Economic Activity of Public Bodies (Overseas Matters) Bill

Stephen Crabb Excerpts
2nd reading
Monday 3rd July 2023

(1 year, 5 months ago)

Commons Chamber
Read Full debate Economic Activity of Public Bodies (Overseas Matters) Bill 2022-23 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Michael Gove Portrait Michael Gove
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Not at this point—I will in a second.

It is important to stress what the Bill does not do. It does not restrict local authorities adopting policies in line with formal, agreed Government sanctions, embargoes and restrictions. It does not impede local authorities considering legitimate commercial factors related to business with a foreign state, and exercising due diligence in the award of contracts. And it does not prevent a local authority from exercising due diligence when considering whether a supplier or investment target might be involved in environmental misconduct, bribery, competition law infringements or labour misconduct, including human trafficking and modern slavery. In no way does the Bill circumscribe anyone’s right to freedom of speech or conscience.

What the Bill does do is prevent local authorities from singling out individual nations for discriminatory treatment on the basis of an ideological opposition to that nation and its fundamental basis. Action is required here because there is an existing, organised and malign campaign that aims to target and delegitimise the world’s only Jewish state. That campaign seeks to persuade public bodies to make commercial decisions solely on the basis of harming that state and its people.

Stephen Crabb Portrait Stephen Crabb (Preseli Pembrokeshire) (Con)
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I am grateful to my right hon. Friend for giving way so soon in this debate.

Is not the reason every single Conservative Member stood on a manifesto commitment to bring forward such legislation that we understand that there is something fundamentally illiberal, leftist and with deep, ugly connections to antisemitism at the heart of the boycott, divestment and sanctions movement? That is what we are trying to tackle today.

Michael Gove Portrait Michael Gove
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My right hon. Friend is absolutely right. I shall go on to say more about the nature of the BDS campaign because we are not talking in the abstract; we are talking in concrete terms about a campaign that exists, and has been in operation now for nearly 20 years, based on a premise that seeks to delegitimise the state of Israel. The campaign also leads directly, as I shall point out, to antisemitic incidents and a loss of community cohesion.

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Lisa Nandy Portrait Lisa Nandy (Wigan) (Lab)
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I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House, while opposing any discrimination or prejudice in the economic activities of public bodies, believing that all such bodies must act without bias or selectivity when making ethical decisions on procurement and investment and recognising the impact selective and biased campaigns have had on the Jewish community in particular, declines to give a Second Reading to the Economic Activity of Public Bodies (Overseas Matters) Bill, because the Bill risks significantly undermining support for groups around the world facing persecution, for example the Uyghur, who are currently victims of grave and systemic human rights abuses, is incompatible with international law and the due diligence of public bodies, undermines the UK’s long-standing cross-party position in respect of the Occupied Palestinian Territories and Golan Heights by conflating these with the State of Israel and running counter to UN Security Council Resolutions, singles out the State of Israel in effect creating the issue it intends to solve, seeks to enforce its provisions by giving unprecedented powers to the Secretary of State beyond those enjoyed by the police and the security services, places unprecedented restrictions on the ability of public bodies, many of them directly elected, to express a view on policy, current, proposed and desired, has potential widespread and negative impacts on local government pension funds, limits freedom of speech and is likely to be subject to repeated and extended legal challenge by reason of its conflict with established legal principles; and therefore urges the Government to bring forward alternative proposals.”

I recognise the Secretary of State’s very touching words on Lord Kerslake. He was Lord Kerslake to some, but Bob to those of us who have benefited over many years from his ceaseless encouragement and advice. His knowledge of central Government and local government was unparalleled. His commitment as a genuine public servant who cared deeply about people will be badly missed. He was taken from us too soon, and I would like to add our voice to the very touching tribute from the Secretary of State.

