(4 months, 1 week ago)
Commons ChamberThe Government are absolutely committed to expanding STEM opportunities. A key way of doing that is building mathematical capabilities and helping girls and minorities to stick with maths, which is why the Prime Minister has announced our ambition to see all young people receive maths education until they are 18.
The Medical Research Council is benefiting from the highest ever level of research spending, but I would be happy to meet my hon. Friend to talk about what more we can do in this important area.
I was pleased to speak with Prime Minister Netanyahu, who thanked the UK for its support of Israel’s security over the weekend. We discussed the situation and how Iran is isolated on the world stage. I also made the point to him that significant escalation is not in anyone’s interest and that it is a time for calm heads to prevail. I also reiterated our concerns about the humanitarian situation in Gaza. I welcome the statements and commitments that the Israeli Government have made about significantly increasing aid into Gaza, and now we need to see those commitments delivered.
My hon. Friend is right that, particularly at a time of increased geopolitical risk, we must protect our nation’s food security and therefore our most valuable agricultural land. We do want to see more solar, which is one of the cheapest forms of energy, but, as he said, on brownfield sites, rooftops and away from our best agricultural land. That is why our recently published national infrastructure planning rules set out the requirement for solar not to be placed on what is described as the best and most valuable versatile land where possible. The Secretaries of State for Energy Security and Net Zero and for Environment, Food and Rural Affairs are ensuring that developers and planning authorities strike the right balance so that we can deliver what my hon. Friend wants, which is more British food grown here at home.
(5 months, 1 week ago)
Commons ChamberI thank the hon. Gentleman—another important parliamentary convention has now been observed with his intervention in the Adjournment debate. I am grateful for and agree very much with the point he makes, and we will look at all that in a bit more detail. Indeed, most of us will be familiar with the context that he started to describe.
The Prime Minister announced on Monday 13 November that David Cameron would be appointed to the House of Lords and would serve as Foreign Secretary. Mr Speaker wrote to the Procedure Committee on 22 November requesting that it explore options for enhanced scrutiny by the House of Commons of senior Ministers in the House of Lords. The Procedure Committee, of which I and some other Members present are members, published its report and recommendations—including the key recommendation that the Foreign Secretary should appear before this House to answer questions—on 17 January 2024. Two months later, we are still waiting for the Government’s response.
As I said in my point of order last week, there have been two sessions of FCDO questions since that report was published, and no sign of the Foreign Secretary. In fact, there have been three sessions of FCDO questions since his appointment, and if the usual rota continues, we can extrapolate that there ought to be another three sessions before the summer recess. FCDO Ministers have responded to 10 urgent questions, including one today, and made eight oral statements since the new Foreign Secretary was appointed. There have been 22 written statements from FCDO Ministers in the Commons, three of which have been on behalf of FCDO Ministers in the Lords, including one in the name of the Foreign Secretary himself. As each question session passes, and as each urgent question is answered or statement made, the accountability gap grows wider, the frustration of Members of this House increases and the absurdity of the situation becomes clearer.
I welcome this debate. As Lord Cameron has agreed, and as has been re-instigated, he is now taking half an hour of questions in the Lords directly to him, not to other Ministers. In the House of Commons we get no minutes and no questions to the Foreign Secretary. That cannot be right for a democratic Chamber, can it?
Absolutely. That is precisely why it is important that we have the opportunity to draw these points to the Government’s attention. Incidentally, I do not know whether he has written it down or said it anywhere, but around the time of his appointment there were indications from Lord Cameron that he would be happy to co-operate with accountability mechanisms, but they do not seem to have been put in place, and I will come back to that.
Accountability is particularly important, as the hon. Gentleman suggests, because we are living through times of significant global turmoil, with perhaps some of the biggest threats to the established rules-based order of peace and security since the second world war. There is no guaranteed or permanent mechanism for Members of this elected House as a whole to directly question and scrutinise the work of the Government’s chief diplomat, their roving ambassador on the world stage, their voice in the corridors of foreign powers: His Majesty’s Secretary of State for Foreign, Commonwealth and Development Affairs, the right hon. David Cameron, Baron Cameron of Chipping Norton.
It is a pleasure to follow the hon. Member for Rochdale (George Galloway). I agree with every word he said, and I am not sure that I have ever been in a position to say that.
