United Kingdom Internal Market Bill

Tim Farron Excerpts

Tuesday 15th September 2020 Commons Chamber

[Christine Jardine]

Yes, I support the devolution amendment, and yes I believe, as I will come on to explain, that this is all about the devolution settlement, which is a very different thing from independence.

How often did right hon. and hon. Members listen to me and my colleagues warn the Government they were heading to exactly where we are now? As I said earlier, I fully accept we need a framework by which the powers that were vested in Brussels and are now returning to the UK will work for every part of this country. We need a Bill that does precisely that, but, Sir Graham, this ain’t it.

I cannot understand why the Government, in forming this Bill, did not stop for a minute and listen to the many voices urging them to be more conciliatory—to look, for example, at measures such as those that my Liberal Democrat colleagues and I have proposed: to appoint Ministers from the devolved nations to the CMA and be inclusive. But the Government did not listen to us, especially when we warned about the dangers of the withdrawal agreement to the Good Friday agreement, which everyone in the House should regret. Please listen to us now when we say that this approach—this Bill, these steps—do not respect the spirit of that agreement or the devolution settlement.

I appreciate, possibly more than many, that the devolution settlement is something that Conservative Members, particularly those from Scotland, were not comfortable with 20 years ago, but even they have surely learned to love the enthusiasm, commitment and benefits we have seen in Scotland, and I am sure in Wales, and the great changes brought about in Northern Ireland by devolution, and in London. We have come so far since the turn of this new century in devolving power in this country closer to the people most affected by it. It would be dreadful if this Bill—this attempt to allow us to trade more smoothly—were to undermine it, but I fear that that is exactly what it will do.

In supporting amendments tonight, I appeal to Government Members, many of whom have sat—and one or two of whom are aiming to sit once again—at Holyrood. I am confident that they cherish as much as I do what we have achieved for Scotland in Scotland as part of the United Kingdom, in Wales and, most importantly, in Northern Ireland, where we have peace for the first time in my lifetime. I disagree fundamentally with my colleagues on the SNP Benches about independence and where Scotland should be heading, but I cannot disagree with their anger at the lack of respect for ourselves, our Parliament and others across the United Kingdom.

I do not believe that that is what the Conservative and Unionist party truly believes or wants. I want to believe it was not what it intended when it opened this constitutional and legal can of worms, but we need more than words and platitudes about how it will be fine and it is all about trade. We need Conservative Members to stand with us and say to the Government: please respect our Parliaments, the will of the people across the country and the rule of law. If they will not abandon the Bill, I ask them please to accept the amendments, because that is the only way to respect and protect the United Kingdom.

[Tim Farron (Westmorland and Lonsdale) (LD)]

It is a great honour to serve under your chairmanship, Sir Graham, and to follow the speech of my hon. Friend the Member for Edinburgh West (Christine Jardine).

The Bill claims to be about unity based on the pillars of mutual recognition and non-discrimination; in reality, unamended, the Bill is something quite different. It will enforce the lowest common denominator in goods and services across the United Kingdom. There is such a focus on the fear of letting in through the front door chlorinated chicken or whatever other emblem of lowered standards there might be from a trade deal with the US or anywhere else. This Bill unamended is the route through the back door to lowered standards, whether it be for farmers, in retail or in manufacturing.

What is the value in consistency if it leads to the lowest possible standards, and how do we ensure the integrity of the Union and the dignity and, indeed, sovereignty of Scotland, Wales, Northern Ireland and England as we consider how to regulate these deals? We have in front of us the proposal for the Office for the Internal Market, which looks to be utterly toothless, in effect. At the apex of its terrifying range of powers is the ability to launch investigations and to deliver written statements—and that is it. That is the entire arsenal for the devolved nations to protect their standards of goods and services, while those nations will not be around the table making the decisions in the first place.

If the Government think this is a Bill about creating a united front, they are completely and utterly deluded. Rather than finding unity and a common position between the nations of the UK, this set of proposals in reality drives a deeper wedge between them. Like my hon. Friends who spoke before me, that fills me not with joy in the anticipation of another bite at the cherry of independence, but with complete and utter dismay. It should fill Conservative and Unionist MPs with utter dismay, and I am bewildered that it does not.

