United Kingdom Internal Market Bill

Baroness May of Maidenhead Excerpts

Monday 21st September 2020 Commons Chamber

[Mr Walker]

The hon. Gentleman raises some important points. It is for the Secretary of State for Business, Energy and Industrial Strategy to use the powers in the Bill to take further steps in setting out the UK’s state aid policy. As the hon. Gentleman will recognise, the UK also has a policy on free ports, which we absolutely want Northern Ireland to be part of, so perhaps that is for future debates.

Let me be clear: the Government’s position is that EU state aid rules will apply in Northern Ireland as long as the protocol is in place in respect of goods and electricity, as agreed, but we have to give businesses the certainty that they will not face the destabilising prospect of the European Commission applying its state aid rules to companies in Great Britain with no link, or only a trivial link, to Northern Ireland. The power in the Bill allows the Business Secretary to make provision for how article 10 is to be interpreted for domestic purposes.

[Mrs Theresa May (Maidenhead) (Con)]

My hon. Friend has been setting out throughout his speech that the Government want clauses 41 to 45 because of the bad consequences that could come from an interpretation of the withdrawal agreement. If the potential consequences of the withdrawal agreement were so bad, why did the Government sign it?

[Mr Walker]

As my right hon. Friend knows well, the withdrawal agreement was negotiated by the UK and the EU and agreed with a view that certain elements would be resolved by the Joint Committee. I think there was a reasonable expectation on both sides that the Joint Committee would have made more progress on those issues, but unfortunately we have heard some harmful interpretations over the past few months. The point of these Government clauses is to ensure that we can rule those out and put in place the appropriate legal default.

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[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

Order. Let me remind the House one more time that there is a very long call list, so please show time restraint when making contributions.

[Mrs May]

It is with some regret that I rise to speak on clauses 41 to 45. May I just say to the Minister that the overall intention of the Bill—of ensuring a functioning internal market within the United Kingdom—is absolutely right? I believe passionately in the integrity of the United Kingdom. It is not just a belief; I think it is good for the prosperity of all parts of the United Kingdom.

Today, we are focusing on the parts of the Bill that relate to the Northern Ireland protocol, part of the withdrawal agreement—the withdrawal agreement that was signed by my right hon. Friend the Prime Minister less than a year ago. I can say to the Minister that, in my view, clauses 41 to 45 have no place in this Bill. We are told that they are there because the EU either is acting in bad faith, or might act in bad faith. This is because the withdrawal agreement put a border down the Irish sea and the Government cannot accept that—but the Government did accept that when they signed the withdrawal agreement with the European Union, and I assume that, when they did so, the Government signed that in good faith. Yet here we have clauses 41 to 45 saying that the Government should have the ability to renege on parts of the withdrawal agreement to break international law.

There are three reasons why I believe that these clauses have no place in the Bill. The first, which has been referred to in earlier interventions, is that it is unnecessary. There is an arbitration process available. Under article 175, the ruling of the arbitration panel should be binding on the UK and the EU. The Government have acknowledged the existence of the arbitration procedure, but they are saying that they would enter into that in parallel with the operation of the elements of this Bill. The message, it seems to me, is very clear, which is, if we do not like the outcome of the arbitration panel, then we will break international law and we will not accept it. Yet, again, that is breaking the international treaty—an agreement that UK Government signed—because it is breaking article 175, which says that the view of the arbitration panel shall be “binding” on both parties. However, there is not just an arbitration process available. As the right hon. Member for Leeds Central (Hilary Benn) referred to, article 16 says:

“If the application of this Protocol leads to serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade, the Union or the United Kingdom may unilaterally take appropriate safeguard measures.”

Clauses 41 to 45 are not necessary.

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[Sir William Cash]

Will my right hon. Friend give way?

[Mrs May]

I have to say to my hon. Friend that I wish I had £10 for every time I have given way to him in a debate or a statement over the last few years, but I will give way to him on this one occasion.

[Sir William Cash]

I am most grateful to my right hon. Friend. Is she aware that the EU itself and indeed many other states throughout the world, including many democratic countries, have persistently broken international law, and that this applies not only to other countries, but to the United Kingdom? There are many overrides of international treaties by the UK itself.

[Mrs May]

Let me get this right. My hon. Friend seems to be saying, “If somebody else does something wrong, it’s okay for us to do something wrong.” I am sorry, I do not agree with him on that point.

