United Kingdom Internal Market Bill Debate

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Department: Cabinet Office
Wednesday 16th September 2020

(4 years, 2 months ago)

Commons Chamber
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Colum Eastwood Portrait Colum Eastwood
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The hon. Gentleman is absolutely right. The consensus across Congress is behind the Good Friday agreement. They have been our friends for many a decade. They have supported us through all the difficult times, and they are supporting us today. They are saying that there will not be a trade deal between the United States and this country if we do any damage to the protocol or the Good Friday agreement. That is what they have said, and people should listen.

Sammy Wilson Portrait Sammy Wilson (East Antrim) (DUP)
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I am amazed at the hon. Gentleman’s comments. He will know that our biggest trading partner outside GB is the United States of America, so any trade deal with America is bound to have a beneficial impact on the people of Northern Ireland and the economy of Northern Ireland. Is he telling us that his party will actively campaign against a trade deal with America that would benefit his constituents, my constituents and the Northern Ireland economy?

Colum Eastwood Portrait Colum Eastwood
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We want a trade deal. We want to be able to trade right around the world, but the warning is clear: if people mess about with the Good Friday agreement and all our political progress, there will be no trade deal. The people who proposed and campaigned for Brexit and who do not understand that we cannot square all these circles need to wake up. There will not be a trade deal if they continue on the track that they are on. There is still time to go backwards and realise that our peace process, our political progress and having no border in Ireland are paramount and will not be messed with—that will not be accepted by anybody at the height of political power in the United States.

The Bill is an affront to international law, as has been said many times this week. It rips up an agreement that was made between this Government and the European Commission. It threatens a hard border in Ireland, and in clauses 46 and 47, it rides a coach and horses through the devolutionary settlements for Scotland, Wales and Northern Ireland. If that was done on its own, there would be an outcry. Our amendment 19 is there to give consent—the much-used word—to those legislative Assemblies and Parliaments. No Whitehall Minister should be allowed to override, deny or undermine the interests and opinions of elected representatives in Scotland, Wales or Northern Ireland. If Members agree with that, they should support amendment 19.

Where I come from, we value democracy, because people had to actually march for democracy there. In 1968, my own grandfather and hundreds of other people were beaten off the streets by a corrupt and unjust police force sent there by a corrupt, sectarian and unjust Government. The civil rights movement got rid of that Government, but it took 30 years of democratic struggle against the men of violence, against the state and against intransigence, sectarianism and division to bring about an end to that and make sure that our own people could be represented by local politicians, making local decisions on their behalf. That was not easy; it was very difficult. They created a delicate agreement called the Good Friday agreement.

The Good Friday agreement has been bandied about this House and on the airwaves over the past couple of weeks. I can tell Members that it is fragile and delicate. Even the Members from Northern Ireland who disagree with me will be able to agree with me on this point. We are in a very delicate and fragile place. Please do not mess with it. Please do not ride a coach and horses through it. There is no way, in my view, that we can hand power to Whitehall Ministers to make decisions over the heads of locally elected people in Northern Ireland and not upset that delicate, painstakingly negotiated balance. Nationalists, Unionists and others are working together in the common interest. Is it difficult? It is very difficult. Is it delicate? Yes, it absolutely is. Is it fragile? Well, we have had three years of no Government, so that should tell us all about the fragility of those institutions. We are not prepared to wreck or hinder that progress.

Sammy Wilson Portrait Sammy Wilson
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I am amazed at the hon. Gentleman’s defence—[Interruption.] Yes, I am amazed at everything he is saying. First, he is quite happy not to have a trade deal with America—that will damage the economy of Northern Ireland—and now he is defending the Northern Ireland Assembly’s ability to make decisions about the economy of Northern Ireland, when this withdrawal agreement leaves 60% of the laws in Northern Ireland in the hands of Brussels. The Bill seeks at least to free us from Brussels’s ability to take what support we can give to our industry.

Colum Eastwood Portrait Colum Eastwood
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This withdrawal agreement took a long time to negotiate. The British Government and this Prime Minister signed up to it, and it was called a fantastic deal. It was to protect us from a hard border in Ireland. We spent 30 years trying to get rid of hard borders and division and trying to bring people together to allow local people to work together to make decisions on behalf of local communities.

I cannot understand how anybody who is supposed to be a devolutionist and whose party is in government—even though the right hon. Gentleman is sometimes at odds with the leadership of his party—would want any Minister based in Whitehall to make decisions over the heads of the Democratic Unionist party, Sinn Féin, the Social Democratic and Labour party, the Alliance party or the Ulster Unionist party. This Bill would allow a Whitehall Minister to override the wishes and very strong views of people in Northern Ireland on issues such as fracking and water charges. Who wants to see that happen in our devolved areas?

