony Blair’s biggest mistake—the latest in a long line of statements that he has made to show his distaste. We all remember him saying that

“a pound spent in Croydon is far more of value to the country…than a pound spent in Strathclyde.”

The Leader of the House has called devolution a failure and is arrogantly dismissing it, while the Scottish social attitudes survey shows that only 7% of the Scottish people do not support devolution. As I have said, the Bill is an orchestrated attempt by this Tory Government to re-centralise powers.

Statutory Paid Bereavement Leave: Loss of Family Member

Jonathan Edwards Excerpts

Monday 30th November 2020 Commons Chamber

[Patricia Gibson]

The hon. Gentleman makes an excellent point, and it is something I will return to in just a moment, if he will permit me.

According to research commissioned by the charity Sue Ryder, a third of employees who experienced a bereavement in the past year did not receive any communication from managers or the leadership of their organisation about bereavement. Only 32% of employees are aware of whether their employer has a bereavement policy, despite the fact that we are in the middle of a global health pandemic, with covid-19 linked to over 56,000 deaths across the UK since the end of March. Of those who felt well supported by their employer after experiencing a bereavement, 60% cited being allowed enough time off and not being pressured to return to work before they were ready as key actions their employer took. This debate is timely, since the global health pandemic—which has touched us all in various ways—has sharply reminded us about the fragility of life, and the profound and cruelly random nature of loss and bereavement.

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

I congratulate the hon. Lady on bringing this issue before the House this evening, and on her work on parental bereavement leave. Does she agree that the real issue we have at the moment is the ambiguity in the law? Essentially, it says that employers must offer a reasonable amount of time for employees to grieve. There are some examples of very good employers—Morrisons, I understand, gives two weeks’ paid leave—and other employers give less time, but it is the ambiguity that creates the problem for employees at the moment.

[Patricia Gibson]

The hon. Gentleman makes an excellent point. It is that ambiguity—that discretion—over something life-changing like a bereavement that is simply unfair. People deserve a level playing field; after all, death is the great leveller.

Across the UK, during this health pandemic, we have experienced bereavement on a distressing scale, and it has touched us all. That is why there has been such public support for the measures to try to control this virus: each of us has lost, or is in fear of losing, a loved one. This has had a significant impact on our workforce, as 7.9 million people in employment—24% of all employees —have experienced a bereavement in the past 12 months. It is estimated that for every death, six people experience intense grief. Taking into account the number of deaths in the UK each year and employment rates, we can say that bereavement causes nearly 2 million working people to suffer from intense grief each year. Such a profoundly life-changing experience brings with it potential long-term consequences for a person’s mental and physical health, and in some cases can trigger mental health conditions such as depression, anxiety and post-traumatic stress disorders, as well as being linked to an increased likelihood of heart attacks, diabetes and increased mortality. The impacts of grief on society are huge, and cannot and must not be left to the discretion of employers to manage in the workplace.

As the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) mentioned, we all know that many employers are supportive and understanding when an employee suffers a close bereavement, but we also know that many employers are not perhaps as supportive as they could be. Sometimes those who are grieving are pressured to return to work when they are still in the midst of the initial shock and trauma of loss. Without any statutory rights for employees to paid bereavement leave, the time and space to grieve for too many people is determined by the good will of their employer. That cannot be right, and it is counterproductive in a number of ways.

Typically, UK employers offer three to five days’ compassionate leave for the death of a close relative, but the discretionary nature of this leave means potentially that thousands of employees are unable to take leave without fearing that it could undermine their job security. In addition, we know that those in less well-paid jobs are far less likely to receive any discretionary time off with pay when they suffer a bereavement or have any compassionate leave at all, and that is grossly unfair. Death is the great leveller in society, so the time and space to grieve without worrying about loss of pay or pressure to return to work too soon should be available to all. Those on low pay are much less able to absorb the losses associated with unpaid leave and the immediate financial burden of bereavement. They are also at greater risk of being dismissed from work for taking time off or not being able to focus on their work due to the fog of grief. All of this increases the pressure and financial stress on employees who are trying their best to cope with the loss of a close family member. There is also some evidence to suggest that those in more challenged socioeconomic circumstances are more likely to experience complicated or persistent grief, because they are likely to face more difficulties accessing appropriate services and information to help them cope with their feelings of loss and grief.

As well as humane and compassionate reasons for statutory bereavement leave, there are also economic reasons for this change. Research commissioned by Sue Ryder shows that grief experienced by employees who have lost a loved one costs the UK economy £23 billion per year and costs the Treasury nearly £8 billion per year. However, these costs could potentially reach as high as £49 billion to the economy and £18 billion to the Treasury. Most of the considerable economic impact arises from grieving employees being unable to work at their normal levels of productivity while they deal with the emotional, practical and financial aspects of coping with the loss of a close relative. That, in turn, leads to a cost to the Treasury in lost tax revenues and the fallout of reliance on NHS support, such as mental health and social care needs that can often follow. So although statutory bereavement leave for all those who lose a close family member will involve costs, this is actually preventive expenditure, as it will lead to a significant saving for the UK economy and the Treasury, a more productive and resilient workforce, and reduced staff absence. Such support will mean less cause to rely on NHS support, or perhaps even social security support, in the case of those employees who drop out of the workforce altogether following a close bereavement. So of course there are costs attached to statutory paid bereavement leave, but there are also significant costs to not doing this. It is in our interests as a society, and it is in the Treasury’s interests, to take full cognisance of the profound, debilitating effect grief can have on those who lose a loved one, and statutory paid bereavement leave is a progressive and enlightened thing for any society to have in place.

When an individual is suffering from grief, it not only has implications and consequences for the individual, although it undoubtedly does, it also has wider societal and economic consequences for all of us. Clearly, there are individuals who are pressured into returning to work before they are ready to do so. It is not in the employer’s interest, and it is not in our economy’s interest, to simply insist on presenteeism in the workplace. Presenteeism has significant impacts on employer revenue, employee income, tax revenues and total gross value added.

Statutory bereavement leave for the loss of a close relative is something that people across the UK support. In fact, 62% of people across the UK believe it is the right thing to do. The current arrangements allowing leave for family emergencies carry no statutory obligation that such leave should be paid—and it very often is not. The Minister will know that, in its consideration of the Parental Bereavement (Leave and Pay) Bill, a Department for Business, Energy and Industrial Strategy impact assessment conceded that there appear

“to be large differences in what is currently offered to employees when they suffer a bereavement with the situation tending to be managed at the discretion of the employer and line managers.”

We can all agree that that is not satisfactory, which is why it is important that we put an end to what the report called the “large differences” between what employees are offered at the discretion of employers and what they should be entitled to.

We need to put bereavement leave for all who lose a close relative or partner on a statutory footing. That can be done if the political will is there to do it, and that political will certainly exists in our society. I suggest to the Minister that the vehicle for doing this could be the employment Bill, since the proposals put forward this evening indirectly relate to some of the Bill’s expected provisions.

I urge the Minister to study these proposals carefully for the sake of the wellbeing of our workforce and our economy. I urge him to support these progressive and compassionate measures, which would give the profound effects of bereavement the statutory recognition they need and deserve. If he were to do so, or to commit that the Government intend to seriously investigate doing so, while we are in the midst of this global health pandemic, that would send a signal that he and the Government are aware that we are all in this together and that we should come through this together. We need to look after each other, and this Parliament and this Government should take the opportunity to lead the way.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

First, I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing a debate on this important issue. I am grateful to her for bringing it to the attention of Parliament.

We have heard today about the impact of bereavement on individuals and their wider families, and about the experience of losing someone whom we love or who has played a special role in our lives. That is deeply upsetting, and I sympathise with anybody who has been in that position. We will all experience bereavement at some point in our lives, but the fact that death is an inevitable part of our experience of life does not detract from the sense of loss that most of us will feel or from the fact that, for some of us, that sense of loss will at times feel overwhelming.

I found the hon. Member’s account particularly poignant because I know she speaks from personal experience. She has spoken with passion and compassion. I am grateful to her for her candour and for raising awareness of this issue and of the impact of stillbirths and baby loss generally on individuals and their wider families, both today and on many other occasions in this Chamber.

