United Kingdom Internal Market Bill

Stephen Doughty Excerpts

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Monday 14th September 2020 Commons Chamber

[The Prime Minister (Boris Johnson)]

I beg to move, That the Bill be now read a Second time—and that this House act to preserve one of the crucial achievements of the past three centuries, namely our British ability to trade freely across the whole of these islands.

The creation of our United Kingdom by the Acts of Union of 1707 and 1801 was not simply a political event, but an act of conscious economic integration that laid the foundations for the world’s first industrial revolution and the prosperity we enjoy today. When other countries in Europe stayed divided, we joined our fortunes together and allowed the invisible hand of the market to move Cornish pasties to Scotland, Scottish beef to Wales, Welsh beef to England, and Devonshire clotted cream to Northern Ireland or wherever else it might be enjoyed.

When we chose to join the EU back in 1973, we also thereby decided that the EU treaties should serve as the legal guarantor of these freedoms. Now that we have left the EU and the transition period is about to elapse, we need the armature of our law once again to preserve the arrangements on which so many jobs and livelihoods depend. That is the fundamental purpose of this Bill, which should be welcomed by everyone who cares about the sovereignty and integrity of our United Kingdom.

We shall provide the legal certainty relied upon by every business in our country, including, of course, in Northern Ireland. The manifesto on which this Government were elected last year promised business in Northern Ireland

“unfettered access to the rest of the UK”.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I am listening carefully to what the Prime Minister is saying, but why did one of his own distinguished Members describe his policy this week as “Nixonian Madman Theory”? Is the Prime Minister not deeply worried that his policies and approach are being compared to those of the disgraced former US President Richard Nixon, rather than someone like Winston Churchill?

[The Prime Minister]

Actually, I think that this Bill is essential for guaranteeing the economic and political integrity of the United Kingdom and simply sets out to achieve what the people of this country voted for when they supported our election manifesto: not only unfettered access from NI to GB and from GB to NI, but also—I quote from the manifesto—to

“maintain and strengthen the integrity and smooth operation of our internal market.”

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[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I am a Unionist. I believe that we are stronger together and I want a functioning UK internal market, but it must be one that is based on respect, on partnership and on consent—the very principles that underpinned the devolution settlement that I and my party have proudly supported for the past few decades. That settlement respects our different histories, cultures, languages and perspectives, but couples those with the pooled benefits of working together. To undermine and disrespect that settlement, which is underpinned by multiple referendums and the Good Friday agreement, is both a breach of trust and deeply dangerous.

On Northern Ireland specifically, let us not forget that it was this Prime Minister who personally negotiated with the Taoiseach on the Wirral and gave his word to the Taoiseach and all the communities of Northern Ireland, so to renege on those commitments now is both dangerous and devoid of moral principle, quite apart from the fact that it also imperils the Government’s stated wider goals for so-called global Britain such as a US trade deal. As Nancy Pelosi said, “What were they thinking?” All the chumminess of the Prime Minister and the Chancellor of the Duchy of Lancaster with President Trump will not circumvent the United States Congress.

The other fundamental issue at stake is international law and the rule of law. I commend what the former Attorney General, the right hon. and learned Member for Kenilworth and Southam (Jeremy Wright), said. Clauses 42, 43 and 45 are, in his words, not a clarification, but a contradiction, not only of our commitment to international law, but of the very principle of the rule of law, for which Britain has stood as a beacon for many centuries. That saw us being instrumental in the founding of the United Nations, which has its 75th anniversary this year. The first General Assembly took place across the square from here. We stood for the rule of law in the establishment of the global human rights regime, the International Criminal Court and a rules-based financial and trading system, let alone the defence of our own interests from the Falklands to Gibraltar. We ask Iran to abide by its nuclear commitments, the Communist party of China to adhere to the Sino-British joint declaration and Russia to respect the territorial integrity of Ukraine or take responsibility for poisoning its citizens or using chemical weapons on the soil of this country, or when we rightly support the prosecution of those who committed genocide in Bosnia, Rwanda and now in the case of the Rohingya or the Uyghurs.

This goes well beyond Brexit. We all have our views on Brexit and the Prime Minister’s failure to produce an oven-ready deal. It is about Britain and the type of country we want to be: whether we want to be one that upholds the rule of law and standards, and stands as a beacon for democracy and rule of law in the world, or whether we want to become a pariah. I know that there are many Conservative women and men of courage who say things in the corridors of this place. The question is whether they will stand by their consciences in the vote tonight.

