Subsidy Control Bill

Kirsty Blackman Excerpts

3rd reading
Monday 13th December 2021 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

New clause 2—Annual report on climate change impacts—

‘(1) The Secretary of State must once every 12 months lay a report before Parliament setting out the impact of subsidies granted in the preceding 12 months on the environment and climate change.

(2) Any report under subsection (1) must include an assessment of the impact of subsidies granted in the preceding 12 months on the UK’s ability to achieve net-zero emissions by 2050.

(3) The first report must be laid before Parliament within 12 months of this Act being passed.’

This new clause would require the Secretary of State to lay an annual report before parliament detailing the climate change impacts of subsidies granted that year.

New clause 3—Post-award investigations—

‘(1) The CMA may conduct an investigation in relation to a subsidy that has been granted or a subsidy scheme that has been made.

(2) A decision under subsection (1) may be made in relation to any subsidy or subsidy scheme in respect of which the CMA considers—

(a) that there has or may have been a failure to comply with the requirements of Chapters 1 and 2 of Part 2, or

(b) that there has or may have been a failure to comply with the transparency obligations set out in Chapter 3 of Part 2.

(3) Where the CMA makes a decision to investigate a subsidy or scheme under subsection (1), it must direct the public authority to provide it with—

(a) any assessment carried out by the public authority as to whether the financial assistance fell within the meaning of “subsidy” or “subsidy scheme” for the purposes of this Act, and the reasons for that conclusion,

(b) any assessment carried out by the public authority as to whether the financial assistance if assessed to constitute a subsidy or subsidy scheme would comply with the requirements of Chapter 1 and 2 of Part 2 and the reasons for that conclusion,

(c) any evidence relevant to those assessments,

(d) in a case where such assessments were not provided, the reasons for the assessments not being provided,

(e) any information that the public authority failed to enter in the subsidy database in accordance with Chapter 3 of Part 2, and

(f) such other information as is specified in regulations under section 60(8)(a).

(4) Where the CMA decides to conduct an investigation under subsection (1), the direction given under subsection (3) must be made before the end of 20 working days beginning with the day on which the subsidy is given or the scheme is made.

(5) The CMA must send a copy of the direction given under subsection (3) to the public authority and the Secretary of State.

(6) The public authority must provide to the CMA the information required under subsection (3) before the end of the information period as defined in section 60(7).’

This new clause provides the CMA with the power to conduct a post-award investigation where the public authority has or may have failed to comply with its requirements.

Amendment 10, in clause 10, page 6, line 31, leave out paragraph (a) and insert—

‘(a) is made by—

(i) a Minister of the Crown,

(ii) the Welsh Ministers,

(iii) the Scottish Ministers, or

(iv) a Northern Ireland department; and’.

This amendment allows devolved administrations to make streamlined subsidy schemes.

Amendment 18, page 6, line 33, at end insert—

‘(4A) A streamlined subsidy scheme may be made, in particular, to support areas of relative economic deprivation.’

This amendment would allow for streamlined subsidy schemes to be made for the purposes of supporting areas of deprivation.

Amendment 19, in clause 11, page 7, line 9, at end insert—

‘(4) Before making regulations under this section, the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland.

(5) If consent to the making of the regulations is not given by any of those authorities within the period of one month beginning with the day on which it is sought from that authority, the Secretary of State may make the regulations without consent.

(6) If regulations are made in reliance on subsection (5), the Secretary of State must make a statement to the House of Commons explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.’

This amendment would require the Secretary of State to seek the consent of the Devolved Administrations before making regulations under this section. Where such consent is not given within one month, the Secretary of State may make the regulations without that consent, but must make a statement to the House of Commons explaining their decision.

Amendment 20, in clause 32, page 17, line 10, at end insert—

‘(c) the subsidy database is subject to routine audit to verify the accuracy and completeness of entries.’

This amendment requires the Secretary of State to ensure that the database is subject to routine audit.

Amendment 1, in clause 33, page 17, line 21, leave out “£500,000” and insert “£500”.

This amendment would reduce the threshold for entering subsidies into the subsidy database from £500,000 to £500.

Amendment 2, page 17, line 24, leave out “one year” and insert “one month”.

This amendment would require subsidies or schemes to be entered in the database within one month of being made, rather than one year, if given in the form of a tax measure.

Amendment 13, page 17, line 24, leave out paragraph (a) and insert—

‘(a) if given in the form of a tax measure, an entry with a provisional tax deduction value must be entered within one month, and a final value entered within one month of the date of the tax declaration, or’.