More than any policy risk, the Bill creates even more instability in our system, and we cannot afford that. Just look at what has happened over the past number of years. Alongside the attack on the protocol and the risk of a hard border in Ireland, the Bill rides a coach and horses through the Good Friday agreement in so many ways. If this Government, as they profess, support the Good Friday agreement and devolution and want local people to work together, spilling their sweat and not their blood, to bring about economic progress and change how society works, they will take away the risk of the Bill, because causes 46 and 47 would override, undercut and undermine all that progress.

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Chris Clarkson Portrait Chris Clarkson (Heywood and Middleton) (Con)
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It is a pleasure to serve under you chairmanship, Ms McDonagh.

This is one of the more difficult speeches I have had to deliver in my short time in the House, and that is not to say that I am conflicted; far from it—I will be supporting the Government and voting against the amendment. Rather my difficult is trying to understand the strident objection to the concept of more money coming to every part of this United Kingdom. In trying to understand this point of view, I have tried to distil the essence of the Bill, specifically the provisions in clauses 46 and 47, and the importance of the Bill to maintaining our internal market and by extension our Union. Article 6 of the Union with Ireland Act 1800 states that

“his Majesty’s subjects of Ireland shall have the same privileges and be on the same footing as his Majesty’s subjects of Great Britain.”

Explicitly stated in the Act that created our Union is the idea that all four home nations will be treated equally and fairly and on an equal footing. That principle has operated seamlessly for over 200 years, yet right now, because of the calculated actions of the European Union, that bond is in jeopardy.

I want hon. Members to consider what is at stake here: the very essence of who we are. We will be allowing a supranational entity to exercise power over a part of our nation and fellow UK citizens to be treated differently and potentially cutting them off from their own country’s markets. Step back and reflect for a moment: there are Members of this Parliament seriously arguing that we should allow that to happen if no deal is reached with the EU.

This will not come as a surprise to many in my constituency, or in towns such as Darlington, Accrington, Bury or Bishop Auckland, where they gave the Labour party its marching orders in December. Many of the faces that were straining every sinew to frustrate the 2016 referendum result are still on the Opposition Benches. In fact, the architect of Labour’s second referendum pledge is now the leader of its party. What better signal to send to people in seats such as mine that Labour does not share their values and does not care about their opinions, except for the fact I can only see four Labour Members in the Chamber—and one of them is leaving. The contempt that shows for red wall voters is clear. The Labour party does not take this seriously, does not want a sensible solution to Brexit, does not care about people in the north and midlands.

Of course, they are not on their own in their endeavours. The nationalist parties are salivating at the prospect of a scenario that separates a part of the United Kingdom from the rest. It is after all their raison d’être. It is a petty, divisive attitude that leads to the kind of double-think where they simultaneously carp on about a fictitious power grab while openly admitting they would hand over more powers to Brussels, including powers over our coastal waters and fisheries. So-called civic nationalism is a bit like clean coal: adding a friendly adjective does not make it any the less toxic or any more in need of phasing out.

The clauses being debated today have a distinct significance to communities such a mine. The forgotten towns of the north and midlands voted so overwhelmingly to leave the EU because it simply was not working for them. The UK would send vast sums of money to Brussels, which would then send some of it back, with instructions on what to build, what to fund and where to put a sign thanking them for their largesse. It is a bit like being mugged and then being forced to wear a T-shirt of your assailant.

That money never reached communities like mine, not in any meaningful sense. By taking charge of our finances, by building a shared prosperity fund, we will make sure that more of our money is spent in our communities, helping our people. I want people in Heywood, Middleton, Bamford, Castleton and Norden to have the same opportunities as people in London, Bristol and Cambridge. This Bill does that, in addition to the £2.5 billion for city and growth deals across the whole UK already on the table.

It genuinely saddens me that some people in this place, some of whom I have come to think of as friends and some of whom I greatly respect, are still fighting this battle. As well intentioned as they may be, I think history will find them on the wrong side of this debate, and I would like to quote to them a letter sent to me by my constituent, Prasana MacDonald from Middleton. She says: “Mr Barnier broke his word in good faith for all concerned. We should be a laughing stock in the eyes of good countries who will wonder what has happened to the British nation, in fact, placing ourselves in a position where we can be at the beck and call whenever they choose to do so. It is hardly attractive for any country wanting to do business with us. We will also be in a weaker position, negotiating with the wider world whilst tied to the EU’s apron strings.”