All of us have been touched in some way by covid-19, whether as a result losing someone who has played a part in our lives or simply as a result of reading the virus’s mortality rates in the press. I have lost two uncles myself during lockdown, one of whose funeral I could not take part in.

In April this year, as the hon. Member said, we introduced parental bereavement leave and pay for employed parents who lose a child under the age of 18 or who suffer stillbirth from 24 weeks of pregnancy. That new entitlement recognises that the death of a child is particularly tragic. Prior to April, employed parents had a statutory right to take time off work following the birth or adoption of their child, but they did not have a specific right to time off work in the event of their child’s death. Parents who are in that dreadful position are now able to take up to two weeks’ leave in the 56-week period following their child’s death. Where they qualify for pay, parents will receive the lower of 90% of their average weekly earnings or the statutory flat rate, which is currently £151.20 a week. Like all entitlements to paid time off work, the statutory scheme provides a floor, not a ceiling.



The Government are mindful of placing additional burdens on business in the current economic climate, but we strongly encourage employers, as we have heard, to go beyond the statutory minimum if they can afford to. This could involve giving parents additional weeks of leave and pay, or paying them at an earnings-related rate when they are off work on parental bereavement leave.

This debate has raised the question of whether the right to paid leave for parents should be extended to all those who lose a close family member. As we have heard, grief is a very personal experience, which affects different people in different ways. While some people understandably want to take time off work following a bereavement, others may prefer to work through their grief. We believe that individuals are best placed to understand their own specific needs. Employers should, and usually do, respond to these needs in an appropriate and sensitive way, even in the absence of a legal requirement to time off work.

While I of course recognise the pain that can accompany bereavement—as I have mentioned, I am speaking from recent personal experience of this—extending entitlements to bereavement leave and pay would come at a significant cost to the public purse. It would also place additional burdens on business at a time when many employers are struggling to keep their businesses afloat. We cannot ignore this fact, and while we are sympathetic to everyone who has lost a close family member, whether through covid-19 or otherwise, the Government have no plans to extend entitlement to bereavement leave and pay at this time.

I remind hon. Members, however, that employees who want to take time off work are already entitled to take up to 5.6 weeks of annual leave a year. All employees also have a day one right to take time off work to deal with an emergency involving a dependant, and in the case of a bereavement the right to time off for dependants can be used to make necessary practical arrangements, including registering the death and arranging and attending the funeral of the person who has died.

The hon. Lady talked about the cost of bereavement. I am unable to comment on the figures today, but my officials have had an initial meeting with representatives from the Sue Ryder charity, who have agreed to share their analysis with us when the report is finalised.

Grieving is a natural process that we should not attempt to stifle, and most of us are able to cope with our loss with support from our family, friends, colleagues and employer, but I recognise that bereavement is a risk factor for physical and mental health issues. Where a bereavement is particularly debilitating or likely to have a longer-term impact on an individual’s mental or physical health, they have access to our excellent national health service. In May this year the Government announced additional funding of £4.2 million to support mental health charities and charities providing bereavement support. That was part of a £750 million package of support for the voluntary sector announced by the Chancellor in April.

Where a bereavement does affect someone’s mental or physical health, they also have the option of taking sick leave. They may be eligible for statutory sick pay. Clearly, statutory sick leave is a means to an end, but bereavement in itself is not a sickness. Employees can, however, self-certify as sick for the first seven days that they are off work. After that time, a fit note is required and their employer can request medical evidence if they wish. Individuals who are not eligible for statutory sick pay and those who require additional support may be eligible for universal credit and the new-style employment and support allowance.

The hon. Lady talked about covid and its effect on families. I was fortunate enough, at the funeral of one of my uncles, to join close family members to pay my final respects, and indeed to do so for my mother, who died just before lockdown, but not everybody has been fortunate. We talk about the death rates in this country, so this is clearly not just personal to me; tens of thousands of people across the country have been through similar experiences. So I am acutely aware of the fact that covid-19 has robbed so many of us of the opportunity to see our loved ones before they died and to say goodbye in the way we would all want.

No two people’s experiences of a bereavement are the same; we all have our coping strategies. Our experience will, however, to a large extent be influenced by how the people around us respond to us and our loss. As the hon. Lady said, far too many people suffer their loss in silence and this can lead to them feeling isolated and alone. While no one should feel obliged to talk about their personal experiences, they should also not be afraid to do so.

We have given employers the tools they need to approach what might otherwise be a difficult conversation with a bereaved employee. In 2014, the Government commissioned ACAS to provide guidance on managing a bereavement in the workplace. The guidance was developed in conjunction with key stakeholders, including Cruse Bereavement Care, Jack’s Rainbow and other bereavement charities. The guidance has been well received and was updated in 2020 to provide more accessible webpage content for users and to take account of the new right of parental bereavement leave. The guidance can be found on ACAS’s website. Use of the guidance continues to grow and has increased since the start of the pandemic. There was a total of 82,000 visits to the guidance between 1 April and 23 November. ACAS is working on further revisions, including revised case studies to offer more detailed support to employers and employees at this difficult time.

Where an individual loses their spouse or civil partner, they may be eligible for a bereavement support payment. This consists of an initial lump sum payment of £2,500 and up to 18 monthly instalments of £100, with higher amounts being paid to those individuals who have children. The initial payment for individuals who have children is £3,500. Bereavement support payments are intended to meet the additional costs of bereavement rather than providing an ongoing income replacement to bereaved spouses and partners.

As the hon. Member mentioned, the Government will bring forward an employment Bill to implement a range of manifesto and other commitments, and we will publish our detailed proposals for that Bill in due course. While the Government are not minded at this time to introduce a new right to time off work for people who have lost a close relative, we do understand how difficult this can be for people in bereavement.

[Jonathan Edwards]

I thank the Minister for giving way and for the way he has approached the debate. I am slightly disappointed that the Government will not even look at the proposals, because this seems to be a very simple reform. All the Government need to do is define what they mean by “reasonable”. The eligibility criteria are already there. All these different employers have a different idea of what “reasonable” means, so my question would be: what does “reasonable” mean to him as the Minister?

[Paul Scully]

I have been an employer in the past, and the biggest asset of any business is the employees. Any business owner invests time in training and developing people, and they make up the business. In terms of reasonable time, I have talked about the fact that bereavement is different for different people, and I think that they just need to work together with employees. As I said, I am not minded to put it on a statutory footing, but we will continue to work with Members across the House in the employment Bill and with Sue Ryder in understanding their background. I am looking forward to introducing that Bill to this House, when we can talk about a whole range of issues to support employees through the aftermath of this pandemic and put workers’ rights on a long footing beyond now.

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.”

--- Later in debate ---

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.

United Kingdom Internal Market Bill

Jonathan Edwards Excerpts

Tuesday 15th September 2020 Commons Chamber

[Drew Hendry]

The problem with that question is that there is already, as I mentioned at the start of my remarks, a process for dealing with that—the common frameworks. I am saying that the UK Government do not have to take this hammer and smash devolution in order to organise things so that business can co-operate and work across the different nations of the UK, taking cognisance of the choices made by those nations’ individual Parliaments.

I turn to the composition of the Office for the Internal Market, and I would be grateful if the Minister intervened and gave me some answers to these questions. Who are these people? Who will sit down in judgment over the democratically made decisions of the Scottish Parliament? Do we know yet? Do we have any idea? These words from the Prime Minister—he was talking about the EU, of course—are coming back on him, as so many of his outpourings do:

“They may decide that now is the time—even though electorates are already feeling alienated from the political process—to hand sensitive decisions…to unelected bureaucrats.”

But that is what he has decided to do. He has decided to hand these decisions to unelected bureaucrats.

What grace-and-favour appointments will there be to this body? Will any of them have links to the many vested interests that apparently find it so easy to pick up contracts from this Government? The fact that that is something we can only guess at underlines how dangerous this proposal is for Scottish people and communities. We reject the idea of this body of unelected, unknown bureaucrats having power over the Scottish Parliament and the Scottish people.

