Trade Bill

Lord Risby Excerpts

2nd reading (Hansard): House of Lords
Tuesday 11th September 2018 Lords Chamber

[Lord Risby (Con)]

My Lords, it is a great pleasure to follow the noble Viscount, who always speaks clearly and directly. It also gives me great pleasure to add my congratulations to my noble friend Lady Meyer, whom I have known for many years. She brings efficiency, competence and great humanity, as shown in her speech, and I know that all those characteristics will be well represented in her contributions to your Lordships’ House.

It is a personal pleasure to add some comments on the Trade Bill. For some years, I have been one of the Prime Minister’s trade envoys, trying to help British businesses with commercial opportunities abroad. I pay tribute to my fellow trade envoys in both Houses of Parliament, across all parties, who do this voluntarily but with much enthusiasm and, in many instances, considerable success.

I also applaud the Secretary of State for International Trade for his incredible energy and dedication to the task at hand. I can only hope that whatever vitamin pill he takes is made in Britain. He has a strong ministerial team, not least in my noble friend, who brings such immense experience to her role. Her department offers such help and professionalism to me and my fellow trade envoys.

We should remind ourselves of the Bill’s objectives, which are not complicated: to keep important trading partners that currently have relationships with us via the European Union; to collect and share information, where there is certainly much more work to be done because it is imperfect at the moment; to enable us to defend our commercial and industrial sector from inappropriate trading practices; and, most importantly, to establish powers to move from having current trade agreements via the EU to dealing with them ourselves, given that trade policy has been an exclusive EU competence.

Sitting, as I do, on two of your Lordships’ EU committees, we have heard repeatedly, and passionately at times, about the need for British business and our business partners abroad to have a sense of continuity and order during and after the Brexit process. This is all inextricably intertwined. In addition to these key elements of our economic life and prosperity post Brexit, it is crucial that we stand out as a beacon of free, unimpeded trade, upon which historically we have thrived and in which we have been a role model. Although President Trump may have highlighted perceived unfairness and lack of balance in bilateral or multilateral trade architecture, there is a great danger of a destructive, tit-for-tat approach developing. That could seriously undermine the world economy, which has in some measure been sustained by much more open markets over the years as well as low interest rates and generous liquidity.

One of our greatest challenges in this age is the problem of migratory flows from poorer countries. It is so obvious that any attempts further to restrain free international trade would most seriously affect the poorest people on our planet. In this context, I welcome the strong links developing between us and the WTO.

This country has an enviable reputation for transparency and has led the charge against bribery and corruption, whether direct or indirect, which regrettably influences commercial decisions in some countries. However, I should add that, in my role in trade promotion, our firm commitments and tough laws to preclude this are much appreciated and commented on by Governments seeking to tackle this corrosive activity.

One element of our departure from the EU is our participation at present in the Agreement on Government Procurement. It is crucial that we maintain access to global public procurement markets, so I welcome our involvement in and intention to join the GPA after we leave the EU. As many of your Lordships will know, government procurement is a substantial part of the business profile of many of our actual and potential markets.

For some years, I have been the deputy chairman of the Small Business Bureau, trying to encourage a suitable tax and regulatory framework for the sector. However, it is a fair generalisation to say that our economy has been very consumer driven. I express my admiration for and appreciation of the Government’s real attempts to stimulate the small and medium-sized businesses in our country into getting involved in overseas trade activity. Many of our European neighbours have moved on much more successfully than we have in changing the culture of export promotion, particularly with respect to the SME group.

In this context, I want to touch on my personal experience as a trade envoy. In the past few months, we have signed contracts in Algeria, the country of my particular responsibility, to the tune of about $1 billion, mostly in the energy sector but also in the defence sector. This followed a trade show held last year in Algiers, organised largely by our embassy there, where numerous small, superb, defence-related British companies showed their brilliant range of activity.

My final observation is on the role of securing business in situ. Last month, in Cape Town, the Prime Minister announced the most welcome new partnership for Africa, an additional £4 billion programme for UK investment in African countries that will pave the way for £4 billion of private sector financing. That includes £3.5 billion through the Government’s development finance institution, the CDC, and an African investment summit, set to take place next year. This is very important in the context of what we are trying to do to explore new markets.

