Subsidy Control Bill

Debate between Paul Scully and Deidre Brock

Consideration of Lords amendments
Wednesday 20th April 2022 Commons Chamber

[Paul Scully]

The hon. Gentleman makes a really good point. We tried to work with all the devolved Administrations right the way through the process from beginning to end, and we have continued conversations with each of them over this period. Clearly there are, and will be, differences in the process. This needs to work for the whole of the United Kingdom, so I am keen that we continue the dialogue, whether it is with Scotland, Wales or Northern Ireland, to ensure that we can do as much as we can to reach agreement, though clearly that will not always be possible; that is the nature of dialogue.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Is the Minister not saying that ultimately, on these devolved matters, the English Government, as represented down here in Westminster, will have a power of veto over the decisions of the Scottish, Welsh and Northern Ireland Governments?

[Paul Scully]

No. However, the UK Government have a reserved power over subsidy control, so it is the UK Government who act on that reserved power.

Finally, we have introduced an amendment specifying that the Secretary of State may provide statutory guidance to public authorities on pre-action information requests—that is, the provision of information following a request about a subsidy decision to an interested party that is considering whether to ask the Competition Appeal Tribunal to review the subsidy.

I shall now move on to two amendments related to levelling up. Lords amendment 50 makes it clear that addressing local or regional disadvantage is considered to be an equity rationale for the purpose of assessing compliance with principle A. This puts beyond any doubt that a subsidy to address local or regional disadvantage can be given, provided that the other principles and requirements of the regime are met. Lords amendment 9 exempts from the prohibition on relocation those relocation subsidies that have the effect of reducing social or economic disadvantage. The subsidy must, of course, also comply with the principles and other requirements.

Subsidy Control Bill

Debate between Paul Scully and Deidre Brock

2nd reading
Wednesday 22nd September 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

It is a pleasure to respond to the hon. Member for Feltham and Heston (Seema Malhotra) and to follow the hon. Member for Newcastle upon Tyne Central (Chi Onwurah). I thank all hon. Members who have spoken in this important debate. I aim to respond to as many of their points as possible in the time available—I know that we have further business—but I would like to begin by quickly reminding the House of what the Bill signifies and what it will achieve.

The Bill is the very first subsidy control framework designed by the UK for the UK. It will be flexible and agile, allowing all public authorities to design subsidies that deliver strong benefits across the whole UK. For the first time, in all instances, public authorities will decide whether to grant a subsidy. The Bill will provide certainty and confidence to businesses investing in the UK. It will enable public authorities to deliver strategic interventions that will support our economic recovery and deliver on the priorities of the British people, such as levelling up.

We have talked a little about scrutiny; the hon. Member for Newcastle upon Tyne Central spoke about scrutiny of secondary legislation and guidance. I am glad that my hon. Friend the Member for Clwyd South (Simon Baynes) raised the issue of the lack of scrutiny in this debate. It is nice that the Opposition have found a couple of Back Benchers to come and join the debate, but it is outrageous that we have had so little input from Opposition Members.

This Bill will strengthen our Union by protecting our internal market through a single coherent framework that fully complies with our international obligations. On that note, I thank the hon. Members for Feltham and Heston, for Aberdeen South (Stephen Flynn) and for Aberdeen North (Kirsty Blackman) for their points. To ensure that the new regime works for all parts of the UK, we look forward to continuing to work closely with the devolved Administrations, as we have throughout its development, as the Bill passes through Parliament. We hope that the devolved Administrations can understand and support the approach that we have taken, and will give their legislative consent. I can say to the SNP Members who spoke earlier that to date we have had 30 meetings with the devolved Administrations on an official-to-official basis to discuss the Bill, and 10 at ministerial level.

We also heard a bit about the devolved Administrations’ input into guidance. Obviously an agreed framework is needed before there is something to give guidance for, and we have made that clear in discussions with our devolved Administration colleagues. We will continue to work with them as we work through that guidance.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

The Minister will have noted the concern of the Welsh Government about the fact that the agriculture and fisheries subsidies will be within the scope of the UK subsidy regime as a result of the Bill. We have already heard today a member of the Minister’s party express concern about his local farmers being undercut by devolved Governments’ support for their farmers. Can the Minister assure us that this Bill and the United Kingdom Internal Market Act 2020 will not be used to interfere with decisions by the devolved Governments on devolved matters such as agriculture?

[Paul Scully]

We have consulted on agriculture, fisheries, and sanitary and phytosanitary measures. There was no particular agreement among the devolved Administrations, but some people raised those issues.

The Bill introduces a permissive framework. It is totally different from the EU state aid regime, which is the only regime of its kind in the world. No other country, no other trading bloc, has such a restrictive regime, whereby authorities must ask permission and then wait for months to receive it. The Bill flips that on its head. A public authority can give support where it feels the need for it, and only the most distortive levels of support will then be challenged and go through the courts.