It is perhaps in the spirit that Bob would have wanted that I approach the Bill—on a note of consensus, on something that ought to be a matter of consensus for Labour Members. I recognise that there are deeply held feelings about these issues, and I want to acknowledge that Members in this debate must be heard. I shall, of course, welcome interventions, but I will seek to balance that with the need of Members on both sides of the House, whether I disagree with them or not, to make their views known.

I want to begin by saying to the Secretary of State that we recognise the problem which he says the Bill is designed to tackle. It is therefore deeply frustrating that the Government have introduced a Bill that is needlessly broad, with sweeping, draconian powers and far-reaching effects. Instead of Members on both sides of the House having the opportunity to come together and welcome long-overdue action, he faces genuine, legitimate, heartfelt opposition from Conservative Members; from groups who face persecution, such as the Uyghur, who thought that we stood with them; from human rights groups; and from local government. I have watched the Secretary of State lose Government Members because of the tone that he has struck in the debate. I hope that as the debate progresses he will listen to some of those concerns.

I say to the House that it does not have to be this way. It is not, in our view, wrong for public bodies to take ethical investment and procurement decisions. In fact, there is a long history of councils, universities and others taking a stance in defence of freedom and human rights. In the case of elected councils, their electors often expect them to do just that. There is a difference between legitimate criticism of a foreign state’s Government and what some individuals and organisations have tried to do in recent years, which the Secretary of State outlined well. To seek to target Israel alone, to hold it to different standards from other countries, to question its right to exist, to equate the actions of the Israeli Government with Jewish people, and in doing so create hate and hostility against Jewish people here in the UK is completely wrong.

There is at least one example of a publicly funded body that has taken a stance against the state of Israel that has effectively cancelled Jewish culture here in the UK. We will always stand against that. Most public bodies would not dream of behaving like that, but even one incident has unacceptable and far-reaching consequences for the Jewish community, increasing hate and hostility at a time when antisemitic attacks have reached a peak, children learn behind gates, and security guards stand outside synagogues.

Stephen Crabb Portrait Stephen Crabb
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The hon. Lady is speaking really well, and she gave a remarkable Second Reading speech on the Holocaust Memorial Bill.

The hon. Lady is trying to suggest that examples of BDS are few and far between, and that it is a legitimate field of activity for public bodies to comment on foreign policy and express ethical concerns. The trouble is, time and time again, it is about BDS and it is about targeting Israel. When the Welsh Government issued a procurement advice note two years ago, they were trying to single out Israel yet again, and no Labour MP said a thing about it. Is that not the problem?

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Stephen Crabb Portrait Stephen Crabb (Preseli Pembrokeshire) (Con)
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I rise to speak in support of the legislation this evening. I welcome the fact that we are following through on a manifesto commitment to bring forward legislation in this difficult, sensitive and complicated area. I very much agree with the remarks made by my hon. Friend the Member for Brigg and Goole (Andrew Percy), and my right hon. Friends the Members for Middlesbrough South and East Cleveland (Sir Simon Clarke) and for Chipping Barnet (Theresa Villiers).

We have had a number of speeches striking slightly different tones. There was a very good speech from the hon. Member for Wigan (Lisa Nandy), who tried to strike a reasonable tone and explained the rationale behind Labour’s reasoned amendment. Unfortunately for her and for the hon. Member for Birmingham, Selly Oak (Steve McCabe), who also made a thoughtful and intelligent speech, many of the speeches from the Opposition Benches seemed to be in favour of boycotts, and wanting to keep a candle burning for being able to use boycotts, divestment and sanctions as tools at a local authority level, or among other public bodies. We on the Conservative Benches are clear that we do not want to see public money being used in that way. We are clear about the main purpose of this legislation, which is to tackle, as has already been discussed, the BDS movement, with its pernicious effects, its links to antisemitism and the very ugly and divisive character behind it. To any Conservative Member who stands up and says that that was not the purpose of our commitment in the manifesto, I say that that is just not true. The gestation of the Bill—the process that it has gone through and the internal discussion—has very much centred on trying to do something for the first time about the BDS movement.