I rise to make a few observations about the Procedure Committee’s report, which was not an easy one. I do not think that any of us came into this place with the idea that we would willingly invite Members of the House of Lords to come and sit on these green Benches and address us, and I do not think that any of us want to accidentally encourage this Government or future ones to appoint more Secretaries of State in the House of Lords because they can get away with it. Finding a bit of accountability does not make it all right. However, the simple fact is that the Government appointed somebody from the House of Lords as the second most important member of the Government at probably the most dangerous time in the world in my adult lifetime, resulting in a situation whereby we cannot question him or impress our views on him before he goes around the world, and we cannot hear from him about what he has said at all his meetings.
I actually think that the appointment of Lord Cameron was a very good one. He is an incredibly able politician and, from the look of it, he has been working incredibly hard to represent our national interests around the world. I will not criticise the individual who has been appointed, but surely the Government can see that this is not a tolerable situation for the elected House to be placed in.
The Procedure Committee tried to come up with some sort of solution that gave us a bit of accountability, accepting that we could not find a perfect solution. We started with our predecessor Committee’s views on the appointments of Lord Mandelson and Lord Adonis back in 2009. The Committee recommended having question sessions in Westminster Hall every couple of months, but the problem we had with that is that Westminster Hall is not big enough. If Lord Cameron were to appear in Westminster Hall to answer general questions about foreign affairs, or even on a single topic, we might find that substantially more MPs would want to ask questions than could be safely accommodated, which would equally apply to any Committee Room in this place. Then we would have to work out whether we would have balloted questions in advance, which is not generally done in Westminster Hall. We would have to put in place a whole load of arrangements that we have never had before for the relatively short time left of this Parliament.
I hope that Lord Cameron is Foreign Secretary for a long time, which would mean that such arrangements are needed for a lot longer, but if we rule out Westminster Hall and any Committee Rooms, the only thing we are left with is conducting question sessions in the House of Commons Chamber. We did not have general support for the idea of having a Member of the House of Lords sitting on a green Bench and addressing this House from the Dispatch Box, and there is not a great deal of precedent for that. It leaves only the Bar of the House as the place to conduct such sessions. We even talked about the idea of Lord Cameron beaming in from the screen, like President Zelensky did or like Boris Johnson did when he was answering Prime Minister’s questions when he had covid. Not having the Foreign Secretary here, so that we could look him in the white of his eyes, would have been imperfect too.
If we believe that this House should have some level of scrutiny of the Foreign Secretary, there is no alternative to it taking place in this Chamber, and the Procedure Committee came up with the least bad option of that happening at the Bar of the House. We would have no problem with the Government saying, “Let’s have him on that Bench and at the Dispatch Box,” but it would be equally imperfect to have him here for general Foreign Office questions. We could have recommended that he come here for a dedicated half-hour question time, like he does in the House of Lords. The problem is that that would give the one Secretary of State in the House of Lords greater accountability in the House of Commons, because he would answer questions for a whole half an hour a month, whereas any other head of Department probably answers only a handful of questions in their half an hour of question time. We could then have more scrutiny of the Secretary of State in the Commons than in the Lords, which would not be perfect either.
All the options we have are terrible, but this was not the starting point of the Committee or the House; it was the position we were put in by the Government and we were trying to find the least bad way of fixing it. I hope the Minister does not resort to nit-picking about individual ideas. I hope he engages with the general principle that if the Government choose of their own volition to have one of the great offices of state held by someone who is not a Member of the House of Commons, there should be opportunities for the House of Commons to have regular scrutiny of that individual. We should be able to question them on what they are doing and try to impress on them the views of this House, so that they can present them around the world.
Alternatively, should we just leave it and accept that this is the way it has always been, given that Ministers in the Lords do not appear in this Chamber? I think that the balance we need to strike is that if someone of that seniority is dealing with issues of the level of importance we are seeing at the moment, we have to find a way forward in this situation. I have great regard for the Minister for Development and Africa, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell), but with the best will in the world, he is not the Foreign Secretary. We need to be able to question the Foreign Secretary on the big issues.
Hopefully the Minister will give us the good news that the Government have come up with a preferred way for this to work, so that we can get on with this rapidly. That is what a modern democratic Parliament has every right to expect. If we are going to have Ministers in senior positions who are not Members of this House, we must find a way of scrutinising them, as is done in nearly every Parliament around the world that appoints Ministers who are not in that Chamber. They find a way to do it. This is not rocket science, and it is not without precedent. We can find a way of doing it, so let’s get on and do it.
(5 months, 1 week ago)
General CommitteesI beg to move,
That the Committee has considered the draft Reporting on Payment Practices and Performance (Amendment) Regulations 2024.
It is a pleasure to serve under your chairmanship, Mr Stringer.
