Subsidy Control Bill

Rosie Winterton Excerpts

3rd reading
Monday 13th December 2021 Commons Chamber

[Kirsty Blackman (Aberdeen North) (SNP)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

New clause 2—Annual report on climate change impacts—

‘(1) The Secretary of State must once every 12 months lay a report before Parliament setting out the impact of subsidies granted in the preceding 12 months on the environment and climate change.

(2) Any report under subsection (1) must include an assessment of the impact of subsidies granted in the preceding 12 months on the UK’s ability to achieve net-zero emissions by 2050.

(3) The first report must be laid before Parliament within 12 months of this Act being passed.’

This new clause would require the Secretary of State to lay an annual report before parliament detailing the climate change impacts of subsidies granted that year.

New clause 3—Post-award investigations—

‘(1) The CMA may conduct an investigation in relation to a subsidy that has been granted or a subsidy scheme that has been made.

(2) A decision under subsection (1) may be made in relation to any subsidy or subsidy scheme in respect of which the CMA considers—

(a) that there has or may have been a failure to comply with the requirements of Chapters 1 and 2 of Part 2, or

(b) that there has or may have been a failure to comply with the transparency obligations set out in Chapter 3 of Part 2.

(3) Where the CMA makes a decision to investigate a subsidy or scheme under subsection (1), it must direct the public authority to provide it with—

(a) any assessment carried out by the public authority as to whether the financial assistance fell within the meaning of “subsidy” or “subsidy scheme” for the purposes of this Act, and the reasons for that conclusion,

(b) any assessment carried out by the public authority as to whether the financial assistance if assessed to constitute a subsidy or subsidy scheme would comply with the requirements of Chapter 1 and 2 of Part 2 and the reasons for that conclusion,

(c) any evidence relevant to those assessments,

(d) in a case where such assessments were not provided, the reasons for the assessments not being provided,

(e) any information that the public authority failed to enter in the subsidy database in accordance with Chapter 3 of Part 2, and

(f) such other information as is specified in regulations under section 60(8)(a).

(4) Where the CMA decides to conduct an investigation under subsection (1), the direction given under subsection (3) must be made before the end of 20 working days beginning with the day on which the subsidy is given or the scheme is made.

(5) The CMA must send a copy of the direction given under subsection (3) to the public authority and the Secretary of State.

(6) The public authority must provide to the CMA the information required under subsection (3) before the end of the information period as defined in section 60(7).’

This new clause provides the CMA with the power to conduct a post-award investigation where the public authority has or may have failed to comply with its requirements.

Amendment 10, in clause 10, page 6, line 31, leave out paragraph (a) and insert—

‘(a) is made by—

(i) a Minister of the Crown,

(ii) the Welsh Ministers,

(iii) the Scottish Ministers, or

(iv) a Northern Ireland department; and’.

This amendment allows devolved administrations to make streamlined subsidy schemes.

Amendment 18, page 6, line 33, at end insert—

‘(4A) A streamlined subsidy scheme may be made, in particular, to support areas of relative economic deprivation.’

This amendment would allow for streamlined subsidy schemes to be made for the purposes of supporting areas of deprivation.

Amendment 19, in clause 11, page 7, line 9, at end insert—

‘(4) Before making regulations under this section, the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland.

(5) If consent to the making of the regulations is not given by any of those authorities within the period of one month beginning with the day on which it is sought from that authority, the Secretary of State may make the regulations without consent.

(6) If regulations are made in reliance on subsection (5), the Secretary of State must make a statement to the House of Commons explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.’

This amendment would require the Secretary of State to seek the consent of the Devolved Administrations before making regulations under this section. Where such consent is not given within one month, the Secretary of State may make the regulations without that consent, but must make a statement to the House of Commons explaining their decision.

Amendment 20, in clause 32, page 17, line 10, at end insert—

‘(c) the subsidy database is subject to routine audit to verify the accuracy and completeness of entries.’

