Ministerial Severance: Reform

Richard Fuller Excerpts

Tuesday 6th February 2024 Commons Chamber

[Emily Thornberry]

Any of our constituents struggling to get to the end of the week on their wage packet, and who see the amount of money being handed out—essentially as payment for failure—would be astonished that it was allowed. That is why we are trying to change the rules today.

[Richard Fuller (North East Bedfordshire) (Con)]

The right hon. Lady, in her meaningless and bitter speech, is missing the essential point that ought to be at the heart of her argument. When people are struggling, it is galling that someone who already earns a salary of £80,000 a year for being a Member of Parliament, and more on top of that for their ministerial duties, is given another payment when, for whatever reason—the Prime Minister does not like them or perhaps they have not done a particularly good job—they get a severance package. Is the truth of the matter not that Labour should be calling for no severance packages for any Minister when they lose their job?

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 13th December 2023 Commons Chamber

[Stuart Andrew]

I completely agree with the hon. Lady. It was a very important review, and I am glad that my right hon. Friend the Prime Minister made an apology at the Dispatch Box. There will be a statement later, and I suggest that she asks the Defence Minister a question at that point.

[Richard Fuller (North East Bedfordshire) (Con)]

Every year, 800 women pass through immigration detention, including centres such as Yarl’s Wood in my constituency. Many of those women have been trafficked or are victims of sexual abuse. I am working with a group, Women for Refugee Women, to provide a snapshot of the backgrounds of these women. Will the Minister agree to meet us to analyse the results of their findings?

[The Parliamentary Under-Secretary of State for the Home Department (Laura Farris)]

I would of course be happy to meet my hon. Friend. Women who have survived trafficking or sexual abuse are detained only when the evidence of vulnerability in their individual case is outweighed by immigration removal considerations. Victims of torture have their case considered by a single specialist team, autonomous of general caseworkers, and victims of modern slavery undergo a needs assessment to identify recovery needs.

International Trade and Geopolitics

Richard Fuller Excerpts

Thursday 20th April 2023 Commons Chamber

[Darren Jones (Bristol North West) (Lab)]

I beg to move,

That this House has considered international trade and geopolitics.

I thank right hon. and hon. Members from across the House, and the Backbench Business Committee for granting the debate today. I declare my interests as set out in the Register of Members’ Financial Interests.

I applied for this debate because I am concerned about Britain’s standing in a world that is changing more quickly than we appear to be responding. From trade and industrial policy to innovation and skills, we have just sticking-plaster policies and no long-term economic plan. There is no strategy for UK plc that shows the path to prosperity, and I hope this debate may trigger some answers from the Government on their plan to drive economic growth within the UK and through exports abroad.

The era of increasing globalisation that we have come to know over the past decades is coming to an end. We are now in an era of economic retrenchment, higher levels of state subsidy and new forms of partnership between the public and business, but how is the UK responding? Ministers are merely saying to competitor countries, “This is not how you’re supposed to play the game,” but they are not listening, and we are losing. There are several factors underpinning these changes: geopolitical competition between China and the United States; war in Europe and security tensions in Asia; the need for democratic nations to show their people that our system of government can deliver good jobs, good pay and prosperity; the net zero transition; and the technological arms race in both its military and civilian contexts.

Based on current data, our direction of travel as a country is not a good one. Only this morning, the Government announced that the UK fell from being the fifth largest exporter of goods and services in the world in 2020, to seventh in 2021. Our trade deficit has ballooned from £2.3 billion to £23.5 billion, meaning that we are exporting fewer goods and services, while being increasingly dependent on other countries for our own supplies. According to the International Monetary Fund only last week, the UK is set to have one of the worst economic growth projections of the seven most advanced economies. Even Russia, to our shame, is projected to experience better economic growth than we are.

Our drop in exports to the European Union, coupled with the Government’s deeply short-sighted decision to agree a trade deal that blocks the sale of most UK-based services to the EU, while allowing the EU to sell services to us, has been a structural blow to the UK economy. In that context, our high levels of national debt, which have increased year on year since the Conservatives came to power in 2010, have put us in a fiscally precarious position. The Government should be ashamed of their record on UK national debt. We all remember David Cameron and George Osborne telling us that the Conservatives would fix the roof while the sun was shining. But what do we have now, 13 years after those promises to the country? A national debt that is projected to be larger than the entire size of the UK economy. A national debt that has increased year on year—yes, in response to covid and the energy crisis, but it was also increasing year on year before those crises.

[Richard Fuller (North East Bedfordshire) (Con)]

It is a great pleasure to be part of this debate and to listen to the hon. Gentleman, and I hope he will not mind me picking him up on this point. He kindly acknowledged that the sizeable increase in UK debt is due to the response to covid, and I do not think he has concerns about the major schemes that comprised that. He also talks about the increase in debt that occurred in the intervening years. Will he accept that for each of those intervening years, the Labour party was calling for more expenditure and more debt?