The SNP has tabled amendments 28, 29 and 30, which are in my name and those of my hon. Friends. Amendment 28 would exempt from the operation of part 4, which deals with independent advice on and monitoring of the UK market, regulatory provisions applying in Scotland that did not apply to the whole of the UK. Via this amendment, the SNP wants Scotland to be removed from part 4 of the Bill, because it undermines devolution.

Decisions made by our elected representatives must be upheld, and this proposal to overrule the Scottish Parliament is a democratic outrage. Let us be clear that we cannot and will not accept this legislation in any form. Under the unelected Dominic Cummings, the Prime Minister is forcing this power grab through, despite overwhelming opposition from Scotland’s Parliament and MPs. It proves that Scotland will never, ever be accepted as an equal partner in the UK. It attacks the foundations of devolution and gives Westminster and an unelected quango a free hand to overrule the Scottish Parliament in devolved areas, threatening our NHS, our food and our environmental standards. It fires the starting pistol on a race to the bottom.

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

I fully agree with amendment 28, which is very well drafted. The same should apply to Wales and Northern Ireland, because it would allay any fears in the respective devolved countries of the UK that the British Government are using the UK Internal Market Bill to torpedo devolution.

[Drew Hendry]

Indeed, and this is a matter that does not just affect Scotland, as the hon. Gentleman said. Even the Labour-run Welsh Government have come out to stand against these measures.

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[Richard Fuller]

I am very grateful for that clarification.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey also said that the Office for the Internal Market was overlaying that process. That is not correct either. It is an advisory body that informs the decisions made by the common frameworks agreement. Perhaps I did not hear him correctly, but on both those points he did not sound precisely on point.

[Jonathan Edwards]

The hon. Gentleman is highlighting the fundamental weakness of the Bill from our perspective. The internal market is a shared asset between the four countries of the UK, but what is missing from the Bill is clear intergovernmental structures to govern it.

[Richard Fuller]

The hon. Gentleman is absolutely right. “So get on with it”, would be my suggestion to him and his colleagues. I have heard several points of strong opposition to the Bill rather than engagement. A more constructive engagement with the UK Government would help everyone, because as he rightly says the internal market is a shared asset between the four component nations of the UK. So I urge him and his party to encourage that work with the UK Government.

On the specific clauses in the Bill, I have a general point to make. We are very keen as politicians to do the new things, set new regulations, but we spend very little time checking whether they work or whether the regulatory body is doing any good or indeed doing what it said it would do in the first place, so it is important to get a bit more precision from the Government in some of the words they use in the Bill.

Clause 29 talks about the reports—the Minister may be able to help—the Competition and Markets Authority must prepare or report on. Clause 29(5)(b) states:

“developments as to the effectiveness of the operation of that market.”

The word “effectiveness” can have lots of different meanings to lots of different people. What remit are we giving to the Office for the Internal Market on how it will judge the definition of an effective operation of the market? Does it, for example, include whether the operation of the market continues to have the consent of all constituent devolved Administrations of the United Kingdom? Does it mean that the country has an adequate spread of production across the country? Does it mean that each market is promoting competition? Does it mean that prices are going down? The word “effectiveness” covers a lot of issues.

That issue also relates to clause 29(8), which states:

“So far as a report under this section is concerned with the effective operation of the internal market in the United Kingdom, the report may consider (among other things)—…(i) competition, (ii) access to goods and services, (iii) volumes of trade”.

I would say that that is a partial list. There may be other aspects that we would wish the Office for the Internal Market to look into when it considers the operation of the internal market, some of which I have mentioned. For example, is the Minister considering, or would he consider, that that should include the impact of the internal market on consumer rights? Should it include regional disparities? Most importantly, should it include innovation and competition?

Clause 30(3)(a) talks about advising on proposed regulatory provisions on request. This is an important issue relating to the points raised by the hon. Member for Inverness, Nairn, Badenoch and Strathspey, which is not only on the decision authorities but the scope for devolved Administrations to raise issues with the Office for the Internal Market. Clause 30(3) states:

“The condition is that it appears to the requesting authority that—

(a) the regulatory provision to which the proposal relates would fall within the scope of this Part and be within relevant legislative competence, and

(b) the proposal should be further considered in the light of the significance of its potential effects on the operation of the internal market in the United Kingdom.”

It seems to me, particularly in light of the desire of devolved Administrations to have some potential for innovations in regulations such as minimum alcohol pricing, that that “and” might be better considered as an “or”. It would be feasible for devolved Administrations to raise issues which may be outside the scope of their current remit of responsibilities, but for which the devolved Administrations, elected by their local voters, wish to see as a potential regulatory change in the future. What is the harm that could be caused by enabling that to be considered by the Office for the Internal Market?

The hon. Member for North East Fife (Wendy Chamberlain) tabled amendment 21 to clause 35, which relates to participation in the Competition and Markets Authority. Obviously, she may wish to speak to her amendment directly, but I draw the attention of the Minister to the issue of participation in the CMA. It is a relevant question to ask who will be on those bodies. We put the so-called great and the good on such regulators, but we do not really know who they are. What oversight do we have of their performance? What oversight and decision rights do we have of appointments? Would it not be a consideration to spread that beyond this Parliament to include devolved Administrations? I urge my hon. Friend the Minister to look carefully at the amendment tabled by the hon. Lady, as well as her new clause 4.

I welcome the Bill. As the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) mentioned, the internal market is a shared asset and we all want it to work effectively. The Bill is a very good start in making us move in the right direction, but we need some prudence in its implementation. I am very grateful to the Minister of State, Cabinet Office, my hon. Friend the Member for Norwich North (Chloe Smith) for her intervention to clarify some points on where we stand in relation to the common framework.

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[Julie Marson (Hertford and Stortford) (Con)]

It is a pleasure to serve under your chairmanship, Sir Graham

This is a good Bill, and a necessary Bill. It will protect the integrity of the United Kingdom and our internal market as we leave the European Union. In our considerations on part 4, the description we heard earlier of our internal market as a shared asset is very apposite. Part 4 provides an important part of the framework that will allow us to uphold our obligation under the Articles of Union, which state clearly that all parts of the United Kingdom should be on the same footing in respect of trade and navigation and in all treaties with foreign powers. The United Kingdom is built upon a commitment to free trade between our four nations, and prosperity and peace are built on such trade and partnerships. The European Union, for all its faults and all its deviation from its original vision, was founded on that principle and purpose: to preserve peace through trade.

I speak, therefore, in support of an unamended Bill and unamended part 4 in its entirety. Clause 28 to 39 give us an independent advisory office for the internal market under the auspices of the Competition and Markets Authority that will act purely for the benefit of the UK and each of its nations. This replacement of EU legislation will see practical powers brought back to our devolved Parliaments to help regulate the strength and progress of our internal market and ensure a smooth transition for businesses away from the European Union. The Office for the Internal Market will strengthen the internal market’s might and efficient operation and enable real-time and considered advice to the Government to help direct their route forward.

As a one nation Conservative, I believe that global Britain itself begins with one nation—it begins at home between all four parts of the Union—and the Bill will set us up for that mission by reinforcing the United Kingdom and its internal market. We need these provisions to protect, strengthen and monitor the internal market and to make safe the Union and the businesses and jobs within it, and to protect our sovereignty and that of future generations; and we need them to become that outward looking and strong global nation that this Government and I want us to be and which the might of our internal market demands.

The Bill is a demonstration of the UK’s preparedness to manage our markets abroad and at home. It will ensure unfettered trade across the UK and avoid new burdens and barriers being put on us unreasonably. As we begin our recovery from the covid-19 crisis, these two implications of the Bill could not be more important. Businesses in my constituency rely on seamless trade across our four nations and further afield. While the Government can enable growth, they cannot create it. Throughout the crisis, we have relied on frontline heroes, in the NHS, schools, shops, and elsewhere, to get us through, but in this next stage of the recovery, it will be the wealth creators, business people and entrepreneurs who take us forward, but they need a secure, dynamic, investable playing field from which to operate. That is what these clause provide: the framework in which to grow, the springboard from which to flourish, and the rules to operate within.

I will finish by stressing our obligation to uphold the internal market and ensure that our sovereignty as one nation is secured.

[Jonathan Edwards]

Will the hon. Member give way?