The draft regulations were laid before the House on 10 January. The Government have declared 2024 to be the year of small businesses. Small and medium-sized enterprises are the backbone of our economy, making up to 99.9% of UK businesses, employing millions of people and enriching our everyday lives. So far this year, we have further improved our Help to Grow campaign and established a Small Business Council, and today we are here to extend the Reporting on Payment Practices and Performance Regulations 2017.
Tackling late payment is critical to the UK economy’s growth and productivity; 56 million hours are wasted each year by businesses chasing late payments, and small businesses are being let down. Late and long payments contribute to an estimated 50,000 UK business closures each year. The Reporting on Payment Practices and Performance Regulations and the Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017 were introduced to bring transparency to the payment practices of large businesses. The regulations require businesses above a certain size threshold to publish information twice yearly on their average payment times, how frequently they pay suppliers late, and their standard payment terms. Those regulations and the transparency they have brought mean that payment times across the UK have gone down. That is good news. We want to continue that trend by extending the requirement to report and to improve transparency through the introduction of new metrics.
Last year, my colleague the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who is the Minister for small business, launched a consultation seeking views from the public about the existing regulations and how we can improve them. Trade associations and businesses across the economy endorsed our proposals to extend the regulations and to introduce new reporting requirements. I will now briefly outline the draft statutory instrument.
The first objective of this draft instrument is to extend the 2017 regulations beyond the expiry date of 6 April this year until 6 April 2031. The extended 2017 regulations will be subject to a further statutory review in April 2029, before their new expiry date. In 2017, the regulations were to sunset without extension, which would remove payment time transparency entirely. Without these reporting requirements, we would deprive small businesses of crucial information that helps them to decide who to enter into business with, and arms them in renegotiation of payment terms that suit.
The second objective of the draft regulations is to require large companies and limited liability partnerships in the scope of the 2017 regulations to disclose additional information and report to new payment performance metrics. One of the new metrics is that businesses are to be asked to state the value of the invoices paid during the reporting period. Small businesses told us that they wanted even more clarity about how large businesses act. The other new metric is a requirement for businesses to report on the percentage of invoices that they dispute. Small businesses are concerned that the practice of raising frivolous disputes to avoid making payments on time is becoming more common, so we are taking action to address that.
The third objective of the draft regulations is to clarify the reporting requirements when supply chain finance is used by large businesses. This amendment will change reporting to make sure that the use of supply chain finance by businesses is more accurately reflected in the reporting data.
I thank the 137 respondents to last year’s consultation on the draft regulations. They included small and large businesses, as well as representatives of trade bodies, who provided us with the support that we need to extend and improve the reporting requirements. I hope that the Committee can see the benefits that the regulations will provide.
I support the idea of disclosure of invoices that are disputed. Businesses in Amber Valley commonly tell me about that pretty naughty trick to avoid paying—people just pay late because they dispute the bill. What will the data published show? Will it literally show, for example, that this person disputed 10% of their invoices? Will it show how many of the disputes were resolved with full payment being made, showing it was a scam? Or will it just show that straight percentage, which might be quite meaningless?
My hon. Friend makes a very good point, which reflects the strain that can be put on small businesses when payments are delayed, although the issue of scams may be a little bit outside the scope of the draft instrument. This is fundamentally about ensuring that we have the right framework in place, are encouraging good practice, and doing what we can to bring down payment times. Already, payment times have been brought down to, I believe, 35.6 days. This affirmative instrument will drive that good effect even further. I commend the draft regulations to the Committee.
(1 year, 1 month ago)
Commons ChamberNot only are we going to deliver on our manifesto commitment to build 40 new hospitals across the country by 2030, we are not stopping there; we are also delivering 100 hospital upgrades across the country, and crucially more than 100 new community diagnostic centres to speed up treatment for people, including in the constituency of the deputy Leader of the Opposition, and the constituencies of the shadow Work and Pensions Secretary, the shadow Energy Secretary, the shadow Justice Secretary and the shadow Attorney General. That is how committed we are.
Let me end on this. The Leader of the Opposition mentioned Hillingdon Hospital in Uxbridge. I want to help the people of this country. I want to make sure that not only can they get to work but they get the care that they need. Why on earth does he want to charge them £12.50 every time they visit their GP and hospital?
This is something that has been raised with me by those in the industry. We are committed to protecting the environment and delivering on our net zero targets, but the Department for Environment, Food and Rural Affairs is continuing to engage closely with manufacturers, retailers and packaging companies on the precise design of the scheme. I know that Ministers will continue to keep this House and my hon. Friend updated.
