Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Janke Excerpts

Committee stage
Tuesday 14th May 2024 Lords Chamber

[Baroness Altmann (Con)]

My Lords, I rise briefly to congratulate the noble Baroness, Lady Drake, on her amendment and the others in the group. I understand where they are coming from, but it seems to me that the Government’s argument that this issue is already encompassed in “financial impact” holds some sway. There are concerns that I understand, but I am not sure they are necessary. Indeed, sight should not be lost of the fact that all local government pension schemes are ultimately underwritten by the Government and taxpayers. If the stewardship of these assets were swayed by issues which the Government themselves might not be comfortable with, there are powerful reasons why that stewardship should not be swayed by the kind of considerations that the Bill seeks to ensure does not happen.

Political or moral disapproval is not the same as environmental, social and governance issues. If a board of trustees decided to boycott an investment because of the country in which it is located, based on judgments of that country which do not accord with the views of the elected Government, the duties incumbent on the Government in accordance with this Bill would be at risk. That someone might take legal action against trustees who decide that they do not wish to make certain investments because they make a political or moral judgment that is not in accordance with that of the elected Government could equally be argued the other way. Trustees, certainly local government trustees, should not be taking these decisions.

I believe that was the manifesto commitment. Private pension schemes are not part of government and therefore that is a different decision, but local authority pension assets are ultimately underwritten by government so, should there be concerns about material financial risk and impact, they ultimately rest on the Government’s underpinning them anyway. Given that, as my noble friend said, “financial value” already encompasses these issues, I am relaxed about the current wording of the Bill. I hope that noble Lords across the Committee, especially those who have worked so hard on pension issues and with whom I normally fully agree, will not be too uncomfortable with the explanations that I am trying to put forward for not using pension assets as a disguised tool for political or moral judgments in the way that could happen and which this Bill seeks to deter.

[Baroness Janke (LD)]

My Lords, I support the amendments in this group and will speak to Amendment 45, which I have signed. This amendment would remove “management” from the definition of a fund investment decision, allowing investors to carry out stewardship activities, including engagement and voting, without falling foul of the prohibition and enabling vexatious legal challenges.

Clause 12, on application of prohibitions, applies Clause 1 prohibitions to the LGPS. It includes acquisition, retention, management or disposal of assets in its definition of fund investment decision. However, advice from the LGPS identifies “management” as pension scheme stewardship—engagement with or seeking to influence the companies and sometimes Governments in which it invests and voting at annual general meetings. Without this amendment, local authorities would be open to legal challenge for statements made during engagement with the companies in which they invest or to votes against them at AGMs, should interested parties wish to argue that these were influenced by political or moral disapproval of a foreign state.

I hear the arguments put forward by the noble Baroness, Lady Altmann, but the breadth of the Bill means that there is an opportunity for interested parties to use the moral and political disapproval of a foreign state as a way of challenging decisions that they do not agree with. The concern is that many will choose to take that view—and the Bill allows them so to do—on risks, for example, connected with a company’s purchases from a certain market, such as the use of forced labour in China, or investment in fossil fuels, which are becoming more financially risky. These could all be interpreted as disapproval of a foreign state or moral or political disapproval and thereby attract interested parties to challenge via judicial review and the quasi-judicial review process introduced in Clause 5.

Furthermore, foreign Governments have large stakes in listed companies, so concerns about any aspects of those companies could be litigated on the basis that they were influenced by disapproval of a significant fellow investor. With such a threat of litigation, it is easy to see how advice and full and frank discussion of decisions could be severely restricted. Having been a member of a local government pension scheme, I understand the need for advisers to be able to give frank advice without fearing that their words may be used later in legal action.

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[Lord Wallace of Saltaire (LD)]

My Lords, I should declare an interest as a beneficiary of the university superannuation scheme. Can the Minister remind us how many times any local government pension fund has taken decisions on political and ethical grounds towards investment in particular foreign countries? The Explanatory Notes to the Bill give us a very small number of examples of where local government pension funds have discussed whether they should. We will come later to the question of whether we should ban discussions of these sorts in a free country, but that is different. I worry about whether we are having an enormous debate about something which has not happened in this country and is unlikely to happen in this country. It happens in the United States, and the American debate filters into this country. Particularly on the right in British politics we have an awful tendency to pick up American partisan politics and try to apply them over here, which I am deeply unhappy about. Is this a real problem or a manufactured, confected problem? If so, could we possibly leave it aside until some future date when it perhaps becomes a problem?

