United Kingdom Internal Market Bill

Stephen Doughty Excerpts

Tuesday 15th September 2020 Commons Chamber

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

The hon. Gentleman has made some strong points, but does he agree that it does not have to be this way? He will know that our Counsel General, Jeremy Miles, has been giving evidence alongside one of the Scottish Ministers this morning to a Committee in this place. He spoke of the engagement and discussion they had had with the previous Prime Minister, the right hon. Member for Maidenhead (Mrs May), and how that completely dried up at the start of this year, so much so that they did not even get the details of the Bill until the night before it was published.

[Drew Hendry]

That sort of attitude towards what should be co-operation over our common interest underlines the contempt that has been shown for the devolved nations. It is yet another example.

As I have said, we cannot and will not accept this legislation in any form. All the Bill does is simply and plainly underline why the democratic choices that represent Scottish people and the protection of our Parliament can only be delivered through the powers of independence for Scotland, so that it can take its place as an independent nation among the other independent nations of the world.

--- Later in debate ---

[Sir William Cash]

That is absolutely right. In fact, I argue that the provisions of the Bill as a whole maintain the Union, which is absolutely essential to the future of our competitiveness internationally. I do not expect SNP Members to agree with me, but what I am saying is that I actually believe that they should reflect very carefully on the advantages that come from being part of a Union. There are so many people—our friends and relations—who come from different parts of the United Kingdom and who work in different parts of the United Kingdom. When they are doing is contributing to the welfare of the Union as a whole.

[Stephen Doughty]

I am a Unionist, too. I believe in our Union and I believe that we are stronger together, but the reality is that the approach taken by this Government with this Bill disrespects the devolution settlement and rides roughshod over the wishes of the Welsh Government, which, let us not forget, is run by a Unionist party, Welsh Labour, but one that believes in devolution. So why does the hon. Gentleman think that the Welsh Government, who want to co-operate with this Government in finding common frameworks, are so unhappy with the approach taken in this Bill?

[Sir William Cash]

If Euro-integrationism were to get in the way, that would be a problem, but on the question of whether the UK Government are engaged in some kind of power grab while depriving the devolved Administrations of a say, the answer to that is no, too.

--- Later in debate ---

[Joy Morrissey]

I would argue that this is not an infringement of your rights or those devolved powers. This Bill is about enhancing all of our abilities to work in a single internal market to allow goods and services to flow freely. My hon. Friend the Member for Loughborough (Jane Hunt) mentioned glasses being made in one part of the Union and then being put together in another part. We have this so that we can frictionlessly move goods and services through the United Kingdom without tariffs and restrictions. There has to be a system through which that federal system is united, in terms of the economic objectives that we are setting, making ourselves globally competitive.

[Stephen Doughty]

rose—

[Joy Morrissey]

I will not give way—I will make some headway and then give way in a moment. When we talk about the internal market, we are talking not about a political objective, but about an economic objective—to remove regulatory obstacles from more goods and services in the UK so that we are able to trade freely among ourselves and make ourselves globally competitive. We are removing the technical, legal and bureaucratic barriers to allow its citizens to trade and do business freely, for its citizens to enjoy products from all over the UK.

When SNP Members raise concerns about state aid, I would imagine that they are referring to the EU structural funds or the EU development funds, the criteria for which have, in the past, benefited certain deprived areas in regions in Scotland and other parts of the United Kingdom. I can understand how there would be concern, and perhaps something could be established to look at how that fund and the targets were set to help in disadvantaged and impoverished areas where the EU structural funds have helped to improve the livelihoods of people in the United Kingdom, and to look at how we move that forward. This is not a Bill to take any political power: it is to make us stronger economically. It is purely on the grounds of economics—

[Joy Morrissey]

My hon. Friend makes an excellent point.

[Stephen Doughty]

I do not want to break up the United Kingdom. As I have said, I am a Unionist and I want to see a functioning UK internal market. Does the hon. Member think it is respectful for her Government to give details of the Bill only the night before it was published to Welsh Government Ministers, who also want to see a functioning internal market and want to make sure our country functions effectively and economically in the way she suggests?

[Joy Morrissey]

I thank you for your point, but I wonder if you would find it respectful for the EU to threaten to put a tariff in the sea—[Interruption.] No, that is a completely valid point to raise. I find that to be disrespectful of our sovereignty and our ability to govern internally.