[Darren Jones]

The hon. Gentleman and I, perhaps surprisingly, share something in common, in that we would like to get the national debt under control. He will recognise that his party was in government for each of those years from 2010 when debt increased, year after year. The Opposition can come forward with policy proposals, but he must take some responsibility for the fact that the Conservative party was in government, taking decisions that resulted in a significant amount of national debt before covid and the energy crisis, due to the mishandling of Brexit, the inadequate trade deal with the EU and to the failure of austerity economics, which cut our public services back to the bone without adequate investment to create opportunities for economic growth in the future.

One might have assumed that in that context, the latest form of Conservative Government would wish to do everything they can to underpin, support and incentivise growth in the UK economy. Their most whizzy recent announcement has been the UK’s entry to the comprehensive and progressive agreement for trans-Pacific partnership for trade in Asia—a trade arrangement that is estimated to grow the national wealth by only 0.08%. It is a trade arrangement with 11 countries, nine of which we already have a trade deal with, and one that will pose due political challenges to the UK as China seeks to join it too.

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[Darren Jones]

I thank the hon. Lady for giving that suggestion to those on the Treasury Bench, and perhaps the Minister can answer when she responds to the debate.

[Richard Fuller]

rose—

[Darren Jones]

I have two examples that are relevant to intervention of the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), but I will give way one more time, for old times’ sake.

[Richard Fuller]

It’s not that old-time! As the hon. Gentleman will realise, the Benches are not replete with Members for his debate, so I hope he will continue to be generous.

The hon. Gentleman has put his finger on an important issue, and this could be an informative debate on both sides. He has just mentioned one potential conflict between this country’s trade engagements and those of others, regarding our engagement with the European Union and with CPTPP, and different paces of change when dealing with net zero. As Chair of the Business, Energy and Industrial Strategy Committee, will he give the House a little more detail on his thoughts about what this country’s pace should be, and in particular his views on the carbon border tax?

[Darren Jones]

I will do so briefly so that I do not test the patience of the Chair too much, given the number of pages I have left to read before the end of my speech. My initial observations are that it is in the UK’s interest to be a global leader on the net zero transition, both because that is the right thing to do and because it is a significant industrial opportunity, and that we should be partnering with the European Union to do so through our trade deal. In my view—I have not taken evidence on this; it is just my view—that would generate a larger rate of return for the British economy and British people than some of the other opportunities that have been presented.

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[Darren Jones]

Once again, my hon. Friend is absolutely right. That is why the European Union has responded to what is happening in America, but what do we have here in the United Kingdom? I tried to be generous to the Government in a collegiate fashion, but the only thing I could find that allowed me to give the Government credit was the recent establishment of the Office for Investment, whose job it is to secure inward investment to the UK. But it has no budget.

As I understand it, when two American businesses looked at the UK as an investment destination, they did not know who to contact. Was it the Department for International Trade, the Department for Business, the Department for Transport, the Treasury, the regional mayor or the local council? The Germans, meanwhile, put together an inward investment package with significant incentives and the Americans presented a map with different options in different states, topped up with significant federal incentives. In the UK, we have an Office for Investment whose job it is to go around Whitehall, cap in hand, trying to put together an offer within existing budgets. The tragedy is that the reason those companies were looking at the UK in the first place was that we have great natural resources: huge potential for low-carbon fuel energy supplies, great industrial clusters, world-leading research and development, and great pools of highly skilled labour. But we just did not compete and we lost out on both investments.

Let me take another example, which we have already talked about: the semiconductor industry. The United States is securing multibillion dollar inward investments, as too are the Europeans. As my Committee concluded in its recent report, while we will never have end-to-end supply chains in the UK, we should be collaborating with our American and European allies to agree that the UK invests in the parts of the supply chain where we excel: chip design and advanced compound semi- conductors. Britain can play a crucial exporting role within a multinational supply chain. So when the Government take decisions to decline or unwind Chinese-linked investments, such as Newport Wafer Fab, they must follow through with finding new investment and new owners. Instead, we have a semiconductor strategy that is now even more delayed than it was already because, as it was reported, Ministers cannot decide who is going to announce it. Meanwhile, other countries are racing ahead of us.

It seems to me that we have Ministers stuck in the headlights of a changing world, convinced that the best thing to do is for the state to get out of the way and let the free market fix our problems, praying that someone, somewhere might find the sunlit uplands of post-Brexit Britain that Conservative Prime Minsters promised to deliver—while our competitors race ahead of us. The question, therefore, is what should we do about it? Beyond the obvious points of having a proper industrial policy, ideally a stable Government, a stable economy and a stable policy framework; beyond the obvious point that we continue to fail to highlight the importance and value of the service economy to our exports—we are the largest exporter of services in the world after the United States—and beyond the obvious point that we must improve our trade deal with the EU, what can we do that is new, global and in Britain’s interests?

We should be leading the debate about a new model of multilateral co-operation between democracies. We clearly already collaborate on defence matters, but what we define as critical supply chains or as critical national infrastructure, what we think resilient supply chains should look like to create economic security for our countries, and how we collaborate as allies and partners to show that democracies will continue to prevail over authoritarian regimes—those issues warrant a new partnership, a new model of multilateral working. It is in Britain’s interest to lead that debate and to play a central role in it.

