United Kingdom Internal Market Bill

Karin Smyth Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Monday 14th September 2020 Commons Chamber

[Craig Mackinlay (South Thanet) (Con)]

It seems to me that some arguments we are hearing this evening are broadly about international law and those sorts of obligations, despite France and Germany being in the premier league of infractions of their EU obligations, and many other instances raised by hon. and right hon. Members about other global infractions by various nations. Let us be clear: the provisions of this Bill are fully allowed for within the Northern Ireland protocol. The right hon. Member for Doncaster North (Edward Miliband), who opened for the Opposition, made reference to the exact appropriate article—paragraph 1 of article 16—which says:

“If the application of this Protocol leads to serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade, the Union or the United Kingdom may unilaterally take appropriate safeguard measures.”

[Karin Smyth (Bristol South) (Lab)]

If these provisions are entirely within the protocol, why are the Government saying that they are breaking the law?

[Craig Mackinlay]

That is a matter for the Government to answer; I do not believe that we are breaking international law in any way.

What we are proposing in the Bill is also allowed for under section 38 of the European Union (Withdrawal Agreement) Act 2020, which was passed by this House in quick time and by broad measure. There are no surprises in this Bill. Surely any Member could appreciate that these provisions stand to reason, with negotiations going nowhere; best endeavours, as required in the withdrawal agreement, seemingly ignored by the other side; demands that we become the only independent coastal state on this planet that would have its fisheries resource controlled by a foreign power, and that state aid and level playing field rules continue, leaving us as a supplicant nation; and, the latest we hear, a threat to the food supply and supply of goods from GB to NI.

I am going to talk about fists. We all have them and they are potential weapons for illegal acts if we use them wantonly or recklessly, but we do not so they are not. The law gives us the absolute right of self-defence using those physical assets to protect ourselves and/or our family. Northern Ireland is part of our family of this Union of nations. The provisions in this Bill are for self-defence only—defence of our Union, and particularly in defence of the businesses and people of Northern Ireland.

We are elected to this House to stand up to bullies, and I will do everything that is necessary and within my power to deliver Brexit properly and cleanly. If the EU will not discuss future arrangements fairly and with best endeavours, we must take any measure that is necessary to ensure the continuance of normality and trade across our Union. I will be supporting the Bill wholeheartedly this evening.

--- Later in debate ---

[Karin Smyth (Bristol South) (Lab)]

I first raised the issue of the Northern Ireland border on the Monday after the referendum—I have skin in the game, with family on both sides of the border. I have watched every twist and turn of events since. I despair at the language, at the deep ignorance, at the disregard for fragile settlements and for the 1.9 million people who live there who, frankly, deserve better.

The Tories got themselves caught up in a toxic triangle of the ERG Brexit, the differential rules across the Union and their obligations under the Belfast Good Friday agreement, and the Prime Minister chose his party. He did so through the protocol and now we need to make it work, because he agreed the differential rules across his precious Union.

I take a lot of interest in the constitutional settlement across these islands. I am vice-chair of the British-Irish Parliamentary Assembly, and I have visited many of those legislatures: in Edinburgh; Cardiff; Belfast; Dublin; Jersey; Guernsey; Sark and the Falklands. Those places reflect their history as part of the United Kingdom family. They take great pride in it and in what we do, and they are watching.

I read the White Paper in July with some dismay. In the past two decades in particular our constitution has changed, but after reading that White Paper it felt as if nothing had changed in 200 years. The Acts of Union that got us to this place did not just happen: they were violent; they were disputed; and they involved an awful lot of money and land passing hands. There are different readings of our history, which has resulted in many years of debate across these islands. It is an evolving dynamic situation and one that is actually very precious and it is something of which we need to be mindful.

I am also a member of the Public Administration and Constitutional Affairs Committee. This summer, we expressed our great reservations about the Bill, particularly with regard to the speed of the consultation and the constitutional aspects. It is primarily an economic Bill, but it is also deeply constitutional. We have asked for an independent monitoring body to report directly to the House of Commons, as we are concerned about the provisions in the Bill and the need to take account of the intergovernmental relations that are coming.

Last week, the Chancellor of the Duchy of Lancaster appeared before the Committee and we were told that the Dunlop review would be published before the Bill hits the statute book at the end of this year. It is a case of putting the cart before the horse. It would have been much better to have these discussions and a respect for the common frameworks before bringing this Bill forward. The Government need to dial down the rhetoric. They need to get back to the negotiating table, and they need to treat this Parliament and the devolved legislatures with much greater respect.

United Kingdom Internal Market Bill

Karin Smyth Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Lucy Powell]

The hon. Gentleman is failing to answer my point, which is that there is nothing in the Bill to protect against the very thing that the Prime Minister told us we needed an insurance policy to guard against.