(1 year, 1 month ago)
General CommitteesMay I ask the Minister one question? He said that the UK Statistics Authority’s role is to check the quality of the statistics produced by bodies, but does it also require them to produce statistics on certain issues that are not currently being covered? For example, a year ago the Pensions Regulator was not collecting statistics on how many pension schemes had invested in leveraged liability-driven investments, which nearly crashed the economy last autumn. We are a year on and still do not know how many pension schemes lost out by having invested in such instruments. Is there a way that the authority can use its powers to require the bodies in this orbit to collect statistics that we need to monitor the health of the economy?
(1 year, 2 months ago)
Commons ChamberThe Liberal Democrats support the provisions in the Bill that will speed up and simplify procurement, and create greater opportunities for new entrants, such as small businesses, to access public contracts. However, we have concerns about those areas of the Bill that create opportunities for circumventing the rules that govern the procurement regime. The Government’s shambolic procurement of personal protective equipment during the pandemic exposed the weaknesses in our procurement system, and showed what can happen when Ministers are awarded too much power, and face too little scrutiny. It is vital that safeguards are in place to ensure that billions of pounds of taxpayers’ money does not go to waste.
Amendment 1, which is in my name, seeks to prevent the use of VIP lanes in the procurement of public contracts. The bypassing of the usual procurement rules via VIP lanes during the pandemic saw £3.8 billion of taxpayer funds handed over to 51 suppliers, many of whom were closely tied to Conservative Ministers and their friends. We all know of the scandals that emerged off the back of those contracts; they included reports of excessive profits and conflicts of interest. The Public Accounts Committee, of which I am proudly a member, has, under the chairmanship of the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), carried out an inquiry on the management of PPE contracts. We found that at no stage was any consideration given to potential conflicts of interest between individuals making referrals through the VIP lane and the companies that they were referring.
The Prime Minister said that he was “absolutely shocked” to read of the allegations against Baroness Mone, but future scandals will not be a shock unless the Government take action to ensure that our public procurement regime cannot be exploited, and prevent Ministers from giving special treatment to their friends without proper scrutiny. Transparency of procurement decisions is paramount. I therefore urge the Government to accept amendment 1, ban VIP lanes and crack down on future cronyism and sleaze.
New clause 9 would ensure that the national health service complied with the public procurement rules set out in the Bill—I would like to press it to a Division this afternoon. Liberal Democrats in the Lords successfully amended the Bill to bring the NHS into its scope, so I am extremely disappointed that the Government have overturned the Lords amendment and are reinstating a huge carve-out for the NHS. Without new clause 9, the Secretary of State for Health will be able to make up their own rules for huge swathes of NHS procurement via secondary legislation. Handing over such a wide-ranging power to the Secretary of State without ensuring proper scrutiny is not the hallmark of a Government who wish to govern with integrity and transparency.
The Government argue that the procurement rules are important for all procurement decisions, so it is unclear why they believe that the NHS, which has a procurement spend of many billions of pounds, should fall outside the new regime. Surely it is essential that the largest public organisation in the country follow the same procurement rules as all other organisations. I therefore urge the Government to accept the new clause, and support the Liberal Democrats in ensuring that NHS procurement represents value for the taxpayer and is subject to proper scrutiny.
To conclude, the Liberal Democrats support efforts to reform our procurement regime, and to introduce new rules to increase transparency and create opportunities for small businesses, but there is too much room in the Bill for the rules to be circumvented. The Prime Minister’s pledge to act with integrity and professionalism risks becoming an empty promise unless the Government take action to prevent the use of VIP lanes. Further, it would be ludicrous for NHS spending to be left outside the regime that governs all other public bodies. Public procurement is the largest area of public spending, totalling approximately £300 billion a year. It is vital that the taxpayer has confidence that the Government are taking due care, and confidence that money is spent in accordance with fundamental principles of transparency and fairness.
It is a pleasure to follow the hon. Member for Richmond Park (Sarah Olney). I rise to speak to amendments 61 to 67, which stand in the name of the right hon. Member for Barking (Dame Margaret Hodge)—sadly, she cannot be here today, so Members are stuck with me. I cannot do an impression of the energy she would have brought to this debate, but I can try to present the arguments that I think she would have made.
What we are trying to do with these amendments is strengthen the provisions in the Bill to help tackle economic crime. One would think, quite logically, that in a Bill on public sector procurement, the risks of economic crime would be quite a significant issue that we would be trying to deal with. I think it is quite right that we use the Bill to tackle issues of national security or modern-day slavery, but equally, I think it is wrong that we do not have the full protections we need for economic crime in the UK.
