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(4 years, 2 months ago)
Lords ChamberMay I make a point that might help the discussion?
I regret that, under the current arrangements of the House, no interventions are permitted.
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(4 years, 2 months ago)
Grand CommitteeMy Lords, I am grateful to my noble friend Lord Berkeley for introducing this amendment. I am afraid that it is outside my normal expertise area, and I listened with interest to what he had to say. We should support his argument that if it is possible through this Bill to facilitate the rail sector and its development, we should do so. I am happy to back up the points made by other speakers.
My Lords, we have a change of rider as I leap into the saddle. I turn to Amendments 8 and 19 in the names of the noble Lords, Lord Berkeley and Lord Bradshaw, and my noble friend Lady Neville-Rolfe. The noble Lord, Lord Berkeley, eloquently explained to this Committee the nature of and reasoning behind these amendments. Taken together, they would expand the scope of the Trade Bill, incorporating the implementation of private international law conventions to which the EU was signatory before exit day.
I thank the noble Lord, Lord Berkeley, for his constructive engagement with my noble friend Lord Grimstone and our departmental team of officials over recent weeks. As the noble Lord has outlined, this amendment would allow the UK to implement the provisions of the Luxembourg Rail Protocol.
Let me say at the outset that the Government are supportive of ratifying the Luxembourg Rail Protocol. We recognise the competitive advantages which this could bring to the UK rail sector and UK financial services, as the noble Lord, Lord Berkeley, outlined so convincingly in his speech today and at Second Reading. I also took note of the remarks of the noble Baroness, Lady Kramer, who pointed out the economic advantages.
However, I do not believe the Trade Bill is an appropriate vehicle to provide the powers necessary for the implementation of this agreement. As has been explained to your Lordships, the powers conferred by the Bill are limited and narrow in scope, yet wholly essential for the delivery of the UK’s independent trade policy. It is our view that the contents of the Bill should not expand beyond essential readiness for life outside the European Union.
However, I can advise the noble Lord that the delegated power that was originally part of the Private International Law (Implementation of Agreements) Bill would have allowed the Government to implement domestically private international law agreements, including the private international law elements of a convention such as the one to which he refers.
The Government intend to reintroduce this in Committee in the other place, which, as the noble Lord, Lord Berkeley, said, I understand is to be as early as next week—I think 6 October. I therefore urge the noble Lord to encourage your Lordships in this Committee and beyond to support the reintroduction of the delegated power when the Private International Law (Implementation of Agreements) Bill returns to this House for Lords consideration of Commons amendments in coming weeks.
The Department for International Trade has engaged on an official level with the Department for Transport, which supports the Luxembourg Rail Protocol. The Department for Transport believes that the protocol has potential economic benefits for the UK, just as the noble Baroness, Lady Kramer, said.
I would be very pleased to facilitate a further conversation on this in conjunction with my noble friend Lord Grimstone in my capacity as a Whip with responsibility for transport and trade policy, and perhaps as an interdepartmental broker—I hope a very honest one. On that basis, I ask that these amendments are withdrawn.
My Lords, I have received no requests to speak after the Minister, so I call the noble Lord, Lord Berkeley.
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(4 years, 2 months ago)
Grand CommitteeMy Lords, I start by thanking all noble Lords who have contributed to this debate. There have been some heartfelt speeches, with not a little similarity to those made during the recent passage through this House of the Agriculture Bill, as my noble friend Lord Caithness pointed out. I have been left in no doubt about the strength of feeling about the importance of environmental protection as it has been linked by Peers to trade. Some powerful speeches were made by many, including my noble friend Lord Sheikh, the noble Baroness, Lady Hayman, the right reverend Prelate the Bishop of St Albans and the noble Earl, Lord Sandwich.
I will first address Amendment 12, tabled by the noble Lord, Lord Grantchester, the noble Baroness, Lady Hayman, my noble friend Lord Duncan and the noble Lord, Lord Oates, which would stipulate that Clause 2 could be used only to implement trade agreements which are fully compliant with named international environmental obligations, including the Paris climate change agreement. We understand and share the public’s support for the UK’s high standards of environmental protection. The noble Baroness, Lady Hayman, put it more eloquently and extensively than I, but there is so much to do when it comes to fighting climate change. However, this Government have already done a huge amount to protect and improve the environment.
Our departure from the EU offers a unique opportunity to design policies that drive environmental improvement with a powerful and permanent impact tailored to the UK’s needs. As set out in the 25-year environment plan, our ambition is to be the first generation to leave the natural environment in a better state than we found it. It is worth emphasising that we were the first major economy to legislate for net zero emissions by 2050. We are doubling our international climate finance spend to £11.6 billion by between 2021 and 2025. The UK has world-leading capabilities in areas including offshore wind, smart energy systems and electric vehicle manufacture. As I read my newspaper last week, I noticed that the sales of electric and hybrid vehicles recently overtook the sale of diesel vehicles, which is interesting progress. As your Lordships have already heard, none of our 20 signed continuity agreements has reduced environmental protection in any area, and nor will they.
The noble Baroness, Lady Boycott, raised three important concerns about FTAs which do not have standards included. I remind her that decisions on standards are not made in FTAs; they are domestic decisions which are and always will be made in Parliament. No FTA in itself has the power to change standards. Giving evidence to the Bill Committee in the other place, a representative of ClientEarth, a leading environmental law charity, described our approach to continuity as “sensible”. The Trade Justice Movement, the NFU, the Confederation of British Industry and others agreed.
Let me now address Amendment 14, tabled by the noble Lord, Lord Stevenson, and my noble friend Lady McIntosh. During the passage of the Bill in the other place, the Government were accused of attempting to deliver upcoming agreements which go far beyond our mandate for continuity. I emphasise that that is not the case and, as my noble friend Lord Lansley said, we have stayed true to our mandate of reproducing the original EU agreements, subject only to the technical changes required to make the agreements operable in a UK context.
In some areas, significant technical changes to agreements are required to make them work in a UK context. In these circumstances, the power would be used to make the necessary changes to UK domestic law to ensure that the obligations under the agreement are met. Let me give your Lordships an example: resizing quotas with a trading partner to reflect the fact that the UK comprises a different share of a partner country’s trade than did the EU.
Your Lordships will be aware that the Government have recently reached agreement in principle for a UK-Japan comprehensive economic partnership, which analysis shows could increase bilateral trade by £15.2 billion and offer a £1.5 billion boost to the UK economy. This agreement locks in the benefits of the EU-Japan deal and, picking up on my noble friend Lady McIntosh’s argument—and her hopes—goes even further in a number of areas, such as digital and financial services. By excluding this agreement from the scope of the Bill, the amendment would deny UK business and consumers the benefits which the agreement will bring. Your Lordships will already be aware of the enhanced scrutiny package which we have provided, reflecting its status as an enhanced agreement. The Government do not need this power to negotiate or sign agreements, but to implement in domestic law the obligations which arise from them. The “substantially similar” standard is ambiguous and would, unfortunately, introduce an element of uncertainty to the scope of the power.
I will address Amendment 21, tabled by the noble Lords, Lord Oates, Lord Purvis and Lord Fox, and the noble Baroness, Lady Sheehan. We believe that it is not required—there, I have said it, which will not please the noble Baroness, Lady Northover, but I will give my explanations.
I have set out the Government’s commitment to maintaining the UK’s high standards of environmental protections and our ambitious targets for the future. In addition, of the 40 continuity agreements that we are seeking to make, every partner country has signed the Paris Agreement, although it has not yet been fully ratified by all partners. I remind your Lordships that this Bill cannot be used to implement any free trade agreement with the United States, as it did not have a free trade agreement with the EU on exit day. We have already said that we will bring forward separate legislation for new FTAs if required.
Turning to Amendment 22, proposed by the noble Lord, Lord Stevenson, while I understand the concerns that some noble Lords, including the noble Lord, Lord Grantchester, have raised about this power, without it our continuity agreements would be inoperable, which in turn would disrupt the trade flows on which businesses and consumers rely. This power is necessary. It is proportionate and constrained. It is proportionate because it allows solely for the amendment of primary legislation that is direct principal EU legislation or primary legislation that is retained EU law. Obligations in continuity agreements often fall into one of these two categories, which is why this power is needed.
The noble Lord, Lord Beith, said that he did not think that the Henry VIII power is sufficiently constrained and urged the Government to listen to, among others, the Delegated Powers Committee on the use of these powers. I was pleased to see—I hope that he will have seen it, too—that the Delegated Powers Committee in its 21st report expressed no concerns at all over the delegated powers in this legislation. In fact, I point out to the noble Lord that the committee has twice considered this and raised no concerns on either occasion.
On Amendment 40, tabled by the noble Lords, Lord Purvis and Lord Oates, and the noble Baroness, Lady Boycott, I can confirm that our continuity agreements and the underlying EU agreements on which they are based are in full compliance with the United Nations Framework Convention on Climate Change, the Convention on International Trade in Endangered Species of Wild Fauna and Flora and every other international environmental obligation named in the amendment.
Amendment 69, in the name of my noble friend Lady McIntosh, seeks to achieve similar outcomes to the amendments that we have already discussed. It would give Parliament a greater role in determining whether food, animal welfare and environmental standards have been weakened. It would also amend the Taxation (Cross-border Trade) Act 2018 to oblige Her Majesty’s Treasury to have regard to these standards when establishing tariffs and duties.
My noble friend Lord Trenchard spoke about unintended consequences and I draw your Lordships’ attention to two that the proposed new clause could have. The first relates to the impact on the developing world, from which we import a huge amount of food each year. Due to the predominance of agriculture in the economies of developing countries, increasing barriers to trade between these countries and the UK could have an exaggerated effect on the economies of countries with which we sign an FTA. It is not economically viable for firms in the developing world to produce goods to multiple sets of standards for different export markets. Higher standards inevitably lead to higher costs, which could in turn lead to less demand for products and exports from these countries.
The second unintended consequence is the disruption posed to UK consumers in the price and availability of foodstuffs. The effect of the amendment could be to disrupt agri-food imports provided under FTAs entering the country in the short and possibly longer terms, while also jeopardising relationships with friendly trade partners, who would be concerned about this unique and unilateral action. When it comes to developing countries in particular, the UK imports predominantly raw food and ingredients, such as tea, cocoa and bananas, among other things. Where these imports are included within FTAs, they would be required to prove that they meet the UK’s domestic environmental standards, among others, before they could continue to be exported to the UK, which would put businesses in developing countries at risk. It would also disincentivise developing countries from seeking new opportunities through FTAs with the UK. On the proposed amendment to the Taxation (Cross-border Trade) Act, I assure the Committee that consideration for food, animal welfare and environmental standards underpins government policy in every department.
On Amendment 73, I assure the noble Baroness, Lady Jones, that the UK will continue to be bound by those international multilateral environmental agreements —MEAs—to which it is party. The amendment, however, goes beyond the UK’s MEA commitments. It could prevent the UK from negotiating and agreeing international trade agreements with many countries at a time when the Government’s priority is to promote free trade as well as to improve the trade and export opportunities for sectors where increased trade can provide both economic and environmental and climate benefits. In other words, there is merit for us, as my noble friend Lord Trenchard mentioned. The proposed new clause could hinder both our trade and environment and climate ambitions by restricting the opportunities for dialogue with trading partners and limiting the constructive dialogue and good will that are key to making positive progress as the UK leads globally on climate change at COP 26 and more broadly.
I am grateful to my noble friend Lord Younger for explaining in some detail the negotiating mandate we have agreed with the US. Could he confirm that this extends to animal welfare, as well as environmental protection standards, which is the subject of Amendment 69?
I was a little confused when my noble friend Lady Noakes talked about tomatoes. I had not talked about tomatoes, but there we are. The Minister referred to “unintended consequences”, which I am loath to envisage, and specifically to tea, cocoa and bananas. I understand that they are largely covered by fair trade provisions for marketing in the UK. Is that indeed the case?
I thank my noble friend for that. I am not sure that I can be drawn to talk about tomatoes. The best thing I could do, particularly for the points on the US, is to write to her with a full answer on animal welfare, which I could attempt, but also on tea, cocoa, bananas and the fair trade question.
I am very grateful to all noble Lords who spoke on this group of amendments. The Bill is an opportunity to restate trade policy in the important area of environmental protections, in support of the UK’s international obligations. With COP 26 next year, when the Government must be a global leader on the climate emergency, the UK must set an example to the rest of the world by drawing attention to trade that is built on international commitments entered into with so many multilateral agreements.
I hear again that the UK cannot impose regulations on overseas jurisdictions. I merely reply that we already send inspectors into factories and workplaces in countries such as India and Bangladesh, to check on their work practices in the manufacture of clothing. The nature of trade agreements has changed considerably since the UK entered the EU, when it ceased to be the sole competent authority on trade matters, a point acknowledged by the Minister in his reply to an earlier debate on Tuesday. I thank the noble Lord, Lord Beith, for his remarks on the powers subject to annulment by Amendment 22. Your Lordships’ Delegated Powers Committee has not been entirely satisfied by the Government’s reply on this presumptive power.
However, I listened carefully to the reply from the Minister and the many contributions regarding how the Committee may return to the issue later, so I beg leave to withdraw the amendment for further consideration.
My Lords, I will first speak to Amendments 15 and 16, tabled by the noble Lords, Lord Clement-Jones and Lord Stevenson, and my noble friend Lady Neville-Rolfe. I thank them for their engagement on the Bill and for their wider work over many years on the vital issue of intellectual property. As my noble friend Lady Neville-Rolfe said, this debate is rather reminiscent of six years ago when I was somewhat steeped in intellectual property in the old BIS department. The noble Lord, Lord Stevenson, was my opposite number, and my noble friend Lady Neville-Rolfe was my successor. This could therefore, perhaps, be described as a continuity debate on a continuity Bill.
These amendments would require the Government to publish reports detailing the impact of a trade agreement on intellectual property and data flows before they could make implementing regulations under Clause 2. I am proud to say the UK’s IP regime is consistently rated as one of the best in the world. That is a point also made by the noble Lord, Lord Clement-Jones. Now that we have left the EU, in line with our WTO commitments, the Government will continue to maintain our high level of protections of intellectual property. Let me say that at the outset. We recognise that an effective intellectual property system needs to strike a balance between supporting the UK’s world- class technology sectors to research and innovate and reflecting wider public interests. This balance will be reflected in our approach to intellectual property when striking new free trade agreements.
None of the 20 continuity agreements we have signed has weakened IP protections in any way, replicating as they do the provisions in the underlying EU agreements. They do not introduce new or diluted provisions in the fields of IP, data flows or any other areas. As a result, we heard positive endorsements of the Bill during Committee in the other place from service-oriented industries including the Advertising Association, the Institute of Directors and EY.
The noble Lord, Lord Fox, invited me to take the questions that were raised by the noble Lord, Lord Clement-Jones, and I say at the outset that I should and do take his questions seriously. One of the points that he raised was: will the Government include a wide range of specified provisions on IP in the trade agreements? Given that this is a continuity Bill, I suggest to him that the answers to his question can be found in the status quo. He mentioned negotiations on IP with the USA and New Zealand, which are not included in the scope of the Bill. However, DIT Ministers hold regular briefings with Peers on the progress of negotiations; I have attended at least two, and I encourage him to join up next time round.
