Australia Free Trade Agreement

Lord Morris of Aberavon Excerpts

Monday 11th July 2022 Lords Chamber

[Lord Morris of Aberavon (Lab)]

My Lords, I will restrain myself from commenting on the published taxation proposals of candidates for the Conservative leadership, save to say that Charles Dickens might have wickedly asserted that there was the smell of an Eatanswill election. I am pleased to tell the House that I am not aware of any personal taxation temptations in this agreement. However, this is an important agreement with Australia—the first trade deal, from scratch, post Brexit.

First, have we prioritised speed of the negotiation at the expense of the UK’s leverage to negotiate a better outcome for the environment? Could we have had some influence on Australia’s use of coal? Have the agreement and the report by the committee on which I served been overtaken by a change of Government in Australia? Will the Government use the joint committee to explore possible changes in the environmental and climate change provisions in the agreement? It is an important issue and the machinery is there, so do they intend to use it?

Secondly, although hitherto the amount of beef inputs to the UK have been small, there is no guarantee that there will not be an upsurge in the future. Are the provisions, criticised by the farming organisations and referred to in a trenchant speech by the noble Duke, the Duke of Montrose, sufficiently robust to deal with what may happen over the next 10 to 15 years? As in the report, I declare my non-financial interests in the occupation and livelihood of many members of my family.

Some Australian commentators have called the agreement a win-win result for Australian agriculture, with some envisaging the prospect of a tenfold increase in beef exports. Proximity and practice have meant that, hitherto, Far Eastern markets have been more attractive to Australia. However, I note a recent 38% decline in beef exports to China for political reasons. Have the Government taken this possibility properly on board? I would not wish, as a former MP and a representative of consumers for 41 years, to be unduly protective, but it is obvious to some that if this agreement is used as a template for an agreement with New Zealand, British agriculture could be adversely affected. It is beyond argument that there is nothing in this agreement for British agriculture, and I am sure that the noble Duke will agree with me on that.

My third point is more specific, on whether the agreement will be used generally for our entry into the CPTPP—the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Will it be the template for general negotiations? Frankly, I am much more concerned about the dangers of a substantial increase in New Zealand lamb inputs, however desirable this might be, to cushion gaps when our lamb is not available. As always, the danger lies in untimely, unregulated excessive imports. In the post-Brexit era, there is a case for a proper agricultural policy on imports which would both ensure the prosperity of British agriculture and take advantage of cheaper imports for the British housewife. I assert that livestock rearing is more important in the devolved nations than in many other parts. I compare the size of the average farming unit in the antipodes with those in this country; the advantage of size and climate should make us wary of uninhibited imports.

I again mention my dissatisfaction expressed in earlier debates with the degree and manner of the Government’s involvement with the devolved Governments—the noble Lord, Lord Kerr, has referred to this already—and repeat my rejection of the Government’s defence for not forwarding the views of those Governments because of the danger of jeopardising the Government’s negotiation with other parties. The committee has therefore been driven to seek the views of the devolved nations directly.

It is not on to operate in this way, when agriculture has been devolved and when any negotiations in this field can have a tremendous effect on the culture of the nations that I am interested in. The Government must start afresh by taking the views of the devolved nations into account. If they maintain the defence that that would jeopardise their negotiating position, could we not be told in confidence, and then the committee could make its proposals known so that the House could take a view? There is no basis whatever for this defensive attitude.

My last point is to welcome the Government’s commitment to produce monitoring reports of the agreement every two years, as well as an evaluation report after five years. I hope the House will consider my reservations about some aspects of this agreement.

--- Later in debate ---

[Viscount Younger of Leckie (Con)]

My Lords, I start by acknowledging the opening remarks from the noble Baroness, Lady Hayter, who paid tribute to my noble friend Lord Grimstone of Boscobel, as did other noble Lords, including the noble Lord, Lord Liddle, who made some generous comments about him. I, too, regret that he has decided to step down. He worked very closely with many noble Lords in this House to advance and explain the Government’s free trade agenda, and this was acknowledged in the IAC report that we are debating today. He gathered a number of considerable achievements under his belt while working as the Minister for Investment. Notably, he shepherded the Trade Act on to the statute book, and noble Lords, me included, who took part in the debates on that legislation know that was no mean feat. Beyond his work in Parliament, my noble friend will leave a lasting legacy through his efforts to transform the Government’s approach to investment. The success of the inaugural Global Investment Summit, not to mention the significant sum of overseas investment secured under his tenure, offer no better evidence of his effectiveness in the role.

I suppose that today I come in from extra long leg to bat. I shall be batting but I shall, I hope, be doing some bowling—and, yes, I spent some of the weekend reading through this excellent report. I join other noble Lords in thanking the noble Baroness, Lady Hayter, chair of the IAC, for securing this debate and providing the opportunity to discuss this important subject. I also wish to thank her for the report.

Let me start by saying that I am pleased that the committee has welcomed this FTA today. It is good to have some reasonably positive feedback, including from the noble Lords, Lord Kerr and Lord Oates, and perhaps more effusively from my noble friend Lord Robathan, the noble Lord, Lord Bilimoria, and my noble friend Lord Udny-Lister. I am particularly pleased that the committee has formed the view that the Department for International Trade has conducted scrutiny beyond the statutory commitments set out in the Constitutional Reform and Governance Act. I place on record the positive and constructive engagement that the IAC has had with DIT, culminating in the exchange of letters in May, which pulls all the Government’s transparency and scrutiny commitments into one document.

I shall just address some points made about the devolved Administrations, as raised by the noble Lords, Lord Kerr and Lord McNicol, and the noble and learned Lord, Lord Morris. DIT officials continue to work closely with their colleagues in the devolved Administrations to ensure that their views are considered in the formulation of the UK’s trade policy—I make that opening statement. Our chief negotiators provide regular updates on the progress of negotiations. For example, during the Australian negotiations, our chief negotiator, or their deputy, briefed devolved Administration officials multiple times on all aspects of the programme. That is in addition to sharing draft texts for consultation with the devolved Administrations, regular policy forums at official level and discussions at ministerial level. I am sure I could give some more reassurance on that point.

[Lord Morris of Aberavon (Lab)]

Does the Minister agree with the statement made a few weeks ago by the noble Lord, Lord Grimstone, that the devolved Administrations are dissatisfied with the manner in which negotiations have been conducted and their involvement?