This is not just a theoretical problem. In a survey from about five years ago, about a quarter of councils said that they had been victims of corruption in their procurement processes. We estimate that the losses are around £876 million a year—the biggest cause of financial loss in local government—so there is clearly plenty of scope for improvement in our performance. We welcome the fact that under the new UK procurement regime, we have an exclusion and debarring regime that is much better, probably much tougher, and hopefully much easier to use. Those provisions do exist in the EU procurement regime, but they have been extraordinarily rarely used in the UK. I think we all hope that we will be much more effective at using the protections that we are putting in place through the Bill.
Exclusion and debarment could be a very effective way to incentivise good governance within suppliers, but also to enable local authorities to crack down on and get rid of corruption and fraud in procurement. Indeed, the United States goes a lot further to protect procurement by encouraging whistleblowers to come forward with information through the False Claims Act. In doing so, the US has recovered about £50 billion in respect of fraud in Government procurement and spending. Does my hon. Friend agree that a stronger whistleblowing framework and anonymous whistleblowing, perhaps through a hotline for procurement, could potentially save taxpayers millions of pounds?
I agree with my hon. Friend and commend her for the considerable amount of work she has done on whistleblowing—she truly is an expert. In general, the Americans have some good ideas on this. I was at a briefing last week where someone took me through those powers: if someone brings a private prosecution and the Government take it on halfway through, that person gets to keep 20% of the proceeds that are recovered, and if the Government do not take it on and that person is successful, they get to keep 40%. That creates a real incentive in the system for someone to take the huge risk to their personal wellbeing and career of exposing wrongdoing. I think we could learn a very great deal from the American position in that respect.
The amendments I want to speak to can be covered in three different groups. Amendment 67 would give contracting authorities the power to exclude suppliers when they have evidence of economic crime-related wrongdoing, not just a conviction for it. The Bill contains various measures by which authorities that are going through a procurement exercise do not actually have to see convictions—they can see credible evidence. We have ended up in the rather bizarre situation where I can exclude somebody from a procurement if I believe they have been part of a cartel in South America even though they have not been convicted, but I think they might well have been if they were in the UK; however, I cannot exclude somebody who I have real evidence has been committing economic crime in the UK, because there has not been a conviction for it yet.
The problem with that model is that convictions for crimes such as fraud have fallen by about two thirds in the past decade. We have not had a successful prosecution of a large corporate for fraud for a decade, I think, although we have had some deferred prosecution agreements. If we are relying on excluding dodgy companies from the process only where there has been a conviction, we are going to end up in the rather unfortunate position of there not being enough convictions to make the regime successful.
To me, it seems quite reasonable to allow an extension of the more wide-ranging rules in the Bill to apply to an authority that has credible evidence that an economic crime has been committed, especially if that prosecution process is ongoing when that authority is doing the procurement exercise, instead of it not being able to exclude that party from the exercise even though there is a real chance that they could be convicted quite soon. I just think that situation would be a real weakness. I am not saying that we would mandate exclusion in that situation, but empowering authorities to not go ahead with that party or bidder when they have credible evidence seems like quite a reasonable thing to do.
When this issue was raised in the House of Lords, the Government’s response was that it would impose an unreasonable burden on contracting authorities, but as I have just said, the Bill already imposes quite significant potential burdens to try to work out if somebody has been guilty of cartel-like behaviour. I suspect that would be harder than working out whether they have been guilty of actual fraud in the UK. We have the new unit being created that could support authorities in that process. That would not be mandatory. It would be an option that they could use in situations where they have that evidence, so there would not necessarily be any burden at all. I urge the Minister to give real consideration to whether a system that only allows successful prosecution of excluded companies that behave terribly in these areas of crime is the right balance to strike.
(2 years, 1 month ago)
Commons ChamberMy right hon. Friend makes a powerful and valid point. The Bill will ameliorate a plethora of problems that have been caused by the protocol.
As my right hon. Friend knows, by providing an alternative UK rules route to market in Northern Ireland, clause 7 protects the integrity of the UK’s internal market. Clause 8 ensures that the protocol no longer prevents a dual regime such as that introduced by clause 7. It makes provision to exclude EU law where it would prevent goods made to UK rules from being placed on the market in Northern Ireland in accordance with clause 7. It means that goods made to UK rules can be supplied in Northern Ireland in accordance with clause 7 to enable the functioning of this dual regulatory regime.