Further to this, the noble Lord asked about the question of IP in our negotiating objectives in the US agreement. If he would like more information on our approach to IP in the negotiations with the USA, he can consult our negotiation objectives. Giving him a bit more detail, I assure him that, first, we will secure copyright provisions that support UK creative industries through an effective and balanced global framework. We will project UK brands while keeping the market open for competition, and we will promote transparent and efficient administration and enforcement of IP rights.
We have already mentioned the parliamentary reports we publish alongside signed agreements explaining our approach to delivering continuity. We believe that publishing additional reports alongside these would slow down the process of concluding agreements and increase the bureaucracy involved. In fact, taken cumulatively, all of the amendments tabled to the Bill by your Lordships would compel the Government to publish no less than 11 new reports alongside every single continuity agreement we sign. I believe that this would not be a good use of time or resources, and I hope the Committee agrees with that.
The UK has long been, and remains, a strong supporter of an open, rules-based international trading system. The WTO’s TRIPS—which was referred to in the debate on the last group—sets out the minimum standards for trade in intellectual property across all WTO member nations. As the UK updates the terms of its WTO membership, we will be making sure that we remain compliant with the TRIPS agreement and, as part of future trade deals, the UK will look to refer to—and improve on—the standards set out in international agreements.
With regard to future FTAs—although they are not included in the scope of this Bill—we support ambitious and liberal provisions that support international cross-border data flows while understanding the importance of ensuring that personal data protections are not put at risk. The UK Government are committed to ensuring that uninterrupted data flows can continue between the UK, the EU and other countries around the world. I reassure the noble Lord, Lord Clement-Jones, that the free flow of data, including personal data, is crucial to international co-operation in the modern world, but it must be underpinned by high data protection standards. We are equally committed to ensuring high standards of data protection and privacy after the end of the transition period.
The noble Lord, Lord Fox, mentioned in his remarks the 2020 Schrems II judgment, which I will say a few words about to help him with some more information. As I said earlier, the UK Government are committed to ensuring high data protection standards and supporting UK organisations and businesses is very important. The UK Government are reviewing the details of the judgment in the case referred to earlier—Schrems II— and considering its impact on data transfers for UK organisations.
As he may know, the UK Government intervened in the case, arguing in support of standard contractual clauses—so-called SCCs—and are pleased that the court has upheld this important mechanism for transferring data internationally. Therefore, the UK may independently take steps to address issues arising from the judgment after the transition period. The Government are working with the Information Commissioner’s Office to ensure that updated guidance on international data transfers will be available as soon as possible. The Government will continue to work with the commissioner’s office and international counterparts to address the impacts of this particular judgment.
The Government have been clear that FTAs do not provide a legal basis for the cross-border transfer of personal data. I make it clear that this will be controlled by our domestic data protection legislation. Moving forward, as we develop our trading relationships with other countries, our approach must be transparent and inclusive. We are working closely with a wide range of stakeholders to develop our priorities around trade and intellectual property, including the devolved Administrations, industry and consumers. Getting the right outcome for UK inventors, creators and consumers will be key. Given that we are seeking to replicate commitments in existing EU trade agreements, I do not believe that producing further reports, in addition to those we already publish, alongside each signed agreement is necessary or proportionate.
I now turn to an important part of this debate. Amendment 34 is intended to prevent the Clause 2 power being used to implement continuity agreements which do not comply with existing domestic and international obligations regarding the important subject of the protection of children and other vulnerable user groups using the internet. We heard passionate speeches from the noble Baroness, Lady Kidron, and others, including the noble Baroness, Lady Ritchie. I want to be clear, perhaps echoing the words of the noble Baroness, Lady Kidron, that this Government are, and must be, committed to making the UK the safest place in the world to be online and for children to be online. We carefully consider any interaction between trade policy and online harms policy in trade agreements. I can confirm that we stand by our online harm commitments, and nothing agreed as part of any trade deal will affect that.
In 2019, as the noble Baroness and others will know, the DCMS published the online harms White Paper, with the initial government response in February this year, setting out the direction of travel. The DCMS will publish a full government response to the White Paper consultation later this year. This will include more detailed proposals on online harms regulation and will be released alongside interim voluntary codes on tackling online terrorist and child sexual exploitation, as well as abuse content and activity. The DCMS will follow the full government response with legislation, which is currently being prepared and will be ready early next year.
It should come as no surprise that our continuity programme is consistent with existing international obligations, as it seeks to replicate existing EU agreements, which are themselves fully compliant with such obligations. By transitioning these agreements, we are reaffirming the UK’s commitment to international obligations on protecting young and vulnerable internet users, which is so important.
The noble Baroness, Lady Kidron, asked whether the agreement between the EU and the US on data services should be considered in the scope of the Bill and be able to be rolled over. The scope of the Bill applies to either FTAs or agreements that relate mainly to trade between a partner country and the EU signed before the UK left. She will know that we are in negotiations with the US on an FTA, as I mentioned earlier, and we will bring forward separate legislation on that if required. I hope that that gives her enough reassurance at this stage.
Our continuity agreements will safeguard, not undermine, our domestic protections and international commitments regarding online protection of young and vulnerable internet users. In the light of those reassurances covering all the amendments, I hope that Amendment 15 will be withdrawn and that noble Lords will not press Amendments 16 and 34.
My Lords, I have had two requests to speak after the Minister from the noble Lords, Lord Fox and Lord Stevenson. I now call the noble Lord, Lord Fox.
I thank the Minister for his response on Schrems II, which was very helpful. I would like just one further detail. Can he confirm that the advice, when it comes, could concern where databases are domiciled? If so, the advice needs to be made available earlier rather than later so that companies are able to comply. Therefore, can he give some indication of the timetable for when business might get some guidelines so that they can work out their new data management policy?
Absolutely. That is a very fair question from the noble Lord. As he will expect, I do not have a timeline, so the best thing for me to do is to look at his question and write to him, giving whatever information we have from the department, together with any extra information that might be helpful to him.
I have also had a request from the noble Baroness, Lady Kidron, to speak after the Minister, but I now call the noble Lord, Lord Stevenson.
I now call the noble Baroness, Lady Kidron.
I believe I should respond to the noble Lord, Lord Stevenson, if I may. The noble Lord makes a very fair point. It is fair to say that this is, just by dint of the coincidence of timing, tied up with all the work we are doing on the online harms White Paper. He will know that more detailed proposals on the regulations will be released alongside the interim voluntary codes. We need to look at this in tandem with what we are doing with free trade agreements. That is the answer I can give to him at the moment. Again, I will write to him with more details on this because it is a very important subject.
I thank the noble Lord, Lord Stevenson, for asking half of my question, but, as the Minister just said, it is tied up with online harms, we are tied up with trade—I think that is our collective anxiety, if you like. At what point do these things start impacting on each other in ways that are negative to children? The reason for having a standard going in is to make sure that children are not victims of what happens over the next months and so on. I want to make that point.
I have another question, if the Minister would be kind enough to answer. He mentioned, a couple of times, high standards of data protection, but does he mean the standards that we negotiated so long and so heavily during the passage of the DPA 2018? Are those the standards, and will those remain the standards, or are we talking about some other general high standards of data protection?
To answer the second question from the noble Baroness, we could well be. I think I have said, in other respects, when we do finally leave the EU after the transition period, because we will have left the EU it will be up to us to look at our standards and raise them if we think that is right. On the way forward on online harms, which is very close to the heart of the noble Baroness, I reassure her that there is a lot of cross-departmental work going on here. Although this is DCMS-led, I reassure her, on behalf of my noble friend Lord Grimstone, that the DIT and other departments are working together on the way forward, bearing in mind the White Paper.
My Lords, I thank the Minister for his response. It was useful to be reminded by the noble Baroness, Lady Neville-Rolfe, of his antecedents. I remember many happy hours discussing copyright exceptions—I think it was from 2013 onwards —and I am sure it was one of the Minister’s favourite jobs at the time, with all the minutiae of intellectual property involved.
This has been a relatively short but, I hope, well-argued debate and I am grateful to those who supported not only my Amendment 15 but Amendments 16 and 34, which I strongly support as well. If we were looking for an order of priority, Amendment 34 in the name of the noble Baroness, Lady Kidron, is the absolute touchstone for this debate. She referred to putting an intentional red line in the negotiations, a very powerful phrase. The noble Lord, Lord Sheikh, said that children’s safety should not be traded away again, which really emphasises the importance of this. The point was made that we do not yet have all the legislation we need in this area, therefore any negotiations need to take account of future legislation. It is a really tricky one. The Minister has a wonderful bedside manner and used the word “reassure” on a number of occasions, but this is a really difficult and important area. Personally, I am not 100% reassured and if the noble Baroness wanted to bring her amendment back on Report, many of us would give her a great deal of support.
Turning to data, I agree with my noble friend Lord Fox: the one thing giving business sleepless nights is the whole issue of data adequacy and data flows. Post Schrems, that is a really difficult area. The Minister mentioned it and the noble Lord, Lord Agnew, answered a Written Question from me recently about the taskforce. It is urgent that we should have those guidelines in place. It is not adequate that people should simply have to rely on standard contractual clauses, especially for small business, as it will imply that they have to take a great deal of legal advice. I should say that since I no longer charge by the hour, I have no direct personal interest in that. However, it is a serious area and I hope it is being taken on board at speed.
On the IP front, there was a kind of multiple-choice questionnaire which I hope the Minister will use in future negotiations to tick or cross, as the case may be. The big problem is that this all demonstrates the feeling that the scrutiny process is inadequate, whether on continuity agreements or new agreements. The Minister says that the amendments would require another 11 reports, or whatever the tally would be, but that demonstrates a theme that has run through Second Reading and Committee so far: that the level of scrutiny we are being given over free-trade agreements is inadequate. Whether on things such as IP and data, which are crucial to business, or things which have a greater moral and societal foundation, as in the amendment of the noble Baroness, Lady Kidron, this is about the opportunity for scrutiny not being adequate at this point.
I will obviously withdraw the amendment, as we are in Grand Committee, but we are, in a sense, still back with the feeling that we have to go much further on scrutiny. If that involves 11 reports, so be it: these are important agreements for our future. I beg leave to withdraw the amendment.
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(4 years, 1 month ago)
Grand CommitteeMy Lords, I beg to move that the debate on this group of amendments be adjourned.
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(4 years, 1 month ago)
Grand CommitteeMy Lords, it is a great pleasure to follow the noble and learned Lord, Lord Hope. The strength of argument he has put behind these amendments and the analysis that he always brings to bear are very forceful. I am grateful to all those who have spoken in this debate, because the Minister should be clear that they have articulated not only a very clear strength of feeling but a really strong force of argument behind all these amendments and the need to maintain the devolution settlement. Of course, all these amendments have devolution at the heart. How it is handled by the UK Government requires a huge sensitivity which, as a number of noble Lords have pointed out, has not always been displayed.
I shall speak specifically to my Amendments 27 and 76, and to Amendment 30, which I have signed. I am grateful to my noble friends Lady Humphreys and Lady Suttie, and the noble Lord, Lord Wigley, for signing Amendment 27, and to the noble Baroness, Lady Bennett, who certainly indicated some support for Amendment 76.
Far-reaching decisions under the Agriculture Bill, the Trade Bill and the forthcoming Internal Market Bill put the devolution settlements and the integrity of the United Kingdom under immense strain. This has been stressed by pretty well every speaker in this debate. It has come about because the umbrella of the European Union, which set the framework, is being removed, so powers that revert to the UK have to take account of the devolution that took place while we were in the EU. Some of the powers are fully devolved and come to the devolved Administrations. Some are reserved. All this requires that the powers that come back to the regions are not overridden. Those that are reserved, are reserved. That is clear. Those that are hybrid are clearly open to debate. But what is emerging is that some that are theoretically devolved are being clawed back by the Government’s interpretation of what is reserved.
These amendments seek to test the Government’s good faith and ensure that decisions that may radically alter the terms of trade for companies, the public sector or individuals within any or all of the devolved Administrations are taken in a fair and objective way. Amendment 27 requires the Government to secure the consent of the devolved legislatures to any regulations under the Bill, and proposed new subsection (6B) suggests that if two of the three devolved legislatures do not consent, the regulation should not proceed. Effectively, this is an exploratory amendment to see to what extent the UK Government respect the settlements and wish to achieve unanimity—or at least, as the noble Lord, Lord Hain, suggested, qualified majority support. I think most of us accept that it would be unreasonable to allow one devolved Administration to have a veto, but it is equally unreasonable to allow the one devolved Administration which is also the UK Government to have a veto over the three devolved Administrations, which is what the Government are proposing in the Bill.
Amendment 78 seeks to embed the role of the Joint Ministerial Committee, which has been underregarded to date. It has brokered the agreement on common frameworks, which will be subject to this House’s new committee, of which I am a member. However, it has not been the vehicle for negotiation and compromise that some had hoped for. It was envisaged by many that it would be the vehicle by which consensus could be secured. The amendment requires it to meet prior to concluding a free trade agreement and to secure the consent of the devolved Administrations.
What we are talking about in practice here is that trade agreements are treaties and treaties are reserved. Under the EU, our devolved Administrations could not, at least before we left, make common cause with subnational Parliaments and Governments across the other 27 member states. We are all familiar with the role of Belgium’s provincial Parliaments in ratifying EU treaties, and nobody in these amendments is seeking to give any of the devolved Administrations in the UK a comparable power—but once the power lies with Westminster and Whitehall, there is no Europe-wide constituency to pursue. There is no consensus to be built up across like-minded legislatures elsewhere, other than the three devolved Administrations, which have different priorities but common values and common concerns.
If the Government chose to conclude an agreement that lowered food standards, perhaps compromising Scotland’s prime beef sector, it would surely be essential that this was agreed by the Scottish Parliament. Indeed, I challenge the Minister to say under what circumstances the Government could justify that without securing such consent. If public procurement was amended to allow elements of the health service to be available for foreign investment, or for previously non-approved drugs to be allowed, or financial regulations to be lowered or changed in ways that were detrimental to Scotland’s important financial services sector, should the people of Scotland and their representatives not be consulted in a meaningful way?
I take on board the point made by the noble and learned Lord, Lord Hope, about whether it should be Ministers or legislatures—but, as he said, that is a matter of detail. The principle is that the voice of Scotland should be taken into account, and the same would apply on comparable issues in Wales and Northern Ireland. Of course, England needs devolution, and if the Government could find a democratic way of consulting the English regions, it could add a valuable balance. But the fact that that has not been done should not be used as an excuse to say that the devolved Administrations cannot expect to have their views given the weight that these amendments are trying to secure.
Ministerial insensitivity and indifference are, frankly, turbocharging nationalism and separatism. Next year’s elections will be hard fought between the extremes of what to me is a fantasy independence agenda and a UK Government cavalier about their claim to be unionist, and another crisis may engulf us all. I therefore urge the Government to wake up, think and engage, and at least to adopt the spirit of these amendments and show respect to the devolution settlement and an understanding of how to secure a positive way of working.