Some will understandably say that there is a risk of decoupling the existing post-war institutional frameworks. My response is that this is already happening and that Britain can do little to stop it. That does not mean walking away from the UN, the World Trade Organisation or the G7—of course not. And it certainly does not mean Britain should play fast and loose in breach of agreed global rules. But it does mean that we must respond to lead and to influence what happens next.

If this Government had a real mission-led approach to the UK economy, we would see co-ordinated strategic action from No. 10, the Treasury, the Foreign Office, the Department for Business and Trade, the Department for Science, Innovation and Technology, and others. But we do not. We do not see that because the Prime Minister does not have an answer. He cannot tell us what our path to prosperity is, what he thinks our unique selling points as a country are, or how Britain will maintain its standing as one of the largest, most advanced economies on the planet.

I have had the good fortune, over the past few years, of being able to represent our Parliament in many countries. From Brussels to Washington, Sydney to Tokyo and elsewhere, I keep being asked, “Are you guys okay? What’s happening to the UK?” It is embarrassing and it must stop.

[Richard Fuller]

Absolute rubbish.

[Darren Jones]

It is a factual statement. The hon. Member is chuntering from a sedentary position, as I think we say in this House, but I can assure him and the House that on many occasions that is the exact conversation people have had with me.

I hope that the Minister, when she responds, will be able to inform the House, on behalf of the Prime Minister, how this latest round of Conservative Ministers are going to clear up the mess of all the former ones over the past 13 years. The Minister and I know that the opportunities for the UK are there to be taken; that the British people have within them the drive, energy and potential; that our islands and our seas give us the potential not just to lead the net zero transition at home, but to export it abroad too; and that our greatest minds, entrepreneurs and universities mean we can ride the wave of the technological revolution in the interests of the British economy and the British people. We can achieve all those things, but only if Britain has a Government with the leadership, the ideas and the energy to start delivering. I look forward to the Minister’s response.

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[Richard Fuller (North East Bedfordshire) (Con)]

It is a great pleasure to have listened to the contributions so far, not least the contribution just made by the hon. Member for Liverpool, Walton (Dan Carden). I echo his words about the opportunity to strengthen connections, particularly for our young people, between our country and countries in Latin and South America. The area is often overlooked by Government and it is not high on the list for teachers or in what is learned in schools. His calls on the issue are very welcome. On Monday, at the University of Cambridge, I had the opportunity to talk to a group of Argentinian politicians. From their country’s perspective, I know that is something they would welcome as well.

Madam Deputy Speaker, here is my point: it is an afternoon, we have plenty of time, it is an incredibly interesting and broad debate, and it will not have escaped your attention that the Government Benches are not crowded with participants. Therefore, I beg the indulgence of Opposition Members to make a number of points on a series of areas. [Interruption.] The Minister is asking that they be quality contributions, so I shall therefore make my speech even longer.

I will start by addressing some of the points made by the Chair of the Business, Energy and Industrial Strategy Committee, the hon. Member for Bristol North West (Darren Jones), who I think is one of the most talented Members of this Parliament. He and I do have some strong disagreements, sometimes on principle and sometimes on practice. Let me start with two words that encompass the fundamental disagreement we have: industrial strategy.

To the Chair of the Select Committee, industrial strategy is the elixir that somehow unlocks the growth in our economy that proves elusive to all others. Not only that, it is industrial strategy as conceived by the Labour party that somehow has the unique ability to generate growth that perhaps could not be accomplished in other ways. I have always found that intellectual position interesting. When I went to business school and we were given a chance to give three words to describe ourselves to other students, I decided to call myself “arrogant”, because actually at that age—I know it is hard to believe now—I was quite arrogant. But I would never have the arrogance to think that my unique perception of an industrial strategy was the right way to galvanise growth in this country. On that issue, the Chair of the Select Committee and I differ. I would like to hear what he has to say.

[Darren Jones]

The hon. Gentleman is generous in giving way, but as he has put words into my mouth on the record, I ought to correct him, if I may. From our Select Committee’s work on industrial policy and from my comments on that work, it should be clear that I am not somebody who believes that the state is where wealth is created or that the state is in the driving seat of a growing economy. However, when the private sector, which creates wealth, is driving down the road at speed and trying to win the race for workers, customers and shareholders, I recognise that somebody needs to build the public infrastructure for it to succeed if the road runs out.

That opportunity for the state to play an important role in partnership with business is what I refer to as industrial policy. Might I say that it is why so many businesses are talking to the Labour party right now? They are asking for such a partnership with the Government, as opposed to having a Government who stand out of the way and hope the free market will solve all the problems.

[Richard Fuller]

The hon. Gentleman reinforces my point. He is suggesting that if a company chooses to use its shareholders’ money to drive down a road that runs out, somehow taxpayers should pay for the extension of the road. The whole point of capitalist markets is that it is a business’s responsibility if it makes incorrect allocations of capital and its shareholders lose money. It is the job of business and business leadership to have the insight to understand how best to create value for shareholders in the long term.

