Subsidy Control Bill (Second sitting)

Debate between Stephen Flynn and Robin Millar

Tuesday 26th October 2021 Public Bill Committees

[Robin Millar]

Q A final question, because I am really trying to get to the bottom of this point: would you be happier if the UK Government told you what to do?

Ivan McKee: No, I would be happier if there were clear rules for everybody across the UK that had been agreed with all parts of the UK, so that everybody knew exactly what that level playing field was, everybody knew what the rules were in advance, and there was a process for clarification before you took very important decisions about subsidies and economic development for very good reasons: to support businesses, industries, communities and parts of Scotland. I would be happy if we knew in advance that those things were clear and allowable, and if the Bill respected the powers of the devolved Administrations with respect to the devolution settlement.

[Stephen Flynn]

Q Thank you, Ivan, for coming along this afternoon. There are a couple of points that I wish to make, if I may. First, we heard this morning from Dr Pazos-Vidal, who said that the Bill is not reflective of the territorial constitution of the UK as it stands. This afternoon, we heard some comments from George Peretz QC that alluded to the wider discussion about the fact that BEIS could ultimately seek to invest in projects, be they in Wales, England, or indeed Scotland, and that those projects could have a consequence upon the devolution settlement—they could be at odds with the intentions of the Scottish Government. Do you believe there is an issue there, given the fact that, ultimately, it will be only BEIS that has the ability to refer such matters to the CMA? Do you believe that the Scottish Government, along with the Welsh Government and the Northern Ireland Assembly, should have the ability to refer such matters, should they feel that those matters impinge upon devolution and they want to challenge the situation as it stands?

Secondly, I would be grateful if you could expand upon your concerns in relation to agriculture, because I know it has been spoken about at length.

Ivan McKee: With regard to your first point, yes, of course that is a concern. It is lopsided, it is asymmetrical and it gives BEIS powers in devolved areas that it does not give to the devolved Administrations. Those are, to say the least, problematic with regards to devolved Administrations operating in areas of devolved competency. That is clearly of significant concern. I did not hear all the earlier evidence—I dipped in and out of some parts—but I am aware that those comments you referred to were made, and that does support the view that we have. It is not just ourselves: the Welsh Government and, I believe, the Northern Ireland Executive also have concerns regarding the powers that the Bill gives to the Secretary of State in devolved areas that are not reflected with equivalent powers for Scottish Government Ministers.

With regards to agriculture, our concern is that income support mechanisms for agriculture that would have been outside the scope of an EU subsidy control regime are inside the scope of the Bill, which raises concerns about the extent to which we can apply such income support mechanisms within the agriculture sector in Scotland, and of course elsewhere. That is a concern for us: we believe that agriculture should be excluded from the Bill, and I understand that an amendment could be coming forward with that objective in mind.

Subsidy Control Bill

Debate between Stephen Flynn and Robin Millar

2nd reading
Wednesday 22nd September 2021 Commons Chamber

[Stephen Flynn]

That is an entirely fair and accurate point.

[Robin Millar]

From the Opposition Benches this afternoon, we are hearing a lot about asymmetry. In particular, we are hearing about a lack of involvement and so on. I will not make any points about sovereignty—I do not wish to go down that road—but I will make a simple observation and perhaps the hon. Gentleman can comment on it. Was that not the case when we were a part of the EU? We were directed into things. We did not have the same control he seems to think that they should have now.

[Stephen Flynn]

The hon. Member makes his point in his own way, but let me be clear. How can I put this? We do not think that the system that operated within the EU was one that we should have turned our back on. What did we turn our back on it for? Let me answer that briefly, as a slight anecdote: it was for Brexit—the chaos of Brexit. Food shortages, staff shortages, trade barriers, the chaos that we see—

[Robin Millar]

Will the hon. Gentleman give way?

[Stephen Flynn]

The hon. Member has had his say, and I am sure that he will make further contributions later.

Conservative Members come to this Chamber and tell us that Brexit will solve everything, but of course it has not; it has only made things worse for working people in our society. What we have before us, in no uncertain terms, is a Bill that undermines devolution, following on from the United Kingdom Internal Market Act 2020 and the shared prosperity fund. If they want to protect their Union, they are doing a damned good job of destroying it. Do some more!

--- Later in debate ---

[Robin Millar (Aberconwy) (Con)]

Thank you, Madam Deputy Speaker. I sense a restlessness among colleagues, so my comments will be brief, and the moment we are all waiting for, when the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), gets to his feet, will be upon us shortly.

It is a pleasure to follow the right hon. Member for East Antrim (Sammy Wilson). Northern Ireland is a part of the United Kingdom, and it is only right and proper that UK law and a UK subsidy regime must prevail in that part of the United Kingdom. I hope, indeed, that they will be rejoicing on the streets. My understanding is that the Government have, in effect, made it clear that article 10 of the protocol is redundant, given that the subsequent trade and co-operation agreement establishes a framework of mutual recognition of state aid rules, with which the Bill complies. Perhaps the Minister will clarify that in his remarks.