When the Prime Minister was challenged—or, should I say, humiliated—by my right hon. Friend the Member for Doncaster North on this point, the Prime Minister shrank into his seat. They then said that they would bring forward changes in the Finance Bill to protect against these imaginary blockades by EU warships in the Irish sea, but there is no Finance Bill now, is there? So what is their plan for dealing with this? Maybe the Minister could tell us.

In their final flourish to push the Bill through, the Government say it gives back powers to the nations, but the devolved Administrations strongly disagree. The Labour Welsh Counsel General has called the Bill

“an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland.”

A Conservative Senedd Member, the former shadow Counsel General, resigned because he shared those concerns. As we have argued, if the Westminster Government decided to lower standards, there could be no voice for the devolved nations, because the Government have decided not to legislate for common frameworks, but are legislating for their own veto.

The Government must respect the devolution settlement and work collaboratively in good faith with the devolved Administrations to build a strong and thriving internal market. Our new clause 2 would facilitate just that. Not doing so would threaten our precious Union by putting rocket boosters under the campaign for independence in Scotland and elsewhere.

The Government have also said that this Bill will ensure more money for the nations and regions, as we heard again today, yet we still have no detail on how the shared prosperity fund will operate. They say they want to level up and invest in the regions and nations. “Trust us,” they say on this point, “because we have the right motives.” Yet last week, the mask slipped, didn’t it, with the breath-taking admission from the Chancellor of the Duchy of Lancaster that his Government were going to funnel this cash into the new Conservative seats—pork barrel politics at its worst.

Our new clause 3 would ensure that Ministers had a duty to report to Parliament and ensure oversight of the progress of this and other measures in the Bill.

[Karin Smyth (Bristol South) (Lab)]

My hon. Friend makes an excellent point, particularly about the English regions. I am from the south-west as she well knows, and the south-west has consistently returned Conservative MPs and received a great deal of money from Europe, and is frankly getting little in return. Could not the Government elucidate on how they are going to meet their promises across the regions in England and across the various nations in the United Kingdom, and on how they will make sure that places such as Cornwall do not lose out further?

[Lucy Powell]

My hon. Friend makes a good point, but I am afraid that, as we heard last week, her constituency is unlikely to get more money because it is not one of the new Conservative seats that we heard were going to be prioritised for this reallocation of money.

The truth is that the Government have been making it up as they go along. The UK’s reputation and territorial integrity are collateral damage to a No. 10 fixated on public relations and posturing more than on making sure that its policy works and is in the national interest. We have had an unprecedented number of amendments from Ministers to their own Bill during its passage. We have further new clauses today, which, as we have heard, further undermine the rule of law. They are making it up as they go along—change after change underlying the haphazard incompetence of this Government.

We want a successful internal market. This Bill does not deliver that. We want a strong Union built on mutual respect. This Bill could fatally undermine it. We want the UK to play a global role for good. This Bill actively damages that. The Prime Minister says that measures in the Bill are just an “insurance policy”, but you cannot get insurance for a house you have already torched.

I hope Conservative Members who still have reservations about the Bill will support our new clauses and join us in the Lobby.

--- Later in debate ---

[John Redwood (Wokingham) (Con)]

I support the Government’s amendments to the legislation for the reasons outlined admirably by the Minister—it did need a little strengthening and this is a welcome clarification—but I rise mainly to oppose new clause 1.

I am disappointed with the official Opposition, because I was delighted after the clear decision of the people in the last general election that the Opposition said that they now fully accepted the result of the referendum, although it took place years ago—the previous Parliament blocked its timely implementation. We had a rerun in the general election and the Opposition fully accepted the verdict of that general election, yet here we are again today, with new clause 1 deliberately trying to undermine the British Government’s sensible negotiating position in the European Union.

Whenever there is a disagreement in interpretation of that original withdrawal agreement between the United Kingdom and the European Union, the Opposition and most of the other opposition parties rush to accept the EU’s—very political—interpretation of the situation and rush to say that anything the UK Government wish to assert in this Parliament, or in a court of law if it came to that, is clearly illegal.

It is preposterous that we have so many MPs who so dislike the people of this country that they are still trying to thwart the very clear wish to have a Brexit that makes sense.

[Karin Smyth]

Will the right hon. Gentleman give way?

[John Redwood]

I must not take up too much time. I wish to develop my argument quickly.

We have to recognise what we are dealing with here. The EU withdrawal agreement was pretty unsatisfactory and one-sided because the previous Parliament stopped the Government putting a strong British case and getting the support of this Parliament in the way the British people wanted. The Prime Minister wisely went to Europe and did his best to amend the withdrawal agreement but it was quite clear from the agreed text that a lot was outstanding and rested to be resolved in the negotiations to be designed around the future relationship, because we used to say that nothing is agreed until everything is agreed and that the withdrawal terms had to run alongside the future relationship.

