Economic Activity of Public Bodies (Overseas Matters) Bill

Debate between Kit Malthouse and Lisa Nandy

2nd reading
Monday 3rd July 2023 Commons Chamber

[Lisa Nandy]

South Africa is obviously a different case, but the point my hon. Friend makes remains and is well founded, because this Bill concentrates the decision making and judgment of hundreds of public bodies in the hands of just one person.

[Kit Malthouse (North West Hampshire) (Con)]

The hon. Lady talked about pensions, and there is an additional point. Whatever people may think of BDS or of an investment strategy that is ethical or otherwise, the money that sits in the local government pension scheme—and I am a member of the local government pension scheme—is the members’ money, my money. It is not the Government’s money to direct in one way or another; it belongs to the pension holders, and it is surely for them and those to whom they delegate its management to decide how it should be deployed. As she rightly says, if the Government are getting into the business of managing my pension money and I lose money because of decisions made by the Government, presumably I should be compensated.

[Lisa Nandy]

This is precisely the question that the Government have yet to answer, but we hope that will be forthcoming during this debate. I would add to what the right hon. Gentleman said that the local government pension service is already under a fiduciary duty to take prudent investment decisions based on an assessment of the financial consequence of a number of matters, including environmental and social governance, and when it divests on the basis of non-financial factors, it should follow the Law Commission direction that any financial impact should not be significant and that the decision would likely be supported by scheme members. I am not sure what happens when a local government pension fund is taking decisions that would not be supported by scheme members. We are talking about the pensions of 6 million people in this country, and I think these are important questions that the Government must answer.

I want to turn to one of our chief concerns about this Bill, which is the concentration of the decision making and judgment of hundreds of public bodies in the hands of just one person and the implications of that for some of the most persecuted people in the world. There will be significant effects on the Uyghur in Xinjiang, who are suffering such serious crimes against humanity that the Biden Administration have recognised it as genocide. The Secretary of State will have read the impassioned letter from those groups in The Times about the effects of this Bill. Surely we cannot abandon them to their fate. For the Rohingya in Myanmar, for the Tamils in Sri Lanka and for countless others, the concern is that this bad law prevents not just economic action to uphold human rights everywhere, but solidarity with some of the most persecuted people in the world.

As was said earlier, the Bill goes further and clause 7 grants to the Secretary of State or other relevant body the power to issue notices requiring all information to be handed over, if they suspect that a prohibited statement expressing a moral or political view about foreign conduct is in the process of or about to be made, including information in subsection (8) that would normally be protected by legal privilege. Let me clear about the effect of that: this hands over to the Office for Students, the Secretary of State, and the Treasury, greater powers than those available to the security services. I know there are Members on both sides of the House who are deeply troubled by that, and those who are not should consider for a moment how they might feel about this Bill if their party was not in power.

We should not be here. We have long fought for legislation to tackle what is a real problem, and we are determined to give the Government the opportunity to do the right thing. That is why today we are proposing an alternative that allows the Government and this House to keep our promise to tackle a long-standing issue of deep concern to the Jewish community, but avoids tearing up our commitment to human rights, local democracy and free speech, in a Bill that does not even appear to tackle the very problem it seeks to solve.