The House should be very grateful to my noble friend Lady McIntosh for pointing out the importance and efficacy of having specialists—in agricultural products in this case—attached to our embassies. However, I wish to be blunt: the trade promotion grind is often done at a local level. The Prime Minister talked about our national interest. In my view, it is patently absurd that the Foreign Office budget is less than 1/10th of our overseas aid budget. Indeed, the Department for International Trade’s budget is a quarter of that of the Foreign Office. It is totally disproportionate.

Particularly in countries which are quite statist, a number of our fiercely competitive European neighbours have established chambers of commerce or invested in a whole range of skilled, local employees, often fanning out and securing business in their particular countries by talking to governors or key business people. The digging out of investment opportunities by people in situ will be a critical part of the architecture of our winning export business in the future, particularly in the new regime which we will have.

I conclude by saying that there are huge challenges which face us post Brexit and I want to acknowledge the key role, which I greatly admire, of those who are involved in this activity, particularly in our posts abroad. It has to be recognised, as part of the topography of trade promotion abroad, that they are appropriately resourced to enable us to compete effectively, which is in all our interests whatever our attitude is to Brexit, and to ensure our capacity to trade successfully in the future.

Trade Bill

Lord Risby Excerpts

Committee: 1st sitting (Hansarad): House of Lords
Monday 21st January 2019 Lords Chamber

Essentially, government procurement—or local government procurement—is the lifeblood for the future of many small businesses, whether in weaving, which can be very high-tech, or in the dynamic industry that has been mentioned. Therefore, it is helpful to put on the record what the Government’s likely intentions are. As I have said before, and as we will no doubt talk about in the discussion on the next group of amendments, the Government have committed not only to carry over the GPA schedules but to revise them going forward; they have already said that in discussions with the WTO. It is appropriate that the noble Lord, Lord Lansley, is asking for that positive statement today.

[Lord Risby (Con)]

My Lords, as one of the Prime Minister’s trade envoys and as a long-standing deputy chairman of the Small Business Bureau, I support the amendment put forward by my noble friend Lord Lansley. I salute my noble friend Lord Livingston’s efforts, who helped to transform our external commercial activities.

Highlighting the importance of the small business sector is key to what the department is now doing. That is a huge cultural change because, although our small and medium-sized businesses sector is vibrant, it has not been brought into the loop of trade promotion. Huge effort is being undertaken there. I mention that because, earlier in the debate, there was an implication of inaction in the department. I have seen for myself how utterly untrue that is. For example, you can see on the website how small and medium-sized businesses are being offered communication skills and efforts are being made to encourage them; a sophisticated system is being put into effect.

My noble friend talked about strategy. Simply, there has been something of an oversight as far as the sector is concerned, particularly in terms of trade promotion. What is happening now is definitely a considerable change. The amendment highlights the importance of the sector for the future of this country and its future dynamic economic activity, which I hope will happen post Brexit, and offers a framework for participation in procurement. I hope that the Minister will give some sort of encouragement or indication of whether this is at the forefront of her thinking and that of the department when she replies to the debate because I believe that an important message was relayed by my noble friend in his remarks.

[Baroness Neville-Rolfe]

My Lords, I am a huge supporter of the small business sector and its growth. Indeed, some of the issues raised in Amendment 4, moved by the noble Lord, Lord Stevenson, are also important. However, like other noble Lords, I am not sure that they should be written into the Bill. I want to take this opportunity to ask the Minister a question, which she may prefer to answer in writing. Essentially, I want to pick up on the points about the importance of small businesses made by my noble friend Lord Livingston —who, as has been said, did so much as Trade Minister—and my noble friend Lord Risby.

My noble friend Lord Lansley is right that some countries try to discriminate in the procurement process in various ways. He rightly quoted the US Small Business Act. What can we do about that in policy terms? In particular, can we improve the process facing SMEs trying to win contracts either internationally or here in the UK? From my own experience, including a period serving on the Efficiency Board in the Cabinet Office, bidding rules are complex and vastly expensive—as a result, it is said, of European Union laws and requirements. Is work in hand to simplify our rules as we leave the EU to help SMEs win a bigger share of procurement, as I think we would all like?

