Grand Committee
Arrangement of Business
The Deputy Chairman of Committees (Lord Rogan) (UUP)
My Lords, if there is a Division in the House, the Committee will adjourn for 10 minutes.
Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019
(5 years, 1 month ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the Environment, Food and Rural Affairs (Amendment) (EU Exit) Regulations 2019.
Relevant document: 19th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, these regulations group elements of six policy regimes: natural mineral waters, spirit drinks, food labelling, wines, genetically modified organisms and animal imports. The purpose of this statutory instrument is to make purely technical or operability corrections to ensure that these regimes continue to function as intended. These corrections deal with removing or amending references to EU directives, removing or amending EU references, converting EU procedures to UK procedures and transferring EU functions to the UK.
This instrument allows the recognition of existing natural mineral waters from the EU, Iceland and Norway to continue on a transitional provision for at least six months, thereby maintaining the status quo immediately before exit day. This instrument also provides power to the Secretary of State to withdraw recognition of existing EU natural mineral waters after a period of notice if the EU was not to reciprocate and recognise UK natural mineral waters. Of course, we hope that the EU will recognise our mineral waters in good faith, as indeed we are doing.
With the exception of the Secretary of State’s powers over recognition of natural mineral waters, this instrument makes no further substantive changes. Without this provision, existing natural mineral waters which obtained recognition in or by a member state in the EEA would not have the right to be legally sold in England, irrespective of the Secretary of State’s powers to regulate this field. That would lead to restricted consumer choice in the UK, where one in three bottles of natural mineral water are of EU origin, and changes to product prices due to market forces. We have therefore taken a pragmatic view on that matter, and it is necessary that we do so.
The statutory instrument will also ensure that we have a fully functioning scheme for spirit drinks’ geographical indications, allowing us to register and amend applications. This is particularly important for Scotch whisky, which in 2018 had a record £4.7 billion-worth of exports. Although these exports would not directly be put in jeopardy without this SI, the industry would lose the ability to amend the Scotch whisky technical file to better reflect industry practice. The technical file is the document which provides the technical specifications for products using the Scotch whisky GI name: for example, production process, geographical area, specific labelling rules and so forth. This SI amends the applicable regulation to transfer functions from the European Commission to the Secretary of State.
On food labelling, this SI transfers a series of legislative functions which are currently conferred upon the European Commission so that they will instead be exercisable here in the UK. Transferring the functions means that we can make important changes concerning how certain pieces of information can be presented to the consumer. These powers currently sit with the EU Commission and ensure that we would not require new primary legislation to, for example, update the list of allergens that must be labelled on prepacked food or change the way that nutritional values are presented.
The SI also transfers the power to make rules for the production processes used to make aromatised wines, as well as rules on methods of analysis and administrative and physical checks, and transfers powers on wine relating to GI applications from the EU to the Secretary of State. It allows us to update laws in relation to the production and analysis arrangements for aromatised wine by means of regulations. It will also enable us to consider applications for new wine GIs and deal with applications to amend and cancel wine GIs on the UK wines GI register. Without doing so, key aspects of our wine quality policy would become inoperative, which would put us in breach of the WTO provisions. It also rolls over the framework for how producers protect geographical indications for aromatised wines, as well as the mechanisms to control the production and use of those geographical indications.
For genetically modified organisms, the SI makes purely technical changes to keep legislation operable on exit. I emphasise that there are no policy changes. It makes operability changes to transfer existing powers from the EU to the Secretary of State, thereby allowing the Secretary of State to develop technical statutory guidance on sampling and testing for the presence of GMOs, to amend the threshold above which products must comply with traceability and labelling requirements, and to apply unique identifying codes to GMOs. This will ensure that we can continue to enforce the rigorous rules governing genetically modified organisms.
Finally, this SI amends animal health provisions. It makes operable provisions relating to the import of cattle semen, pig semen and horse semen, ova and embryos. These amendments are purely technical, and preserve the current regime for imports and for protecting the UK’s biosecurity. The SI also makes minor operability amendments to two other animal health provisions, one laying down a health certificate used to ensure the health status of certain imports of live animals and products of animal origin, and the other making provision for the appropriate UK authority to publish approved lists of border inspection posts relating to the movement of animals and animal products. In both cases, the amendments are minor and technical and do not introduce any new policy.
Defra has consulted the devolved Administrations on the amendments in this instrument and they have consented to its coming into force. The instrument concerns changes for the United Kingdom except as regards natural mineral waters—those apply only to England—and decisions on GMOs, which are a devolved matter for Wales, Scotland, and Northern Ireland. As the natural mineral waters amendments apply only to England, each devolved Administration would have to provide their own equivalent amendments to their respective natural mineral waters regulations. We expect the devolved Administrations to mirror the same policy position, but they have yet to lay their respective provisions in legislation.
Amendments made to Regulation (EC) No. 1830/2003 on the traceability and labelling of genetically modified organisms will apply to the UK. They respect that decisions on GMOs are a devolved matter.
The natural mineral water policy decisions were subject to a public consultation, which ran from 16 October to 13 November last year. Defra engaged all major stakeholders in the process throughout 2018, from individual companies to industry bodies. We have also written to the main stakeholders to explain the implications of the instrument.
These measures will ensure that the policy regimes for natural mineral waters, spirit drinks, food labelling, wine, aromatised wine, GMOs and animal imports remain able to operate. With the exception of natural mineral waters, where we have consulted extensively, this instrument makes technical or operability corrections ensuring that these regimes continue to function as intended. I beg to move.
Baroness McIntosh of Pickering (Con)
My Lords, I welcome the regulations, and given my heritage—born in Edinburgh—find particularly pleasing those concerning Scotch whisky exports, which obviously boost trade for the whole country.
From my Question earlier this week, the Minister will be aware of my interest in traceability and labelling. Unfortunately, we did not have time to explore it then. I am grateful to him for setting out the thrust of the statutory instrument. He went to some length to explain that this instrument is technical in nature and makes no public policy changes, but he will be aware of the fact that the 19th report of Sub-Committee B of the Secondary Legislation Scrutiny Committee states very clearly that the regulations give rise to issues of public policy likely to be of interest to the House. Therefore I am grateful that we are having the opportunity to debate them today.
North Yorkshire is still smarting from the fact that Shepherds Purse Cheeses used to produce a very popular cheese called Yorkshire Feta, which, not being produced in Greece, fell foul of the GI, and so for a time was called Yorkshire Fettle. To my embarrassment, I am unsure how it is marketed now.
Can the Minister provide an assurance that we will continue to follow the Cocoa and Chocolate Products (England) Regulations 2003? I do not necessarily blame the Government for the volatility of the pound, but we have seen changes to the pound since the result of the referendum was known, and, over the last two weeks, increasingly volatility. This has huge implications for cocoa and chocolate products. The Minister will be aware, for example—without naming a producer, because other products are available—that we tend to introduce milk chocolate here with a lower cocoa content and a higher oil vegetable fat content. I am seeking an assurance that we will continue to be aligned with the European Union rules regarding cocoa and chocolate products, and in particular, their content, insofar as these regulations relate to that.
Baroness Byford (Con)
I thank the Minister for introducing the first of these amendments. I have two issues that I should like to follow up on. The first is about geographical indication. I see from the brief that the UK has some 86 product names already in being; it cites Scotch whisky, Welsh lamb and Cornish pasties. I would love to have had Stilton cheese and Melton Mowbray pork pies in there, coming as I do from the Leicestershire end. Can the Minister clarify that this will in no way restrict new products from becoming listed?
Secondly, I am grateful for what he said on the GMOs, and accept the importance of labelling. But again, looking to the future with the same rigour, I trust that new developments will not be precluded. Again, I should like some clarification, but I welcome this amendment.
Lord Trees (CB)
My Lords, I too thank the Minister for his characteristically clear explanation of this SI. I have just a few queries on which I should appreciate his assurance. First, under Part 4, Regulation (EC) No. 1830/2003 concerning genetically modified organisms, Article 4 refers to amending thresholds for release of GMOs into the environment.
Do the Government intend to alter thresholds? Under what circumstances might that be done? Who will ultimately decide what future thresholds will be? I certainly do not want to preclude novel developments; I agree with the noble Baroness, Lady Byford, on that.
Part 5 covers Commission decision 2009/821/EC, which refers to border inspection posts and TRACES, the Trade Control and Expert System, for notification of imports and so on. How many border inspection posts are there currently? Are there plans for any more? Can we be assured that the number is adequate to deal with any Brexit scenario?
Secondly, I understand that TRACES will be replaced by a British system. I believe it is called the Import of Products, Animals, Food and Feed System, with the natty acronym IPAFFS. When will that be operational? Will it be by 29 March?
Baroness Bakewell of Hardington Mandeville (LD)
My Lords, I also thank the Minister for his introduction and for the time of his officials in the briefing. This SI was originally scheduled to be a negative instrument, but was upgraded to an affirmative instrument after Secondary Legislation Scrutiny Sub-Committee B had completed its sifting process. This was a wise decision, as some significant changes are covered in this SI—not least on natural mineral waters, but also on geographical indications and GMOs. It is all about environmental protection, food and intellectual property. The last, in particular, will have significant impacts in some areas of the UK.
As the Minister said, this is a transfer of functions and there will be mutual recognition between the UK and the EU from day one. However, unless I have misunderstood it, there will be a six-month transition period during which imported EU mineral waters will not be able to be labelled “mineral water” and recognised for sale in the UK. As the Minister said, these EU mineral waters represent approximately 30% of UK market sales. There will therefore be a gap in the market, which it is unlikely our own UK mineral water bottlers will be able to fill. Our own mineral waters are very specific to geographic areas—Highland Spring, Buxton and Glastonbury Chalice Well being three. My husband comes from Derbyshire, so my preference is for Buxton when I can get it. If the EU’s Volvic, Evian and Pellegrino mineral waters are not available, the UK consumer may find they are unable to buy an alternative as demand will outstrip the supply of our production.
At the end of the six-month transition period, an EU-based mineral water company can reapply for permission to import into the UK. It will be up to the Secretary of State to either withdraw or grant such permission. If I have understood it correctly, if any EU state recognises our UK mineral water, the Secretary of State cannot withdraw an EU water company’s permission. It will be up to his or her discretion. Is it likely that many EU mineral water companies may not bother to reapply? On the upside, if one of the EU countries recognises a UK-based mineral water, all 27 will have to do the same—so markets will be opened up. Likewise, if one of the devolved Administrations permits an EU mineral water company to import its products, the other three will also permit it to be imported.
I turn now to the question of geographical indication, or GIs, about which we have had some discussion. This is a wide classification including Scotch whisky, Irish whiskey, Cornish pasties, Wensleydale cheese and Camel Valley wines. These are extremely important to the economy of the areas that produce this fine food and drink. Paragraph 7.3 of the Explanatory Memorandum indicates that there will be no change to description and labelling. I look to the Minister to give reassurance that the status of iconic GIs will not be diminished but protected after we have left the EU.
The labelling of local produce is extremely important, especially to the farming community, where lamb and beef in particular command a high price if they come from certain breeds and areas of the country, such as salt-marsh Welsh lamb.
Food labelling is of particular interest to me as someone who reads all the labels of foods that contain more than one product. As a lifelong coeliac, I look out for wheat-based and gluten-containing products in everything. The current labelling system, whereby allergens are highlighted in bold, is extremely useful, as the allergens leap out at you and you do not have to read all the ingredients in depth. Often, there is a gluten-free, crossed-grain symbol on the front of the product; thus I can safely buy sausages from two well-known food retailers without having to refer to the small print on the back.
I am not alone in meticulously reading ingredient labels. I therefore ask the Minister to give his reassurance that there will be no watering down of the regulations once exit day has passed. As we all know, poor labelling has become a matter of life or death for some. A review of labelling will need to ensure more stringent regulations, not a watering down of existing ones.
Baroness Jones of Whitchurch (Lab)
My Lords, I thank the Minister for his introduction this afternoon and for the courtesy of meeting us beforehand. This SI covers a wide range of issues and has all the hallmarks of a hurried amalgamation of outstanding issues which have to be cleared before Brexit day. I hope that stakeholders and businesses with an interest in the content can find the relevant changes buried away in this SI, with its rather unenlightening title concerning intellectual property, which seems to cover a lot of sins that are not immediately obvious.
I also make the point that the amendments to Commission decision 2009/821/EC concerning border inspection posts, and those referring to health certificates, should have been dealt with as part of the earlier SI on the import and trade in animals and animal products. I am not sure why they have been tagged on here in this way.
Incidentally, on this subject, I am grateful to the Minister for writing a follow-up letter on the questions raised by my noble friend Lord Knight and others when we dealt with that more substantial SI a couple of weeks ago. I am aware the Government have today published technical information on imports between Northern Ireland and the Republic. However, in the case of animals crossing the border between Northern Ireland and the Republic—in other words, those being exported—the letter confirmed a rather alarming fact. Without a deal, all animals seeking to enter the EU—the Republic of Ireland—would have to do so via an EU border inspection post, with locations that are yet to be decided.
The Minister’s letter also confirmed that, while the Government continue to engage constructively with Ireland—as has been a common theme in debates on other SIs—there are in fact restrictions on the UK having bilateral discussions with EU member states. There is therefore only a limited amount of progress that can be made between the UK and the Republic of Ireland at this point. I do not want to dwell too much on this today as it is not the main subject of the SI, but it must be extremely unsatisfactory for farmers in Northern Ireland, who will face extreme restrictions on exporting to the south. I hope the Minister can provide reassurance to those farmers that urgent steps are being taken to make sure that the border inspection posts and all other means to ease exporting are put in place as soon as possible.
As the noble Baroness, Lady McIntosh, said, the SI before us was drawn to the special attention of the House by scrutiny Sub-Committee B. I agree with her: this raises important issues of public policy, particularly as it affects consumers’ rights and choice. I had not picked up the issue of chocolate but, now she has raised it, I too would like to know whether the price and availability of cocoa and chocolate will be affected—I certainly have great interest in the Minister’s answer.
As has been said, the SI sets out new regulations for accrediting natural mineral water. As the Explanatory Memorandum sets out, the amendments will maintain the existing recognition of mineral waters from the EU, Iceland and Norway, which would ensure market stability, continued trade and consumer choice. Given that we export and import mineral water to and from the EU, this is obviously a sensible provision, but the SI also seems to contain an open threat which I have not seen before in SIs dealing with traded goods. It says that if the Secretary of State finds that there is at least one UK mineral water that is not being recognised in any member state in the EU, then all accreditation for all EU mineral waters in the UK will cease, effectively forthwith. The effect of this would be that all EU mineral waters, including some very big brands that have been referred to, would not be able to be sold in the UK as natural mineral water. Is this negotiating tactic being adopted more widely? Is this the way we are going to do our future trade talks with the EU? Have the consequences been considered and discussed with UK mineral water exporters? I understand that they do not export as much as we import, but they would no doubt find that all their export opportunities to the EU would be cut off if we were to operate such a tit-for-tat approach. Is this a tactic with which they agree?
Has any consideration been given to the impact that this would have on consumer choice? We might all say that we should not import water, particularly not in plastic bottles, from the EU or anywhere else—the Minister has said before that London tap is a very fine brand and we should all drink that—but there is an issue about consumer choice. When we ask consumers, they all have their very strong preferences and preferred brands and it is important that we are clear about the consequences. Also, he said that this is a devolved issue. In fact, this provision is an England-only provision, so could we find that, for example, Evian water was available in Scotland and Wales but not in England? I think that he probably has an answer, but it is important that that is recorded so that we are clear on the legal position.
I turn to the protection of geographical indications of spirit drinks. The regulations transfer authority for registering geographical indication from the EU to the Secretary of State, as the Minister said. I think I am right in saying that there has been some sensitivity around these designations in the EU in the past. Certainly, the EU has been seen to be operating the rules in quite a stringent way, so it is not easy to get a geographical indication. That may be a good thing, but what type of objections to GI status would we be considering under the new regime? Will they be similarly stringent, in the way that the EU currently operates, or do we envisage relaxing the rules in some way? If we had different rules in the UK from those that would continue to be operated in the EU, could it have an effect on the export market of our drinks producers? If we were more relaxed about it and yet wanted to export Scotch whisky, could the EU say that, because we have not abided by the EU standards of GIs, we could no longer export to the EU?
There are obvious advantages to expanding our GIs, as the noble Baroness, Lady Bakewell, said—to celebrate regional and local provenance—and we all understand how advantageous that would be in many ways. What we do not want to do is to cut off our nose to spite our face and find that our exports are damaged in some way.
Lord Gardiner of Kimble
My Lords, I am most grateful for all the comments that have been made. I agree that they cover issues beyond the statutory instrument, which, as I said, enables regimes to be operable. The subject matters are very important. I can say immediately to my noble friend Lady McIntosh and the noble Baroness, Lady Jones of Whitchurch, that, yes, we will continue to follow the Cocoa and Chocolate Products (England) Regulations 2003. Of course, the whole proposal for beyond this afternoon’s debate is that we are not seeking, with these SIs coming through the withdrawal Act, to have any policy changes at all. We will continue with that.
On the question of geographical indications, on which a number of points were made, I entirely agree with my noble friend Lady Byford that, perhaps of the 86, Stilton was definitely most worthy of comment. However, I think that all of us, and beyond, recognise that we have some extraordinarily wonderful produce from all parts of the United Kingdom. We should celebrate them. I assure your Lordships that the GI schemes that will come into force in the UK on the day that we leave the EU will guarantee that UK GIs will remain fully protected in the UK. There is absolutely no question that suddenly these extraordinarily important products would have to share their centuries-old heritage with others.
The forthcoming GI legislation will also ensure that the UK continues to comply with these obligations as a member of the World Trade Organization, including under the TRIPS agreement on intellectual property. That is vital in empowering the UK to strike new trade deals with other countries, a number of which are due to come into force on exit day. Yes, we wish to cherish the GIs that we have, but we also see every merit—I am sure that this is the case around the world—in ensuring that there is scope for new produce to be a celebration of wherever it comes, as in this country.
A number of points were raised on GMOs. Although this is about operability, a number of your Lordships raised the issue more generally. An important point was made about the ability to make changes to allow the UK to keep pace with technological advances and labelling requirements in the international arena. It is important that we are in a position, through this SI and beyond, to ensure that we can attend to any necessary changes. The devolved Administrations may make their own amendments or, as we have often seen with these SIs—I think that this will continue—the Secretary of State may do so on DAs’ behalf with their agreement.
The noble Baroness, Lady Jones of Whitchurch, asked about expertise in this area, as did the noble Lord, Lord Trees, my noble friend Lady Byford and the noble Baroness, Lady Bakewell. The current situation is that the European Food Safety Authority issues an opinion on an application. For the UK, the EFSA opinion is considered by the Advisory Committee on Releases to the Environment. ACRE is a statutory body of experts providing independent scientific advice to UK Ministers on potential risk to the environment caused by any GMO.
To emphasise the importance of the scientists involved, I can report that ACRE comprises nine independent scientists with expertise in a range of disciplines, including ecology, microbiology, entomology, soil biology and biochemistry, plant pathology, genetics and plant biochemistry, medical microbiology and human infection, molecular biology, genomics and systems biology and synthetic biology. The Food Standards Agency considers the application in terms of safety as food and feed. ACRE’s advice informs the UK’s vote from the environmental perspective. That is how it has been, with that statutory body of experts.
Going forward, EFSA’s opinions are publicly available, so we will continue to have access to them, and ACRE will continue to advise the UK Government on the environmental aspects of applications made for, for example, any GM crop. The final decision will now be made, as I say, in the United Kingdom, but I emphasise that the Government place the greatest importance on environmental protection, all of it based on independent scientific expertise of the range that I outlined—I am sorry that it took a little time, but I wanted your Lordships to know that the range of expertise covers almost every area that could be interconnected with these matters.
The noble Lord, Lord Trees, raised the question of inspections. On imports from the EU, we have decided that the risk will not change on day one. There may not be reciprocity but we will not change our arrangements, because we do not believe that there are any new risks to UK biosecurity. The only additional inspections that we will have for imports will apply to live animals, animal products and high-risk food and feed not of animal origin that originates from a third country and travels through the EU before arriving in the UK. We are considering options to minimise regulatory duplication for transits entering the UK via the EU, and I confirm that there will be no change to the level of expertise required at UK BIPs. We are conscious of the flow of trade, but we need to base all our judgments on biosecurity risk as well. The Chief Veterinary Office, who constantly advises me and the Government on such matters, is absolutely clear that there is no risk.
The noble Baroness, Lady Jones of Whitchurch, and the noble Lord, Lord Trees, raised a number of other points. I absolutely understand the sensitivities of the Northern Ireland issue. I emphasise that we remain focused on securing a deal that will guarantee no hard border. We have always been clear that the unique social, political and economic circumstances of Northern Ireland must be reflected in any arrangements that could apply in a no-deal scenario. In the event of no deal, we will do everything possible to avoid a hard border between the north and the Republic and to uphold the Good Friday agreement. Therefore, today we confirm a unilateral approach to checks, processes and tariffs. That approach will of course be temporary, but if there is no deal we will not introduce any new checks or controls on goods crossing from Ireland to Northern Ireland, including any new customs declarations for goods.
