G7 and NATO Summits

Lord Newby Excerpts

Thursday 17th June 2021 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, had we heard the Prime Minister make his Statement in the other place, we would have heard the great joy with which he did so and how wonderful he thought the summit was, but we need to reflect on this. The Prime Minister hosted his first summit as the country basked in some much-needed sunshine and the England team delighted us all with their first group-stage win. The BBC reported that the US President raised Northern Ireland in a side meeting, and finance Ministers discussed global tax arrangements. That is not about 2021; the same issues were raised back at the G8, as it was then, in 1998, but the similarities end there. The differences between the Carbis Bay and Birmingham summits are stark, not just because it is now the G7 meeting.

The hope that we would see agreement on meaningful, concrete plans to tackle the biggest global challenges disappeared as the Prime Minister’s strained relationships with world leaders took centre stage. Not for the first time, the Government overpromised and underdelivered. There is no global vaccination plan and no action agreed on the climate crisis. At every step, Boris Johnson’s broken promises have cost us friends—but they also cost us our influence.

Bringing the pandemic to an end must be the priority. That means an effective, worldwide vaccination programme. While the virus circulates anywhere it is a threat to us all everywhere, so we welcomed and were optimistic about the Prime Minister’s promise to vaccinate the entire world, as he said, by the end of 2022—only to yet again be disappointed as that turned out to be unsubstantiated rhetoric, with no clear plan to deliver it. There is no funding formula, no operational strategy and no information on where the 11 billion doses of the vaccine would come from. We should have seen an immediate increase in global support for health services in developing countries for any plans to be truly effective.

The shadow Secretary of State for International Trade, Emily Thornberry, has written to the Prime Minister on those issues. I hope that the noble Baroness the Leader of the House has had an opportunity to see that letter to the Prime Minister and that he has read it. The 10-point plan my right honourable friend outlined addresses the fundamental problems about how we can produce the volume of vaccines needed, alongside making preparations for the infrastructure to deliver it. It would ensure we were better prepared for any future pandemic. Yes, it is expensive, but the human, social and economic costs of not doing so are far greater.

Ahead of COP 26, the G7 could have set the groundwork for an ambitious green recovery, leading global support across the world to tackle the climate crisis and finding common ground on climate finance. Again, the Prime Minister fell short: nothing was agreed on national determined contributions and there was nothing to support mitigation and adaptation in the world’s poorest countries. The complete failure of the green homes grant here at home and the impact of aid cuts on climate projects undermine our climate credibility and leave us recklessly out of step with our allies in the G7.

The noble Baroness the Leader of the House will be aware that I have repeatedly asked when, or indeed if, there will be a vote in Parliament on aid cuts. I have had no success, even though this is about the Government breaking their own legislation. This time I will be more specific about the effects of those cuts, because the Prime Minister’s Statement, made yesterday, refers to girls’ education. He clearly recognises the importance of the issue. Given that, and following the cut in the aid budget, will the Government now publish the full details of the cuts expected for such girls’ education programmes? This is just in the interests of transparency, so we know the exact impact they will have.

While Northern Ireland may have been missing from the communiqué and the Prime Minister’s Statement to Parliament, it was not missing from the meetings. Let us be clear: the protocol was not imposed on us but negotiated by this Government. Mr Johnson’s claim to

“do whatever it takes to protect the … integrity of the UK”

is meaningless unless the Government step up to find serious solutions to protect the precious Good Friday agreement. In refusing to do that, the Government are not only shirking their responsibility but damaging our reputation with our strongest allies. We have repeatedly suggested that a veterinary agreement which recognises the unique circumstances of Northern Ireland would remove the need for almost all the checks. Ministers must now show some leadership.

President Biden’s proposal for the global minimum corporation tax is a once-in-a-generation opportunity to stop tax avoidance and the undercutting of UK businesses which pay their fair share. This could provide us with billions of pounds in extra tax revenue, yet the Government have spent the last few weeks watering down proposals which could have put an extra £131 million a week into our NHS and other services for the public’s benefit. Can the noble Baroness tell the House why the Government stood in the way of this proposal?