Dispute resolution will be required. The Government should accept that, ideally, we would like to see government amendments which take the spirit of the amendments that have been debated today and put it on the face of the Bill. That would ensure that any disputes are properly handled in an objective, fair and independent way, and that it is not just a matter of the assurance of a Government who, in the Bill, are saying that ultimately, in the event of disagreement within or across the devolved Administrations, the UK Government, representing the English devolved Administration and the UK, will override the wishes of the devolved Administrations. If the Government seek to do that, they will put a huge explosive under the continuing functioning of the United Kingdom.
It is important that the strength of feeling and the strength of argument that these amendments have demonstrated to the Government require a clear vision from government, and for it to be put on the face of the Bill before it is enacted.
My Lords, as I respond to this continuing debate today, I welcome the opportunity to discuss the important issue of the devolved Administrations’ role in international trade and to demonstrate the significant strides that the Department for International Trade has taken on this matter since the passage of the Trade Bill 2017-19. I have listened to the arguments, and the essence of this debate has been a discussion on the balance between devolved and reserved, and, as the noble Lord, Lord Bruce, said, its link to the test of good faith. There are bound to be differing views on what that balance should be.
During the passage of the previous Trade Bill, the UK Government conducted a significant programme of engagement with the devolved Administrations and your Lordships’ House to ensure that the Bill delivered for all parts of the UK, including regular meetings with devolved Ministers and attending the devolved legislative committees. As a result of this engagement, the UK Government made a number of amendments and commitments to address the devolved Administrations’ concerns. This led the Welsh Parliament to consent to the relevant clauses of that Bill. We are conducting a similar programme of engagement for this Bill and have included all the amendments and restated all our commitments that we made to the devolved Administrations. As a result, the Welsh Government have once again recommended consent to the clauses that were contained in the previous Bill.
However, we have also gone further on this Bill and have made an additional amendment to remove a restriction on the devolved Administrations’ use of the powers in the Bill which the Scottish Government previously objected to. As a consequence, I am pleased that the Scottish Government have now also recommended consent to the Bill, and—to be helpful to the noble Baroness, Lady Ritchie—we are working very hard to ensure that the Northern Ireland Executive also feel able to do so. That the Welsh and Scottish Governments have already recommended consent demonstrates that the Bill is already drafted in a way that respects the devolution settlements. Indeed, in its report on the Bill, the Constitution Committee of your Lordships’ House welcomed the progress that we have made on this matter and made no recommendations for changes to devolution aspects of the Bill, which it might otherwise have done.
On Amendments 26, 27, 31 and 99, as many noble Lords have highlighted already, international trade is a reserved matter under the devolution settlements. However, the noble and learned Lord, Lord Hope, rightly noted at Second Reading and today, in line with the noble Baroness, Lady Humphrey, on Tuesday, that the implementation of international obligations in devolved areas is a devolved matter. We absolutely recognise the devolved Administrations’ competence in this area, which is why the Bill confers powers on them so that they are able to implement our continuity agreements where they touch on devolved matters.
As the noble and learned Lord, Lord Hope, also noted at Second Reading, these are concurrent powers that also allow the UK Government to legislate in devolved areas. We have sought to put in place concurrent powers to provide greater flexibility in how transitioned agreements are implemented, allowing each devolved Administration to implement the agreements independently in some cases, but also allowing the UK Government to legislate on a UK-wide basis where it makes practical sense to do so.
We understand that those powers should be used appropriately, which is why the Government have committed that we will not normally use the concurrent powers to legislate within devolved areas without the consent of the relevant devolved Administration, and never without consulting them first, as the noble and learned Lord, Lord Hope, said. We have also put in place a five-year sunset provision on the concurrent powers in Clause 2, which can be extended for further periods only with the agreement of both Houses of Parliament. We recognise that this would also extend the devolved Administrations’ and the UK Government’s ability to use the powers in devolved areas, and have therefore committed to the devolved Administrations that we will consult them before extending the sunset.
My Lords, with apologies to the remaining speakers, I beg to move that the debate on this amendment be adjourned.
Trade Bill Debate
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Lords ChamberI thank the noble Lord, Lord Purvis of Tweed, and the noble Baroness, Lady Sheehan, for bringing forward both amendments in this group. I also thank my noble friend Lord McConnell for adding his name to Amendment 39, on sustainable development goals, and the noble Baroness, Lady Bennett, for adding her name to Amendment 97 on agreements in relation to the least developed countries. All speakers last week expressed support.
We need to make sure that developed countries are not the only winners from trade, and certainly not at the expense of developing countries. We need to be mindful of the effect on those less developed so that they are encouraged and not inadvertently harmed through any unintended consequences. The winners from trade should be people and the planet. Any trade deal should help tackle inequality and the environmental challenges we face. Trade should not mean ignoring our commitments to the sustainable development goals and to a sustainable trade policy, especially now, as all nations seek to recover from Covid-19. The scheme of preferences may not be sufficient.
The pandemic has exposed global inequality and is projected to push millions of people into unemployment and poverty, even at the risk of starvation and death. It is more important than ever to bring a renewed impetus to achieve all the sustainable goals. This has been reflected in more and more councils across the country passing commitments in support of the SDGs. My noble friend and colleague Lord Collins is conducting a review on reform of the United Nations to consider how best to improve its workings to meet SDGs better. So far the UK has not been on a trajectory to meet any of the goals that the Government have committed to. No progress has been made on this since 2011.
The issue is important; the benefits of trade need to be shared with everybody, both here in the UK and in developing countries around the world.
My Lords, I thank all noble Lords who spoke to Amendment 39 on Thursday and the noble Lord, Lord Grantchester, today. As I mentioned last week as we debated Amendment 12, our continuity programme is fully compliant with environmental obligations, such as those found in the Paris Agreement on climate change. So, too, is it fully compliant with the UN sustainable development goals.
I welcome and support the objectives of the SDGs, and I assure your Lordships that the work of my department is always in alignment with important multilateral commitments. As our continuity programme seeks to replicate existing EU agreements, it follows that it is absolutely coherent with existing international obligations, including the UN sustainable development goals, and it will remain so. On that basis, I believe that this amendment is unnecessary.
Amendment 97 would oblige the Government to lay before Parliament a further assessment of the impact of our free trade agreements with the least developed countries and lower-middle-income countries before commencing the substantive provisions of the Trade Bill, and again every 12 months afterwards. I can assure noble Lords that the Government are determined to continue playing their role as an engaged partner to the developing world. We have signed continuity agreements with the CARIFORUM states, the Eastern and Southern African states, the Southern African Customs Union bloc and others. Discussions with further developing countries continue, and my department hopes to make good progress in delivering continuity before the end of the year.
In terms of questions that were raised on Thursday relating to communication and transparency, we are committed to providing Parliament with updates on our trade programmes with the developing world, which we are delivering through our parliamentary reports, where that is relevant, a regular and productive dialogue with parliamentary committees at ministerial and official levels, and a report which the DIT will make to Parliament. I remind your Lordships that we are seeking only to replicate the provisions of the EU’s agreements with developing countries.
Ultimately, we do not believe it is proportionate or sensible to provide reports every year, when our objective is continuity with the status quo. As our continuity agreements clearly safeguard such international commitments and the Government are wholly committed to the preservation and improvement of the environment, I ask for the amendments to be withdrawn.
My Lords, I am grateful to those who have spoken within this group, even with the slightly disjointed timing of breaking within the group. I wish to comment on a couple of things that the Minister said before I sit down. In so doing, I thank the noble Lord, Lord Grantchester, for the support of his party. These are cross-party efforts.
My noble friend Lady Northover, in her excellent contribution, said that our ability to negotiate around the world is helped by our good standing in the world. I think that is absolutely right. She referenced the Fairtrade Foundation, and our support for fair trade and the work of the Fairtrade Foundation is a major way to communicate how we see our trading relationships around the world. We on these Benches agree with free and fair trade—not no trade, which I think was the thrust of the contribution from the noble Baroness, Lady Bennett of Manor Castle, in this group.
My amendment is not a Trojan horse for those who seek to make the case against global trade; rather it is to put markers down that our trade should be of the highest ethical approach. That is why I was so glad to hear the contributions of my noble friend Lord Chidgey and the noble Lord, Lord Judd, who both displayed real dedication on this topic. I pay tribute to my noble friend for his leadership of the All-Party Group on Africa.
The noble Lord, Lord Harris, referenced the fact that we should see our trade holistically: that is a very good way of describing it. We do not negotiate in isolation; often, we have bilateral trade negotiations but increasingly, as with the least developed countries, we are negotiating with regional groupings. They have their own development priorities, which we also support.
The noble Baroness, Lady McIntosh, asked where we are on the current trajectory. There was not a lot of information from the Minister on that. I can quote to her from the reply that Theo Clarke MP and I received from Greg Hands and James Duddridge on 16 September. We had written a letter in our capacity as co-chairs of the All-Party Group on Trade out of Poverty. The annexe to that letter, in reply to our request for information of exactly the kind the noble Baroness asked for, was rather depressing. The Minister said:
“The Government aim to see good progress”.
I think we all wish to see good progress. However, in regard to the SACUM EPA, which he referenced, of South Africa, Botswana, Namibia, Eswatini, Lesotho and Mozambique, only South Africa and Botswana have ratified; the others have yet to ratify. There is a mixed situation on the Eastern and Southern Africa EPA, with Mauritius, Seychelles, Zimbabwe, Madagascar and Comoros. They are eligible to join the EPA but have not yet joined; therefore, it has not been agreed with us.
On the east African community, which I singled out in my speech, with regards to Kenya, the only information is that these are discussions that are ongoing. The Government said,
“You will understand that it would not be appropriate to give further details on the status of these discussions before they have concluded”,
but Kenya has been dropped from the ongoing engagement. I am not sure if it is in order to notify to the clerk at the desk orally instead of emailing him that I would like the Minister to respond to this, but I would like information about Kenya. The reason I think Kenya is so important is that it is where Theresa May, as our Prime Minister, chose to visit to announce that the UK would be the biggest investor in Africa in the G7 by next year. That target has been dropped, with little explanation as to why. The target is now:
“We want the UK to be the investment partner of choice”
for Africa. It is rather symbolic that, despite that announcement made in Kenya, it now looks unlikely that there will be an agreement with Kenya at the end of this year.
On the final regional grouping, of Ghana, Cameroon and Côte d’Ivoire, discussions are ongoing. It does not paint a very strong picture about how ready we are to trade on an EPA basis rather than a WTO basis on 1 January. The Minister also did not respond to the very good question my noble friend Lady Northover asked: if that is to be the case, will the Government ensure that we stand ready to support all those countries, so that there are no additional costs for trading with us on WTO terms?
On the previous group, I was interested in the response of the noble Lord, Lord Grimstone, to his noble friend Lord Lansley. The committee was told, on the point about having sufficient time to scrutinise some of these agreements, that there would likely be a cliff edge if some of them were made close to the end of the year, so that there would be insufficient time to allow an extended period of scrutiny by the committee. I was under the impression that, if we have reached agreement in principle under the WTO, we can provisionally apply agreements. I would be grateful if the Minister would clarify, and correct me if I am wrong, that there will not be a cliff edge, but that we will be allowed some proper time.
I have taken note of a number of questions raised by the noble Lord and I think it best to address them in a letter, so I shall write to him, while liaising with my noble friend Lord Grimstone.
My Lords, I turn to Amendment 46, regarding the parameters of the UK’s future relationship with the EU, in the names of the noble Lords, Lord Purvis and Lord Fox, and the noble Earl, Lord Clancarty. I have been left in no doubt about the importance of people—or personnel, as we sometimes call them—to ensuring that UK businesses have the resources that they need. Of course, this is correct, and I can relate to it to some extent due to my business background in human resources.
I was particularly struck by the tour d’horizon of the noble Earl, Lord Clancarty, the noble Baroness, Lady Bull, and the noble Lord, Lord Stevenson, who spoke just now about the importance of the creative industries. The noble Baroness spoke about the performing arts, perhaps understandably, including music. Soft power has also been mentioned—as, in fact, were quite a lot of sectors, including the tech sector—by the noble Lord, Lord Fox. I will start with that.
There is a “however” to this, which is that the Government have made it very clear on many occasions that our priority is to ensure that we restore our economic and political independence on 1 January 2021. As my noble friend Lady Noakes said in no uncertain terms—and she is right—this was at the heart of the Conservative Party manifesto and the basis on which we were elected.
The approach to the future relationship with the EU has already been extensively discussed by this House and the other place, most notably during Parliament’s scrutiny of the European Union (Withdrawal Agreement) Act 2020. We want a relationship with the EU that is based on friendly co-operation between sovereign equals and centred on free trade. That is what Task Force Europe, working within the Prime Minister’s office, 10 Downing Street, is pursuing.
Businesses have told us that it is important for them to be able to send their employees to other countries to deliver services on a temporary basis, so we will, of course, be open to negotiating reciprocal arrangements with the EU to facilitate this, building on the provisions that are standard in trade agreements. A reciprocal agreement based on best precedent will mean that UK citizens will be able to undertake some business activities in the EU without a work permit on a short-term basis. The same would apply for EU citizens making business visits to the UK. The precise details, including the range of activities, documentation needed and time limit are for continuing negotiation.
I will pick up on a question raised by my noble friend Lady McIntosh on reciprocals. Our negotiations with EEA EFTA states on a trade agreement are ongoing, so I am afraid I am unable to comment on specific policy areas, and I know that she raised a number of questions for me. However, the Government are not seeking to agree mobility arrangements with the EU beyond those that are normally contained in the services part of a trade agreement. We will negotiate commitments on a temporary entry without prejudice to the introduction of our points-based migration regime. I will answer a question raised by the noble Lord, Lord Fox: the Japan FTA does include a mobility framework.
While we will pursue an agreement on temporary entry for business purposes, this amendment seeks to mandate the Government to reintroduce a comprehensive mobility framework that runs counter to the manifesto the Government were elected upon and a decision that Parliament took when it passed the European Union (Withdrawal) Act.
I will pick up on the subject of a different type of mobility. I listened with care to the speech of the noble Lord, Lord Berkeley, and I reassure him that I will liaise with my noble friend Lady Vere in the Department for Transport to respond to him. I very much took note of the points that he raised about transport in general and, particularly, in relation to Eurostar. With that, I ask the noble Lord, Lord Fox, to withdraw his amendment.
I thank the Minister and all speakers in this short debate. As others have said, the noble Earl, Lord Clancarty, and the noble Baroness, Lady Bull, set forward a compelling set of reasons why a mobility framework is good not just for the individuals concerned but for the overall well-being, financial and otherwise, of this country.
The noble Baroness, Lady Bull, brought up the evidence that was laid before the Economic Affairs Committee last week; I was privy to that and suggest that the Minister might find it a good use of an hour of his time to listen to that evidence, which is about the pressure that Covid is bringing to those people. However, it is quite clear that Covid, followed by a clamping down on their mobility and ability to move around Europe and ply their trade, is the double hit that they all fear.