Clause 9 provides a Minister with the powers to make provisions through secondary legislation to ensure the effective working of the dual regulatory routes in Northern Ireland. The dual regulatory regime will need to take into account the results of engagement with business, which we have already undertaken and will undertake much more of, and it will need to be able to evolve over time as UK and EU regulatory regimes change. The default dual regulatory regime may also need to be amended to ensure that it works effectively for different types of goods—for example, should it be required to ensure that specific highly regulated goods regimes can function effectively. So clause 9 is needed to ensure that goods are compliant throughout the supply chain for traders operating under this dual regulatory regime, whichever route is chosen, and it will therefore safeguard the interests of consumer safety and biosecurity arrangements and maintain appropriate public health standards. The clause is essential to ensure the effective working of the dual regulatory routes and protects the integrity of the UK’s internal markets as well as the EU’s single market.
Will my right hon. and learned Friend confirm what the default position will be if a business has not made an election? Will it operate under EU law unless it positively chooses to use UK regulations? What will the process be for making this choice? Will someone have to file a document with an authority to say that they intend to use UK regulations when they make goods in Northern Ireland? Will there be a public register? Will it be an entirely private choice for a business? Will no one know publicly what they are doing?
The first thing to state clearly is that no business will be forced to do anything. They will not be obliged to choose one over the other. It will be up to businesses to do that. One power we will give to Ministers in due course, when the Bill has passed, is to make regulations that will fit in most neatly with businesses’ wishes and desires.
If I may, I will make a little more progress.
Clause 9 provides a Minister with the powers to make provisions through secondary legislation to ensure the effective working of the dual regulatory routes in Northern Ireland.
I will move on to clause 10, conscious as I am of the Second Deputy Chairman’s admonition about speed. The clause defines the types of regulatory activity covered by the dual regulatory regime established in the Bill. This provides clarity on interpretation of the Bill’s provisions in relation to the dual regulatory regime and makes the scope of that regime clear.
Clause 10(4) provides that a Minister of the Crown may, by regulations, make provision about the meaning of “regulation of goods” in this Bill, and that includes changing the effect of other provisions of the clause. We want to ensure that the sale of goods made to UK rules in Northern Ireland is not prohibited due to a particular aspect of regulation falling outside the meaning of “regulation of goods” in clause 7. So the power ensures that goods will be able to benefit from the dual regulatory regime.
(2 years, 1 month ago)
Commons ChamberI very much agree with the right hon. Gentleman. Our first preference in all these matters should be a UK-wide solution, and only when that is not available, for whatever reason, should we consider something more bespoke for Northern Ireland. We are discussing the protocol, and I reiterate that this issue is very much in the interests of the entire UK agrifood sector, which is an export sector. Many Members talk with great pride about different industries in their constituencies, and all of those are struggling as a consequence of the impact of Brexit. I am labouring the issue of red and green channels, and the veterinary agreement, to point out that solutions are out there and that the measures in clause 4 and elsewhere in the Bill are not necessary. Solutions are there if people have the creativity and willingness to go out and grasp them, especially when that is fundamentally in the interests of us in the UK, as well as being of benefit to the European Union.
Reference was made previously to the Acts of Union, and I wish to clarify a couple of points in that regard as the situation changes over time. The Acts of Union of 1800 were between Great Britain and Ireland, and we are now talking about Great Britain and Northern Ireland, so that is one change we have seen via the Government of Ireland Act 1920, and the more recent Good Friday agreement, the Northern Ireland Act 1998, and the principle of consent, which is the bedrock of that. That is just a precursor, and while I agree fundamentally with the point just made—that our preference should be for a UK-wide approach and solution to some of these issues where possible—we must recognise none the less that Northern Ireland has always, from its inception, done things differently from the rest of the UK in economic matters.
Northern Ireland has always had devolved powers, right from its foundation, and on matters such as employment law or other issues it has had the right to diverge. Further to that, although I am not encouraging checks down the Irish sea, for various reasons throughout our history, including in wartime and other times of stress, there have been checks on certain movements across the Irish sea, including agrifood movements. Indeed, it is accepted practice that farm equipment is inspected. Ireland only really works as a single unit in terms of animal health, and before a lot of the controversy emerged around the protocol, that was an accepted fact for people from all backgrounds in Northern Ireland, as it was the most pragmatic way of doing things. In the same way, the single electricity market on the island has not been a source of debate, although it is a reality that Northern Ireland energy issues are distinct from those in Great Britain, and happen primarily on an all-Ireland basis.