5 pm

Hon. Members should not underestimate the depth of feeling on this. In December, those who stood against the settled will of the British public reaped the whirlwind. The eyes of the nation that put extraordinary trust in this party, and this Government, are still watching. I will simply close by asking hon. Members to consider two questions when they vote tonight. First, which agreement is most important to them, the withdrawal agreement or the Good Friday agreement? Secondly, which union is more important to them, the European Union or the United Kingdom of Great Britain and Northern Ireland? The choice should be clear.

Sammy Wilson Portrait Sammy Wilson
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I do not know if there are too many people across the country today sitting in front of their TV screens, watching this debate: I doubt that many are likely to be doing so. But if there are, many of them will be bemused by our now having spent over three hours wrangling about whether it is a good thing that the Government are putting it into legislation that they are prepared to spend money across the United Kingdom on economic development, improving infrastructure, supporting cultural activities, supporting activities and programmes relating to sport, supporting international educational and training activities and supporting educational and training activities and exchanges within the United Kingdom. It is bizarre that we think this is in some way bad, and that the Government, by doing such a thing, are plotting, conniving and cynically trying to destroy parts of the United Kingdom and the devolution settlement.

The fact of the matter is that as far as England, Scotland, Northern Ireland and Wales are concerned, the devolved Administrations will still have significant spending powers over all those things. They will get their allocation under the Barnett formula, as they have always done. They will have the freedom to make the decisions to spend that money, and they will be able to set their own priorities. Even when it comes to the money that the Government will decide to spend centrally, does anybody really believe that some Minister in Westminster will look at, say, Northern Ireland and say, “There is something that the devolved Administration has never thought of, does not even have as a priority and has never even suggested, but by Jove we are going to spend money in Northern Ireland on that project.” It is totally bizarre to think that that is how money, which is hard raised in the first place, would ever be spent. Of course cognisance will have to be given to, first, what is in the national interest and, secondly, what local administrations believe is important to be delivered on the ground in their own areas.

One of the oddest arguments I have heard today was from the hon. Member for Foyle (Colum Eastwood), who is no longer in his place. I do not like talking about people who are not here, but as he has not stayed for my contribution, I must make the point. He wants clause 46 removed because he thinks it is in danger of bringing violence to Northern Ireland, it will break the peace agreement and it will tear up the Good Friday agreement. Somehow or other, the Government spending money on those things, or proposing to do so, will destroy the peace in Northern Ireland. I know that some people in this House have fairly thin arguments. When they have thin arguments, and especially when those arguments are anything to do with Brexit or the withdrawal agreement, they usually talk about violence in Northern Ireland, but this is taking it a bit far.

Carla Lockhart Portrait Carla Lockhart (Upper Bann) (DUP)
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My right hon. Friend will share my shock and dismay at the comments that the hon. Member for Foyle made earlier, cheerleading threats from some US politicians, such as Peter King, a known IRA sympathiser, to scupper a UK-US trade deal, to the detriment of his constituents, my constituents and indeed everyone in the United Kingdom. Does he agree that those who promote the narrative of threatening violence, destabilising the peace process or threatening devolution have yet to tell us where those threats are coming or indeed to condemn them?

Sammy Wilson Portrait Sammy Wilson
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I thank my hon. Friend, who has hit the nail on the head. We have all these threats—I have heard them from all around the House in the debate on this Bill. However, I have yet to hear how, first of all, anything in this Bill drives a coach and horses—to use the words of the hon. Member for Foyle—through the Belfast agreement. If it does that, I would have thought that he could give us one example. “Coach and horses” indicates to me that there should be about 100 examples, he did not even give the House one, and of course we get the usual threats.

I want to talk to our amendment 22. My concern is about the provision in this Bill to give financial assistance for all the areas that I have outlined. The danger is that, while it might apply in England, Scotland and Wales, it cannot apply in Northern Ireland, because financial assistance—and a whole range of other assistance, in tax, fiscal policy, industrial policy, research and development, and everything else—falls under the heading of state aid. The Government have realised—rather belatedly, even though they were warned—that the state aid provisions in the withdrawal agreement apply not only to Northern Ireland but to the whole of the United Kingdom, according to article 10 of the Northern Ireland protocol.

The Government have sought to remedy that—of course, they have got a lot of criticism for that—by saying that they will not apply those provisions to England, Scotland and Wales. However, the Secretary of State for Business, Energy and Industrial Strategy made the position quite clear in the letter that he has sent round, explaining that this legislation will

“ensure that there is no legal confusion about the fact that, while Northern Ireland will remain subject to the EU’s State Aid regime for the duration of the Protocol, Great Britain will not be subject to EU rules in this area.”