[Baroness Janke (LD)]

My Lords, I also belatedly declare my interest as a beneficiary of the Local Government Pension Scheme.

[Lord Collins of Highbury (Lab)]

My Lords, the noble Lord, Lord Wallace, suggests that we are using the Bill to address a problem that has not happened, which prompts me to say that there are genuine concerns that it might happen. I come back to the point that I made in one of the interventions: the concern that we all have about this Bill is that its scope goes well beyond the concerns and the remedy in the manifesto. The noble and learned Lord, Lord Thomas, and my noble friend are quite right to point out the litigation risks.

My noble friend also raised what I have repeatedly said: that this legislation can have a chilling effect that we do not want. We have a Government making all kinds of guidance. On the local government pension funds, we have specific regulations. All pension funds have a fiduciary duty. Noble Lords have raised the point about the duties of people responsible for making these decisions. The Bill will make those duties even more complex. When things become even more complex, people avoid doing the right thing. That is one of the important considerations.

I want to repeat what my noble friend Lord Davies mentioned. Talking as an old-fashioned trade unionist, I say that members’ pensions and pension funds are their deferred wages, yet there is an idea that somehow those do not belong to them and are not their responsibility. Most of the members primarily want those funds protected for their future security. They do not want political and moral considerations to play a part. They want them to be covered by the points that my noble friend Lady Drake has mentioned. No matter what is said by the noble Baronesses, Lady Altmann and Lady Noakes, this could impact the ability of those responsible for managing these funds to make decisions that take into account risk and other considerations to protect those funds. That comes from the potential for them to be challenged.

I have read some of the briefings on this. The ESG point is quite an important one. Many funds and investment pools in local government pension schemes work individually and collectively to improve corporate behaviour and long-term value of the funds, including through engagement in shareholder action at their AGMs. This is reflected in the statutory guidance that my noble friends have been referring to about administrating authorities formulating a policy to deal with their stewardship responsibilities. It is likely that engagement of this type would be undermined by the Bill.

I again come back to the point made by the noble Baroness, Lady Noakes. When seeking to address behaviours by a company that involve significant financial, legal and reputational risk, there are many occasions when this will have geographical implications. We have seen, for example, the briefings on the use of tax havens by companies and the use of surveillance equipment. We have heard of the Uighur internment camps where bonded labour is encouraged by public authorities, particularly the kafala system. We will come on to another group on employment law, but the definition of the exceptions is very narrowly drawn in this Schedule. The Bill is unlikely to allow decision-makers to consider those behaviours.

It is unclear whether decision-makers in the LGPS could be accountable for screening selection decisions made by global equity funds where country-specific risks have been considered. That is an important point. My noble friend Lord Davies is absolutely right. As a trade unionist all my working life, I have seen the responsibilities of those who look after these pension funds. They should be common throughout. Why are we differentiating between local government workers and something beyond local government workers? Why should we have these different standards? It is really important that everyone who takes that responsibility of oversight, as a trustee or in management of the schemes, has those same principles of fiduciary duty and taking risks into account.

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Janke Excerpts

Committee stage
Tuesday 14th May 2024 Lords Chamber

[Baroness Noakes (Con)]

We discussed this very point on our first day in Committee, and I think I have stated the correct position on the interpretation of the Bill.

[Baroness Janke (LD)]

My Lords, to answer some of the points made by the noble Baroness, Lady Noakes, the idea that individuals are not targeted is certainly not sufficiently reassuring to make local decision-makers feel protected. Most of what is in the Bill seems to be very much targeted at local authorities and their members.

It is perhaps worth while to point out here, in this unelected Chamber, that councils are directly elected and are accountable to their electorate. They are also obliged to report back to their constituents about such things as decisions that they have made. I was a former leader of a council, and I would have wondered, on seeing this Bill, having been asked why I had made a certain decision, whether replying in a certain way would mean that I was prosecuted, or perhaps that I was not able to reply because I am forbidden to speak about this. There is sufficient lack of clarity in the Bill to make people wonder about that. I do not think that it has been demonstrated otherwise. As the noble Lord, Lord Warner, said, the Constitution Committee sees this as a major threat to free speech. We need some more guidance on this.

I take exception to the idea that, somehow, statements from student encampments are equated with statements issued by locally elected authorities and their officials. They are not the same at all. Local authorities have a constitutional role, and they should be respected as such. The contempt that I have heard from some people in this Committee is unwarranted, given the lack of evidence of councils making such decisions as are prohibited in the Bill.

