European Union (Approvals) Bill

Debate between Margot James and John Redwood

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[Margot James]

I welcome my hon. Friend’s intervention. I remember his excellent work when he was a trade representative to Canada and I assure him that the Comprehensive Economic and Trade Agreement negotiations, completed between the EU and Canada, will cover the United Kingdom for as long as we are members of the EU. After that point, it will be up to us to decide the terms of any future trading relationship with Canada, bearing in mind the—I won’t go any further on that.

[John Redwood (Wokingham) (Con)]

Will the Minister give way?

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Minister give way?

--- Later in debate ---

[John Redwood]

Surely the Minister would confirm that the Canadian trade agreement, along with all the others the EU will have in place when we leave, will novate to us, assuming that both we and Canada wish it to do so? That will clearly be the case, so it will carry on.

[Margot James]

I accept the first part of what my right hon. Friend says, but I do not wish to predict what the UK and Canada may find it important to discuss in their trade relationship in the years to come.

--- Later in debate ---

[Margot James]

I have explained that the purpose of the decision is primarily to support our role as a continuing member of the EU until the negotiations are complete, in two years’ time. Until then we will be covered by it, but after that date we shall have to see what has been agreed during the negotiations. The existing competition agreement with Canada does not allow the sharing of confidential information, but the new one does. I shall return to that point in a few minutes.

The absence of the possibility of exchanging information with the Canadian Competition Bureau is regarded as a major impediment to effective co-operation. The proposed changes in the existing agreement will allow the European Commission and the Competition Bureau to exchange evidence that both sides have obtained in their investigations. That will be particularly useful in all cases in which the alleged anti-competitive behaviour affects transatlantic or world markets. Many worldwide or transatlantic cartels include Canada and, via Canada, the Commission will gain a good opportunity to have access to additional information concerning those cartels.

Co-operation with third-country competition authorities is now standard practice in international competition investigations. In addition to the agreement with Canada, the EU has concluded dedicated co-operation agreements with the United States, Japan, Korea and Switzerland.

I now return to the intervention by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards). I omitted to say that even after the Brexit negotiations have been completed, the competition agreement with Canada will continue to apply to British companies if they are trading with the single market of the European Union.

The most advanced agreement is the one with Switzerland, which already contains provisions on the exchange of evidence, and the proposed update would bring the agreement with Canada to the same level as the one concluded with Switzerland.

I am sure Members will agree that the ability to share information is increasingly important for effective and efficient international competition enforcement. Access to information from other jurisdictions can be important to the reaching of a robust enforcement decision. Co-operation and information sharing between jurisdictions can help to ensure that enforcement bodies do not reach different decisions based on different sets of information.

The agreement contains general safeguards for the transfer of information, and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to whom they relate. In the absence of consent, such data can be shared only when both competition authorities are investigating the same related conduct or transaction. Furthermore, the transfer of the data will be subject to independent oversight. The agreement also contains safeguards for information provided by a company under the EU cartel immunity or leniency programme. Such information cannot be shared without the express written consent of the individual or company that provided it.

As I have noted, the decisions will have no financial implications for the UK. I confirm that I do not consider that any of the Bill’s provisions interfere with the rights set out in the European convention on human rights, so no issues arise in connection with its compatibility with those rights.

[John Redwood]

I wonder why there is no cost. Surely, if there is to be an added layer of complexity in the sharing of information—which may be a good thing—there must be a cost in respect of the time of the officials involved.

[Margot James]

I am assured that no costs are associated with these decisions, other than those that arise in the normal course of Government business.

It is intended that the Bill will come into force on the day of Royal Assent. For the reasons that I have outlined, I commend it to the House.

Amendment of the Law

Debate between Margot James and John Redwood

Wednesday 23rd March 2011 Commons Chamber

[Mr Redwood]

I am happy with those proposals. The Government are clearly on the right lines and I hope there will be cross-party agreement that we need to raise our game at skills, training and education, particularly in engineering, pharmaceuticals, chemistry and so forth, where we have an advantage and can have a much bigger advantage if we do more. Yes, we need to review how easy it is to buy or build a factory and how easy it is to equip it. Anything that can be done to lower the effect of tax rate on business will make Britain a much more attractive place to be.

As hon. Members know, I take the view that if we set lower rates, we normally collect a lot more revenue. If we want that kind of growth rate, the lower the realistic rate that we can set, the more revenue growth and the more overall growth we will have. It would be a great tragedy to abort the recovery in certain sectors because the tax rate was too high. I am pleased to see the progress on corporation tax. We need to see the details of some of the individual tax schemes and how the carbon tax rebate would work. If we went ahead as trailblazers in Britain and set a high carbon price, we would price our energy-intensive business out of Britain into a less clean or less acceptable venue. It is important that the rebates and discounts are properly thought through, so that at a time when the Government are trying to promote more industry, they are not taxing it too heavily.

[Margot James (Stourbridge) (Con)]

On the competitiveness of British industry, my right hon. Friend has in the past talked of a cut in regulation being equivalent to a free tax cut. Does he welcome the measures in the Budget to have a low level of regulation for new start-up companies and small companies? Does he share my hope that Europe will become more competitive by reducing the regulatory burden that it seeks to impose on British business and business in other member states?

[Mr Redwood]

Of course I welcome that. One of the big barriers to entry and to more effective competition for the large companies in Britain is the weight of regulation, which hits anyone who tries to start up a new business. I have done it in the past and I know what it feels like. One has to raise a lot more extra money because for six months to a year one is just trying to comply in many areas before one can trade. Yes, of course we want sensible regulation. We do not believe in an unregulated world. We believe in the law of contract. We believe that people should have a duty of care towards their staff and their customers, but if there are too many and too detailed competing types of prescriptive regulation, it puts people off and they say, “It’s too expensive. I can’t be bothered.”