Trade (Australia and New Zealand) Bill

Paul Blomfield Excerpts

2nd reading
Tuesday 6th September 2022 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

Speaking so late in the debate has been of real value, as I have been able to listen to so many contributions from both sides of the House. The debate has been a long time coming, perhaps even longer than many Members have alluded to. Its origins go back to the referendum campaign in 2016, when leave campaigners dangled before us the prospect of trade deals with Australia, the US and India as the main reasons for leaving the European Union, making extravagant claims about the economic benefits. The reality has clearly been very different. With a US deal off the agenda as long as the Government continue with their irresponsible approach to the Northern Ireland protocol, and other deals that have been much proclaimed in fact largely rolled over from those we had previously enjoyed as members of the EU, the Australia deal in particular was lauded, not least by herself, as the great achievement of the new Prime Minister during her spell at the Department for International Trade. It is therefore curious that the Government have been so reluctant to engage with Parliament on the discussion and detail of the deal.

When the deal was announced, Members on both sides of the House probed the Government about it. They brought their experience, as the hon. Member for Penrith and The Border (Dr Hudson) did strikingly in his contribution, and they raised their constituents’ concerns, as others have done today, but they got nowhere. The Australia deal was signed last December and the New Zealand agreement in February. After several months, the Government laid the Australia FTA before Parliament under the CRaG process on 15 June. Ministers promised —as others have made clear, including most recently the hon. Member for Huntingdon (Mr Djanogly)—that there would be full opportunity for debate and a chance to shape the deal.

[Angus Brendan MacNeil]

I thank the hon. Gentleman for giving way; I know I have made a lot of interventions today. One of the reasons for Brexit, of course, was to leave the EU to make trade deals with the likes of New Zealand and Australia, which we are discussing today, but the EU has done a trade deal with New Zealand that is arguably better—[Interruption.] It is better, in fact. And the EU is heading for a deal with Australia as well. That might annoy the Brexiteers, but I really wonder what the future status of these deals might be if at some point the UK rejoins the European Union, or if, after Scotland becomes independent, it rejoins the European Union, and England and Wales trot in behind. Where will these trade deals be then? I do not think the Government have given that point any consideration. The deals are transitory.

[Madam Deputy Speaker (Dame Rosie Winterton)]

That was a very long intervention.

[Paul Blomfield]

I note the hon. Gentleman’s intervention and expertise on trade deals, but I do not think his question is really directed at me. He and others have made the point that the fact that the parliamentary scrutiny period for the CRaG process expired without debate means that there has been no real opportunity for us to look at the deal. The International Trade Secretary studiously dodged meetings of the Select Committee until it was too late for meaningful engagement. Today we are being asked to pass bare-bones legislation implementing an agreement that we have not been given the opportunity to scrutinise.

This matters because these deals set the scene for the way we approach post-Brexit trade negotiations. We have not done trade negotiations for many years, so it is important that we learn from the way this deal is handled and get it right in the future—we clearly did not get it right this time. Parliamentary scrutiny and oversight matter. As the Chair of the Select Committee pointed out, they are important not simply for the health of our democracy, but for our economy. Members have a valuable contribution to make, as we have heard in this debate.

The reasons for the avoidance of scrutiny are becoming clearer. I know the hon. Member for Huntingdon requested positivity, but we need honesty as well. The Government’s own estimate of the benefits of the Australia deal are that it will contribute 0.08% to GDP by 2035; their assessment of the New Zealand deal is that it will add nothing to GDP. As many Members have highlighted, for key sectors, the figures are worse.

The NFU is concerned that UK agriculture will suffer as a result of the Australia deal. Its president, Minette Batters, explained that

“Despite assurances that these sectors would be afforded some level of protection, we will see full liberalisation of dairy after just six years, sugar after eight years and beef and lamb after 15 years.”

That means no restrictions on imports and open market access, which leaves no protection for UK agriculture or our standards, rights and protections. She continued:

“Just as concerningly, the UK has agreed to beef and lamb quotas which will favour imports of high-value cuts, despite this being the end of the market where British farmers tend to derive any value from their hard work. It’s also difficult to discern anything in this deal that will allow us to control imports of food produced below the standards legally required of British farmers”.

