United Kingdom Internal Market Bill

Lord Randall of Uxbridge Excerpts

Report stage & Report stage (Hansard): House of Lords & Report: 1st sitting & Report: 1st sitting: House of Lords
Wednesday 18th November 2020 Lords Chamber

[Lord Whitty (Lab) [V]]

My Lords, I have added my name to Amendment 11, in the name of the noble Baroness, Lady Boycott. She has her name down to speak later but has indicated to me that, because of other appointments, she might not be able to make it. She has therefore asked me to say a few words—more than I might otherwise have done.

I recognise that the amendment in the name of my noble friend Lord Stevenson lists a number of public interest exceptions that should be put into the Bill. There are good arguments for many or all of them, but surely, in this crisis period for our climate and our natural environment, the protection of the environment must be seen as an exception. It is one where, for example, the Welsh Government could take a lead, with different regulations on, for example, air quality limits, pollution in rivers, noise and dangerous chemicals that are tighter than those adopted by the UK, or English, Government.

The noble Lords, Lord Anderson and Lord Young, have both set out examples of where the devolved Administrations have indeed taken that lead. If the Government oppose long lists, they ought at least to accept a short list of environmental protections, because they are speaking with forked tongues on this. We have had that today with the 10-point plan for a long-term strategic approach to a green economy. We have had the green industrial recovery plan and commitments made for houses to be fuelled entirely by offshore wind. We have also had big commitments to green spaces and other environmental objectives. And, of course, the Government are trying to impress the world—rightly now—on our commitment when we take over to lead the COP 26 in Glasgow next year.

However, we also know that, historically, free trade is regarded as being breached when environmental protection regulations have been opposed by the WTO and in free trade agreements around the world. There is a global change in attitude towards this, and indeed to some of the WTO rules, but it would be absolutely absurd if, to preserve an internal market within the United Kingdom, we prevented progress on environmental protection by the devolved Administrations or by England alone in the name of having complete and absolute internal market access rather than mutual recognition of different requirements.

If a regulation, a tax process or a planning approach that preserves environmental protection aims is to be regarded as a barrier to trade in our internal market, we are going against the trend of the whole of the rest of government policy and actually going against what is a rather slow but nevertheless clear intent of how world trade will have to be conducted in the age of the Paris climate agreement and the need to reduce carbon and greenhouse gas emissions. If there is one public interest limitation, surely it ought to be environmental protection, and that is what would be provided by the amendment in the name of the noble Baroness, Lady Boycott, which is also signed by myself and the noble Lord, Lord Randall.

[Lord Randall of Uxbridge (Con) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Whitty. I too want to speak in support of Amendment 11, in the name of the noble Baroness, Lady Boycott, which I was pleased to add my name to. We have just heard from the noble Lord, Lord Whitty, who also signed the amendment and has astutely and eloquently put the case for it.

I apologise that I was not able to join your Lordships’ deliberations in Committee, but, from reading Hansard, I see that my noble friend the Minister stated:

“The current list of legitimate aims will … align in many cases with the protection of the environment … expanding the list … beyond the current list would increase the grounds on which goods from one part of the UK could face discrimination in another … but with each addition steadily eroding the benefits that we all enjoy of the UK internal market. Expanding the list would also make discrimination easier to create and implement within the internal market.”—[Official Report, 28/10/20; col. 338.]


With respect, I disagree with that. Amendment 11 adds the protection of environmental standards to the shortlist of what constitutes a legitimate aim. It is imperative that, at a time when most acknowledge that we are in a climate and nature crisis, the protection of environmental standards should be considered a legitimate aim—indeed, as the noble Lord, Lord Whitty, said, it is probably the most important legitimate aim—and that we can do so without it being treated as indirect discrimination.

As we have also heard today, the Government have unveiled a series of measures that are ground-breaking and very ambitious, and I do not doubt that the Government take environmental standards very seriously. I hope that this amendment will give them an opportunity to give more power to their elbow. This, I believe, is a very achievable ask and I hope that my noble friend the Minister will agree that it will help to ensure that the internal market supports the achievement of environment and climate goals and targets at this crucial time.

[The Deputy Speaker (Baroness McIntosh of Hudnall) (Lab)]

I call the next speaker, the noble Baroness, Lady Boycott, although I am not completely convinced that she is with us. No, she is not, so I will move on to the next speaker, the noble Lord, Lord Wigley.

United Kingdom Internal Market Bill

Lord Randall of Uxbridge Excerpts

Report stage & Report: 2nd sitting (Hansard) & Report: 2nd sitting (Hansard): House of Lords
Monday 23rd November 2020 Lords Chamber

[Lord Whitty (Lab) [V]]

My Lords, I added my name to the amendment tabled by the noble Baroness, Lady Boycott. She has made most of the points that I was going to make, so I will be reasonably brief.

If there is any area that should override the assertion of a single UK market, particularly on mutual recognition, it must be the ability of each of the jurisdictions to go faster on our environmental commitments, particularly on the horrendously difficult task of meeting our carbon and greenhouse gas emissions targets and adapting to climate change. That is the key point in this amendment.

Northern Ireland is in a different situation, since it will still be within the single market of the EU, but if, for example, the Welsh or Scottish Governments wished to go faster in limiting carbon emissions or providing alternative energy sources, and that required specific legislation within those areas, then it would be perverse for the provisions of this Bill and UK internal market rules to prevent that. There are other environmental issues—the noble Baroness, Lady Boycott, has referred to single-use plastics, which are clogging up many ecological habitats and having an effect on biodiversity and on the oceans—which might perhaps also be areas of exception.