The EU won that one thanks to the dreadful last Parliament undermining our position all the time. This Prime Minister is trying to remedy that and the only reason I was able to vote for the European Union (Withdrawal) Act 2018—much of it was an agreement that I knew had lots of problems with it—was that we put in clause 38, a clear assertion of British sovereignty against the possibility that the EU did not mean what it said in its promises to my right hon. Friend the Prime Minister and did not offer that free trade agreement, which was going to be at the core of the new relationship. We therefore needed that protection, so I am pleased that the Government put it in.

That made me able to vote for the measure to progress it to the next stage, but I was always clear that the EU then needed to get rid of all its posturing and accept what it had said and signed up to—that the core of our new relationship was going to be a free trade agreement. We were going to be a third country, we were not going to be under its laws and we were not going to be in its single market and customs union, but it has systematically blocked that free trade agreement. The UK has tabled a perfectly good one based on the agreements the EU has offered to other countries that it did not have such a close relationship with, but it has not been prepared to accept it. Well, why does it not table its own? Why does it not show us what it meant when it signed up to having a free trade agreement at the core of our relationship? If it will not, we will leave without a deal and that will be a perfectly good result for the British people, as I said before the referendum and have always said subsequently.

Of course, it would be better if we could resolve those matters through that free trade agreement. As colleagues will know, many of the problems with the Northern Ireland protocol fall away if we have that free trade agreement, and we are only in this position because the EU is blocking it.

Why is the EU blocking the agreement? It says that it wants to grab our fish. I have news for it: they are not on offer. They are going to be returned to the British people, I trust. I am always being told by Ministers that they are strong on that. The EU wishes to control our law making and decide what state aid is in the United Kingdom. No, it will not. We voted to decide that within the framework of the World Trade Organisation and the international rules that govern state aid—rules, incidentally, that the EU regularly breaks. It has often been found guilty of breaking international state aid rules and has been fined quite substantially as a result.

I support the Government’s amendments, and I support this piece of legislation. We need every bit of pressure we can to try to get the free trade agreement and the third-country relationship with the EU that we were promised by it and by the Government in the general election. We can then take the massive opportunities of Brexit. It is crucial that new clause 1 is not agreed to, because it would send a clear message to the European Union that this Parliament still wants to give in.

--- Later in debate ---

[Gary Sambrook]

This is one of the most important Bills that we will vote on in this Parliament, because it will create the foundation and fabric for our United Kingdom to prosper for many years to come—hopefully for at least another 300 years, to pick a random number. It is so important for all four of our nations to benefit from the Bill and prosper together.

The provisions in the Bill, especially on subsidy controls, are exactly what the spirit of Brexit was all about. It was about people knowing that they were sending billions of pounds to the EU, and feeling left behind here in the UK. I was shocked and appalled earlier to hear the shadow Minister talk about the Chancellor of the Duchy of Lancaster saying that money should be taken to the places it needs to be. The seats she was talking about used to be held by the Labour party, but are now held by Conservatives across the country, and it is because Labour forgot about those seats that so many of us Conservative Members are here today.

One such example, in my own seat, is the demise of MG Rover, which many people will remember. The factory closed down 15 years ago, but there is still 150 acres of land going completely unused. It is a daily reminder to the people who drive past it of that feeling of being left behind—of the billions of pounds going to the European Union, and the lost opportunities for jobs and skills across the constituency of Birmingham, Northfield. Through the subsidy controls provided in the Bill, we will be able to use Brexit to deliver on those jobs and opportunities. I very much look forward to this legislation being used for a bright, positive future across Northfield and Longbridge, when the empty space at MG Rover is used once again.

The clauses and compromises on parliamentary sovereignty are absolutely right and sound. A couple of Members on the Opposition Benches spoke about the nature of negotiations. Most Opposition Members are a second-hand car salesman’s dream. Half of them would leave the showroom without any windows, doors or tyres left on their car because every time someone said no to them, they would just roll over and accept it. If the European Union says, “No, sorry, we can’t do that”, Opposition Members think we should just say, “That’s alright; we’ll do whatever you like.”

We have heard about devolution, especially from Scottish National party Members. I am not too sure what definition of devolution they are working to. We talk about taking powers from Brussels to the UK and giving them to the devolved Administrations—but, no, their definition of devolution is to send them right back over to Brussels and have no control over them whatever. That is because the European Union is supposedly some kind of beacon and fount of progressive politics against a domineering United Kingdom. Well, they should tell that to the political independence campaigners in Catalonia, many of whom are political prisoners now, and one of whom was barred from public office yesterday, at the will of the European Union.

I have 10 seconds left, so I will finish by saying that I wholeheartedly support the Bill and its provisions to deliver our levelling-up agenda for constituencies across the country.