--- Later in debate ---

[Beth Winter (Cynon Valley) (Lab)]

This Tory Government leadership said during the Brexit campaign that leaving Europe would enable the British people to take back control. This Bill does the opposite of that. It is driving a race to the bottom by harmonising standards in a way that gives the UK Government the power to overrule the devolved nations. Experience tells us that this Conservative Government have repeatedly refused to commit to higher standards in legislation, and there has not been negotiation, involvement or informed consent to any of this with the devolved nations.

While it is important, as the UK leaves the EU, for us to have a system to harmonise standards across the four countries, any internal market legislation should look to do the least possible on a centralised basis and as much as possible on a decentralised basis. In the view of the Senedd in Wales, there already exists a successful regime to form the basis for all future arrangements: the common framework.

This attempt to harmonise standards throughout the UK is, in fact, an attempt to replicate the EU’s internal market but with some crucial differences. In the EU, dispute resolution is independent and done in a way that prevents bigger members from being able to force smaller states to accept undesirable standards. Under the Government’s proposals for the UK, the opposite will be true, as the Conservatives prefer a mutual recognition principle of harmonising standards, so that the lowest standards legislated for by any of the UK Parliaments must automatically be adopted by all.

Devolution is not just an abstract concept. It has allowed the Welsh Government and the Scottish Government to develop more ambitious standards and policies than their Westminster counterparts, such as protecting the NHS as a publicly owned service and developing world-leading standards on food, animal welfare and the environment, which are now under threat from the Conservatives’ internal market Bill.

I am an environmentalist, and I have a great interest in reducing the use of plastics. The Minister for European Transition in Wales, Jeremy Miles, has spoken on this issue in the last couple of days. The Welsh Government propose to introduce a ban for nine single-use plastic items, but the UK Government propose a similar ban on just three of those nine items. The principle of mutual recognition in the UK could mean that Wales will be unable to enforce the ban on the sale of the other six items. The Chair of the Senedd Legislation, Justice and Constitution Committee, Mick Antoniw MS, has stated that it is clear from this Bill that the aim of the Tory Government is

“to cement their neoliberal economic and social agenda into the framework of a centralised… state”,

and that the Bill shows their

“contempt for devolution, the constitution and the rule of law”.

I agree with him.

Mutual recognition is a blunt instrument, and it is not clear why this path is the Government’s preference when it renders the notion of common frameworks completely obsolete at a stroke. The Government have previously supported a common frameworks approach. In fact, all four UK Government signed up to that in 2017, although it should perhaps not come as a surprise that the Government in Westminster are prepared to sign things in bad faith. Common frameworks would allow for a genuinely collaborative approach between Westminster and the devolved Administrations, with standards between the nations being harmonised through discussion and negotiation between equals—I stress that point: equals—as opposed to new obligations being imposed on the devolved Governments against their wishes under the new mutual recognition principle.

[Stephen Doughty]

My hon. Friend is making a very strong speech and getting to the nub of this issue. She has explained why we should be concerned about unilateralism. I share her concerns about food and environmental standards. We have also seen this with covid testing in recent days, including in her own constituency—unilateral decisions are being taken at a UK level to reduce testing in Wales, which is having an impact on our constituents. Does she agree that there is absolutely a reason why we are so concerned about the way that the Bill is being put forward?

[Beth Winter]

I do, and I thank my hon. Friend for his contribution.

Labour’s new clause 2 proposes a common frameworks approach. I will be voting for it, and I do not see a valid reason for any Member of the House not to do the same. New clause 2 supports the objective of the Bill—the creation of a UK single market to reduce barriers to trade—while still respecting the principles of devolution, which is supported by a strong majority of Welsh people. Diolch yn fawr.

--- Later in debate ---

[Alyn Smith]

Sir Graham, I will try to stick to the amendments. I was hoping for a point of consensus with the hon. Lady, but the lady is not for turning. I will stick to the matter at hand, if I may.

This chimera, this shibboleth is going to be created by this Bill. I have already explained the reality of how devolution works: unless reserved to this place, decisions should be made in Scotland. This shibboleth—with people not yet appointed, operating to a policy not yet decided, to a budget that has not been agreed, with a jurisprudence that does not exist—will sit above, as a politically appointed death panel, every single decision of every single public authority in Scotland, Wales, Northern Ireland and, indeed, England. Every decision involving public expenditure will be gainsaid by this unelected quango that does not yet exist, and we do not know what it is.

From our perspective, this is replacing a system that we are comfortable with. We respect the fact that we have left the European Union; we do not like it, but we have. A system that works tolerably well is going to be replaced with a system that does not exist. It is politically motivated, ideologically driven and owes nothing to the creation of jobs or safeguarding of jobs or standards. It is entirely a political project to get as much power to this place as possible against the objections of the Senedd in Wales.