This ensures that tax measure subsidies are entered in the subsidy database within one month.

Amendment 3, page 17, line 26, leave out “six months” and insert “one month”.

This amendment would require subsidies or schemes to be entered in the database within one month of being made, rather than six months, if given in any form other than a tax measure.

Amendment 4, page 17, line 33, leave out “one year” and insert “one month”.

See explanatory statement for Amendment 2.

Amendment 5, page 17, line 35, leave out “six months” and insert “one month”.

See explanatory statement for Amendment 3.

Amendment 6, in clause 34, page 18, line 27, at end insert—

“(j) the date the subsidy or scheme was entered onto the database.”

This amendment would require the date a subsidy or scheme was entered onto the database to be included in the information public authorities are required to enter into the database.

Amendment 14, in clause 36, page 19, line 17, after “requirements” insert

“with the exception of duties under section 33,”.

This amendment requires that subsidies under the minimal financial assistance threshold are entered in the subsidy control database.

Amendment 7, page 20, line 4, at end insert—

‘(7) In this section, the reference to the subsidy control requirements does not include the requirements as to transparency in Chapter 3 of Part 2.’

This amendment requires that “minimal financial assistance” subsidies are not exempt from the database transparency requirements, while remaining exempt from other subsidy control requirements.

Amendment 21, in clause 41, page 23, line 15, leave out “£14,500,000” and insert “£500”.

This amendment would make section 33 applicable to SPEI subsidies worth more than £500.

Amendment 22, page 23, line 16, leave out subsection (b).

This amendment would make section 33 applicable to SPEI subsidies worth more than £500.

Amendment 23, in clause 55, page 30, line 40, after “State” insert

‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.

This amendment extends the call-in powers under this section to the Devolved Administrations.

Amendment 24, page 31, line 2, after “State” insert

‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.

This amendment relates to Amendment 23.

Amendment 25, page 31, line 7, after “State” insert

‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.

This amendment relates to Amendment 23.

Amendment 9, in clause 66, page 37, line 39, leave out paragraphs (a), (b) and (c) and insert—

‘(a) all subsidies and subsidy schemes granted in the past 12 months, and

(b) an assessment of the extent to which they satisfy the subsidy control principles and the energy and environment principles.

(2) Any report made under this section must be formally laid before parliament by the Secretary of State.

(3) The Secretary of State must make an oral statement to the House of Commons when any report under this section is laid.’

This amendment ensures that the annual report prepared by the CMA includes all subsidies along with its assessment of the extent to which they fulfil the 7 principles set out in the Bill. The report also places a requirement for the Secretary of State to report to Parliament when a report is laid.

Amendment 26, in clause 68, page 39, line 1, at end insert—

‘(3A) The Chair of the CMA Board may appoint up to three non-executive members to the Subsidy Advice Unit established under subsection (1) in order to ensure that the Unit includes at least one person with relevant experience in relation to each of Wales, Scotland and Northern Ireland.’

This amendment would allow the CMA Chair to appoint up to three non-executive members to ensure that the Unit includes at least one person with experience in relation to each of Wales, Scotland and Northern Ireland.

Amendment 8, in clause 70, page 39, line 35, leave out subsection (2).

This amendment intends to allow individual subsidies given under a subsidy scheme to be reviewed, without the requirement for the broader subsidy scheme to be reviewed too.

Amendment 12, page 40, line 16, at end insert—

‘(c) the Welsh Ministers,

(d) the Scottish Ministers, or

(e) a Northern Ireland department;’.

This amendment includes the devolved administrations in the list of those who can apply to the Competition Appeal Tribunal for a review of a subsidy decision.

Amendment 27, in clause 79, page 46, line 3, at end insert—

‘(5A) Before issuing guidance under this section, the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland.

(5B) If consent to the making of the regulations is not given by any of those authorities within the period of one month beginning with the day on which it is sought from that authority, the Secretary of State may make the regulations without that consent.

(5C) If regulations are made in reliance on subsection (5B), the Secretary of State must publish a statement explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.’

This amendment would require the Secretary of State to gain the consent of the Devolved Administrations before issuing guidance under Clause 79.

Amendment 15, in schedule 1, page 51, line 8, after “concerns” insert

‘and areas of relative economic deprivation’.

This amendment includes areas of relative economic deprivation as an example of the equity rationales that subsidies should address.