Businesses are now coming to smart Labour Members—who are desperate to show that after years of hating business the Labour party now thinks prawn cocktails are a nice idea—and saying, “Can you spare us a few bob, mate? We’d like to support your party and we’ve got this really sexy thing we want to do, but frankly we don’t want to use our own capital because we know that the Labour party in government will be suckers enough to use taxpayers’ money to pay for it.”

[Andy McDonald]

I hope that the hon. Gentleman, as a former member of our Select Committee, will take this point in good heart. Just last week, we visited HYBRIT in Sweden, which has made some incredible advances in creating sponge iron and is on the road to creating green steel. One of its major partners in that enterprise, without which it would not have been possible, is the state-owned utility company Vattenfall. I ask the hon. Gentleman to consider that point.

This country’s version is to plough hundreds of millions of pounds of taxpayers’ money into the South Tees Development Corporation, transferring those assets to private individuals in return for options for land—for buttons—leaving the state on the hook for the environmental remediations. There could be no bigger contrast with more intelligent responses to industrial challenges. I trust that the hon. Gentleman will take that point in good heart and look at the differences in practice between the United Kingdom and Sweden.

[Richard Fuller]

Actually, the hon. Gentleman is exactly right. He and I share a concern for the defence of taxpayers’ money: if it is going to be spent, it should be spent wisely. If a strategy is not working, that is fine, but the point that I raised at the start of my speech was that we hold different points of view on whether industrial strategy per se will be an answer to the problems. My general position is that leaving the market and businesses to themselves and allowing the free allocation of capital in open and competitive markets has proven time, time and time again to be the best way to achieve progress, with better living standards for households in this country and around the free world. That is why the developed nations are the developed nations: because we have supported that approach.

[Wera Hobhouse (Bath) (LD)]

rose—

[Richard Fuller]

I know you are being very lenient today, Madam Deputy Speaker, so I give way.

[Wera Hobhouse]

Nobody—certainly no Liberal Democrat —would pretend that wealth is created by the state. It is created by businesses, but what business leaders have said time and again is that the Government need to set a direction. Is it not true that this Government are currently giving no purposeful direction to business, particularly when it comes to the green economy and the transition to net zero?

[Richard Fuller]

The hon. Lady is right that businesses like certainty—that is absolutely true. Setting a direction, inasmuch as it creates certainty, is useful; more than that, it is a strong part of the foundations. If we go on to talk about climate change in this debate, it may be that questions about national and international strategies and about what our response should be to issues among British businesses, businesses in other countries and multinationals will drive us apart again.

[Darren Jones]

May I invite the hon. Gentleman to reflect, for the benefit of the House, on his recent involvement in the Conservative report on the reform of economic regulators? I was afforded the courtesy of being shown the embargoed report, but I am not sure whether the embargo has now been lifted and I can talk about the report directly.

[Richard Fuller]

indicated assent.

[Darren Jones]

Oh, I can. Very good. The report recognises—I invite the hon. Gentleman to confirm or contest this point—that industrial policy is not just about money, but about policy direction, about regulation by economic regulators and about creating the conditions for business to prosper, for entrepreneurs to create businesses and for innovators to innovate. Industrial policy, as I refer to it, is not about somebody in the Treasury writing a cheque for businesses that should get their money from elsewhere, as the hon. Gentleman suggests; it is about the broader competitive market that needs to be created. Of course the Government and Parliament have a role in creating optimal circumstances for businesses to succeed. Does the hon. Gentleman recognise that?

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[Richard Fuller]

I do. Again, the hon. Gentleman is showing that there are a number of areas in which we can find agreement on the details.

Let me focus on the point about regulatory policy, because it is an important one. A group of Conservative MPs have put together a report calling on the Government to look at how we deal with the stock of regulation, the process of making regulation and my particular area of interest, the accountability of regulators for performance. As Chair of the Select Committee, the hon. Gentleman will be well aware of our interactions with our regulators. Effective regulation, by which I mean regulation that is regularly, systematically and rationally appraised, plays a role in the competitive advantage of the United Kingdom. It is an area that we have locked away, saying, “It’s not nationalisation, it’s not the free market—it’ll do okay.” Those days need to come to an end, because too much of our economic output happens in sectors that are subject to regulators whose performance directly affects the ability of our country to compete.

[Darren Jones]

indicated assent.

[Richard Fuller]

The Chair of the Select Committee nods. It is nice to have an area of agreement.

Let me move on to the second area about which the hon. Gentleman spoke: the Inflation Reduction Act and the associated EU measures. As he well knows, that Act represents a $370 billion commitment of US federal funds, or their equivalent in tax credits. It followed the Infrastructure Investment and Jobs Act of 2021, which meant $1 trillion of investment, not only in infrastructure but in green energy. By purchasing power parity, the US economy is approximately six times the size of the UK’s. An equivalent response, which is what the hon. Gentleman says we need, would essentially require writing a cheque for £40 billion, £50 billion or £60 billion. If industrial strategy is not about expenditure, what are we supposed to be doing to compete, other than putting in that amount of money? There seems to be a part missing.