I obviously hope very much that the same will be reflected by the EU and the Republic but, as I said during Questions earlier this week, a deal involves two parties. In making that pragmatic decision, we have behaved correctly. We have been told that there will not be reciprocity on natural mineral water, but we took the view that we would continue to accept it from the EU. Yes, that recognises consumer choice but it is important to recognise our pragmatic approach. There is absolutely no intention to see some trade war or dispute emerge. We are clear that the Secretary of State has the ability to withdraw recognition but, in practical terms, with this SI and beyond we have seen a collaborative approach between all home countries. That is the point rightly raised by the noble Baroness, Lady Jones of Whitchurch. After the guaranteed first six months of rolled-over recognition, all the home countries would need to agree—I hope that it will not be the case, but this is the provision—that there might be a time to give notice, as stated in the instrument, and how long that notice would be. Again, I say that the UK has been pragmatic and certainly does not seek anything other than a meaningful and strong relationship in this case, the drinking of natural mineral water. I absolutely endorse what the noble Baroness said: I find it curious how much water we import. Think of the imported water miles, when we have Buxton, Highland Spring and Welsh water—
Lord Gardiner of Kimble
And Harrogate Spring Water; I thank my noble friend. I do not say this to encourage a feeling that I am against EU produce, but I think that the British Government have taken a very pragmatic approach to an issue that I very much hope does not transpire and that we can find satisfactory arrangements.
On the points raised by the noble Baroness, Lady Bakewell, on trade, I very much hope that EU companies would consider applying, if that were to be the case. The Government support consumer choice; that is very important. I am mindful, however, of what I have said about London tap water and other wonderful waters from all parts of the United Kingdom. Looking at the noble Lord, Lord Beith, I think of some very fine water from Northumbria. Around our country, we have these great examples. On the issue of labelling, as we know, following the death of Natasha, the Secretary of State embarked on a consultation so that people can know much more about what is in made-up food. A lot is happening, thank goodness, voluntarily, but we are having this consultation because we take very seriously the need for consumers to have all the information they desire and need.
The instrument does not amend food labelling rules—it is not intended to; it is about temporary fixes to operability. On the issue of Northern Ireland borders, only a limited range of goods will need to enter the UK, including Northern Ireland, through a border inspection post. The purpose is to protect human, animal and plant health after we have left. In a no-deal scenario, animals and animal products from countries outside the EU would need to enter Northern Ireland through a UK border inspection post, as is the case now. We will always keep our biosecurity analysed for risk.
Clearly, we are also committed as a Government to continue discussions with the Commission and the Irish Government to jointly agree long-term measures to avoid a hard border, which we strongly desire to avoid, and to limit the impact on life on the island of Ireland, which is crucial.
There may be other key points. The noble Lord, Lord Trees, asked about BIP capacity. It is considered sufficient. There are 25 UK BIPS. The estimate is for an extra 8,000 checks at UK BIPS. Port health authorities—I have quizzed this myself—have confirmed that they can meet that extra demand with existing food inspectors. Ports are developing more capacity to deal with it. I know that work is in progress at Calais, at Coquelles. A lot of work is going on.
I am looking for other key points that I should answer. On the issue of consultation on food labelling, raised by the noble Baroness, Lady Jones, Defra has raised stakeholder awareness of the food labelling technical notices of last September and of the amending of food labelling laws consultation, which I mentioned. Defra Ministers have engaged many times with key stakeholders externally to the consultation.
The instrument is about technical operability, with the exception of natural mineral waters. All these areas are technical, so on the precise instrument, the answer is that it was not necessary. However, I would like to say—and perhaps will write to noble Lords about this—that there are many instances of ongoing engagement on spirit and drinks, food labelling, GMOs, animal imports and working with importers. There has also been, to date, engagement with 300 stakeholders covering 50 events. Therefore, beyond these statutory instruments, a very considerable amount of consultation and working with others has been undertaken.
This may be the last point. The noble Baroness, Lady Jones, raised a question about separate food labelling across the devolved Administrations. Clearly we have to respect the devolved arrangements and food labelling is devolved, but it is fair to say that all four parts of the kingdom are working together very closely to ensure that there is no disruption to the UK internal market in the event of a no-deal scenario, or indeed any scenario. I think that there is a recognition among all parts of the kingdom that the internal market within the UK is tremendously important and that we should work collaboratively. The evidence I have from all the SIs, on these matters and beyond, is that sense and pragmatism is prevailing.
I will study Hansard again, because there may be some points in the many questions I have sought to answer that noble Lords would like more detailed answers on.
Baroness Jones of Whitchurch
I am sorry to interrupt the Minister as he gathers his final thoughts, but it was remiss of me, since we strayed into the science of GMOs, not to have declared as interest as the chair of Rothamsted Centre for Research and Enterprise, part of Rothamsted Research, which does research into GMOs.
Baroness McIntosh of Pickering
I am a member of the All-Party Group on whisky and food, do receive hospitality, and had dinner with a chocolate company, which was not concerned by what we have discussed today.
Lord Trees
Perhaps by writing I could have an answer to the question on when the replacement for TRACES might be operational.
Lord Gardiner of Kimble
The successor to TRACES, IPAFFS, was launched on private beta on 14 February, for organisations with the greatest need. It will be operable for all third-country exports from the day we leave. We intend a separate system for imports from the EU, with IPAS coming into play in the summer, I think. I would not like to give a precise date, but obviously we want this working effectively, and I will write to the noble Lord—
The Deputy Chairman of Committees (Lord Rogan) (UUP)
My Lords, there is a Division in the Chamber. The Committee will adjourn for 10 minutes.
Lord Gardiner of Kimble
My Lords, I commend these regulations to the Committee.
Detergents (Amendment) (EU Exit) Regulations 2019
Baroness Vere of Norbiton
That the Grand Committee do consider the Detergents (Amendment) (EU Exit) Regulations 2019.
Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
Baroness Vere of Norbiton (Con)
My Lords, the primary aim of this instrument and the Detergents (Safeguarding) (Amendment) (EU Exit) Regulations 2019 is to amend EU and domestic legislation on detergents to enable their continued operability. Both instruments amend the same EU detergents regulation and, given the close links, they are grouped for this debate. We have worked with the devolved Administrations on these instruments. The legislation amended by the draft Detergents (Amendment) (EU Exit) Regulations is a reserved matter. The draft Detergents (Safeguarding) (Amendment) (EU Exit) Regulations relate to devolved matters and the devolved Administrations have consented to that SI. These instruments make many amendments and I will highlight some of them. Noble Lords will not be surprised to learn that they are technical in nature.
The Detergents (Amendment) (EU Exit) Regulations 2019 will ensure the continuation of standards and requirements in relation to the placing on the market of detergents, while ensuring a high degree of protection of the environment and human health. These draft regulations remedy deficiencies that will arise in the retained EU detergents regulation and the implementing domestic regulation, so as to ensure that manufacturers placing detergents and surfactants for detergents on the market in the UK continue to meet all the requirements of the detergents regulation, including composition—this includes strict limits on the permitted level of phosphorous content—labelling, data sheets and testing. Restrictions or bans are imposed on surfactants on grounds of biodegradability.
Looking at the first SI in more detail, Part 2 of the Detergents (Amendment) (EU Exit) Regulations ensures that the domestic Detergents Regulations 2010 can continue to be enforced by the relevant authorities and that penalties for non-compliance remain in place. Part 3 amends the EU detergents regulation to remedy deficiencies including corrections to references which would have no practical application to the UK after EU exit. For example, Regulations 5 and 6 remove references to the free movement of detergents in the EU internal market and to the Union customs territory in articles 1 and 2 of the EU regulation. The detergents regulation cross-refers to a number of pieces of EU legislation, including the regulations on biocidal products, cosmetic products and classification, labelling and packaging, the REACH regulations and the good laboratory practice directive. This instrument amends many of these cross-references, ensuring they are up to date so that they will continue to work on exit day.
This instrument also sets out how the returning EU powers, including those on decision-making currently exercised by the European Commission, will return to the UK after EU exit. As the competent authority for detergents in the UK the Secretary of State will exercise those powers, taking expert advice as appropriate. In practice, the work of the competent authority will effectively continue to be undertaken by the Health and Safety Executive under an agency agreement with Defra. The HSE’s existing capability and capacity can be built upon to take on UK regulatory authority responsibility. However, additional requirements from this SI for the competent authority are minimal.
Relevant functions to be transferred to the Secretary of State include the power to consider granting a derogation for a product—regulations 8 and 9—and the power in regulation 10 to determine disputes about testing methods for a product. The derogation provision has been used only very rarely at EU level. In the case of disputes about testing methods, a manufacturer may appeal a decision by the Secretary of State to a court.
Member states are currently required to notify to the Commission the list of approved laboratories that are authorised to carry out the tests required by the regulation. Through regulation 11, provision is made so that tests required by this regulation may be carried out by approved laboratories and the Secretary of State must publish that list. In practice, the HSE will publish the list.
Regulation 12 amends Article 9 on the information to be provided by manufacturers. Article 9(3) requires that manufacturers placing detergent products on the market shall make available an ingredient data sheet and that member states may request that such a data sheet be made available to a specific public body to which the member state has assigned to the task of providing this information to medical personnel. This article is amended to specifically refer to the National Poisons Information Service or such other body to which the Secretary of State or the devolved Administrations may assign for this purpose. NPIS already undertakes this role across the UK.
The power of the Commission to adapt the annexes to the regulation in line with scientific and technical progress is transferred to the Secretary of State in regulation 16. The Secretary of State will be able to do so by making a statutory instrument.
I turn to the draft Detergents (Safeguarding) (Amendment) (EU Exit) Regulations 2019, which amends the safeguarding clause in article 15 of the detergents regulation. Currently, member states may take provisional measures in relation to those detergents which fully comply with the EU regulation but which nevertheless pose a risk to the safety of humans or animals or a risk to the environment. Member states intending to use the safeguard clause must immediately inform the Commission, documenting their reasons. Regulation 3 amends article 15 of the EU detergents regulation. The Secretary of State and the devolved Administrations —where the matter is devolved—will have the full powers currently held by the European Commission and member states to initiate urgent, temporary safeguarding action across the UK in relation to detergents. Although there was no statutory requirement to consult on this instrument, HSE officials have engaged with industry.
In March 2018, a round of one-to-one stakeholder meetings with trade associations was held in relation to chemicals legislation generally. The main TA with an interest in detergents and cleaning products is the UK Cleaning Products Industry Association, or UKCPI. No particular concerns were expressed at that time in relation to these detergents regulations.
The JCSI did not report any concerns with these instruments. The SLSC noted that,
“HSE’s responsibilities after EU exit will expand significantly as a result of these and other instruments; it will need to be resourced adequately to carry out its new functions”.
As I set out earlier, the Health and Safety Executive currently acts on behalf of the Secretary of State, who is the competent authority for detergents legislation, and any additional requirements from this SI are minimal.
The SLSC also asked Defra about the use of the safeguarding mechanism and whether the fact that the UK will no longer have access to the EU’s information-sharing systems will mean greater health or environmental risks. The department responded that while the UK would lose access to information sharing systems such as the EU’s rapid reporting and response system, or RAPEX, in practice the safeguarding mechanism was very rarely used—just twice since 2004—and the impact was therefore likely to be low. The UK will still have access to the publicly available information on RAPEX and to the new product safety database established by the Department for Business, Energy and Industrial Strategy. I beg to move.
Lord Addington (LD)
My Lords, I sympathise with Ministers who have to deal with so many similar- sounding regulations; when you pick them up and look at them you are not quite sure which one you are looking at—in this case there is a variation of one word between the two of them. When I came to look at them, I thought they sound reasonably sensible overall, but one or two things came out. The Minister has touched on them already, but I will ask her to expand a little.
The Minister said that this would be a minimal expansion for the Health and Safety Executive. What exactly does that mean in this context? Is it a large expansion or just occasional greater activity? We need to know whether the executive has that capacity and whether it can do this when it happens. The last sentence of the report of the Secondary Legislation Scrutiny Committee Sub-Committee B asks what will happen when it loses the EU’s reporting capacity and information exchange. The Government responded, “This happens only occasionally, so don’t worry”. You would expect, if the system is at all sensible, that anything to do with safeguarding will happen only very occasionally. If the system was so flawed that you needed to use it frequently, one would hope that you would change the entire system. We need to hear something about how we are going to do this. You are not regulating something that is happening all the time—this happens when something goes wrong. A very minor variation is coming in here. Ingredients which are normally used are normally safe; in this case something has gone wrong, or some threat happens. That is a genuine concern, because you are not dealing with the everyday.
I would like a little more information about how that is to work, and on why, for instance, the 90-day period was chosen as the length of time within which it is appropriate to take action. Can we have some more information on that just to put our minds at rest? It is nothing to do with the mechanical process, but about something that has gone wrong: therefore it has to be able to respond, and quickly, and only very occasionally—a gap of decades is quite possible here. Can we find out how that will work, and make sure that that capacity is there? At the moment, the statement, “It hasn’t happened very often so let’s not worry about it”, is worrying. It could be read in that way; perhaps that is too blunt a way of interpreting it, but I hope that we can have something to reassure us that this capacity is available. If it is never needed, that is great, but it should be there.
Baroness McIntosh of Pickering (Con)
My Lords, I welcome the regulations and congratulate my noble friend on moving them. I echo the concern that was raised in the 18th report of the Secondary Legislation Scrutiny Committee Sub-Committee B: these echo my earlier remarks to the Minister, my noble friend Lord Henley, when he was talking about a similar statutory instrument a week or two ago, and I thank him for his letter. My noble friend Lord Gardiner was also kind enough to refer to comments about RASSF relating to food safety. I associate myself with comments from the Liberal Democrat Benches as well.
Baroness Jones of Whitchurch (Lab)
My Lords, first, I thank the Minister for her introduction and for arranging a very helpful briefing on this SI. We accept that these SIs are necessary to ensure the continued operability of the EU-related provisions post Brexit. However, we are keen to ensure that the transfer of powers to Ministers is not used as an excuse to weaken standards and processes. One way to ensure this is for the UK to keep pace with EU standards on this matter. These SIs also raise the recurring themes, which we have debated several times now, of the potential for significant environmental impacts and the need for effective environmental governance—I suspect that that will be a running theme today and on future SIs.
They also raise the recurring issues of resources: in this case for the HSE to carry out its new functions and for the scientific advice and guidance that will be necessary. Most importantly, we share the concern of the Secondary Legislation Scrutiny Committee that without access to the EU’s information-sharing systems there will be greater health or environmental risks. With this in mind, I have a few specific questions. First, as a general point, the instruments state that these provisions ensure that a high degree of protection for the environment and human and animal health can be maintained after Brexit. What does this mean in practice? Can the Minister guarantee that there will be the same level of protection that is offered now, given that some of the EU protections that have been available to us in the past will no longer be there?
In the additional information that Defra provided to the Secondary Legislation Scrutiny Committee, it was stated that in the event of a no-deal Brexit the UK would lose access to the EU’s information-sharing systems, such as the rapid reporting and response systems. If that is the case, is there any mechanism for the UK to be notified about unsafe products from the EU market that are already being developed there or already mirroring products that have already entered the UK market? Is there any other system for that notification to take place, or are we simply relying on the rapid reporting and response system? A lot of these projects will be used globally; therefore, reporting on any problems that occur will take place globally.
On the other side of the coin, how will EU member states and the European Commission be notified about unsafe products from the UK market which are not UK-specific but which have already entered the EU market? How do we intend to do that, when we do not have the formalised systems in place? Does the Minister accept the point which echoed around the Committee this afternoon, that if we do not have access to the EU’s information-sharing system, there is cause for concern that UK citizens will be less safe and less protected? What guarantees can we give that this will not be the case?
In addition, the instruments state that,
“biodegradability requirements will be transferred to the Secretary of State as the UK’s competent authority for detergents, and these functions will then be exercised by the Health and Safety Executive (HSE) after exit”.
I would like to probe biodegradability, because it is a matter that people value and hold dear. I want to be sure that, with the Minister having responsibility, biodegradability will not be downgraded as a consequence of other trade priorities and negotiations which are taking place. You might say it is the detergent version of chlorinated chicken. We want the trade deal, but if the price of the trade deal is that we lower our standards, can UK citizens be assured that our safety and protection level will not be downgraded?
The draft detergents amendment SI states that,
“there is an option for the HSE, acting as the competent authority for the Detergents Regulation under an Agency Agreement with the Secretary of State, to charge a fee for processing derogation applications for the use of industrial and institutional surfactants”.
What is the fee? How will the HSE enforce it? Will the fee be off-putting to businesses potentially wanting to trade in this country?
Several noble Lords referred to the report of the Secondary Legislation Scrutiny Committee on resources, which said that:
“HSE’s responsibilities after EU exit will expand significantly as a result of these and other instruments; it will need to be resourced adequately to carry out its new functions”.
That is very different from the Minister saying this afternoon that the additional requirements were minimal. Therefore, we need to find some way of bottoming this out. Is she saying that the Secondary Legislation Scrutiny Committee was wrong? It has obviously looked into this matter and says that it will need additional resources. It would be helpful if the Minister could clarify what the score is here. What additional funding has been provided to HSE to carry out these extra functions? How many extra staff does she envisage being hired to carry out these extra responsibilities?
The regulations also state that,
“the detergents Regulation cross-refers to a number of other pieces of EU legislation, including REACH Regulations”.
I know we are not going to debate this today but I want to put on record, in case there is any doubt, that we have serious concerns about the instrument relating to REACH regulations, and which we will deal with separately. Many of the concerns about REACH are also concerns that we have here about access to important information which the EU would normally have collated and shared with us, but which will no longer be available.
Paragraph 7.5 states that,
“the Secretary of State as the competent authority for detergents for the UK will exercise those powers, taking expert advice as appropriate”.
What does that mean about expert advice? Where will this advice come from? Is it just UK advice, or will the Secretary of State consult any other European agencies when formulating a policy on this? The issue of scientific and technical progress also comes up in relation to the technical annexes. Who will provide that scientific and technical progress when the update to the technical annexes takes place? How often is it envisaged that they will be updated? Who will be consulted about these updates before they are published?
I turn to the detergents safeguarding regulations. As has been said, the EM says:
“The safeguard clause may only be used on a case-by-case basis for a specific product, not for a class of product. The safeguard clause therefore cannot be used to introduce risk management measures of a general nature”.
Can the Minister confirm that that will indeed be done on a case-by-case basis and that there will not be any attempt to extend the use of this provision for a more general policy change? What safeguards do we have that it will be curtailed to a case-by-case basis?
Paragraph 2.5 of the Explanatory Memorandum states:
“Member States intending to use the safeguard clause must immediately inform the Commission and the other Member States, documenting the reasons for this decision”.
In that situation, will a devolved Administration who intend to initiate the safeguard have the same obligations to inform immediately all the devolved Administrations, the Secretary of State and the HSE, in the same way as member states currently do? What information sharing will there be within the UK to make sure that we are all aware of any safeguarding issues?
Paragraph 7.2 says:
“The Secretary of State and devolved administrations will be able to take urgent, temporary restrictive action in relation to a product through a safeguard clause”.
How will this process take place? How will this decision be made? Will there be consultation between Administrations? Will the HSE consult devolved Administrations? If Scotland decides to take action, does that mean that the decision will apply throughout the UK? It would be helpful if the Minister could say more about how that devolved responsibility will operate.
Finally on safeguarding, if there is a concern about a specific detergent, how will businesses be notified that their product is in some way being queried? If the products are already in the market, is there an arrangement for them to be recalled? What are the practicalities of detergents being identified as a risk to the health of humans or animals, and how will that be dealt with with the businesses concerned?
I have one last question, on the safeguarding measures not being imposed for more than 90 days. Why 90 days? If that product still poses a risk, can the measure be extended or rolled over, or do we have to revisit it from the start? What are the limitations on that 90 days? I look forward to the Minister’s response.
Baroness Vere of Norbiton
I thank all noble Lords for their contributions to the debate. It has been a measured debate and—thankfully—fairly on topic, which is always a relief. A number of noble Lords have raised some good questions, and I hope to be able to answer them. To the extent that I am not, I will certainly write.
However, I will address one issue straight up, which is about environmental protections post exit. The Government are very clear that we will not weaken environmental protections when we leave the EU. We will instead maintain, and even enhance, our already high environmental standards. The detergents SI will ensure the continuation of standards and requirements in relation to the placing on the market of detergents, while maintaining a high degree of protection for the environment and human health. I hope that as I go through the answers to the questions today, the Committee will feel this is indeed the case.
Lord Teverson (LD)
I am sorry to interrupt the Minister at this late stage but can I be clear about whether these detergents are subject to REACH regulations? Do they have to go through the REACH system as well? As she probably knows, for the majority of chemicals if more than 1 tonne is exported from or imported into the UK those chemicals are covered by REACH regulations, which lay down a large number of other provisions. Are those included or not? I am sorry if that is an unfair question. I do not need an immediate response.
Baroness Vere of Norbiton
It is a very interesting question. They are subject to the REACH regulations, which were mentioned by the noble Baroness, Lady Jones of Whitchurch. I note her concerns about those regulations. As I am sure she is aware, they will be debated in due course in your Lordships’ House and were already debated in the other place on 25 February. I have a little more information on that issue, but I want to put it into proper context so I will write to the noble Lord.