The problem is that the Government voted for and the Prime Minister signed a withdrawal agreement that he knew—he must have known—was a trade-off between a border separating Northern Ireland and the Republic and a trade border in the Irish Sea. One threatens the Good Friday agreement and the other threatens the very existence of the United Kingdom. There was never a third option: there was no Malthouse compromise and nothing else was on the table. It was all guff, and I pity any Tory candidate who fell for it.

It was a border between Northern Ireland and the Republic or a border between Ireland and Great Britain, and the Prime Minister made a choice, but now he says he does not like his choice, or he did not understand his choice, or it is all the fault of the nasty foreigners. But we have discovered in the last few days, as have millions of people who voted in good faith for this Government last December, that Brexit is not done: it was never done. Either the Prime Minister did not understand what he was signing, or he said a thing, indeed a series of things, that was not so. On this also, there is no third option.

More than 20 years ago, as has been said, this country rightly moved towards devolution to empower Wales, Scotland and then Northern Ireland. To their great shame, the Labour Government at that time did not do go further in empowering the regions of England also. Of course, the devolution that did happen at the time was opposed by the Conservative party in opposition, but in time it grew to accept the new devolved nature of Government in these islands, because—guess what?—proportional representation gives it seats in Scotland.

If on issues where the devolved Administrations have competence this Government force them to submit to whatever standards they decide on in the guise of unity, all we are doing is enforcing the lowest common denominator. We will not be levelling up; we will be forcibly levelling down. The Government will be sticking up two fingers at devolution.

This is a significant threat to the Union. I am waiting and waiting for the moment when Conservative and Unionist party Members will grasp the second part of their name and their mission. The current Conservative leadership deems this Bill to be just another convenient trench in the culture war. I implore Conservative MPs to take back control of their party before it is too late and we lose our country, for then there will be no Union for us to be Unionist about.

In South Cumbria, I am 50 miles from the Scottish border. I have no desire to live 50 miles from a foreign border—not in my lifetime, nor in my children’s or grandchildren’s lifetimes.

There are both practical and emotional reasons why this Bill is the worst thing to come to this House in the 15 years that I have been a Member of Parliament. Cumbria does not have a more important internal market than our relationship with south-west Scotland. It is a porous border, not even recognised by many: people work on one side of the border and live on the other; they go to school on one side and visit their GP on the other. Sheep reared in Cumbria are sold in Scotland. Cattle reared in Scotland are sold in Cumbria. Farmers dependent on common standards on both sides are about to see those standards undermined. Our farmers, across all nations, are to be sold down the river. Every poor decision, every compromise will sow more seeds of discontent in the devolved nations, playing into the hands of those who are desperate to split us asunder.

--- Later in debate ---

[Richard Fuller]

If I may, I will pick up on something that the hon. Gentleman has said. Many speakers on the Opposition Benches have also said this. They talk about the race to the bottom with regard to regulations. Please will he indicate where he sees any of that deregulatory zeal in this Government? I would like to see some deregulatory zeal. The truth of the matter is that, historically and certainly in recent years, the pattern of regulation of markets, whether in Scotland or in the rest of the United Kingdom, is for more and higher regulation. That is the story. The Government want to continue to maintain high standards. Where can he point to, so that I can see all these things that he is waving around as something we should be fearful of?

[Tim Farron]

I am grateful to the hon. Gentleman for his intervention. We should be aware that, on top of the desire politically for greater regulated markets, which I absolutely welcome, there is also a desire to maximise profit. What do we do when we are trying to maximise profit? We reduce costs. What are regulations? Well, sadly, they often involve more costs. One of the benefits of the European Union is that we lock ourselves in to an understanding that there are common rules. If, within the United Kingdom, we create an in-built incentive for one part of the United Kingdom to reduce its standards and therefore automatically drag down the standards of the other three parts of the UK at the same time, we have made this possible. Indeed, I argue that, thanks to the laws of free-market economics, we have made it more than likely—we have made it almost certain.