The hon. Gentleman also spoke about inward investment and said that we should be sharpening up our act. He is absolutely right. In countries such as Germany, which he mentioned, the package on offer to those who are interested in investing is not just a financial package, but a coherent one. When someone looks into making an inward investment, there are people to sort out all the Government intricacies for them at a single point on day one. That is how the UK did it when Margaret Thatcher was leading efforts with Lord Young, but over the intervening years we have made things a little too complicated and we have not found our way. I would be interested to hear the Minister address that point; it may not be directly in her remit, but it would be interesting for all hon. Members present to know the Government’s view. What are the Government doing to make sure people know that the UK can take a foreign company from thinking it wants to invest in this country to actually getting going and investing in this country, whether that involves, say, bricks and mortar or servers? What can we do to make that easier?

I know this sounds as though I am picking the hon. Gentleman’s speech apart. I am not picking it apart but asking questions about it, and I trust he is happy with that. He talked about economic security and collaboration. I think the short-term version of that is called friendshoring, which essentially means saying, “Let us conduct a geopolitical review of important strategic supply chains, and then let us be smart and make sure we are doing business with countries that are our allies.” That is a massive change, because there is no clarity about what the extent of friendshoring areas should be. Does this apply only to strategic industries determined by the United Kingdom, or is it imposed on the United Kingdom because other friends think we should be doing business with someone else? Are we prepared as a country to outsource the way in which British companies do business to the Government of the United States?

[Andy McDonald]

The hon. Gentleman is making an interesting point, but does he not agree that when it comes to critical areas of our economy such as energy security and the opportunities presented by carbon capture, utilisation and storage, it makes consummate sense to have strong relationships with those neighbouring countries with which we are aligned? As we face the spectre of Putin, who has caused so much damage to our energy security of late, would it not be infinitely more sensible to look to the new technologies and look to those neighbours to work together in that domain for our mutual economic benefit? Surely that makes sense.

[Richard Fuller]

There are two parts to what the hon. Gentleman has said. Is it sensible for us to ensure that our national security is itself sensible, along with some of the elements that are important for national security? I do not think there are too many concerns about that; the issue is, should we be focusing our policy on the issue of only going with our allies, or at least making that the primary consideration?

I think this will be a problem if it becomes part of the international discourse. The Chair of the Select Committee seemed to be talking about unbundling the existing international organisation, paying it respect but recognising the “reality” of what is happening, but then looking at ways in which we can make side arrangements with our friends. I fear that that will mean pooling the understanding of what is a friend and what is not among others, which is a substantial change in the way in which this country seeks to run its economy. My view is that the United Kingdom should be an open society, an open trading economy, and that we should lean primarily towards openness.

[Andy McDonald]

With Russia? With China?

[Richard Fuller]

Obviously not with Russia. We have already imposed substantial trade sanctions on Russia, and I think there is consensus in the House about what our response should be when one country invades another. However, to conflate Russia with China, which has not, as far as I know, invaded another country, is to move into a different area. My point is philosophical: the United Kingdom’s history of success has been as an open trading nation, and the current push, in this country and others, for us to engage in friendshoring strikes me as a significant change from the way in which, historically, we have created wealth.

[Darren Jones]

The point I made in my opening remarks was that we should recognise, with some humility, that Britain can have only so much influence on these global trends. The hon. Gentleman is inviting us to conclude that were we to do more deals with our friends and allies, as I have suggested, those arrangements would be dictated by other countries; I think he was alluding to the United States of America. My response to that is that Britain should therefore lead the debate, and be involved in how this is developing across the world. If we just sit back and wait to see what happens, we will end up having no influence over the way these things are being designed, which, by definition, will be dictated by others who are leading the global debate. I am suggesting that we, as a smaller country, have global clout, and should be convening and leading that debate.

[Richard Fuller]

That is a brilliant point well made, and characteristic of the hon. Gentleman’s understanding and grasp of these issues. He has put his finger on it. I, for my part, am merely raising questions and concerns about the perils of doing something that others may see as somehow buttressing our national security and doing what is right by us. This is not a road we can go down without trade-offs, and there will be some significant trade-offs if we take that road. However, I think the suggestion that we should be an active participant while those discussions are going on is very sensible.

Let me return to the question of money, and the current issues involving the so-called Inflation Reduction Act and the EU. A significant proportion of the funds spent by other countries are being spent on what I would term competitive discovery, which means looking at possible solutions when we do not yet have the solution to a problem. I would place that at the higher end of the risk investment spectrum, and would therefore approach it with caution. It is like dotcom for the green era—not in all sectors, and not all the money is being used for that purpose, but a considerable amount of what we need to do if we are to achieve net zero will require money to be spent on the discovery of solutions.

I am leery of the idea that British taxpayers’ money should be stacked up in competition with taxpayers’ money from EU member states and from the United States. Let me use that dotcom analogy again. When there is a big rush of substantial amounts of funds into discovery on a global scale, yes, there are winners, but an enormous amount of capital is wasted on losers. We have heard, in other debates, Members pushing us to do what President Biden is doing, or saying that we should be doing the same as the EU. Politicians need to remember that that means taking taxpayers’ money which could be spent on education or healthcare, and putting it in the casino of winners and losers in the green tech revolution. We need to be very cautious about spending money in that way.