I return to biodegradability and whether it would be downgraded in future. Whether these detergents and surfactants hang around in the environment for a long time is a very important issue. It is clearly a bad thing because they play havoc with water tension and so on. The Government have set out a vision for a green Brexit, in which environmental standards will be not only maintained but enhanced. The biodegradability criteria in the detergents regulations are essential in avoiding these adverse impacts on the environment. We are obviously mindful that if these are not disposed of properly, they can cause foaming and degrade or assist the eutrophication of rivers, which I believe is not beneficial to organic life.
Trade agreements can cover a range of issues and although the UK will be able to negotiate its own trade deals in the event of no deal, focusing on growth areas for our economy, the UK Government continue to be committed to high environmental standards after EU exit and to maintaining a high degree of continuity with current climate goals, green policies and wider environmental targets. I reassure the noble Baroness that, as I mentioned earlier, any changes to the technical annexes will be done by statutory instrument, and will therefore come before your Lordships’ House. Those sorts of issues would be included within that.
A number of noble Lords touched on the resourcing of the HSE—I had fair wind that this might come up. This issue was noted by the SLSC, but I suspect that it probably got to the stage where it had seen the HSE a number of times and thought, “Hang on a minute, we probably want to do something”. For these instruments, the additional administrative requirement for the HSE is minimal. However, I will commit to trying to get an understanding across the piece about how many additional functions the HSE is being asked to take on, and confirm that it is satisfied with the resources it has. That is only fair, because this one is minimal. I completely understand that but the SLSC has made that point and it is worth following up on.
The issue of fees for the HSE is an interesting one. This is only for derogations, and there has been only one derogation across the EU. The fees for derogations are agreed; there was a consultation with the industry. I could go into great detail about these fees but they are designed to meet the costs of derogations; obviously, we do not expect those to happen very often. A derogation occurs where one is using a detergent for a specific purpose which does not fall within the regulations. It would be highly unlikely nowadays with the biodegradable detergents we have for them to be frequent at all.
I move on to the issue of experts. Noble Lords will be aware that the Health and Safety Executive is a world leader in the regulation of chemicals and will continue to be so following EU exit. It also has the necessary regulatory scientific and technical expertise in-house. However, The Government Chief Scientific Adviser’s Guidelines on the Use of Scientific and Engineering Advice in Policy Making of 2010 state that,
“advice from external sources should be sought whenever necessary”,
and we would of course do so. Sources of research and advice may include: the departments’ own experts and analysts; research and funding councils; expert advisory systems such as the Science Advisory Council and the scientific advisory committees, and research and non-departmental sources. We have a great tradition of science and research in this country, and I remain convinced that we would find the right group of experts for the right problem. As noble Lords will be aware these experts will be used to update the annexes, which will go through the usual process.
The noble Baroness, Lady Jones, touched on governance. We have been here a few times before—
Baroness Jones of Whitchurch
I was hoping the Minister would be able to update us.
Baroness Vere of Norbiton
I will not be able to accede to that wish today. I can go no further than we have been able to before with regard to the future of governance and the office for environmental protection, but I commit to the noble Baroness that we will update her as soon as we can.
Detergents (Safeguarding) (Amendment) (EU Exit) Regulations 2019
Baroness Vere of Norbiton
That the Grand Committee do consider the Detergents (Safeguarding) (Amendment) (EU Exit) Regulations 2019.
Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
Organic Production and Control (Amendment) (EU Exit) Regulations 2019
Baroness Vere of Norbiton
That the Grand Committee do consider the Organic Production and Control (Amendment) (EU Exit) Regulations 2019.
Baroness Vere of Norbiton (Con)
My Lords, these instruments correct technical deficiencies in legislation relating to organic production to ensure operability on exit. The instruments introduce no new policy and preserve the current regime’s organic standards. The Government are strongly supportive of organic standards, many of which were developed in the UK and adopted by the EU. The UK has a world-recognised standard of food production and labelling which we wish to see maintained. We have grouped these instruments for discussion as they both relate to amendments to organic legislation.
Early indications from the sifting committees were that SIs laid as negative but with a connection to agriculture were being selected to be uplifted to affirmative. While the Organic Production and Control (Amendment) (EU Exit) Regulations 2019 were not specifically recommended for uplift by the sifting committees, we chose to voluntarily uplift this SI to reduce the risk of it running out of parliamentary time. The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 contain transfer of function provisions, and as such the affirmative procedure must apply.
These statutory instruments apply to the United Kingdom, and we have worked with the devolved Administrations on their development. The legislation amended by the Organic Production and Control (Amendment) (EU Exit) Regulations 2019 relates to devolved matters, and the devolved Administrations have consented to that SI. The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019 are reserved. Officials have had very helpful discussions with their counterparts in the DAs, and we are working with them on all aspects of the organics regime to form an agreement on how we all work together going forward.
The Organic Production and Control (Amendment) (EU Exit) Regulations 2019 ensure that organic standards remain the same as now for organic operators within the UK by amending deficiencies in the retained EU legislation: for example, references to the UK as a member state. The certification and traceability of organic food and feed products will continue. This instrument sets out minor technical amendments and lays down a time-limited period during which the UK would not require additional border checks for organic products imported from the EU, the EEA and Switzerland.
The Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations also amend deficiencies in the retained EU legislation but deal with reserved measures covering imports and trade in organic food, feed and vegetative propagating material or seeds for cultivation. The SI transfers powers from the Commission to the UK to recognise countries and control bodies that can operate for the purposes of export to the UK. It also sets out minor technical amendments and lays down a time limit for the recognition of organic products imported from the EU, the EEA and Switzerland.
The UK organics industry is currently regulated by EU law, which sets out standards for organic production. Regulations apply to the production of food, animal feed and livestock, including bees and farmed fish, and any food or feed products marketed as “organic”. They set out the requirements for organic production, processing, labelling and imports, as well as the inspection systems that must be in place to ensure the requirements are met. They stipulate that organic food must be inspected and certified within the scope of a tightly regulated framework and originate from businesses registered and approved by organic control bodies on the basis of a rigorous annual inspection. The regulations will now apply to imports at UK borders, rather than EU borders, and ensure the continued regulation and certification of organic products to the current standards applicable within the UK, and equivalent standards where these have been agreed with third countries.
In addition, to ensure we can maintain the status quo and allow UK organic importers to continue to access their goods and ingredients from Europe as now, we have added provisions which permit the UK, for a time-limited period until 31 December 2020, to recognise the EU, the EEA states and Switzerland as having an equivalent organic regulatory regime to the UK. During this period, the UK will also exempt the need for additional checks or paperwork for organic goods originating from these areas. This exemption does not apply to goods that are simply transiting through these territories. This will ensure the status quo remains immediately after exit.
These measures remain essential to ensure UK organic businesses can maintain their organic certification and thrive in this growing sector. These instruments will ensure operability and that the strict standards in place for organic production are maintained when we leave the EU.
Officials have engaged regularly with the United Kingdom organic certifiers group. Our decision to continue to recognise the EU, the EEA and Switzerland for a time-limited period has been welcomed by the group as providing certainty on imports for the immediate future. We continue to work closely with it on this and on the future implementation of the UK regulations. I beg to move.
Baroness Byford (Con)
My Lords, I thank my noble friend the Minister for introducing these two Motions. I am particularly pleased that there will be a smooth transfer into UK law. The organic sector is still considered a fairly small one, but a very important one. The UK sector brings in a good, healthy amount of money—£2.2 billion to the UK economy and exports worth some £200 million —so the continuation of this trade is hugely important. At this stage I declare my own family farming interest, but we are not organic. We produce very healthy, good food, but it is not purely organic.
The Explanatory Memorandum talks about there being some 6,000 operators. Many of those are small businesses. Those classified as “small” employ “up to 50 people”. That is actually quite a lot of people in an organic movement. I wondered what proportion of the smaller ones have, say, 10 or five employees. What went through my mind was: although this is not supposed to have any financial burdens, if you are a smaller business it obviously has greater implications for you and the organisation of what you have to do. I would be grateful for a response on that one. I am glad that, on the control of imports, it is clearly laid out. I smiled slightly when we had a 20-page list of individual categories, which shows how complex and varied the whole organic sector is.
I welcome the production and control amendment, because I hope it will give great certainty to organic producers. It takes up to three years to turn to become organic from having been, perhaps, commercial farmers. We have often said that farming is a long-term investment —clearly it is—but on the organic side it is more demanding, because there are certain things you can and cannot do during your term of transfer.
Baroness Byford
My Lords, returning to our discussions of these two instruments, I have just about covered everything that I wished to. I stressed the importance of the organic movement: we are now up to some 6,000 organic operators. That is worth a lot of money to farming and agriculture in the UK economy and, even more importantly, to the growth of our exports.
I am grateful for the smooth transition the Government have planned, and apart from my question on the definition of “small” and “very much smaller” businesses, I well realise that the Explanatory Memorandum indicates that there is no expected cost to them. However, I would be grateful to the Minister for clarification on that when she comes to respond.
Baroness Miller of Chilthorne Domer (LD)
My Lords, we warmly welcome these SIs, which are absolutely essential for the continuity of trade in organic products. We particularly welcome the fact that the Government recognise the voluntary uplift.
I declare an interest which makes me a little more passionate about the sector. I used to work for the Soil Association, albeit very many years ago. It was an interesting time to be there, as it was developing certification techniques with the EU. The sector has moved on a lot in the 25 years since.
By and large, the sector is very happy with these SIs, as are we; it did not have any concerns about them as they currently are. The sector is happy that they are being proposed and debated as a framework for certainty for organic producers and consumers.
As the noble Baroness, Lady Byford, said, it is a really vibrant market. The organics market in the UK is worth some £2.3 billion, of which 8% goes abroad, mainly to EU countries. The importance of the organic sector for the UK is that it has introduced consumers to many ideas about more sustainable agriculture. So apart from being worthy both in economic terms and as an employer, it has been a flagship, introducing ideas around sustainability, the importance of soil, issues around chemical inputs and so on. It really is a sector that deserves our full attention.
The Government have taken the necessary step to ensure the continuity of trade through this SI. If there is any concern, it is really that this is a period of certainty for only 21 months. As annexe 2 mentions, at the end of that period, things will become uncertain again. In farming, 21 months is as nothing. If you are trying to make investments or change your farming methods, or if you are in conversion, 21 months is an extremely short time. Both producers and UK certification bodies would like to move as soon as possible to a period of greater certainty; I hope that the department is working on that.
The question of how the regulation will be administered, controlled and, particularly, developed in the light of future changes and challenges is something that I hope the Minister can touch on in her reply. Undoubtedly, there will be challenges from developments within other organic regulations. It is a fairly fast-moving scene now, with different products being withdrawn or coming on to the market. Of course, if we start to enter into trade agreements with the US—heaven forbid, but it is possible—that will be a massive challenge. I hope the Minister can give us some certainty about how this is going to be developed.
For consumers, it is equally important that the certification is gold-plated. Organic products command a premium price, so it is essential that consumers, when paying that premium price, can absolutely rely on the origin processing methods of that produce. Otherwise, if any doubt enters that market, it would adversely affect all those who are engaged in genuine organic production.
It would be difficult this afternoon not to mention tariffs—I heard the Minister’s caveat, so I will mention it only briefly. That will be another massive pressure on producers. I gather that tariffs are about to be published or may have been published this afternoon. That is another huge pressure on producers that I hope we will have the chance to debate in your Lordships’ House in the very near future.
Baroness Jones of Whitchurch (Lab)
My Lords, I am grateful to the Minister for introducing these SIs this afternoon and for organising the helpful briefing beforehand. We accept that these SIs are necessary to maintain current standards regulating the UK’s growing organic sector. The continued availability of high-quality produce and sustainable food supplies, in which the organic sector plays a key role, is vital for our food industry and important for consumers. For example, the Soil Association reports that the UK organic sector grew by 5.8% in 2018, its eighth consecutive year of growth. As the EM makes clear, the industry is worth something like £2.2 billion to the UK economy. I very much take the point of the noble Baroness, Lady Byford, who quite rightly said that so many people in that sector work in small businesses and make a particular contribution to the economy in that regard. Obviously, it is important that their futures are protected.
The noble Baroness, Lady Miller, said she felt that the sector did not have any concerns about these SIs. I will come back to that, but the Minister will be aware that the industry is already reporting negative impacts caused by the ongoing uncertainty of Brexit. Confidence is being undermined and businesses are warning that the consecutive years of growth achieved by the UK organic sector could be at risk. Therefore, we are looking to this batch of organic-related SIs, and to what the Minister is able to say this afternoon, to reassure the market of continued access, which the sector deserves and requires.
With this in mind, I have some questions for the Minister, the first of which is on imports. The noble Baroness, Lady Miller, raised the issue of the 21-month deadline. Annexe 2 of the Explanatory Memorandum says:
“For a strictly time-limited period of 21 months we will exempt the need for additional checks or paperwork for organic goods being imported directly from the EU, the EEA states or Switzerland except those organic goods which do not originate from but are simply transiting through these territories”.
I would like to explore what that 21-month deadline means. Can the Minister give some clarity on that? Has that amount of time been chosen to line up with the transition period? If so, what would happen if the transition period was extended? Is it an absolute deadline whether there is a deal or no deal? Is it written in blood, so to speak? Perhaps she could clarify the status of that 21-month deadline so that we are all clear on that.
Secondly, on exports, as has been touched on, future export arrangements with the EU are a matter for future negotiations. But can the Minister give us an assurance that future access to the EU market for our strong UK organic exporters is indeed a priority for the Government? Can she explain why we are giving guarantees to organic imports while no such guarantees are in place for UK organic exports? There is an imbalance there, and perhaps the Minister can explain why that is the case.
The Government have given notice that, after 29 March, importers will no longer use the EU’s Trade Control and Expert System New Technology, or TRACES, to register consignments of organic produce but must use a manual UK organic import system while a digital system is being developed. Can the Minister give the Committee an update on the progress in building the UK’s own digital system? Will it be fully functional on exit day? What work is being done to ensure that UK industry and its international partners are aware and prepared for this change? What assurances can the Minister give that the temporary manual system, and eventually our own permanent IT system, will provide the same level of certainty over origin and movement of produce as we have at the moment?
Paragraph 12.3 of the Explanatory Memorandum, on control of imports, explains that there has not been an impact assessment but:
“There may be minimal familiarisation needed for businesses to set up to use the new import and export systems”.
Can the Minister say what “minimal” means in this instance? Is she assured that this rather minimal objective has been achieved, and will that give businesses the information and knowledge that they need to be able to operate under these new systems? In other words, is the Minister sure that the communication and training systems are in place, running fully and meeting their objectives?
On the ongoing issue of resources and expertise, annexe 2 to the Explanatory Memorandum on control of imports states:
“The UK will be able to accept applications from overseas control bodies to certify to the UK organic standards, and subsequently approve these bodies if the UK wishes”.
Currently, Defra has approved eight certification bodies: six in the UK and two in Ireland. Is any additional expertise or resource needed for the UK to consider and process other applications when we are basically on our own in this matter, rather than having the EU’s information scrutiny process to rely on as well? Are those eight certification bodies up to the job and resourced properly, and do we need other certification bodies?
On a small point, annexe 2 in both SIs explains that certain duties—in Articles 29 and 38 of the Council regulations—have been downgraded from “shall” to “may”. The notes explain that these duties have already been completed by the EU. Will the Minister provide more information on what these articles include and why the specific duties have been downgraded? What is the thinking behind that? If they have been fully completed by the EU, perhaps they are not needed at all and there should be no reference to “may”.
Baroness Vere of Norbiton
I thank all noble Lords for their contributions today and for giving up the time to meet me beforehand to share some of their thoughts about these SIs. I start by recognising the strength of feeling across the Committee today about the strength of the organic sector in the UK. This was touched upon by my noble friend Lady Byford, who noted that the sector is worth £2.2 billion. Our figures say £2.3 billion, but what is £100 million between friends? It is an incredibly important area of growth and we must make sure that it continues to be strong and a key sector in the future. She talked about the fact that many of these are smaller operators, often with five to 10 members of staff, if that, and they are a very important part of the UK organic regime. The control bodies certifying organic operators are on the ground and are in touch with these businesses. While they cannot coach these businesses, they can provide them with information—and that is precisely what they do. I reassure noble Lords that there are no expected costs relating to this SI for such producers.
I will come on to the minimal familiarisation slightly later, but really it is very small. Familiarisation is only for those involved in import and export; for the majority who are not involved in those areas, this SI will have no impact at all.
It is important to note that we envisage financial support for organic farmers. I look forward to working with my noble friend Lord Gardiner on the Agriculture Bill when it finally gets to your Lordships’ House; I am sure we will have some good debates on that one—but it is not with us just yet, so back to no-deal Defra SIs.
The noble Baroness, Lady Jones of Whitchurch, asked about the 21 months. I agree with her: I looked at it and wondered why on earth that particular date was chosen. It was chosen for a good reason. The current EU organic regulation is due to be replaced from 1 January 2021, so it was thought appropriate to limit the recognition of these products to 31 December 2020 as those dates are commensurate. That date also happens to be the end of the implementation period, but this is a no-deal SI, and there would be no implementation period. Obviously I cannot give clarity as to what will happen thereafter; that will be up to any number of factors. However, we already have a very good idea of what those new regulations will be in 2021. Over the 21-month period, the Government will look at those regulations and aim to give the sector as much clarity as soon as we can. We recognise that farming cycles are much longer than those in other industries.
On regulations being developed in the light of future changes, the UK has always been a leader in this sector and it is our intention that we will continue to be so. We have an opportunity to be at the forefront of developments; if we do not have a deal with the European Union, we can work as an independent sovereign state and make sure that we pull others with us as we increase organic standards. We will of course work very closely with those in the industry—without them there is no organic sector at all—to ensure that future changes work for the UK and for consumers.
The noble Baronesses, Lady Jones and Lady Miller, mentioned tariffs. The noble Baroness, Lady Miller, is quite right: there was an announcement on tariffs at 7 am; I listened to it as I was driving. I have not had the opportunity to go into that in great detail. I suggest she look at what was announced today; it concerned tariffs across all sorts of industrial sectors. Organic products are subject to the same tariffs regime as conventional non-organic products. There has been a bit of movement on tariffs, and the Government have tried to reach a balance between making sure that consumers and businesses are protected and reducing tariffs as much as we can within that framework. It is, however, very important to remember that this is a temporary tariff; the tariffs announced today will apply only for a 12-month period, during which we will undertake a full review such that we can adjust the tariffs going forward. If there is no deal, we will be talking about tariffs for a very long time—which will be fun.
I turn now to the issue of uncertainty. The noble Baroness, Lady Jones, is absolutely right. Within the powers we have, we have managed to create as much certainty around imports as we possibly can by providing this 21-month period, during which time the system will stay at is.
It is obviously not within our gift to tell the European Union exactly what to do for our exports. However, for UK products to be exported to the EU, organic control bodies will need to be authorised by the EU. There is no definite length of time that it would take for this process to happen. The Government are already in technical conversations with the EU about making sure that it happens as quickly as possible, so we are working hard on that. If there is no deal, this will obviously come to the fore. We recognise the concerns of the NFU and the Soil Association.
I will investigate the expedited process further—it is not something about which I have information—but we recognise the concerns that this is a consequence of Brexit, not of the SI before us. I am sure all noble Lords would agree that, in this case, it would be very good if we could get a deal to make sure that our exports continued in the smooth fashion that they would expect. However, the EU has equivalency arrangements with a number of non-EU countries. The UK is aiming to transition those over to mirror the current arrangements. Because our organic standards will be as high as the EU’s, we believe that it will be possible to transition them to improve the flow of exports to those nations.
I turn to the topic of choices; may I point out first that it is TRACES NT, not TRACES? TRACES NT is new technology for controlling the import of organic food and feed; TRACES is for controlling the import and export of live animals, so for the record they are different systems. Regarding assurances on the manual and subsequent digital import system which replaces TRACES NT, work has been carried out to establish the needs of all users for its electronic replacement. The interim manual system largely mirrors the system that was in place just 17 months—a year and a half—ago. Users who could use that manual system will be familiar with how this works, and we have carried out a trial to make sure that they are still able to use it. We have also refined the guidance for all users. We will communicate with and issue further guidance for the sector, including third parties involved in using this system.
Organic products en route from third countries or in transit to the UK before the UK leaves the EU will be accepted with an EU certificate of inspection. Products that leave a third country after the UK has left the EU will be required to have a UK certificate of inspection, rather than an EU one. Instructions on the introduction and use of the UK certificate will be issued shortly. This brings me to the point about minimal familiarisation, as mentioned by the noble Baroness. That process should be within recent institutional memory for many of the organisations that will need to use it.
An issue raised by the noble Baroness, Lady Miller, and I think by the noble Baroness, Lady Jones, was about the UK taking power to accept applications from third-country control bodies and to permit them to operate in the UK. They asked who would oversee these control bodies. The Commission currently has the power to recognise third countries as equivalent to the EU, and to recognise control bodies as able to operate in third countries for the purposes of the input of organic products to the EU. This power will of course be transferred to the Secretary of State. Officials are in the process of considering how they will process and consider any such application but, before the UK accepts any application from third countries or control bodies, rigorous checks will be carried out to ensure that the current high organic standards in the UK are maintained.
Concerning the additional resource challenges, the UK is taking back control of organic regulations and the powers currently held by the EU. UK organic control bodies should continue doing what they do to a world-class level. The Government are working closely with the organic control bodies to ensure that any additional burden that falls on the organic sector is properly managed so that there is no fall in standards or public confidence as a result.
