Economic Activity of Public Bodies (Overseas Matters) Bill

Miriam Cates Excerpts

Report stage
Wednesday 25th October 2023 Commons Chamber

[Claudia Webbe (Leicester East) (Ind)]

Human rights groups have rightly condemned the Bill as an outrageous and unwarranted interference in the ability of councils, universities and other public bodies to use their purchasing power to pursue ethical procurement and investment policies in order to help defend human rights and tackle issues such as climate change. Everyone who cares about issues such as the illegal arms trade, activities of arms manufacturers and traders whose weapons fuel conflicts around the globe, or climate justice, correctly will be horrified by this blatant attack on the basic democratic rights of elected public bodies to act on behalf of the residents who elected them.

The Bill specifically protects the state of Israel, Israeli companies and their human rights abuses from local authority sanctions, no matter what human rights abuses they might commit or are committing now. It is self-evident that councils and other public bodies must be free—and, indeed, have a duty—to act to prevent or discourage breaches of international humanitarian law. It is clear that Israeli settlements are illegal under international law, and no local authority or Government should offer support to such activity. The Government’s anti-BDS Bill contradicts the guiding principles on business and human rights published by the United Nations. It penalises public bodies that comply with the UK’s responsibilities as a permanent member of the UN Security Council. It takes away the democratic right of public bodies to make ethical financial decisions.

The Bill uniquely shields human rights abuses by Israel, allowing it to act with impunity. Indeed, the Bill exempts specific countries—namely Israel, despite its human rights abuses and war crimes—even though we do not know what future actions such countries may take. That is a show of complete contempt for the people of Palestine and the daily inhumanity, abuse and discrimination they face. The Bill is a textbook case of divide and rule politics.

It is profoundly disappointing that the Government are pursuing the anti-boycott Bill at this moment, when tensions are extremely high in our communities. In the past few weeks, almost 7,000 Palestinians have been killed—almost half of them children—and 1,400 Israelis have been killed, and the civilians of Gaza have been massacred by Israeli airstrikes. War crimes are happening in real time. An immediate ceasefire is required, and the Prime Minister, the Government, the Leader of the Opposition and all political leaders in this House should be calling for it.

Boycott, divestment and sanctions are an effective means of peaceful resistance. The Bill is no less toxic than at its previous stage. If it passes, it will close off a vital democratic avenue for the closest representatives of ordinary people at local level to demand accountability and change. It will show how little this Government care about the lives of civilians and the plight of persecuted and exploited communities around the world.

[Miriam Cates (Penistone and Stocksbridge) (Con)]

I welcome this Bill, which fulfils a manifesto commitment and restates and protects the Government’s foreign and trade policy prerogatives by preventing local authorities and other public bodies from pursuing politically motivated foreign policy objectives of their own. Some have said that the Bill would limit free speech, but that is not correct because individual councillors and public bodies can still say whatever they like as private citizens, as long as that speech is lawful. But local councils have no democratic mandate to use their control of taxpayers’ funds and assets to create their own foreign policy or to express divisive opinions that undermine social cohesion in the communities for which they are responsible.

We have heard devolution spoken about in the Chamber. I am a supporter of devolution, but the whole point is that certain powers are devolved and certain powers are not. When my constituents go to the ballot box at local elections, they vote for the candidate who they think is the best person to ensure regular bin collections, well-maintained roads or social care; they are not voting on foreign policy, defence policy or income tax rates, because these are nationally reserved issues for the Westminster Government. It is therefore unjustifiable for local authorities to pretend they have a democratic mandate to use ratepayers’ money to signal their own foreign policy positions. This Bill does not restrict free speech; rather, it restricts public bodies from undermining policies decided nationally by a national Government elected in national ballots.

None of the amendments we are debating today would enhance the Bill, and in fact some are intended to make it unworkable. Amendment 4, for example, would make the pension scheme divestment provisions unworkable, and amendments 7 and 21 seek to remove an important clause relating to Israel. These amendments miss the crucial point of the Bill and the reason why it is being brought forward: all recorded recent examples of public bodies pursuing boycotts against foreign states or territories have been against Israel.