Let me turn to some of the issues raised by the hon. Members for Feltham and Heston and for Aberdeen North, and by the right hon. Member for East Antrim (Sammy Wilson) in relation to how this interacts with the Northern Ireland protocol. I reiterate that the UK will continue to be a responsible trade partner that respects our international obligations. However, as the Secretary of State for Business, Energy and Industrial Strategy said in his opening speech, the robust subsidy regime that the Government propose makes it clear that there is no need for EU state aid rules to continue to apply in Northern Ireland, and that all subsidies will be within the scope of the domestic regime. This framework has to work with whatever is involved in our international obligations. However, as the right hon. Member for East Antrim will know, the Command Paper gives the details of that, and I should love nothing more than to hear of rejoicing in his constituency.

United Kingdom Internal Market Bill

Debate between Paul Scully and Deidre Brock

Tuesday 22nd September 2020 Commons Chamber

[Paul Scully]

As I say, we are trying to keep this narrow so that one part of the UK does not face discrimination in another. We want to make sure that we get the balance right between having the benefits of the UK internal market and having legitimate aims on an environmental basis, on public health or on any number of other areas.

Amendment 36 seeks to alter the process by which the list of legitimate policy aims may be changed in the future. These aims allow for an exemption from the requirement prohibiting indirect discrimination, and that could therefore be cited as necessary for implementing a measure that is indirectly discriminatory. The aims are tightly drawn, but the Government recognise that it is important to retain flexibility for the future—for example, to reflect the experience of the effect of the market access principles in practice and based on business feedback. That is why the power is necessary and we cannot accept the amendment.

Amendment 80 seeks to exclude fisheries in Scotland from the market access principles. It is essential that the Scottish industry is able to maximise the return on its fish by being able to access a diverse range of markets and a wide range of consumers. Scottish fish is sold across the UK. However, this amendment would create new barriers to trade, going against the fundamental purpose of the Bill. The hon. Member for Central Ayrshire (Dr Whitford) talked about procurement. With regard to amendment 87, the Government intend to deliver measures on procurement through a wider package of procurement reform that is being implemented shortly after the Bill. A procurement rules reform Green Paper has been drafted and there will be a formal consultation. The aim is for separate primary legislation to follow.

I turn to new clause 5 and amendment 40. The protection of our environment and maintenance of high food standards are of great importance, and the UK Government are committed to maintaining standards across the UK in all these areas. The intention of the amendments appears to be to prevent Ministers from developing standards that differ from those in the EU, even where UK standards better serve the needs of the UK. On that basis, I urge Members not to move the new clause and the amendment.

I thank the hon. Members for Foyle (Colum Eastwood) and for Belfast South (Claire Hanna) for tabling amendments 81 to 85, as they raise the important issue of the recognition of professional qualifications in the common travel area. However, I must oppose the amendments as set out. This Bill is not the vehicle for honouring our commitments in relation to the common travel area. I can reassure the hon. Members that the UK Government acknowledge that the recognition of professional qualifications is an essential facilitator of the right to work associated with the common travel area. My officials are progressing work in relation to the common travel area so that the UK can continue to meet its commitments.

Amendment 27 seeks to give devolved Ministers the ability to decide which qualifications can be accepted as part of the internal market. By giving devolved Ministers the power to decide which qualifications should benefit from these provisions, we could reduce the number of professionals who can move within the internal market. The alternative recognition process outlined in clause 24 grants the flexibility, and will enable authorities to assess on a case-by-case basis whether a person’s existing qualifications and experience are sufficient evidence of the skills required for the profession in question.

I turn to new clause 10 and thank the hon. Member for Brighton, Pavilion (Caroline Lucas), who is no longer in her seat, for her contribution. As I have tried to highlight, the protection of the environment is hugely important and something to which this Government are very committed. However, passing this amendment would not be the best way to protect the environment. We have made sure that there are exemptions from indirect discrimination where the health of animals and plants and humans is concerned. Further to this, the powers in the Environment Bill will mean that future Governments must be open and transparent about the impact of future primary legislation on environmental protections.

Amendment 88 seeks to prevent the Bill from being placed into schedule 4 to the Scotland Act 1998, thus preventing it from being protected from modification or repealed by the Scottish Parliament. If the Bill were to be modifiable by one or more devolved legislatures, it would not be able to provide consumers and businesses with the vital certainty that they currently enjoy. Businesses trading in Scotland would need to consider how the Scottish Parliament may seek to amend or repeal elements of this legislation. That would create disruptive uncertainty, which must be avoided, particularly as we seek to support the UK’s economic recovery from the covid-19 pandemic.

I turn to amendments 9 and 39, and new clause 9. We will continue to work closely with the devolved Administrations to understand and respond to their concerns. In accordance with the Sewel convention, the UK Government have requested legislative consent motions for this Bill from all the devolved legislatures. New clause 9 in particular would place intergovernmental structures in statute, limiting the capacity for discussion among all Governments and the capacity to adapt to this change.

New clause 11 seeks to provide Parliament with information on the working of the Act in a context of developing common frameworks. It is essential that the Office for the Internal Market is available and able to perform its functions at arm’s length from political interference from the UK Government and devolved Administrations.

[Deidre Brock]

Will the Minister give way?

[Paul Scully]

I must bring my response to a close. The amendment risks undermining the independence of the CMA and its global reputation for producing credible, impartial and expert analysis.