United Kingdom Internal Market Bill

Stephen Farry Excerpts

Consideration of Lords amendments & Ping Pong & Ping Pong: House of Commons
Monday 7th December 2020 Commons Chamber

[Paul Scully]

I can indeed.

Part 5 of the Bill contains vital provisions to ensure that this will always be the case, whatever the outcome of our negotiations within the EU. Since these clauses were originally introduced, the UK and EU have worked constructively together through the withdrawal agreement Joint Committee discussions, which continue to progress, and final decisions are expected in the coming days. I can confirm today that if the solutions being considered in those discussions are agreed, the UK Government will be prepared to remove clause 44, concerning export declarations, from the Bill. The UK Government would also be prepared to deactivate clauses 45 and 47, concerning state aid, such that they could be used only when consistent with the United Kingdom’s rights and obligations under international law.

[Stephen Farry (North Down) (Alliance)]

I wonder whether the Minister could reflect on two points. First, I am relatively new to this place, but my understanding is that there has not been a bigger vote in the other place against a proposal from this House for many decades, if not centuries. Secondly, does he recognise that the majority of people and businesses in Northern Ireland want to see the solutions he set out work through the Joint Committee and not through any breach of international law? It is important that there should be a solid legal framework to enable businesses in Northern Ireland to conduct their affairs.

[Paul Scully]

Indeed, we all want this to be dealt with through the Joint Committee. That is why the discussions are continuing, and that is why, in these crucial hours of negotiations between the UK and the EU, we wish them well in that regard.

--- Later in debate ---

I was struck by what my hon. Friend the Member for South Ribble (Katherine Fletcher) said about the practicalities of this. The United Kingdom needs to be ready for whatever the outcome of these negotiations is. We hope for, we expect and we are working towards achieving a deal that is in the mutual interest of all concerned. In the event that that breaks down—as many have commented, that would involve breaches of good faith and potentially of the law on both sides—we need to be ready to ensure, in exactly the way that our friends and allies in the European Union are, that we have the arrangements and powers in place to deal with whatever consequences might come our way. That is why I believe that the Government are taking the right course and I intend to support these measures and vote against the Lords amendments this evening.

[Stephen Farry]

I want to focus largely on the Lords amendments to part 5 of the Bill and to speak in support of them. I am conscious that we may well be part of a charade this evening, in the light of discussions that are happening elsewhere, but it is surely self-evident that no deal with the European Union can be concluded, let alone ratified, if the offending clauses remain part of the Bill. If we end up with a no-deal situation—I very much hope that we do not—the UK will face huge economic damage and will be forced back to the negotiating table. I think most people privately would recognise that that is the reality. Once again, these issues will have to be addressed and overcome.

Since this House last debated the Bill, we have had the very welcome election of Joe Biden as President of the United States. It is clear that there is no prospect whatsoever of a trade deal with United States if there is any threat to the Good Friday agreement, in particular from this Bill or, indeed, the subsequent taxation Bill that may well follow. Obviously, that is of fundamental importance to the UK going forward. I think that the Biden Administration will be very much open to a deal with the United Kingdom, but that will not come at the price of undermining the Good Friday agreement, which Americans of both parties are extremely proud of in terms of their role in and contribution to. The internal market Bill is not helping those negotiations at all. At best it is a distraction from them, and certainly not a source of leverage, but at worst it gives the indication that the UK cannot be trusted with regard to agreements. In particular, if there is a sudden deadlock around issues of governance, the European Union will be very reluctant to give too much in that respect, given the very sad precedent that has been set. Again, the UK is shooting itself in the foot in terms of crucial negotiations.

I want to stress that the majority of the people of Northern Ireland, the majority of Members of the Northern Ireland Assembly and the majority of businesses in Northern Ireland do not want the UK breaking, or threatening to break, international law on their behalf. The outcomes from this Bill are of course very seductive, but they represent a false solution. The only way to address these issues is via the withdrawal agreement and the Joint Committee on the Withdrawal Agreement. To achieve these flexibilities and derogations, we must again look to that word “trust”, which is again being undermined by these actions. That will make it more difficult to reach a conclusion through the Joint Committee processes.