However, my main point is on climate change. At present, the Bill does not recognise the prime importance of going faster—and, if necessary, going faster in one part of the United Kingdom than another—to achieve our climate change aims. At present, the Bill allows legitimate interests for health and pest control. These are important issues, but not as important as climate change. This single-issue amendment ought to be written into the Bill. We need a race to the top in environmental standards, not to enforce a race to stick to the bottom.

The proper functioning of the framework agreements would probably provide some way of resolving any conflict on these issues, but without framework agreements being referred to in this Bill, we need something such as the new clause that we are proposing here. As my noble friend Lord Hain said on the previous amendment, by keeping the Bill as it is, we are acting in a more rigid and top-down way than the EU single market.

Climate change needs a particular reference in this Bill, and this is the easiest way to do it in this section. I strongly support it being written in.

[Lord Randall of Uxbridge (Con) [V]]

My Lords, I will speak briefly to Amendment 23, in the name of the noble Baroness, Lady Boycott, to which I was pleased to add my name. We have just heard from the noble Lord, Lord Whitty, who has also signed it, and he put his finger on the case for this amendment, as did the noble Baroness herself.

As the noble Baroness, Lady Boycott, said, this amendment would ensure that there is a derogation from the market access principles of mutual recognition and non-discrimination which would allow all four UK nations to put in place proportionate measures to protect the environment and tackle climate change. I echo completely what she and the noble Lord, Lord Whitty, said. We do not need to emphasise the crisis that we are facing with climate change and the environment. It is the big issue of our time.

There are concerns that without this derogation there is a potential for stifling innovation, as there will be no incentive for a nation to set higher environmental standards for goods given that it will have to sell goods from the other three nations which may have been produced to a lower standard. I make no apology for repeating the example of a possible consequence if we do not include this amendment, and I want my noble friend the Minister to put my mind at rest on this.

A potential ban on peat for horticultural purposes is a good example, and something that I have been campaigning on for some time. It is an issue that affects climate change and biodiversity. If any of our four UK nations decided to ban the sale of peat for horticulture due to its impacts on biodiversity and emissions, and to preserve our precious peat bogs, what would that mean for another part of the UK that had, at that time, decided not to go down that line? Can my noble friend confirm that, as I read the Bill as currently drafted, the far-sighted nation that decided to ban peat would still have to sell peat from elsewhere in the UK? I am no expert on this, so can my noble friend the Minister also clarify what the situation was while we were still within the EU? I have often heard that one of the advantages of leaving the EU was being able to do exactly what we wanted.

I use that as an example, but I could have given a number of other similar scenarios, such as single-use plastics. I know well from my time as a special adviser to the previous Prime Minister that the devolved countries do not always move at the same speed on environmental measures. I do not want their ambitions to be stifled, however accidentally.

I do not want to detain your Lordships over this excessively, as we have heard already from several others, but I will just say this: without insurance, I regard this as a very serious flaw in the Bill.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, I speak to Amendment 22, in the names of the noble Lords, Lord Wigley and Lord Hain, and Amendment 23, in the names of the noble Baroness, Lady Boycott, and the noble Lords, Lord Whitty and Lord Randall of Uxbridge. I too will be brief, because those introducing the amendments—which the Green group support—have done a great job of explaining the urgent need for them both.

Amendment 22 deals with public procurement. I spoke quite extensively—for three minutes, anyway—on a statutory instrument on this issue on 16 November, so I will not go on at great length. I will just point out that we have seen many states in Europe make great progress on this issue, and, as the noble Lord, Lord Wigley, set out, Wales has also made significant progress—perhaps the most progress of the nations of the United Kingdom. We have also seen great progress in England for what is known as the Preston model. Public procurement is absolutely crucial for improving the quality of our public health and our environment, for tackling climate change and for supporting small independent businesses. We are setting the model here for what we might hope to be future devolution within England—for Yorkshire, perhaps, and Cornwall, so they should also be able to leap ahead with the resources and powers to do so.

On Amendment 23, as the noble Lord, Lord Randall, just said, it is crucial that no nation in the United Kingdom is held back by others being laggards—and we know which ones that is likely to be. The point of devolution is to allow nations to diverge, to take different paths and to act according to their local circumstances. The noble Lord gave the very good example of peat, something on which we keep hearing promises of action but where we have yet to see the action needed. We hope that we will see real leadership on this and then see the laggards follow.

--- Later in debate ---

[Lord Callanan (Con)]

Again, it is about the difference between sale and use. England can proceed to ban a sale in England but if the sale is allowed in Wales, it could still take place under the mutual recognition principle; but, presumably, use would be prohibited. My letter explains this in great detail.

[Lord Randall of Uxbridge (Con) [V]]

I do not want to labour the point, but I am a little dense on this issue. As I understand it, my noble friend is saying that you could ban the use but not the sale of coal or peat, which is my particular interest. I wonder how that will be affected. I am sorry to labour this point—I am sure my noble friend has lots more important things to discuss—but I would be grateful for any elucidation he can give.

[Lord Callanan (Con)]

My noble friend is essentially right, but it would depend on whether it was legal for the good to be sold in the other nations of the United Kingdom. Again, the difference between sale and use is the important distinction here.