The noble Lords, Lord Judd and Lord Berkeley, and my noble friend Lord Bradshaw all supported what was being said, and I particularly thank the noble Lord, Lord Berkeley, for harking back to the deft decision-making of Chris Grayling. The Government appear to have taken up a career in suggesting new careers for people, with Ministers, apps and adverts all suggesting that everybody retrains. Perhaps Chris Grayling could retrain as a fishmonger and be sent to Northern Ireland to alleviate the crisis that MAC seems to have identified there.
I am very grateful to the noble Baroness, Lady McIntosh, for bringing up mutual recognition of qualifications. I was going to speak to that issue and decided that there was too much already, so I am glad that she did. This is absolutely crucial not just to the service industry but to all sorts of industries: from teaching to veterinary services, everything requires this to work. I understand that discussions are under way, but they need to be successful: there needs to be positive resolution.
Therefore, I do not think there is a meeting of minds. As the noble Lord, Lord Stevenson, said, we can assess the Minister’s response, which was short and hardly sympathetic to the amendment, which is not a surprise. It is interesting to note that, when it comes to Japan, we are prepared to have these conversations and be very open, and, when the announcement is put out, they will probably be one of the wonderful things that is lauded about that deal. Yet, somehow, in the terms of the noble Baroness, Lady Noakes, it is a sin to even think that we might be having this sort of discussions with our recently former colleagues in the European Union.
The noble Baroness, Lady Noakes, said, “That has consequences.” As usual, she is right. I will be very happy when she can explain to people with relatives in care homes the consequences of having insufficient care, and when she can talk about there being too few key workers in sectors where we need them to help to hold our society together in times of stress. I will be very pleased when she is around explaining that those consequences are a result of decisions like this. However, with that said, I beg leave to withdraw this amendment.
My Lords, we have had a very interesting debate at a very high level. Of course, that is inevitable if you have a former Secretary of State and a former Minister of the Province lending their expertise and knowledge to the issues that we have before us. My noble friend Lord Hain was very precise when he said that it was a difficult group to speak to, because there seemed to be two parts to it, and almost a third one with the trader support service, as we have discussed. However, I think we gained by having all three amendments discussed together, focusing on all the problems facing this troubled area, and by having drawn to our attention, which we need from time to time, the hope and enthusiasm that there is for a future in the Province as a result of the changes that were brought forward through the Good Friday agreement and subsequently.
I just have two or three small points to make. My noble friend Lord Hain was right to suggest that, irrespective of recent events, we probably would have wanted to return to this issue in this Bill at this time from the prospect of international trade because of the concerns of people in the Province about how they will be treated as part of the United Kingdom. That has doubled in focus—if that is a possible term—because we are now aware of the machinations that the Government have thrust into the debate by seeking to legislate in the internal market Bill; but, of course, that will be for next week. We have to deal with where things are at the moment, with the international outrage over the breaches in international law that have been threatened. It is right, therefore, to ensure that, at the end of the day, the Government are forced to respect the law as it currently stands and have no wiggle room to change it.
Secondly, picking up the points made by both my noble friend Lord Hain and the noble Baroness, Lady Ritchie, there is much more to the Northern Irish protocol than simply issues relating to the border, important though they are. It would be completely beyond any sensible movement if we were to engage in a process that led to a block or discouragement in growth in the confidence and security that the Good Friday agreement has provided across all aspects of everyday life in Northern Ireland. It is, indeed, the cornerstone of peace and security there, and we change it at our peril.
Turning to Amendment 65 and the questions that it raises about the Irish Sea and its position in relation to the borders of both the European Union and Great Britain, I am beginning to think that this is beginning to adopt some of the aspects of the Schleswig-Holstein question of the last century or two, or even of Schrödinger’s cat, since we are talking about trying to legislate for an area that is simultaneously both a member of two customs unions and subject to variables in terms of the operation of the law, depending on which way it is facing. My noble friend Lord Hain was right to point out that we still do not know enough about where the EU-UK agreement will leave us; we do not know how the protocol will operate in practice and what will happen in the next few years; and we are uncertain about where the Northern Ireland operation will be in relation to the free trade agreement with the EU. Will it align more towards the EU, or will it be more like the FTAs that the UK will negotiate; and if that is the case, how will we make sure that they are properly applied? There are lots of questions here, and the amendment helps to clarify the issues. Whatever the truth of that is, Northern Ireland needs an assurance about how it should go forward.
On the trader support service, it might well be defective in law, but the intention is very clear. I hope that, when the Minister comes to respond, he can give support to the idea that it continues.
My Lords, the amendments in this group all relate to various aspects of the Northern Ireland protocol. Amendments 58 and 59, tabled by the noble Lord, Lord Hain, the noble Baronesses, Lady Suttie and Lady Ritchie of Downpatrick, and my noble friend Lady Altmann, seek to make the ratification of any future UK-EU international trade agreement contingent on compliance with the protocol. I listened very carefully to the hard-hitting and long speech from the noble Lord, Lord Hain. I am very aware that he speaks passionately on Northern Ireland matters as an ex-Secretary of State for Northern Ireland and that he spoke again today with great passion. We have been clear that we remain completely committed to the Belfast/Good Friday agreement. We are committed to implementing the protocol in a flexible and proportionate way, protecting the interests of both the whole United Kingdom and the EU.
Our proposals for implementing the protocol will deliver unfettered access for Northern Ireland businesses to the whole of the UK market, ensure that there are no tariffs on goods remaining within the UK’s customs territory, discharge our obligations without the need for any new customs infrastructure for Northern Ireland, and guarantee that Northern Ireland businesses benefit from the lower tariffs that we deliver through our new free trade agreements with third countries. This approach is, in our view, the best route for commanding the broadest possible support across the whole community in Northern Ireland, respecting the myriad ways in which lives and livelihoods are intertwined right across our United Kingdom. This came out, again, in the speech by the noble Lord, Lord Hain.
The Bill that we are debating here does not address the UK’s future relationship with the EU. Other than the government procurement agreement, it is concerned only with continuity agreements: that is, agreements to which both the EU and the relevant third country were signatories before exit day. While I understand the noble Lord’s concerns, there will be better opportunity to debate them elsewhere. In accordance with the Constitutional Reform and Governance Act, both Houses will have the opportunity to debate any UK-EU future trade agreement before it is ratified. Similarly, as the noble Lord, Lord Hain, acknowledged—and the reasons were eloquently outlined in the speech of my noble friend Lord Lansley—noble Lords will soon have a chance to debate their concerns regarding the protocol when the United Kingdom Internal Market Bill reaches this House all too soon, on Monday, for scrutiny.
I turn now to Amendment 60, in the name of the noble Lord, Lord Hain, the noble Baronesses, Lady Ritchie of Downpatrick and Lady Suttie, and my noble friend Lady Altmann. As I set out during our debate last week on devolution, the Government have engaged closely with the devolved Administrations and have taken significant steps to improve this Bill. I hope this was made clear in the remarks that I made last week. I would like to take this opportunity to inform your Lordships that the Scottish Parliament consented to grant an LCM to the Trade Bill last week. I hope that this illustrates the close engagement that the Government have undertaken and will continue to undertake with the devolved Administrations.
On Amendment 65, the Government will ensure unfettered access for Northern Ireland goods moving from Northern Ireland to Great Britain, ensuring that businesses and individuals will be able to move goods from Northern Ireland into the rest of the United Kingdom on the same basis as now, while also benefitting from new trade deals. The United Kingdom Internal Market Bill will ensure that businesses based in Northern Ireland have true unfettered access to the rest of the United Kingdom by ensuring that they benefit from mutual recognition and are not discriminated against. This will be the case whatever the outcome of negotiations with the EU.
On Amendment 82, in the name of the noble Lord, Lord Hain, the noble Baronesses, Lady Ritchie and Lady Suttie, and my noble friend Lady Altmann, I am pleased to say the new Trader Support Service—the so-called TSS—that the Government are introducing, will provide an end-to-end service that will guide traders through all import processes. It will provide extensive support to businesses engaging in new administrative procedures resulting from the unique circumstances in Northern Ireland. It is a free service available to all traders moving goods between Great Britain and Northern Ireland and those importing goods into Northern Ireland from the rest of the world.
In response to various questions on TSS, I shall give a little more detail. It will offer the following core services. The TSS will benefit trader education by educating businesses about what the protocol means for them and the steps they need to take to comply with them. Secondly, it will support businesses when submitting declarations and advise them about additional documents and licences they will need; for example, a permit is needed to import endangered species. It will provide a complete service that submits relevant declarations into CDS, submits relevant safety and security declarations into HMRC’s import control system, the ICS, and in some circumstances will transmit transit declarations on NCTS.
In answer to the question asked by my noble friend Lord Lansley, the TSS and its future will be reviewed after two years. My noble friend Lady Noakes asked about costs. She will know, and I want to emphasise, that the TSS is a unique intervention, backed by £200 million of government funding.
I hope that these explanations address your Lordships’ concerns and that they will not wish to press their amendments.
My Lords, I am grateful to my noble friend Lord Stevenson and all those who have spoken in this debate, beginning with my noble friend Lady Ritchie, who speaks with authority as someone affected daily by our decisions in this Parliament. She spoke eloquently about the intricate relationships so carefully and painstakingly built over decades to break down barriers. We must not do anything that reverses that process.
The noble Lord, Lord Lansley, said that he agrees with Amendment 58, but that it is not necessary because it is already in the European Union (Withdrawal Agreement) Act 2020. The noble Baroness, Lady Suttie, rightly argued that in the internal market Bill a part of the protocol is being repudiated. I say with some sensitivity and moderation to the noble Viscount, Lord Younger, that there is a lack of trust regarding the Northern Ireland-Irish protocol situation that has been engendered by the Government themselves.
The Government signed up to a protocol that they are now seeking to undermine through the internal market Bill, breaching international law and breaching trust with Dublin so painfully built over careful decades of negotiation and relationships. The relationship between Dublin and London now is terrible, and I can totally understand that as a former Secretary of State for Northern Ireland. We should never have got into this situation. As the noble Baroness rightly says, it is ironic that a group of cross-party Peers is having to defend what is nominally the Government’s own policy but which they are undermining. That is why these amendments are absolutely necessary.
The noble Baroness, Lady Noakes, said the Trader Support Service would be extended if needed, so why not put it in the Bill through the amendments concerned? If there is a technical issue, the Minister can come back on Report and propose the addition of a regulation allowing the Government to extend it. Presently, it is limited to two years. I am puzzled about the Minister’s response. Effectively, he is saying that he agrees with these amendments in principle, but that on the one hand there is no need for them and on the other there is an opportunity for them later. I say gently to him that there is always supposed to be an opportunity later, but the reality is that by the time later comes it is too late. A trade deal may not have been struck with the EU and the consequences will already be a fait accompli.
My Lords, I thank the noble Baroness, Lady McIntosh, and the noble Lord, Lord Lansley, for their amendments. As the noble Lord, Lord Fox, said, this is a slightly big reach for a group, but it has been worthwhile because we have had a bit of a fishing expedition dressed up as amendments and out of that have come a few fish, so that is quite good. It will be interesting to hear the Minister try to respond in full measure to the noble Baroness, Lady McIntosh, and I am certainly looking forward to that.
The noble Lord, Lord Lansley, has discovered a whole new area of interest with this identification of powers held by Treasury Ministers that are not subject to parliamentary approved procedure. That does sound a little exciting, even at this late stage of the day. We have primary and secondary legislation and now we have tertiary legislation. Perhaps, the noble Lord could speculate when he comes to respond how many more powers are buried deep in arcane laws and subplots that we have yet to discover. I look forward to hearing from him.
My Lords, I do not know about fishing expeditions, but let me turn to Amendment 70 in the name of my noble friend Lady McIntosh of Pickering regarding securing an adjustment period with the EU after the end of the transition period. The Government have been clear, and I have made it clear today and on many occasions over the past few months, as has my noble friend Lord Grimstone, that our priority is to ensure we restore our economic and political independence on 1 January 2021. We want a relationship with the EU that is based on friendly co-operation between sovereign equals and is centred on free trade. As I have said today, that is what we are pursuing.
At the second meeting of the Withdrawal Agreement Joint Committee in June, the Government formally notified the EU that they would neither accept nor seek any extension to the transition period. The moment by when an extension could be agreed has now passed. The transition period will end on 31 December 2020, as enshrined in UK law. Any extension would only defer the moment at which we are in charge of our own destiny. An extension to the transition period would also bind us into future EU legislation without having any say in designing it, but still having to foot the bill as we would still have to make payments into the EU budget. We need to be able to design our own rules in our best interests without the constraints of following EU rules.
The “The UK new start: let’s get going” campaign clearly sets out the actions people and businesses need to take to prepare for the end of the transition period on 31 December 2020. I took note of the speech of the noble Lord, Lord Fox, and he is right to highlight these matters, but I reassure him that businesses have no excuse for not knowing about the matters that need to be addressed. Over the coming weeks, we will be intensifying our engagement with businesses to ensure they are well-prepared to seize the opportunities it will bring.
I turn to Amendment 93. If there is a theme to this short debate, it has been the considerable comment made by a few Peers about free ports or free zones. As one noble Lord said, they are one and the same thing. I thank my noble friend Lord Lansley for his foresight in this area; it was during the 2017-19 Bill that my noble friend raised the issue of free zones, as I remember—and I remember the response from my noble friend Lord Bates at the time. I warmly welcome his support for the Government’s policy in this area.
The Government plan to introduce up to 10 free ports across the UK. I have to disagree with the general sentiments raised by the noble Baroness, Lady Bennett, because these will be national hubs for trade, innovation and commerce, regenerating communities across the UK. They can attract new businesses and spread jobs, investment and opportunity to towns and cities up and down the country. Specific locations will be chosen according to a fair, open and transparent allocation process, which will include significant input from the port, local authority, local enterprise partnership, local businesses, and other local partners, ensuring robust consultation with the local area.
As my noble friend Lord Lansley highlighted, the Government ran a consultation on their free ports proposals earlier this year, and a response was published by the Treasury on 7 October that sets out the final policy in detail. Further policy on the allocation process, including a clear bidding prospectus setting out what free ports will offer and how interested parties may apply, will be announced by the Treasury in due course. I hope that my noble friend will agree that this is my helpful response; the narrative of this story has not quite finished.
My noble friend also raised the issue of the use of free zones in combination with other initiatives, such as enterprise zones. This is an important point, which I am sure that the aforementioned Chancellor and my colleagues in the Treasury have heard.
I turn to the new clause proposed in Amendment 95 by my noble friend Lady McIntosh of Pickering, which seeks to grant powers to reduce costs for the farming sector of complying with legislation related to the import and export of goods, including through minimising veterinary checks and physical inspections. We should be clear that government is already taking all necessary steps to support the farming sector after the end of the transition period. However, first we should highlight that export checks are set by trade partners as a condition of market access, and it is not within the Government’s gift to change these. In relation to import checks, we already carry out important physical checks on EU imports of live animals, and from January 2021 these will continue to be carried out at destination.