The idea that prohibiting such statements will have a good effect on social cohesion is much more likely to have the opposite effect. If people are told that they are not allowed to make statements, they are much more likely to try to find other ways of getting their messages across. The idea of oppression leading to better social cohesion seems to me to be a false premise.

I agree with the noble Baroness, Lady Chapman, that there is a complete failure by many of us in this Chamber to explain why Clause 4 is necessary. We have not really heard any good reason, other than the noble Baroness, Lady Noakes, telling us it is for social cohesion.

On the idea that freedom of speech is offended by Clause 4, as the right reverend Prelate said, freedom of speech is a basic right and a cornerstone of democracy. Although we are an unelected House, we fight for democracy—I would hope—and stand by democratic principles, as has the Constitution Committee, as told to us by the noble Lords, Lord Beith and Lord Warner.

The practical issues with the Bill, as to how its provisions are actually enforced, is again something that needs clarity. As the noble Lord, Lord Warner, said at the beginning, we are discovering with the Bill that, the further we go with it, it really lacks clarity. Trying to establish what it is meant to do and how it is meant to do it seems to have defeated us so far.

We need much better clarification about the Human Rights Act. If the Constitution Committee of this House tells us that the Bill contravenes Article 10 of the Human Rights Act, we need to know how it is that Ministers are telling us that it is somehow compliant, as this is clearly not the case.

As the noble Lord, Lord Beith, said, to prevent people talking about issues important enough for them to be calling for a boycott is an outrage. The Explanatory Notes trying to maintain that somehow individual councillors will not be targeted or held responsible is totally inadequate if that is not going to be on the face of the Bill.

The clause deserves to be removed. I very much regret that it disrespects the role and responsibility of directly elected councillors and their officials. It has extreme overreach in trying to gag them and prevent them explaining their decisions, for which they are publicly accountable. I believe that contraventions of the ECHR are matters to be taken very seriously, so I want to hear from the Minister further explanation and further response to the recommendations of the Constitution Committee.

[The Minister of State, Cabinet Office (Baroness Neville-Rolfe) (Con)]

My Lords, Amendment 33 to remove Clause 4(1)(b), moved by the noble Baroness, Lady Chapman, and the amendment in the name of the noble Lord, Lord Collins, to remove Clause 4, undermine the aims of the Bill.

Before I address the amendments, I reiterate that the Government are committed to protecting freedom of speech, which is why the Bill’s provisions apply only to public authorities and not to individuals or companies in their private capacities. I made that clear in my response to the Constitution Committee report in March and set out why the clause is necessary to fulfil the 2019 manifesto commitment.

I also clarify to the noble Baroness that we are not creating any new criminal offences in the Bill for statements about boycotts or handbags or any other kinds of statements. Moreover, statements about one wanting to steal someone’s handbag would clearly not have an impact on community cohesion in the way that statements of intent to boycott may. Statements of intent to boycott can be threatening and intimidating, particularly for those within the Jewish community.

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Janke Excerpts

Tuesday 7th May 2024 Lords Chamber

I must stress that the horror and anger must not be directed at the wrong targets but we are seeing people expressing their humanity and their care for others, particularly the most vulnerable. To suppress that is indefensible in general, but to pick on an area where there is so much suffering at this moment makes Clause 3(7) particularly indefensible.

[Baroness Janke (LD)]

My Lords, I should like to add a few points. As the noble Baroness, Lady Bennett, says, many of them have been made by others but the confusion in this Bill that is causing us a great deal of difficulty is of understanding its benefits. We have heard that the Bill singles out protection for Israel in perpetuity and conflates Israel, the Occupied Palestinian Territories and the Golan Heights, despite the fact that these are recognised as distinct by UK foreign policy. Primary legislation would be needed if Israel were to be removed from being protected by UK legislation. Also, the Occupied Territories are illegally occupied, as we have already said. How can it be justified and embedded in UK law that such protection in perpetuity for illegal settlements should be given by our own country?

There is more confusion, as the noble Lord, Lord Collins, said, about Foreign Office guidance. What the advice said, in response to the noble Baroness, Lady Noakes, was:

“There are … clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity. Financial transactions, investments, purchases, procurements”


and other activities

“in Israeli settlements or benefiting Israeli settlements, entail legal and economic risks”.

Presumably, trustees and advisers of pension funds considering such advice may need to take action and not procure or invest in these areas; they would be contravening the provisions of the Bill.