Amendment 16, page 52, line 6, at end insert—

‘(c) consistency with the United Kingdom achieving its net-zero commitments established under the Climate Change Act 2008.’

This amendment adds consistency with the UK’s net-zero commitments as a particular consideration for public authorities before deciding whether to give a subsidy.

Amendment 11, page 52, line 6, at end insert—

‘Net Zero

H Subsidies should not normally encourage behaviour which will have a negative effect on the achievement of the UK’s net-zero commitments.’

This amendment adds a subsidy control principle relating to the UK’s net zero commitments.

Amendment 17, in schedule 2, page 52, line 15, at end insert—

‘(c) delivering the UK’s net-zero commitments established under the Climate Change Act 2008.’

This amendment would ensure that subsidies related to energy and the environment incentivise the beneficiary to help deliver the UK’s net-zero commitments.

[Kirsty Blackman]

Thank you for calling me to speak in this important debate, Madam Deputy Speaker. It is a delight to be present in this incubation Chamber, where viruses from all around these islands—every corner of them—can come to mix freely, so that we can return this toxic cocktail to our constituents, constituencies and families. I am delighted to be able to be physically present at this time.

I will speak briefly to new clause 1, which is in my name and those of my colleagues, as well as the other amendments that stand in my name. My hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) will fill in the rest of the details and explain more about our rationale for the new clause.

The logic behind new clause 1 is that agricultural subsidies do not fit neatly into subsidy control regimes. That has been recognised by the World Trade Organisation, which is the reason for its agreement on agriculture; it has been recognised by the European Union, which is the reason for the common agricultural policy; indeed, it has been recognised across the world. We, and the Scottish Government, still have no idea why the UK Government decided to go against the flow and include agricultural subsidies in the Bill, rather than providing a separate arrangement for them.

The new clause simply removes agriculture from the consideration. It does not mean that we should not have a control regime of some sort for agriculture, and it does not mean that we should not have rules relating to agriculture. It means that agriculture does not fit neatly here, and should not form part of the main subsidy control regime in the Bill.

Amendment 10 relates to streamlined subsidy schemes. The change for which we are asking would allow devolved Administrations to make such schemes. Given that those Administrations have devolved competences by law, it makes no sense that the schemes can only be made by the Secretary of State in the UK Government. Obviously we would like Scottish independence, but in the absence of a vote on that, we are not asking for devolved Administrations to be able to overstep their devolved competences. We are merely asking for parity—for the ability of devolved Administrations to create streamlined subsidy schemes. They would still only be able to do that within their areas of devolved competence, and they would still only be able to do it within their limited financial envelopes. We are not asking for anything strange or unusual; we are not seeking some sort of power grab; it is simply to do with parity.

[Jim Shannon (Strangford) (DUP)]

I understood from discussions I have had with the Minister in the past that the intention was to give the regional Administrations a say in this process so that their views could be taken on board if necessary, but the hon. Lady seems to be saying that that will not happen. Have I got it wrong, or have I got it right?

[Kirsty Blackman]

Some parts of the Bill give the devolved Administrations a say, but many others do not. The key part concerns the issue of interested parties, which I will explain in some detail later.

Streamlined subsidy schemes can go through a “streamlined” process rather than being made by, for instance, a local authority in order to benefit organisations. We are not asking for all granting authorities to have access to that process; we are simply asking for parity of esteem for the devolved Administrations, specifically on streamlined subsidy schemes.

[Jim Shannon]

The point that I was trying to make relates to farmers’ subsidies and environmental schemes, which are critically important to Northern Ireland, as they are to Scotland.

[Kirsty Blackman]

The hon. Gentleman is absolutely correct. We are asking for the agricultural references to be removed from the Bill because we do not think that this gives us, or any of the devolved Administrations, the flexibility we need. The Welsh Government have raised concerns similar to those raised by the Scottish Government, particularly in relation to legislative consent. As I said earlier, my hon. Friend the Member for Edinburgh North and Leith will speak in more detail about agriculture in particular, so it may be worth questioning her at that stage.

Let me now turn to the issue of tax declarations and the transparency database. There is already a subsidy control database, which is rubbish. There is very little on it because a huge amount of information is missing. The Minister has made it clear that this is a preliminary database, an interim measure, and not the final database. We have had a degree of reassurance from him that the new database will be better, but the way in which the legislation is drafted—the number of exemptions, and the length of time that authorities have to upload information—causes us great concern. and was raised a number of times in Committee.