Secondly, the Government are committed to supporting businesses at the border after the end of the transition period. An updated publication of the Border Operating Model is now available for businesses and the agricultural sector, while the Government are holding a series of trader readiness forums open to just-in-time businesses. In addition, the Government are planning a series of seminars to support the agricultural sector through any new changes. Of course, noble Lords will be keenly aware of the support that we hope to provide to the agricultural sector through the Agriculture Bill, which, as noble Lords know only too well, is currently proceeding through the Houses.
I recognise my noble friend’s intention to support key businesses at the border, but I assure him that the appropriate actions are already taking place, and that it is important for legislation, such as this Trade Bill, to be passed to grant businesses security and continuity after the end of the transition period. In light of these explanations, I would ask for the amendment to be withdrawn.
My Lords, I have received a request from the noble Lord, Lord Fox, to speak after the Minister.
The Minister said in his repudiation of, or comments on, my points that businesses have no excuse for not knowing what they have to do. At the end of what I said, I asked for some empathy, and I do not think that that is a particularly empathetic response. I shall give two excuses that they might have. One is that dozens of those rules were published only last week and the other is that they might be quite busy trying to keep their businesses alive in the middle of a global pandemic.
The noble Lord makes a very good point and I hope that he will not take this as being unempathetic; I am just making a point that focuses particularly on Brexit and the transition period. Putting aside the obvious huge problems that businesses are facing at the moment, there has been more than enough time—four years—for businesses to prepare. We have done our best to support them during this period.
My Lords, I think my noble friend was doing quite well until that last remark. Saying “four years to prepare” when we have not even heard what the situation will be on the Northern Ireland border is not quite the approach I would have hoped for. My noble friend did not answer the question about the number of available vets. This is a source of great anxiety to many, particularly those with livestock as well as products crossing the border. I hope that my noble friend will be able to put my mind at rest on that at some point.
I agree entirely with what my noble friends Lady Noakes and Lady Neville-Rolfe said with regard to home-produced substitutions. To a certain extent, that should already be happening given that those involved in home-produced food have come into their own during Covid; other priorities are maintaining our existing markets and opening up third-country markets for trade in poultry, other meat and breeding stock.
I agree with the noble Lord, Lord Fox, who said that it is all very well to embrace change, but businesses need to know what that change is before they can do so. Certainly, all the evidence that we have heard as recently as this September, along with a letter that we have followed up with a different department, Defra, as regards the rules for the checks and controls on the borders, make it incumbent on us to get information out as best we can.
I am grateful for the opportunity to debate these issues. I have listened to what my noble friend Lord Lansley said. I just hope that we do not get to the situation that we can see in Luxembourg, which has almost more free zones than it has territory. If my memory is correct, Luxembourg has a very large number of free ports in comparison with the size of that state. However, I find it difficult to share in the enthusiasm of realising our destiny until such time as I am 100% sure of what our destiny will be. With those remarks, I beg leave to withdraw the amendment at this stage.
My Lords, I, too, am extremely sympathetic to these amendments and I congratulate the noble Baroness, Lady Hayman, for bringing them forward. As she argued, trade policy is about much more than trade, and it is truly shocking that the Bill is currently completely silent on climate change and its impact on the environment.
These amendments would encourage the Trade Remedies Authority to take account of our environmental obligations and give advice to the Secretary of State accordingly. As colleagues have previously said, the issues of climate change and environmental protection should be central to all our future considerations of trade policy, but this goes totally unmentioned in the Bill.
Labour believes that achieving our environmental goals, including net zero by 2050, requires action across all areas of policy. For that reason, trade must be included in that, so the TRA should play its part, too. My question is very simple: can the Minister confirm how the TRA will take account of UK environmental obligations, and will he please enable it to give that advice to the Secretary of State?
My Lords, I have already spoken during the course of this Bill of the Government’s commitment to addressing the global environmental challenges that we face. I agree with the noble Lord, Lord Inglewood, that we should continue to debate these very important matters, not just for the UK but for our whole planet. On this at least, the noble Baronesses, Lady Hayman, Lady Jones and Lady Kramer, and I are in full agreement. However, we cannot accept the amendments, and it is incumbent on me to explain why.
Amendment 77, in the names of the noble Baronesses, Lady Hayman, Lady Jones of Moulsecoomb and Lady Kramer, would create a new role for the TRA when it provides advice and support to the Secretary of State, by requiring it to analyse impacts on the UK’s international environmental obligations. This amendment would fundamentally change the function of the TRA, which is being established to act as the UK’s investigatory body for trade remedies. Its core role will be to determine whether to recommend imposing trade remedy measures, in accordance with the rules set out in the relevant WTO agreements. Its role does not and should not extend to providing expertise on the UK’s international environmental obligations. To do so would detract from its function as the UK’s investigatory body for trade remedies. This expertise lies elsewhere across other departments and NDPBs, and requiring the TRA to duplicate it is both unnecessary and wasteful.
I turn to Amendment 83A, in the name of the noble Baroness, Lady Kramer, but spoken to by the noble Baroness, Lady Bowles of Berkhamsted. The amendment would add further criteria to when the Trade Remedies Authority or the Secretary of State consider whether anti-dumping or anti-subsidy remedies meet the economic interest test. Specifically, it would require the UK’s environmental obligations to be taken into account, as far as they are relevant. As with the previous amendment, the primary focus of trade remedy cases is, and has to be, protecting domestic industry from injury where appropriate. Trade remedies cases are not the vehicle for progressing the UK’s domestic or global ambitions on environmental issues, although environmental implications could be considered by the Secretary of State as part of her consideration of whether the measure is in the public interest. On this basis, I would ask that the amendments be withdrawn.
My Lords, I am grateful to everyone who contributed to this short debate. Of course, I am disappointed by the Minister’s response. Ministers at the Dispatch Box—and I do not doubt their sincerity—talk about the Government’s commitments in this area, but we hear more talk about general commitment and less talk about specific actions. Time is running out; we are behind in our own targets for reaching net zero by 2050, and I maintain the view that, as legislators, it is important that we put a climate focus on every policy and piece of legislation. In the area of trade, with its international repercussions, there is an overwhelming argument for so doing. But perhaps we will revert to these issues, and the Bill’s silence on climate issues, at a future date. Meanwhile, I beg leave to withdraw the amendment.
Trade Bill Debate
Full Debate: Read Full DebateViscount Younger of Leckie
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(4 years, 1 month ago)
Lords ChamberMy Lords, I thank my noble friend Lord Rooker for his very good probing amendment. He has a habit of picking up on issues which, on first sight, seem not to be mainstream—but he is absolutely right that this is important, and I think it will be of long-lasting concern.
We believe that the creation of the Trade Remedies Authority is both necessary and welcome, but we are worried that, as presently constituted, the TRA lacks the stakeholder engagement or parliamentary oversight and accountability that would give it the visibility and independence that it needs. To this list, thanks to my noble friend Lord Rooker, we should add the question of transparency. It is up to the Minister, when he comes to respond, to explain how independence and accountability will be achieved without the TRA having the power to publish such information as it sees fit. I look forward to his response.
My Lords, Amendment 80, in the name of the noble Lord, Lord Rooker, seeks to provide additional powers for the Trade Remedies Authority to publish information that it holds and advice it provides to the Secretary of State. This was not an amendment raised during the passage of the 2017-19 Bill, so it is interesting that he has chosen to raise it now. However, I fully recognise his desire to ensure that the TRA is impartial, objective and transparent, and I appreciate the opportunity to debate this aspect briefly. As I have said, the Government share these objectives. As can be seen from the trade White Paper that we published in 2017, they have been our guiding principles in establishing the TRA as an independent body. They are at the very heart of the trade remedies system set out in the Taxation (Cross-border Trade) Act 2018 and in the Bill.
The role of the TRA is to gather and assess information from manufacturers, businesses and others to establish whether there is evidence that trade remedy measures are needed to protect domestic producers from injury caused by unfairly traded imports. The TRA’s decision on whether to recommend the imposition of measures will be dictated solely by the evidence available to it, in accordance with WTO rules, as implemented into the United Kingdom’s own legal system, and nothing else.
My Lords, I thank the noble Baroness, Lady Noakes, for her Amendment 84 in this group, as it gives the Committee the opportunity to examine again the powers being taken by the Government and their agencies in the Bill and whether they are being drafted too widely. The noble Baroness asked some very pertinent questions about the powers being given by the Government to HM Revenue and Customs, not only regarding the compulsion with which any person must comply and the comments made in the other place but on whether this will become a general trawl for all sorts of commercially sensitive data. Under Clause 7(3)(a), regulations may be drawn rather more widely than is considered appropriate.
I will speak to Amendment 85, in the name of my noble friend, Lord Bassam of Brighton, which raises the issue that secondary legislation does not and should not have the power to change primary legislation. Clause 7(4) does this, “among other things”. Paragraph 71 of the Explanatory Memorandum explains that this power is needed to make amendments to the tax primary legislation in order to allow tax returns
“to be amended to include the request for exporter information.”
This probably brings us back to Amendment 84 and compulsion. Would it be an offence to mark the question “not appropriate”? When the words “among other things” are used, how far does that go? If the power is necessary, surely it can be made quite simply in the next Finance Act, maintaining constitutional propriety.
As this is a probing amendment, there is no need to press the point regarding Clause 7(5). Your Lordships’ Delegated Powers and Regulatory Reform Committee did not draw anything in the Trade Bill to our attention, although the Constitution Select Committee discussed the Bill at length in its 15th report. While that committee focused primarily on the Trade Remedies Authority and the devolved Administrations, it drew attention in general to the Government taking presumptive rather than explicit powers. It did not specifically draw attention here to Clause 7, even though powers over taxation have a long history. The Committee needs to seek further clarification and detail on the exporter information being requested in the clause. Can the Minister clarify whether this will be purely financial and whether any guidance on the matter will be published? Could not this information be acquired in a separate request, apart from a person’s tax return? Clause 7(1) seems to suggest that the information required is merely to establish the number and identity of exporters. Is this heavy-handed approach therefore appropriate? I suggest that the information sought goes somewhat wider than that.
The noble Baroness’s Amendments 87 and 88 return to the extent and the wide-ranging nature of the powers. Other speakers in this group have outlined the importance of data to companies. The noble Baroness, Lady Neville-Rolfe, confirmed that data can and does go astray. In a later group we will discuss wrongful disclosure. The noble Baroness, Lady Bowles, spoke against allowing disclosure to be wholly at the Government’s discretion. There are some serious questions here, and I await the Minister’s further comments.
My Lords, I am most grateful to my noble friend Lady Noakes and the noble Lord, Lord Bassam of Brighton, for their amendments and their contributions to the discussions on the Bill and on these amendments. I will take Amendments 84, 85, 87 and 88 together as they are closely related. I hope I will be able to address most of the questions raised this afternoon in this very short debate, notably by my noble friend Lord Trenchard and the noble Lord, Lord Grantchester. If not, I will certainly do so in writing, in particular on the questions raised on the powers and constraints regarding data sharing.
My Lords, I will deal with Amendments 85A and 89A, in the name of my noble friend Lady McIntosh of Pickering, together, as they are closely related. My noble friend has written half my speech, because it echoes her remarks. Both amendments concern legal professional privilege, which, as noble Lords know, is a long-standing principle that protects the confidentiality of communications between lawyers and their lay clients, and vice versa. It enables lawyers to consult and advise their clients, without clients fearing that information will have to be disclosed later.
As a matter of general interest, any person who wishes to consult a lawyer must be free to do so under conditions which ensure uninhibited discussion. I do not believe it has been mentioned in this debate that this principle is recognised and protected under Article 8 of the European Convention on Human Rights. I can therefore provide an absolute assurance to the Committee that the Government have no intention, either now or in the future, of using these powers to seek or share information that is protected by legal professional privilege.
For Clause 7, the information being requested from exporters will be provided voluntarily. This has already been said by me and other noble Lords. That the information is being provided voluntarily is, perhaps, an indication of the Government’s position on minimising burdens and, therefore, not requiring privileged information to be disclosed.
As part of this short debate, it is crucial to make this point: Clause 8 allows for the sharing of data that is already held by HMRC for its administrative functions. Such information cannot, therefore, be subject to legal professional privilege, as it has already been provided to HMRC. However, I understand your Lordships’ concerns about data sharing, and I reassure the Committee about the safeguards we have put in place around the collection, handling and processing of information collected under this clause. In response to the winding-up speech of my noble friend Lady Noakes, who raised concerns despite my remarks, I take this opportunity to confirm that I will write to her and all noble Lords, and put a copy in the Library of both Houses, concerning those reassurances.
The data-sharing powers in this clause are permissive, so all instances of data sharing must be approved by HMRC. Criminal penalties for any unauthorised sharing of data will apply under the existing Commissioners for Revenue and Customs Act 2005. Nothing in the clause permits the disclosure of information that is not otherwise permitted in data protection law, including the Data Protection Act 2018 and the Investigatory Powers Act 2016. A lot of this was said in the remarks on the previous amendment. I hope that this provides the reassurance that my noble friend Lady McIntosh seeks on this point, and that she will withdraw her amendment.
My Lords, I am grateful to those who have contributed and for the support expressed by the noble Baroness, Lady Bowles, and the noble Lord, Lord Bassam. I am slightly concerned by the response of my noble friend Lord Younger. I understand that Conservatives support, and have enshrined in this and other legislation, the European Convention on Human Rights, but it begs the question of what would happen if a future Government were to resile, so they were no longer a signatory to it. This is not beyond the realms of possibility as we leave the European Union. I realise that the Council of Europe is a separate organisation, but it begs the question.
As my noble friend Lord Younger so clearly said in summing up, legal professional privilege exists so that information can be communicated between lawyer and client. I am sure he recognises that many UK statutes already give express protection of legal professional privilege and that it is protected vigorously by the courts. The noble Lord, Lord Bassam, was absolutely right that this is a probing amendment, but my concern is only that, if we do not insert something like this, my noble friend and the Government may face future court cases, in the event of a breach of legal professional privilege. Having expressed these concerns, I beg leave to withdraw the amendment at this stage.
I know it is not in order in these proceedings to have points of order from Members, but a solution, given the very valid point made by the noble Lord, Lord Grantchester, is to allow this pause to happen. It is highly unusual for government amendments to be presented in Committee and for the Minister to indicate that answers to questions raised in Committee will be provided after a vote for them to pass has happened. There is no ability for the House to reflect on the letter from the Minister. A solution would be for the Government not to press these amendments in Committee but to bring them back on Report, which may well happen very straightforwardly. That may well be the solution.
My Lords, I am listening to the various comments from around the House. I am surprised that the noble Lord, Lord Grantchester rose to suggest that he was against us moving the amendments. However, bearing in mind the mood of the Committee, we will withdraw this amendment.
Trade Bill Debate
Full Debate: Read Full DebateViscount Younger of Leckie
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(3 years, 12 months ago)
Lords ChamberMy Lords, I am grateful to the noble Baroness, Lady McIntosh of Pickering, for raising this issue and, through her, to the Law Society of Scotland for reminding noble Lords of some of the detailed points which we often ignore when we put down amendments, particularly at this stage of a Bill’s progress. As the noble Baroness said, and as was picked up by the noble Lord, Lord Purvis of Tweed, some rather unforeseen issues are now arising, particularly in relation to the rollover agreements which were originally intended to be done and completed by 31 December but which, for a variety of reasons, are not going to be. Some of them are being done under emergency power provisions; some will not be done at all. We need to have on the record from the Minister where exactly these will fit in the structure of this Bill. I look forward to his response.
