Trade Bill

Lord Sheikh Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Thursday 1st October 2020 Grand Committee

The noble Viscount will be familiar with the force of cross-party amendments. He will, I am sure, be familiar too with speeches written for Ministers in these circumstances which state that amendments are flawed or not appropriate for a Bill. If he has passages like that in his speech, he has time enough now to cross them out, because he knows that he will need to answer the substance of what we are saying here. I therefore look forward to hearing the Minister’s reply.

[Lord Sheikh (Con) [V]]

My Lords, I will speak in support of Amendment 40. As we deepen and strengthen our global trading relations, we cannot ignore our environmental commitments. I support this amendment because it means that our environmental obligations, as outlined by international law, cannot be undermined by future trade deals.

This must be a green Brexit. The Government’s election manifesto stated that they will not compromise on our high environmental protections in any future trade deals. Without this amendment, these are promises without actions. The international agreements laid out in this amendment are about not just environmental protection but our health and well-being, and are for the benefit of generations to come.

In the interests of time, I will outline only three of these international agreements. First, the Convention on Long-Range Transboundary Air Pollution has helped reduce pollution levels across borders and improve human health. As we have seen during lockdowns, the rapid decline in air pollution has had a positive impact on the health and well-being of people and nature in the UK and internationally. By honouring our commitment to this convention in this amendment, we can continue to protect the health of people and ensure that we do not undermine the improvements made as we recover from the pandemic and restart the economy.

Secondly, the UN Convention on the Law of the Sea is included in this amendment. It is about not just maritime jurisdiction but managing resources in a sustainable manner. The issue of fish stocks in UK fishing waters has been a prominent debate in Brexit. By continuing our commitment to the UN Convention on the Law of the Sea, we can ensure that the quality and productiveness of our fish stocks are maintained. It is essential for both our biodiversity and the long-term livelihood of our fishermen.

Thirdly, the United Nations Framework Convention on Climate Change is a key mechanism for monitoring greenhouse gas contributions and plays an important role in reducing emissions in the fight against the climate crisis. Global trade has an environmental footprint. For instance, 30% of carbon dioxide emissions are from freight transport. As we develop trading relations, we must ensure that we stay on the path to net zero emissions by 2050. This amendment means that we will continue to protect the environment in a way that does not restrict trade. It is an opportunity to make trade more sustainable by supporting investment in greener sectors and turning away from polluting industries to reduce our greenhouse gas emissions.

This amendment would also ensure that, within 12 months of making regulations or ratifying a trade agreement, a report assessing the impact of regulations on our environmental obligations is presented to Parliament. This is key in ensuring that we are held accountable and have fully considered the implications of any deal. If the UK is to be a leader in sustainability, this amendment must be supported. Without it, we lack a meaningful commitment to tackling the climate crisis.

The Government assure us that they are putting green at the heart of the coronavirus recovery. The Prime Minister has said that he wants the UK to be seen as a leading example in enabling a global green industrial revolution. Supporting this amendment would enable us to be an effective environmental leader, especially as we prepare to host COP 26 next year.

[Lord Beith (LD) [V]]

My Lords, the noble Lord, Lord Lansley, has already referred to the Henry VIII powers and questioned why they are repeated in this Bill when, to a large extent, they are available in the withdrawal Act. Amendment 22, proposed by the noble Lord, Lord Stevenson, gives us an opportunity to look at one part of that. It would delete the Henry VIII power contained on page 2, in paragraph (a) in line 27. That is a power to modify

“retained direct principal EU legislation or primary legislation that is retained EU law”.

That sounds rather obscure, but it is an opportunity to change significant standards, using Henry VIII powers to modify substantive primary legislation by means of statutory instruments. We all know what problems these powers present, as they are very topical at the moment. The powers can be exercised by UK Ministers or by Ministers in devolved Administrations, described as “appropriate authorities” in the clause. They put Ministers in the position that they probably have to worry a little less about what Parliament will think or do about what they are negotiating.

The Explanatory Notes say that this provision

“does not allow for regulations to make or extend criminal offences, charge fees, amend primary legislation other than retained EU law, or create new public bodies.”