The reason for our amendment is to remove the exclusion of Northern Ireland in this Bill, which would otherwise prevent Northern Ireland from being able to benefit from that financial assistance.

If these infrastructure projects are to benefit the whole of the United Kingdom and to address national issues, I cannot understand how the Government can then say, “But by the way, we are consciously making a decision to exclude Northern Ireland from these safeguards.” Be in no doubt: without this Bill, under the withdrawal agreement, the whole of the United Kingdom would have to declare any assistance given to its industries, in any form. The Commission would make a judgment whether that was lawful, and if the Government persisted, the European Court of Justice would decide whether that support could be applied. That is the stark fact. That is one of the reasons why the Government have had to take the steps that they have taken, but they have left Northern Ireland out of that provision. Ministers have been quite explicit about that, and the Bill is quite explicit about that.

That has two effects. Let us not forget that we are talking about the internal market of the United Kingdom. The first impact is that Northern Ireland and businesses in Northern Ireland will be left unprotected from predatory behaviour or unfair competition from other countries in the EU, and especially the Irish Republic. We have good experience. People talk about co-operation between Northern Ireland and the Irish Republic. The fact of the matter is that, when it comes to looking for investment, looking for jobs and promoting its economy, the Irish Republic is not co-operating with us. It is not a collaborator; it is a competitor. It has proved that time and again.

We do not have any transatlantic flights between Belfast International airport and North America, even though North America is a very important market for us and a very important source of investment, and connectivity is all-important in that context. Why do we not? Because the Irish Government have promoted flights and used every fiscal device and every means possible to promote Dublin airport. I could go through lots of examples, but time is short.

That is the first impact. Northern Ireland businesses will not have any means of protection. Even if the Northern Ireland Executive spot an issue and say, “We want to have some support for our industries,” that is challengeable in the European Commission and in the Court—which, by the way, we will have no political representation and no judicial representation in.

Jim Shannon Portrait Jim Shannon
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The agrifood and fisheries sectors are very important in my constituency and across Northern Ireland. We have past experience of the Republic of Ireland’s intentions towards the fishing sector. It is very important that we have control of that industry and can grow it. The agrifood sector is equally important. In my constituency, it provides some 2,500 jobs. Does he agree that, if we do not have this protection through our amendment to the Bill, we will be disadvantaged compared with other countries, and the Republic of Ireland in particular?

Sammy Wilson Portrait Sammy Wilson
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Well, the whole withdrawal agreement disadvantages the economy of Northern Ireland. Some aspects have been tinkered with in this Bill, but many have been left as they are.

The second impact refers to the internal market of the United Kingdom. As a result of this Bill, it will be possible for the Government to support industries in GB but not businesses in Northern Ireland. We could therefore have a scenario where a firm located in Northern Ireland cannot benefit from the financial assistance that is available in the rest of the United Kingdom and finds itself in a position where it is advantageous to relocate from Northern Ireland, where it cannot get assistance, to other parts of GB, where it can. So much for this being a Bill to protect the internal market of the United Kingdom! By having a provision for financial aid and excluding Northern Ireland from the measures on ignoring the state aid provisions in the withdrawal agreement, we could distort investment across the United Kingdom to the detriment of Northern Ireland.

For those reasons, I believe that my party’s amendment is reasonable and fair. It meets the requirements and objectives of the Bill—namely, to ensure that the whole United Kingdom benefits from the prosperity that will come when we leave the European Union, and to ensure that the internal market of the United Kingdom will not be distorted. That is one of the reasons why I believe that the Government should include Northern Ireland in the provisions in clauses 42 and 43, and that the House should support amendment 22.

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Ben Bradley Portrait Ben Bradley
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I thank my right hon. Friend for that intervention. I feel like I am chairing this debate. I will move on.

Sammy Wilson Portrait Sammy Wilson
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The hon. Gentleman is making some very good points about how Government spending directed centrally could help many of the devolved regions. For example, the A75 in Scotland, which is an important route to Northern Ireland, is one of the most unsafe roads in the United Kingdom. The Scottish Government have, for whatever reason, not been able to spend money on it. That is a good example of how money from outside Scotland could be spent on national infrastructure to improve safety and the infrastructure in the area.

Ben Bradley Portrait Ben Bradley
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The right hon. Gentleman is absolutely right. As has been discussed at length in this debate, being able to direct funding from the United Kingdom, with our own priorities at heart, rather than from the European Union, gives us the ability to pick out those projects and deliver on the key priorities that will benefit our whole United Kingdom. That is the entire point of what we are trying to achieve.