Although Northern Ireland was not mentioned, the Australian trade deal was. We obviously want to see good trade deals, but we also need to see the details and not just the Government patting themselves on the back. I seek two points of clarification on that trade deal. First, there seems to be no mention in the Government’s agreement in principle of environmental or animal welfare standards. The noble Baroness will understand why it is so important to the farming community to ensure that our high production standards are not undermined. Can she provide any assurances on this? Secondly, can she also guarantee that, prior to ratification, Parliament will have full ratification well in advance and a clear and accurate impact assessment?

On a more optimistic note, the NATO summit in Brussels took some welcome steps towards future security in Europe and the north Atlantic. This underlines exactly why the alliance is so important to us. A collective understanding of new security threats, a recommitment to Article 5 deterrence and an emphasis on climate are each integral to global security and stability. We are also pleased that the leaders recognise the challenges that Beijing poses to global security and stability, so can the noble Baroness now detail and provide more information on what strategic actions NATO will agree in relation to China?

In a world of democracy under pressure, and as the US leads allies in facing the challenges posed by China in the Indo-Pacific, the UK’s military leadership in Europe is more important than ever. Having cut the British Army by a further 10,000, however, we are left not only unable to provide regional leadership but out of step with our allies. Again, the UK Government were unable to provide the necessary leadership or direction that we should be in a position to do. With that in mind, does the noble Baroness regret that the Government have broken their election pledge and are now cutting our Armed Forces by 10,000?

In conclusion, it has been 23 years since the Birmingham G8. International co-operation remains our most effective tool for global progress but the Government have to be ambitious, and that is what was really lacking from this summit. We could have enormous influence on the world stage, but that is a choice. We can do that only if we have the leadership to turn our values into action.

[Lord Newby (LD)]

My Lords, I suspect that, for many people, the sight of the G7 leaders going about their business in a professional and businesslike manner in Cornwall was a great relief after the chaos of the Trump years. The 25-page long White House communiqué, which covers most of the world’s most pressing problems is, at first sight, extremely impressive. Any lingering concerns are not so much to do with the institution—to coin a phrase, “the G7 is back”—but over whether the specific pledges made are substantial enough to meet the challenges the communiqué identifies.

Before coming to the G7, the Prime Minister made great play in his Statement of signing the New Atlantic Charter with President Biden. As noble Lords will be aware, the first Atlantic Charter, signed in 1941, led to the formation of the United Nations. Could the noble Baroness inform the House of any single, specific initiative—large or small—she believes or hopes will flow from the new charter? If she is unable to do so, could she explain why the charter should be seen as anything other than a mere PR stunt?

On the summit itself, the Government very sensibly chose to steer their deliberations by commissioning the noble Lord, Lord Stern of Brentford, to set out the scale of ambition they should adopt. His report, G7 Leadership for Sustainable, Resilient and Inclusive Economic Recovery and Growth, sets out a definitive agenda for action on all the key issues the summit addressed. The communiqué simply thanks the noble Lord, Lord Stern, for his efforts, but sadly fails to rise to the challenges he sets. Take just three examples.

First, on Covid vaccines, the noble Lord points to the urgent need to close the £20 billion funding gap for COVAX. The summit committed to only a small fraction of that. Will the UK Government not only redouble their commitment to make vaccines available to those in the rest of the world who need them most and can afford them least, but commit to diverting surplus vaccines in the UK, and do so in the speediest possible fashion?

Secondly, on climate change the noble Lord, Lord Stern, makes the case for a doubling of climate finance and for a commitment to go beyond the $100 billion target to help developing countries to decarbonise. Such a commitment is lacking in the communiqué. Does the noble Baroness accept that, by cutting overseas development assistance, the Government significantly undermined the prospect of getting the necessary funding into developing countries, and in doing so, have made it much less likely they will agree to ambitious decarbonisation targets at COP 26?

Thirdly, on girls’ education, the communiqué commits to the target of getting 40 million more girls into school by 2026, which is terrific. Can the noble Baroness therefore explain why the Government have cut their bilateral support for girls’ education in the poorest countries by 40%? Can she explain whether the funds the Government have announced for the Global Partnership for Education are new money or simply a new announcement of old money?

The communiqué covers an extremely wide range of issues, but one final issue leapt out of the page for me. The text praises the

“incredible contribution of caregivers in our societies … and the importance of improving decent working conditions for these caregivers”.

What improved provision do the Government have in mind? Will they, as a start, commit to improving the provision of respite care so that carers, who are increasingly at the end of their tether as Covid restrictions continue to affect them, will get at least some relief from the very onerous daily burdens they carry?