Turning to some final questions, what are the consequences of downgrading the references from “shall” to “may”? When EU Regulation (EC) No. 834/ 2007 was originally drafted, a number of references referred to the Commission needing to create specific rules. These were subsequently laid down in implementing EU Regulation (EC) No. 889/2008 and EU Regulation (EC) No. 1235/2008. Therefore, there is no longer a need for the UK SI to require rules to be made in respect of these matters—they have already been made. However, these instruments retain the power for further detailed rules to be made if necessary. I might write on that one. I do have an example here, but I think it would be more helpful if I put that in a letter, so that all noble Lords can understand the difference between “shall” and “may” in that circumstance.
I wish to assure the noble Baroness, Lady Jones, about the consultation. Concerns were raised about many issues, but it was the view of the group that there were not significant concerns about this SI. The biggest concern obviously is to maintain frictionless trade with the EU and we will do everything we can to address that.
Finally, there was a question about the grace period. Labelling is not covered in this SI, so I do not have anything further on that. However, I assure the noble Baroness that organic products that are already on the market in the EU before 30 March will be able to be sold and go through the system, but any exported after 29 March will not be able to be sold as organic until we have other arrangements in place.
Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019
Baroness Vere of Norbiton
That the Grand Committee do consider the Organic Production (Control of Imports) (Amendment) (EU Exit) Regulations 2019.
Rural Development (Amendment) (EU Exit) Regulations 2019
(5 years, 1 month ago)
Grand CommitteeRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Gardiner of Kimble
That the Grand Committee do consider the Rural Development (Amendment) (EU Exit) Regulations 2019.
Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, it is appropriate that I declare my farming interests, as set out in the register. The matters in the four instruments are closely interrelated; I hope it will be helpful to your Lordships if I speak to all four together. These instruments amend retained EU law and domestic legislation to ensure that rural development payments and maritime and fisheries payments can still be made after exit day. These amendments will maintain the effectiveness and continuity of EU and domestic legislation that would otherwise be deficient following our exit.
These changes are necessary to enable rural development programmes, partially funded by the European Agricultural Fund for Rural Development, and the maritime and fisheries operational programme, partially funded by the European Maritime and Fisheries Fund, to continue operating effectively in the United Kingdom following exit, until their closure at the end of the 2014-2020 programming period. There will be an opportunity to consider the scheme-specific regulations for the European Maritime and Fisheries Fund at a later date, as these are made operable in the Common Fisheries Policy (Amendment etc.) (EU Exit) Regulations 2019.
There are currently four rural development programmes operating in the UK, one in each Administration, providing funding for rural businesses, farmers, land managers and applicants living in a rural community with the intention of growing the rural economy, increasing productivity and improving the environment. The maritime and fisheries programme is UK-wide and promotes growth in the sector by providing funding for sustainable fisheries, marketing and processing and sustainable aquaculture, among other matters.
There are two European funds relevant to these instruments: the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund. The former supports the delivery of rural development in the UK and is worth some £430 million per year over the programming period. The latter promotes a competitive, environmentally sustainable, economically viable and socially responsible fisheries and aquaculture sector, which is worth some £32 million per year. The UK Government have guaranteed that any projects funded from the 2014-2020 allocations from these funds will be funded for their full lifetime.
The changes made by these instruments are necessary to ensure that the Government guarantee can be honoured and payments can continue to be made to agreement holders using domestic funding in place of funding from the EU. They provide certainty to individuals and businesses currently receiving rural development and maritime and fisheries funding or considering applying for funding during the current 2014-2020 programming period.
The Rural Development (Amendment) (EU Exit) Regulations 2019 amend the EU regulation that provides the general rules and structures governing support for rural development, providing payments to be made to agreement holders and laying down rules on programming, networking, management, monitoring and evaluation.
The Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019 amend the implementing and delegated provisions made under the main rural development EU regulation and four implementing decisions approving the rural development programmes for each of the devolved authorities.
The European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019 amend the EU regulation that sets out the shared framework for all the European structural and investment funds, but only as far as applies to rural development and maritime and fisheries.
Finally, the European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019 amend the supplementary provisions for European structural and investment funds for rural development and maritime and fisheries that are not dealt with elsewhere.
I emphasise that all these instruments remedy the deficiencies in the regulations to ensure that they continue to operate effectively when we leave. They do not introduce new policy, are technical in nature and preserve the current regime for supporting rural businesses, environmental land management and sustainable fisheries, among other matters. The amendments include omitting deficient references to the European Commission and member states and replacing them with references to either the UK or the relevant authority, as appropriate. The instruments also amend references to “Union law” throughout, so that the relevant EU regulations continue to operate effectively as part of national law. Provisions that are deficient because they are time-limited and under which the relevant actions have occurred have also been omitted, such as provisions relating to ex ante evaluations that have already been completed and provisions relating to prefinancing paid out when the programmes were initially set up. In addition, references to European institutions such as the European Investment Bank are also omitted.
One purpose of these modifications is to ensure continuity and clarity as to which public bodies have responsibilities towards the programmes. The obligations and discretions placed on member states will continue to be exercised after exit by relevant authorities in the UK. In this context, “relevant authority” means: the current managing authority of the maritime and fisheries operational programme, the Marine Management Organisation; the Secretary of State in relation to the Rural Development Programme for England; Scottish Ministers in relation to the Scottish Rural Development Programme; Welsh Ministers in relation to the Rural Development Programme for Wales; and the Department of Agriculture, Environment and Rural Affairs in relation to the Northern Ireland Rural Development Programme.
As noble Lords are well aware, agriculture and fisheries are devolved policy areas and are of special importance for all parts of the kingdom. We have worked closely with the devolved Administrations to produce these instruments; they place great importance on them and have given them their full support. I repeat that these statutory instruments are required for the continued operation of the rural development programmes and the maritime and fisheries programme. Without them, there would be no legal powers to make payments to fulfil the promises that these important programmes will continue. I beg to move.
Baroness McIntosh of Pickering (Con)
My Lords, I thank my noble friend for bringing forward this little group of statutory instruments. I shall pursue what was raised in Sub-Committee B’s report—the 18th report from the Secondary Legislation Scrutiny Committee. The Sub-Committee has invited this Committee to probe for more financial information. I have a series of questions and I shall try not to repeat myself.
There will be schemes that have finished, and new schemes that will commence but end after a key date—that could be 2021-22. What advice are my noble friend and his department giving to those who may be in a position to enter a new scheme but are reluctant to do so, since they are not sure whether it will complete and what the funding will be for it? My understanding is that there are schemes that fall into that category, and concern has been raised.
Paragraph 7.5 of the Explanatory Memorandum to the rural development regulations says:
“On EU exit, the UK will seek reimbursement from the EU for all CAP payments made to beneficiaries up to 29 March 2019”.
On what basis? We are still members of the European Union, so I would just like to know what the legal basis is for that. It seems very odd, because we are committed to the EU schemes between 2014 and 2019. It says “up to”, so I just ask for clarification, because I do not understand what the legal basis is. It goes on to say:
“Thereafter, such funding will be provided by HM Treasury”.
I know this is of great interest to the farming press and the farming community generally. What is the budget from which those funds will be provided, going forward?
The paragraph goes on:
“The UK Government has guaranteed that any EAFRD projects, where funding has been agreed before the end of 2020, will be funded for their full lifetime”.
Again, it would be helpful to know where these funds are coming from. It continues:
“The guarantee also means that Defra and the devolved administrations can continue to sign new projects this year and during 2020”.
What will be the duration of those schemes? Again, where will the money come from? It goes on:
“In addition, the Government has pledged to continue to commit the same … total in funds for farm support until the end of this Parliament, expected in 2022”.
This has been exercising me for some time. The Government have consistently said that we are committed to paying money until the end of this Parliament, which is expected in 2022. It begs the question: if a general election—heaven forfend—is held before 2022, possibly this year, does that leave the door open for a newly elected Government to cease to pay those funds for those three years, from 2019 to 2022, particularly if there is a change of Government? It is just not clear and it gives us the opportunity to clarify that this afternoon.
Baroness Byford (Con)
My Lords, I follow my noble friend on her various questions; she touched on some of the things I wished to raise. The question of the timescale is hugely important because, in the past, some agricultural schemes have run for 10 years and some for seven years. The timescale that she has just referred to—between 2022 and 2027—is a span of only five years, so that ongoing question needs to be resolved.
We have talked about the question of active farmers and of who receives payments in the future in many of our discussions on agriculture. I particularly wonder whether that could, in the future, include youth projects and retirement projects, or whether that is outside the particular instruments that we are looking at. It may well be so and if I am told that it is, I will perhaps be happier than I am with it not being mentioned here.
My noble friend Lady McIntosh spoke about tenant farmers and graziers, or commoners, but if I am right, I would also raise the whole question of contractors with the Minister because so many farms—as indeed ours are—are now contracted out. It was easier in the past to always refer to tenant farmers, but I think one will find that there are many more contracted arrangements now between farmers.
I, too, would like to raise paragraphs 3 and 4 of the report from the Scrutiny Committee’s Sub-Committee B. These refer to the deficiencies but the Minister has covered many of them in his presentation. If there is anything he wants to add to it, it would be good for the Committee to hear that. Also, what is happening with the financial analysis that has taken place?
Returning to the European structural and investment funds regulations, page 3 of the Explanatory Memorandum refers to the,
“special interest to the Joint Committee”.
I understand that the House of Lords sifting committee did not think it was necessary to have a debate. However, the House of Commons recommended that we should, which is why we are debating it here. It would be interesting to know what it was unhappy about and what steps the Government have taken to rectify that, but overall, these instruments are obviously welcome. They are very technical, and allow systems to keep going as they are.
Moving to rural payments, we have talked about money being made available for rural development. Can the Minister say if that will also be defined as, for example, making it possible for groups of people to come together to enhance businesses and make that food chain shorter? That is not clear here. One of the big challenges that we face as a nation is how to contain the costs of producing food. The Minister, who is so knowledgeable on these things, knows very well the great advantage one has in fruit growing, or whatever it is, if there is a chain that links everything together. Money has been put aside in the past for that sort of work and I wonder whether that would fall within these regulations. It is not defined but it would be of great help.
Once we have accepted these instruments and moved on, perhaps there will be greater freedom for the UK to develop more ideas of its own as to how money could be used better to ensure that we produce food to our very high standards while reducing the chain. That way, the actual cost to the consumer could be contained in a better way than it perhaps has been in the past—it has been a bit fractioned in some areas. Pigs and poultry are not falling into that but there are some other areas, particularly horticulture, where the coming together of business would bring great benefits. However, having read through this, I am not clear whether that falls within the category of the thinking behind these regulations.
Baroness Bakewell of Hardington Mandeville (LD)
My Lords, I will speak to the first two of these four statutory instruments that are being taken together. I thank the Minister and his officials for their very helpful briefing session on what is, as the noble Baroness, Lady Byford, has already indicated, a very complex subject.
The European agricultural fund for rural development provides rural development programmes which run under the multiannual financial framework. This SI allows funded programmes to run allegedly unhindered after exit date, until their natural end in 2020.
Annexe 2 of the Explanatory Memorandum lists the six legacy regulations affected by the SI, two more in which deficiencies will be remedied and four where the devolved Administrations have had programme amendments approved. This will ensure that structure fund programmes continue to run smoothly. As I understand it, these programmes will continue to report in the same way as previously but will report to the rural development programmes of England, Wales, Scotland and Northern Ireland, as the relevant devolved Administrations, instead of direct to the EU.
The aim of these SIs is to ensure operability of schemes and the continuity of investment in rural areas, which is the key element for me—it is really important. I wish to ask about the specifics of reporting mechanisms. The EU was very stringent on the information that was required by those who had received structure funds. Being involved with an organisation that had some of their money, I am aware of just how stringent it was. Can the Minister assure us that the UK will get good value for public money? This is especially necessary now that the Exchequer will pick up the funding instead of the EU.
As someone who comes from a rural community, I have a keen interest in the effect of these SIs. Last Friday I took part in a rural conference whose chief aim was to press the Government to produce a rural strategy. The Government have produced an Industrial Strategy which addresses the needs of urban communities and their economy. Now it is time to produce a strategy to address some of the huge disadvantages that rural communities face. These include lack of infrastructure, lack of transport, significantly less pupil funding, lack of affordable housing and poor access to services. I am concerned that the lifeline of rural development funding will be cut off by 2021, to be replaced by a nebulous undertaking that this will in future be covered by the Agriculture Bill.
The Agriculture Bill as published makes some significant changes to the way funding for farming and the environment would take place—as has already been said, public money for public good—but the Bill has become stuck in the Commons after Committee. I am concerned that a large gap in funding for rural areas is opening up before us. As the noble Lord has indicated, Sub-Committee B of the Secondary Legislation Scrutiny Committee estimates that the value of EU funds that will need to be replaced is between £400 million and £450 million a year of the European agricultural fund for rural development programmes for the remainder of the period to 2020. The loss of this investment will be keenly felt by many in deep rural areas.
Paragraph 7.3 of the Explanatory Memorandum states:
“After EU Exit, no new rural development programmes will need to be approved and from 2021 new agricultural and environmental schemes will be delivered under the Agricultural Bill”.
The Agriculture Bill will therefore need to be in place by 2021. It should have been in place by the 29th of this month, so that rural communities could plan ahead and have confidence that they were not going to suffer from a severe lack of resources. I know that the Minister understands these issues, but I am not sure the rest of the Government do.
Paragraph 12.1 of the Explanatory Memorandum, under “Impact”, states:
“Beneficiaries will continue to receive rural development funding as before EU exit”.
I am not confident that this will happen and am very concerned about the fate of rural communities.
Lord Teverson (LD)
My Lords, I first thank and apologise to the Minister for having missed his briefing on Monday; I was election monitoring in west Africa. I left central Guinea-Bissau at the right time and the journey all the way back to Gatwick Airport was perfect until I tried to get the Gatwick Express to Victoria, when it all went wrong and I missed the meeting.
For six years I had the great privilege of being a board member of the Marine Management Organisation, a Defra non-departmental public body. I have had an awful lot to do with structural funding over the years as an MEP, in other roles locally in the south-west and a little bit as part of the MMO. The EMFF recently has been one of the best-delivered structural funds. I am particularly thankful for the good work of the MMO’s finance director, Michelle Willis, under the direction of the chief executive, John Tuckett, who managed to deliver a programme of structural funding pretty well on time and of the right quality, which is unusual in this area.
I know the Minister always likes me to be positive, so I seriously congratulate the Government on one thing in particular—there will be others: in paragraph 6.7 of the Explanatory Memorandum, for the first time ever the Government have used the term “fishers” rather than “fishermen”. I have brought this up before, and the government response on why they used that word was that they consulted with the industry and that is the term it said it wanted to be used. There is something wrong in the way that that logic works. But congratulations on that. My sub-committee’s most recent report on the landing obligation, which I cannot go on to today, also used that terminology, because that is the way that participants in this industry are described in most other English-speaking countries. I hope that that will continue in future.
Lord Grantchester (Lab)
I thank the Minister for his explanation of the instruments before the Committee today and declare my interests as stated in the register as being in receipt of EU funds. As the Minister said, these statutory instruments are amendments to retained EU laws to allow the rural development programmes and others supported by a combination of UK and EU funding to continue to operate after EU exit for the remainder of the 2014-2020 programming period.
The Government have guaranteed that projects will be funded for their full lifetime, and have gone further by pledging to commit the same cash total in all funds for farm support, including the common agricultural policy, until the end of this Parliament, expected in 2022. All the SIs were originally negative instruments that the sifting committees of either or both Houses of Parliament have recommended be debated by Parliament.
Sub-Committee B of your Lordships’ Secondary Legislation Scrutiny Committee, in its ninth report, expressed disappointment at the uninformative nature of the Explanatory Memoranda that provided no explanation of the instruments’ discrete functions. On my analysis, the first two memoranda on rural development are the same, verbatim, except for the title. In its 18th report, the committee also commented that the provision of more financial information would have been useful to inform debate.
The second two instruments on EU structural funds are similar but more informative, providing some detail on the value of EU funds to be replaced. While it is recognised and appreciated that the Government have accepted the committee’s recommendations, why has so little information being provided in the Explanatory Memoranda?
Other than funding originating from the UK Government and several Commission roles being domesticated, will any significant changes result from the enactment of these SIs in a no-deal scenario? Although they appear largely technical, it is difficult to appreciate the amendments from the legal text.
I have some questions to clarify exactly what is happening here. First, these instruments transfer obligations or discretions from member states to relevant authorities, and these will be pertinent to each devolved Administration. I am sure the Minister will confirm that each devolved Administration—probably excepting Northern Ireland—has discussed and support the orders, and that each devolved Administration has consulted with the programme monitoring committee, which is composed of stakeholder representatives, including non- government organisations. Under the rural development regulations, no further details are disclosed. Under the structural investment fund regulations, there is further information that Defra has met the Rural Payment Agency’s industry partnership group, and these stake- holders are named.
Can the Minister clarify the extent of the consultation and the full extent of the consultees at devolved level? Have the commencement stakeholders named in the IPG UK list been consulted at devolved level—the Welsh, Scottish and Northern Ireland representatives of farmers, consultants and agents? Although consultation may have been impossible with the Northern Ireland Office, it would be useful to know that stakeholders had been consulted in that region.
Under regulations pertinent to the European maritime and fisheries fund, the EMFF, no details regarding stakeholders are given, other than that there was “targeted engagement”. Can the Minister clarify what “targeted engagement” amounts to and specify exactly which stakeholders were involved? These details would be most informative as noble Lords prepare for the Fisheries Bill, which is promised soon.
Secondly, at paragraph 2.6 it is explained that some regulations are being addressed separately by the Department for Business, Energy and Industrial Strategy. The split between departments leads to confusion. Can the Minister clarify whether the European structural and investment funds under paragraph 2.8 come under his department or BEIS?
Further, an explanation regarding the European Investment Bank, which the noble Lord, Lord Teverson, mentioned, and its relevance to these instruments would be helpful, as it is stated at paragraph 12.1 that the UK’s involvement in the EIB will cease on EU exit. The paragraph goes on to say that,
“domestic finance mechanisms would still be accessible”.
Like the noble Lord, Lord Teverson, I would be most grateful to understand what this refers to. What are these mechanisms, how will they operate in regard to these instruments, and who might those finance providers be?
Paragraph 7.5 of the Explanatory Memorandum for the structural funds instruments mentions that projects under both the European agricultural fund for rural development, the EAFRD, and the previously mentioned European maritime and fisheries fund,
“whose funding has been agreed before the end of 2020 will be funded for their full lifetime”.
How long will that be? I am a little confused that projects post leaving the EU, especially under a no-deal scenario, that have not yet been endorsed at EU level until 2020 will still be guaranteed by the Government—let us stick to the convenience for now that we will be leaving in March 2019. Can the Minister clarify the apparent contradiction? The noble Baroness, Lady McIntosh, also raised queries in this regard: whose budget will be responsible and in which circumstances?
I am grateful to the Minister for the consultations he has undertaken with all Benches on these SIs. They have been most helpful, as have his written replies to our previous questions on other SIs. I apologise that it was not possible for me to meet him this week, and that consequently I was not able to give him notice of my inquiries today. How does his department intend to manage agricultural and rural development support through these exit regulations, and no doubt CAP regulations to come next week, with full funding to 2022 and subsequently to the provisions of the Agriculture and Fisheries Bills? These support measures are indeed vital across the rural economy.
His department has included features of this landscape at paragraph 7.5 of the Explanatory Memorandum to the rural development regulations. This explains that the new RDP will cease, while,
“the same cash total in funds for farm support”,
including the common agricultural policy, no doubt, will continue,
“until the end of this Parliament”,
which is still expected to be 2022—even though the noble Baroness, Lady McIntosh, is quite entitled to reflect otherwise. The CAP is at a total funding of £3 billion per annum, and paragraph 7.7 is not entirely clear what the total or annual value of the funding of the EU commitment to scheme holders will be and for what duration. I would be most grateful if the noble Lord could give any further explanation beyond those given in his introduction. That only three lines on this are included in the financial implications is much to be regretted.
I am sure the Minister will also be aware of modulation, whereby deductions from payments under Pillar 1 are made and subsequently transferred to Pillar 2—rural development—and that these sums must be matched by the Government. Will the full administration of all these features still operate under the CAP towards rural development and be guaranteed by the Government? It looks as though there may be a gap before rural development is reinvigorated through the Agriculture Bill. Once again, the noble Lord, Lord Teverson, has drawn attention to the fact that there could well be nothing for fisheries.
I may be asking for far more than the Minister can possibly undertake under the regulations today, especially if he was to answer the pertinent questions from the noble Baronesses, Lady Byford and Lady McIntosh. However, I am sure that his full explanation will be greatly welcomed across the industry. With that, I am pleased to approve the instruments before the Grand Committee today.
Lord Gardiner of Kimble
My Lords, I am most grateful for what has been a valuable debate and consideration beyond what are, as we all know, the technical requirements behind why we need to do this. I fully appreciate that many of us have been waiting and wanting to get on with some primary legislation, but that is not in my gift, alas. If it is my privilege to do so, I look forward to taking part in discussions, in the Chamber and beyond, on how we take forward fishing and marine interests and agriculture, and the produce we create in our waters and on our land, which is so important for domestic production and for export.