Standards are not just important to farmers; 95% of British people think it is important to maintain British food standards through trade deals. There is also concern in the agriculture sector that Australia approves the use of almost three times the level of pesticides as the UK does.

I served with representatives from every party in this House and representatives from across business and industry on the UK Trade and Business Commission. As part of our work on this deal, we heard, for example, from a beef farmer, Jilly Creed, who explained that hormone beef and antibiotic use is a big concern in the sector. She illustrated the differences between UK and Australian practice in the industry in relation to animal welfare and environmental safeguards, telling us that

“Our cattle go 30 miles down the road and are slaughtered within two hours of leaving this farm. Cattle in Australia can travel up to 24 hours without food and water”.

Kieran Box, of Friends of the Earth, talked to us about environmental issues, saying that

“Prioritising a negotiating partner like Australia…with a lack of progress towards climate targets, with some fairly poor enforcement of environmental laws at the state level, and with the lack of enforceable commitments that we see in the FTA to progress on multilateral environmental agreements, it just feels that we have a set of multilateral environmental commitments on one side and we have a set of trade agreements on the other that pay lip service to those, but in practice they are contributing…to emissions.”

The TUC told us that the sanctions mechanism in these deals for issues such as workers’ rights degradation are so

“restrictive and difficult to be actually brought into action that we don’t think it’s going to be possible to use”.

It is clear that, desperate for a post-Brexit deal, the Government were willing to secure this one at any price, regardless of the damage to communities, industries and the environment. That underlines the importance of effective parliamentary scrutiny. There is real concern that the regulation-making powers in clauses 1 and 2 will enable existing legislation to be amended significantly without scrutiny, undermining parliamentary sovereignty and transferring yet more power to the Executive.

[Sir Mark Hendrick]

Is it not the case that the whole trick of Brexit was to pretend that trade deals with other countries could compensate for the loss of trade with the EU? We have seen the Government conducting a tick-box exercise where roll-over deals from the European Union were turned into so-called successes, when they were not successes—they were just a copy of what we had with the EU. Australia was the first opportunity to have a template for future deals, but the Government have fallen at the first hurdle.

[Paul Blomfield]

My hon. Friend echoes the point that I am making.

I am drawing my remarks to a conclusion, but I will make a further point. Trade deals and their implementation must be developed with engagement from business and workers so that they can operate effectively.

[Angus Brendan MacNeil]

I am grateful for the hon. Gentleman’s indulgence again. He has made some cracking points in his speech, including one about parliamentary input. We could argue that if we had a debate in Parliament beforehand, it would help our negotiating hand, because the negotiators at the table could tell their opposite numbers, “We won’t get this past Parliament, given the debate that we’ve had.” The involvement of Parliament might actually be—and have been—very helpful in those deals.

[Paul Blomfield]

The Chair of the Select Committee makes an important point. In an early intervention from the Government Benches—I do not think it was representative of the views of Conservative Members in general—it was said that Parliaments should not be involved in negotiating trade deals. That is clearly nonsense. That sort of early debate in Parliament would have informed and strengthened the negotiating process, and many of the concerns that have been expressed today would have been avoided.

When the Minister winds up, I hope that he will outline his response to the points that have been made, and what steps he feels should be taken to improve the scrutiny of future deals. I hope he would also agree that the powers exercisable under clauses 1 and 2 of the Bill should be constrained by an objective test of necessity, or at least be subject to the affirmative resolution procedure.

The Australia deal in particular damages our farmers in return for little economic benefit, by the Government’s own measure. It weakens food and animal welfare standards. It falls short on protection for workers. It fails to meet the commitments on climate action that Ministers promised. It is obviously—this is the point that everybody is making—a done deal; it is the new Prime Minister’s flagship agreement. But we need to address its deficiencies and learn the lessons for future FTAs, particularly about the process that we adopt as a Parliament.

I echo the comments made by the hon. Member for Huntingdon about the approach that we need to look at, which is used by other countries. It would provide the engagement that the Chair of the International Trade Committee talks about at an early stage of the process, and it would provide genuine involvement as the deal is secured. It would ensure not only that we have effective parliamentary scrutiny, but that we exercise parliamentary sovereignty, as we should.