We also know that the ICJ has warned that Israel may be committing genocide and is currently investigating a case brought by South Africa to that effect. Should that be found to be the case, public bodies would be prevented from taking any action against Israel or settlers in illegally occupied territories unless primary legislation were to be enacted. Again, how can this possibly be justified?

The Government’s explanation of the need for such extreme measures is that sanctions and boycotts of Israel cause anti-Semitism in communities. While we have seen no evidence of this, several Jewish organisations believe that the Bill will impede the UK’s ability to combat anti-Semitism. Many organisations are opposing the Bill and saying that the reverse will be the case. The Union of Jewish Students, for example, unanimously decided to oppose the Bill, as have 40 Israeli NGOs, and has called on our Parliament to reject it. Finally, Diaspora Alliance said:

“The rhetoric promoting this bill erroneously conflates efforts to hold Israel accountable with hostility against Jewish people. This kind of rhetoric gives the impression that the most effective solution to combatting antisemitism lies in the protection of the interests of a foreign power, rather than in the policies that protect Jewish citizens of the UK from prejudice, harassment and discrimination—like all other British citizens”.

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Janke Excerpts

Committee stage
Wednesday 17th April 2024 Lords Chamber

[Lord Willetts (Con)]

My Lords, I intervene briefly, if I may, in support of Amendment 54, which is calling for a comprehensive list to be laid before Parliament. This debate is getting a bit metaphysical about public bodies, and it is revealing that there is no authoritative shared definition of a public body and no single authoritative list of public bodies. The term “public body”, on which the Bill rests, is itself very hard to define. I have two observations about this.

First, we therefore reach out to lists of bodies that have been developed for other purposes in other legislation. There are candidates around: one is the Freedom of Information Act. I am looking across at the Lib Dem Benches, because I vividly remember a debate within the coalition about whether or not universities should be covered by the Freedom of Information Act. The Lib Dem members of the coalition thought that that information should be available from universities. We had a negotiation as part of some wider deal and agreed that universities should be covered by the Freedom of Information Act. At no point in those exchanges did people think that that meant we were defining them as public bodies. We were simply trying, for the purposes of where the information should be and what should be covered by the Freedom of Information Act, under pressure from a member of the coalition, to include universities. It was not intended to be an authoritative definition for other purposes of legislation. In these circumstances, I think that it is sensible to say that we should just have a list of the bodies for which this legislation is most relevant and not try to reach out to find some other list or some permanent definition on all accounts.

There is a second reason, which, if I may say so, is particularly relevant for us on these Benches. There is a paradox in the Conservative position here: the supporters of the Bill are quite keen to stop sanctions, boycotts and anti-investment campaigns by as many bodies as possible. That means that Conservatives are currently reaching out for a very ambitious definition of “public body” because they want as many as possible to be covered.

I am not totally sure that, in the long run, this is an approach that Conservatives will not find comes back to haunt Conservatives, who may think they have ended with an overambitious definition of “public body” that in turn gets used for many other purposes. There are good reasons for a highly precise and limited list of bodies to be covered by this legislation—anything else and you are on very slippery ground, and we may find it has consequences that, even within my own party, people come to regret.

[Baroness Janke (LD)]

My Lords, I thank the proposers of these amendments for offering an opportunity to establish, as many have said today, some precision and clarity on the range and definition of the public bodies referred to in the Bill. The Minister has an opportunity to reassure us and many groups who fear the implications of this Bill.

In Amendment 22, we are talking about schools or nurseries. The Minister has said we are talking about procurement, but do the Government really intend that school governors should sit poring over the school meals procurement to see whether they are contravening the terms of this Bill in any way? Indeed, as the noble Lord, Lord Deben, said earlier, would they also contravene the terms of the Bill even in talking about it and taking advice?

Do the Government intend that charity commissioners and trustees should take into account the implications of this Bill, and perhaps face vexatious challenges to contest some of the decisions that they have already made? The fact that the definitions are so poor, as many people have said here today, will leave open legal action and vexatious possibilities of weaponising this legislation, by the whole scope that seems to be covered. But the Minister can reassure us today, or in writing, that the list of public bodies covered is, as the noble Lord, Lord Willetts, said, closely defined and clearly identifiable by those whom it affects.