4.45 pm

BDS, which we have heard about extensively in today’s debate, is unique in its targeting of the world’s only Jewish state. The BDS movement is not a harmless, peaceful movement; it has alarming links to extremists, including the Hamas terrorist group, which have just committed probably the worst crimes in my lifetime—the worst mass killing of Jews since the holocaust. Public bodies funded by UK taxpayers should not be expressing public support for the divisive ideology advanced by the BDS movement. Its founder has, indeed, repeatedly expressed his opposition to Israel’s right to exist as a state of the Jewish people and has endorsed Palestinian armed resistance. When public bodies seek to undermine British foreign and trade policy and choose to do that only for matters relating to Israel, it gives legitimacy to and encourages the sort of appalling antisemitic protests and attacks we have seen over the past few weeks.

Let me take my home city of Sheffield as an example. In 2019 the council passed a motion regarding its position on Palestine; it had nothing to do with the council’s responsibilities as a local authority, but everything to do with its attempt to signal its anti-Israel political views. And in under a week’s time, on 1 November, the Green party councillors will put forward a motion entitled “Stopping the Genocide in Gaza” that makes no mention of Hamas and their terrorism.

Since the horrific terrorist attacks on Israel by Hamas, we have seen some shocking scenes on the streets of Sheffield: the Israeli flag torn down from the town hall; antisemitic chants on our streets; even a roadblock set up by supporters of Hamas, intimidating drivers and asking for money. I find it unbelievable and shameful that, after witnessing the despicable attacks, torture and rapes of Jewish civilians, such actions can take place in Sheffield, supposedly a “city of sanctuary”. It is very difficult for the Jewish community in Sheffield to feel safe when the local authority—the official elected body—appears to align itself with hard-line anti-Israel movements.

That is why we need this Bill: because yet again Israel and the Jewish people are being singled out and subjected to discrimination across this country and across the world. This singling out of Israel, the only democracy in the middle east, is just another form of the world’s oldest prejudice. Of course the Government of Israel can be criticised by British citizens, as can any Government in the world, but it is unacceptable for local authorities and public bodies to abuse their position to make divisive political interventions for which they have no democratic mandate. That is why I support this Bill going forward unamended.

[Steve McCabe]

I want to begin by saying that I am not sure it is helpful to link these proceedings with the current crisis in Israel and Gaza, which is what some have sought to do in this debate. I think we should be careful about that and I want to thank my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) for the tone she adopted in her opening remarks and for her call for sensitivity and moderation in our approach to this issue.

The nature of the BDS campaign is to promote anti-normalisation: it encourages the notion that there should not be contact, trade, exchange, negotiation, or even dialogue with Israel. The founder of the BDS movement has repeatedly expressed his view that the Israeli state should not exist. For me, the aims of the movement are clear. Consequently, I am utterly opposed to the aims of BDS, and I believe that they are as detrimental to the interests of the people of this country as they are to the people of Israel and the Palestinians.

When I hear people talking about the BDS movement, I often think they completely misunderstand the exact nature of our relationships with Israel in trade, medicines, security and technological exchange, and how people in this country are kept healthier and safer as a result. I am therefore utterly opposed to BDS. Not only does it target Israel and hurt the Palestinians, it is also completely detrimental to the interests of the people of this country.

Just in passing, as a Birmingham MP, I want to refer to the point made by the right hon. and learned Member for Northampton North (Sir Michael Ellis), who is unfortunately no longer in his place. I want him to know that Veolia still has a contract with Birmingham City Council despite his great efforts to suggest that Birmingham was responsible for Veolia pulling out of Israel. I think he rather overstated the case.

I say to the Secretary of State and to the Minister, who was extremely courteous and reasonable throughout Committee, that after so many hours in Committee and such a period for reflection I am really disappointed that we have had so little movement from the Government on Report. I hate to say this, but I find it hard not to conclude that the aims and arguments of BDS may not be the total priority. I hope that I am wrong, and I hope that people can demonstrate that to me.

I remain strongly of the view that the Government would be well advised to drop clause 3(7) altogether, as I think it will probably make things worse. I find myself in total agreement with the right hon. Member for North West Hampshire (Kit Malthouse) on that. I also remain unconvinced by clause 4(1)(b).

I support amendments 16 and 13. I also support new clause 3, which seeks to provide protection for religious dietary requirements. I think it was mentioned that one of the BDS movement’s proposals was to remove kosher food from supermarket shelves. I cannot believe that anyone in their right mind would think that a reasonable way to proceed, so I welcome the new clause.

We need a Bill to address the iniquities of the BDS movement. We need a Bill to unite people on both sides of the House who genuinely want consensus and broadly share the same aims. I regret that the Bill in its present form is not a piece of legislation that will achieve that outcome, and I urge Ministers to seek a consensus. There is still time to reconsider the approach.