[Julie Marson]

No, I will not give way. We have heard so many canards in the Chamber this afternoon, it is beginning to resemble a duck pond, so I will press on to the end.

We have acted in good faith throughout these negotiations and for many of us too many concessions have been made in the name of good politics and friendship, but a reliance on friendship and good faith is not, it seems, assured, so the Government are right to act to provide a safety net. The potential implications of not doing so are too severe to ignore. The easy choice is to hope; the right choice is to prepare, and that is exactly what the provisions in the Bill set out to do.

They will prepare the UK’s internal market for the next stage of our journey and give businesses confidence in, and understanding of, our business and economic ecosystem. By voting for the Bill in its entirety, including these clauses, we are fulfilling our obligations to protect the integrity of our internal market, our United Kingdom. We simply cannot risk the integrity and functionality of the internal market itself. For those reasons, I will be supporting the Government’s clauses and encourage other hon. Members to do the same.

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[Paul Bristow]

I absolutely agree with the businessman in my hon. Friend’s constituency. I think it is the Federation of Small Businesses in Wales that has said that ensuring stability in the UK market is vital. What businesses in Peterborough want to hear is that they can trade freely across these islands. It is an economic argument, not a political argument, which is what many of the amendments tabled by the nationalists are. It seems ridiculous to have to say this, but the vast majority of business-to-business traders in the UK are selling to, and buying from, other businesses within the UK. The Scottish economy and Scottish jobs rely on UK-wide trade. The Welsh economy and the Welsh jobs rely on UK-wide trade. The Northern Irish economy and Northern Ireland jobs rely on UK-wide trade and, of course, the English economy and English jobs rely on UK-wide trade. The Office for the Internal Market is not there to lecture the devolved Administrations. Let me repeat the point that I made earlier: if the SNP had its way, it would hand the powers of the proposed OIM straight back to Brussels.

The nationalists are okay with quangos, just as long as they are European Union quangos and not British quangos. Let us be clear: as my hon. Friend the Member for Rother Valley (Alexander Stafford) said earlier, the Scottish Retail Consortium has said:

“Scottish consumers and our economy as a whole benefit enormously from the UK’s largely unfettered internal single market”.

That is what is at stake. Would amendments 28 and 29 make the Scottish economy or Scottish jobs healthier? They would not, which is why we need to reject them.

The Office for the Internal Market is there to achieve the things I have described; it is not some sort of power grab. It will advise all four Governments of the United Kingdom, including the United Kingdom Government, as equals. As was said earlier, the internal market is a shared asset of all four nations. All four Governments need to be advised equally. If the internal market is a shared asset, we want it to work well.

New clause 4, tabled by the hon. Member for North East Fife (Wendy Chamberlain), would require that Scottish, Welsh and Northern Irish Ministers have a say on who will advise them. I urge Ministers to give that due consideration and listen to those arguments, because if they do, we can avoid some of the politics that surround the argument. It does not matter how many manufactured grievances there are from the Scottish nationalists; we can avoid some of the politics and just get on with it and vote the Bill through unamended.

[Jonathan Edwards]

The hon. Gentleman is making some points on which we might be able to agree. The issue at hand is who sets the rules for the new UK internal market. Does he agree that the four Governments should play an equal role in setting the rules? Or does he believe that it is a matter for Westminster alone? That is the fundamental issue at hand.

[Paul Bristow]

I have heard the arguments, as have Ministers, I am sure. Points have been made about the internal market being a shared asset; having clear input from the devolved Administrations on who is appointed to the Office for the Internal Market would be an inherently good thing. I am sure that Ministers have heard those arguments, and if they have been heard, we can go ahead with the Bill unamended and just get on with it.

The CBI has said that protecting the internal market is essential and, as I said earlier, the Federation of Small Businesses in Wales has said that ensuring stability in the UK market is vital. Let us not mess around with the most successful internal market in the world, which has worked well for centuries; let us reject the amendments and vote for the Bill unamended.

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[Jonathan Edwards]

I agree with the vast majority of new clause 2, but this is the one point that really worries me, because it indicates that Westminster will have supremacy over Wales, Scotland and Northern Ireland. Am I right in interpreting the end of the new clause in that manner? Surely the hon. Lady’s colleagues in Wales will be very concerned about any proposal that means that the Westminster Parliament will have supremacy over the Welsh Parliament.

[Lucy Powell]

This might be where we differ, as I was going to come on to say, because we believe that the ultimate arbiter of the UK internal market would need to be the UK Parliament. Our amendments seek to ensure that negotiations through common frameworks are conducted in good faith and given proper time and that this would need to come back to the UK Parliament in primary legislation, rather than secondary legislation, as is proposed.

Labour supports the need for some kind of independent body to arbitrate the effectiveness of the internal market. However, we want to ensure that this body is fully accountable to the views of England, Northern Ireland, Scotland and Wales and, crucially, has proper teeth to be able to do what it needs to do. New clause 3 would therefore place a legal obligation on the CMA to monitor, to report and, most importantly, to consult with the devolved Administrations when discharging its new and enhanced duties.

I turn to the amendments tabled by the Scottish national party. While I agree with much of what the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) said, it appears from the amendments that the SNP does not want a functioning internal market; it wants to frustrate one. I am afraid that some of its amendments would, in essence, give a veto to the Scottish Parliament of the internal UK single market. We cannot support that. We believe that the UK Parliament has to be the final arbiter of a functioning internal market because we believe in the UK, and the SNP does not. Its amendments would clog up the process and effectively offer one Parliament a veto.

As MPs, we have a responsibility and a duty to protect the interests of this country. The rule of law and the safety and security of our nation should be paramount. For the Conservative and Unionist party—let us remind ourselves of that name—to propose legislation that breaks the law and threatens the Union by putting rocket boosters under those campaigning for independence is near unthinkable. We hope that Ministers will accept our amendments to strengthen the Bill and to respect devolution as it stands and that they will table amendments at the next stage to strengthen the Bill further, so that we can keep our Union intact, get Brexit done, get the deal that this country was offered and move on.

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[Paul Scully]

I take the hon. Gentleman’s point, but prior to his contribution, other Members did raise the point about how these people were being recruited and for what reasons.

This measure means that each devolved Administration will be fully and equally involved in the oversight of the UK internal market. It minimises the need to seek court action, thus ensuring the continued smooth operation of the UK internal market that businesses crave. The provisions set out in the Bill provide broad oversight on an equal basis for all Administrations. The new Office for the Internal Market will be able to provide non-binding, expert reporting, technical monitoring, regulations and proposals, which will provide robust evidence on the actual or potential impact of regulatory measures, thus ensuring enhanced transparency and accountability for decision making across all the Administrations, including the UK Government acting on behalf of England. It is important that by doing this, the Office for the Internal Market will add an extra economic impact assessment that could otherwise just boil down to a political debate, which would not provide the consistency and coherence that businesses are seeking at this time.

I turn now to the amendments, starting with amendment 28 to clause 28. The clause is important because it defines those regulatory provisions on which the CMA will report and advise. This will ensure certainty and transparency for Administrations, businesses and the general public. Regulatory provisions are in scope if they set requirements for the purposes of mutual recognition and non-discrimination principles in the Bill for the sale of goods and equivalent services, as well as recognition of professional qualifications, and if they apply to one or more nations but not the whole of the UK.

As we have heard, amendment 28 seeks to exclude Scotland from the benefits of the new Office for the Internal Market. It would carve out regulation that applies only in Scotland from the definition of regulatory provisions across this part of the Bill, which basically means that the Scottish Government could not proactively request advice and its regulatory measures could not be included in the regular monitoring of impacts and trends in the UK internal market. If the functions of the new Office for the Internal Market applied asymmetrically, as is suggested, its work would be severely undermined from the outset.

Full UK-wide coverage and relationships with all four Administrations will be vital in gaining and maintaining the confidence of stakeholders, so I strongly question how the office could effectively fulfil the functions given to it by the Bill if it cannot assess impacts across the UK internal market as a whole. Parity is a central principle in how the office for the internal market will conduct its affairs. It will be of service to all four nations of the UK, but in turn it will legitimately expect to consider the impacts of regulatory measures across all four Administrations. The clause empowers the Scottish and Welsh Parliaments, as well as the devolved Administrations.