Trade Bill

Lord Risby Excerpts

Committee: 3rd sitting (Hansard - continued): House of Lords
Wednesday 30th January 2019 Lords Chamber

[Lord Lansley (Con)]

My Lords, I refer to Amendment 62 in my name, which is part of a series of amendments in this group concerning mutual recognition— mutual recognition of good manufacturing practice, in this instance. I was prompted to table the amendment not least because many people in the pharmaceutical industry see this issue as an important part of our future economic partnership arrangements with the European Union, whether we continue to be EU members or in the single market or not.

Like Amendment 42 on the mutual recognition of authorised economic operators, Amendment 62 relates to instances of where the European Union has substantial mutual recognition agreements with third-party countries. In the case of authorised economic operators, those countries include Switzerland, Japan, the United States and similar countries—although not China in the instance of good manufacturing practice. It would be deeply perverse for us to start with standards that align entirely with those of the European Union, whether on authorised economic operators or good manufacturing practice, looking at the two amendments. If we lost that relationship with the European Union, it would make obvious good sense to maintain that mutual recognition.

In that context, the amendments commend themselves to my noble friends on the Front Bench because they are about continuity and trying to maintain the existing structure of agreements. Of course we want mutual recognition of good manufacturing practice with not only the European Union but the United States, Japan and Switzerland because, if we leave the European Union, four of the five largest pharmaceutical companies will be outside the European Union, with two in Switzerland and two in the United Kingdom. This issue matters a great deal to this important industry. Unfortunately, given the uncertainty and the way in which the European Commission sent advice to companies on their responsibility to prepare as if there would be no deal, pharmaceutical companies have, of course, already invested a considerable amount in ensuring that their batch authorisations and conformity assessments—and the authorisations associated with those—can be conducted inside the EU 27. That has cost quite a lot of pharmaceutical companies quite a lot of money already.

The noble Lord, Lord Fox, was quite right: this group of amendments is about the plumbing, the innards, of this issue. I am afraid that day by day, evidence of the enormity of the cost—in time, energy and money—of trying to stay as close as we can to the position we would have been in if we had stayed in the European Union is mounting. It does not do to dwell on that but there we are.

Finally, I am really surprised that some of our Brexit-supporting colleagues are not here to laud Amendment 38—the lead amendment in the group— on the common transit convention, which will assist significantly with customs simplification and the achievement of some reduction in the friction that might otherwise occur in trade. It is achieved with third-party countries and is not something that the EU absolutely has to offer. However—although I stand to be corrected by my noble friends—as the noble Lord, Lord McNicol, has said, it appears to have been agreed not only that we would remain within the common transit convention after exit day but that we would continue to remain in it even if we were to leave without a deal. That is a positive development.

Associated with it is the new computerised transit system which will help us to try to make progress on some of the customs simplifications that, whatever happens, will be important to the reduction of business costs. I commend to my noble friends Amendment 62, which should certainly be an objective of the Government in their current discussions about the future relationship with the European Union.

[Lord Risby (Con)]

My Lords, I will speak to Amendment 48. I am a director of the Horserace Betting Levy Board as a government appointee, and a former Member of Parliament for Newmarket, which, after all, is historically the world headquarters of racing. Equine matters are very dear to my heart.

The situation we have, which is a tripartite deal, developed before the European Union became involved. There is some level of involvement on the part of the European Union and negotiations have been going on in Brussels between the British Horseracing Authority and the Commission. It is important to highlight this because the system has been in existence for many years and has been absolutely seamless. The relationship between the United Kingdom, France and Ireland has flourished. We can think of Irish horses winning in large numbers at Cheltenham, French successes at Ascot and Newmarket, and our own recent victories in the Prix de l’Arc de Triomphe.

The real key is this. The system of horse passports and documentation is managed in the United Kingdom by our highly respected industry bodies: Weatherbys, the Thoroughbred Breeders’ Association and the British Horseracing Authority, with the approval of Defra and the Animal and Plant Health Agency. It works extremely well and is therefore something that should be cherished. It is particularly important to the economy of the Republic of Ireland. People in the equine industry in Ireland are extremely anxious about this situation being damaged in any way.