The Constitution Committee, of which I am a member, raised this issue in the context of the previous Trade Bill, and pointed out:

“We are not persuaded by the Government’s position that it is sufficient for the power in clause 2 to be constrained presumptively rather than explicitly. We recommend that the restrictions on the power be included in the text of the Bill.”


That is a perfectly reasonable request by the committee.

There is a context to it, or a context to our consideration of it. We have just been through a series of parliamentary rows and debates about the use of powers under the public health Act of 1984. I say the use—it was the fairly incompetent use of them, because every prosecution that relied on that legislation and orders made under it failed. Convictions were overturned because of confusion about the regulation-making power that the Act provided, and confusion about whether the individuals to which the provisions were applied could reasonably be expected to be infected or simply be put under these provisions for their own benefit, for which the legislation did not provide.

Continuity trade deals post Brexit are not the same as a pandemic, but they are surrounded by issues of urgency and claims of exceptional circumstances. It is in such contexts that powers of delegated legislation get abused or overused. When that happens, we ask why Parliament created such wide powers and why we allowed it in the first place. The answer usually is that it was by ignoring what the Delegated Powers Committee, the Statutory Instruments Committee or the Constitution Committee said at the time and relying on the fact that Governments will always do the right thing, won’t they? Well, Governments will not always do the right thing, sometimes for profoundly objectionable reasons and sometimes because they think that the need to get on with things overrides any of these considerations. There is a case for making the legislation clear on the limits on the use of power to repeal or modify existing primary legislation and that provision ought to be in the Bill. There is still time to put this right at Report.

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[The Deputy Chairman of Committees (Lord Haskel) (Lab)]

My Lords, the noble Baroness, Lady Noakes, has withdrawn, so I call again the noble Lord, Lord Sheikh.

[Lord Sheikh (Con) [V]]

My Lords, I apologise because I did not unmute myself, but I think that Lady Sheikh has managed to unmute me.

I support Amendment 34 in the name of the noble Baroness, Lady Kidron. While the internet is a space for innovation, expression and communication, it can also be damaging. As our digital world develops and innovates, so do the risks of online harm. Children are increasingly exposed to inappropriate content, grooming, harassment, malicious behaviour, misinformation and breaches of privacy. Two-thirds of vulnerable children and young people, supported by Barnardo’s sexual exploitation service, were groomed online before meeting their abuser in person.

Social media companies have failed to prioritise children’s safety. Last year, the NSPCC found that more than 70% of reported grooming took place on the main social media networks—Facebook, Instagram, WhatsApp and Snapchat. The global platforms are not taking enough responsibility for content on their sites, or being held accountable. More needs to be done to verify user identities, monitor harmful content and handle reports of abuse effectively. Harmful content and activities have a damaging effect on children’s mental and physical well-being and can lead to exploitation, trafficking, substance abuse and radicalisation. Those impacts are rarely short term; they stay with the children for the rest of their lives.

The UK is committed to being the safest place in the world to be online, and we must do more. We need better safeguards, and I urge the Government to prioritise the online harms Bill, which will be world leading in safety requirements and holding the industry accountable. As we leave the European Union and continue to develop our place in the digital world, we must ensure that our standards and goals are not jeopardised. We recently signed a trade deal with Japan; this historic agreement will advance digital standards through data provisions that maintain and improve digital safety. This year, Japan was ranked first in the child online safety index for low cyber risks. Those risks refer to bullying, misuse of technology, the detrimental effect of gaming and social media, and exposure to violent and sexual content.

In the UK-Japan trade deal, the rights and protection of children online have not been undermined, as Japan shares a similar ambition to ours for legislative standards. But what will happen when we look to sign with other countries that do not have the same level of protection? Unlike Japan, the United States came 22nd out of 30 countries in the child online safety index for cyber risks.

Although this is only one aspect of the index, it shows that children are particularly at risk online in the United States. We cannot expose our children to the same abuse. The new trade agreement between the US, Mexico and Canada has created a legal shield for tech companies, whereby the service providers are not held liable for content on their platforms or the harm it may cause to users. This fails to hold social media companies to account, and is not an effective safeguard for children.