To those Members who argue that the problem with this legislation is that it will attract legal challenge, I say that every single time we have tried to do something about the BDS movement it gets a legal challenge. We know that the BDS movement will try to fight this in the court. That is not a surprise, but that should not be a reason for us to resile from our commitment to do something about the matter.

There will be Members in the House today who believe that the BDS movement, leaving aside its ugly antisemitic characteristics, is a legitimate way of trying to challenge the state of Israel. We heard that in some of the speeches. The trouble with the BDS movement, as we know, is that time and again it singles out the state of Israel in a way that it does not do with other countries.

As for the Labour party trying to maintain a reasonableness about its position, I say look at what it does when it is in government. When the Welsh Labour Government tried to introduce a new national procurement note in 2020, what did they do? Surprise, surprise, they singled out one state for potential sanctions—the state of Israel. I am talking about Labour Ministers of the Crown today serving in the Welsh Government in Cardiff, so Members will forgive me if I do not have total confidence in the reasonableness of the Labour position that it is trying to put forward.

Crispin Blunt Portrait Crispin Blunt
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The BDS is a Palestinian-led movement. Who else is it supposed to protest against? I realise that it has a global application, but it is a Palestinian-led movement about Palestine.

Stephen Crabb Portrait Stephen Crabb
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My hon. Friend is right: it is a Palestinian-led movement. When we consider the individuals and organisations—Palestinian and otherwise—at the root of it, we can see that the movement is deeply problematic. I do not believe that any Conservative should be identifying and aligning themselves with any aspect of the BDS movement.

I welcome the legislation. I welcome, too, the fact that the Secretary of State has made a very strong commitment to working with others and seeing whether improvements can be made to the Bill. He has shown a genuine openness in that regard. None the less, improving the Bill cannot mean watering it down to make it ineffective, which we know the opponents of the Bill—the BDS movement outside this place—want us to do. I hope that the Government will remain robust and clear-sighted on this, but I also hope that we can work pragmatically and get good legislation on the statute book.

Economic Activity of Public Bodies (Overseas Matters) Bill

Stephen Crabb Excerpts
Angela Rayner Portrait Angela Rayner (Ashton-under-Lyne) (Lab)
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Following the right hon. Member for Chipping Barnet (Theresa Villiers), let me say this:

“When things are so delicate, we all have a responsibility to take additional care in the language we use, and to operate on the basis of facts alone.”—[Official Report, 23 October 2023; Vol. 738, c. 592.]

Those are the words of the Prime Minister in his statement to the House on Monday. He also said that

“this is not a time for hyperbole and simplistic solutions.”

He was absolutely right about the importance of tone in today’s debate, as we discuss the 7 October attack and events in the middle east. What we say and how we behave in this Chamber really matters, because it echoes out across the country. It goes without saying that the disgusting rise in antisemitism and Islamophobia since the attack on 7 October only makes that point more profound.

I fear that the Prime Minister’s powerful statement at the Dispatch Box earlier this week has been undermined by how he and his Ministers have brought this Bill before us today, at the last minute and with the least possible notice. The tension and disagreement surrounding the issues are well known to the Secretary of State yet, in the middle of a humanitarian emergency in the middle east, he has chosen this week of all weeks to force this legislation on to the parliamentary timetable—a Bill that fails the Prime Minister’s own test of avoiding simplistic solutions.

There can be no doubt that Labour is opposed to a policy of adopting boycott, divestment and sanctions against Israel, as it wrongly singles out one individual nation and is counterproductive to the prospect of peace. We know this is a serious issue.

Stephen Crabb Portrait Stephen Crabb (Preseli Pembrokeshire) (Con)
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The right hon. Lady says with some force at the Dispatch Box that Labour is clearly opposed to singling out Israel through BDS measures, yet where Labour is in government in the UK—Wales—the Welsh Labour Government sought to bring forward a procurement note that singled out Israel and the Palestinian territories. Can she explain what her position was when her colleagues in Wales sought to do that?