Particularly concerning, as highlighted in Amendment 26, is the implication for charitable organisations delivering public functions in terms of overseas aid and humanitarian work. Often founded on moral principles, as the right reverend Prelate said, many of these organisations have foundations which relate to moral principles and values, which they take into account when taking their decisions, whether on procurement or on investment. I believe territorial considerations must also be key to the functioning of these groups and charities. I agree we need a clear definition, and I would also like to understand and be reassured by the Minister on the reason for the additional powers being given to Ministers.

On the last amendment on this list, we should really have a much better idea—I think the noble Baroness, Lady Blackstone, who said that we are swimming through a sticky pudding, was absolutely right. We are totally unclear about the terms and the scope of this Bill, and I hope that we may be reassured in the course of this Committee.

[Lord Davies of Brixton (Lab)]

I have two questions relating to the issue of what constitutes a public body. My major interest in this Bill is Clauses 12 and 13, about local government pension schemes. It is interesting that it requires a separate section of this Bill to deal with local government pension schemes; that clearly indicates that these organisations are not public bodies. The Government’s commitment was in relation to public bodies and yet the Bill is being extended to these other organisations, which require their own section in the Bill, as they are clearly not covered by the general term “public bodies”. Perhaps the Minister could confirm or explain that particular point.

I have a different point relating to pension schemes. Some of these public bodies that we have been talking about have their own funded pension schemes, which are making investment and procurement decisions. As I understand it, because they are separate trusts, they are not themselves public bodies. But they belong to a public body and they are associated with the public body, so it is possible, within the bounds of trusts law, for those pension scheme trustee bodies to consider a decision that might potentially fall foul of this legislation. Therefore, we have the odd situation that the trustees can discuss these matters, but presumably the sponsoring organisation, which does count as a public body and is covered by the Bill, cannot discuss what the trustees whom they nominate should or should not be doing. There is a certain contradiction here, and again I invite the Minister to explain how that will operate in practice.

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Janke Excerpts

Committee stage
Wednesday 20th March 2024 Lords Chamber

[Baroness Fox of Buckley (Non-Afl)]

My Lords, because this is the first group, I again state that I think that a lot of these amendments are trying to establish what is intended by the Bill, in a probing way. In that sense, they are very helpful for clarification on the language used. It was clear from Second Reading that most of the people who have since tabled these amendments and are speaking now are not in any way defending BDS; it was clear to me anyway. These boycott schemes are censorious and illiberal, and very often, as was stated at the time, the seeding ground for anti-Semitism in public life. In that sense, I oppose them; I am just not clear how the Bill will actually tackle them.

As we speak, just to use an example, the Rio Cinema in London has just cancelled its Eurovision party on the basis that it will not hold it while Israel still has somebody in the Eurovision Song Contest. I do not know whether this is self-declared BDS; it is a charity, and I am not quite sure how the Bill would apply. The point I kept trying to make at Second Reading was that, so often, I feel that the Bill will miss where a lot of the anti-Semitic censorship is occurring, around the periphery, rather than just in terms of divestment and investment, and so on.

I say that because those of us who are interested in tackling those issues need to have as much free speech as possible. I particularly support Amendment 6 from the noble Lord, Lord Wallace of Saltaire—although both his amendments are interesting—which makes the point about

“any person seeking to persuade the decision-maker”.

That is what politics is, is it not? Trying to persuade a decision-maker—lobbying and trying to have an influence on politics—is surely the job we are all in, even if we disapprove of, in this instance, what someone is trying to persuade about. I just get anxious about this being in a Bill; it sets a dangerous precedent.

Points have been made well by other noble Lords about the use of the language of political and moral disapproval; I want there to be far more political and moral disapproval in politics today than there is. It is an entirely good thing to make that clear. I wish there was a bit more “political and moral disapproval” leadership in general, even though many of us arguing that would disagree over what it should be. That is fair, but it is far better than a kind of technocratic approach. Also, if we are to win the hearts and minds of many of the young people who go along with BDS campaigns, we will have to show our political and moral disapproval, and win them over and seek to persuade them. Noble Lords get the point, but it is not clear how the language in the section to which these amendments refer will help us to tackle the problem that the Bill seeks to address.

[Baroness Janke (LD)]

My Lords, I also wish to speak in support of Amendments 1 and 6 in the name of my noble friend Lord Wallace. As a former councillor, I can imagine that former colleagues will be absolutely horrified at the scope of the Bill. We are talking about how moral and political disapproval cannot be used as the basis of a decision. Many councillors get into politics because they have moral and political views—they want to change the world and do something about things in their own area. I would welcome clarity, as others have asked for, on how it is to be established whether a decision-maker has been

“influenced by political or moral disapproval of foreign state conduct”.