[Stephen Doughty]

Does the hon. Member suspect, as I do, that appointed to this unelected body might be more chums of the Prime Minister of the likes of Tony Abbott—a disgraced former Prime Minister of Australia, a political appointment and totally unsuitable for the role, yet appointed because he shares the same political views as the Prime Minister?

[Alyn Smith]

I am very grateful for the point, and I very strongly agree. We do not know who these people are going to be. We do not know how they are going to be appointed and, forgive me, but from the track record of the Government thus far, I have little faith in who they are going to be and what their agendas will be in practice. Our concern is about the lack of power that the people of Scotland, Wales, Northern Ireland and, indeed, England will have over that process—and, indeed, this Parliament. The oversight that this Parliament will have over this process under the very text of the Bill, which is a wider discussion than these amendments, is appalling, but it did not need to be this way.

We heard earlier in the debate from some Conservative Members that there should be uniform standards across the UK. It is a superficially appealing point as superficial arguments go, which seem to be what Conservative Members deal in, but the single market within the European Union operates very successfully with different standards. The whole point of devolution is that different places are empowered to make different decisions, so there may well be different standards, different practices, different expectations or different rules in different parts of the four home nations. That is the point. This Bill is a mechanism—a political mechanism—to override and destroy that democratic diversity and replace it with devolution as power retained. It is a naked power-grab for all to see, and I would urge people outside this House to read the Bill carefully, because it makes the case for independence for Scotland all the stronger.

--- Later in debate ---

[Alexander Stafford]

I will clarify that I believe this organisation brings the parties together so that we can discuss and get through any issues that arise. Of course, there will be issues and differences of opinion, but this body allows us to talk in a good way. We have heard antagonistic rhetoric from many different parties on both sides of the House, but with this body, we will talk as equals.

[Stephen Doughty]

The hon. Gentleman spoke a moment ago about families. I believe in this family as well, and I believe in the United Kingdom staying together. The problem is that in families, without respect or communication things go pretty wrong. Does he think it was acceptable for the UK Government only to share the contents of the Bill with the Welsh Government the night before it was published? Does he think that that fosters the type of familial relationship that he so espouses?

[Alexander Stafford]

I do believe in respect, and I do believe in recognition. I also believe in respecting the will of the people. I think it is disgraceful that Members on the other side of the House come here and talk about respect when, over and over again, they have tried to thwart the will of the people on Brexit. I will take no lectures from such a party talking about recognition.

--- Later in debate ---

[Lucy Powell (Manchester Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Evans. I rise to speak to the amendments tabled in my name and the names of my right hon. and hon. Friends.

We have had some good contributions from colleagues from all parties in today’s discussion of the United Kingdom Internal Market Bill—or, as the Prime Minister now calls it after his roasting yesterday, the infernal market Bill. Let us hope that when the Minister rises to speak he is better briefed than the Prime Minister, although I have no doubt that he will be because, unlike his boss, he very much is a details man.

Before I address the substance of the amendments, I want the House to be clear on a few points. Labour wants the Government to get Brexit done and we want a strong internal market that respects devolution and protects high regulatory standards, but we will not fall for the Prime Minister’s attempt to rerun the Brexit arguments, and neither should the public. The Brexit issue is settled and the Government now need to get on and get the deal that they promised the British people at the general election.

The Prime Minister’s attempts to boost his falling poll ratings have failed. Brexiteer after Brexiteer has denounced this Bill; they clearly did not get the memo that opposing it was some kind of remainer plot, which it is not. We have had a roll call of the great and good—some not so good, but I will let Members decide—including Lord Howard and Lord Lamont, the right hon. and learned Member for Torridge and West Devon (Mr Cox) and the hon. Member for Gillingham and Rainham (Rehman Chishti), to name but a few. They have spoken out with courage because this Bill, in its current form, is not in the national interest.

Let me turn to the amendments. The central challenge that faced those drafting the Bill was how to square an internal market where goods can be sold across the UK with the fact that regulatory standards are devolved in key areas such as animal welfare, the environment, food safety and many others. There was an obvious answer, because since 2017 there has been a process of agreeing common frameworks—a joint approach to standards in the different devolved areas. The Government could have chosen to legislate for those common frameworks to make them the default option for regulation, thereby granting a proper voice to the devolved nations on the regulatory standards to which we have to adhere.