The Prime Minister includes in his Statement reference to the trade deal with Australia. Will the noble Baroness confirm that the absolute maximum benefit this trade deal could conceivably deliver equates to one penny per person per week? Does she accept that the cost of this derisory benefit will be overwhelmed by the damage the deal threatens to do to our livestock industry—particularly in upland areas—and that the potential increased access to Australia for young people is frankly risible compared to their reduced access to live, work and study in Europe as a result of Brexit?

The Statement very wisely ignores the unseemly row on the margins of the summit around the operation of the Northern Ireland protocol and perhaps that is a matter for another day. But may I remind the noble Baroness that the single most important ingredient for conducting summits and international affairs successfully is trust? Through his unwillingness to stick to international law and his track record of breaking his promises, this Prime Minister has squandered it. Until it is rebuilt, our influence on the world stage will remain seriously impaired.

[The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)]

I thank the noble Baroness and noble Lord for their comments and questions. They both rightly asked about vaccinations and, as they will know, G7 leaders committed to providing at least a further 1 billion doses to the poorest countries to help vaccinate the world by the end of 2022 through dose sharing and finance. The G7 will share at least half of these by the end of 2021. We have committed to providing at least 100 million surplus Covid vaccine doses to the rest of the world within the next year and 5 million will be shared by the end of September, with another 30 million by the end of 2021.

The noble Baroness is right that sharing supply, boosting manufacturing and funding the COVAX scheme all have critical roles. That is why G7 leaders talked about, and want to take concrete actions to overcome, bottlenecks and want to boost manufacturing so that we can increase the supply. The vaccines we will be providing will be across all our supply: AstraZeneca, Pfizer, Janssen and Moderna. We will be working with leaders to continue to ramp up that effort.

Both the noble Baroness and the noble Lord rightly raised climate change and the work done on that. Commitments were made at the summit. Most G7 countries will be reducing emissions by more than half by 2030, compared to 2010 levels. All countries will formally commit to their specific reductions when submitting their nationally determined contributions under the Paris Agreement. Each country will also set up policy plans and milestones on how they plan to meet these, as we have done with our carbon budget.

Both the noble Lord and the noble Baroness talked about the climate finance commitment and, of course, we were the first G7 member to substantially increase our commitment. At the summit, Canada committed to doubling its climate finance through to 2025 and France, Germany, Japan and the US also agreed to increase their commitments, so there was welcome progress.

Both the noble Baroness and noble Lord talked about girls’ education, which is a priority for this Government. At the G7 summit, the Prime Minister announced that we will be pledging £430 million to the Global Partnership for Education for the next five years, which is our largest pledge ever and an uplift of 15%. At the summit the G7 collectively pledged at least $2.7 billion towards the Global Partnership for Education and we will continue to encourage partners around the world to contribute to that fund.

Both the noble Lord and the noble Baroness asked about the Northern Ireland protocol. We are working to support the Good Friday agreement and urgently need to find solutions to support the peace process and minimise disruption. There was discussion of the protocol with our European partners at the summit. Those discussions will continue because we all want to ensure that we get to a satisfactory resolution.

The noble Baroness seemed to suggest that there had not been much movement on, for instance, global tax, over the last few years. But at the G7 we saw a major breakthrough on the issue that has been under discussion for over five years, particularly back in the historic two-pillar international agreement on global tax reform, to address the tax challenges we face. We are very hopeful that this agreement will provide a strong basis for securing a more detailed and comprehensive agreement among the G20 and OECD in July.

On the Australia trade deal, I am sure that the noble Lord will be delighted to know that the UK-Australia trade relationship was worth £13.9 billion last year and is set to grow under this deal. I assure him that British farmers will be protected by a cap on tariff-free imports for 15 years, using tariff-rate quotas and safeguards. To the noble Baroness I say that, when the agreement is published, there will be a chapter on animal welfare, because we have been very clear that we will not compromise on our high standards. I can also confirm that, of course, formal scrutiny of the ratification process will take place once we have laid the final agreement—this will be once we have undergone legal checks—and the impact assessment will be published with it.

The noble Lord asked about the Atlantic charter. It recognises that the values that the US and UK share remain the same as they were in 1941, including defending democracy, reaffirming the importance of collective security and building a fair and sustainable global trading system. There was a very constructive relationship between the Prime Minister and President Biden, and it was a very successful summit.