I recognise that my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) has taken every effort to ameliorate the impact of these clauses, and the Government have accepted and put down their own amendment. But, frankly, my view is that to the outside world, it makes no difference whether a decision to break international law is taken by a Minister or by this Parliament; it is still a decision to break international law. This can only weaken the UK in the eyes of the world. One of the great strengths we have as a country is our commitment to the rule of law, and this will have been damaged. Our reputation as a country that stands by its word will have been tarnished, and the willingness of other countries to trust the United Kingdom and its values will have been reduced. So much for global Britain!

In 2018, when Russian agents used a chemical weapon on the streets of Salisbury to attempt to murder Sergei and Yulia Skripal—a nerve agent that led to the death of Dawn Sturgess and affected her partner, Charlie Rowley—I led the action. I called on our friends and allies to stand alongside the United Kingdom, and I led the action that resulted in 29 countries expelling an unprecedented 153 Russian agents from their borders. We were able to do that because those countries had trust in the United Kingdom. Where will that trust be in the future if they see a United Kingdom willing to break its word and international law?

If we pass this Bill with clauses 41 to 45, and in so doing accede to the Government’s wish to break international law, I believe it will have a detrimental effect on people’s trust in the United Kingdom. As the United Kingdom negotiates trade deals around the rest of the world, why should anybody we are negotiating with believe that we will uphold what we sign up to in those agreements if we have said clearly, “If we don’t like it after we’ve signed up to it, we’ll break it”?

This is a country that upholds the rule of law. That is one of the things that makes us great; it is one of our characteristics. We propound and uphold the rule of law around the world. The Conservative party upholds the rule of law—it is one of our values and characteristics—yet we are being asked to tear up that principle and throw away that value. Why? I can only see, on the face of it, that it is because the Government did not really understand what they were signing up to when they signed the withdrawal agreement.

My right hon. and learned Friend the Member for Torridge and West Devon described the Government’s action as unconscionable. As has been said, Lord Keen resigned because he said that he found it increasingly difficult to reconcile his obligations as a Law Officer with the Government’s policy intentions. Frankly, I find it difficult to understand how any Minister can go through the Lobby to support these clauses.

I consider that, in introducing clauses 41 to 45, the Government are acting recklessly and irresponsibly, with no thought to the long-term impact on the United Kingdom’s standing in the world. It will lead to untold damage to the United Kingdom’s reputation and puts its future at risk. As a result, with regret I have to tell the Minister that I cannot support this Bill.

[Kirsten Oswald (East Renfrewshire) (SNP)]

It is a privilege to follow such a thoughtful and considered speech.

I rise to speak to amendments 31 and 32, in my name and the names of my colleagues. They require that the definition of terms used in clause 45 be determined only after an impact assessment of the UK Government’s obligations under international law has been carried out. I am also happy to speak in support of the amendments tabled by my hon. Friends from the Alliance and the SDLP, and I look forward to further debate in Committee.

The SNP rejected the Bill on Second Reading because we will never support legislation that breaks international law—I am not actually sure why I have to say that. Our amendments seek to ensure that this Parliament understands the impact on its international obligations of any future decisions that it takes on the matters covered by the Bill. The UK Government have presented a Bill that not only threatens a breach of international law—a position that now seems to satisfy many Conservative Members—but was in itself a monumental act of bad faith that speaks volumes about their view of themselves and the world around them.

Last October, speaking about his withdrawal deal, the Prime Minister said:

“if we do this deal—if we pass this deal and the legislation that enables it—we can turn the page and allow this Parliament and this country to begin to heal and unite.”—[Official Report, 22 October 2019; Vol. 666, c. 826.]

The range of the amendments to this section of the Bill alone make it clear—not that we needed the clarity—that healing and unity can hardly be described as the highlights of his leadership.

In November 2019, the Prime Minister said:

“Northern Ireland has got a great deal. You keep free movement, you keep access to the single market”.

The Minister spoke about the Conservative manifesto, but it and the Conservative campaign boasted of the Prime Minister’s oven-ready deal. The Prime Minister was effusive in his support of the deal, calling it “very good”, “excellent”, “fantastic” and “wonderful”, but here we are, and he has changed his tune: far from his deal being oven-ready, it is now only fit for the cowp.