[Karin Smyth]

The last time I bought a second-hand car, the first thing I did was make sure it was roadworthy, legal and in line with the legislative provisions of this country.

I have followed this debate very closely, speaking both on Second Reading and in Committee, and I say yet again that we have had more heat than light. We started off—let us not forget that it was the Secretary of State for Northern Ireland, and nobody else, who started off—by saying that the Bill would breach international law. It was not the Labour party that said we would accept everything the EU says; it was from the Dispatch Box that he said the sentence that in fact has put this entire Bill under a cloud.

The Government have got themselves in a terrible mess on devolution. A key pillar of devolution is setting priorities in key areas, but, as the explanatory notes to the Bill say, clauses 46 and 47, which aim to provide financial assistance, fall

“within wholly or partly devolved areas”.

That is clearly an area of disagreement.

In parallel with the Bill, we are waiting for Lord Dunlop to report on the UK Government’s Union capability. At the Public Administration and Constitutional Affairs Committee a few weeks ago, the Chancellor of the Duchy of Lancaster said that that would come before this Bill hits the statute book. It is clearly, again, putting the cart before the horse.

We have to admit and understand the asymmetry across the Union given the size of England. It is not hard for us to try to do that. I am somebody who thinks that, despite our Union being forged in conflict, with a very difficult history, it is actually precious. It is an exemplar of what is good about politics, democracy, how we can come together with the hard graft of compromise and the ability of us as politicians to evolve our positions and reflect change over time. However, that has to be based on respect.

It is clear that the heavy-handed way in which the Government have introduced this Bill—and, I have to say, many of the speeches given to Conservative Members to read—has not appreciated such respect or the fragility of the Union. We could have had minimum standards included in this Bill, and we could have had the frameworks put on a statutory footing. It could have been done very differently, and that is a source of great regret.

This is not just an economic Bill, as we were sold it in the first place; it is a deadly serious constitutional Bill, and it is deeply problematic. I would like to speak more about Northern Ireland, but I cannot given the time. Again, it was deeply irresponsible of the Secretary of State for Northern Ireland to herald the Bill in the way he did. We know the situation is fragile and we know that Brexit creates difficult problems on the island of Ireland, and it behoves all of us to dial down the rhetoric and recognise that we are now in for a very long haul on the processes to make this work.

Whether in the Joint Committee, the specialised committee, the joint working group, strands 2 and 3 of the Good Friday/Belfast agreement, the British-Irish Council or the British-Irish Parliamentary Assembly, of which I am proud to be a vice-chair, we are not able to meet at the moment as parliamentarians. That is a real problem because we are not able to talk with people with whom we disagree fervently, but with whom we need to make peace across these islands.

With our demise in the EU, the fact that the 25-odd meetings a day we had as British and Irish parliamentarians —we do have many more common interests than with the rest of the EU—are lost and that those relationships are about to fall away is something the Government need to take much more seriously. In 1990, we started forging these agreements as parliamentarians across these islands, and that was when we started to develop the peace that came some eight years later.

The Government must treat not only the regions and parts of the United Kingdom with much more respect, but they must now take much more seriously the implementation of strands 2 and 3 and the relationship with the Irish Government. We know that there are more things to come with tariffs, and so on, and the Government need to take much more heed of that.

[Andrew Bowie]

It is a pleasure to speak in this debate on this vital Bill, as it was when I spoke on Second Reading and in Committee.

Contrary to popular belief, I have a lot of respect for my colleagues on the Scottish National party Benches. Their view about the future of Scotland is very different from mine, but I respect their view. I respect the fact that they come down here to improve the lives of Scots in their particular way, as I hope they respect the fact that, from my perspective, I believe I am doing the same, although with a Conservative bent. That is especially the case with the spokesperson for the SNP today, the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), which is maybe why I was so disappointed by the tone he struck in his speech. He did not take very much instruction from my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) about the overuse of hyperbole.

Maybe that is also why I am a little perturbed by SNP Members’ opposition to what is a very good Bill—a Bill that is pro-business, pro-consumer and ultimately pro-Scotland. I know they will not take my word for that—I understand that—but maybe they will take the word of the CBI, which said that protecting the UK internal market is “essential”, and that:

“Preserving the integrity of the internal single market—the economic glue binding our four nations—is essential to guard against any additional costs or barriers to doing business between different parts of the UK.”

Or maybe they will take the words of the Scottish Retail Consortium, which said:

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

And I have already quoted Andrew McCornick, the president of the National Farmers Union Scotland, who said:

“NFU Scotland’s fundamental priority, in the clear interest of Scottish agriculture as well as the food and drinks sector it underpins, is to ensure the UK Internal Market effectively operates as it does now.”

That is what this Bill does: it underpins and cements in statute the existence of our most important market—the internal market of our United Kingdom.