To be clear, that approach would have imposed a duty on all Governments to seek to establish common high standards. There would have needed to be an ultimate last resort in case the way forward could not be agreed on, at which point the UK Parliament would have needed to step in. That would have been the way to square the circle of the internal market and respect for devolution but, unfortunately, it is not the route that the Government have chosen. Instead, they have chosen non-binding common frameworks, up against what is in essence a Westminster veto, potentially leading to lower standards, with no guarantee of a voice for the devolved nations.

The Government say that they will still negotiate for common frameworks; that is welcome but it is not enough. If we do not put the process for common frameworks on a statutory footing, we undermine the very process itself, making the nuclear option of imposition more and more likely. Common frameworks without legislation are toothless. As time for regulations to be implemented becomes more and more pressing, and with the looming prospect of other trade deals and their inevitable call on UK-wide standards, we can see how things will play out, with the imposition of regulations via statutory instruments becoming the norm.

In line with getting Brexit done, there is now a huge repatriation of powers from the EU to the UK. The Government have a choice to make: do they want to respect and strengthen the devolution settlement by pushing power closer to people in communities, as promised in the referendum? Or do they want to retain all those powers here in Westminster? At best, the Bill is a missed opportunity to strengthen our Union; at worst, it threatens the future of the UK itself, giving—as we have heard today—the First Minister and the SNP all the grievances they need to turbo-charge their independence campaign. One has only to listen to the voices across our four nations to realise that, yet the Prime Minister and the Government have a tin ear.

A Front-Bench Conservative Member of the Welsh Assembly resigned because of the Bill’s disregard of and disrespect towards the nations of the UK. It is worth listening to what he had to say, which was that

“the Internal Market Bill has done nothing to lessen my anxieties about the dangers facing our 313 year old Union. Indeed they have been gravely aggravated by the decisions made in the last few days by the Prime Minister…I will feel it necessary to speak out against what I consider to be a lack of statecraft at this crucial time for the UK’s very survival”

as a multi-state Union.

[Stephen Doughty]

My hon. Friend is absolutely right to draw attention to those comments by a very honourable man, one of my constituents, David Melding, the shadow Counsel General, a lifelong and loyal Conservative with whom I disagree on many issues. However, he was pointing out the pattern of behaviour from the Government of disrespect for devolution. I have just been speaking to the First Minister of Wales, and he has been clear this is a pattern of behaviour in everything from covid testing to the situation regarding the Bill. Does she agree that the Government need to take a completely different approach if they want the UK internal market to work, as we do?

[Lucy Powell]

I absolutely do. My hon. Friend has made some powerful points today about the disrespectful way in which the Welsh Government were consulted over the Bill, and he is absolutely right to highlight those. I am afraid that, if that continues, that will not be good at all.

Labour firmly believes that the UK single market is the foundation stone of our Union and brings huge economic benefits to the entire UK. That is why we support the principle behind the Bill and why our amendments are so necessary to improve the Bill in Committee. The UK internal market will be essential in recovery from the coronavirus pandemic. We know that we need mutual recognition for our internal market to function coherently, and we believe that we should use this opportunity to drive standards up further.

Our amendments are about the way in which we arrive at those minimum standards, not whether minimum standards are required. The common frameworks programme has been in place since 2017 and has led to some extremely positive outcomes, even in policy areas as complex and contentious as food standards. I am grateful to the Minister of State, Cabinet Office, the hon. Member for Norwich North (Chloe Smith), for speaking to me last night about how the common frameworks programme is progressing. The Government and the devolved Governments should be commended for having established this collaborative forum. It could have proceeded with perhaps a little more speed and zeal, but we recognise the competing demands on the Government.

However, the Bill as it stands has the potential to undermine those processes entirely. On food standards, for example, where a common framework has already been agreed, if the Prime Minister were to pursue a free trade deal with the US, we may see chlorinated chicken imported into the UK and making its way on to Welsh, Scottish and Northern Irish supermarket shelves, irrespective of the standards that they have worked so hard to agree through the common framework.

However, it is not only about food. The Bill could have far-reaching implications for the country’s ability to reduce waste and meet our net zero targets. Wales, as we heard, has high ambitions to reduce single-use plastic items, but the UK Government have proposed a less ambitious target for England. It would be tragic if the UK Government imposed a lower standard on Wales, when we should all be working together to eradicate plastics and keep standards as high as possible and going ever higher. Instead, my fear is that the Government are firing a starting pistol on a race to the bottom for regulatory standards across the United Kingdom, which we do not want to happen.