Amendment 13 would amend clause 33 in respect of a local authority or granting authority giving a subsidy in the form of a tax measure—a tax rebate or tax reduction. To give a theoretical example, if an authority says in April 2022, “We’re going to subsidise this company by not having them pay a certain kind of tax,” it does not have to put that on the database until the year after it appears on a tax declaration. It can be made in April 2022, it can appear on the tax declaration first in April 2023, and there would be no requirement to upload it to the database until April 2024, which is almost two years after the subsidy was made. By that time, an organisation that had been egregiously damaged by the subsidy would have sunk—it would have gone under.

--- Later in debate ---

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The hon. Lady makes some very fair points, but to be fair to the Government there are requirements under clause 37(6) for the business to keep records of the subsidies received and report them. That is probably in many ways more practical. That subsidy might be given to all kinds of different subsidiaries of that particular enterprise and therefore, even if she wanted local authorities to determine what they had received in the past, it would potentially be difficult to do so by checking against the database. It makes sense to give the business some responsibility for recording that.

[Kirsty Blackman]

Actually, what the legislation does is to give the business a responsibility to keep the letter. It does not give the business much more responsibility, in my mind, although I will go back and have a look at the clause the hon. Gentleman points me to. I think having the subsidy on the subsidy control database would make all the difference, but if he wishes to come back in, he can.

[Kevin Hollinrake]

Clause 37(6) states:

“The enterprise must keep a written record detailing—

(a) that it has received a subsidy,

and

(b) the date on which it was given, and

(c) the gross value amount of the assistance.”

That to me indicates that it must keep a full record of what it has received.

[Kirsty Blackman]

Once again, yes, it has to keep a full record, but it does not have to show Aberdeen City Council that record. There is no requirement on the company to be transparent about that record; there is a requirement to keep it, but not to share it. Having it on the database or adding the requirement to share that record, should a granting authority ask in advance of granting a subsequent subsidy, would make the difference we are asking for.

However, that does not fix the issue in relation to transparency of data and ensuring that the database and the scheme are working properly. This was mentioned in the witness sessions. We need to know whether this is working, and we will only know if it is working if we have an idea of the subsidies being granted, even if they are below the MFA threshold.

I said I would come on to the definition of interested parties. Amendment 12 adds devolved Administrations to the list of interested parties. Again, we discussed this at some length in Committee and the Minister gave some assurances. I shall quote a couple of questions that I asked and the response that the Minister gave. I said:

“Does a devolved Administration’s interests include indirect interests?”

I also asked:

“What if a number of organisations in their jurisdiction are potentially affected by a subsidy given?”

The Minister answered:

“Yes. I would say that is a direct interest rather than an indirect interest. Public authorities, including devolved Administrations, may be interested parties.”––[Official Report, Subsidy Control Public Bill Committee, 16 November 2021; c.308-309.]

I am glad that he gave some clarity. It is sort of because of the way the questions were asked that the Minister’s response was slightly woolly. I would very much appreciate it if, when he responds to the debate, he could make it absolutely clear from the Dispatch Box that, in cases of indirect interests, devolved Administrations are considered as interested parties.

Let us say that a subsidy was given somewhere else in the UK, or even in Scotland, and that subsidy negatively affected the chances of seven businesses in Scotland. I think that the Scottish Government should be able to bring a request to the tribunal to say that that needs to be looked at and that they believe that that is an issue. Under the definition of interested parties, it is only those people whose interests have been affected. The Scottish Government’s interests would not have been directly affected by that, but they would have been indirectly affected. I was trying to tease out from the Minister that he believed that, definitely, the Scottish Government or any of the other devolved Administrations could bring a challenge on behalf of organisations within their area. I am quite happy for that to be limited to devolved competences even. However, if they are not in the Bill as interested parties, we very much need that commitment from the Minister. If they are not in the Bill as interested parties, why is the Secretary of State included in the Bill as an interested party? If the definition is wide enough to cover all those areas—

[Kevin Hollinrake]

The Secretary of State is not necessarily an interested party, which is why he needs to be named in here; he might not be affected. The hon. Lady’s point about being directly or indirectly affected is covered under clause 70(7), which says that an interested party means

“a person whose interests may be affected”.

That could be directly or indirectly, surely.

[Kirsty Blackman]

We discussed this at length, with a lot of banter, in Committee. But I have a concern that the provision does not say “directly” or “indirectly”. It does not make that as clear as it could. A clear statement from the Minister at the Dispatch Box would give me a level of comfort. I do not think that it is the intention of the Government to exclude the Scottish Government, the Welsh Government, or the Northern Ireland Assembly from making these challenges, but I think that the Bill is written in a woolly enough way that it potentially accidentally excludes them.