These instruments ensure that the rural development programmes and the maritime and fisheries operational programmes continue to operate effectively. As I said, the rural development fund is worth some £430 million per year and the maritime and fisheries fund is worth some £32 million per year. I am sure that, at this point, the noble Lord, Lord Teverson, is thinking that that looks like a big gap. It was very generous of him to raise the fact that the fund has been a good custodian of other people’s money.
I will try to give as much detail on this as possible. The Government have guaranteed that any projects funded from the 2014 to 2020 allocations from these funds will be funded for their full lifetime. Whatever is agreed up to 2020, and if thereafter those projects are to be funded, that will be honoured. My noble friend Lady McIntosh opened by asking where the money is coming from. The Treasury allocates to departments. My advice to applicants is that Her Majesty’s Treasury funding is a guaranteed cover of all rural development projects entered into before the end of 2020 for their full lifetime. I encourage those who are minded to think strongly of that Treasury guarantee.
My noble friend raised another point. I have declared my farming interests, and we all would like as much certainty as possible. That is precisely why there is a promise to, as far as is possible—I use those words deliberately, and will seek to clarify that—guarantee the same level of funds until 2022. Some noble Lords will wish completely the reverse, but I have no idea whether this Parliament will go on until 2022, and, as we all know, no Parliament can bind its successors. But this is a promise to the rural community, while this Government are in office and have that responsibility, to honour the level of funds until the end of this Parliament. None of us here is in a position to know precisely when that Parliament may conclude.
My noble friend Lady McIntosh raised the legal basis for reimbursement and the date. It is because the EU is bound by the regulations while they apply to the UK as a member state. Any commitments that the UK has entered into prior to exit are commitments made from the EAFRD. That is the basis, and it was why that was the date in Article 50 and why precisely the Treasury guarantee kicks in for anything after the date of us leaving.
Several noble Lords raised the issue of the link to the Agriculture Bill, including my noble friend Lady McIntosh and the noble Baroness, Lady Bakewell. These SIs are made under the withdrawal Act; they allow us to correct deficiencies. The purpose of the Agriculture Bill, for which we are waiting, is obviously to provide the opportunity to redesign our approach to agricultural support, so that if we wish to we can amend retained EU law. Therefore, any amendments that we make are, yes, probably for the short term, and they will probably be to see how we might improve the current arrangements and give better experience to agreement holders.
Under Clause 1 of the Agriculture Bill, the Secretary of State may provide financial support for managing land or water in a way that protects or improves the environment. Of course, as we design our agriculture policy, we will look to see—and this is a point that I would like to put to my noble friend Lady Byford—how we can support bringing together groups who work together in the agricultural sector. Clearly, as we look at how we can enhance the environment and how we deal with landscape, it is with clusters and the concept of catchment areas. I think of Slowing the Flow at Pickering, in regard to my noble friend Lady McIntosh. All this is where working together in schemes is going to be very rewarding in terms of enhancing the environment and producing very good food as well in that context.
To my noble friend Lady Byford, I say that I am delighted that the House of Commons said that we should have a debate on this. My understanding is that future funding is important to rural and marine communities. I say to the noble Lord, Lord Teverson, that on 10 December 2018, the Government committed to providing £37.2 million of extra funding for the UK seafood sector for projects approved for 2019 and 2020 to boost the industry as we become an independent coastal state.
On the Agriculture Bill, rural growth, which includes the LEADER scheme, is currently included in the rural development programme and will continue under the government guarantee until the end of the programme period. Beyond that, the expectation is that rural growth initiatives will be supported through the UK’s shared prosperity fund, which is intended to deliver for all parts of the country. Wearing the rural-proofing element, which is a strong one, I say that Defra is working with the Ministry of Housing, Communities and Local Government to develop the ways in which it will support the rural economy.
Perhaps I can immediately say to the noble Baroness, Lady Bakewell, on the rural strategy that I was fortunate enough to give evidence with the Secretary of State, and he has said publicly that he was looking forward to the report of our Select Committee and that it might be an occasion to respond. I think he was generously saying, as noble Lords who were in that committee will have heard, that this was something that was raised. I know that he and I will be very much looking forward to the rural economy report whenever it comes out.
The noble Baroness, Lady Bakewell, asked for reassurances about reporting. I assure your Lordships that the level of rigour currently applied to ensure that the rural development programme achieves value for money and overall public benefit will continue. Inspections will still take place. Annual implementation reports will continue to be produced and approved programmes can continue to be evaluated administratively by relevant authorities. The National Audit Office will continue to be involved to maintain existing levels of scrutiny and good practice. We have put in place arrangements to ensure that the Commission’s functions are now taken up by each devolved authority or the programme monitoring committee, which is composed of representatives of environmental, rural and agricultural stakeholders, including non-government organisations.
The noble Lord, Lord Teverson, raised the question of EMFF and how new replacement work schemes will work. In the Fisheries Bill, we propose a power to replace, modernise and broaden the existing grant-making powers in the Fisheries Act 1981. This will provide greater flexibility and ensure that new grant schemes can deliver value for money. Fisheries are devolved and once we leave the EU and on the closure of the EMFF grant scheme, devolved Administrations have indicated that they would want to run their own grant schemes targeted on their national priorities.
The noble Lord asked about fishing support after 2020. The Government have committed to replace EMFF from 2021 across the UK for the next two years, as I said. It was announced that that extra EMFF will be available to UK-licensed vessels.
The European Investment Bank was raised by the noble Lords, Lord Grantchester and Lord Teverson. It currently has no involvement in UK rural development programmes or the maritime and fisheries programme. Treasury funding will still be accessible to those seeking it. The impact on agreement holds will therefore be negligible. I am bound to say that the loss of access to the EIB is a result of exit, not as a direct result of the instrument.
Lord Teverson
My Lords, may I say that my fishers friends in Mevagissey did not have the European Investment Bank highest on their priorities, but I am glad he clarified that.
Lord Gardiner of Kimble
I thank the noble Lord. I have dealt with the issue of further financial assistance.
The noble Lord, Lord Grantchester, raised areas where different Governments are engaged in regulating the same area. We are working closely with the Department for Business, Energy and Industrial Strategy in developing the instruments. The European rural development fund and the European social fund have domestic power to continue making payments following exit. This is not the case for the European agricultural fund for rural development or the European maritime and fisheries fund, which rely on the spending powers in the EU regulations. That shows the distinction. A different approach is therefore necessary to allow funds to continue operating under the Treasury guarantee.
The noble Lord also asked why the provisions do not apply to the European rural, development, social and cohesive funds. They are being addressed in a separate SI by the Department for Business, Energy and Industrial Strategy. That SI and others will be developed in your Lordships’ House on 14 March.
Lord Grantchester
I press the Minister to clarify that a little more. Is he therefore saying that it was the devolved Administrations’ responsibility to consult with their stakeholders rather than that of Defra, with its wider powers of consultation?
Lord Gardiner of Kimble
Defra has very good relations and dialogue with a number of rural and fisheries organisations across the devolved Administrations. It is right to say that there is sensitivity, if the responsibility is a devolved Administration’s, in that to appear to be overhauling that would not reflect well. It is a matter for the devolved Administrations, but clearly we wish to work collegiately.
Lord Grantchester
I ask the question only in terms of how it relates to how it is reported to us in explanatory memorandums, so we know that there has been full consultation in all the regions as well as on a UK-wide basis.
Lord Gardiner of Kimble
If I have any specific details, I will let the noble Lord know precisely. It may be helpful if I can glean some information on devolved consultations with stakeholders. I would say that when we have been engaged with key stakeholders, on fisheries, stakeholders we have been engaged with were supportive of the work being undertaken. On rural development, no concerns were raised by stakeholders, who expressed their appreciation of the work being undertaken.
I shall read Hansard, because my noble friend Lady Byford asked a number of points about youth and retirement projects, issues to do with contractors and other matters. All I would say is that the order is designed to continue with the arrangements that we have, but with the payment after we leave by our guarantee that we will fulfil the funding of any schemes that are applicable at the moment. Obviously, as my noble friend knows, this is not about future schemes, on which we will have all sorts of discussions. Whatever is appropriate now under these funds, people can apply for until the programme ends, and so forth. If there is anything further that I think would be helpful, I will inform your Lordships, but I recommend the instruments and I beg to move.
Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019
(5 years, 1 month ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the Rural Development (Rules and Decisions) (Amendment) (EU Exit) Regulations 2019.
Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019
(5 years, 1 month ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the European Structural and Investment Funds Common Provisions (Amendment) (EU Exit) Regulations 2019.
Relevant document: 18th Report from the Secondary Legislation Scrutiny Committee (Sub-Committee B)
European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019
(5 years, 1 month ago)
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Lord Gardiner of Kimble
That the Grand Committee do consider the European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019.
House of Lords
Maritime 2050 Strategy
(5 years, 1 month ago)
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Lord Mountevans
To ask Her Majesty’s Government what steps they are taking to implement their recently published strategy Maritime 2050: Navigating the Future.
Lord Mountevans (CB)
In begging leave to ask the Question standing under my name, I declare my interests as recorded on the register.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)
My Lords, following the successful launch of the Maritime 2050 strategy, the Government’s focus is now on harnessing the enthusiasm and momentum generated and on implementing the recommendations at pace. That is under way through themed route maps, two of which are already published, with more following throughout 2019. The Government’s continued strong partnership with industry will be crucial, and we are enhancing the governance arrangements, which bring government and the sector together, to ensure that we deliver this ambitious strategy.
Lord Mountevans
I thank the Minister for her response and commend the Government for the considerable work and support that the strategy demonstrates for this key sector. Trade, and our relationships with other countries, have clearly come into sharp focus. The maritime sector enables 95% of Britain’s exports and imports, contributes over £37 billion in GVA—bigger than aerospace—and supports almost 1 million jobs, more than aerospace or motor manufacturing. The strategy acknowledges the impact that new technologies will have on the maritime sector and the huge opportunities that will arise. What assurances can the Minister give that the Government will support and join MarRI-UK—in the light of leading maritime businesses, including SMEs, universities and other expert organisations, coming together through this national research and innovation body?
Baroness Sugg
I thank the noble Lord for his Question, for his support of the maritime industry and for the important role he played when chairing the Government’s Maritime Growth Study. The Maritime 2050 strategy makes it clear that new technologies can help transform the industry and provide significant economic benefit. MarRI-UK will bring together expertise from a range of businesses and other organisations, and I assure the noble Lord that the Government strongly support the work of MarRI-UK. We hope that the organisation will become a key partner in delivering our strategy as set out.
Lord Berkeley (Lab)
My Lords, I welcome this report but does the Minister understand the importance of shipbuilding? The report states that the Government will,
“further develop the UK shipbuilding and maritime engineering industry, building on our global reputation for design, innovation and quality”.
All that applies to Appledore, which is due to close this Friday. What are the Government doing to make sure that they get more orders and find an operator for it?
Baroness Sugg
My Lords, we published the National Shipbuilding Strategy in 2017, which will help transform naval and commercial shipbuilding. In relation to Appledore, the Government have worked hard with Babcock to identify defence opportunities that could protect the yard. However, regrettably, we were unable to identify any potential solutions. The South West Business Council has created a task force to help to ensure a future for the Appledore yard and negotiations with potential proprietors are ongoing. I know that the noble Lord has made representations on this matter to the Maritime Minister, who has responded and is working closely with local stakeholders.
Baroness Sater (Con)
My Lords, last week we celebrated International Women’s Day, but women are still extremely underrepresented in the transport sector. Only 4% of UK maritime certificated officers are women. This is a shocking statistic. What will the Government do to encourage diversity in the maritime sector?
Baroness Sugg
My noble friend is right to highlight that women are badly underrepresented in the maritime sector and across the transport sector. The Women in Maritime Taskforce, which is supported by the Maritime Minister, Nusrat Ghani, has been working to address the issue. More than 100 organisations have signed the Women in Maritime Charter, which commits maritime companies to building an employment culture that actively supports and celebrates gender diversity. We have also recently funded the 1851 Trust’s maritime roadshows, which will promote maritime careers to girls across the country.
Baroness Smith of Newnham (LD)
My Lords, under the heading of “competitive advantage recommendations”, Maritime 2050: Navigating the Future recommends that the Government and industry should work together,
“to maintain and enhance the attractiveness of the UK’s regional maritime clusters and London as a global maritime professional services cluster”.
Can the Minister explain to the House how the Government propose to do that in the context of Brexit and whether the Secretary of State for Transport is really the best person to be navigating our future?
Baroness Sugg
My Lords, we are working closely with the maritime sector to ensure its continued success regardless of the outcome of the Brexit negotiations. Much of the maritime sector is governed internationally and the UK plays a prominent role in the International Maritime Organization, which is based just over the river from here. We will continue to play a key role regardless of the outcome of the negotiations.
Lord Greenway (CB)
My Lords, while I welcome the Government’s strategy, I ask them to do everything in their power to expedite the re-emergence of coastal shipping. This sector is of great importance to some of our coastal communities, which have been suffering from economic decline. The adoption of new propulsion techniques such as gas or even hydrogen would benefit the environment and new ships would reduce the number of heavy goods movements on our increasingly congested roads.
Baroness Sugg
My Lords, we have the excellent Maritime Growth Study, which was led by the noble Lord, Lord Mountevans, with a review published last year. I agree with the noble Lord that we must do what we can to support the ports around our country. We have made great progress in ensuring that the UK has a strong maritime sector, with several billion pounds-worth of investment having been made across UK ports in recent years. The technology factor which the noble Lord has highlighted is something that we focus on in the strategy.
Lord West of Spithead (Lab)
My Lords, I welcome this document but it is rather light on action. I am delighted that the Minister has said that it is harnessing my enthusiasm to try to do something about it—I would like to try to show that I have some enthusiasm for it. My question relates to shipbuilding and ship repair. There is no doubt that that is a crucial part of all of this. We have heard mention of Appledore already. We are about to go for competition for what I hope will be three solid support ships for the Royal Navy. Surely those ships should be built in the United Kingdom so that we can get the full benefit of maintaining high-level, high-tech jobs. We would not have to close shipyards or make people redundant. We can use British steel and there is absolutely no reason that we cannot build such ships in this country, because there is no requirement to put them to open competition.
Baroness Sugg
My Lords, I believe that a global competition is running on that, but a British consortium is bidding. As I said earlier, we published the National Shipbuilding Strategy in 2017 which will help transform naval and commercial shipbuilding and the related procurement process. It details a new and competitive approach to the delivery of shipbuilding in this country.
Lord Tunnicliffe (Lab)
My Lords, there seem to be more than 100 recommendations in the report, along with 143 references to the Government. Just how much resource is the Department for Transport going to put into this project?
Baroness Sugg
My Lords, the noble Lord is right to highlight the many recommendations in the strategy. It contains commitments on how we are going to take action across the seven themes addressed in the strategy. Our priority is to ensure that the recommendations are implemented, with a focus on the next five years. I referred earlier to the publishing of road maps which will set out the plans, milestones and timing for the implementation of the recommendations. We have resources in place to deliver the strategy and of course we are also working closely with the industry to help deliver it. In terms of future funding, we are putting together a bid for the upcoming spending review which reflects our ambitions and the commitments made in Maritime 2050.
Commonwealth
Lord Chidgey
To ask Her Majesty’s Government what progress they have made on building a fairer Commonwealth since the Written Ministerial Statement by the Secretary of State for Foreign and Commonwealth Affairs on 14 January (HCWS1247).
Baroness Goldie (Con)
My Lords, the Government continue to work with Commonwealth partners to build a fairer future for our citizens. Highlights include, first, the platform for girls’ education, co-chaired by the Foreign Secretary, which published its first report in January, examining the state of girls’ education. Secondly, over 30 highly qualified women peacebuilders have joined the UK-funded women mediators initiative. Just this week, my noble friend Lord Ahmad of Wimbledon hosted a reception for Commonwealth Ministers in New York to drive forward the women, peace and security agenda.
Lord Chidgey (LD)
I thank the Minister for her reply. I commend the Government for their endeavours as chair-in-office of the Commonwealth as we approach the Rwanda CHOGM. The £500 million allocated to the project set out in the ministerial Statement is significant including, as it does, a promise of £212 million to deliver 12 years of quality education to girls across nine Commonwealth countries.
However, we need assurances that these funds are being spent wisely and effectively. What monitoring and oversight procedures, and what management structures, are in place to ensure that the funds expended are targeted effectively and provide a sustainable investment over the longer term? Where does accountability lie?
Baroness Goldie
I thank the noble Lord for raising an important question. Each of the four thematic areas identified at CHOGM—fairness, sustainability, prosperity and security—is overseen by the UK Commonwealth envoy. Quarterly steering board meetings assess progress and beneath that is a raft of other structures. I reassure the noble Lord that the matter is under constant review and a structure ensures that the money reaches where it is intended to go.
Lord Howell of Guildford (Con)
My Lords, I declare an interest, as in the register. Does my noble friend agree that the modern Commonwealth is not just about governance and is not a treaty organisation at all? Today, it is just as much a vast network of professions, civic agencies, universities, schools and every kind of professional and scientific or medical interest. This side of it is, in many ways, more important than the headlines we read about treaties, communiqués and so on. As we are the chair in office, does she undertake that we will do all we possibly can to strengthen this side of the Commonwealth, because it is a terrific and major transmission mechanism for Britain’s influence and soft power in a fast-changing world?
Baroness Goldie
I suspect everyone in the Chamber will entirely agree with my noble friend. The Commonwealth is an extraordinary organisation. With over 2.4 billion people, it is home to one-third of the world’s population, 60% of whom are under 30, so my noble friend is right to talk about the potential for influence and opportunity. Underpinning it all is the important component that its people are united by a shared history, language, values and legal system. It is a very relevant, strong and commendable structure.
Lord Collins of Highbury (Lab)
To pick up the Minister’s point about shared values, before the last CHOGM in London, the Prime Minister quite rightly apologised for the colonial legacy of criminalising homosexuality. The Government have promised to fund and support those countries that wish to change those laws and get rid of that legacy. What progress has been made and can we anticipate other countries decriminalising homosexuality?
Baroness Goldie
The noble Lord makes a very important point. The Prime Minister’s declaration was very positive and well received. The noble Lord will be aware that the Commonwealth Secretariat and associations work with member states to raise general standards on human rights. On his specific issue, it was interesting that the 2018 Commonwealth summit saw the largest ever number of visiting LGBT activists from around the Commonwealth attending all four official forums. Using UK funding, the Equality and Justice Alliance is working to create a fairer, more equal and more inclusive Commonwealth for women and girls and for the LGBT community.
The Lord Bishop of Southwark
My Lords, I congratulate Her Majesty’s Government on the usefulness of the programmes outlined on 14 January, not least in education. What steps do the Government of Zimbabwe need to take to secure the support of Her Majesty’s Government for an application to rejoin the Commonwealth?
Baroness Goldie
I thank the right reverend Prelate for that question. He will understand that it is not for the UK to decide whether Zimbabwe is to rejoin the Commonwealth; the final decision is for all Commonwealth members. The UK would support readmission only if Zimbabwe meets the admission requirements, complying with the values and principles set out in the Commonwealth charter. I must say, the disproportionate use of force by its security forces, as seen in January, is inconsistent with the charter.
Viscount Waverley (CB)
My Lords, there is disquiet in trade policy circles about a lack of co-ordination over how the Commonwealth fits in the overall constellation of EU-UK FTAs. Will the Government set a time limit for improving the unilateral preferences it grants to the Commonwealth in the longer term, with more clarity on the level of access to be provided to less-developed countries?
Baroness Goldie
I thank the noble Viscount. He will be aware of our healthy trading relationships with our Commonwealth members; indeed, he will be aware of what is called the Commonwealth advantage, which is a very important component of those relationships. I do not have any information on the specific issue he raises but I undertake to investigate it. If I find anything out, I will write to him.
Lord Marland (Con)
My Lords, I declare an interest as the chair-in-office of the Commonwealth Enterprise and Investment Council. Does the Minister agree that it is all very well having these initiatives, but unless the Commonwealth institutions are strengthened to deliver them, they are all for naught? What steps are the Government taking to strengthen those institutions?
Baroness Goldie
At CHOGM, leaders emphasised that the full social, economic and political participation of all—irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status—is essential for a healthy Commonwealth and for democracy and sustainable development to thrive. He may be aware that the UK provided additional funding to the Commonwealth Secretariat to conduct its class-leading electoral observations and engage with Commonwealth electoral management bodies to advise them on improving democratic processes in the Commonwealth.
Aircraft Carrier Task Force
(5 years, 1 month ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what they consider to be the minimum size and composition of a United Kingdom aircraft carrier task force when deployed to the Pacific.
The Minister of State, Ministry of Defence (Earl Howe) (Con)
My Lords, the United Kingdom carrier strike group will achieve initial operating capability in December 2020 and deploy in 2021. The size and composition of that group is set by the deployment requirements as determined during operational planning.
Lord Wallace of Saltaire (LD)
I thank the Minister for that non-Answer. Can he confirm that the normal aircraft carrier task force requires two, three or four frigates, one or two submarines and a couple of support ships, and that to maintain a task force of that size in the Pacific requires at least as many ships at home, in maintenance or on their way in and out? Does he recall the Secretary of State for Defence’s speech at the Royal United Services Institute some weeks ago, in which he promised that we intend in our future global deployment to keep six ships permanently in the Gulf and maintain a permanent presence in the Caribbean and the Asia-Pacific? He said:
“Our vision is for these ships to form part of 2 Littoral Strike Groups complete with escorts, support vessels and helicopters. One would be based east of Suez … and one based west of Suez in the Mediterranean”.