This amendment requires the Secretary of State to ensure that the database is subject to routine audit.

Amendment 1, in clause 33, page 17, line 21, leave out “£500,000” and insert “£500”.

This amendment would reduce the threshold for entering subsidies into the subsidy database from £500,000 to £500.

Amendment 2, page 17, line 24, leave out “one year” and insert “one month”.

This amendment would require subsidies or schemes to be entered in the database within one month of being made, rather than one year, if given in the form of a tax measure.

Amendment 13, page 17, line 24, leave out paragraph (a) and insert—

‘(a) if given in the form of a tax measure, an entry with a provisional tax deduction value must be entered within one month, and a final value entered within one month of the date of the tax declaration, or’.

This ensures that tax measure subsidies are entered in the subsidy database within one month.

Amendment 3, page 17, line 26, leave out “six months” and insert “one month”.

This amendment would require subsidies or schemes to be entered in the database within one month of being made, rather than six months, if given in any form other than a tax measure.

Amendment 4, page 17, line 33, leave out “one year” and insert “one month”.

See explanatory statement for Amendment 2.

Amendment 5, page 17, line 35, leave out “six months” and insert “one month”.

See explanatory statement for Amendment 3.

Amendment 6, in clause 34, page 18, line 27, at end insert—

“(j) the date the subsidy or scheme was entered onto the database.”

This amendment would require the date a subsidy or scheme was entered onto the database to be included in the information public authorities are required to enter into the database.

Amendment 14, in clause 36, page 19, line 17, after “requirements” insert

“with the exception of duties under section 33,”.

This amendment requires that subsidies under the minimal financial assistance threshold are entered in the subsidy control database.

Amendment 7, page 20, line 4, at end insert—

‘(7) In this section, the reference to the subsidy control requirements does not include the requirements as to transparency in Chapter 3 of Part 2.’

This amendment requires that “minimal financial assistance” subsidies are not exempt from the database transparency requirements, while remaining exempt from other subsidy control requirements.

Amendment 21, in clause 41, page 23, line 15, leave out “£14,500,000” and insert “£500”.

This amendment would make section 33 applicable to SPEI subsidies worth more than £500.

Amendment 22, page 23, line 16, leave out subsection (b).

This amendment would make section 33 applicable to SPEI subsidies worth more than £500.

Amendment 23, in clause 55, page 30, line 40, after “State” insert

‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.

This amendment extends the call-in powers under this section to the Devolved Administrations.

Amendment 24, page 31, line 2, after “State” insert

‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.

This amendment relates to Amendment 23.

Amendment 25, page 31, line 7, after “State” insert

‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.

This amendment relates to Amendment 23.

Amendment 9, in clause 66, page 37, line 39, leave out paragraphs (a), (b) and (c) and insert—

‘(a) all subsidies and subsidy schemes granted in the past 12 months, and

(b) an assessment of the extent to which they satisfy the subsidy control principles and the energy and environment principles.

(2) Any report made under this section must be formally laid before parliament by the Secretary of State.

(3) The Secretary of State must make an oral statement to the House of Commons when any report under this section is laid.’

This amendment ensures that the annual report prepared by the CMA includes all subsidies along with its assessment of the extent to which they fulfil the 7 principles set out in the Bill. The report also places a requirement for the Secretary of State to report to Parliament when a report is laid.

Amendment 26, in clause 68, page 39, line 1, at end insert—

‘(3A) The Chair of the CMA Board may appoint up to three non-executive members to the Subsidy Advice Unit established under subsection (1) in order to ensure that the Unit includes at least one person with relevant experience in relation to each of Wales, Scotland and Northern Ireland.’

This amendment would allow the CMA Chair to appoint up to three non-executive members to ensure that the Unit includes at least one person with experience in relation to each of Wales, Scotland and Northern Ireland.

Amendment 8, in clause 70, page 39, line 35, leave out subsection (2).

