Economic Activity of Public Bodies (Overseas Matters) Bill Debate

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Department: Department for Levelling Up, Housing & Communities

Economic Activity of Public Bodies (Overseas Matters) Bill

Brendan Clarke-Smith Excerpts
Theresa Villiers Portrait Theresa Villiers (Chipping Barnet) (Con)
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I strongly support this legislation, and I want to thank all constituents who have been in touch with me to tell me their views on it. It is my honour and privilege to represent a constituency that is home to a substantial Jewish community.

As we have heard this evening, the BDS movement is deeply divisive. The founder of the group and many of its leadership figures do not recognise the right of Israel to exist. They have no commitment to a negotiated settlement and want to drive the two sides apart, not bring them together.

As has been pointed out, these local boycotts split communities here in Britain. Many Jewish people feel a deep sense of connection to Israel, so they could feel intimidated and victimised if their local council were to pursue a boycott. The spillover of anti-Israel to anti-Jewish attitudes and discrimination is illustrated by the supermarket that, in 2014, took kosher foods off the shelf after protesters gathered outside in support of a boycott of Israel.

Moreover, the BDS movement often seeks to justify its campaign using the allegation that Israel can be equated with apartheid South Africa. That is a pernicious slur. In falsely accusing Israel of racism, it singles out the world’s only distinctively Jewish state for unjustified and disproportionate attack. That falls squarely within the International Holocaust Remembrance Alliance definition of antisemitism and we should always reject it. I am gravely concerned that BDS activity has sometimes legitimised and driven antisemitism, and I note that the Communities Secretary has stated that BDS has led to

“appalling antisemitic rhetoric and abuse”.

There is no justification for a boycott or sanctions against Israel. Cutting economic ties with Israel will do nothing to further the peace process, or to get negotiations restarted. Israel is our ally. It is the only real democracy in the middle east; the only country in the middle east where equality for women is fully protected; the only one where the rights of the LGBT community are respected; and the only one with a genuinely free press and a fiercely independent judiciary. We should be strengthening economic, cultural and academic links with Israel, not severing them.

Deeper engagement with Israel means that we as a country can play a stronger role in supporting peace and reconciliation between Israel and the Palestinians. It also brings advantages for jobs and economic growth here in the UK. I welcome the 2030 road map for bilateral relations between our two countries, which was signed in March and will boost tech, trade and security ties. The phenomenal energy of Israel’s digital economy and its cutting-edge pharmaceutical sector are just two reasons why trade with Israel is an important source of prosperity for us in Britain. In 2017, the Health Minister Lord O’Shaughnessy estimated that every year some 100 million NHS prescription items in England are made by companies in Israel. If we listened to the BDS movement and adopted its approach, we would see major disruption of NHS procurement of the medication that so many of us need and, inevitably, that would lead to rising costs.

Brendan Clarke-Smith Portrait Brendan Clarke-Smith (Bassetlaw) (Con)
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I join my right hon. Friend in welcoming today’s legislation. BDS activists who bully councils into adopting these measures are also bullying the UK’s advertising industry. For example, Stop Funding Hate and Ethical Consumer are pro-BDS groups that tell their supporters to follow the BDS national committee, a group with links to Hamas and other designated terrorist groups. Does she agree that today we can, certainly as a first step, set an example in tackling BDS within public bodies?

Theresa Villiers Portrait Theresa Villiers
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Indeed. Today is our opportunity to take a stand against BDS and I encourage as many hon. Members as possible to do that.

As part of the largest ever deal between an Israeli and a UK company, Rolls-Royce is delivering engines for El Al Dreamliner aircraft, supporting many highly skilled jobs in Britain. That type of massive commercial opportunity would be a thing of the past if we let these BDS boycotts take hold and spread.

In conclusion, this is a timely Bill that I hope the House will back. I am deeply disappointed that Labour has said that it is voting against it today. The question is: do you support boycotts against Israel or don’t you? I am strongly opposed to boycotts of Israel, which is why I am voting for the Bill this evening. I am proud that it is a Conservative Government who have listened to the Jewish community on this vital issue and brought forward the Bill it asked for to ban council boycotts. Israel is our friend and ally and we should be trying to increase trade with Israel, not trying to ban it. There is no justification for local councils adopting their own international trade policy. These are rightly matters for our democratically elected Government in Westminster. I urge hon. and right hon. Members to support the Bill in the Division Lobby this evening.