United Kingdom Internal Market Bill

Stephen Doughty Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Paul Scully]

This achieves the right balance in terms of a remedy, in the unlikely event of a breach of convention rights, for the reason that I have covered in terms of our impact assessment on human rights. I hope that right hon. and hon. Members will feel able to support these important but mainly technical amendments.

I will move on to the Opposition amendments, because it is important that we give them due care and attention, but I first want to remind hon. Members of the core purpose of the Bill. The Bill puts into law a market access commitment by enshrining the principles of mutual recognition and non-discrimination in the law. That means that goods and services from one part of the UK will be recognised across the country, and it will ensure that there is equal opportunity for all UK-based companies trading in the UK.

New clause 2 would place an obligation on UK Ministers to seek to agree a framework covering the UK internal market, which would need to be taken into account in the exercise of financial assistance payments. The new clause would fundamentally alter the basis on which common frameworks are developed and would not be in line with the design of common frameworks that was agreed by the UK Government and devolved Administrations. The principles agreed made it clear that the common frameworks are based on consensus rather than legislation, as we discussed in Committee. The principles also set out that the common frameworks are limited in their scoped powers returning from the EU, which have a devolved intercept.

An overarching framework would not materially contribute to effective joint working between the United Kingdom Government and devolved Administrations. Through the common frameworks programme, we are agreeing mechanisms for effective intergovernmental working. Those will cover many areas engaged by provisions in the Bill for the internal market.

We are also developing proposals for an enhanced intergovernmental system, which will support work to maintain policy coherence across the United Kingdom. This collaborative model is likely to be more effective and provide greater clarity than the process set out in the new clause, which does not clearly define when the duty in subsection (1) and the due regard duty in subsection (3) would be met.

Common frameworks are designed to allow for collaborative and flexible working between the United Kingdom Government and the devolved Administrations. Creating a framework such as this, which is underpinned by obligations in law, could undermine that effective joint work.

New clause 3 seeks to require the Secretary of State to provide Parliament with regular reviews on the functioning of the internal market, the effectiveness of provisions in the United Kingdom Internal Market Act and progress towards delivering provisions not in the Act, such as common frameworks. While I commend the intention behind the amendment, the review provisions it seeks to deliver are already provided for. They exist either in the Bill, through the Office for the Internal Market, or in previous legislation.

As part 4 of the Bill sets out, the Office for the Internal Market will have a number of reporting and monitoring responsibilities. Clause 29 sets out how the office will need to compile yearly “health of the market” reports on the functioning of the internal market, and five-yearly system reviews on the operation of parts 1 to 3. Those reports will be laid before the UK Parliament and the devolved legislatures for consideration, ensuring parliamentary transparency and accountability. I consider, therefore, that the new clause risks being highly duplicative.

It is essential that both those reports are compiled at arm’s length from both the UK Government and the devolved Administrations. That will enable the office to deliver a credible, impartial and expert analysis that delivers difficult messages to the Administrations, if necessary. However, when conducting those reports, the Office for the Internal Market will be able to consider the views of all relevant interested parties, including the devolved Administrations, in order to present evidence on how well the internal market itself and the Government’s proposals are serving stakeholders across the UK. Moreover, regarding the specific areas listed in the amendment, the Government already publish quarterly reports entitled, “The European Union (Withdrawal) Act and Common Frameworks”, which set out joint progress on common frameworks.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Minister is putting a brave face on things, as always. It is all very well talking about reviews and reports, but does he accept that, for an internal market to function, there actually needs to be communication between the Prime Minister and the leaders of the devolved Administrations? Why has the Prime Minister failed to communicate regularly with the First Minister of Wales, instead speaking to him only once every few months? Especially at a time of national crisis, why has the Prime Minister been so poor in his communication?

[Paul Scully]

The Prime Minister, the Secretary of State and Ministers work with all the devolved Administrations. My colleague in the Business Department has meetings—especially at this particular time—with businesses across the devolved Administrations, including in Wales.

As I say, for this particular area, we already publish the report I referred to. However, we consider it right that any reporting on the Joint Committee machinery or the UK shared prosperity fund should be undertaken separately from that on internal market provisions. For that reason, I am not able to accept the amendment.

