United Kingdom Internal Market Bill

Owen Thompson Excerpts

Tuesday 15th September 2020 Commons Chamber

[Joy Morrissey]

Thank you, Sir Graham.

I will conclude by saying—

[Owen Thompson (Midlothian) (SNP)]

Will the hon. Lady give way?

[Joy Morrissey]

I probably should make headway. I am trying to understand and sympathise with the amendments that have been tabled, but I do not feel that they are in any way needed to enhance what is in the Bill. I urge hon. Members to vote to keep the Bill the way it is.

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[Cherilyn Mackrory]

I thank my hon. Friend for his comments and agree 100% with what he said. I want to confine my comments to the specific measures we are discussing today. We are here today, with this Bill progressing through the House, for exactly the reason he set out and because of the comments made at the joint committee’s negotiating table, where what I will refer to as a “foreign power”, as the Prime Minister did yesterday, is trying to interfere in our internal market. That is why we are here. While wanting to keep my comments specific, I must absolutely reiterate that point.

I am hearing what Opposition Members are saying about devolution and their fears that they are being overruled by Westminster, but that is simply not the case from what I have read in this Bill. The advice goes equally to all the devolved Administrations and all politicians get the chance to sit and scrutinise it.

[Owen Thompson]

Will the hon. Lady give way?

[Cherilyn Mackrory]

If I may, I will make some progress. I wish to talk about similarity with the Committee on Climate Change, which spoke to all the devolved Administrations and gave advice to all of them. From that advice, this Westminster Government have formed the Environment Bill, and I am happy to be serving on that Bill’s Committee—I hope it will sit later this autumn. That Bill is facing very little opposition in this place, because it is what we are calling a “broad framework”, and the semantics can be decided after, in this place and by experts in the field. Although I take a great interest in environmental issues and am passionate about them, I am not an expert and I would not expect to be. I hope that those specifics—the targets and everything else being met by that Bill—will be decided with much input from those people.

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[Alexander Stafford]

I thank the hon. Gentleman for making that point, but my point is that this is about equality. We are one country and one family, and everyone should be equal. The father is not superior to the mother, the wife not superior to the husband, and the husband not superior to the daughter. I do not know what sort of family the hon. Gentleman comes from, but everyone is equal in my family.

[Owen Thompson]

Will the hon. Gentleman give way?

[Alexander Stafford]

I have just given way, so I will make some progress first. I am mid-flow.

As I was saying, any services that are authorised in one part of the United Kingdom may be offered without any additional authorisation in all other parts of the UK. Professional qualifications issued in one part of the UK will also be recognised in all parts of the UK. This makes it easier for us to trade and work between our four great nations. The SNP’s amendment 28 goes against the fairness and terms of the Bill, and it will make trade and equality harder for everyone.

For centuries, our internal market has been at the heart of the UK’s economic and social prosperity, and it has been a source of unhindered and open trade across all four countries. Our internal market predates all other economic unions, and it has been uniquely successful in pushing forward economic progress and prosperity across the country. This Bill provides businesses with the certainty they need to grow and thrive. What is more, business organisations agree that the Bill, unamended, does so. The CBI has said that protecting the UK internal market is essential, and the Scottish Retail Consortium has said that protecting the UK internal market will mean that Scottish consumers benefit enormously. Are we honestly saying that if the amendment is accepted, Scottish consumers will benefit more? I do not think so. If the voice of business says this, we should listen to them. We are, after all, Conservatives—the party of business. Business will make us prosper.

I turn to some substantive clauses of the Bill and the nub of today’s discussions. This Bill will see the creation of an independent Office for the Internal Market within the Competition and Markets Authority. It will be a British body monitoring British trade, putting mutual recognition and principles of non-discrimination at its heart—equality. If we are to continue with the levelling-up agenda, we must welcome the OIM, so that we have a body that ensures effective competition in every aspect of the country. It will provide balanced oversight and, ultimately, a central point for the different Parliaments to plug into, thus binding us closer together. In other words, everyone will get a say. The Parliaments and Assemblies of the country will get together to talk and work through difficulties. We will not be pulling apart; we will be coming together under this body, and that will strengthen us. That is why the SNP do not like this Bill. As the hon. Member for Stirling (Alyn Smith) said, they want independence, and they want us not to come together. Under this Bill, we will all come together.

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[Alexander Stafford]

I completely agree, obviously. Parliament should not be getting into this.

[Owen Thompson]

rose—

[Alexander Stafford]

I will give way in a second. Government should not get in the way of business. Business will thrive and needs to thrive. When we fully leave the European Union, we need business to thrive, and we need this internal market to be turbo-charged.