Economic Activity of Public Bodies (Overseas Matters) Bill (First sitting) Debate

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Department: Department for Levelling Up, Housing & Communities

Economic Activity of Public Bodies (Overseas Matters) Bill (First sitting)

Brendan Clarke-Smith Excerpts
None Portrait The Chair
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I suppose, for the sake of completeness, that I should say I too have been on a trip to Israel with Labour Friends of Israel. However, as with Wayne David, that was many years ago.

Brendan Clarke-Smith Portrait Brendan Clarke-Smith (Bassetlaw) (Con)
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I have also been on a trip funded by Conservative Friends of Israel, and I am also a friend of James Gurd.

Kim Leadbeater Portrait Kim Leadbeater (Batley and Spen) (Lab)
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I have been on a trip funded by Caabu, who are not giving evidence this morning, but I believe they are later on.

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None Portrait The Chair
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The regulator might consider itself to be an exception to that rule.

Brendan Clarke-Smith Portrait Brendan Clarke-Smith
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Q Some have suggested that it is rather pointless to implement a ban if you have a toothless enforcement regime. Do you agree that it therefore needs to be sufficiently robust if we are to introduce this regime?

Councillor Deering: If I may say so, I thought that Councillor Jamieson’s response to the previous question was very good, because the question went to freedom of speech but Councillor Jamieson talked about judicial review, and in effect you are talking about enforcement through judicial review.

I substantially endorse what Councillor Jamieson just said. From the practical point of view of a councillor—forgive me: no doubt some of you in the room have this experience, but perhaps some of you do not—JRs may very well not be vexatious but my goodness me they give rise to a huge amount of work. They involve huge cost exposures and they are very, very demanding on a council’s capacity. If there is to be a JR backdrop to this, it needs to be put together in a thoughtful and careful way.

Subject to that, of course, if you are creating a regime that requires application, there does need to be some enforcement mechanism. Yes, I agree with that.

Councillor Jamieson: There does need to be an enforcement mechanism, which is the whole point of the Pensions Regulator. That should have sufficient teeth. It covers a whole range of issues—not just this but other things—and in general it works reasonably well.

Economic Activity of Public Bodies (Overseas Matters) Bill (Third sitting) Debate

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Department: Department for Levelling Up, Housing & Communities

Economic Activity of Public Bodies (Overseas Matters) Bill (Third sitting)

Brendan Clarke-Smith Excerpts
None Portrait The Chair
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I will bring in Brendan Clarke-Smith now for his question, and then you can share the answers between you.

Brendan Clarke-Smith Portrait Brendan Clarke-Smith (Bassetlaw) (Con)
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Thank you for your input today. You mentioned that people may be subject to equalities claims with the way the law is at the moment. Do you not feel that having a clear policy on this, both nationally and in terms of foreign policy, can protect local authorities if they diverge from it? That is why this Bill makes the picture a lot clearer for local authorities and avoids that situation where they may put themselves under threat and in breach of equalities laws.

None Portrait The Chair
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I do not know who wants to take on the two questions. I will leave it to you.

Peter Frankental: Sorry, I could not hear the first question. Could you please repeat it?

Economic Activity of Public Bodies (Overseas Matters) Bill Debate

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Department: Department for Levelling Up, Housing & Communities

Economic Activity of Public Bodies (Overseas Matters) Bill

Brendan Clarke-Smith Excerpts
Angela Rayner Portrait Angela Rayner
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My hon. Friend makes a very important point, which is why we are trying to gain consensus across the House through our amendments. It is important that people should be able to raise concerns appropriately and in the best way. The Bill does not allow that. Even the Foreign Secretary’s office warned No. 10 about the impact of the Bill on our foreign commitments. For that reason, we welcome amendment 7 in the name of the right hon. Member for North West Hampshire (Kit Malthouse), which has support across the House—including from Members from the Liberal Democrat and SNP Benches. We think it will go some way to addressing the problem.