Equally, the amendment would deny Scottish Government policy makers an important support system for the development of regulation following the transition period. The expertise and analysis of the Office for the Internal Market, offered to all Administrations equally, should not be rejected in this way. Finally and most importantly, since this provision plays a key part in ensuring there are no trade barriers, businesses across the UK would suffer.

To ensure the ongoing smooth operation of the UK internal market, clause 29 will ensure that emerging trends and developments in the market are independently reviewed by the CMA. The CMA has a strong reputation for independence and impartiality, which the Government have striven to preserve in setting out the functions of the office for the internal market. The UK Government have no role in what I have described: the function of the office in reporting to this House, the other place and devolved legislatures, discussing such topics as intra-UK competition, free access to goods and services, and the impact of diverging regulatory conditions in different parts of the UK.

My hon. Friend the Member for North East Bedfordshire (Richard Fuller) raised other areas that the office could look into. It is important to know that the list is not exclusive; there are other areas, and the CMA has a great track record in championing the consumer, so the consumer point he raised is covered.

I said that there was no role for the UK Government in what I have just described. Truly independent scrutiny is crucial if anyone is to have faith in the office’s pronouncements on the health of the UK internal market, especially our business community at a time when those same businesses find themselves stretched thin by the impact of the coronavirus.

[Jonathan Edwards]

If the office for the internal market writes a report that says, for instance, that a regulation passed by the Northern Irish Assembly—if it was functioning—was contrary to the principles of the Bill, would there be legal recourse if a company was affected by that policy?

[Paul Scully]

As I say, the office will put forward non-binding reports to each devolved Parliament, but then there are the existing provisions for working intergovernmentally. We also have the common frameworks arrangement, as has been described, which has already provided good collaboration and co-operation, which I will come back to in a second. Ultimately, yes, the courts are there as a last resort, but if we have the inter- governmental relationships and build on those, as trusted partners, we will not have to resort to that.



The hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey) said that minimum alcohol pricing, procurement, health and tuition fees would be undermined or constrained by the OIM’s functions. That is just not true. None of the clauses set out in part 4 precludes the devolved Administrations from introducing policies in any of those areas. The OIM will not be empowered to bind Administrations or veto regulations. It will only be concerned with assessing the economic impact of regulation, never its merit.

When not acting at the request of an Administration for reporting or advice, the OIN would only ever be concerned with monitoring the health of the UK’s internal market, such as the flow of trade, the impact of regulations on intra-UK competition and investment, or the ready availability of goods and services for all our citizens. The CMA, which the OIM will be established within, already operates at a strict arm’s length from the Government and all devolved Administrations. It has built up a wealth of expertise and experience, and has a global reputation for promoting competition. That is why it is a natural fit. As my hon. Friend the Member for Stone mentioned, the Bill clearly sets out that the OIM would be required to provide access to its reports and advice to all four Administrations on an equal basis, enhancing transparency and accountability.

Commission on Justice in Wales

Jonathan Edwards Excerpts

Wednesday 22nd January 2020 Westminster Hall

[Liz Saville Roberts]

I agree with the hon. Gentleman. There is a sense that we can learn from and compare with the other nations within the United Kingdom, if we have the information and the means to act upon that. That is invaluable for each of those nations.

In the last 21 years of devolution, the power of our National Assembly has expanded and its confidence as an institution has grown. Now, in 2020, Welsh Government policy made in that Assembly has a greater impact on the lives of the people of Wales than ever before, yet extraordinarily my country still operates without a corresponding legal jurisdiction, despite having a full law-making legislature, its own Parliament, the Senedd.

In the broader sense, that means that while devolution divergence is expanding Wales-specific legislation, it is being enacted without the underpinning structures of jurisdiction. That creates a jagged edge, duplication, a lack of accountability, additional costs to the citizen without transparency, and confusion. As the commission’s report says, the people of Wales both need and deserve a better system. Justice is not an island; it should be truly integrated into policies for a just, fair and prosperous Wales.

I hear myself using these abstract words, but of course justice is not an abstract concept; it is put into action or it does not exist. It is put into action through a range of agencies—education, social services, health and housing—all of which are devolved to the Senedd. Does that matter? Yes, it does. Bingham’s first rule of law is that the law must be accessible and, so far as possible, intelligible, clear and predictable. That simply is not the case in Wales in the 21st century.

The commission’s report is comprehensive, but today I intend to concentrate on three areas: criminal justice, family justice and legal aid. There are not many other areas that are worthy of more attention, but I urge that we have further discussion, because this problem will continue to be exacerbated. It is serious, given people’s experience in Wales.

On criminal justice, the report states:

“If criminal justice is to be effective, most particularly its treatment of victims, in policing and in the administration of the sentences of the courts (the principal role of the prison and probation services), it must be closely integrated with services which are the responsibility of other parts of local, devolved and central government—for example, health, drug and alcohol misuse, housing, education, employment, accessing benefits and managing debt and other welfare services.”

That, again, is the jagged cutting edge of justice. Whether a criminal reoffends or not is, of course, that individual’s responsibility, but that does not absolve the state of any responsibility as the provider of justice. If the state’s criminal justice system has contributed to the breakdown of family bonds, the release into homelessness, a failure to grasp the opportunity to address health issues such as addiction, and the likelihood of unemployment implicit in the toxic combination of low skills and a criminal record, what has it achieved, save to tighten the vicious circle of criminality?

I want to mention the case of Conner Marshall, whose inquest concluded last week. I pay my respects to Conner’s parents, Nadine and Richard, for their courage and perseverance in seeking justice for their son, and to my colleague and friend, the late and dearly missed Harry Fletcher, who supported the family in their search for answers. Conner was only 18 when he was murdered by a violent serial offender released on licence and on the books of community rehabilitation company Working Links.

Last Friday, the coroner in the inquest into Conner’s murder said that the probation caseworker of Braddon, the offender, was “overwhelmed” and

“essentially left to her own devices”

in what is an extremely challenging job at the best of times. Conner’s murderer had missed eight probation appointments, six of which were sufficient to return him to prison. The coroner—this is important—noted that that was not the fault of the probation officer. She had a case load of 60 offenders and was new in her post. Rather, Conner’s death was the collateral result of a failed social experiment—an ideological concept put into action by a Conservative Secretary of State for Justice in the belief that the profit motive of private enterprise can be trusted with a public good. Who would ever suspect that private companies might interpret contractual payment targets to reduce criminal acts by the simple means of seeing, hearing and recording no such acts? Clearly not the right hon. Member for Epsom and Ewell (Chris Grayling). It is to the credit of the former Secretary of State for Justice, David Gauke, that he recognised the abject and costly failure of the transforming rehabilitation programme, and that Wales led the way in bringing probation back into public control with the new National Probation Service of Wales.

The case of Conner Marshall revealed how difficult it was for his family to get to the root of the circumstances leading up to and following their son’s tragic death, but the lack of hard data about the crime and offenders in Wales, disaggregated from the wider England-and-Wales picture, was also an issue for the commission. The crime survey for England and Wales warns that separate estimates for Wales are subject to sampling volatility and variability, and that extreme caution should be taken in interpreting figures under the present reporting arrangements when trying to extract Wales-specific data. I am glad to note, however, that CSEW intends to produce Wales-specific estimates for the first time this summer.

Additionally, it is distressing to note that the then Secretary of State for Wales effectively enforced a veto by insisting that all requests from the commission to UK Ministers and entities had to be passed by him. That caused a significant delay to the commission in receiving evidence, which the commission itself expressed. Indeed, in May 2019 he said that he

“did not think it would be appropriate for UK Government Ministers or officials to give evidence on reserved policy to a Commission established by a devolved administration.”

Such high-handedness does not engender confidence that the needs of the citizens of Wales were foremost in his mind.

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

My right hon. Friend is making a fantastic speech and a very persuasive case, based on the commission’s evidence. Do the UK Government’s heavy-handed dealings in relation to the commission’s work indicate that their objection to devolving these powers is based not on practicality but on ideology?