Is the Minister confident that the Navy is capable of supporting all these parts of the Secretary of State’s vision?
Earl Howe
My Lords, we will always have a sovereign task group capability. As I said, the carriers will operate as part of a maritime task group, which will be tailored to meet the required tasks in a particular case. The precise number and mix of vessels deployed would depend on operational circumstances. As the noble Lord knows, we will be able to draw on a range of modern and highly capable vessels to support the carriers, including Type 45 destroyers, Type 23 frigates, Astute-class submarines and, in due course, Type 26 frigates. We will also work routinely with ships from allied navies.
Lord Touhig (Lab)
My Lords, is this sabre-rattling in the Pacific intended to give our friends in the region confidence, or to make the Chinese tremble? When the Americans deploy a carrier they provide an escort of a cruiser, four destroyers, a carrier wing, a submarine and 7,500 sailors. Can we do that?
Earl Howe
My Lords, this is not about sabre-rattling. Indeed, it is not about antagonising China in any way. My right honourable friend the Defence Secretary announced that the first operational mission of the “Queen Elizabeth” would include the Mediterranean, the Middle East and the Pacific region, thereby enabling the Royal Navy to maximise the opportunities we have to exercise and interact with our key regional allies and partners, and to make a statement about upholding the international rules-based system, including freedom of navigation.
Lord Boyce (CB)
My Lords, does the Minister agree that one must be careful not to get seduced by the destroyers and frigates—much as I would like to see a bigger destroyer and frigate force? The Royal Navy consists of other vessels—for example, the important role of mine counter measures vessels in the Persian Gulf, and what our great RFA ships can do. They will all contribute to that statement that the Secretary of State made at RUSI. One should not focus purely on destroyers and frigates, much though I would like to do so on a day-to-day basis.
Earl Howe
The noble and gallant Lord is absolutely right. Of course the number of platforms matters, but I would say to noble Lords, look not only at the number of warships; look also at the breadth of capability that the Royal Navy possesses. There are few navies in the world that can match the Royal Navy for the range and quality of the defensive, offensive and deterrent effects that it can deliver.
Lord West of Spithead (Lab)
Does the Minister not agree that we talk about this as if the carriers were vulnerable, whereas they can go 500 miles in any direction in one day, and are extremely difficult to find? Certainly, terrorists cannot get at them at all when they are at sea, unlike a static air base, which is very easy to find, as we know exactly where it is. However, if we deploy a carrier group east of Suez into the Indo-Pacific region, does the Minister not agree that it would be foolhardy—historically we have never done this—not to have within the region, because of the transit times, at least one SSN, one destroyer, two key ASW frigates and the support ships involved? Doing that will put huge pressure on the other tasks the Navy does day to day, because we have insufficient frigates and destroyers to do all those tasks as well.
Earl Howe
The noble Lord, with his immense experience, is almost certainly right about the kinds of deployment that we will see the carrier perform. The first operational deployment is still in the planning stage. As recently announced, it will involve our Dutch allies: it will be a joint deployment with US Marine Corps Lightning squadron. The precise composition of the group is being worked through at the moment. We should emphasise the noble Lord’s first point: this carrier represents an extremely capable strategic deterrent for the nation. Let me stress that it will be robustly protected by air and sea assets against threats of all kinds.
Lord Trefgarne (Con)
My Lords, I do not wish to challenge the principles set out by the Secretary of State in his recent speech, but is it not better not to go into too much detail on these occasions, for fear of challenging the safety and security of the units concerned?
Baroness Smith of Newnham (LD)
My Lords, the Minister has on several occasions talked about working with our allies, as he has in the past in the context of the escort ships alongside the Queen Elizabeth class. What additional work are the Secretary of State and the Ministry of Defence doing to ensure that we have stronger bilateral co-operation, particularly in the context of Brexit, to strengthen our resilience?
Earl Howe
There is a great deal of interest on the part of our European allies, in particular, in working more closely with the Royal Navy once the carriers come into service. The carriers will enable the UK to make an unparalleled contribution to NATO, not only through the carriers’ own capability but also as a means of coalescing European naval effort alongside that of our close partners the United States.
Knife Crime: First Aid in Schools
(5 years, 1 month ago)
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Lord Watson of Invergowrie
To ask Her Majesty’s Government what assessment they have made of the number of schools offering pupils advice on what first aid to deliver, and how to communicate clearly with emergency services, when someone has been stabbed.
The Parliamentary Under-Secretary of State, Department for Education (Lord Agnew of Oulton) (Con)
My Lords, we know that first aid saves lives. That is why life-saving skills are part of health education, which we are introducing in all state-funded schools. Pupils will be taught first aid, how to make efficient calls to the emergency services and, in secondary schools, CPR. We are also introducing relationships education in all schools. That will help pupils to form and maintain healthy relationships, manage conflict and get help when it is needed.
Lord Watson of Invergowrie (Lab)
I thank the Minister for that reply. Children are learning in school how to deliver first aid to knife crime victims because they increasingly find themselves affected by violence. I commend the important work being done in schools by the charity StreetDoctors. Last week, the Prime Minister denied that there was a direct link between reduced police numbers in communities and increased knife crime and, although that was widely refuted, not least by the Metropolitan Police Commissioner, many usually linked causes contribute to knife crime. One of them is permanent exclusions from school, which have risen sharply in recent years; there is a shortage of registered provision for excluded children, some of whom are thus unsupervised. Exclusions are a necessary and important sanction, but does the Minister agree that it is not acceptable or indeed legal to exclude without due regard for the impact on and risks to the child being excluded?
Lord Agnew of Oulton
My Lords, the noble Lord raises a very important point on exclusion. It is always a last resort to use a permanent exclusion for a pupil. Just to give some context, the percentage of permanent exclusions last year was actually less than it was 10 years ago. In 2006-07, it was 0.12% and last year it was 0.10%, so we need to keep that in perspective. We are pretty confident that there is no causal link between permanent exclusions and knife crime. However, we are alert to the need to provide better specialist provision for children who are permanently excluded. That is why we announced a number of initiatives in October, including an extra £100 million in capital for special provision for schools.
Lord Storey (LD)
My Lords, it is sad that the noble Lord, Lord Watson, had to ask this Question, but the bigger question is why young people are being stabbed. After a decade of austerity, we have seen youth services decimated in our towns and cities and positive activities for young people are almost gone. What will Her Majesty’s Government do about knife crime, not in terms of the narrow criminal issues but in terms of creating healthy community activities?
Lord Agnew of Oulton
My Lords, the noble Lord is absolutely right that the causes of knife crime are complicated. We must be honest about not fully understanding them. I accept that austerity is one reason offered, but I am not certainly convinced. We have done a number of things to support young people in terms of ensuring that they have a good education. One priority of the Secretary of State is what he calls the five foundations of character—sport, creativity, performing, volunteering membership and the world of work. I commend to noble Lords a particular initiative that I am always keen to promote called OnSide Youth Zones. Nine of these are now open and six more are planned, mostly in London. They provide an avenue for young people between what are considered the danger hours after leaving school at around 4 pm until 6 pm.
Lord Lexden (Con)
My Lords, is my noble friend satisfied that the police are liaising closely enough with schools as and when the need arises? Are the Government making more resources available to the police generally to help combat this terrible scourge?
Lord Agnew of Oulton
My noble friend asks a good question. In fact, about a month ago, I wrote to the head of Counter Terrorism Command in London to broker a meeting between him and some heads in London so that schools and police work together. We have introduced a number of initiatives over the past couple of years to support these areas. For example, the Big Lottery Fund invested £80 million towards the #iwill fund and £40 million to the Youth Investment Fund. In addition, in October this year, we announced the new £200 million Youth Endowment Fund to provide support over the next 10 years for young people most at risk of serious violence.
Lord Laming (CB)
Does the Minister agree that the reduction in funding for local government of more than 30% during the austerity programme has resulted in all the preventive services being clawed back, and in those services being crisis driven? This has resulted in young people not having the alternative support services that we had become used to providing.
Lord Agnew of Oulton
My Lords, I do not think that is the case. I mention two initiatives that we have introduced in the past couple of years. In terms of education, we are reforming training through the early education framework to make teachers more aware of how to effectively manage behaviour. We have recently changed the guidelines on keeping children safe in education, which again involves training and alerting teachers to be more aware of emotional problems that might arise in children. There is great need for wider awareness.
Baroness McIntosh of Hudnall (Lab)
My Lords, the House might have been surprised to hear the noble Lord say with such confidence that there was no causal link between permanent exclusion and knife crime. Does he at least accept that there is a correlation between permanent exclusion and involvement in various kinds of criminality, including knife crime, and that one of the reasons why this is serious is because the alternatives to conventional schooling for those who have been permanently excluded are far from adequate and need serious review?
Lord Agnew of Oulton
My Lords, as I said in reply to an earlier question, we are conscious that specialist provision for children who are permanently excluded needs to be improved. I completely accept that, which is why we have introduced additional funding. We are encouraging local authorities to bid for specialist additional-provision free schools to ensure that that provision is available.
Lord Roberts of Llandudno (LD)
Does the Minister not think that knife crime and so on goes beyond the police? It goes to communities, as mentioned earlier. The communities that we used to belong to when we were young and the organisations are no longer there. Youth clubs have closed in many places and youngsters are looking for alternative ways of acting together. Is it not time that the Government paid much more attention to trying to build our communities, not only in the countryside where we are losing them, but in the cities?
Lord Agnew of Oulton
The noble Lord is right to say that this is an entire community endeavour; it is not down to just the police or schools. I refer him to a recent report published by Action on Violence, which looks at the case study in Scotland. The noble Lord, Lord Watson, will be interested in it. A decade ago, Glasgow was considered the murder capital of Europe but now knife crime in Scotland is at a 42-year low. That has been approached through treating it as a public health issue, which meant that the police, social, health and school sectors all worked together. It clearly has worked.
Trade Bill
Wednesday 13th March 2019
(5 years, 1 month ago)
Lords ChamberRead Full debate Trade Bill 2017-19 View all Trade Bill 2017-19 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 127-R-II Second marshalled list for Report (PDF) - (11 Mar 2019)
16:36 - Division on Amendment 22 - Ayes: 285 / Noes: 184 - Amendment 22 agreed.
17:36 - Division on Amendment 24 - Ayes: 254 / Noes: 187 - Amendment 24 agreed.
19:22 - Division on Amendment 34 - Ayes: 193 / Noes: 154 - Amendment 34 agreed.
“Continuation of North-South trade and prevention of customs arrangements at borders
An international trade agreement between the United Kingdom and the European Union may not be ratified under sections 20 to 25 of the Constitutional Reform and Governance Act 2010 unless the agreement—(a) is compatible with the terms of the Northern Ireland Act 1998, and(b) does not—(i) negatively affect any form of North-South trade in goods or services or the operation of the relevant North-South implementation bodies, or(ii) create or facilitate customs arrangements between Northern Ireland and the Republic of Ireland after exit day which feature—(a) physical infrastructure related to customs checks,(b) a requirement for customs or regulatory compliance checks,(c) random checks on goods vehicles, or(d) any other checks and controls related to trade, that did not exist before exit day and which are not subject to an agreement between Her Majesty’s Government and the Government of Ireland.”
Lord Hain (Lab)
My Lords, the amendment stands also in the names of the noble Lords, Lord Kerr and Lord Bruce, and the noble Baroness, Lady Altmann. This amendment, which has cross-party support, is consistent with the previous amendment carried by your Lordship’s House, and which the Government accepted when the European Union (Withdrawal) Act was adopted last summer. However, it is vital that those provisions in Section 10 of the withdrawal Act are reflected in this Bill, which concerns not our divorce deal, as that Act did, but our long-term trading relationships.
In principle, the UK has joined Ireland and the EU in a shared objective of avoiding a hard border on the island of Ireland in order to help protect the hard-won peace process delivered by the Good Friday agreement—a peace process that is still just that: a process that, in my view, has dangerously reversed these past couple of years. The border is often described as the Irish border, a description which seems to absolve the UK of any ownership of it, but it is a UK land border with Ireland. If we leave, it will be a border between the UK and the EU, so it is our responsibility as much as it is Ireland’s and the EU’s responsibility under any circumstances.
Only last week, the head of the Northern Ireland Civil Service, David Sterling, warned of potentially grave and profound consequences of a no-deal Brexit—including a sharp rise in unemployment, the collapse or flight of businesses and potential unrest—for Northern Ireland, which, lest we forget, voted by 56% to 44% to remain in the European Union in 2016. Senior civil servants do not usually speak so candidly and compellingly. Advocates of a kamikaze Brexit might take notice and might also take notice of the strong words of the 50 or more Northern Ireland businesses which wrote to MPs in similar terms over the weekend.
The extent of trade and traffic over the Irish border is huge: 110 million person crossings take place every year; Northern Ireland, with its population of 1.8 million people, exports £3.4 billion over the border, by far its biggest export destination outside the UK and the first export destination for new and growing enterprises; at least 5,000 Northern Ireland companies trade with their neighbours over the border with Ireland; tens of thousands of people live on one side and work on the other; supply chains operate across the border without impediment; more than 400,000 lambs and 750 million litres of milk are exported across the border to Ireland for processing; and 177,000 heavy goods vehicles and 208,000 light vans cross the border every single month, which is 4.6 million crossings a year, and there are 22 million car crossings, and they take place all along a 300-mile border with nearly 300 crossing points.
By way of comparison, the Norway-Sweden land border is 1,000 miles long with only 57 crossing points. That is a hard border accompanied by infrastructure at the frontier, yet it is the very one most cited by those Brexiteers who seek to brush aside our border with the Republic as something which can be solved with a few cameras and some online programmes.
There are unique arrangements under the Good Friday/Belfast agreement for north-south co-operation. The Department for Exiting the European Union lists no less than 157 different areas of cross-border work and co-operation. Many of them have been facilitated by the common legal and policy framework provided by Ireland’s and the UK’s common membership of the EU since 1973. These areas are the things of everyday life—the precious signs of normality in the post-conflict border region—and there must never be new barriers or controls erected to block or discourage them. They include: food safety; tourism; specialist schools; fighting crime; tackling environmental pollution; water quality and supply; waste management; bus services; train services; cancer care; blood transfusions; and gas and electricity supply. We must never disrupt these arrangements, either through a divorce deal or—the amendment is directed at this—any new trade agreements.
WTO rules, which primarily remove barriers to trade and prevent unfair discrimination, will not allow these areas of north-south co-operation and everyday cross-border movement to be maintained. WTO rules and the obligations of an EU member state would strictly limit the kind of bilateral co-operation between the Republic and the UK as an EU member state which has made the border invisible in everyday life.
Some find all these essential facts to be tiresome obstacles to their Brexit dream. They argue that the border in Ireland will never need any new barriers, that the UK will never erect any on its side and that somehow Ireland, which by law has to obey EU and WTO customs and regulatory rules, will not do so either. The same people go on to use the word “technology” as a magic solution, repeatedly citing reports by one or two alleged experts on how, maybe, such solutions might work and might be ready someday, somehow.
Lord Kerr of Kinlochard (CB)
My name is on the amendment but I have very little to add to the authoritative introduction from the noble Lord, Lord Hain. I agree with him that we should be pressing at an open door here. At the start of Report, the Minister, in responding to me on what the tariff regime would be in the event of no deal, indicated that we would be told in due course. Such is her power that I understand that the schedules were published this morning—conveniently for our debate. I am sure that that was the only reason for their publication and I am sure that we owe it entirely to the Minister, because the timing is so apt.
I myself have seen nothing from the Government but, according to the press, it is made clear in today’s announcement that temporarily at the outset—I do not know how long that means—if a tariff regime is required on 30 March because we leave with no deal, it will not be applied at the inner Irish border. There will be no tariffs and no customs checks, and imports will be exempt from quotas, although, for imports from the EU other than across the Irish border, tariffs will be charged—10% on motor cars and quite a high tariff on agricultural products of various kinds. I am not quite sure how long such an arrangement can last. It will be a breach of WTO rules, but I guess that the WTO will live with that for a bit. Although I have never wanted a BMW, if I did want to buy one, it would be 10% cheaper if I imported it via Dublin and Belfast, which would be slightly odd. I cannot see that lasting on a permanent basis.
However, my point is that the Government are quite right to exempt the inner Irish border—it really matters. It therefore seems obvious that it should be easy for the Minister to accept Amendment 22, moved by the noble Lord, Lord Hain. The Government have already accepted it in another context, as he explained, and today’s announcements show that they would intend to apply it to the inner Irish border anyway.
The other night, in his reply to a question from the noble Lord, Lord Campbell of Pittenweem, the noble and learned Lord, Lord Keen of Elie, said:
“The whole point of the present withdrawal agreement and the Northern Ireland protocol is to ensure that we adhere not only to the terms but to the spirit of the Belfast agreement”.—[Official Report, 12/3/19; col. 978.]
I applaud that. The withdrawal agreement is dead, but we must uphold the spirit and letter of the Belfast agreement, whatever the future regime, and this amendment would permit us to do that. Since it seems to be in line with the Government’s actions and words—in today’s tariff announcements and last night’s speech by the noble and learned Lord, Lord Keen—I very much hope that the Minister will be able to accept the amendment.
Lord Eames (CB)
My Lords, speaking from a Northern Irish position, I urge the House as strongly as I can to support this amendment in the name of the noble Lord, Lord Hain.
As the debate over the entire Brexit situation has come and gone in the past few weeks, there has been growing concern across the business community in Northern Ireland about the hidden implications of what we are debating. They will affect every strand of the Northern Ireland business community, which is finding itself thrust on to the knife edge of Brexit.
The whole border question has obvious but also hidden implications. The noble Lord, Lord Hain, rightly referred to the Belfast agreement. While it is all too easy to raise the worry about an increase in violence and the breakdown of relationships—and to overplay that card—it is equally dangerous not to mention it. The subtlety of that situation is such that, with the words of this amendment, we are not only strengthening the spirit of the Belfast agreement but recognising that it is an integral part of the whole vista of trade.
Across the border counties, the links between the Republic of Ireland and the Province of Northern Ireland, there are numerous small businesses which are absolutely identifiable as Irish, in a sense. They are small and may not employ many people, but they are the absolute breath of the local community. Those businesses—as well as the major BMWs of this world, if the noble Lord, Lord Kerr, will forgive me—are not only the heartbeat of our community but are indicative of why Northern Ireland will probably be the greatest sufferer if what we fear in the light of yesterday’s events down the Corridor comes to pass.
So I urge noble Lords to take seriously the thinking behind this amendment. The noble Lord, Lord Hain, is ideally placed to speak about the situation from his years of experience in dealing with us in Northern Ireland and seeing something of what makes that community tick. While I am introducing an element that is not about detailed trade negotiations or principles, I believe that it is a genuine, real reason why this amendment must be passed.
Lord Bruce of Bennachie (LD)
My Lords, I rise briefly to support this amendment, to which I have put my name. Sadly, we have arrived at a point where a deeply divided Conservative Party has deeply divided the nation. The irony of that is that it is the Conservative and Unionist Party that currently presents the biggest threat to the integrity of the United Kingdom. Just over two weeks—15 days—before we are due to leave the European Union, the Government, if they do not take action or accept this amendment, present the greatest potential threat to the Good Friday agreement. This hard-won agreement was forged in the understanding that the UK was and would remain in the European Union, and that the UK and the European Union would be its joint guarantors. We are now moving into a new situation where it is unclear who the guarantors would be.
People talk about a deal, but there is no deal. There is an agreement, twice rejected, on how we leave the EU. The deal comes afterwards and has to be negotiated: we have not even begun to address that. Yesterday the Government published two guidance statements on trade and tariffs—one of them specifically for Northern Ireland. Yet this guidance acknowledges only what the UK Government can or will do. It cannot by definition legislate for any EU measures.
The Northern Ireland guidance states:
“Because these are unilateral measures, they only mitigate the impacts of exit that are within the UK government’s control. These measures do not set out the position in respect of tariffs or processes to be applied to goods moving from Northern Ireland to Ireland”.
So will the EU impose tariffs on agricultural products from the UK to Ireland or to the rest of the EU, just at the beginning of the lamb sales? Is that what we would be facing? And that is just one sector and one example.
That is why this new clause is needed. It is a clear and unequivocal statement that nothing can be done and nothing should be done that undermines in detail the terms of the Good Friday agreement. As long as the Government stand by their position, there is no agreement that conforms to this clause—because the House of Commons has rejected the agreement twice. So we are in danger of being in default. Parliament either has to accept the backstop, which was the means of securing acceptance—twice rejected by the House of Commons—or the Government have to abandon the red lines and seek more time to pursue a softer strategy built around the customs union. Better still, in my view—I guess my colleagues on these Benches will agree—we should suspend Article 50 and put the deal, which would have to come with a backstop, to a vote of the people, with the option to rescind Article 50 altogether, on the basis that there is no agreement that either commands a majority in Parliament or is consistent with the Good Friday agreement. Currently there is no such agreement on the table.
I commend this amendment to the House on the basis that adopting this new clause would give the House of Commons a building block for squaring the circle, which the Government and the House of Commons have so far utterly failed to do.
