Debates between Lord Wigley and Lord Hope of Craighead during the 2019-2024 Parliament

Tue 30th Apr 2024
Mon 28th Mar 2022
Subsidy Control Bill
Lords Chamber

3rd reading & 3rd reading
Wed 9th Feb 2022
Mon 31st Jan 2022
Subsidy Control Bill
Grand Committee

Committee stage & Committee stage

Victims and Prisoners Bill

Debate between Lord Wigley and Lord Hope of Craighead
Lord Hope of Craighead Portrait Lord Hope of Craighead (CB)
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My Lords, Clause 28 does not apply to Scotland, which can have its own legislation to deal with this matter, but I am very much in favour of the amendment. I have gone over the ground of seeking consent many times in different situations, but in this one, where we are dealing with the choice of advocates, the choice matters very much indeed. I would have thought that there is great sense in the points made by the noble and learned Lord, Lord Thomas, that this is an area where the consent of Welsh Ministers is not only appropriate but required.

Lord Wigley Portrait Lord Wigley (PC)
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My Lords, I have not taken part in earlier discussions on this Bill for reasons outside my control, but it would be strange for me not to get on my feet to reinforce the points that have been so well made by noble Lords. This is an important matter as far as Wales is concerned. There needs to be clarity and co-operation, and that has to be on a proper basis. I suggest that these amendments would help facilitate that.

Subsidy Control Bill

Debate between Lord Wigley and Lord Hope of Craighead
Lord Hope of Craighead Portrait Lord Hope of Craighead (CB)
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I am grateful to the Minister for fulfilling his commitment and producing the report for which I asked. It is disappointing, but I am reassured by the latter part of his statement—that engagement with the devolved Administrations will continue. I very much hope that that will produce a more fruitful result than has been achieved so far.

Lord Wigley Portrait Lord Wigley (PC)
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My Lords, I also express concern that it has not been possible to get agreement. Quite clearly, it is in everybody’s interest that the devolved Administrations and the UK Government should be working in harmony on these matters. There are issues, concerning agriculture in particular, that are causing concern. Could the Minister therefore give an assurance that, as his discussions go on with the Governments in Cardiff and Edinburgh, he will keep the House informed and give us an opportunity to debate, discuss, or at least put questions forward to him on, the outcome of any such deliberations?

Subsidy Control Bill

Debate between Lord Wigley and Lord Hope of Craighead
Lord Wigley Portrait Lord Wigley (PC)
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My Lords, I am delighted to support the amendment put forward by the noble and learned Lord, Lord Thomas of Cwmgiedd, and agree strongly with the points that he made in opening this short debate. The devolved regimes must surely be in a position in which they can be regarded as interested parties. It stands to reason that that must be the case in certain circumstances, and there must be provision within legislation for those certain circumstances to be looked after in the context of this Bill.

I was delighted to have the opportunity to add my name to Amendment 79 put forward by my colleague, the noble Lord, Lord German. I support the points he made in regard to it. The need for some indication to the devolved regimes that they are partners has surely come out of the debates we have had in the last three or four sittings of this Committee. It is time that the Government found some way of indicating that they are prepared to work on a partnership basis. These two amendments pave the way for that, and I hope the Government can respond positively.

Lord Hope of Craighead Portrait Lord Hope of Craighead (CB)
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My Lords, I put my name to Amendment 69 as well, and I support exactly what my noble and learned friend Lord Thomas of Cwmgiedd said about it.

It is worth noting that the definition of “interested party” has to be read together with Clause 70(1). The point is that to apply to the Competition Appeal Tribunal you have to be two things: an “interested party” and “aggrieved”. The definition takes you part of the way there. I am thinking in particular of the Secretary of State, who is an interested party but in order to apply has to demonstrate that in some respect he or she is aggrieved by the making of the subsidy decision.

Subsidy Control Bill

Debate between Lord Wigley and Lord Hope of Craighead
Lord Wigley Portrait Lord Wigley (PC)
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My Lords, I am delighted to have the opportunity to open Committee on this important Bill by moving Amendment 1, which stands in my name, and for which I am grateful for the support of the noble and learned Lord, Lord Hope, and the noble Baroness, Lady Humphreys. I apologise that I was unable to participate at Second Reading: at that point I was self-isolating after testing positive for Covid. I wrote to the Minister to explain my absence. I was able to follow the whole Second Reading debate on the parliamentary live feed and from that I am aware that the dimension I raise in this amendment was touched upon by several speakers—and of course, I am conscious of the sentiment expressed in Senedd Cymru on the matter.