As a result of the support over the years of our Governments for the equine industry, stretching right across party divides, it has turned into a great success story and is the best-managed and best-organised racing industry in the world. It contributes to the pleasure of millions of people who watch horseracing either at racecourses or on television. All our facilities have been upgraded and the industry should be supported.

I will refer to the comments made by my noble friend Lady McIntosh. If it were somehow possible to retrieve this from where it seems to have landed up and see it go back to its original tripartite status, which was actually free of the European Union, that would be excellent. However, the reality is that for whatever reason there has been a process of greater and greater involvement by the European Union; in which case, I will ask my noble friend two simple questions. What will happen during the transition period in this area of activity which is so important to us? What is our negotiating objective for the longer term as far as the work of the British Horseracing Authority with our own Government is concerned?

I conclude by expressing my admiration for many colleagues both in your Lordships’ House and in another place who have done so much work over the years to keep this industry up to the highest possible standards of governance and popularity. Finally, I will praise one particular individual. When the Single European Act came in and there was a change in the way that VAT was dealt with, we nearly lost the racing industry altogether. We had a huge fight, but it was saved by the former Chancellor of the Exchequer, my noble friend Lord Lamont. For anyone who is interested in and has a passion for racing, he of all people is someone to whom we owe a great deal.

[Baroness Randerson (LD)]

My Lords, I start by craving the indulgence of the Committee and offering an apology for the fact that I missed the start of the speech of the noble Lord, Lord McNichol. I was racing back from Cardiff, but noble Lords will know that that involves the Great Western Railway. The train was only a few minutes late but that was the time I needed in order to hear the beginning of the noble Lord’s speech.

I have three amendments in this group, all designed to ensure that we try to keep the transport system running as normally and smoothly as possible after Brexit. I will start with Amendment 41, which relates to road haulage. We have heard the story many times about the dangers to our road haulage system. Indeed, last week the leaked Border Force document estimated that there could be a decline of up to 87% for three to six months after a no-deal Brexit if some arrangements were not put in place. We have had the preparation for the ECMT certificates that would have to come into place if we had no deal: roughly 1,200 certificates for a haulage industry that involves 30,000-plus hauliers. Clearly, this is totally inadequate. We have had the fiasco of the ferry-less ferry services to try to smooth the process.

We have talked many times in this House about Dover, but I want to say a word about Holyhead, the second-largest roll-on roll-off ferry port in Britain. Some 500 lorries per night go through Holyhead—that is three miles of queues, and the route to the port is through the town. In other words, any kind of queuing system caused by a no-deal Brexit would make it impossible for the town to function. I have had meetings with representatives of the Road Haulage Association, who have alarmed me with some information about the way in which the modern haulage industry works. They pointed out to me that an Amazon lorry can have 8,000 individual shipments on it, which—if we do not have arrangements in place—could lead to an individual customs declaration in each of those 8,000 cases. Each customs declaration has 36 different fields that have to be completed. They estimated that it would take 170 staff one day’s worth of work to deal with one lorry. We all know that Amazon will adapt, but it cannot adapt in two months.

There are numerous other cases and examples of the disruption that no deal would bring, so in this amendment I seek to ensure, in relation to road haulage, that we do not have no deal and keep the arrangements as close as possible to what we have now. We should bear in mind—I was told this by a representative of the freight industry—that it is in what it describes as a huge hole. They said, “The moment we do not apply the rules, we lose control of the border”. So it is no good for our Government to say that we will not do the checks and will take it on trust. The point the freight industry is making is that the moment we start taking things on trust, without the checks, we will have serious problems.

In Amendment 57 we move on to aviation. Many noble Lords will recall that last week the airlines came in for criticism because they had been selling tickets without drawing attention to the fact that, if there is no deal and we leave on 29 March without any arrangements, they felt that those tickets might not necessarily be honoured. That was the criticism and yet the Government have claimed that the aviation situation is arranged and organised.