[Chris Law (Dundee West) (SNP)]

I am listening to the hon. Gentleman’s speech with deep interest. Does he therefore think it would be more reasonable for the UK Government to end its fossil fuel subsidies—we know where that is going, and we have been subsidising fossil fuels for generations—and put the money more directly into green inward investment?

[Richard Fuller]

The hon. Gentleman tempts me, but let me answer his question in this way. The 2017 Labour party manifesto was not a hugely sensible document, but a second document was put together by the then shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell), in which he enumerated all the tax breaks that were given to different sectors of the economy, which amounted to an enormous sum. As one who can, I think, claim to be a low-tax Conservative, I suggest that those running a more efficient economy would get rid of almost all of them. They would say to those in, for instance, the carbon fuels sector, “You are on your own now. If you do not have enough money, go to the market and raise the money you need from your own shareholders or from other investors to grow your business.” We have had conversations about the level of debt—the right hon. Member for Hayes and Harlington is now present, so he can correct me if I am wrong. I read his document in 2017, and I thought it was an excellent analysis. One point that the Labour party made at the time of that election, about the need to look at tax breaks for large corporations and sections of the economy as a method of public spending, was spot on. We are not vigilant enough in that regard. My own free-market view is that the fairer the market, the lower the subsidy.

[John McDonnell (Hayes and Harlington) (Lab)]

I apologise, Madam Deputy Speaker. I was not going to engage in the debate, but I was passing and heard a reference to me—

[John McDonnell]

As generous and wise as ever, Madam Deputy Speaker.

To reinforce what the hon. Member for North East Bedfordshire (Richard Fuller) said, we did that piece of work because we wanted to review every tax relief. In opposition, that is impossible to do, but we would have done it in government. The reason was that we were discovering tax reliefs that had been introduced decades earlier that the Treasury had never reviewed to see whether the original purpose had been achieved or whether they should be amended. Example after example was found, and it was clear that the tax relief system was not working effectively or as it was originally planned.

[Richard Fuller]

I am grateful to the right hon. Gentleman for taking part in the debate. I do not think I agreed with anything else in the Labour party’s 2017 manifesto, but the point that he has just made is a point for the ages for whoever is in the Treasury.

In addition to my concern about taxpayers’ money, behind the big funding race between the EU and the US to put amounts of money at risk in a casino of green discovery is an open question about the trajectory of unit costs for the materials that will be required by those sectors that will assist us to achieve net zero. When others are rushing to do something, it is a natural human urge to rush to do it too. We can all remember the shortages of toilet paper at the start of covid, which was a shortage for no apparent reason. Because everyone else was buying loo paper, we all thought we should buy it. As we know, that created a surge in unit cost, which abated and—although I have not checked recently—the cost is now back down to a normal market price. As goes toilet paper—perhaps I should not use that phrase—so goes the unit cost for other items. A significant cost will be experienced by early adopters. My question is whether we would be better off participating in that surge in unit costs in an era of technological discovery, or keeping our money in our pocket until the unit costs come down once the successful discoveries have been made.

We should remember that there will always be opportunities for economic gain and financial success, even if the initial discoveries and the bulk of investment are elsewhere. There will always be international flows of trade. For example, in the 1940s and 1950s, most of the motor industry was in the United States, but in the 1970s the UK benefited because it needed to reshore to the UK. That will be the same in other sectors. Look at value-added: iPhones are made in developing countries, historically mostly in China, but most of the value added is in Apple’s design, and the UK has advantages in that area. We can be thoughtful about such areas, but I wanted to put on the record some questions for the Chair of the Select Committee who introduced this welcome debate.

I know that I have tested everyone’s patience with my opening remarks, so I will address another couple of points before allowing time for others. This issue tilts to the Indo-Pacific region, both through the trade arrangements and the infrastructure. The global review that the Government have done is welcome. Much like the hon. Member for Liverpool, Walton, who talked about the issues in Latin America, before getting involved in politics I spent a lot of time in the Philippines, Korea and Australia. It was clear that in those areas of the world, there is not only great opportunity for the United Kingdom, but a great recognition of the talents that we have and a great need for the various skills that we can provide in economics, defence and other areas.

When I hear politicians pooh-pooh the impact of CPTPP as a small percentage of GDP, I worry that they are missing the deeper point that it is a bigger connection. It is part of a globalisation of what the United Kingdom does. It is a recognition not that the UK is a big global superpower, but that it is seen by people around the world as having its place and having things to offer. We should look at this trade agreement as just the start of us pushing further into that part of the world in all the ways that we can.