New clause 2 sets out a process that would underpin the common frameworks approach in good faith and within reasonable time commitments and would put the common frameworks programme on a clear statutory footing. We propose that, where common frameworks are already in place, Ministers should not be able to unilaterally override them via secondary legislation to impose lower standards on devolved Administrations without their consent, as the Bill would currently allow. Where any frameworks are currently in development, or as any new common frameworks become necessary, Ministers would need to allow a consensus-based negotiation via the framework process within a reasonable timeframe before making any further intervention via Westminster. Only if an agreement could not be reached through this process would a Minister be able to intervene and protect the internal market.

--- Later in debate ---

Amendment 21 seeks to include a duty on the CMA to consult the devolved Administrations prior to publishing guidance on the exercise of its internal market functions. It is not necessary or helpful to put a duty to consult into statute. Across its existing functions, the CMA maintains constructive working relationships within all three devolved Administrations. Both the Government and the CMA itself believe that those relationships will continue to be vital in delivering new internal market functions.

[Stephen Doughty]

The Minister is doing his best job to front this up and to give some of the detail that the Prime Minister was not across yesterday, but does he not have the slightest bit of doubt when his own colleague, the legal representative on the Welsh Conservative Benches in the Senedd, David Melding, resigned saying that this Bill poses dangers to the Union and that those have been gravely aggravated by the decisions of the Prime Minister? When somebody of that standing has criticised the Bill in this way, does the Minister not have any qualms about what he is doing?

[Paul Scully]

That is why I am going through the clauses and amendments at Committee stage to keep the focus on what is so important—what businesses expect us to do. I will not go through all the clauses, for reasons of brevity, but I am happy to follow up with anybody who wants to do that as we go through the rest of the Bill’s stages.

Amendment 30 would require the Secretary of State to obtain the agreement of the devolved Administrations before the Secretary of State specifies the level of financial penalties in secondary legislation in cases of non-compliance with the information-gathering requirements of the CMA. I am happy to reassure the Committee that the Government are committed to not taking any steps to bring the financial penalties into effect by commencing the clause until there is clear and credible evidence that there is a need to do so to enable the CMA to fulfil its internal market functions under the Bill. The amendment would also require the Secretary of State to consult with other relevant persons before making the necessary regulations. I want to confirm that the devolved Administrations would be consulted as other persons the Secretary of State considers appropriate, so they do fit within that.

On new clause 2, we are committed to maintaining high standards across the UK. That is absolutely vital. There are effectively two strands of this debate: first, the devolved Administrations; and secondly, concern—understandable concern—about standards. We have said repeatedly that we are committed to maintaining high standards across the UK, so I am pleased to have the opportunity to set out how we are already working with the devolved Administrations to ensure that this will be done.

I thank the hon. Members for Nottingham East (Nadia Whittome) and for Cynon Valley (Beth Winter) for their passionate remarks in favour of common frameworks and the high standards that we have here in the UK. The new clause, though, seeks to fundamentally alter the nature of the common frameworks programme, the design of which was agreed by the UK Government and devolved Administrations in October 2017 at the Joint Ministerial Committee on EU Negotiations. The principles agreed made it clear that the common frameworks are based on consensus and are designed to establish continuing dialogue between the UK Government and devolved Administrations. This dialogue facilitates policy development in a range of policy areas where powers returning from the EU intersect with devolved competence.

My hon. Friend the Member for North East Bedfordshire rightly asked what underpins those common frameworks. Common frameworks provide an agreed approach to ensuring regulatory coherence across the UK in specific policy areas where powers are returning from the EU and intersect with devolved competence. The Bill, on the other hand, works alongside these common frameworks to provide a broader structural underpinning, and offers additional protections to the status quo of UK trade, ensuring certainty for businesses and investors in the form of a backstop—if I may say that—of regulatory coherence. The UK Government continue to work closely and constructively with the devolved Administrations. It would not be appropriate to create a legislative underpinning for UK common frameworks because this is about consultation, collaboration and working together with the Administrations rather than legislating to push them to do so.

In conclusion, in the debate we have had today, we started off with some misunderstandings about common frameworks—we have five frameworks coming before Christmas, including for food standards. We have talked about whether water and the national health service were at risk in Scotland, both of which are not within the scope of the Bill. This is really important: when one starts reading the Bill, one has to get to the last page, because that is where the schedule of exclusions is. It is important to do that, before we posture here in this House about something. As I say, businesses are crying out, “Do not do the politics. Let us trade across the UK.” That is what they are crying out for. That is what they want. So I hope that the amendments will be not be pressed and then we can get on with getting this Bill through the House.