Baroness Altmann (Con)
My Lords, my name is also on this amendment and I echo every word of the excellent speeches from the noble Lords, Lord Hain, Lord Kerr of Kinlochard and Lord Bruce of Bennachie, and the noble and right reverend Lord, Lord Eames. We have an international obligation. We have signed the Belfast agreement—a long-standing, deep and binding international agreement—and somehow it seems to have been forgotten or overlooked in the frenzy of focus on some kind of “pure Brexit”, as it is called. The noble and right reverend Lord, Lord Eames, called this the “hidden element”. It has become frighteningly clear that the Brexiteers did not understand Brexit properly. They imposed impossible and inconsistent red lines which have left us in the position we are now.
While the economics imply that staying in the customs union and single market will protect frictionless borders and supply chains and our manufacturing industry and services, it makes us a rule taker, and forces us to have some connection with the ECJ. On the political side, this has led to the drive towards dropping the backstop, as if it was a problem we should not care about—actually, we should care about it deeply—or even considering no deal, which clearly leaves Northern Ireland high and dry.
Leaving the customs union and single market cannot support an open border. Nor can no deal, or Canada-plus-plus. It saddens me that so many of our colleagues on these Benches are willing to countenance playing fast and loose with the hard-won peace achieved in Northern Ireland, for the sake of some kind of trading advantage which may or may not occur. I appeal to my colleagues on the Front Bench, and to my fellow Peers on the Conservative and Democratic Unionist Party Benches alongside me, to accept this amendment. It has already been accepted as part of the withdrawal Act. Surely we cannot, and must not, abandon the frictionless border in Northern Ireland, or cut Northern Ireland off from the rest of the UK.
Lord Alderdice (LD)
My Lords, I want to address something in this amendment that is important, but which has not been picked up so far. In saying so, I support the amendment, which proposes to support the Good Friday agreement. People tend to think of that in terms of the structures within Northern Ireland and between north and south. However, a key part of the agreement was the arrangement of the British-Irish Intergovernmental Conference between the United Kingdom and the Republic of Ireland. For 10 years, it did not meet. The British and Irish Governments were in default of the Good Friday agreement for a decade. The European Union supported the Good Friday agreement, as did our friends in the United States.
In the context of the Good Friday agreement and addressing our difficulties, the suggestion that Ireland should be with the 27 countries which are negotiating with the UK, or having negotiations on their behalf, actually ignores the Good Friday agreement. If Britain and Ireland were not fulfilling it, the European Union should have been pushing the British and Irish Governments to come together to reach agreements that they could bring to Brussels together. There have been suggestions that this would be a breach of European Union understandings; it would not. However, not doing it is a breach of the Good Friday agreement.
If the British and Irish Governments have already agreed, or would agree over the next few months, on the main north-south economic and transport issues—agriculture, agri-food business and electricity—and agree that they would approach Brussels and request that these issues be dealt with on an all-Ireland basis, because they already largely are, it is highly likely that Brussels would accept that, whatever the other issues. It would not require a backstop; it would be a frontloading. The key thing is that the British and Irish Governments need to work together on this. That is what the last clause in the amendment says. In some ways, this ought to be the first clause, and the first stop, not a backstop: that the Governments come together and propose something.
People have repeatedly said that it is not appropriate for Ireland and the United Kingdom to negotiate together, because this is something between the UK and the EU as a whole. However, that simply does not work if people believe that they and the EU support the Good Friday agreement, which requires and mandates direct negotiations between London and Dublin on all joint issues. This has not been happening and I appeal to the Minister, as I appeal to Ministers in the Republic of Ireland, to come together on this issue. Ireland should be a bridge between the UK and the EU, not a bulwark for the EU against the UK.
Lord Purvis of Tweed (LD)
My Lords, it is a pleasure to follow my noble friend, who speaks with great authority on this issue. In following him, I will use one example to highlight the importance of this amendment in maintaining the spirit and including the contents of the agreement. I use the example of today’s announcements on the proposed tariffs that may be applied on a no-deal Brexit and the Written Ministerial Statement on how that will impact on the Northern Ireland border, already referred to by the noble Lord, Lord Kerr. I was grateful for an opportunity to have a conversation with the Minister about this today.
The proposals for the tariff regime, which would be an increase of 489 tariff lines on goods from the European Union and would have to have some form of mechanism across the border of Northern Ireland, need to be seen in the context of operating within a year. This is not simply an emergency or temporary proposal, and a year is a long time in the context of some of the statistics referred to by the noble Lord, Lord Hain. There were 46 million vehicle crossings at the 15 Northern Ireland border locations in the last year, according to the Northern Ireland statistics agency—3.8 million of those were goods vehicles, nearly three-quarters of deliveries involve small businesses, and two thirds of cross-border trade is bilateral agri-food and intermediate trade. That means these are small businesses—as already referred to, 80% are low-value—and often individual businesses trading on a self-employed basis, but every one of those people will have to be registered with an economic operator’s index number, or EORI. Only one-sixth of all businesses have so far registered, so the system, even as published today, is not operable, but new processes and procedures have to be carried out. The Government are giving no advice to Northern Ireland businesses on that. They believe a unilateral action, against the spirit of the Good Friday agreement and the spirit of an all-island economy, is the way forward.
How can it be a unilateral approach if tariffs will not be applied to goods coming from Ireland, but will subsequently be applied if those goods are part of intermediate trade with Great Britain? Liz Truss, the Chief Secretary to the Treasury, was asked at lunchtime where the checks would be carried out. She said that she believed it would be at “a border in the UK”. This is the Chief Secretary to the Treasury today. What does that mean? If one is tolerant, one may forgive her not knowing the terminology of Great Britain and the United Kingdom, but that is unforgivable, given that she said she will vote for a no-deal Brexit in the other place this evening. What kind of consultation is being carried out, not just with the Irish Government—which, as my noble friend indicated, is urgent—but with businesses on both sides of the border that will be operating?
Linked with the long-term basis is the fact that the unilateral approach is not WTO-compliant, unless the Government trigger one element in WTO processes on public morals. There are some dispensations that can be provided, in extremis, on the basis of public morals that can set aside a system where we will not apply tariffs from one country, if we have no intention of applying them to the rest of the world. It would be a retrograde step if the Government activated a public morals clause at the WTO on a situation as delicate as that on the Northern Ireland border. The Government are setting aside security and border integrity as the basis of the unilateral no-deal proposal. The Government should see sense and support this amendment, because it provides the framework for these consultations to be carried out.
Lord Stevenson of Balmacara (Lab)
My Lords, this has been a short but poignant and moving debate. We have reached back into history and tried to articulate fears and concerns.
Lord Mackay of Clashfern (Con)
If the noble Lord would allow me, I entirely agree with the difficulties associated with the border, and the need for a soft border, but I am not sure that this amendment achieves that. It would not directly affect the no-deal situation at all. It describes what I regard as a soft border; it is what I would like to see and what the Prime Minister’s deal, with the backstop and so on, is intended to do. But we are now dealing with a different situation. I would love to see a secure, soft border between Northern Ireland and Ireland, but I am not at all sure that the amendment secures that in any way whatever, although I would be glad to have help on that. It would not be as a result of an agreement between the European Union and the UK if there was no deal; no deal is the very opposite of an agreement between the EU and UK.
The other problem is that Ireland’s relationships with countries no longer in the EU would be regulated by the EU. I should be glad of some explanation from the people who know all about this of exactly how the amendment achieves the result I and they wish to achieve.
Lord Stevenson of Balmacara
My Lords, that is a well-made point. It is probably better if the mover of the amendment, my noble friend Lord Hain, responds to it in detail, but I think the wording is clear. Indeed, as my noble friend said, this takes us beyond the no-deal exit problem because it is for the future. It is meant to govern future arrangements across the border between the UK and Ireland. My noble friend might have more detail on it. I do not think the noble and learned Lord’s point destroys the arguments that have been made. I understand where he is coming from, but the issues we are talking about are for all time. They are important to build on our history and practice up to this point.
The noble and right reverend Lord, Lord Eames, spoke very powerfully, getting across the idea that if there is an opportunity for this House and, indeed, any other place to strengthen the spirit of the Belfast agreement, it should be supported. This is an opportunity to do so. He said that it was about not just the history, but the future of those who work and operate in Northern Ireland and Ireland, and about trade and opportunities. The combination of peace and prosperity, which, after all, is what we all seek at all times, surely is not something the Conservative and Unionist Government will really whip their members to vote against. I hope the Government will be able to accept the amendment and allow us to move forward.
The Minister of State, Department for International Development (Lord Bates) (Con)
My Lords, I add my thanks to all noble Lords who have contributed to this short but very profound debate. In particular I thank the noble Lord, Lord Hain, for moving the amendment. I think the whole House recognises the important role he played while Secretary of State to help that process gather ground into fruition. It has been a proud part of successive Governments that we cherish and nurture that hard-won peace. It is why we said right at the outset in the future relationship White Paper that the prime objective would be that,
“the UK and the EU meet their commitments to Northern Ireland and Ireland through the overall future relationship: preserving the constitutional and economic integrity of the UK; honouring the letter and the spirit of the Belfast (‘Good Friday’) Agreement; and ensuring that the operational legal text the UK will agree with the EU on the ‘backstop’ solution as part of the Withdrawal Agreement will not have to be used”.
That was very much at the heart of our objective. We are absolutely committed to the Good Friday agreement and that part of it.
I do not take the point the noble Lord, Lord Bruce, made about division out of context, but I am sure he would recognise that the whole thrust of the Government’s and the Prime Minister’s negotiations, and what the withdrawal agreement is about, is seeking to secure the type of border arrangements that my noble and learned friend Lord Mackay referred to and that the noble Lords, Lord Hain and Lord Alderdice, and the noble and right reverend Lord, Lord Eames, and others seek to work towards. Peace on the island of Ireland between Northern Ireland and the Republic of Ireland, and the Good Friday agreement—the partnership between the United Kingdom and the Republic of Ireland in this context—surely must be the red line above all red lines that we need to preserve.
That is why there is the amendment in the EU withdrawal Act making that explicit, which the noble Lord, Lord Kerr, was instrumental in securing. That has been a key part of what Her Majesty’s Government have done when engaging in negotiations on these matters, which was brought to fruition in the withdrawal agreement. Were the withdrawal agreement passed yesterday in another place, we would not need this amendment or this discussion. These are matters for the extremely unwelcome event of no deal.
Some specific points have been raised, which I will try to address. I hope that will help noble Lords in deciding what to do with this amendment. The noble Lord, Lord Purvis, said that this has been emerging over 12 months—an increase of 480 in the current position with the EU. The Government have had to find a way of ensuring that there is no border, from the UK perspective, in the spirit of the Good Friday agreement. Any checks that must be carried out for non-revenue purposes will be done away from the border. HMRC is very familiar with carrying out such checks on that basis.
My noble friend Lady Altmann asked how the plan works to supply work with suppliers. These are unilateral measures—they are not for goods moving from Northern Ireland to the Republic of Ireland, which would be subject to the EU’s common external tariff and single market rules. The only way to avoid a hard border is to commit to entering into discussions with the European Commission jointly to agree long-term measures to avoid one.
The noble Lord, Lord Purvis, asked whether there will be a border in the UK. The Government do not intend to construct infrastructure at the Northern Ireland land border. We will also not carry out any new checks on goods moving from Northern Ireland to Great Britain. HMRC will assess the risks and take a risk-based approach to investigating allegations of breaches of those rules. The noble Lord also asked about the status in terms of the WTO—whether it breaches the MFN model. We are confident that the policy is in line with our WTO obligations, taking into account the unique set of social, political and economic circumstances of Northern Ireland. In developing our policy alongside WTO rules, we have also had to take into consideration a broader set of our international obligations, including those under the Good Friday agreement. Furthermore, as we have set out, these arrangements are strictly temporary. The noble Lord, Lord Kerr, asked us the meaning of “temporary” in this respect; it is a period up to 12 months.
I will come to the point raised by my noble and learned friend Lord Mackay, because it is material to what we have been discussing today. He made the important observation that the amendment as worded seeks an agreement between the UK and the Government of Ireland. Of course, because the Irish border is, as he rightly said, a border between the United Kingdom and the European Union, it would need an agreement with the EU. I think that is the point my noble and learned friend was making. In that context, the way in which the amendment is currently worded would be unlawful because it refers to the Government of Ireland as opposed to the EU.
The noble Lord, Lord Hain, said that this amendment does not put the Government in a straitjacket. It would seek to limit flexibility—no “facilitations”, for example, would rule out future technologies, which is something the EU has specifically agree to look at as a priority once the withdrawal agreement has been agreed. In terms of EU imports into Northern Ireland, not across the land border, the answer to the question of whether tariffs apply is yes. The waiver applies only to goods moving from Ireland to Northern Ireland. This is a temporary measure that would need to be implemented.
The noble Lord, Lord Kerr, asked about potential arbitraging in terms of pricing. Many things affect the price of cars, in terms of tax and currencies, and an individual car from Dublin, driven across to Belfast, would be exempt from the 10% tariff. It would not necessarily be cheaper, but these measures would be temporary. Surely this breaks most favoured nations status, which I have addressed.
I hope that noble Lords will feel that I have addressed a number of the points that were raised. I thank all noble Lords for raising these matters and assure them once again that this has been absolutely up front and central, at the heart of the Government’s strategy to preserve that hard-won peace and that special relationship. This is something that needs to be there only in the event of no deal, which we are all working tirelessly to avoid. I invite the noble Lord to address the point on the wording regarding the Government of Ireland and the European Union, which, on our reading, means that if the amendment were passed, it would be unlawful. If he could address that specifically, I am sure that it would be helpful to all noble Lords.
Lord Puttnam (Lab)
I thank the Minister for giving way. I have been waiting for a voice to appear during this debate—and it has not. That is the voice of the people of the Republic of Ireland. I live there and would like to get across to your Lordships the incalculable level of anxiety that has been caused to the people of the Republic of Ireland by our apparent indifference about what happens, for example, in the event of no deal. I cannot stress that enough. When noble Lords decide how they wish to vote—I am sure that it will go to a vote—I beg them to consider my neighbours, in particular, as the noble and right reverend Lord, Lord Eames, mentioned, small farmers on both sides of the border who are terrified about what will happen should we, by some ridiculous accident, crash out. I beg the Minister to try to add the voice of the people of the Republic of Ireland to this debate, because they do have a voice in this.
Lord Bates
I recognise that and know that the noble Lord is passionate about the Republic of Ireland—as he said, he resides there. There is a fundamental point here: that anxiety would not be necessary if the withdrawal agreement, which was agreed in December, had been passed in the other place last night. That must be the best solution to remove the anxiety to which the noble Lord refers. He also alludes to a very important piece of work, which needs to start immediately—namely, rebuilding those friendships and links, and that partnership, which have served us so well in recent decades, to ensure that the progress that has been made has not been lost. That needs to start immediately. As I say, I take on board very much the point that he has raised.
Lord Hain
I thank my noble friend Lord Puttnam for the point he made. I have lots of friends on the island of Ireland, on both sides. I know that there is a real feeling of hurt among citizens of the Republic, given our tangled history—our colonial history, going back centuries—which created enormous distrust and suspicion from Dublin towards us. It was overcome by building trust almost day by day, week by week, over the last 20 years, by Governments of all colours—in particular, those led by John Major, Tony Blair and Gordon Brown, and subsequently. That sense of pain is very deep.
I thank the noble Lord, Lord Bates, for his generosity towards me. What I feel very strongly goes to the point made by the noble and learned Lord, Lord Mackay of Clashfern, whose interventions are always interesting and intellectually testing; I often agree with them. The point is this: we have no idea what sort of future awaits us. We do not know whether we will have an agreement with the European Union at all. There are vociferous voices, some in this House but particularly in the House of Commons, that do not want a deal with the European Union. Therefore the terms of the amendment are absolutely right. The default position that we can fall back on is that we need at least to agree with the Irish Republic in the terms of the Belfast/Good Friday agreement how the border issue is to be managed. I do not see that that is the obstacle in the terms of the amendment that the noble and learned Lord and the Minister have suggested.
Lord Brown of Eaton-under-Heywood (CB)
I am grateful to the noble Lord for giving way, not least because I confess that I am almost certainly behind the curve here and may well be about to ask a very inept question. But this amendment is directed solely to an international trade agreement between the UK and the European Union. In the event of a no-deal exit, I am unclear whether any future trade agreements that are going to be reached will be with the European Union as opposed to, for example, individual EU countries such as Germany and France. If that were to be the position—I may well be barking up a most irrelevant tree—and there were a future agreement with Germany, as I understand it, the proposed clause would not bite. Is that right?
Lord Kerr of Kinlochard
It could be that the Germans are planning to leave the European Union, but while they remain their external trade will be conducted by the European Union.
Lord Mackay of Clashfern
I would love to vote for this amendment if I thought it would achieve what the noble Lord, the Irish people and indeed all of us want. Unfortunately, it outlaws agreements between the UK and the European Union only in the circumstances narrated. My belief is that if this happens, it will not be as a result of any agreement between the EU and the UK but because there is no agreement between the EU and the UK. This is possibly my blindness, but I do not see how this goes anywhere towards preventing the evil that all of us—I cannot speak for anyone but myself, strictly speaking, but certainly most of us, judging from what I have heard—want to avoid. We want a soft border whatever happens between Northern Ireland and the Republic. I am sure that people in the Republic want that and the Northern Irish people want that—and certainly I and all who love them want that.
Lord Hain
Perhaps I may say to the noble and learned Lord that, while we may all want it—in fact, we all say we do—unless we will the means we cannot actually ensure and guarantee it. That is what the amendment does in respect of future trade agreements. The same wording was accepted by this House and by the Government in the other place, and has become part of the withdrawal Act—but that is part of, if you like, the divorce settlement. What we need to do is ensure that the same principles apply to our future trading relationship.
The Earl of Courtown (Con)
My Lords, with apologies to the House, we are on Report and we should get on with it.
Lord Hain
Perhaps I may conclude with something that might help the noble and learned Lord, Lord Mackay. It is what this amendment does not say that is important. This amendment does not tie the Government’s hands, except in terms of the exact requirements for the future, because that is not appropriate in a clause of this kind, which I hope will be accepted and put into the Act. It spells out for new trade the principles that the Government have already accepted in the withdrawal agreement. So it is already in statute, and I am therefore puzzled as to why the Government are not accepting this agreement by approbation.
Lord Bates
My Lords, it may be helpful to the House if I explain our hesitation on precisely that point. Section 10(2)(b) of the EU withdrawal Act prohibits regulations creating new border arrangements —that is, arrangements that did not exist before exit day—unless they are in accordance with agreements between the UK and the EU. This amendment would prevent any arrangements unless they were subject to an agreement between the UK and the Government of Ireland. Such an agreement, in our view, would be unlawful for Ireland to enter into, as customs and a common commercial policy fall within the exclusive competence of the EU. I want that point to be clear on the record.
Lord Hain
I understand that point. However, under the Good Friday agreement—the Belfast agreement—we are bound and obligated, including with the approval by treaty of the European Union, as the noble Lord, Lord Purvis, said, to agree things with Dublin. That is the way it works. That is part of the Good Friday agreement that has the blessing of the European Union.
I repeat that we have no idea as yet of our future trading relationships with anybody, including across the Irish border—no idea at all. This amendment spells out the principles that have already been accepted in the withdrawal Act, and agreed in statute by the Government. I therefore wish to test the opinion of the House.
Lord Purvis of Tweed
“Publication of trade agreement progress register
(1) For the purposes of subsection (2)—(a) the first reporting period begins with the passing of this Act and ends one week afterwards;(b) each subsequent reporting period is—(i) the week beginning with the end of the previous reporting period, or(ii) if the condition in subsection (4) is met, the month beginning with the end of the previous reporting period.(c) the last reporting period is—(i) the reporting period in which exit day falls, or(ii) if the condition in subsection (4) is met, the reporting period in which any transition period provided for in the negotiated withdrawal agreement expires.(2) Before the end of each reporting period, a Minister of the Crown must publish a report relating to the continuing application of EU trade agreements after exit day.(3) A report under subsection (2) must—(a) specify the trade agreements the United Kingdom is party to as a member of the European Union (the “existing agreements”),(b) for each of the existing agreements, specify whether the United Kingdom intends to sign an agreement that replicates the effects of the existing agreement (the “continuity agreements”),(c) for each of the continuity agreements, specify—(i) whether the agreement has been signed, and(ii) if the agreement has not been signed, what progress has been made towards signing the agreement, and(d) for each of the continuity agreements that has not been signed, specify—(i) the likelihood, in the Minister’s opinion, that the agreement will be signed before exit day, or(ii) if the condition in subsection (4) is met, the likelihood, in the Minister’s opinion, that the agreement will be signed before the end of any transition period provided for in the negotiated withdrawal agreement.(4) For the purposes of subsections (1)(b)(ii), (1)(c)(ii) and (3)(d)(ii) the condition is if the United Kingdom has signed a negotiated withdrawal agreement with the European Union.(5) In this section, “negotiated withdrawal agreement” has the same meaning as in section 13(16) of the European Union (Withdrawal) Act 2018.”
Lord Purvis of Tweed
My Lords, this feels like an intermission between two parts of the main feature this afternoon, so I shall be brief. The amendment is even more important given the vote in the Commons last night and the votes likely to come up in the other place. It would provide for a duty on the Government to update the information that they published on 21 February.