I yearn for the day when we can do a similar deal across Africa. Trading with countries in Africa and opening up our markets to goods and services from Nigeria, Ghana, South Africa, Kenya and other growing economies is surely not only in our economic interests but in the interests of humanity. The greatest benefit to humanity in economic terms over my lifetime was made by Nixon’s visit to China and its redirection from Russia towards the west, and the consequent movement of hundreds of millions of people in China and surrounding areas into the global trading system. It has been a great sadness to me that the countries in the continent of Africa have not been part of that. For this generation of politicians over the next 10 or 20 years, I hope that we can look to play our small part in achieving that.

[Wera Hobhouse]

As we have a little time and we are debating seriously, does the hon. Gentleman not recognise that cutting ourselves off from the biggest trading partner in the world directly on our shore was the complete opposite of his vision of a global Britain? Of course the European Union also seeks to be open to other trading blocs, other countries and other big nations, and Britain is losing out by having left it.

[Richard Fuller]

The hon. Lady has made her point clearly. She asks if I agree, and the straight answer is, “Absolutely not.” Ahead of the referendum in 2016, one of the most important reasons I felt we should look for a different arrangement from our EU colleagues was that I wanted us to focus on trade and economic interests with the laser-like focus of the UK. People can differ on this, but for me being part of the EU was a compromise too far in the pooling of those interests in an ever more competitive world. That is one of the reasons I felt it was right for us to leave.

Beyond that, we just need to look at the subsequent reactions—and I am critical of the UK in some ways, but I am certainly critical of the EU—in the artificial period that we have now thankfully mostly got past, when everyone was trying to be difficult with everyone else. We are all pleased that the Prime Minister has not only achieved in the Windsor framework the resolution, in large part, of many of the concerns in that frictionful period, but indicated his desire that the EU and the UK should do precisely what the hon. Lady seeks—to work together where we can. In our current position, we do that primarily because we are looking to promote our own focused interests.

It has been a pleasure to contribute to this debate. I have been very complimentary about the Chair of the Select Committee, despite the fact that he is a Labour Member. By leading the debate as he has, he has demonstrated that we can agree in substantial areas even if fundamentally our philosophies start from a different place.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 29th March 2023 Commons Chamber

[The Deputy Prime Minister]

The hon. Lady is absolutely right. I pay tribute to Sarah’s trailblazing record. A few years ago, I had the opportunity to watch the England female rugby team, and I was blown away. We look forward to Sarah and England going on to bigger and better things.

[Richard Fuller (North East Bedfordshire) (Con)]

Q15. Will the Government require that East West Rail publishes a full business case before the allocation of any more taxpayers’ money to the project?

[The Deputy Prime Minister]

This is a hugely important project with all sorts of opportunities, such as jobs and education, and with a projected increase in economic output of over £100 billion by 2050. My hon. Friend is right that the project needs transparency and scrutiny, and the first stage is already under construction on time and under budget. I am told that the subsequent stages will go through full and transparent scrutiny as part of the planning process.

Ministerial Appointments: Vetting and Managing Conflicts of Interest

Richard Fuller Excerpts

Monday 23rd January 2023 Commons Chamber

[Jeremy Quin]

We follow a proper process under the ministerial code. Interests are required to be declared. They are required to be shared through the ministerial code process and discussed with permanent secretaries. I am absolutely confident that the usual process will have been followed in the appointment process by this Prime Minister for my right hon. Friend the Member for Stratford- on-Avon (Nadhim Zahawi). If there are issues to be raised in respect of historic activities, as was suggested by the weekend’s press, that is a matter for the independent adviser to look at. The summary of his findings will be published in due course. Integrity and accountability are critical, as is professionalism, and the Government will wait and hear the facts before taking decisions based on those facts. The right hon. Lady would do well to do the same.

[Richard Fuller (North East Bedfordshire) (Con)]

It is a great shame that the processes of the propriety and ethics team of our civil service are being called into disrepute by the comments of the right hon. Member for Ashton-under-Lyne (Angela Rayner). We have to accept in public life that there are times when you may be asked to serve in government. When you go through that process, you are required, rightly, to disclose absolutely everything that might cause conflict with you being a Minister of the Crown. Does my right hon. Friend agree that that process can survive only when there is both confidentiality about disclosures and tolerance on all sides while that process is completed?

[Jeremy Quin]

I thank my hon. Friend for what he said. He is absolutely right. For people being called into government, there is a proper process and there is a requirement for full disclosure. For that process to continue to be meaningful and to work for decades into the future, we need to retain confidentiality. That has to be part of it and the right way forward when an issue has been raised is for the independent adviser to look into it, as he is doing.

Oral Answers to Questions

Richard Fuller Excerpts

Wednesday 18th January 2023 Commons Chamber

[The Prime Minister]

This Government are investing record sums in transport infrastructure across the country but especially in the north and midlands, with a £96 billion integrated rail plan that will improve journey times east-west across the north and connectivity across the east midlands. It is a record we are proud of, and now we will get on with delivering it.

[Richard Fuller (North East Bedfordshire) (Con)]

There has been a 40% increase in patients on roll with GPs in Biggleswade in the past 15 years, but last week, proposals for a Biggleswade health hub were not progressed, despite financial support from the Conservative-controlled Central Bedfordshire Council. Can my right hon. Friend advise me of the status of our manifesto commitment to “infrastructure first”, and will he and his Ministers work with me to bring together the various parts of the NHS to bring the Biggleswade health hub back on track?