My Lords, I turn to Amendments 2 and 3, tabled by my noble friend Lady McIntosh of Pickering, which seek to restrict the Clause 2 power so that it can only be used to implement agreements which are “wholly or substantially similar” to previous EU agreements. I can assure noble Lords that all the continuity agreements that we have signed to date have stayed true to our mandate of replicating the predecessor EU agreements, and that will not change for those that we are yet to conclude.
As noble Lords know, we have voluntarily published parliamentary reports for your Lordships’ reference alongside every continuity agreement, which outline any differences required to make the agreements operable in a UK context. As those reports show, none of our continuity agreements have diverged significantly from previous EU agreements. None of the debates in which these agreements have been discussed has resulted in a negative resolution. During the passage of this Bill, we have heard suggestions that the Government are delivering agreements which go above and beyond continuity, and that a more extensive scrutiny process is therefore required for them. The evidence is clear that this is not the case. We are seeking only technical changes to make agreements function in a UK-specific context, meaning that the current scrutiny measures are fit for purpose. I know that noble Lords will point to the recent UK-Japan CEPA. It is correct that that agreement goes further than the EU-Japan EPA in areas including digital trade. However, as your Lordships are aware, as the Government knew that this agreement would go beyond continuity, we provided enhanced parliamentary scrutiny of it.
Setting the UK-Japan CEPA to one side, your Lordships will appreciate that technical changes are required in some areas to allow agreements to work in a UK bilateral context. In these circumstances, the Clause 2 power could be used to make technical changes to UK domestic law to ensure the obligations under the agreement are met. The power in Clause 2 is therefore essential to allow us to implement in domestic law the obligations that arise from continuity agreements. The substantially similar wording is unfortunately ambiguous and could lead to uncertainty as to whether a trade agreement could be implemented via the Clause 2 power. The effect of this could be a possible disruption to concluding and implementing continuity trade agreements, potentially resulting in a gap in preferential trading relationships after the end of the transition period.
To paraphrase what the noble Lord, Lord Purvis, and my noble friend Lady McIntosh, said, they asked: “Why not put this on the face of the Bill, and if the power is not needed to transition trade continuity agreements, why do we need it at all?” As stated in the impact assessment and Explanatory Notes, the Trade Bill is not needed to transition trade continuity agreements themselves. However, the power will provide the implementing powers necessary to fully implement trade continuity agreements over time and in all circumstances. The Clause 2 power is intended to be used only to ensure that a limited number of obligations in these trade continuity agreements, particularly in relation to procurement and mutual recognition, are fully implemented in domestic law via secondary legislation.
I hope that with those explanations, my noble friend Lady McIntosh is reassured that our use of this power will be limited to continuity agreements that faithfully replicate predecessor EU agreements. As a result, I ask my noble friend to withdraw her amendment.
I am most grateful to my noble friend Lord Younger of Leckie. With the reassurance he has given me that any agreement will be a continuity agreement and will “faithfully replicate” its predecessor, and with the further reassurance—which I would like to write into the record if I have understood it correctly—that if any future continuity agreement, such as the Japan CEPA agreement, will go further, there will be “enhanced parliamentary scrutiny”, I beg leave to withdraw my amendment.
I am so sorry. I am seeking clarification as to whether it is the Government’s intention to withdraw Amendment 36 this evening.
Perhaps I can help my noble friend. The Minister is happy with what he has said, and I urge my noble friend to draw her remarks to a close.
My Lords, I will not detain the House for too long because I made my comments in the previous debate about my support and that of the Opposition for this amendment. I thank the noble Lord, Lord Alton, and particularly my noble friend Lady Kennedy of The Shaws for their interventions.
I will single out two contributions. One is that of the noble and learned Lord, Lord Hope, who has presented us with very clear arguments about why this argument should go to the Commons and why the Commons should consider it. The other is that of the noble Lord, Lord Forsyth, because he is right: we have to respond to the government mantra that we have heard so many times: “It has to go to a competent court”. If that is the response, then, as the noble Lord, Lord Forsyth, said, let the Commons decide. That is what this House can do tonight.
My Lords, we have had a very long debate, and it is now my job to address the amendment in the name of the noble Lord, Lord Alton.
I have listened very carefully to the speech of the noble Lord, and noted that he has raised the subject of genocide—a heinous crime—more than 300 times, which is remarkable. I applaud his persistence and I wish that I could be the Minister to provide an answer—perhaps the 301st—that gives the necessary satisfaction to him, and to other distinguished noble Lords who have taken part in this very interesting debate. There have been some very moving and passionate speeches and we have had quotes from around the houses, ranging from Robbie Burns to—I should mention this—the very great, late Lord Sacks.
I do not advocate repeating the points made so eloquently by my noble friend Lord Grimstone in a previous group, so my remarks—I hope that the House will forgive me—are necessarily short. I will, however, quickly re-emphasise that the Government share wholeheartedly the concerns underpinning this amendment. My noble friend Lord Cormack referred to global Britain, as did a number of other Peers. The UK has also long supported the promotion of our values globally, and remains committed to its international obligations. We are clear that more trade does not have to come at the expense of human rights. This includes clauses in our trade agreements with many developing and emerging markets: suspensive powers in our trade preferences regime and recourse to trade levers through our sanctions policy.
The UK has played a leading international role in holding China to account for abuses, in particular those reported as taking place against the Uighur Muslims—which, again, was a theme during the debate this evening. We have led joint statements at the UN’s human rights bodies and underlined our concern directly to the Chinese authorities at senior levels. We have also repeatedly urged businesses that are involved in investing in Xinjiang or which have parts of their supply chain in the region, to conduct appropriate due diligence to satisfy themselves that their activities do not support any human rights violations or abuses. We have reinforced this message through engagement with businesses, industry groups and other stakeholders. Under the Modern Slavery Act the UK became the first country in the world to require businesses to report on how they are tackling modern slavery in their operations and supply chains.
This amendment seeks to give the High Court of England and Wales powers to revoke trade agreements where the court holds that another signatory to the relevant agreement has committed genocide. I was grateful to my noble friend Lord Lansley, who not only alluded to this in the last group but—as I know, though I came in slightly late—in this group too. He made some very helpful and interesting points. I listened carefully to all the speeches but, despite the very strong arguments that were presented by the noble Baronesses, Lady Kennedy and Lady Smith, and a few other noble Lords, the Government have serious concerns about this approach, some of which were touched on in the previous groups, as my noble friend Lord Grimstone iterated most strongly in his remarks.
The key point is that this would strike at the heart of the separation of powers in Britain’s constitutional system, allowing the High Court to frustrate trade agreements entered into by the Government and ratified after parliamentary scrutiny. The noble and learned Lord, Lord Hope, raised a point about the separation of powers and the role of the courts. The Government’s position has consistently been that only a competent court should make determinations of genocide, and this does not entail the courts having the power to revoke trade agreements. State genocide is very difficult to prove in the judicial context—the evidential threshold is very high, and proceedings tend to be long and costly but the amendment would make it simple to bring vexatious allegations of genocide to the court as a means of putting political and international pressure on the Government.
Perhaps I may take up a point raised, in part, by my noble friend Lord Cormack. I remind the House, a bit like a long-playing record, that the Bill focuses on continuity agreements, but I would like to say a word about our approach to free trade agreements. We do not see a choice between securing growth and investment for the UK and supporting human rights. Our experience is that political freedom and the rule of law are vital underpinnings for both prosperity and stability, and that by having a strong economic relationship with partners, we are able to have open discussions on a range of very difficult issues, including human rights. Despite our varying approach to agreements with partners, we will always have open discussions on a range of issues, including human rights.
As my noble friend Lord Grimstone said earlier, we have provided extensive information to Parliament on our negotiations, including publishing our objectives and economic scoping assessments prior to negotiations beginning. We continue to engage closely with the relevant scrutiny committees—namely, the International Trade Committee in the House of Commons and the International Agreements Sub-Committee in the House of Lords.
Just before I conclude, I want to say something about China, because many references were made to that country. I say at the outset—as noble Lords would expect me to say—that China is an important economic partner for the UK. UK/China trade is currently worth approximately £76 billion. China is our fourth-largest trading partner, the sixth-largest export market and the third-largest import market. Currently, we have no plans to commence free trade agreement negotiations with China. Having recently concluded an agreement with Japan, our current priorities, as my noble friend Lord Grimstone has said on many occasions, are the US, Australia and New Zealand, as economies more similar to our own. Looking ahead—again, as my noble friend has said—we are committed to seeking accession to the CPTPP.
I do not want to delay the House any longer and the hour is late. In the light of the legal difficulties and unintended consequences, I ask the noble Lord to withdraw his amendment.
My Lords, I am grateful to the noble Viscount for his response to the debate. He would not expect me, though, to accept the tenor of his arguments, nor would the House expect me to speak at any length at the conclusion of this debate, because I know, as the noble Baroness, Lady Meacher, was right to remind us, that we would like to move to a vote.
Let me make just two points. Anyone who doubts the point of the House of Lords should read the speeches tomorrow in Hansard, because it has been a remarkable debate on all sides. Good, constructive points have been made, and people have quite rightly said no amendment is going to be perfect and any amendment can be refined and improved. That is the purpose of this place—it is the point of our existence. If we send this amendment to the House of Commons, it can continue to be worked on and those issues can easily be addressed.
During the debate, a number of noble Lords, including the noble Baroness, Lady Smith, and the noble Lord, Lord Polak, mentioned Rwanda. I visited the genocide sites in Rwanda; I went to a place called Murambi, where 56,000 people had been killed. I saw the skeletons of pregnant women with their children in what had been a college but had been turned into a memorial for victims of that violence. The noble Lord, Lord Hague of Richmond, as William Hague, our Foreign Secretary, spoke at the 20th anniversary of the Rwandan genocide, and he said:
“It is not enough to remember; we have a responsibility to act.”
It is not enough to remember. We have a responsibility to act.
During the Second World War, Dietrich Bonhoeffer, a renowned theologian, defied Hitler and the Reich. He was sentenced to death and executed. He famously said:
“Not to speak is to speak. Not to act is to act.”
Now is the time to act. I would like to test the opinion of the House.
My Lords, this has been necessarily a short debate, but it has been an incredibly high quality debate. We have heard, from all the speakers, a high level of understanding of the issue and the dangers that Amendment 11 is seeking to address. I speak as one of those who signed Amendment 11. I support Amendment 43 and congratulate my noble friend Lady Sheehan on her eloquent presentation, but I am going to focus on Amendment 11 because it is a really important issue. We heard a lot about data from people who know a lot about data.
Sitting above this is the fact that the Government have no published cross-border data transfer policy. Without that, it seems as though each trade deal will be a series of negotiations without a framework. The noble Lord, Lord Freyberg, and my noble friend Lord Clement-Jones set out the benefits of having constraints and frameworks for this. It is clear from the Japan trade deal that the Government have indicated a level of flexibility around data. Once that has been delivered for one trade deal, it becomes a necessity for the next—and a bit more and a bit more. Even if that is not what will happen, I am sure the Minister understands that this fuels the fires of people’s suspicion and concern about the way in which data is being treated in this country.
From his position of great knowledge, the noble Lord, Lord Patel, set out some specific examples—not of a trade deal but of trade in this country—where data is already being parlayed. One things that has not been said is that, for patients to consent to their data being used, they have to believe that there will be a benefit. They do not want that benefit to flow across these borders through trade; they want it to accrue to the NHS. That is why Amendment 11 is important, and why I hope that it goes to a vote shortly and gets the support of Members from these Benches and beyond.
The noble Baroness, Lady Thornton, spoke very clearly in moving this amendment. Like me, she recognises the benefits of trade, but only when health takes the central place in our trade policy. That is what Amendment 11 seeks to achieve.
My Lords, I will now address Amendment 11, tabled by the noble Lords, Lord Freyberg, Lord Patel and Lord Fox, alongside the noble Baroness, Lady Thornton. This amendment would place a range of restrictions on the regulations that we can make to implement continuity agreements. I will be relatively brief and will write to all noble Lords who asked questions to be sure that they are answered.
New subsection (2), proposed by this amendment, stipulates that regulations can be made only using Clause 2 of the Trade Bill if the agreement does not undermine the way in which the NHS is delivered, operated or regulated, but we believe that the conditions set out in subsection (2) are unnecessary. We have demonstrated time and again that we are not selling off the NHS, and this will not change.
I listened carefully to the remarks of the noble Lord, Lord Freyberg. In response, the Government are clear that health and care data should only ever be used or shared where it is used lawfully, treated with respect and is held securely, with the right safeguards in place.
The conditions set out in proposed new subsection (3) would defeat the purpose of having a Clause 2 power. It stipulates that no agreement can be implemented through Clause 2 regulations, unless it contains a range of explicit exclusions and inclusions in the text of the agreement. Importantly, this would effectively prohibit the implementation via Clause 2 of any continuity trade agreement that the Government have signed, which does not explicitly meet these requirements, even though this amendment did not exist at the time of their negotiation. Every single continuity agreement that we have negotiated over the past three years would be left null and void, without an implementing power. We would be forced to reopen negotiations with every single continuity partner, which would no doubt be used to extract costly concessions.
Rigorous protections for public services can be achieved in both positive and negative lists in services and investment schedules for FTAs. The sectoral commitments outlined in a schedule are only one part of a tapestry of protections for public services, which can also include scope exclusions and exceptions set out elsewhere in the FTA. The UK is party to agreements that use both positive and negative lists, and neither outcome has interfered with the Government’s right to regulate and ability to protect public services.
This amendment would also place a new requirement for exclusions on the sale of patient data—another condition that was not in place at the time of negotiation. There are already strict legal, privacy and security controls on how companies can use patient data, including principles set out by the National Data Guardian and the common law of confidentiality. We have clearly set out our principles governing data-sharing agreements entered into by NHS organisations, published in July 2019.
Finally, subsection (4) of this amendment stipulates that regulations can be made using Clause 2 of the Trade Bill only if they allow for the scrutiny of
“medical algorithms, technology or devices”
with respect to their
“methodology for processing sensitive data”.
I reassure your Lordships that before any medical device can be placed on the UK market it must be compliant with the Medical Devices Regulations 2002, which cannot be superseded by a trade negotiation without further legislation.
I now turn, quickly, to Amendment 43, proposed by the noble Baroness, Lady Sheehan, and the noble Lords, Lord Purvis of Tweed and Lord Alton of Liverpool. It would mean that the commencement power in Clause 32 could be used only to commence the substantive provisions of the Trade Bill if they do not restrict UK citizens’ access to medicines, if they do not curtail the Government’s power to use the safeguard provisions of the agreement on trade-related aspects of intellectual property rights, if they do not delay the market entry of lower-priced generic health technologies and if they do not lower the bar for patentability. Similar to Amendment 11, it also seeks to exclude health-related matters from the scope of ISDS provisions.