To conclude, I will stress a couple of points. First, if the will is there, the means exist to resolve these issues without going down the route of unilateral action. Under the protocol, there is scope to progress a lot of those issues, including within the current negotiating mandate for the European Commission from the European Council. The question of medicines was progressed without a change in mandate, and the European Union went ahead and legislated for change. Secondly, issues can be addressed through supplemental agreements to the trade and co-operation agreement—the veterinary agreement probably fits that category best. A specialist committee has been set up for that purpose, so a vehicle exists to progress similar issues. While the UK Government have put forward their Command Paper, the European Union put forward its own proposals in October last year, and updated proposals last month.
If clause 4 remains as currently drafted, including the excluded provision, there will be a series of consequences—indeed, there will be consequences from the Bill itself—both for the UK and, in particular, for Northern Ireland. Those will include the undermining of the rules-based international system; setting a very bad precedent by breaching international law; and the risk of a very damaging set of EU retaliations, right through to a full-on trade war. Sadly, we are already seeing the consequences for UK academics and researchers who have been excluded from Horizon Europe. Research has been a real success story for the UK, so the costs are already clear in that regard—costs that are being paid for something that is not necessary, is unworkable, and is counterproductive.
For Northern Ireland, the effects of clause 4 will be as follows: it will undermine our access to the single market and the customs union. It will create more and more uncertainty for businesses as to the legal regime under which they are operating. It will pose dilemmas to members of the Northern Ireland Executive about how they conduct their duties. Finally—I say this with a degree of trepidation—it will beg the question of how and where the interface between the UK economic zone and the European Union economic zone will be managed. The answer to that question may well pose even greater challenges and difficulties.
It is a pleasure to speak in this debate, Madam Deputy Speaker, and to follow the hon. Member for North Down (Stephen Farry); I agree with some of what he said, if not, perhaps, some of his conclusions. I think that, of all the contents of the Bill, the Government are on the strongest ground when it comes to the clauses we are now debating, and that the EU could have found a way of agreeing with the UK Government how to fix this problem. In the protocol, it was agreed that Northern Ireland was in the UK customs territory, and only goods that were at risk of going into the single market needed to be inspected as they crossed the Irish sea. We ended up with the EU seemingly interpreting everything as possibly being at risk of going into the single market, which produced a ridiculous level of tests that would never be acceptable to the Unionist community of Northern Ireland and are doing the economic damage and causing the tensions we have seen.
It should be obvious and acceptable to both sides that it has been agreed that Northern Ireland will have a foot in both camps: a foot in the EU single market and the EU customs zone, and a foot in the UK single market and the UK customs zone. The only way to make that work is to accept that there is a porous border, where there is no way of exercising the usual level of control that the EU would insist on at its other single market borders around Europe. The key questions for everyone to focus on are these: what goods are we really worried about? What goods have a real risk of crossing that border without being checked—without having the customs declarations and the duty paid, or the various other checks that are required? Finally, how do we put in place measures that can mitigate that risk, and make people on both sides of the border happy that nothing is crossing that border that poses a real threat to the integrity of either market?
To be fair, the UK Government have been extraordinarily generous, not just at the Irish border but at the Dover-Calais border, by not introducing the checks we could have introduced and which we would expect to see at a normal border, because we largely trust goods that are in free circulation in the EU, even if they are not absolutely consistent with UK regulations, either now or in future, or perhaps there is a theoretical customs issue, even though we have a zero-tariff, zero-quota deal, and there may be some duty payable because of rules of origin. We have been extraordinarily relaxed in accepting that those risks are much lower than the risks of trying to impose the burden of huge amounts of checks.
Until we get the EU into the mindset of accepting the same position in relation to goods circulating in Northern Ireland, there is no solution, because at some point there will have to be a border with checks and processes somewhere. We know it cannot be on the island of Ireland. We accepted that trying to make the EU put the border between the European mainland and the island of Ireland would be a horrible situation that the Republic of Ireland could never accept and effectively mean that it had left the single market by mistake, which the Irish Government would never entertain. It always looked to most people that there was the prospect of a compromise by doing something down the Irish sea, where goods spend several hours on a ship allowing for inspections and for declarations to be made, but that it had to be done sensitively and only on the things that were really at risk, otherwise we would end up with the problem we have now, where the Unionist community will not accept it and there is too big a dividing line between the UK mainland and Northern Ireland.