--- Later in debate ---

[Chris Bryant (Rhondda) (Lab)]

I will keep my comments short because there is not a great deal of time. I congratulate the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) on securing the debate. I could hotly dispute every comment she made about the history of a thousand years ago, but we will have to reserve that for some other time as now is not the moment.

When there is a proposal such as the one we are debating, there is a fundamental question, which would make a significant difference, that we always must ask ourselves: is there a problem that needs fixing? I think all of us on the Labour Benches would argue that there is a problem in the delivery of justice in Wales, not least the dramatic changes to legal aid funding in Wales. Of course, the same is true across the whole of the United Kingdom, and we have all been angered by it. We have seen people unable to secure justice for themselves. It feels as if there is one law in the land for the rich and another for those who cannot afford to pay for expensive lawyers.

Many of us would say that it would be very difficult for a constituent who ends up in prison to have to serve most of their time a long way from home. It makes it far more difficult for them to return to their community and to get the support they need not to go back to a life of crime. There is clear evidence that that is the case.

There is less access to justice now because many of the courts have closed—certainly, that is true in the Rhondda. The evidence is that more people are refusing to turn up for court hearings, and consequently justice is not being well served.

There are problems with probation. I do not need to go into the nonsense of the privatisation of the probation service at length. Everyone knows that the Opposition parties were all opposed to that. I visited Cardiff prison and I know there are still significant problems with overcrowding. The staff are trying to do a good job, but they simply do not have enough personnel. My hon. Friend the Member for Torfaen (Nick Thomas-Symonds) rightly said that there has been a dramatic—40%—cut in the Ministry of Justice’s budget, which has had very clear effects on the delivery of justice to my constituents and to everyone in Wales.

My question in relation to the proposal on the table is: does devolution solve any of those problems? I am afraid it does not. If anything, I am terrified that the Government might bite off the right hon. Lady’s hand and say, “Yes, devolve it,” because I know what happens. They devolve the power and the responsibility so that they can devolve the blame when the service is not delivered properly, because they do not devolve the right amount of funding to go with it. I agree that legal aid is underfunded in Wales, but if it is devolved to Wales and no additional funds are provided, Wales will have to find those additional funds somewhere else. That will be the health budget, the education budget or the local authority budget. I am not in favour of that.

I argue here in Westminster that we should fund legal aid properly, and that we should ensure there are proper facilities across the whole of the country so that people do not have to serve their time in prison a long way from home.

[Jonathan Edwards]

The hon. Gentleman has long-standing views on these issues, but he knows that the devolving of public policy and the funding that comes with it is determined by the Barnett formula and Barnett consequentials. If policing were devolved to Wales, as it is in Scotland and Northern Ireland, there would be a £20 million per annum bonanza for the Welsh Government to invest in safer communities. Surely, that is a good thing.

[Chris Bryant]

Actually, the police settlement figures that are out today make it pretty clear that that would not do Wales any favours. We would simply be robbing the police budget to pay for the legal aid budget. I am not sure that solves the problem.

The hon. Gentleman says that my historical views are well known, but I am not sure that he does know my views on this subject, because I have tried to keep them to myself. To be honest, I am agnostic about the devolution of justice and policing, but I am not prepared to have the Welsh Assembly take responsibility for an area of policy if the money does not go with it. That would be cutting off your nose to spite your face.

Shared Prosperity Fund

Jonathan Edwards Excerpts

Tuesday 14th May 2019 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Barnsley Central (Dan Jarvis) on securing this important debate.

The communities I serve are among the poorest parts of the European Union. According to Eurostat, we have a GDP ratio of only 68% of the EU average, whereas the corresponding figure down here in London—the richest part of the European Union by a country mile—is 614%. There are several reasons for that grotesque difference, but British Government policy is a key factor. Public spending per head in London is higher than it is in Wales, while infrastructure spending in London dwarfs the crumbs offered to my country. The trickle-down economics pursued by successive British Governments has failed the communities I serve.

Wales is not alone. Nine of the 10 poorest parts of northern Europe are within the British state. Every single nation and region within the British state, apart from London and the south-east of England, runs a deficit to the UK Treasury. The UK has a chronic under-productivity problem, as many hon. Members have already said. The easiest way to tackle that would be to target investment at the poorest parts of the British state.

My county of Carmarthenshire has hugely benefited from European structural funds. During the 2014-2020 programme, EU funds have so far assisted 611 enterprises, created 130 enterprises, generated 884 jobs, supported 877 people into work and helped 3,557 people to gain qualifications. Of all the nations and regions in the British state, west Wales and the valleys has the most to lose.

In the absence of any commitment from the British Government, Plaid Cymru has produced its own model for post-EU regional funding. Our approach is based on a few simple principles. First, we should receive not a penny less than what would have been available through future funding, as the people of Wales were promised during the referendum campaign. Secondly, decisions about Welsh funding should be made in Wales. A power grab of any nature that undermines the Welsh constitution will be met with fury. I hope the British Government are alive to the problems that they are brewing for themselves in my country.

Thirdly, the new framework must be ready to take over seamlessly from the end of EU structural funds. Fourthly, funds should be pre-allocated and not subjected to a competitive bidding process, which would inevitably mean that the poorest parts of the British state lose out. Finally, we believe that the programme funding in Wales should continue to meet the goals of European structural funds, including streams relating to employability and economic development.

Govia Thameslink/Rail Electrification

Jonathan Edwards Excerpts

Tuesday 3rd July 2018 Commons Chamber

[Joseph Johnson]

My hon. Friend refers to the Secretary of State’s strategic vision for rail, published last November, which seeks more integration between train operating companies and Network Rail to ensure less buck passing and less of the blame game in the future. A foretaste of how that will work can be seen in the new west coast partnership and the east coast partnership publications.

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

The Campaign to Electrify Britain’s Railway has calculated that the cost of electrifying the main line between Swansea and Cardiff at today’s prices is only £150 million, which is considerably cheaper than the Department’s estimation. Electrification has been rolled out across Europe, and indeed in Scotland, at a cost of about £1 million per mile, while High Speed 2 will cost more than £400 million. Will the Minister look again at the CEBR figures and finish the job of electrifying the main line all the way to the west of my country?

[Joseph Johnson]

Our focus in the Department is on securing the greatest passenger benefits in a tax-efficient and value-for-money way. It was found that electrifying the route between Cardiff and Swansea would provide poor value for money and little by way of incremental time savings to passengers. It would not bring the significant journey time savings we would expect for such an expenditure and would result in significant disruption for passengers on the line.

Draft Welsh Ministers (Transfer Of Functions) (Railways) Order 2018

Jonathan Edwards Excerpts

Monday 23rd April 2018 General Committees

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Davies. Today’s statutory instrument is an important step in the devolution plan for our railways, as we see powers and responsibilities shift from Westminster to Wales. The Welsh Labour Government are already undertaking plans to design and let the new Wales and Borders rail franchise from this October, as well as to develop ambitious plans for the metro. Although devolution will feature heavily in Labour’s future plans for our rail service, we are absolutely clear that we will also bring rail operations back under public ownership and integrate them with wider infrastructure, improving efficiencies and the effectiveness of our major transport network. We will ensure that rail is run co-operatively and collaboratively alongside devolution, to enable the best of localism, while ensuring a consistent approach across the rail network, and that all revenue returns to the state, not the bank accounts of shareholders.

This statutory instrument, therefore, paves the way for the Welsh Government to build a world-class transport system in Wales for the people of Wales—one that is focused on regrowing the Welsh economy and serving Welsh communities. With 32 million journeys undertaken currently, growth until 2030 is forecast to be 74%, so this next phase highlights how important it is that rail policy is designed in a fully integrated way, with spatial and economic planning, and is fully integrated into the wider transport system in Wales.

Wales will embed the values and ethos of public service in the next iteration of its rail system. It will ensure that high standards improve services to passengers, and it will focus on reinvestment into the service rather than private profit. However, there are issues that we want the Minister to address. It is of huge frustration that he, in Whitehall, will not provide the real powers that Wales has called for, but instead has hidden behind the Railways Act 1993 to disallow Wales from having a public sector provider to run its rail service and to restrict it to tendering the service to private operators.