What means might be used to actually determine this, in the event of needing to enforce action against it?

--- Later in debate ---

[Lord Wallace of Saltaire (LD)]

My Lords, I have had advice from a professor of law at Cambridge University that it is not within scope where the research funding is not public. It is then a private act, not a public act.

[Baroness Janke (LD)]

My Lords, very many points have been made about how the decision-maker is established. From the point of view of local government, in local councils there are very many ways of taking decisions that can be individual or corporate. The tiers of responsibility and the trails that decisions make throughout a large organisation would need to be explored if enforcement action was to be taken.

In addition, councillors, committees or even pension committees, as we heard earlier, are advised by experts and independent advisers, so it is not clear where the line of accountability is and who is responsible, who is to be identified for enforcement action. The public authority, as has been identified earlier, is the body that is talked about in relation to Clause 4, but it is not in the Bill and does not relate to any other part of decision-making. I add my plea for further clarification as to how the decision-maker is to be identified and how enforcement is to be pursued in light of that.

As far as pension funds are concerned, as a former member I know that expert advisers do take account of political situations in their evaluation of risk. Again, that may be intimidating for councillors or advisers and inhibit the quality of advice that is given.

[Baroness Neville-Rolfe (Con)]

My Lords, Amendment 7, tabled by the noble Lord, Lord Collins of Highbury, and Amendment 55, tabled by the noble Baroness, Lady Chapman, seek clarity on whether an individual is considered a decision-maker for the purposes of this Bill. It was helpful to hear the introduction from the noble Baroness and her wish for general elucidation. As she implied, it is an important part of the Bill’s provisions. I will try to confine my points mainly to decision-makers, which are the purpose of this group.

A public authority will generally delegate responsibility for decision-making on procurement and investment decisions to individuals within the public authority. The individuals who make the decision on behalf of the public authority will do so in accordance with the public authority’s internal policies and structures. To address the noble Baroness’s question on enforcement, even when an individual is making decisions or speaking on behalf of a public authority, the ban applies only to the public authority itself. There is no personal liability for the individual. Individuals will therefore not personally be responsible for any fines that may be imposed on public authorities for a breach of the ban in Clauses 1 or 4.

On the noble Baroness’s question on pensions—this is something I know about because I have served as a pension trustee, admittedly in the private sector—this is something we can come back to in more detail when we discuss Clause 12, but I will also look at the Local Government Association material that she referenced, which I am sure will be helpful and interesting.

My noble friend Lady Noakes made the point that there are some limited cases where individuals are the public authority in their own right. She asked for examples, so I suppose that examples would be UK Government Ministers, Ministers from devolved Administrations and police and crime commissioners. They could also be individuals such as mayors if they exercise public functions in their own right. Any individual who is a public authority in their own right is already subject to far-reaching and fundamental duties under the Human Rights Act 1998. They could be subject to court action if they restrict others’ human rights, and the duties in the Human Rights Act are much more wide-ranging than the prohibitions in this Bill. It would not be appropriate for these individuals to be pursuing policies that are not in line with the official foreign policy, which is, of course, set by the UK Government. To be clear, local authority councillors and university leaders are not public authorities in their own right.

Amendment 55 would require the Secretary of State to publish guidance to clarify in what circumstances an individual is a decision-maker before the Bill commences. We do not believe that it would be appropriate to publish guidance on this matter, as every public authority is structured differently and has different policies on how its internal decision-making process operates. As it happens, as the noble Baroness, Lady Janke, said, structures vary a lot, and that is the case.

To give the House an example, in the case of local authorities, they will have a scheme of delegations in place, with, for example, a commissioning board, which will indicate who takes procurement decisions. While the decision is made by the individuals on the board, they have been empowered to take those decisions via the scheme of delegations, and it is therefore the local authority that is the legal decision-maker in the context of the ban. This is made clear in Clause 2(1) of the Bill. Even when an individual is making decisions or speaking on behalf of a public authority, the ban applies only to the public authority itself and there is no personal liability for the individual. Therefore, individuals will not personally be responsible for any fines that may be imposed on public authorities for a breach of the ban. The concerns on this issue—

Economic Activity of Public Bodies (Overseas Matters) Bill

Baroness Janke Excerpts

2nd reading
Tuesday 20th February 2024 Lords Chamber

[Baroness Janke (LD)]