Thirdly, I want to re-emphasise the concerns raised by Members from all major parties about clause 4—the so-called gagging clause. I acknowledge the changes made to the explanatory notes in this area, but this unprecedented restriction could have far-reaching consequences for our democracy, and I urge the Secretary of State to think again. I have tabled amendment 16, which would address the issue of elected bodies. It is a mark of the concern across the House that there are so many amendments to the clause, including from Members from the Government and the SNP Benches. The seriousness of the clause must not be underestimated. It is an unprecedented restriction on the ability of the public bodies—many of them directly elected—to express a view on policy, effectively gagging them from even talking about it.

We are concerned that clause 4 would be incompatible with article 10 of the European convention on human rights, which protects freedom of expression. Labour’s amendment 14 seeks to remove the most sweeping provisions in the Bill through which the Secretary of State intends to hand himself unprecedented power to change the scope and application of the Bill through regulations.

Lastly, it is important to note that the Bill in its current form will not set out what it seeks to achieve. There are loopholes that will allow discriminatory acts to continue unchallenged. Our new clause 3 presents just one example, and I am sure that there are many more. The new clause requires the Government to review the impact of the Bill on discrimination, and addresses one form of it that has been raised with me—refusal to provide kosher food. We on the Labour Benches know that that impacts on many British Jews across this country, causing much distress and suffering. That is the type of concerning practice that should be tackled, but the Bill in its current form will not address it. I urge the Secretary of State to take a pause, take a step back, and consider that there might be another way through.

I assure the Secretary of State that Labour feels strongly that BDS practices against Israel offer no meaningful route to peace for the people of either Palestine or of Israel. As my hon. Friend the Member for Wigan said on Second Reading,

“We on the Labour Benches do not claim that all those who support BDS, despite our profound disagreement with them on that issue, are antisemitic.”—[Official Report, 3 July 2023; Vol. 735, c. 527.]

But let us be clear: the effect of BDS would be the total economic, social and cultural isolation of the world’s only Jewish state, and there are those who use the campaign to whip up hostility towards Jewish people, providing no route to peace and a two-state solution. I can assure the Secretary of State that Labour will continue to condemn and oppose that in the strongest terms. I do not believe there is genuine disagreement between us on that point.

But let me be totally clear, too, both as a shadow Minister and as deputy leader of the Labour party: now more than ever we expect councils to bring all their communities together and represent all their citizens. It would be utterly wrong to choose one community over another—or worse, pit one against another.

Brendan Clarke-Smith Portrait Brendan Clarke-Smith (Bassetlaw) (Con)
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I agree 100% with the right hon. Lady that we must be moderate in our tone and the language we use. Does she agree it was therefore very unhelpful for the Scottish Labour leader to use terms accusing Israel of breaching international law when we are discussing such a sensitive subject?

Angela Rayner Portrait Angela Rayner
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As I said at the start of the debate, people have to be responsible—and, in fairness, I acknowledged that the Prime Minister at the start of this week also outlined that people have to be responsible. I say that across the whole House and genuinely mean it: we all have to be responsible. I know people feel very strongly at the moment about these issues, and rightly so, and I hope the hon. Gentleman sees from my contribution to this debate that I am taking that very seriously as well.

We rightly expect that our local government must surely stay by the principles I mentioned, but we must also make sure that our national Government do too. That is real leadership—of our communities, and of our whole country. Instead, I fear we have a Government unwilling to recognise what is needed from them at this moment on this Bill: careful, precise deliberation and to bring communities and the country with us.

I am disappointed that the Secretary of State has taken the reckless path of forcing the Bill back to Parliament today—a Bill that fails on its own terms. His approach risks dividing our country, our communities and even his party. I urge him now not to divide the House and to accept the amendments proposed by Members on the Opposition side and his own.

For our part, Labour stands ready—as we have at every single stage of the Bill—to work constructively with the Government and other parties to build consensus behind a workable, sensible solution. There is no doubt that the people of our country want us to speak with one voice. Labour stands ready and willing to work in good faith to achieve that goal. The question is, are the Government?