Whitehall’s continual grip on decisions of this nature does not demonstrate a Government wanting to support the ambitions of the people of Wales, nor does it enable the Welsh Government to run their rail service in the most efficient and effective way. It binds them to the failed philosophy that results in private companies continuing to derive profit out of passengers, while passengers pay more for their services.

The Welsh Labour Government have lobbied the UK Government for greater devolution of transport powers—for instance, to deliver a change to legislation to allow public sector bodies to act as franchisees and to place us on a similar footing to Scotland. The UK Government have continued to oppose that and other legal restrictions, meaning that the Welsh Government cannot bar for-profit operators from coming forward to run some elements, at a time when Labour Wales wants to show more ambition for the people it represents.

The restraints are not stopping the Welsh Labour Government acting creatively. Transport for Wales has been created as a not-for-profit company initially tasked with supporting the Welsh Government to design and let the next franchise and metro. Once the franchise has been let, it is expected that Transport for Wales will oversee the management and joining up of services, including items such as marketing and integrated ticketing.

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

One of the questions I am hoping to ask the Minister is whether he is confident that having only two franchise bidders will mean that there will be a competitive process. As the Member representing the Labour party in this Committee, is the hon. Lady confident that the Welsh Government can proceed with this franchise bidding process with only two bidders?

[Rachael Maskell]

The hon. Gentleman is right to be sceptical about the process. Not only has it been limited to the private sector to bid for these franchises, but, as he has highlighted, only two companies are in place. This Government have directly awarded so many contracts of late, and we are concerned about the way the market is continuing to fail the people who use the service.

[Rachael Maskell]

The point is irrelevant; not only is the NHS performing incredibly well in Wales—of course, it was founded by Bevan, who was from Wales, and we are incredibly proud of that—but the Welsh Government want to realise the ambition of the people of Wales and to have the opportunity to move the railway system forward as an integrated form of transport. We really look forward to the progress that a Labour Government will make—if this Government do not provide the powers necessary to do so.

I will return to the main issue. Labour would ensure that Transport for Wales is at the heart of rail operations, not just to lead in Wales but to secure its voice at the table when it comes to integration of the rest of the rail network across the UK.

The Welsh Government have already made it clear that those services that can be run directly through a not-for-profit model will be run that way, with many more services, such as ticketing, marketing, station management and car parking, operating in new and innovative ways under that new approach.

Labour has been planning to increase capacity, improve efficiency, upgrade rolling stock and integrate rail with other public transport modes, as well as to change the culture, improve access for disabled people, consider how rail can further the wider economy and invest in the workforce, not least in the area of skills.

In November 2016, bidders for the new franchise submitted their outline solutions, in accordance with criteria set by the Welsh Government. Since January 2017, detailed work has been undertaken with the two bidders to deliver for passengers, and that process continues.

In November 2014, agreement was reached between the Welsh and UK Governments to devolve executive franchising functions to Welsh Ministers, so that they could lead the procurement of the next Wales and Borders franchise, which is due to commence on 14 October 2018. Today’s order will achieve this, and through the affirmative resolution procedure in both Houses, it will result in changes to the Railways Act 1993 and the Railways Act 2005.

While mainly in line with those powers devolved to Scottish Ministers, there are some differences in the scope of cross-border rail operations into England and in the fact that responsibilities in respect of the rail network are not being devolved to Wales. Today’s statutory instrument will enable Welsh Ministers to be the sole designating and franchising authority in respect of Wales-only services, and enable Welsh Ministers to designate and franchise the Welsh component of Welsh services—those parts of cross-border services to and from England within Wales—that are contained within the same franchise as Wales-only services. This scope has been agreed in recognition of the extensive nature of cross-border services, and services wholly within England, provided by the Wales and Borders franchise, and the need for appropriate accountability for rail operators on each side of the border.

Since all the relevant references to the “National Assembly of Wales” are replaced by references to “Welsh Ministers”, on the basis of agency arrangements established under section 83 of the Government of Wales Act 2006, it is possible for Welsh Ministers to act as the agent of the Secretary of State. Thus, they can procure and manage the entirety of the Wales and Borders franchise, which includes services that continue to and from, and that operate within, England.

Given that this order makes it possible for the Welsh Government to lead the procurement and management of cross-border services, in the light of the Great Western, West Coast and Cross Country franchise processes, will the UK Government work with the Welsh Government to consider how they can lead the delivery of more cross-border services, so that they can work for the economy and people of Wales? I look forward to hearing the Minister’s response.

The Welsh Government’s ability to operate additional services to destinations already served by the Wales and Borders franchise, and to additional destinations in England, is being heavily constrained under these arrangements. These restrictions will suppress both the rail service offer and the financial potential of the franchise in Wales, not least by the allocation of rail paths. Will the UK Government work with the Welsh Government to address that issue?

The agency agreement setting out the arrangements under which Welsh Ministers can operate services in England is very restrictive. Scottish Ministers are able to operate services into England without such restrictions. Will the Minister therefore agree to review these arrangements, with a view to relaxing them, so that Welsh Ministers can act more freely as a franchising authority, not least in enabling rail operations to move into public hands?

We have been informed that a co-operation and collaboration agreement with Welsh Ministers is being developed. The agreement will need to set out arrangements for how Welsh Ministers will be actively involved in the procurement and management of the cross-border services that continue to be included in the Secretary of State’s franchise. Will the Minister provide an assurance that Welsh Ministers will be significantly and meaningfully involved?

The Commission on Devolution in Wales recommended devolution of funding for Network Rail, but in the four years that have passed since the publication of the part 2 report, the UK Government have not been prepared to open discussions with the Welsh Government. Will the Minister commit to open discussions, not least in the light of the Government’s ambition to join rail operations with infrastructure, as set out in “Connecting people: a strategic vision for rail”, which was published in November? Not to do so seems contrary to that paper.

Network Rail’s annual reports and accounts illustrate that, since its Wales route was established in 2011, just over 1% of spending on enhancement schemes across England and Wales has been directed to the area, yet the Wales route contains 11% of England and Wales’ rail network. A firm commitment to provide a fair level of investment is urgently needed to improve access to employment opportunities and to enable Wales to compete as a location for inward investment in a post-HS2 era. Will the Minister give a commitment to ensure that the options provided for by a new Crewe hub allow for full and unimpaired access to the north Wales main line?

[Jonathan Edwards]

I thank the hon. Lady for making that important point, but she seems to be announcing a change in Labour party policy. She is right to say that the Silk commission noted that those powers should be devolved to Wales, but my recollection of events during the St David’s Day process—the hon. Member for Montgomeryshire might have something to say on this point—was that the then Secretary of State for Wales, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), and the then shadow Secretary of State for Wales, the hon. Member for Pontypridd (Owen Smith), made an agreement to take those provisions from the Silk commission out of the Wales Bill.

[Rachael Maskell]

Labour is absolutely clear that we will do nothing to impede the Welsh economy from growing. That is the focus of our vision and that of Welsh Ministers in the Welsh Assembly and of those in this place.

The recent decision to cancel electrification to Swansea, especially in the light of the revelations in the National Audit Office report, highlights that the Secretary of State knew that bi-mode trains would not provide equivalence to electrification. In fact, no such trains exist that could deliver to the timetable. The Secretary of State acted against the advice that he was given on the matter. That has resulted in the poor execution of Network Rail’s electrification works in south Wales, and the Secretary of State has failed to apologise to the House in the light of those revelations. Perhaps the Minister will offer an apology today, which would be a start.

The decision has caused great disappointment and disruption across the region. Will the Minister commit to long-term investment in the south Wales main line and reinforce the importance of achieving all the remaining electrification ambition through to Cardiff, including on the relief lines? When can we expect to hear an update on that, not least about how electrification will be extended to Swansea?

In the Secretary of State’s written statement of 20 July 2017, which cancelled electrification to Swansea, it was proposed that a new pipeline process be established for rail enhancement schemes. However, further detail about that process, as well as the mechanisms for developing and delivering those schemes, is yet to emerge and no Welsh scheme has yet entered the pipeline. Given the recent cancellation of major investments in Wales, will the Government outline what they are doing to ensure that Welsh rail projects are given the priority and funding they need through the new process?