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[Lucy Powell]

That is what we are calling for: getting Brexit done. Get the oven-ready deal done. The hon. Gentleman says that is what this Bill is about. The Government have had months to prepare it, and here we are adding amendment to amendment at this late stage.

We have been clear that the Bill, as drafted, is a bad Bill that is not in the national interest. Today, we will once again work to try to improve it. It is a Bill that breaks the law and could break up the UK. We have heard some noble and notable interventions during the debates. We saw that many distinguished Government Members felt unable to support the Bill on Second Reading and on some of the key clauses in Committee. As usual, though, they were met with a tin ear from the Government.

[Stephen Doughty]

I wonder whether my hon. Friend is aware that this disquiet seems to stretch across Government. The Foreign, Commonwealth and Development Office this weekend launched a campaign called “This is democracy”. It features a picture of a judge standing in their robes, and it says:

“Independent judges free to uphold the law. This is democracy. #BeHeard”.

Does she think that perhaps the FCDO is trying to send a message to the rest of the Government and the Prime Minister?

[Lucy Powell]

My hon. Friend makes a good point. Like him, I had a wry laugh when I saw that advert.

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[Sir Robert Neill]

I think that we are in agreement to the extent that I do not believe that the UK has yet trespassed over its international legal obligations, and I agree that we want to get this sorted out in the negotiations. I do not think that I can go further than that at this stage, but I understand that we all want this to be dealt with in the negotiations if possible. I voted for the withdrawal agreement, and I voted for the previous Prime Minister’s withdrawal agreement. It might have saved us a lot of trouble if Members on both sides had voted for that withdrawal agreement in retrospect, but we are making the best of the situation that we have inherited, if I might respectfully say so.

[Stephen Doughty]

The hon. Member is being generous in giving way. Does he accept that damage has already been done to the UK’s international reputation? He rightly wants to deal in facts and the reality of what is going on. I know from conversations that I have had with, for example, officials in UN institutions in Geneva, that the UK has been publicly questioned by other countries, in elections to bodies and negotiations on other matters beyond this matter, because of the very statements that the Government have made and the very clauses in the Bill. That, potentially, seriously undermines our abilities on the international stage on a series of issues: security, trade, climate change and well beyond.

[Sir Robert Neill]

It is certainly fair to say that it would have been better to have had the caveats that the Government have now put into the Bill to begin with, and I am grateful to Ministers for having worked in the way in which they have to achieve that. It would be absurd to pretend that there has not been real concern expressed by people whom we respect and ought to be able to deal with as allies and counterparties going forward. There is a way to ensure that that concern is alleviated and lasting harm is not done, and I am sure that the Government are committed to trying to do that.

Superficially, new clause 1 is attractive, but I am inclined to give the Government the benefit of the doubt that it is not necessary for the reasons that they have set out. I was going to press the Minister, but he has anticipated much of what I have to say. I am sure that he will confirm again, in winding up, that we are committed to ensuring that part 5 is not used to undermine the legally binding commitments and until such time as it is necessary to act to protect a significant national interest of the UK in relation to the integrity of the Union, as a result of bad faith by the EU counterparty —which, please God, I hope never arises—and that we will do so without seeking to oust the legal obligations that we entered into in relation to the safeguarding provisions and the arbitral arrangements under article 167.

Given that, we can make a good case for saying that new clause 1 is not necessary and that the Government’s own intention will deal with that, but I urge the Government, as a friend, to ensure that they reinforce those points very strongly as we go forward, because to persuade the Upper House will be an important task. Continuing evidence of good faith and a willingness perhaps to look at some of the wording would be helpful to the Government.

I have sympathy for new clause 8. My right hon. Friend the Member for Gainsborough (Sir Edward Leigh) and I were reminiscing that we were the two youngest members of the Conservative group of the Greater London Council. We were actually abolished by Mrs Thatcher, by Act of Parliament, but that does not seem to have entirely destroyed our careers or done us lasting harm. I very much take on board my right hon. Friend’s points about the value of the Vienna convention. He and I served on the Council of Europe together, and that convention—again, the UK contributed significantly to it over the years—may benefit us a good deal going forward. Even if it is not necessary to take the wording of new clause 8 into the Bill, the sentiment behind it is useful, and I hope the Government will bear in mind the arguments my right hon. Friend will advance later in the debate, because they may well be useful elsewhere.