[The Prime Minister]

I would be happy to organise a meeting for my hon. Friend to discuss how to progress his project. He is right about the importance of primary care. There is more investment going in, but we want to ensure it works for his constituency, so I look forward to arranging a meeting with him and the relevant Minister.

Illegal Immigration

Richard Fuller Excerpts

Tuesday 13th December 2022 Commons Chamber

[The Prime Minister]

My hon. Friend is absolutely right. We want not only to process people swiftly, but to have the ability either to integrate them in the community, where required—we have done that brilliantly through other schemes—or to remove them if they should no longer be here. That is why one strand of this work is about strengthening and tightening our returns agreements with other countries, which should be a key part of our diplomacy. We must have the ability to return people to safe countries, which is something we will work on next year.

[Richard Fuller (North East Bedfordshire) (Con)]

I welcome the Prime Minister’s comprehensive statement, including his willingness to reform assessment processes, but may I ask him about accountability? We see many Government processes to improve and achieve a policy outcome, but the public do not see those outcomes achieved. They are worried that officials and agencies are not held properly to account for achieving those objectives. What are his thoughts on achieving the policy outcomes he has outlined today?

[The Prime Minister]

I am confident because, in the Home Secretary and the Immigration Minister, we have a crack team. I know they will work tirelessly with their team to drive through the reforms announced today. My hon. Friend the Member for North East Bedfordshire (Richard Fuller) is right to hold us to account for that. Transparent metrics on processing, for example, are already published quarterly. People want to see flights returning people to Albania and elsewhere, and people coming out of hotels. That is what we want to deliver next year.

COP27

Richard Fuller Excerpts

Wednesday 9th November 2022 Commons Chamber

[The Prime Minister]

On loss and damage, I have already made the point that we established the Glasgow dialogue to see how best to take forward those discussions. I will not pre-empt the discussions happening at COP, but that is not the same as reparations—I think the hon. Lady understands that—which is not what is on the table. That is clear in the language that is being debated at COP.

[Richard Fuller (North East Bedfordshire) (Con)]

At COP26, the Prime Minister was successful in mobilising hundreds of billions in international private capital to support the challenge of net zero, which seems a much better deal than Labour’s plan, which would place a huge burden on British taxpayers. What further steps will my right hon. Friend take to consolidate London’s leadership as a centre for green finance?

[The Prime Minister]

My hon. Friend knows this well. Indeed, he was responsible for the retail green sovereign bond that we issued here—we were the first country in the world to do so—and he deserves credit for that. I am pleased that for, I think, the second or third year in a row, London has been named the world’s leading place for green finance. We are taking forward a range of initiatives around disclosures to make that even more of an advantage for us, including more carbon trading. I look forward to getting his advice on how we can make that aspiration a reality.

Independent Adviser on Ministers’ Interests Resignation

Richard Fuller Excerpts

Thursday 16th June 2022 Commons Chamber

[Michael Ellis]

The hon. Gentleman may well be disappointed; he will find that looking for scandal under every stone is disappointing.

[Richard Fuller (North East Bedfordshire) (Con)]

May I make a point to the Minister and to the House? To do effective work, an ethics adviser is required to be above day-to-day political feuds and not the focus of them. In the last few weeks and months, however, the position of the ethics adviser to the Prime Minister has been at the centre of political feuds on both sides of the House—not confined to the Opposition or to the Conservatives. What actions will the Minister take to ensure that the new appointee is protected from being the target of political attacks from whichever side?

[Michael Ellis]

My hon. Friend makes a good point, which I alluded to before. We must be careful to ensure that future independent arrangements are made so that individuals or entities are not put under political pressure to either do something or be accused of being some sort of patsy. The right thing to do is what is important.

Sue Gray Report

Richard Fuller Excerpts

Monday 31st January 2022 Commons Chamber

[The Prime Minister]

I have taken full responsibility throughout the pandemic.

[Richard Fuller (North East Bedfordshire) (Con)]

As with the report on Owen Paterson, I felt it was important to support the process and read the report, because it is important to separate fact from allegation, and to know what the report actually says, rather than what I would wish it to say. Those are two lessons that the Leader of the Opposition needs to learn. I promised my constituents that I would ask the Prime Minister to say that he would support the recommendations in the report, and there are four. One is that

“every Government Department has a clear and robust policy in place covering the consumption of alcohol in the workplace.”

Another is that access to the garden,

“including for meetings, should be by invitation only and in a controlled environment.”

A third is:

“There should be easier ways for staff to raise such concerns”.

That is basically about whistleblowing. Another is:

“Too much responsibility and expectation is placed on the senior official whose principal function is the direct support of the Prime Minister.”

Those are the facts and the findings of the report. Will the Prime Minister accept them in full?

[The Prime Minister]

Yes, I do. As I have said to the House earlier, I accept the findings of the report in full—the general findings—and we are immediately taking steps to implement the changes.