I also note that the voluntary scheme for branded medicines pricing and access—the so-called VPAS—which is the latest voluntary pricing scheme negotiated with industry, will continue to control the prices of branded medicines and their cost to the NHS. The VPAS runs in conjunction with the statutory pricing scheme, NHS England and NHS Improvement commercial arrangements, and the process for NICE appraisals. The 2019 VPAS will run until 2023 and, through a series of measures, supports patient access to innovative new medicines.
Furthermore, the UK remains committed to the Doha declaration on the TRIPS agreement and public health, which recognises the right to public health and the importance of intellectual property protection, while noting that the flexibilities contained in the IP system can be enacted to address public health needs. In addition to our commitment to our international obligations, we will also be bound by IP provisions designed to facilitate public health that are enshrined in domestic law. For example, the Patents Act 1977 provides for compulsory licensing in the unlikely circumstances that this is required. With that, I ask noble Lords not to press their amendments.
My Lords, I thank noble Lords very much for the support that the amendment has received from across the House. I listened carefully to the Minister but was not at all convinced by what he had to say. It seemed to boil down to two things. The first was that nothing should change because you might have to change other agreements—which is clearly nonsense in this day of technology. Secondly, if the Minister really cared about the NHS and data protection, the Government should write their own amendments to the Bill, instead of having the rest of the House do it for them. On that basis, I wish to test the opinion of the House.
Trade Bill Debate
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(3 years, 11 months ago)
Lords ChamberMy Lords, it is a pleasure to follow the noble Lord, Lord Cormack, who often dominates our proceedings from his position on the Conservative Benches—even when he is not physically present, he still has a lot to contribute. He put his finger on a number of important points in this short debate on the mobility sector.
The noble Baroness, Lady Noakes, as she is often wont to do, accused everyone who spoke in support of this amendment of trying to relive the Brexit debate. I hope that, when she reads the debate properly in Hansard and reflects on what has been said in response to her already, she will realise that that is way off course. My noble friend Lord Foulkes put it in his traditional bullish way, but he had a point. We are looking to a future that is not the same as the past, but a future with a significant disjuncture—the leaving of the EU—and this is here so that we can think again about how our future economic prosperity can be lodged in the things that make Britain a very successful economy, when we get it all right.
In introducing the amendment, the noble Lord, Lord Fox, made a number of key points in support of his argument. The best was about how this suggestion for mobility must sit in the context of our services industries, which he and others pointed out are the majority part of our economy. He also said—it is very important to bear this in mind—that most trade in physical goods these days has a services component. We have heard examples in recent debates about Rolls-Royce; although it supplies bits of parts and elements for aircraft and other machinery, it mainly makes its money from the service contracts accompanying them. The key to delivering that is flexibility so that, as the noble Lord, Lord Fox, put it, people are happy with the product they buy. There are cultural and social benefits as well.
The noble Earl, Lord Clancarty, and the noble Baroness, Lady Bull, made very powerful arguments in support of our creative economy. I liked the phrase used by the noble Baroness, Lady Bull—the “human-gathering industries”. It is the first time I have heard that, but it may be more common in other debates and discussions. Our ability to create economic activity around the interaction of people clearly depends on people being able to move around and join together. Hospitality and other service industries rely on that, and it is very important that we get that right; it is what we do best in this country. We make most of the money that keeps our services going through that, and we must make sure that we have the right circumstances for it.
The narrow point about the cultural industries was, of course, made strongly by the noble Earl, Lord Clancarty. He has a long and distinguished record of saying important things about the creative industries in your Lordships’ House, and we should listen to him. It is a key sector of our economy and, of course, it depends on people travelling to perform or create in a way that is not true of many other traditional industries, but that is no reason to discriminate against it—indeed, we should do the opposite.
The old system we used to operate under, successfully, for many years has gone. We have to think about the new one, and we should not erect barriers to that. I am sure that the Minister will deal in detail with the points made when he responds, but will he answer a particular question that I have? It is noticeable that the free trade agreements being negotiated by his department, such as the recently signed Japanese agreement, often have a mobility component. Can he confirm that that is likely to be a feature of many of the free trade agreements going forward and, if so, in what way will that assist the noble Lord, Lord Fox, and those who have supported him in this debate?
My Lords, I start by giving my sincere thanks on behalf of the House to the technical staff for—how should I put it?—rebooting the House successfully. We remain indebted to them for their essential, continuing support.
Turning to Amendment 13, tabled by the noble Lord, Lord Fox, as I outlined in Committee, the Government have made it clear that our priority is to ensure that we restore our economic and political independence on 1 January 2021, as my noble friend Lady Noakes iterated. The rather depressing “new normal” that the noble Lord, Lord Wigley, outlined plays no part in our vision. I say to the noble Lord, Lord Foulkes—I think I have pronounced his name correctly—that we do need to move away from talking about Brexiteers and remainers. As the noble Lord, Lord Stevenson, said himself, we should look forward, because we want a relationship with the EU which is based on friendly co-operation between sovereign equals and centred on free trade.
We know that it is important for businesses to be able to send their employees to deliver services on a temporary basis. This was reflected in the debate in Committee, where several noble Lords noted the importance of these arrangements for service industries, which are a crucial part of the UK economy, as the noble Earl, Lord Clancarty, emphasised. I would like to pick up on his remarks, as well as those of the noble Baroness, Lady Bull. They are both absolutely right: there is a lot of talk, correctly, about the creative industries and, in particular, the importance of orchestras going on tour. This includes EU orchestras coming to the UK and touring here, and, equally, UK orchestras touring around the EU. It is very important indeed that that should continue, as well as in respect of touring companies. As I said in Committee, we are open to negotiating on the EU reciprocal arrangements that would and should allow this to happen, building on the provisions that are standard in trade agreements. By the way, this should include allowing lawyers practising both in the UK and the EU to have reciprocal arrangements, an issue raised by my noble friend Lady McIntosh.
A reciprocal agreement based on best precedent will mean that, on a short-term basis, UK citizens will be able to undertake some business activities in the EU without a work permit. This would also apply to EU citizens making business visits to the UK. Task Force Europe, led by Lord Frost, is negotiating the precise details, including the range of activities, the documentation needed and the time limit. I was interested in the good example given by the noble Lord, Lord Fox, of German technicians needing to come to the UK, often urgently, to undertake work over here. I suspect that this may come from his experience in the aerospace industry. As he will know, the commitments on mode 4, which sets out the terms under which businesspersons can move between trading partners, are a feature of every free trade agreement that covers services.
My Lords, this has been a very good debate, and we have ranged far and wide across the issues raised originally by the noble Lord, Lord Oates, and picked up later by the noble Baronesses, Lady Boycott and Lady Bennett, with their amendment. The noble Lord, Lord Oates, makes good points about future trade agreements needing to tie us to the net-zero carbon and other environmental standards that we have and points out the need for consistency of government policy across all the areas involved, not least trade, to achieve that. We need to think very carefully about how our new trading agreements, which the Government are very keen to see signed, and which we support, will use the climate change focus as they move forward.
When the Minister responds, he will undoubtedly say that we have very high standards and will never negotiate them away, but he must admit that the Agriculture Act 2020 has a non-regression clause covering environmental issues. So we look to him to reassure us that our standards are high and will not be diminished, but also to say why he is not prepared to see these broader issues, such as the environment and others, included in the Bill, because that seems to be how the Government are thinking with this policy.
Other noble Lords who have spoken in the debate have argued that we should do more than simply respect our own standards in the trade agreements and deals that we want to do. The noble Baroness, Lady Boycott, was very strong on the need to live up to our role as a leading advocate of decarbonisation and to lead the way for others. Again, her argument was that putting that in the Bill would be key, since it would show the world not only that we have the arguments and are practising what we preach but that we have a proselytising role to play in relation to the wider world.
It was good to hear the noble Earl, Lord Sandwich, and the noble Lord, Lord Curry, supporting points that have been made in this debate—particularly the view of the noble Earl that there are very few doubters left in Parliament. He may be wrong about that; I think there are one or two scurrying around. He also points out that the department has a bit more to do before it is walking the walk. We should think about that. He made a good point about the recent agreement with Japan and the lack of alternative energy proposals within it. The noble Lord, Lord Curry, also made a good point about how not just farmers, whom he mentioned, but the wider public want the Government to reach further on this to find zero-carbon targets in all that they do—and that of course applies to imports.
I look forward to hearing the noble Lord’s response. He will understand that we think we will come back to this, perhaps not in the form of this amendment but on other related issues about non-regression of standards, as we progress through the Bill.
My Lords, Amendment 14 in the names of the noble Lords, Lord Oates and Lord Purvis, alongside the noble Baroness, Lady Boycott, seeks to prevent the Government from signing international trade agreements or laying an international trade agreement under CRaG, unless they confirm to Parliament that the agreements are compliant with domestic and international environmental obligations.
I assure noble Lords that we remain firmly committed to upholding high environmental standards. We understand and share the public’s concern about protecting our natural environment. Having been lucky enough to visit both Antarctica and the high Arctic in the last five years, I can relate to the remarks of the noble Baroness, Lady Boycott, who cited Sir David Attenborough’s deep concerns about our planet. She is right and he is right. I have seen climate change for myself and it is real.
I take great pride in stating again that none of the 28 agreements signed with 57 countries has diluted standards in environmental protections. We have voluntarily published parliamentary reports for your Lordships’ reference, alongside every continuity agreement, which provide evidence of our commitment to environmental protection and sustainability. To be helpful to the noble Lord, Lord Curry, over 130 hours of debate on the Bill and its 2017-19 predecessor, no Peer or Member of the other place has been able to identify a single example of any of our continuity agreements undermining our domestic or international environmental obligations. I do not believe that any example was provided in this debate either. My noble friend Lord Trenchard made this point in a powerful speech, and I believe he is right.
The Government have been very clear that any future trade agreements must uphold high standards in the protection of the environment. We will not compromise on this. I remind your Lordships that the EU (Withdrawal) Act already provides legislative underpinning by transferring the EU’s rigorous standards on environmental protection and sustainability on to the UK statute book in full. Our high regulatory standards are not dependent on EU membership.
The remarks of my noble friends Lady McIntosh and Lord Trenchard hinted at our approach. We are using trade policy to promote the clean growth and climate change objectives of Her Majesty’s Government, helping to deliver the full economic benefit of the UK’s shift to a low-carbon economy. The energy White Paper, published just this week, underlines our ambition in this space, and your Lordships will be aware that a Statement will be repeated in the House tomorrow on this very subject.
The UK has often been a leader in the development of environmental standards, and we go significantly further than our trading partners. The UK was the first country in the world to introduce legally binding greenhouse gas emission-reduction targets through the Climate Change Act 2008. We were also the first major economy in the world to set a legally binding target to achieve net-zero greenhouse gas emissions across the economy by 2050. In our outline approaches to free trade agreements with the US, Japan, New Zealand and Australia, we have committed to securing provisions that will help trade in low-carbon goods and services, supporting R&D and innovation in sectors such as offshore wind. My noble friend Lord Sheikh cited the importance of this sector in his remarks.
The UK is already a global leader in offshore wind, with the largest installed capacity in the world. The UK aims to produce enough offshore wind to power every home, quadrupling how much we produce to 40 gigawatts by 2030. The UK could also establish a first-mover opportunity to develop advanced operations and maintenance services in wind farm decommissioning, which could become a £53 billion market by 2050.
Additionally, as many noble Lords are already aware, on 18 November, the Prime Minister—who by the way is taking a lead—set out his 10-point plan for a green industrial revolution. Covering clean energy, transport, nature and innovative technologies, the Prime Minister’s blueprint will allow the UK to forge ahead with eradicating its contribution to climate change by 2050. All of this will come in the year that the UK chairs the COP 26 summit in Glasgow, as the noble Baroness, Lady Bennett, mentioned.
These are not the actions of a Government intent on reducing environmental standards—far from it. This is one of the most ambitious climate agendas in the world. I wholly disagree with the noble Lord, Lord Oates, who said that we just offer warm words on climate change and no action plans. He could not be further from the truth on this. I was particularly pleased to see that the former Vice-President Al Gore, either today or yesterday, praised the UK’s leadership in banning the sale of petrol and diesel vehicles by 2030.
I remind your Lordships that we are seeking only to replicate EU trade agreements to which we already enjoy access. If this amendment applied to our continuity programme, it would result in up to 40 ministerial Statements, all of which would be nearly identical, confirming that we are replicating the status quo.
Amendment 21 is in the names of the noble Baronesses, Lady Bennett and Lady Boycott. As I have explained, our continuity agreements, the implementation of which is provided for by the Bill, are fully aligned with environmental obligations such as the UN sustainable development goals and the Paris climate change conference, and will remain so, as the Bill seeks to replicate existing EU agreements. It is indeed good news that President-elect Biden has iterated his support for the Paris Agreement, as the noble Lord, Lord Foulkes, remarked.
ClientEarth, the Trade Justice Movement, the NFU, the CBI and others all agree with the objectives of this work. As set out in the 25-year environment plan, our ambition is to be the first generation to leave the natural environment in a better state than we found it. As I reassured your Lordships not long ago, our continuity agreements are in full compliance with every other international convention named in the amendment, whether it was passed at the UN level or through other multilateral fora.
This amendment would also require the publication of an environmental report for every continuity agreement that we signed, and then additional update reports to be tabled every 12 months. This would result in over 100 reports over the lifespan of this Parliament, for a set of continuity agreements that simply replicate existing FTAs to which we are already a party. Surely noble Lords will agree that this is neither necessary nor proportionate. I listened carefully to the remarks of the noble Baroness, Lady Hayman, but I will have to write to my noble friend Lord Caithness, who asked questions about what the reports were, where they were coming from and whether they would report on health and the environment. I pledge to do that.
We already publish a parliamentary report alongside each agreement laid under CRaG, setting out our approach to delivering continuity, and will continue to do so for all remaining continuity agreements that we sign. These reports confirm our replication of sustainability chapters in EU agreements.
The Government have always been clear that we are wholly committed to the preservation and improvement of the environment. The continuity agreements we have signed thus far maintain our commitment to vigorously defending and upholding environmental standards. As such, I ask the noble Lord and noble Baroness not to press their amendments.
My Lords, the next business on the Order Paper is the repeat of a Statement on Covid-19.
My Lords, therefore, with the leave the House, I beg to move that the repeat of the Statement on Covid-19 be postponed until after consideration of the United Kingdom Internal Market Bill.
Trade Bill Debate
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(3 years, 11 months ago)
Lords ChamberMy Lords, I am very grateful to my noble friend Lord Hain for pursuing these issues of such immense importance to the lives and prosperity of the people who live on the island of Ireland. I thank all those who have contributed to this rather good debate on the issues he raised. As the noble and right reverend Lord, Lord Eames, reminded us, successive UK Governments of all political colours have supported the people of Ireland and the peace process.
These amendments speak to that history. The Northern Ireland protocol is now the definitive statement about how trade in goods, but not services, is to be organised going forward. However, as my noble friend Lord Hain said, it must be supported, and, as the noble Baroness, Lady Ritchie, reminded us, it is really complicated. Amendment 26, which we support, raises how future UK FTAs will impact trade in goods and services in Northern Ireland, with particular reference to any discrimination which might arise, directly or indirectly.