[Jim Shannon]

The hon. Lady has outlined the issue very well on behalf of the Northern Ireland Assembly. This has to be an equality issue. If it should happen that some other part of the United Kingdom affects businesses in my constituency or in Northern Ireland, equality is part of that. Should not the Minister and the Government address the issue of equality for all those reasons as well?

[Kirsty Blackman]

I completely agree that there is not a level of parity here. There should be because the Government recognise that the Scottish Parliament has responsibility for some things—the Government recognise that most days. They recognise that in relation to the other devolved Assemblies, too. This is not about any of those Administrations having a veto; it is simply about the right to refer this to the Competition Appeal Tribunal in order for it to be looked at. It is not about any of those authorities being able to cancel subsidies, or to veto them in any way. It is simply about being able to raise that challenge. It is something that was raised by the witnesses in the Bill’s evidence sessions, so it is not something that I have just somehow invented, or that the Welsh Government have invented, or that the Scottish Government have invented. It is a real worry for people, so the more the Minister could say on this the better.

I will not speak for too much longer. I have just one more amendment—amendment 11—to cover. There are two schedules—schedules 1 and 2—in relation to the subsidy control principles. The subsidy control principles are set in the Bill, and it is clear that they are the principles that authorities need to look to in guiding the decision making about giving subsidies. There are two schedules: one for the general principles and one for the environmental principles, which relate specifically to subsidies around energy and environmental matters.

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[John Penrose]

That is absolutely right. Although I appreciate that there is a technical distinction between amounts of subsidy and amounts of general local authority spend, it is a very strong comparison. If it is worthwhile recording £500 spend on anything by a local council, why are subsidies so special and why should they be different? If anything, because of the scope for potential cronyism and other concerns, we should be tougher on subsidies than on other kinds of spending. Let us at least make the thresholds the same at £500, and then there can be no concern or worry about it.

The first collection of amendments is about the amount. The second collection of amendments, about which we have already heard a bit from the hon. Member for Aberdeen North, is about speed. As I have mentioned, in today’s digitising economy, publishing details of a subsidy potentially almost two years later, or even six months later, could be way too late. A company could have gone under if it had been faced by a successfully heavily subsidised competitor in its local area. Jobs will have been destroyed, wealth will have been destroyed, investment will have been forgone and, most importantly, the reputation of that local economy as a free, fair, sensible level-playing-field place to do business will have been damaged.

Clearly speed matters today, and it will matter more and more as our economy moves faster through digitisation. It makes no sense at all, therefore, to allow six months, and in some cases even longer, for those subsidies to be declared. When someone dishes out a subsidy, a letter has to be sent to the person receiving it, so in most cases they could put the subsidy on to the database at the same time—they could probably do it electronically if they had the right interface. I am suggesting that that could happen within a month; it could probably happen within days, but let us be generous and kind, and give people a bit of space.

I will expand on the point about tax-related subsidies. It is true, as we heard, that a tax-related subsidy can take almost two years to be recorded and to become transparently visible under the current proposals. I cannot see any reason why that should be the case, not just for tax-related subsidies but for anything else at all. In general, for most tax-related subsidies, we can do it immediately because we know the value with some certainty right up front. If I am giving someone a subsidy as a reduction on their business rates, I know how much the value of that subsidy is going to be on the day it comes out, so I can put that out on the subsidy database right there and right then. The same goes for most other kinds of tax-related subsidies, such as subsidies on VAT or whatever it may be.

Only for a very small number of tax-related subsidies would there be uncertainty for any length of time. As we have already heard, and I think this is absolutely right, it is perfectly possible to come up with a good estimate to begin with, and I do not think it works—it is not an adequate piece of logic—to turn around and say, “Well, because we don’t know precisely what this particular subsidy amount will be, we should not reveal it at all.” That is making the best the enemy of the good, and the trouble with that, and with saying that we are therefore not going to put anything out, is that we do not end up with the best or the good. We end up with something that is actually pretty dreadful, because we are keeping it secret for up to two years. How does that make sense when, as we have already heard, we can estimate it very accurately? In fact, in many cases these things are done in bands, and we can certainly say, at the very least, that it will be roughly in this or that band. Even if we get it wrong, we can still correct it later, and people know it is there, what it was and roughly how much it will have been. That will have allowed challenge, if necessary.