Supporting the amendment would mean that our existing protections could not be traded away, and would ensure that we could fulfil our duty of care to children. If we do not support the amendment, we risk undermining our commitment to create a safer world online for the protection of children. Furthermore, if we do not do this, we could cause a situation in which social media giants are not transparent in how they deal with abuse online, and may be less accountable.

The pandemic has reinforced the importance of the digital world in our lives. When we return to normality, we must have better safeguards. We should not just maintain our existing safeguards; we should endeavour to strengthen them. The amendment would mean at least that our existing laws, and therefore the rights of our children, were protected. I hope that it will be accepted.

[Lord Fox (LD)]

My Lords, in responding to the last group of amendments, the Minster, the noble Lord, Lord Grimstone, expressed surprise at the broad nature of the debate. I would say to him, perhaps facetiously, “Welcome to the House of Lords”. I fear that this group may tempt his colleague, the noble Viscount, Lord Younger, to make a similar observation, but I ask that he does not. As the noble Baroness, Lady Thornton, said at the end of the previous debate, the nature of these debates highlights serious concerns that noble Lords have, and the Government should take them seriously, even when they are not necessarily on the face of the Bill.

This is a very good example of that. I shall not speak in detail about Amendment 34, because the noble Baroness, Lady Kidron, made a very powerful speech. I am also glad that Lady Sheikh managed to get the noble Lord, Lord Sheikh, online, because he made a very strident contribution on something that is extremely important.

Similarly, I am not going to talk much about intellectual property. On this issue I bend the knee to my noble friend Lord Clement-Jones—and, frankly, so should Her Majesty’s Government. I suggest that the Minister should give my noble friend’s words, and particularly his questions, special attention, because they are serious and important issues that face a lot of companies in this country.

The noble Baroness, Lady Neville-Rolfe, spoke strongly on data flow. At the risk of provoking the ire of my noble friend Lord Clement-Jones, I have to say that I agree with her. Her issue is absolutely fundamental—and I shall expand a bit on that.

I have previously quoted the “exuberant” Secretary of State, as the noble Baroness, Lady Neville-Rolfe, describes her. Here is another quote, from a speech she made to the WTO almost exactly a year ago:

“We believe it is high time to reform digital trade rules so that they are fit for the 21st century, reducing restrictions to market access to support e-commerce and ensure the free flow of data across borders.”


Yet despite this enthusiasm or exuberance, I sense that there are problems when it comes to squaring the conflicting pressures that are mounting around the free flow of data across borders. Indeed, when the Minister kindly invited myself and others to a facilitated discussion on the progress of the US-UK trade deal, I was surprised and shocked by the insouciant response to my question on data adequacy and the issue of reconciling US and EU data rules. It was a very short answer, and to us, it did not show a full understanding of the challenge.

However, it is not just about GDPR. I will talk in a little detail about Schrems II, which my noble friend Lord Clement-Jones raised, because it is an important cloud hanging over what we seek to achieve. To remind your Lordships, in that ruling the European Court of Justice, the highest court of the EU, found on the adequacy of the protection provided by the EU-US data protection shield. To explain, it wrote in its press release that

“the requirements of US national security, public interest and law enforcement have primacy, thus condoning interference with the fundamental rights of persons whose data are transferred to that third country.”

It added that

“mechanisms in the EU-US Privacy Shield ostensibly intended to mitigate this interference are not up the required legal standard of ‘essential equivalence’ with EU law.”

Broadly, the US’s prioritization of digital surveillance in the view of the court collides directly with European fundamental rights.

That is a sobering ruling, which spells danger for UK trade aspirations and sets some alarm bells ringing regarding the UK’s surveillance regime. Her Majesty’s Government need to reflect on this very seriously when talking up the potential for a UK-US trade deal that includes data, and they should contrast that stark ruling with the freebooting statement from the Secretary of State with which I opened. By the way, I assume that Her Majesty’s Government are probably having to reflect on this ruling in their efforts to tie down data adequacy with the EU when the transition period runs out. Perhaps the Minister can use this opportunity to update us on progress with these discussions with the EU.

This is not a trivial issue, and we need to demonstrate in this country that we take it seriously. As a starting point, accepting Amendments 15, 16 and 34 would be a very good idea.