This amendment intends to allow individual subsidies given under a subsidy scheme to be reviewed, without the requirement for the broader subsidy scheme to be reviewed too.

Amendment 12, page 40, line 16, at end insert—

‘(c) the Welsh Ministers,

(d) the Scottish Ministers, or

(e) a Northern Ireland department;’.

This amendment includes the devolved administrations in the list of those who can apply to the Competition Appeal Tribunal for a review of a subsidy decision.

Amendment 27, in clause 79, page 46, line 3, at end insert—

‘(5A) Before issuing guidance under this section, the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland.

(5B) If consent to the making of the regulations is not given by any of those authorities within the period of one month beginning with the day on which it is sought from that authority, the Secretary of State may make the regulations without that consent.

(5C) If regulations are made in reliance on subsection (5B), the Secretary of State must publish a statement explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.’

This amendment would require the Secretary of State to gain the consent of the Devolved Administrations before issuing guidance under Clause 79.

Amendment 15, in schedule 1, page 51, line 8, after “concerns” insert

‘and areas of relative economic deprivation’.

This amendment includes areas of relative economic deprivation as an example of the equity rationales that subsidies should address.

Amendment 16, page 52, line 6, at end insert—

‘(c) consistency with the United Kingdom achieving its net-zero commitments established under the Climate Change Act 2008.’

This amendment adds consistency with the UK’s net-zero commitments as a particular consideration for public authorities before deciding whether to give a subsidy.

Amendment 11, page 52, line 6, at end insert—

‘Net Zero

H Subsidies should not normally encourage behaviour which will have a negative effect on the achievement of the UK’s net-zero commitments.’

This amendment adds a subsidy control principle relating to the UK’s net zero commitments.

Amendment 17, in schedule 2, page 52, line 15, at end insert—

‘(c) delivering the UK’s net-zero commitments established under the Climate Change Act 2008.’

This amendment would ensure that subsidies related to energy and the environment incentivise the beneficiary to help deliver the UK’s net-zero commitments.

[Kirsty Blackman]

Thank you for calling me to speak in this important debate, Madam Deputy Speaker. It is a delight to be present in this incubation Chamber, where viruses from all around these islands—every corner of them—can come to mix freely, so that we can return this toxic cocktail to our constituents, constituencies and families. I am delighted to be able to be physically present at this time.

I will speak briefly to new clause 1, which is in my name and those of my colleagues, as well as the other amendments that stand in my name. My hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) will fill in the rest of the details and explain more about our rationale for the new clause.

The logic behind new clause 1 is that agricultural subsidies do not fit neatly into subsidy control regimes. That has been recognised by the World Trade Organisation, which is the reason for its agreement on agriculture; it has been recognised by the European Union, which is the reason for the common agricultural policy; indeed, it has been recognised across the world. We, and the Scottish Government, still have no idea why the UK Government decided to go against the flow and include agricultural subsidies in the Bill, rather than providing a separate arrangement for them.

The new clause simply removes agriculture from the consideration. It does not mean that we should not have a control regime of some sort for agriculture, and it does not mean that we should not have rules relating to agriculture. It means that agriculture does not fit neatly here, and should not form part of the main subsidy control regime in the Bill.

Amendment 10 relates to streamlined subsidy schemes. The change for which we are asking would allow devolved Administrations to make such schemes. Given that those Administrations have devolved competences by law, it makes no sense that the schemes can only be made by the Secretary of State in the UK Government. Obviously we would like Scottish independence, but in the absence of a vote on that, we are not asking for devolved Administrations to be able to overstep their devolved competences. We are merely asking for parity—for the ability of devolved Administrations to create streamlined subsidy schemes. They would still only be able to do that within their areas of devolved competence, and they would still only be able to do it within their limited financial envelopes. We are not asking for anything strange or unusual; we are not seeking some sort of power grab; it is simply to do with parity.