[Owen Thompson]

On interference, is it not the case that the Government are now interfering in devolution in Wales, Scotland and Northern Ireland by imposing the Bill against the wishes of those devolved Administrations?

[Alexander Stafford]

I completely refute that point. In fact, I think the Bill will actually create a better working environment, as I said, by bringing the four components together. Since ’97, the Union has been pulling apart, and the Bill will actually bring the parties together, to talk better. That is why the SNP does not want the Bill, because the Bill actually says that we are one family. Yes, we have differences, and yes, we have different opinions, but we are a family and we need to work together. The Competition and Markets Authority is the Christmas table, bringing us all together from across the land to share the stuffed goose.

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Unfortunately, what appears to lie behind all this is the question that has dogged this Parliament and its predecessor: who governs the United Kingdom? Is it Michel Barnier? Is it the European Community? Is it this Parliament? I believe it should be this Parliament, and the people from all the nations of this nation coming together to govern us. I hope that will be the outcome.

[Owen Thompson]

There are many things wrong with the Bill. Today, we are focused on the creation of yet another unelected body with the monitoring responsibilities to investigate devolved decisions. The current Government seem very keen on creating record numbers of unelected roles. They threatened to abolish the Electoral Commission, so we know that they do not like oversight. But yet another bureaucratic body to investigate and veto what elected politicians decide in the devolved Administrations —is that really what we need? Just because the Prime Minister, and perhaps his Government, are averse to democracy and oversight does not mean that the rest of us are.

Perhaps, if I might be so bold, this is more about the fact that the Conservative party has been unable to win an election in Scotland or Wales since 1957, yet it wants to implement its own policies in disregard of the elected wishes of the Scottish people, who democratically elect the Parliament at Holyrood. Perhaps that is what the Bill is about. Perhaps the Conservative party has taken lessons from some of the donors in the Kremlin.

This unnecessary new body will decide whether a Bill meets the new test for the internal market, putting permanent constraints on the devolved competencies of the Scottish and Welsh Parliaments and the Northern Ireland Assembly. We cannot support such an anti-democratic move in either principle or practice. The amendments seek to remove the Bill’s remit from Scotland. The Office for the Internal Market should not be given powers to monitor the regulatory provisions that apply in Scotland but in not the whole UK. This is nothing short of a threat to Scottish democracy.

How will the OIM’s decisions be scrutinised? Yes, a report must be lodged annually in this place, but nothing tells us at what point that will appear before Members. Will it be like an estimates day? By what process can hon. Members genuinely scrutinise the OIM’s decisions? We need to know. How can we possibly have any clarity about how this will work if we do not know the process of simple oversight and scrutiny?

The regulations proposed to set up this body are unwarranted and lack the necessary clarity about the extent of its remit, how the CMA will receive and consider proposals for investigations and essential mechanisms for democratic scrutiny of the membership and dispute resolution. At very least, it should be essential for all four Administrations to agree at every stage. As the Royal Society of Edinburgh said, the use of this authority against the wishes of the devolved Administrations constitutes a failure of intergovernmental relations.

What happened to the respect agenda? We were told we were in a Union of equals and that we were to “lead not leave”. Where has that gone? Let us make this simple: scrutiny of Bills passed at Holyrood should be undertaken in Holyrood. Transparent, proportionate processes are in place to scrutinise Bills in the Scottish Parliament and consider the input of key stakeholders, including business, public authorities and the public. Replacing that with an unelected body and an unclear process is a retrograde step for transparency in our democracy. It could result in vested interests with financial clout having undue influence, or in regulators challenging the decisions of our elected representatives.

We hear a lot about unelected bureaucrats—we had a lesson from my hon. Friend the Member for Stirling (Alyn Smith), who highlighted that some of the so-called unelected bureaucrats are in fact elected—but this is a genuinely unelected quango. There is no need for the creation of a new body that could scupper much of the excellent evidence-based policy work that has served Scotland so well. Policies such as the minimum unit pricing of alcohol and maintaining free higher education pose no threat to the integrity of the Union, but could fall foul of the rules for this new internal market.

[Alyn Smith]

I commend my hon. Friend on a powerful speech. Does he share my concern that as well as the general structure of this body, it is beyond ludicrous that at this late stage, we still do not know who these individuals will be, how they will be appointed, who they will serve and what policy they will implement?

[Owen Thompson]

Indeed. Hon. Members could be forgiven for thinking that the Bill was being rushed through without a huge amount of thought behind it—not that I would ever suggest any such thing.