The Competition and Markets Authority should be representative of all the nation. There needs to be unity in the decisions and not just in the implementation of the conclusions. I am afraid for the future of our United Kingdom. Do this Government want to be the Administration responsible for the disintegration of our Union, whether by negligence or design? That is where they are taking us. This Bill, through its inherent relegation of the importance of devolution, is a colossal step—a witless step even—towards undermining the unity of the Union. This Government have taken us out of one Union. We will not let them wreck another, which is all the more precious even than the one that we have left.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

It is a pleasure to serve under your chairmanship, Mr Evans. I would like to thank all Members who have spoken today. Before I proceed to discuss part 4 in some detail and the amendments that have been tabled, I want to put the Bill into context, so that we can see where it sits. I would particularly like to thank my hon. Friends the Members for Stone (Sir William Cash), for Rother Valley (Alexander Stafford), for Hertford and Stortford (Julie Marson) and for Beaconsfield (Joy Morrissey) for their support of the Bill. This is an economic Bill to ensure that UK companies can trade unhindered in every part of the UK, and their focus on the core issue of ensuring that free trade must be commended.

The United Kingdom’s internal market has been the bedrock of our shared prosperity for centuries. It has enabled businesses and individuals to thrive and has been the source of unhindered and open trade across the country. It has helped to demonstrate that, as a Union, our country is greater than the sum of its parts. The economies of our four nations within one United Kingdom are forged as one. Around 60% of Scottish and Welsh exports are to the rest of the UK, which is around three times as much as the exports to the rest of the EU. About 50% of Northern Ireland’s sales are to Great Britain. In some local authorities in Wales, over a quarter of workers commute across the border. So when we leave the transition period at the end of this year, and the laws made in Europe can now be made across the UK, hundreds of powers will flow from the EU to the devolved nations and the UK Government in an unprecedented transfer of powers. It is really important to remember that we are devolving powers down to those devolved nations.

The Bill will not limit the devolved Administrations from innovating, as some Members have suggested. If an Administration wanted to introduce minimum alcohol pricing laws in the future, as was mentioned earlier, our proposals in the Bill would have no effect on them as long as the rules did not have a discriminatory effect on goods from other parts of the UK. Nor would our proposals do anything to prevent any Administration from introducing rules and regulations on how and where products could be used, including bans on smoking in public places. As these powers return to the devolved Administrations and as we recover from covid, we must ensure that our economy is stronger than ever. That is why the Government have brought forward this legislation to guarantee the continued functioning of our internal market and to ensure that trade remains unhindered in the UK.

Our manifesto committed us to maintaining and strengthening the integrity and smooth operation of our internal market, and eight weeks ago, my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy presented to Parliament a White Paper that set out plans to preserve our internal market after the transition period. Since then, we have spoken to hundreds of businesses and business representative organisations across the UK to gather views and feedback on our proposals. Overwhelmingly, businesses supported our approach. For example, the British Chambers of Commerce stressed that a fragmented system would create additional costs, bureaucracy and supply chain challenges that could disrupt operations for firms across the UK. As these proposals progress, business communities will want practical considerations, not politics, at the heart of the debates on shaping solutions. I want to thank those businesses, along with colleagues across the devolved Administrations, for their engagement on the White Paper.

Turning now to the independent body that will be created by the provisions in part 4, we consulted on how to ensure that an independent monitoring and advice function could uphold the internal market. In response, to oversee the functioning of the internal market, the Bill sets up the Office for the Internal Market within the Competition and Markets Authority. In some of the contributions today, Members have talked about who will serve in the Office for the Internal Market. I must remind people that the Competition and Markets Authority sits aside from Government and the directors of its board can be seen on its website. It is open to everyone to see their expertise in their fields. These are not people who are passed on through grace and favour; these are technical roles and it is really important that we have the greatest expertise in that body.

[Tim Farron]

I do not think that any of us doubt the integrity of the people on the board or on that body. We doubt their powers to be able to ensure that there is equity. Does the Minister not understand that there is a real difference?