Breaking international law may give some short-term relief to businesses, but it actually ends up hurting them because it puts them in the situation of not having a secure legal environment in which to do business going forward. That is of fundamental importance to businesses. It also potentially risks the return of a border on the island of Ireland. I know that some people want to dismiss that, but the difficulty comes from the fact that if there is not a guaranteed alternative system via the protocol, the pressure from the EU to protect the integrity of its customs union and single market falls back on the island of Ireland. That is one of the key concerns in terms of how the Good Friday agreement may well be breached through this Bill.

Some people seem to think that everything can stay the same as regards how things operate across these islands. The difficulty is that this reflects the choices made by the UK and its Government around Brexit and the nature of Brexit. Northern Ireland is a different place, and because of those choices special arrangements have to be put in place. The backstop was a better alternative, but the protocol is where we have landed, warts and all in terms of the negative consequences from that.

[Alan Brown]

Yet again we have been reliant on the Lords to try to remedy matters in this Bill, which from the outset has shown a complete disregard both for the rule of law and for devolution. The fact that the Government are going to overrule the Lords amendments tonight prompts the question: what is the point of the Lords even when it is doing good work?

In this Chamber, right from the outset of the debates on the internal market Bill, we have been treated to Back-Bench Tories standing up and telling us that they are proud Unionists. However, saying that they are proud Unionists wedded to the idea of the United Kingdom and the Union jack while supporting a Bill that rides roughshod over devolution shows that they do not really care about the Union, and they do not care about Scotland, or understand Scotland. That goes for the Prime Minister, in particular. We know that the Lords has Unionists, and the Lords has told the Government that this Bill puts the Union at risk. Are the Government and their sycophants wilfully stupid or just naturally stupid, because they are certainly not listening?

I want to focus on Lords amendments 48 and 49, which aim to delete the clauses with the same numbers. This is the real power grab about spending in Scotland. Lord Hope summarised the debate:

“It is difficult to avoid the conclusion that this Government regard devolution as an inconvenience”.—[Official Report, House of Lords, 18 November 2020; Vol. 807, c. 1468.]

As a matter of balance, I will quote Lord Forsyth, who reckoned:

“The…Act of Union…has brought about more than 300 years of prosperity.”—[Official Report, House of Lords, 19 October 2020; Vol. 806, c. 1323.]

If the Union has been so successful and brought so much prosperity, why are this Government having to embark on a levelling-up agenda? Why do Scotland and other regions around the UK have to rely on EU structural funds to plug the gaps from Westminster over the years? Incidentally, the EU has never imposed a single project on Scotland against its will, whereas this Bill allows the Government to create projects and spend money against Scotland’s will. Where is the shared prosperity fund anyway? Sadly, it is missing in action.

If the Union was so successful, why are this Government legislating for support for cultural activities, projects and events that Ministers consider benefit the UK and devolved nations? The same goes for sport, education and training activities. What kind of education projects do they want to impose in Scotland? Why do they think that that should be in the Bill in the first place? It is clear that they want to subject us to a Union jack fest, but I can tell the Minister that that will not go down well in Scotland either; actually, it will help our cause.

We have also been told that infrastructure spending will mean additional money coming to Scotland, yet when we look at the spending review we can see that we have just suffered a 5% cut to our capital budget. It is quite clear that that the Government will top-slice the Scottish budget, take some money off and then recirculate it in Scotland with a Union jack. It is so transparent, and the fact that the national infrastructure policy says that the Bill allows the Government to spend directly in the devolved nations tells us that it has been planned all along.

The consequential clause 49 remains a complete affront. Basically, the UK Government can interfere and spend money in Scotland on projects that might not be wanted by the Scottish Government, and clause 49 then allows them to impose repayment conditions on the taxpayers in Scotland. That is ridiculous—it is a con. Any Scottish Tory who argues that this is not a power grab and who thinks that these conditions are acceptable must be completely devoid of self-respect.

Lord Dunlop, a former Scotland Office Minister, said:

“I hope the Government will think long and hard before overturning in the Commons, on the back of Conservative votes alone, any sensible changes”—[Official Report, House of Lords, 2 November 2020; Vol. 807, c. 585.]

There is no long and hard thinking being done on the Government Benches, but there is by the people of Scotland. Those who voted no in 2014 are changing their minds rapidly, because they know the contempt with which this Government treat Scotland.