[Kirsty Blackman]

Specifically on the issue of uploading subsidies to databases and challenging such subsidies, the only way in which a subsidy will be overturned anyway is if the subsidy was given incorrectly—if it was against subsidy principles or was distortive in some way—so surely this has no effect on the vast majority of subsidies, except that it means they will be uploaded much more quickly. However, in the case of subsidies that are wrong, bad and going to cause problems, surely the quickest possible time is better so that we would be able to see them.

[John Penrose]

That is absolutely right. It is not just about whether a particular subsidy breaches those principles, but as the hon. Member rightly points out, it is also a question of whether we can then spot that a pattern of cronyism is emerging. If a particular local council was giving out grants to its mates, we could see that much faster. That may not be breaching the subsidy control principle, but you can bet your bottom dollar that people would want to know about that and that the most almighty stink would be created.

That brings me on to the final group of my three groups of amendments, which is about the ability to challenge and check individual items or individual examples of a subsidy within a broader subsidy scheme. At the moment, if someone registers a subsidy scheme under the terms of the Bill, dishes out subsidies under that subsidy scheme and then basically ignores the terms of the subsidy scheme or misapplies them in some terrible way—because of cronyism, because they are just doing a bad job, or even fraudulently—nobody, under the terms of the Bill, can challenge the individual decisions being made. That cannot be right, and it seems daft. All I am saying is that we need to be able to challenge individual examples within a broader scheme, otherwise this transparency mechanism or challenge mechanism will be fundamentally flawed.

That is the modest proposal. So far, I have not heard a single argument that unpicks the logic of that. As far as I can see, there are three Departments of Government with a dog in this fight. There is Lord Frost, who is in charge of the Brexit dividend, and he ought to be thoroughly in favour of this because of the opportunity it offers. There is the Secretary of State for Business, Energy and Industrial Strategy—he was here briefly just now, and I hope he will be back later—who is of course a good free marketeer and is thoroughly committed to improving productivity, so he should be in favour of this, too. Finally, there is the Chancellor of the Exchequer, who is the guardian of taxpayers’ money. As I have said, we should be taking pride in the fact that we are one of the least heavily subsidising economies in the developed world, and we certainly were when we were part of the EU, so I cannot see that he is going to be objecting to it either.

As I sit down, I therefore just ask the Minister to please explain the logic behind opposing any of the arguments that not just I but others have been advancing. Will please explain who on earth thinks this is a bad idea, because I cannot find them or see them and I do not think anybody knows who they are?

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[Kirsty Blackman]

I want to start with a few thanks. I thank staff member Dr Jonathan Kiehlmann and my hon. Friend the Member for Aberdeen South (Stephen Flynn) for their assistance on the Bill. I also thank—this shows the seriousness with which Scotland treats this—Cabinet Secretaries Kate Forbes, Ivan McKee and Mairi Gougeon, who have all taken an interest in the Bill and in trying to improve it. We recognise that it is an incredibly important regime and we have significant concerns about it. I wish briefly to comment on amendment 19, which we voted for. We did so not because it was perfect but because it would have made the Bill marginally better than it is currently. So the amendment is not something we would necessarily back wholeheartedly, but it is better than the current Bill as drafted. I thought it would be best to make that clear.

The three major concerns we continue to have about the Bill relate to the inclusion of agriculture. Agriculture is not included in subsidy control regimes elsewhere and I do not believe we have heard enough justification from the Minister or the Secretary of State to understand why they have chosen to include agriculture in this scheme. We believe that the scheme is not transparent enough. Indeed, the hon. Member for Weston-super-Mare (John Penrose) tabled a number of amendments to that effect, as did a number of other colleagues across the House. There are significant concerns about the transparency of the subsidy control database in particular, but that also applies to the subsidy regime more widely. I hope that the Government will take these things into account and will consider them as the Bill moves on to further consideration in the other place.

The last issue we have is about climate change, which should form part of the key principles. I know that the principles can be updated, including by future Governments, but, for the Bill to stand the test of time, reaching our net zero targets should have been put at its front and centre. I appreciate the Opposition tabling an amendment to that effect. The Liberal Democrats did the same, as did we. This is so important and we feel that the Minister and the Secretary of State are abdicating some responsibility on that.

Lastly, I wish to thank the Minister for his clarification in relation to interested parties. I very much appreciate him saying what he said at the Dispatch Box on the role of devolved Administrations when it comes to interested parties. That will make a difference to the operation of the Bill and I appreciate that he did that.