The Minister will be aware of the importance of the trans-European transport network in Wales. Under regulations, the routes to Milford Haven and to Holyhead need to be upgraded by 2030, which includes full electrification. Does the Minister agree that as we leave the EU, those arterial routes become more important, not least since important examples of TEN-T routes run through non-EU countries such as Switzerland? Will the Government publish a plan for how the upgrade to the TEN-T requirements will be delivered in that time framework?

In conclusion, Labour does not believe that the draft order goes anywhere near the ambition needed to enable Wales to take control of its own destiny. It is becoming increasingly clear to everyone that only a Labour Government can deliver the necessary controls to provide not only the rail service that the people of Wales demand, but the vital infrastructure needed to deliver an economy that works for everyone. Labour will not block the regulations before us, because we want to ensure that Welsh Ministers can increase their role in the running of the rail service at the earliest opportunity. However, we put on the record our concerns that the Government have seriously limited the opportunities for the Welsh Government and the people of Wales.

[Jonathan Edwards]

Diolch yn fawr iawn, Mr Davies. It is a pleasure to serve under your chairmanship and to take part in the final stage of what has been a tortuous and long process of devolving these powers to Wales. Under the original timetable, we should probably have been meeting in Committee at the beginning of 2017, or even in 2016. According to major reports, the delay has incurred significant costs to Welsh taxpayers—about £3.5 million was the latest figure, I understand—so I ask the Minister: what is the latest calculation of the costs incurred as a result of the delay, and who will be footing the bill?

My second question to the Minister is based on the intervention I made earlier on the Labour party representative, the hon. Member for York Central. We know that the process has been a long one, and a number of bidders have fallen out of it. We are down to two franchise bidders, which is one fewer than provided for by the Department for Transport guidelines for a competitive tender, as I understand them. Is the Minister satisfied that two operators bidding for this franchise—important to the commissioning of rail services in Wales—is sufficient?

Thirdly, a letter sent in August 2017 by the Secretary of State for Transport to his counterpart in the Welsh Government outlined the reasons why he was refusing to pass the order at that time. The letter covered a raft of issues, including a row about £1 billion of funding derived from track access charges. We have received no update as to how that and the other issues listed in the letter have been resolved. I will be very grateful if the Minister can outline what agreements were made between the Governments on those unresolved issues that have enabled the draft order to be brought forward at this stage.

Fourthly, I touch on an issue raised by the hon. Member for York Central. The draft order represents only a limited devolution of powers over the railway infrastructure. The legislation covers only the valleys lines in my country. We know that Wales is desperately underfunded in infrastructure investment—in Wales, we have about 11% of the Wales and England rail network, but we receive only about 1.5% of the money invested by the British Government in rail infrastructure. If the Westminster Government are not willing to invest in our network, as we have seen historically in that terribly bad level of investment over the years, or to devolve powers over the infrastructure, which would enable the Barnett consequentials to kick in, will the Minister use this opportunity to explain how he expects the Welsh network to develop into one fit for the people of Wales in this new century?

Lastly, on the transfer of functions, we are talking only about a situation whereby the Secretary of State will retain a veto over the franchise and the powers being devolved—it is not even devolution, but only part devolution. Will the Minister explain his reasoning behind that? The powers have been devolved fully in Northern Ireland and Scotland. Why should Wales be treated as a second-class nation?

[Joseph Johnson]

I thank all hon. Members for the points made. I will try to address as many of them as I can. I will happily write to Committee members afterwards about those I do not address now.

The Government are delivering on our commitment to give the Welsh Government greater control over Wales and Borders services. The devolution of these rail powers is an example of effective co-operation between the UK and Welsh Governments. An example of that effective co-operation is the cross-border working that is now under way. The UK and Welsh Governments are finalising a co-operation and collaboration agreement that will set out arrangements for partnership working in respect of the management of the next Wales and Borders franchise and the operation and procurement of passenger rail services operating in Wales by other franchises. That will include an enhanced consultation role for Welsh Ministers.

A number of questions were asked about the bidding process and the state of bids for the next franchise. The withdrawal of Arriva and Abellio from the bidding process is a matter for the Welsh Government, as they are now responsible for it. It is not uncommon for bidders for major projects to withdraw during tender processes. With final tenders due later this year, two bids remain in the running—MTR and KeolisAmey—which is sufficient to have a competitive process. The shadow Minister asked about the nature of the bidders allowed to participate in the process. The Railways Acts that she referred to do not prevent not-for-profit organisations from bidding for rail franchises. The Welsh Government were able to encourage bids from not-for-profit organisations for the current Wales and Borders franchise procurement.

The hon. Member for Carmarthen East and Dinefwr asked a number of questions about the devolution settlement and rail. The Government believe that it would be undesirable to reopen discussions on Silk recommendations on which there has not been a clear consensus. We do not intend to revisit the question of devolving Network Rail funding given the discussions on the issue during the St David’s Day process. The Department for Transport continues to liaise closely with the Welsh Government on the specification and funding of Network Rail’s operations in England and Wales for each five-year railway control period to ensure that Welsh requirements for increased capacity on the network are reflected. As part of Network Rail’s devolution arrangements, the Welsh Government will be represented on the Wales route supervisory board within Network Rail, and the board will work in partnership to drive improvements for customers in the Wales and Borders area and to hold industry to account.

The hon. Gentleman also asked about delays to the devolution process and the amount of time it has taken to get us to this place. The delay in transferring rail powers to Welsh Ministers has not adversely affected the procurement process for the next franchise. The formal transfer of powers has required the resolution of a number of detailed policy and practical considerations on cross-border services that has taken longer than anticipated. However, as I hope we have illustrated, we have been working closely with the Welsh Government throughout to ensure that they can proceed in a timely manner with the franchise procurement. The ongoing procurement of the next franchise, as I said in my opening remarks, is being facilitated through agency agreements enabling Welsh Ministers to exercise the Secretary of State’s relevant functions in advance of the draft order being made.

Members also asked about Government spending on the railways in Wales overall. The Department for Transport continues to liaise closely with the Welsh Government on the specification and funding of Network Rail’s operations in England and Wales for each five-year railway control period to ensure that requirements in Wales for increased capacity on that bit of the network are reflected. We are investing a record amount in Wales’s rail infrastructure. Network Rail’s proposed budget for control period 6, which runs from 2019 to 2024, is more than £1.3 billion. As Members know, we do not allocate transport funding in England and Wales on a per-head-of-population basis, and the Wales route is not being short-changed. Our spending goes where it is most needed and where it delivers the greatest value for money. We make decisions based on rigorous and fair appraisal processes that ensure just that.

The hon. Member for York Central asked about electrification and Cardiff and Swansea in particular. We remain committed to delivering the right outcomes for rail transport in Wales. As Ministers have said before, however, we will only commit to electrifying lines where it will genuinely provide a real benefit to passengers. A recent reappraisal of electrification between Cardiff and Swansea found it to be poor value for money, with a benefit-to-cost ratio of just 0.3. The introduction of the bi-mode intercity express trains means that we no longer need to electrify the Great Western route between Cardiff and Swansea. We are improving journeys for passengers in south Wales sooner than expected, without the need to carry out disruptive electrification works along the Great Western route between Cardiff and Swansea.

[Jonathan Edwards]

If the bi-mode trains are so good, can I take it that it will be bi-mode trains running on HS2?

[Joseph Johnson]

I will not be drawn on the procurement decisions for HS2 at this point. The point I wanted to make, and made, was that the bi-mode trains on this stretch of the network will deliver substantially the same benefits for passengers that electrification would, at considerably better value for money.

[Joseph Johnson]

Clearly it will not be the same as electrification, because it will not require the disruptive works overhead, the gantries and so on, which would have affected passenger journeys. The introduction of the new bi-mode trains will, however, deliver substantially the same passenger benefits and, as I said in response to the hon. Member for Carmarthen East and Dinefwr, at considerably better value for taxpayers.

[Jonathan Edwards]

I travel on that line every week to come down to London. The busiest section both ways in terms of passenger numbers is the journey between Swansea and Cardiff, the two major cities in Wales. The journey time now with the new trains is longer than it was with the old trains, because the new trains are far larger and take more time to slow down when entering stations such as Port Talbot and Bridgend before they enter Cardiff.