The point of the amendment is to ensure that Senedd Cymru and the Scottish Parliament are fully involved in the procedures triggered by Clause 1, and thereby the application of the Act for which Clause 1, of course, provides. This goes to the heart of the issues addressed by the Bill. That relates to the essential and totally valid role of Senedd Cymru and the Scottish Parliament in matters relating to subsidy control. I make it clear that I accept that there needs to be a framework in any common market or customs union in which subsidies can be permitted or prohibited. Therefore, there has to be a clear and transparent mechanism for defining the context within which subsidies can be paid, and therefore also the mechanisms of subsidy control that are necessary.

Let us be clear: subsidies have been a tool of government for both Conservative and Labour Governments down the years. One has to think only of the agricultural subsidies applied in UK long before our accession to the Common Market to see that such interventions have been regarded as legitimate. Before the UK entered the European Union, both the Wilson and Heath Governments operated substantial capital and revenue interventions, such as the selective employment tax and the regional employment premium. At one time, such schemes on a revenue basis and capital investment schemes could provide as much as 45% support for manufacturing industry investment. Indeed, when I was head of finance at Hoover, we negotiated an investment package in which £11 million out of a £16 million expansion scheme—substantial money in the early 1970s—came from public funds.

However, in acknowledging the validity of such interventions, as I believe the Minister does, it would be quite unacceptable for the power to decide whether subsidy controls are necessary to rest in one legislature alone. It must be on the basis of parity of esteem for all relevant legislatures—and Senedd Cymru and the Scottish Parliament are most certainly relevant legislatures. It would be totally unacceptable if one Parliament could legislate to protect its own interests while other Parliaments, with responsibility for economic development within their nations, were denied that power. If such powers are to be at the disposal of one partner within the union, they must be equally available to other nations.

It could be that the intention of the Government in proposing the wording of Clause 1(7) is to use the term “an Act of Parliament” in a generic manner, but the definition in Clause 89, the interpretation clause, rules that out, as indeed does the normal usage of that term at Westminster. It may well be that the Government do indeed regard Westminster as the senior partner in these matters and are deliberately choosing to legislate in a preferential manner that enables Westminster, by the use of Acts of Parliament, to seize control of this entire agenda. If that is so, it can be little surprise that the devolved Governments are extremely unhappy about the implications.

This matter, in various guises, is likely to arise again at various junctures in our deliberations. Indeed, other amendments on the Marshalled List raise these considerations. I shall listen to other speakers when they address those other amendments in due course, and there may well be better ways of dealing with this fundamental dimension than the wording that I propose in Amendment 2. However, let the Committee be in no doubt that an equal, even-handed approach must be built into the Bill for it to be acceptable in both Wales and Scotland. On that basis, I beg to move Amendment 1.

Lord Hope of Craighead Portrait Lord Hope of Craighead (CB)
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My Lords, I have added my name to the amendment of the noble Lord, Lord Wigley, and I agree with what he has just said in support of it. As he mentioned, it will be apparent from the many amendments on the Marshalled List that mention the devolved Administrations that there are real concerns that the provisions of the Bill as they stand will have an adverse effect on the relationship between those Administrations and the UK Government.

I recognise that subsidy control was made a reserved matter by Part 7 of the United Kingdom Internal Market Act, but that does not mean that the UK Government should shut their eyes and ears to the views of competent authorities throughout the UK, and of the devolved Administrations themselves, as to the way that subsidies are distributed and controlled. After all, while we were in the EU the Commission had a very robust evidence-based consultation procedure which ensured that other voices were heard, and that should continue to be the position.

“Respect” and “co-operation” were the key words in the recent report by the Constitution Committee, of which I am a member, about building a stronger union in the 21st century, but I am afraid that those virtues were absent when the internal market Bill was being designed and debated in this House and the other place. As a result, relations with the devolved Administrations became very strained. We do not want to go back to that, but the way in which the Bill has been drafted appears to pay very little attention to the concerns and needs of the devolved Administrations.

I am sure that the Minister will remember, very well, the conversations we had with regard to the amendments I tabled to the internal market Bill to enable exemptions from market access principles to be given to agreed common frameworks. They did not seem to get us very far, until, at the very last moment, there was a change of mind in the Government and an appropriate amendment was put through. Of course, I understand that the Minister’s hands were tied, but I hope there may be a little more flexibility this time.

I respectfully ask the Minister to say something about the legislative consent procedure in relation to the Bill. The Constitution Committee said:

“For the Sewel convention to operate well, constructive relationships and good faith is required between the UK Government and the devolved administrations.”


I hope that that is how things are being handled this time and that the Minister will keep the Committee updated as discussions continue, with a view to settling the devolved Administrations’ concerns, which I believe are still there; as I understand it, a consent Motion has not been achieved in either case.