The Minister will almost certainly say that we should not worry and that all the issues raised today are covered. Indeed, the noble Baroness, Lady Neville-Rolfe, urged us to move on. However, as my noble friend Lord Hain said, future free trade agreements may well raise issues, and he is right to insist that this Bill makes the position crystal clear. As the noble and right reverend Lord, Lord Eames, warned us, the absence of such a clause may have a disproportionate impact on the current situation. We should heed carefully his words about fear and uncertainty ahead and do what we can to mitigate it.
I agree with the noble Lord, Lord Cormack, that the Government should offer to bring this issue back at Third Reading, but I am not optimistic. If they do not, we will support my noble friend Lord Hain if he decides to divide the House.
My Lords, I thank the noble Lord, Lord Hain, the noble Baronesses, Lady Ritchie of Downpatrick and Lady Suttie, and my noble friend Lady Altmann for their amendments.
Amendment 17 strives to make the ratification of any future UK-EU trade agreement conditional on compliance with the Northern Ireland protocol. As noble Lords will be aware, and as the noble Lord, Lord Hain, himself has said, we have been overtaken by events—I think the word used by the noble Baroness, Lady Ritchie, was “eclipsed”—and the EU-UK trade and co-operation agreement has now been ratified. Noble Lords will also be aware that we remain fully committed to implementing the Northern Ireland protocol.
However, I am happy to provide further reassurances in my remarks today—I hope I will be able to do so. Our commitment is demonstrated by the agreement we have reached with the EU in the withdrawal agreement Joint Committee on the implementation of the Northern Ireland protocol. To reassure my noble friend Lady McIntosh, this upholds unfettered access for Northern Ireland businesses to their most important market, eliminating any requirement for export declarations for goods moving from Northern Ireland to Great Britain. It safeguards Northern Ireland’s place in the UK’s customs territory, establishing the platform to preserve tariff-free trade for Northern Ireland businesses, protect internal UK trade and maintain the UK’s VAT area.
On the question raised by my noble friends Lady McIntosh and Lady Neville-Rolfe on supermarkets, the Government acknowledge there are some teething issues and are working closely with the relevant stakeholders to urgently iron them out. The issues are being addressed, to give some reassurance.
My Lords, like others who have spoken, I recall that I have spoken several times on similar amendments to this Bill, the then Agriculture Bill and the then United Kingdom Internal Market Bill. I do not intend to repeat previous speeches, but rather to challenge the Government to wake up and smell the coffee. Because, in spite of paying lip service to the contrary, Ministers have been careless or dismissive of the concerns of the devolved Administrations and clearly disregard the impact of this insouciance, coupled with incompetence, on the mood across the devolved Administrations, which has hardened. If they had a voice, mind you, I suspect that that mood would be articulated by a number of English regions as well.
Before we got here, the interconnection of the EU, the UK and devolved decision-making worked pretty well, but the transition to the UK outside the EU is clearly having a disruptive effect. The rise in the support for separatism, which has been commented on across the devolved Administrations, has been driven by the combination of incompetence and scathing indifference to the concerns of a growing number of our citizens. The combination of Brexit, the Covid pandemic and an ideological, right-wing Government has created a toxic mix that is putting the future of the UK as a working enterprise at grave risk.
I believe there is a positive case to be made for the United Kingdom, and for the benefits to all its parts of staying together, but it will not be achieved by London-centric English exceptionalism. All the peoples of the UK benefit from both our own achievement in developing the Oxford AstraZeneca vaccine and the UK’s ability to secure significant quantities of this and other vaccines and begin the process of distributing them fairly, on a pro rata population basis, to all corners of the kingdom. The resources of the UK have delivered furlough to millions and survival support to businesses to try to get us through the crisis, and that has reached all corners of the UK.
Our security and defence capacity and diplomatic reach across the world may not be appreciated on a day-to-day basis by the average citizen, but they would certainly be missed if they were disrupted by the break- up of the UK. So that is a warning. It is the case, unfortunately, that much of this has been compromised by the Government’s cavalier disregard for international law, the surrender of many of the hard-won advantages and influences we had secured through the EU and the cut to our aid budget—much of it administered, as it happens, from Scotland.
The defeat of President Trump and the election of the new, more constructive and engaging Administration in the United States surely demonstrate that we should not lightly throw away the things we share across the United Kingdom just because we dislike or even despise the current Prime Minister and his self-serving cronies. However, with elections in Scotland and Wales in May, the Government need a desperately urgent reset of their stance towards the devolved Administrations. As has been said, the fact that trade policy and, more pertinently, trade treaties are reserved does not justify excluding Scotland, Wales and Northern Ireland from having a say in shaping them.
The noble Viscount, Lord Trenchard, may be right in saying that the negotiation of these treaties is a reserved matter exclusive to the Executive, and that this amendment is unhelpful, but I say to him very gently that I think he is totally failing to understand the mood that is growing in the devolved Administrations about this approach. If the UK Government could secure more preferential access, for example, for Scotch whisky into India, it would be a cause for rejoicing—but not if at the same time we saw a relaxation of standards for imported beef. So the devolved Administrations would first want to have a positive input into the things they wanted to secure, as well as a protective input and concerns about agreements that might damage significant parts of their interests in the economy. Surely the UK Government should seek to represent the whole of the UK in their approach to trade negotiations and agreements.
So I support the basic aims of this amendment tabled by the noble Lord, Lord Stevenson, and the noble Baroness, Lady Bennett. It is, I believe, weakened by proposed new subsection (5) which, although requiring the UK Government to seek the consent of the devolved Administrations, allows that to be set aside. However, I understand that that has been put in in a spirit of compromise. Personally, I would prefer some form of qualified majority voting, and also a way of testing the interests of English regions. Unless the Government respond to the spirit of this and similar amendments, by engaging much more positively with the devolved Administrations, they will face a constitutional crisis on top of the pandemic and Brexit—a perfect storm.
I say to Ministers that they should recognise that this has been a growing movement since the Brexit scenario has developed and the legislation relating to it has come forward—on agriculture, trade and the internal market. As has been clearly stated, we have tabled and supported a series of amendments seeking to secure the role of the devolved Administrations in the decision-making process. If the Government choose to disregard that, they will only be fuelling the centripetal pressures on the future of the United Kingdom, and I plead with Ministers to recognise that it is not just about the terms of the legislation, it is about the mood, the spirit, the language and the body language of Ministers when they speak to and about the devolved Administrations. Because, right now, that body language is driving support away from the future of the United Kingdom. I do not believe that that is the Government’s intention, but it is the effect of their behaviour and I think they should really reflect on that.
I thank the noble Lord, Lord Stevenson, for Amendment 24, as it provides a further opportunity to talk briefly about the important issue of the devolved Administrations’ role in our new international trade policy.
The UK Government are committed to working closely with the devolved Administrations to deliver an independent trade policy that works for the whole of the UK, and this has been reflected by statements from the devolved Administrations. For example, as I noted earlier in previous debates, the Counsel General for Wales, Jeremy Miles MS, recently said in his evidence to the Welsh Affairs Committee on 19 November that the department has listened to the devolved Administrations and established a new ministerial forum for trade, which we have used to consult them on all our trade agreements. The forum met four times last year, most recently on 9 December, and regular engagement will continue in 2021. I listened to the speech by the noble Lord, Lord Bruce of Bennachie, and do not entirely agree with his version of how the continuing talks are going.
This engagement has meant that the devolved Administrations’ views have already begun to be reflected in our free trade agreements. For example, the devolved Administrations made it clear that they supported high ambition for the mobility of professionals in all our FTAs. With regard to the Japan FTA, the UK Government delivered this by securing more flexibility for Japanese and British companies to move talent into each country, covering a range of UK skilled workers to enter Japan, from computer services to construction.
I also listened to the brief speeches by the noble and learned Lord, Lord Morris, and the noble Lord, Lord Wigley, on their concerns over Welsh lamb. As noble Lords will know, the Bill does not give the UK Government powers to implement future trade agreements with partners, including New Zealand, but we will continue to work closely with the devolved Administrations on all our current FTA negotiations, so that their interests and priorities are reflected through negotiations.
However, while it is absolutely right that we engage meaningfully with the devolved Administrations, we must do so within our existing constitutional framework. That is why the DIT has sought to strike the proper balance between engaging with the devolved Administrations and respecting that, under our constitutional settlement, international trade is both a reserved matter and a prerogative power.
My noble friend Lord Trenchard spoke at greater length—and in my view, very wisely—on these points. I agree with him that, unfortunately, this amendment would upset that balance. It would require the UK Government not only to consult but to seek the consent of the devolved Administrations for FTAs covering areas of devolved competence. This goes far beyond what is appropriate, given that international trade is a reserved matter and would have significant implications for the strength of the UK’s negotiating position. I believe that my noble friend Lord Trenchard also made that point.
The principle that the UK Government have sole responsibility for decisions on international trade negotiations is not just long-standing constitutional practice but is critical in ensuring that the United Kingdom can speak with a single voice in our international relations, providing certainty for our negotiating partners and the strongest negotiating position for all the regions and nations of the UK. The amendment would undermine this unity and could lead our negotiating partners to try to play different Administrations off against one another. This is surely one of the reasons why the UK Parliament decided that international relations should remain a reserved matter and enshrined this in the devolution settlements.
The UK Government have worked hard with the devolved Administrations to ensure that the Bill is already drafted in a way that respects the devolution settlements. The Minister of State for Trade Policy has undertaken a significant programme of engagement to achieve this, including regular meetings with devolved Ministers, bilateral calls and attending the devolved legislature committees to discuss their views.
As noble Lords will know, the Scottish Government withheld consent from the previous Bill—the Trade Bill 2017-19. For this Bill, we therefore made additional amendments to address their concerns, such as removing restrictions on Scottish Ministers’ use of the Bill’s delegated powers. As a result, the Scottish Government and the Scottish Parliament’s Finance and Constitution Committee changed their position and recommended that the Scottish Parliament consent to the Bill. On 8 October, a legislative consent motion—an LCM—was formally granted.
My Lords, now that the Brexit transition period has ended, the creation of the Trade Remedies Authority is obviously both necessary and very welcome. It should allow the UK to protect domestic industries, investigate allegations of unfair practices by overseas competitors and seek their resolution via the WTO’s dispute settlement mechanism. We must have a Trade Remedies Authority that has a broad membership from sectors and regions across the UK, conducts meaningful stakeholder engagement and, of course, is independent from the Government.
I do not buy the argument from the noble Baroness, Lady Noakes, that it is not the business of Parliament to give some guidance or ideas as to who those meaningful stakeholders might be in ensuring that we get this right. Only then, I argue, will it be transparent and fair when investigating and challenging practices that distort competition against UK producers. But the Bill appears not to secure this, as reflected by my Amendment 47 and the other amendments in this group, which are in their own way entirely benign. It is worth reminding ourselves that the Lords Constitution Committee said that it was not clear why the functions and powers of the Trade Remedies Authority could not be set out in more detail in this Bill. We cannot have an unbalanced TRA that simply supports the priorities and approach of this Government, or indeed any Government. We need a functioning TRA and a functioning trade remedies system, but its functioning will be undermined if there is no independence.
Amendment 47 is simple. It allows the Secretary of State to ensure that members of the TRA should have the
“skills, knowledge or experience relating to producers, trade unions, consumers and devolved administrations in different parts of the United Kingdom.”
The amendment clearly seeks to guarantee an appropriate balance of views at the TRA, not in favour of any party or sector but for the benefit of all regions, nations and businesses. In particular, I argue that we need trade union representation in the TRA. The TUC has said that, without it, there will be
“no guarantee provided that the non-executive members will represent the interests of workers in manufacturing sectors who will be severely affected by the dumping of cheap goods such as steel, tyres and ceramics.”
I hope that the Minister can explain in some detail how this balance can be achieved without the necessity of this and other amendments being in the Bill.
My Lords, there have been some succinct speeches in this debate and I shall keep my remarks relatively brief, but bearing in mind that there are six amendments to address.
Amendment 27 in the name of the noble Baroness, Lady Kramer, and the noble Lord, Lord Purvis, seeks to require the TRA to publish a strategy of its engagement with certain stakeholders within six months of its establishment. I am afraid that I agree with my noble friend Lady Noakes that we do not see merit in this, and I shall briefly explain why. The TRA’s processes are set out in legislation and limited by the scope of WTO agreements, including much of the basis of how it will engage with stakeholders in its investigations. UK producers will be able to bring complaints directly to the TRA through an innovative digital service which will underpin the process and make it easier for businesses to engage. I hope that I can provide further reassurance to the noble Baroness by outlining that we have engaged extensively with various stakeholders on establishing the TRA and encouraged them to build constructive relationships with the TRA itself, once established. I shall say more, particularly in relation to questions raised by my noble friend Lord Lansley, about progress on setting up the TRA in a moment.
I will move swiftly on to Amendments 28 and 29, in the name of my noble friend Lady McIntosh of Pickering, in relation to the TRA. These amendments would seek to narrow the limits of a request that the Secretary of State may make to the TRA for advice, support or assistance. We are committed to creating a world-class organisation staffed by a team of highly skilled international trade experts. The Secretary of State may require assistance from the TRA’s knowledgeable experts in certain circumstances to assist work carried out by government departments. There are some situations where the Secretary of State may need to request assistance from the TRA outside of trade remedy disputes arising under the WTO dispute settlement mechanism, including assistance in respect of provisions relating to trade remedies in regional trade agreements. In seeking assistance, however, the Secretary of State must have regard to the TRA’s independence, impartiality and expertise.
Trade Bill Debate
Full Debate: Read Full DebateViscount Younger of Leckie
Main Page: Viscount Younger of Leckie (Conservative - Excepted Hereditary)Department Debates - View all Viscount Younger of Leckie's debates with the Department for Business, Energy and Industrial Strategy
(3 years, 10 months ago)
Lords ChamberI am sorry to interrupt the noble Lord. I know he made a very passionate and emotive speech earlier. The purpose now is to press his amendment, should he choose to do so.
I am also exercising my right of reply at the end of debate, and I am drawing my remarks to a conclusion.
Two heroes of mine from the Nazi period have been referred to in this debate. One was a man called Maximilian Kolbe, who was taken to Auschwitz and executed there. He said that
“beyond the … hecatombs of extermination camps, there are two irreconcilable enemies in the depth of every soul … what use are the victories on the battlefield”—
in other words, what use are all the privileges we enjoy—
“if we ourselves are defeated in our innermost personal selves?”
The other person was Dietrich Bonhoeffer, executed by the Nazis, who said:
“Not to speak is to speak. Not to act is to act.”
I commend Motion C1 to your Lordships’ House; this is our chance to speak and to act. I would like to test the opinion of the House.
That this House do not insist on its Amendment 6, to which the Commons have disagreed for their Reason 6A.
My Lords, on behalf of my noble friend, I beg to move.
Motion E1 (as an amendment to Motion E)
That this House do agree with the Commons in their Amendments 9A and 9B.
That this House do agree with the Commons in their Amendment 10A.