My Lords, as many noble Lords have said, this is a very flawed Bill. It is a major crackdown on democratic values and freedoms and an assault on local democracy. It puts pressure on elected councillors, officials and members of public bodies to do the Government’s bidding or be prosecuted. It prevents elected councillors or members of public bodies exercising moral or ethical judgments in decision-making on procurement and investment, and makes them liable for criminal proceedings if they do so. It bans well-established non-violent campaigning practices—not just BDS, as the noble Lord opposite was saying; it is much wider than that. These sorts of campaigns have been used effectively, as the noble Lord, Lord Hain, described, to fight for human rights in countries where these are not basic freedoms. The value of such campaigns can be seen from the ending of the slave trade to the fight against apartheid in South Africa.

Local councils are not an outpost for the delivery of government policies and should not be treated as such. They are living democratic institutions where debate flourishes and challenge to policies, whether from national or local government, is legitimate and to be welcomed. Dissent is a necessary and valuable part of democracy. As a former leader of Bristol City Council for six years, I can testify to the power of dissent and challenge in the scrutiny of local and national policies by local people. What happens in the wider world is important, and not just to central government, and there are large numbers of activists and advocates in local communities, on a range of matters, local and national, that inspire them to stand up for the causes that they believe in. The noble Baroness, Lady Blower, mentioned the bus boycott, an example of dissent and a successful campaign in Bristol. I also remember being part of a very vigorous debate on investment of the council’s pension scheme, and whether it should invest in the tobacco industry—a huge matter for Bristol, with its history of the tobacco industry. That kind of debate would be illegal under this Bill.

Democratic values and beliefs underpin our system of government, whether at national or local level. Those who fail to respect them do so at their and our peril. The Bill criminalises decisions to invest or procure based on morality or political disapproval. Councillors have become more and more concerned at the frequency of government interference in local matters, but criminalising moral judgments and freedom of speech by elected politicians is a chilling new threat to councillors and officials. It will inhibit valuable discussion, advice and transparency over financial decisions. Advice will be, “If in doubt, don’t say it”, for fear of legal action, which may be used as a weapon by those with vested interests who disagree with certain actions.

Is this extreme measure a signal that the Government are content to see human rights violations and are protecting countries that practice these abuses by threatening and criminalising those who dare to challenge them? The gagging Clause 4 means that, if elected councillors speak to say what they would have done had the law not forbidden it, they too are open to criminal prosecution. There is no justification for such a blunt-edged legislative weapon against local democracy and freedom of expression.

The Bill prevents legitimate and peaceful campaigns against human rights abuses. Although focused on Israel, it prevents action on human rights across the world, in countries such as China, Myanmar and Saudi Arabia, or any other violator of human rights not included on the Government’s list. As others have said, Israel, the Palestinian Occupied Territories and the Golan Heights are wrongly conflated in this Bill, in the light of UK policy and UN Resolution 2334. Israel, the Palestinian Occupied Territories and the Occupied Golan Heights have permanent protection from boycotts or disinvestment, and it requires primary legislation for them to be exempted from protection. Following the order of the ICJ, this seems unwise, in that responsibility for complicity may well fall on the UK if the judgment finds Israel guilty of war crimes. In the settlements of the Occupied Territories, human rights abuses are well documented. The settlements are illegal, by the same UN resolution, yet they too are permanently protected from peaceful campaigns to boycott or disinvest.

As it stands, the Bill also prevents action to invest in the future of the planet. Action by public bodies to end financial support for fossil fuel extraction and to divest from activities such as deforestation risk being criminalised as they involve moral or ethical judgments.

The Minister has told us that there are two basic purposes to this legislation. One is to prevent hate crime and anti-Semitism, which she tells us result from boycotts, divestment and sanctions against Israel. No evidence has been put before us to support this, and the Government’s impact assessment states clearly that no evidence has been found to support it. The second purpose is to prevent a diversity of foreign policy conducted at local level by councils. Again, other noble Lords have called for evidence to show that this is in fact a problem. As I understand it, there are very few instances of competing foreign policies at local level.

The case is not made that the Bill is likely to achieve its expressed purposes. Much more likely, it will cause resentment and anger, worsening public trust and poisoning relationships between Whitehall, local communities and other public bodies. The Bill is draconian and places unreasonable constraints on elected councils and public bodies; it removes the democratic rights that individuals and public bodies should have to determine investments and express views on all issues, including foreign states and human rights. It makes the UK Government complicit in protecting and supporting states that violate human rights, and it criminalises elected members of public bodies who are brave enough to speak out, campaign or take action against such abuses.