Angela Rayner Portrait Angela Rayner
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I thank the right hon. Member for his intervention. We are hoping to get consensus around what we are trying to do. I stand by my statement, but we do not want one nation to be singled out in this boycott. We do not agree with boycott tactics, which is why we were concerned enough to table our amendment to the Procurement Bill back in February, when I shadowed the Cabinet Office, which would have prevented councils from singling out Israel or any other country. The Government have consistently opposed that amendment.

Today, we are presented with a Bill that will not address the problem it rightly seeks to solve. As it stands, the Bill has needlessly broad and sweeping draconian powers and far-reaching effects. It is poorly drafted legislation that risks creating fresh legal disputes, and will only serve as new flashpoints for community tension. We remain far from convinced that protracted legal battles over the BDS would serve or protect Jewish communities in the UK. My hon. Friend the Member for Wigan (Lisa Nandy) clearly spelled out those issues on Second Reading, as did my hon. Friends the Members for Nottingham North (Alex Norris) and for Caerphilly (Wayne David) in Committee. Today is the fourth time that we have presented the Government with a chance to change course and choose a more constructive way forward, yet the Bill has been brought back nearly totally unamended—the only change is to the explanatory notes. It is all too clear that the Secretary of State has not listened.

However, there is a way forward. In our view, it is not wrong for public bodies to take ethical investment and procurement decisions. There is a difference between applying consistent ethical principles in legitimate criticism of foreign Governments and what, in recent years, some individuals and organisations have tried to do: seek to target Israel alone; hold it to different standards from other countries; question its right to exist; and equate the actions of the Israeli Government to Jewish people and in doing so, create hate and hostility against Jewish people here in the UK. That is completely wrong.

Amendment 13, on which we will seek a vote today, addresses that problem. It would allow public bodies to produce a document setting out their policy on procurement and human rights. The policy would be cemented in a framework, based on principles that apply equally to all countries, rather than singling out individual nations. Such a statement of ethical policy would ensure consistency in how public bodies decide on these matters, and would be subject to guidance issued by elected Ministers and laid before this House. Any inconsistent application would be prohibited. Under Labour’s proposals, if a public body were to act only against a particular state—for instance, the world’s only Jewish state—and failed to comply a consistent approach to human rights everywhere, such actions would be unlawful. We were disappointed that the Government chose not to support our amendment at previous stages, but I repeat today our offer to the Government—indeed, the whole House—to work together and speak with one voice on this most serious of issues, by accepting the amendment.

Moving on, there are four more concerning areas in the Bill that I wish to raise briefly with the Secretary of State. First, we have serious reservations about how the Bill effectively rewrites UK foreign policy by explicitly equating Israel with the Occupied Palestinian Territories and the Golan Heights. That is an unprecedented step that, to my knowledge, has never been taken in British statute and is unique in British legislation.

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Baroness Hodge of Barking Portrait Dame Margaret Hodge
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I hope that as I develop my argument the hon. Member will listen, because it is the flaws in the Bill that I think actually damage its intention, which is to limit and deal with the evils of the BDS movement. I said a little earlier that I oppose the BDS movement. I recognise that the BDS movement probably has the intention of trying to destroy the state of Israel. I want to tackle that, but I think that doing so in the way that is proposed in this legislation will simply damage that intent, not meet it. I think maybe that is where he and I differ.

The Bill is flawed in so many ways. The main reason is that it is not designed to tackle a problem; it is designed to score a crude party political point, as I said on Second Reading. I am afraid that the Secretary of State himself gave the game away on that occasion, when he said:

“The question for every Member of this House is whether they stand with us against antisemitism or not.”—[Official Report, 3 July 2023; Vol. 735, c. 591.]