The premise of the internal market on which the Bill is based is false. It seems to regard differences in policy decisions taken across different parts of the countries and nations as somehow a bad thing or an irritating bump in the road that somehow has to be smoothed out. That is devolution. The point and principle of devolution is that decisions can be made in a devolved Administration. It was designed to respect localised democracy and better meet differing priorities in different parts of the United Kingdom. Instead, under the Bill, the centralising tendencies of this unequal Union are being put into overdrive.

The Scottish Government have always recognised the importance of free trade across the isles. We have a system in place to govern trading arrangements across the UK, consisting of reserved and devolved competences. Where work is at an intersection of EU law, the four Governments can and should work jointly through the common framework process, although that involves concepts that might be difficult for Government Members to grasp: mutual trust, respect and constructive dialogue, none of which are evident in this Bill. These processes are already there to ensure the continued frictionless trade across the UK that we all want to see, and the Scottish Government happily signed up to this process—it is the correct way to proceed.

The Bill is a political move to curb the power of the devolved Administration, and if this Government continue to seek to guarantee the controlled right of UK companies to trade unhindered in every part of the UK, they should get on with it and use the processes that are already there. The processes in this Bill mean that private health companies or private water companies operating in other parts of the country could soon have a guarantee to work in Scotland, where these things are run by public companies. This is a constitutional and legislative mess.

The Bill is a blatant political move to scupper those rebellious Scots, who just do not seem to fall for the Prime Minister’s charms. He is throwing his toys out of the pram, taking a huff and saying, “It’s ma baw and ye cannae have it.” The Prime Minister had the brass neck to pretend yesterday that each devolved Administration will be “fully and equally involved” in monitoring the internal market, despite sovereignty resting wholly with the Westminster Government. If he is speaking in good faith—it could happen—Conservative Members will back our amendments tonight. They would at least require the approval of devolved Administrations, bringing at least a degree of democracy and accountability to what is, in effect, an unelected body. Surely, that has to be a simple thing to support.

[Wera Hobhouse (Bath) (LD)]

I rise to speak to Liberal Democrat amendment 21, new clause 1 and new clause 4. It will come as no surprise to this House that I have serious concerns about the Bill. As a Liberal Democrat, I believe passionately in devolution; the role of our regional governments in powering their communities is vital. If unamended, the Bill undermines that key function. Government must work for the whole UK. Food standards are a key example in that regard, and I am sure that most, if not all, Members of this House have been contacted by their constituents on maintaining our higher food standards. It is unacceptable that the Government should compromise on standards or harm British farmers by ramming through a damaging trade deal against the wishes of at least one of the nations of this United Kingdom—it is also unacceptable for all our constituents. The Government must co-operate with our devolved Administrations, and I urge Members from all parts of the House to support our amendments, which will strengthen our devolved Administrations.

This is my first speech on this Bill, so let me comment on its specific implication for Northern Ireland, an integral part of our family of nations. The Bill is intended to allow frictionless trade within our four nations, and of course it would not be acceptable to have a hard internal border between any of the component parts. On that point, I absolutely share the concerns of my colleagues on the Government Benches and of colleagues behind me, but the only reason there is any risk of a hard internal border between Northern Ireland and the rest of the UK is the deal that the Prime Minister signed last year, which threw Northern Ireland under a bus—I never forget the anger from my Northern Irish colleagues behind me.

At the time, the Prime Minister called it a “fantastic” deal, so what happened to this oven-ready deal? He has now remembered that he has a responsibility to keep the Union together. The question is: what can he do, after his deal got us into this current mess? The Government have two options: they can renege on the withdrawal agreement, break international law and trash our reputation as a trusted trade partner, or they can uphold the withdrawal treaty, abide by international law and negotiate a deal with the EU that avoids the need for a significant internal border between Northern Ireland and the rest of the UK.

The principle of the rule of law—a principle founded in this country—will be gravely compromised if this legislation is passed as it currently stands. The UK has a proud history of upholding liberal democratic values and setting a global example to stand up for the rule of law. Without significant alterations, this legislation will undermine our commitment to the rule of law. What does that say to the rest of the world about our values? It sends the message that we are ready to rip up agreed rules at a moment’s notice for political gain, not just to our would-be trading partners, but to authoritarian regimes around the world that are themselves determined to undermine the rule of law and promote the politics of division. The rule of law is under attack across the world, from unrest in Beirut to the horrific accounts of what is happening to the Uyghur population in China. The impending economic consequences of covid-19 are causing authoritarian regimes to grab extra power. This is the worst possible time to send the message that it is acceptable in some instances to break the law and go back on our word.