Like others, I do not believe that the Bill should be supported. Obviously, we will wait and see what happens in Committee. I hope that there will be amendments to remove some of the many flaws in the Bill.

Gaza: Humanitarian Situation

Baroness Janke Excerpts

Thursday 8th February 2024 Lords Chamber

[Baroness Janke (LD)]

My Lords, we have heard of the horrific events in Gaza and the suffering of the Palestinian people. The declared objectives of the war in Gaza were to destroy Hamas and secure the release of the hostages, yet after 17 weeks, neither has been achieved. There is therefore no credible justification for further killing and laying waste in Gaza. In the meantime, Ministers Ben-Gvir and Smotrich have called for Jewish settlements in Gaza and for the migration of the Palestinian people, while health and aid facilities are being systematically destroyed. What action will the UK Government take to insist on compliance with international law and the rulings of the ICJ, condemn these declarations and fully support the Palestinian people’s right to reclaim their territories?

Unemployment Figures

Baroness Janke Excerpts

Thursday 20th October 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I sometimes worry about using the term “older workers”, but rising economic inactivity in the over-50s is contributing to shortages in the labour market. We are working with employers: one example in terms of technology and skills is the STEM returners work task force that we have introduced. In that way, we are trying to upskill people who have left the workforce and get their skills back on STEM so they can go into high-paid work.

[Baroness Janke (LD)]

My Lords, with job vacancies at record levels—for care workers it is 52%, the highest level since records began—what are the Government doing to invest in the supply of much-needed care workers? Is it not time that the Government addressed the pay of care workers, currently less than that of supermarket workers, rather than trying to find solutions by recruiting workers from the poorest countries in the world, where they are desperately needed at home?

[Baroness Stedman-Scott (Con)]

We are cognisant of the vacancies in the care industry. We are promoting work, in partnership with the Department of Health, but we want employers to pay the right rate for the job. The Government cannot subsidise employers, so that is what we will encourage them to do.

Older Persons Commissioner for England

Baroness Janke Excerpts

Wednesday 19th October 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I know that noble Lords like to get me into trouble but the fact of the matter is that the Government’s position, as it stands, is that there is no plan to introduce a commissioner. I have read the brief of the Welsh commissioner and tried to familiarise myself with her role. I suggest the noble Baroness joins the campaign of her noble friend Lord Foulkes. I will meet and I will listen.

[Baroness Janke (LD)]

My Lords, does the Minister agree that many of the issues facing older people, such as lack of affordable care, poor housing, pensioner poverty and isolation, require a cross-cutting approach if they are to be resolved? Would she agree that a strong independent voice for older people is needed at the highest level? If they do not appoint a commissioner, what will the Government do to make cross-departmental working a priority, end the marginalisation of older people and champion their needs?

Out-of-work Benefits

Baroness Janke Excerpts

Monday 17th October 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

That was the exam question. As my noble friend knows, the Restart scheme gives jobseekers out of work for nine months more intensive support to find a job. It has achieved more than 226,000 starts. The issue my noble friend raised concerning whether they are still in work six months later is really important. I do not have those statistics but I will go back to the department, find out whether we have them and, whether we have them or not, I will write to her and put a copy of the letter in the Library.

[Baroness Janke (LD)]

Does the Minister believe the Government are doing enough to remove the barriers that prevent people working? For example, carers are finding it more and more difficult to get any support, and when they do, they are faced with huge bureaucracy. Childcare is unaffordable even when it is available, which is not much of the time. Transport can be very expensive and inaccessible to certain groups of the population. Does the Minister agree that getting people back to work is much more about removing barriers, rather than imposing more punitive conditions on the already poor and vulnerable?

[Baroness Stedman-Scott (Con)]

Let me start by saying that the intention behind our efforts is not to issue punitive measures. Let us clear this up right now: as I have always said, sanctions are imposed only if there is no good reason for people not to take up an opportunity offered to them and they can do it. Some 98.9% of sanctions are down to the fact that people fail to turn up for interview, and the minute that they ring up to book the next appointment, the sanction is reviewed. At the DWP we do not go to work in the morning saying, “How many people can I sanction today?” That is just not the line. The noble Baroness raised a point about childcare, and it is number one on my list. I have just come back from the G7 where I spoke to my colleagues in Australia and Canada who have made enormous strides in improving childcare. The noble Baroness can take it from me that I am on the case.