I support what the Government are trying to do and some kind of red and green channel is the right solution. I think the problem we have is that we have extraordinarily little detail about how it will work and how we satisfy the EU that the data we think we can collect and give it is sufficient to get it in a place where it will not have some horrible overreaction. We have not managed to reach an agreement. In fact, I understand it will not even look at our database and the data we could share to see if it is enough to get it there.
We have what looks like a theoretically attractive solution that is the right end position, but we have no idea how to make it work on the ground. We are going from a position where it looked like the EU was going to accept trusted trader exemptions, where everything must be checked and declared unless we have pre-agreed that certain traders are trusted and therefore we can exempt them from it, almost to a position where, if I read red and green right, everything is exempt unless either the trader self-declares that he will go into the single market, or we presumably do some risk-based inspection and spot something that should have been in the red channel in the green channel. It is a stretch to think we will get the EU happy with that without its having serious trust in our internal identification processes.
Then there is the difficult scenario of what happens when somebody changes their mind: goods go into Northern Ireland to be sold in a Northern Ireland store, and then they get low on stock in the Republic of Ireland and decide they want to move them into the Republic. The goods will not have been checked and they will not have done the customs declarations. What will the process be? Where do they go to get the goods checked so that they can legally move them across the border? Or do they just move them, nobody ever checks it, it is all fine and that is that? Again, I would be surprised if we get the EU happy about that. We are going from a position where goods are in free circulation on the island of Ireland, to a position where goods may not be in free circulation on the island of Ireland. How do we fix that?
I urge the Government, as the Bill progresses, to publish the processes for exactly how that will work, and how we can have an effective international border and make the red and green lanes work, so that we can show we are really trying to identify the goods most at risk of cheating or abusing the rules to try to get around them. If we can do that, there is scope to negotiate with the EU and get to the end point that we will inevitably have to get to. Unless the EU wants no border at all or a border on the island of Ireland, it will have to make the system work. That has been apparent for the couple of years since we knew this was coming, but we need to have in place trust between the EU and the UK Administrations, and we need to have the working arrangements and trust between the Irish and the UK authorities in Northern Ireland, so they can work together, trust each other to do joint inspections and share information on a real-time basis—all those common working practices that we have not managed to get to, due to the tensions on both sides, and where we need to get to.
The question we have to ask is: does proceeding with the Bill help us to get towards negotiating a compromised, pragmatic end position or does it make that harder? Fundamentally, I suppose the Government’s answer will be, “We have tried to get the EU somewhere sensible on this matter for the past year or more and we have not managed it. So we will put in place these arrangements and the EU will have a choice: either come and work with us and get to the stage where you are happy with the processes that we have in place and the data we can share with you, or it is just tough—accept what we will offer you.” I sincerely hope, before we do this on a unilateral basis, that at least in this area, where it looks like a compromise should be achieved, we manage to put in place something that both sides are happy with.
I call the shadow Secretary of State.
(2 years, 9 months ago)
Commons ChamberI was personally very disappointed when we could not get approval for the Valneva vaccine in the way that we had hoped, and I know how disappointing that was to colleagues in Scotland. I will certainly ensure that the hon. Member gets the relevant meeting. What we are doing is investing massively in this country’s vaccine capability across the country so that we are prepared for the next pandemic, and I very much hope that Valneva will be part of that.
I want to reassure my hon. Friend, and indeed the House and the country, that cases such as the very sad one that he raises are extremely rare. We are putting in more money to gather evidence for claims such as one that he describes, but I want to repeat what is perhaps the most important message that I can get across today, which is how vital the vaccination programme is, how safe it is and how important it is that everybody who is eligible gets their booster when they are called.
(3 years, 1 month ago)
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My hon. Friend is absolutely right. As I have already said in this Chamber, tremendous work has been done with every corner of the UK and every devolved Administration, whether that is the vaccine programme, the furlough scheme or the rapid increase in testing capacity.
Has the Minister read the allegations made by Dominic Cummings that Ministers and officials would take procurement decisions and then subsequently a meeting would be arranged to pretend to retake them and go through the paperwork properly? Can she confirm that such behaviour would be completely unacceptable and that any investigation is taking place to determine whether these allegations are true?
I am afraid that I do not know in relation to the private meetings that Dominic Cummings had when he was in Government, but I know that he has set out concerns about our response to procurement in relation to getting the wrong answers after the event. I think he is concerned about whether we then create too much process around important decisions that need to be made in the heat of the moment, and he is right to set out those concerns. We need to make sure that our Green Paper on procurement makes us have better decision-making processes in times of crisis that can be properly scrutinised.