I want to make a point about how the Bill supports devolution. We have heard Opposition Members refer—not universally, but on a couple of occasions—to how the Bill damages devolution. There is much that could be said about the gaps between the way the world is viewed by Opposition Members and the way it is viewed by Government Members, but one such gap has come through during this debate in the constant references to things that are missing. I suggest that that gap indicates different ways of looking at things: while Government Members are happy to set down principles within which business can flourish and prosper, it seems to me from the comments made today that Opposition Members are looking for a high degree of prescription about what can and cannot be done. Those are different ways of looking at the world.

Let me make it clear that I am a supporter of the principles behind devolution. I want to draw out three principles in particular: local leadership, broader accountability and shared prosperity. Sadly, the first, local leadership, has never really been fully realised in north Wales. To us, devolution has led to decision-making powers flowing south to Cardiff bay. In Scotland, too, we have seen a centralisation of powers, with decision-making powers drawn from the regions to Holyrood and reserved to the Government there.

As just one example—I could give many—we saw that in the disbursal of EU funds. Only 9% of EU funds spent in Wales made it as far as local authorities for decision making; the majority were decided on and spent from Cardiff bay. England has its own problems and challenges in this area, but, by contrast, the figure in England was 36%: four times as much money and decision making flowed out into the local authorities and the regions from Westminster. That is a telling tale, because the sense in north Wales is still that Cardiff is distant and remote—accusations that are typically laid against this place. The Bill will help to address that and give local authorities and even the devolved Administrations freedom to set up targeted, effective and practical schemes in their area.

I must say, though, that something has changed in the air in north Wales since the arrival of this Government in Westminster. The sense of alienation is starting to evaporate. Those who know the area of the world I am talking about will know that in the Conwy valley and Aberconwy, the morning mists start to roll down the valley at this time of year, and they are starting to evaporate now thanks to the Government’s involvement.

There is much that I could say about how the United Kingdom Internal Market Act 2020 has changed things, but I will not, for reasons of time. I will say, though, that the prospect of inbound UK Government funds has rapidly mobilised my own council, Conwy County Borough Council. It is engaging with communities and leaders on their thoughts and plans for delivering change, and I am grateful for the support and engagement of its leader, Councillor Charlie McCoubrey, and the economy portfolio holder, Councillor Louise Emery. For my part, I have been meeting local councils, organisations, residents and business leaders in the community to seek their thoughts and advice, and there is no shortage of them.

The second principle that I would like to draw attention to is accountability. I welcome the universal reporting database being introduced through clause 33. My hon. Friend the Member for Weston-super-Mare (John Penrose) gave a tour de force on the benefits of the transparency that it will bring and even prescribed fresh air and sunshine to bring benefits to businesses.

The different reporting systems that exist in different parts of the UK have often clouded transparency and obscured comparisons. Wales and Scotland have different reporting regimes in many different areas—we have heard reference to patient waiting lists—and during the pandemic we have seen different local responses only causing further confusion. Key universal systems avoid such inconsistency, and the database provided for in the Bill will be one of those. They allow for public transparency and comparable information about how money is being spent in the UK.

[Stephen Flynn]

Will the hon. Member give way?

[Robin Millar]

I will, as the hon. Gentleman gave way to me.

[Stephen Flynn]

I thank the hon. Member. He said at the start of his speech that he respected devolution and believed in the principles of devolution, yet throughout his speech all he has done is criticise it, to the point where he is now criticising local authorities in Scotland. Far be it from me to defend a Tory-led local authority in Aberdeen, but why is he criticising local authorities, and how does that marry with his support for devolution?

[Robin Millar]

I thank the hon. Gentleman for his intervention, but I am not sure what he was listening to. Not one word of criticism of local authorities has passed my lips. I was explicit in starting my speech by addressing the principles of devolution. I suspect that he may be confusing the principles of it with the practice of it that he sees in Scotland. Accountability is important, and it has been allowed to slip, but I believe that the Bill addresses that by supporting and encouraging it.

The third and final principle that I want to mention is shared prosperity, which the Bill will support. Aberconwy has seen an impressive recovery from the pandemic, and according to some reports Llandudno has experienced the fastest recovery of any town in the UK. I pay tribute to those who are working so hard in their businesses, from Glenn Evans and his team at the Royal Oak in Betws-y-Coed to Clinton and his team at the Blend coffee shop on Clonmel Street in Llandudno. Right across Aberconwy, it is people like them who make that economic recovery a reality. We owe them a debt of thanks and gratitude for their hard work—it is not we in this place but they who make the difference, and I am grateful to them for it. The prospect of additional funds and subsidies coming their way—coming our way, into Aberconwy, directed by local leaders and businesses—provides the potential to capitalise on that endeavour, help economic recovery and bring forward the promise of a locally delivered prosperous future.

Of course, there is much to do. Other principles set out in part 2 of the Bill ensure that our internal market operates freely and without hindrance, avoiding the subsidy race that has already been referenced between different parts of the UK. Other parts of the Bill reduce bureaucracy and—again, I make this point—enable decision making by devolved Administrations in a targeted and effective way, faster and in a way that they could never do before.

Finally, I support the Government’s hopes for the Bill that it will enable a thriving competitive economy and, in north Wales, lead to the kind of investment that we want to see in renewable energy, road, rail and broadband connectivity, and, I hope, even a freeport. It is because I believe the Bill delivers on the principles of devolution and makes possible a prosperous future in Aberconwy that I will be voting in support of its Second Reading.