I respectfully say to him that that is not the question, but it does lay bare the truth about the Bill. The Government believe that they have set a trap for the Opposition: if we speak against the Bill, they will try to paint us as antisemites. But I say to the Government that if they pass the Bill in its current form, it is they who will be encouraging antisemitism by fuelling hatred. They will be encouraging antisemitism by specifying on the face of the Bill only one country where the boycott of goods would be illegal, simply confirming in people’s minds that Israel and the Israel-Palestine conflict is a special case, different from all the other cases around. That is a constant problem, a constant issue that is raised with me by people who are worried and concerned—over time, not particularly in relation to the war as it stands—about attitudes in the UK to the Israeli-Palestinian conflict. Everybody says, “Why pick on Israel?”

So why do the Government now select Israel? It is they who are encouraging antisemitism by gagging free speech in our universities and council chambers. It is they who are encouraging antisemitism by trampling on the democratic rights of local politicians. It is an incredible arrogance for us as MPs to sit here and think that somehow we are better than, or different from, locally elected councillors who also have political views and who also carry out important democratic jobs in their councils.

It is the Government who are encouraging antisemitism by ignoring our obligations under the UN Security Council. It is they who are encouraging antisemitism—and I say this on the basis of my experience of fighting the British National party in Barking from 2006 until the general election in 2010—by refusing to engage in an open debate. By closing the debate, they give added credibility to the idea that those who seek to destroy the state of Israel are somehow wronged.

Stephen Crabb Portrait Stephen Crabb
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As the right hon. Lady knows, I have a huge amount of respect for her, and she speaks on these issues with an authority with which many of us cannot speak about them. She knows better than anyone that a tide of vile antisemitism has been unleashed in the country. Last week, some of us heard from Jewish students who were afraid to give their surnames because they were afraid of giving away their Jewish identity—afraid to admit that they were Jewish. One said that they felt as if Jews were being pushed out of British universities. If July was not a good time to introduce legislation to draw a line in the sand, and if now is an even worse time, when is a good time to make a stand on behalf of Jewish people who are at risk at this time?

Baroness Hodge of Barking Portrait Dame Margaret Hodge
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Let me start by saying that the growth of antisemitism on the streets and in our communities is absolutely terrible. It is affecting some of the youngest people in my own family, and it is dreadful to observe the impact that it has on young children. So I am completely with the right hon. Gentleman on that. My point is that the legislation is so flawed that it does not meet its intent. I would love to work with Ministers, and with Members across the House, to produce a piece of legislation that would tackle the issue that we know exists in relation to BDS, but would do so in a way that was not contentious. It does not have to be like this; we could do it in another way, and doing that as soon possible would be a really good thing to do.

Economic Activity of Public Bodies (Overseas Matters) Bill

Stephen Crabb Excerpts
Stephen Crabb Portrait Stephen Crabb (Preseli Pembrokeshire) (Con)
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My right hon. Friend is making some extremely important points about the nature of the BDS movement. Is it not the case that, as he says, there have been very few examples of councils looking to use the levers available to them to protest against other international issues? Is that not because the whole BDS movement—in fact, the label “BDS”—has been entirely constructed as a weapon against the state of Israel? When we look at the origins of the movement, we see, unfortunately, that it is riddled from top to bottom with antisemitism.

Michael Gove Portrait Michael Gove
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I am afraid that my right hon. Friend is absolutely correct. Again, to be more than fair, many prominent Labour voices have made precisely that point: the BDS campaign, those who created it and those who run it are very clear that they are singling out Israel. They want to see an end to Israel as a Jewish state.

I am very conscious of the fact that a number of right hon. and hon. Members wish to contribute to the debate. I also want to emphasise again that a horror and revulsion of antisemitism and prejudice of all kinds is shared across this House, as is a determination to see peace in the middle east. We have rehearsed the arguments, with great contributions in Committee and on Report, and I believe that this Bill is a targeted and proportionate approach to dealing with a unique evil. I hope that we will be able to support the Bill, but as I say, dissenting voices in this House must always be heard with respect. With that, I commend the Bill to the House.