I signed up to a weekly trade newsletter from the European Commission at the start of this Bill’s consideration. It includes a weekly digest of the latest news on EU trade, new trade negotiating texts, reports and studies about ongoing discussions, upcoming events and consultations and the EU Trade Commissioner’s statements on related topics. That is the type of information available through the Commission that should be the benchmark by which our Government provides information, not only to Parliament but to civic society and interested groups across the country. But unfortunately, it is in stark contrast with the kind of information that the UK Government publish to date. It is appropriate that we have information on the status of discussions and highlight areas where there are justifiable public differences in approach or policy between our Government and other Governments.
The amendment is not asking for commercially sensitive information or for information that would diminish the ability of negotiators to carry out a set mandate or agreed policy objectives. It is necessary for continuity in the areas that we are discussing.
Also, as we discussed in the previous debate, if there is no deal, we have unilaterally decided to engage in a different trading relationship with countries we currently have arrangements with, and possibly add new tariff lines on goods that are not in place in the current FTAs. The Government seem to think that it is rational to discuss continuity agreements with other countries if there is no deal, apply a new tariff regime with nearly 500 extra tariff lines to businesses trading from those countries and roll over agreements, thereby reinstating the zero tariffs we currently enjoy with those countries by virtue of our membership of the European Union. It is a bizarre approach that the Government think will be beneficial, but it stretches credulity.
At the start of proceedings on the Bill, the Government said that the whole process of moving over agreements would be easy. The noble Lord, Lord Price, the Minister’s predecessor, said that all countries had agreed to roll over agreements but, in fact, they had not. Ministers said repeatedly that all the agreements would be in place by 29 March but many of us knew that that would not happen. The Government denied that there was a problem when it was apparent to everyone that there was, and we knew that those agreements were not going to happen for a number of reasons. Only after frustrated officials leaked information did the Government demur and publish a one-off statement admitting a degree of reality. That is not sufficient and we need to move away from that approach.
The amendment addresses a way forward. It would lead to more information on the trading relationships with the countries we have an agreement with through the EU, but will end if we crash out. The amendment calls for a weekly update before we leave the EU—if we leave—and a monthly update that will form the basis of reporting until the texts of the agreements are shared with Parliament. Unless we have a consistent mechanism, we will have a bizarre situation involving two reporting systems from the Government: one on the progress on continuity agreements and the other on successor or new agreements.
For example, the Government intended to have a continuity agreement with Japan but no reporting undertakings. However, the Japanese have now said they want a successor agreement, which would be covered by undertakings in the Command Paper. But the underlying policy intent has not changed and there will be nothing to stop discussions with a country such as Canada on a continuity agreement then becoming a successor agreement—and there will be two parallel systems of reporting. That is not helpful for clarity or transparency.
Finally, we heard clearly last week from the noble Lord, Lord Kerr, and others who have been at the highest level of negotiations on behalf of the UK, that greater transparency and the involvement of Parliament in approving mandates actively strengthen the UK’s position, not weaken it. In order for Parliament to do its job correctly and engage with civil society groups and those with an interest in trade, or who will be impacted by decisions made in the negotiations, we need a high level of information on progress, rather than simply a descriptor such as “engagement ongoing”, as referred to on 21 February.
That is why I hope that the Government will look favourably on the amendment and, if they cannot accept it, at least establish some principles whereby reporting mechanisms can be more up to date, regular and meaningful than a one-off publication on 21 February. I beg to move.
Lord McNicol of West Kilbride (Lab)
My Lords, the noble Lord, Lord Purvis, has outlined the reasoning for and detail of the amendment. I intend, therefore, to be brief as we have a number of amendments of greater importance.
It is a shame that the Government will not accept the amendment or work with noble Lords on this side of the House to bring more detail and clarity to the reporting mechanism and progress analysis on rollover agreements. Suffice it to say, Her Majesty’s Government are woefully behind on negotiating, securing and signing agreements that will need to be rolled over. Only a handful of deals are close to completion. Ministers have admitted that they are struggling to make progress with the other trade agreements that Liam Fox has a number of times promised would be ready for the day after Brexit.
The Minister of State, Department for International Trade (Baroness Fairhead) (Con)
My Lords, I thank the noble Lord, Lord Purvis of Tweed, for moving Amendment 23, and the noble Lord, Lord McNicol of West Kilbride, for building on it. The Government agree with the spirit of the amendment that providing updates on negotiations is necessary. It is fundamental to our approach that Parliament remains informed. It is something the Government have always sought to do and we will continue to do so.
Your Lordships will recall that, following concerns raised in Committee in this House, the Government published a paper on 28 February providing comprehensive proposals for the scrutiny of future free trade agreements. Many of your Lordships will also recall the debate last week on future trade agreements. The noble Lords, Lord Purvis of Tweed, Lord Stevenson of Balmacara and Lord Hannay of Chiswick, tabled amendments which facilitated a full debate on the scrutiny of future free trade agreements. In that debate, I again confirmed that, for future free trade agreements the Government will publish their outline approach to negotiations, including objectives, and that that would be accompanied by detailed economic analysis. The EU reports to which the noble Lord, Lord Purvis, referred are on future EU agreements.
We have committed to publishing progress reports after each negotiating round and annual trade reports across all live trade negotiations. In terms of Parliament’s role in this, I confirmed that in future free trade agreements the Government will work closely with a committee of both Houses or a committee in each House, and will provide information on a confidential basis to ensure that Parliament can scrutinise negotiations effectively from start to finish and throughout.
In relation to our trade continuity programme—the agreements that are the subject of this amendment—noble Lords will be aware that the Government published a Written Ministerial Statement on 21 February 2019. It provided an update to Parliament on the status of the continuity agreements. I hope it clarified a number of the points that the noble Lord, Lord McNicol, raised. I also trust that the noble Lord, Lord Purvis, will welcome the approach the Government are taking of informing Parliament each and every time a continuity agreement is signed. There have been seven free trade agreements so far and we will continue to take that approach.
These agreements have been accompanied by a signed or initialled report outlining the material changes between this agreement and the existing EU/third country agreement. These reports provide important transparency and inform not just Parliament but businesses and consumers. We will discuss three of the agreements and the reports later today. However, some of your Lordships may not be aware of what the Government have done above that over the past six months to keep Parliament informed more generally. For example, we have provided five oral evidence sessions to Select Committees by Ministers or senior officials, given 10 written updates to the International Trade Select Committee or the European Scrutiny Committee on trade agreement continuity, and answered seven Oral Questions and 53 Written Parliamentary Questions. I hope that those elements are further tangible proof of the Government’s commitment to keeping Parliament informed. However, while the Government agree with the intention of the amendment moved by the noble Lord, Lord Purvis, I am concerned that having this obligation in statute could have unintended consequences in making it more difficult to keep Parliament informed.
The noble Lord, Lord McNicol, asked what the issues were. They are the kinds of obligations that might arise while we are in the middle of negotiations with our partner countries. For example, if we were to say that an agreement discussion was progressing well and that all the key issues had been addressed, that might cause a negotiating issue on the other side. Equally, if we said we thought that it was performing poorly or that there were issues, that might expose issues that our partner countries were ill prepared to address. If negotiations were going badly, a public statement to that effect would likely prejudice them further, resulting, we believe, in a worse outcome for the UK. Our approach is to provide Parliament with as much information as we can, consistent with managing those risks. It genuinely is about getting the balance right between openness and transparency with Parliament and managing often delicate international negotiations.
I trust that the noble Lord, Lord Purvis, takes reassurance from this explanation and, most importantly, from our continued commitment to ensure that Parliament is kept up to date on the trade agreement continuity programme. I therefore respectfully ask the noble Lord to withdraw his amendment.
Lord Purvis of Tweed
I am grateful for the Minister’s response, and for the support of the noble Lord, Lord McNicol. He highlighted that we are likely to have seen only 13% of UK exports represented in the agreements that we have, so there is quite a long way to go. The issue then is whether a one-off published statement would be sufficient. However, I take on board what the Minister said about the other areas, on which there is ongoing engagement with Parliament; that is to be welcomed. I also welcome that in the Command Paper the Government have committed to publish material and to have an ongoing dialogue, both in public and in private, with committees that could well be established. I hope very much that the dialogue will also involve discussions about what type of information is appropriate to be released into the public domain and about doing so in a timely fashion.
On the basis of the Minister’s comments and on the understanding that, if we are to be secure in the information that I think we need on the continuity agreements, we will continue to be persistent on the Written Questions and on the opportunities in Parliament, I beg leave to withdraw the amendment.
“Trade agreement with the EU: mobility framework
It shall be the objective of the Secretary of State to take all necessary steps to secure an international trade agreement with the European Union which includes a mobility framework that enables all UK and EU citizens to exercise the same reciprocal rights to work, live and study for the purpose of the provision of trade in goods or services.”
Lord Fox (LD)
My Lords, on Report your Lordships have already voted through an amendment that creates a process for Parliament’s involvement in setting a mandate for future trade deals and for helping to approve a final deal. Separately, your Lordships have made clear a strong preference for the UK remaining in a customs union. In part, this amendment is the third part of that and is intended to set the scene for the long-term future relationship between this country and the EU. I am grateful to the noble Baroness, Lady Bull, and the noble Earl, Lord Clancarty, for their support for this amendment.
The amendment sets out an objective for a future EU trade deal: a mandate to include,
“a mobility framework that enables all UK and EU citizens to exercise the same reciprocal rights to work, live and study for the provision of trade in goods or services”.
That reciprocal nature recognises one important fact: not allowing or enabling EU 27 people to work and trade in the United Kingdom will mean no such rights for UK people in the EU. By voting for this amendment, your Lordships would create the best possible chance for talented men and women in the UK to work, and continue to work, and offer their services within the EU 27, and of course it would be a win-win scenario. On the other side of such an arrangement, we would continue to welcome into this country people who contribute positively to our economy and our social fabric. Their skills make a positive difference.
In Committee, I outlined at some length, and according to the Government’s own advisers, the positive role that people from the other 27 EU countries play in this economy. Noble Lords will be relieved to know that I will not replay those arguments today, in part because in no measure were those facts challenged during that debate. There has been a net benefit to the UK from the activities of EU 27 citizens here. My speech also acknowledged that issues were thrown up by migration in some communities and that those issues have not been sufficiently recognised and dealt with by successive UK Governments. The benefits of those EU citizens working in the UK have also been insufficiently recognised publicly by successive Governments.
In Committee, the Opposition Front Bench spokesman, the noble Lord, Lord Stevenson, spoke about the appearance rather than the reality of unbridled immigration, and that refers back to the point that I have just made. Although I recognise that this perception is very important and that Governments have to do something about it, I do not believe that we should be put off from doing the right thing and supporting the amendment. I hope that, by doing so, we will demonstrate the value that we place on mutual agreement and on the mutual opportunities that we can create for our people, our businesses and our communities.
As for the Government, I did not notice a great warming to my argument in Committee, although I always foster hopes. However, I appeal over the heads of the Front Bench to your Lordships to see the value in this amendment. Supporting it would be a major step towards setting out the mandate for UK negotiators. It would signal what sort of country we want to live in and it would reject one of Mrs May’s red lines. Opposing the amendment or sitting on one’s hands would pander to the false picture of the role of immigration in our society and would impair the UK in so many ways, not least in trade. I beg to move.
Baroness Bull (CB)
My Lords, I have added my name to this amendment because I believe that it is vital to preserve mobility rights and, in doing so, protect some of the UK’s most productive sectors.
I have noted before the relative silence on trade in services in the Brexit conversation. Attention has been focused on the at-the-border issues associated with trade, rather than the more complex behind-the-border issues of domestic rules, regulations and qualifications, which are germane to trade in services. As I have said before, this silence is particularly hard to understand, given services’ contribution to the UK. They account for over 40% of total exports, 80% of the UK’s GDP and four in five jobs across the country. The largest single destination for UK services is the EU, worth £90 billion annually.
If services have been treated like the second son, mobility has been the Cinderella of the story, pushed from the start to the wrong side of what some of us see as a wrong-headed red line. There is, of course, an inextricable link between mobility and services. Services provided in this country, such as tourism or higher education, depend on inward mobility. Service packages linked to goods, such as maintenance contracts, depend on outward mobility. Services delivered in the consumer’s country are often provided on a fly-in, fly-out basis, and the scale of this trade is significant. The CBI reports that employees of just one firm undertook 17,000 trips from the UK to the EU and 10,000 in the opposite direction in a single year.
The Earl of Clancarty (CB)
My Lords, I have put my name to this important amendment and I will speak briefly about services in relation to free movement.
The recent no-deal impact statement says that free movement of people supports services. It would be more correct to say that free movement is intrinsic to services. This is certainly true of the creative industries but also of many other areas of the services sector. As a British IT worker said, “We freelancers export ourselves”. As the noble Lord, Lord Fox, said in Committee, “Trade is people”. Yet, despite their massive importance—the noble Baroness has given us the figures—the services sector is, as Sir Ivan Rogers said at the University of Liverpool in December,
“the dog that has largely failed to bark”—
an observation that the noble Lord, Lord Stevenson, also made in Committee. And services continue not to bark. This is deeply worrying.
Of course, Brexit has not yet happened and may still not do so. But it is happening now for British workers who provide services in Europe. One is tempted to call them the canaries in the mine—except we are talking about the endangering of people’s livelihoods. More reports are coming in of projects put on hold and of individual freelancers being told not to bother applying for a job unless they have a European passport, irrespective of the level of qualifications they possess. It is becoming a precondition. For many European companies it will make no difference what kind of Brexit we end up with if it is a Brexit without free movement.
I urge the Minister to look at a video blog doing the rounds on social media. It was recorded in English by an IT agency based in Rotterdam and makes it clear that neither the agency nor their clients can work with you if you are not in Europe—“Europe” of course meaning the single market. The impact statement says that the effects on services will be mitigated by a reciprocal mobility framework. However, in reality, the mobility of British workers abroad will be restricted by the severity of the immigration policy outlined in the White Paper and coming our way in the Immigration Bill—a policy which completely ignores the effect it will have on our service industries and on British workers in Europe. Sir Ivan Rogers said:
“UK service industries’ needs have been sacrificed to the primary goal of ending free movement”.
The amendment also refers to study. Unless we have free movement, I am pessimistic about our membership of Erasmus+ beyond 2020. Look at what happened to Switzerland, which was thrown out of Erasmus when a referendum voted against free movement. After a new agreement, I believe that Switzerland is now back.
There are many important reasons for supporting this amendment. From the point of view of trade, it should be supported not just to protect our valuable trade in services and the increasingly important servitisation aspect of manufacturing, but, importantly, to protect British workers and British jobs.
Lord Hodgson of Astley Abbotts (Con)
My Lords, I have not participated on this subject before, but I listened to the persuasive explanation by the noble Lord, Lord Fox. I note the phrase “mobility framework”, which sounds incredibly friendly. But I will urge my noble friend to reject this amendment. This is not because I want to build a wall or because I think perceptions of immigration have been wholly erroneous—although he quite rightly drew the House’s attention to that. The noble Baroness, Lady Bull, said that we need to talk about facts. I will share a couple of facts, which will take only a minute. The population of the United Kingdom is going up by 1,200 a day: that is, 400 from natural increase, 600 from immigration from outside the EU and 200 from immigration within the EU. So we are putting a small town or large village on the map of the UK every week. The ONS projections are that the country’s population will go up by 7 million to 9 million between now and 2040. Manchester currently has 2.5 million people living in it—so we will have to find homes for three cities the size of Manchester.
The UK will by that stage have overtaken Germany as the most populous country in Europe and England will have overtaken the Netherlands as the most densely populated. That is against the background of a new industrial revolution that it is believed will cause 7.5 million jobs to be either lost or radically altered. I quite understand the wishes of the noble Lord, Lord Fox, and the other movers of the amendment, but this had to be looked at in the round of our demographic future. It is not about whether you arrived here recently, or about your colour, your race or your creed. It is about what will enable our society to operate cohesively and well as we see that scale of arrivals, and that scale of change to the way we live and work.
Lord Bilimoria (CB)
I am sorry to interrupt the noble Lord. How can his argument work when, at the moment, we have unemployment at almost 4% and we need the 3.5 million people from the European Union who are over here now? Given an immigration White Paper that says a minimum salary has to be £30,000, and the remarks of the noble Baroness, Lady Bull, and the noble Earl, Lord Clancarty, how will we manage with a slow-growing economy of just over 1% per year, let alone if it should grow faster? We will have an acute labour shortage.
Lord Hodgson of Astley Abbotts
I think the noble Lord is completely wrong. I have explained that it looks as though we will lose 7.5 million jobs because of the fourth industrial revolution; that is the first thing. Secondly, there is drastic underemployment among people aged over 50 who, when they try to get a job, cannot do so. It is seen that they have only a few years left to work and so are not reliable; youth is what people look for. There are plenty of available older people, but jobs will disappear. That is why I could not support this amendment unless we had done a lot more work on what the mobility framework advocated by the noble Lord, Lord Fox, really meant.
Lord Berkeley of Knighton (CB)
My Lords, I will depart for a moment from the beauty of facts to perhaps more abstract philosophy. We have heard about the movement of people with respect to the creative industries; there is an important point to make here. I look back over a career that has taken me from being a chorister at the Royal Academy of Music to working at the BBC and the Royal Opera House, working with orchestras, dancers and singers. In each of those cases a very important contribution was made by the movement of people.
I believe that one of the most important aspects of intellect and civilisation—I am sure many Ministers on the Front Bench would aspire to these things—is curiosity. To experience the best aspects of curiosity, you need freedom of movement, freedom of ideas and the freedom to travel. I am privileged in the way my life has been staggeringly enriched by the movement of people, whether it is my ability to go to a concert in Vienna next month where my music will be played, and another in Budapest, or people coming here to perform. These are people from whom I have learned so much, people such as György Ligeti or Witold Lutosławski, with whom I studied. This movement of ideas and curiosity is vital to the intellectual and cultural health of our nation.
Lord Puttnam
My Lords, I had no intention of entering this debate other than to support the amendment. However, I must make a point to the noble Lord, Lord Hodgson, because he raised it. What we heard from him is all too familiar. When my mother’s family came to this country 120 years ago as Jewish immigrants from Russia, exactly the same charges were being made about a flood of Jewish immigrants arriving in this country and, potentially, destabilising it and making it a more difficult place to live. Does any noble Lord in this House think that that generation of Jewish immigrants did anything other than contribute massively to the wealth and prosperity of this country? This absurd argument is trotted out every 100 years—mostly from his Benches, I am afraid—yet it is always fallacious and, frankly, very upsetting and quite disturbing.
Lord Stevenson of Balmacara
My Lords, at the heart of this amendment is a concern that the necessary steps are taken to support trade involving the use of services, which increasingly spreads across not just performance, art or culture but work in making cars, machinery and so on, of which it is an integral part. The expertise and knowledge that goes with that involves people and we need to accompany the work they are doing in a way which allows it to function properly. If they are prevented from moving, we as a society will suffer. In addition to the well-made points from the Cross Benches on the artistic and cultural level, at a purely practical level, we need arrangements for the new technologies which the noble Lord, Lord Hodgson, referred to, which will be unable to work if we do not have the services to make them do so. I wish him well with his iPad when it collapses and he cannot get the people to service it because they are unable to travel.
More seriously, the fourth pillar of the GATT treaty, of which we are a member through the EU, and would be a member if we come out of the EU, requires countries such as the UK—it we were independent—to make sure that services are delivered in ways which include the ability to provide rights for working, living and studying. Although studying does not necessarily seem to apply to the right to work and live, it is a very important aspect for us in Britain because one of our biggest export earners is our educational services. If we prevent people travelling to provide the facilities which allow studying and the ability to pass on knowledge—as we would be, if we do not have a proper arrangement for that—we will suffer enormously as a result.
Last night, I was at a meeting involving universities, organised by the Industry and Parliament Trust. There was a palpable concern felt by all the academics present about: the inability to engage with Erasmus and Erasmus+; the possibility that the Horizon 2020 funds will not be available; the lack of technical support for research activity, because the salary level grades were too high; and the inability to attract good postgraduate students to provide the intermediate work in research teams, and to teach. They felt that this was going to mean considerable changes in our university systems. This is the implication if we do not have a mobility framework of the type described in this amendment, which I support.
Lord Bates
My Lords, I thank the noble Lord, Lord Fox, for moving this amendment. Before I respond, I should declare an interest, in that my wife came to this country from outside the EU and has contributed over the last 30 years by building a business, and in other ways. Therefore, I have no problem with recognising, as I was invited to do, the tremendous contributions to this country made by people who come to make this place their home. In the same spirit, I recognise the contribution that our European friends have made to this country, in many of the areas referenced already.
Lord Fox
My Lords, I congratulate those Peers who have taken part in the debate. The noble Baroness, Lady Bull, the noble Earl, Lord Clancarty, and the noble Lords, Lord Berkeley and Lord Puttnam, all forcefully put the moral as well as economic case behind the amendment. I thank the noble Lord, Lord Hodgson, for mentioning the industrial revolution. If we are to build a significant place in that industry in the world, as the Government’s industrial strategy seeks to achieve, it will not be by closing the borders and stopping people coming in to give us the value of their services, their knowledge and their ability to build it. This will be a global exercise. If we want to lead in it, we have to fling open our doors and let those people into this country.
The Minister of course put a persuasive case on the proposed regime. In essence, we are taking the regime that has been applied to non-EU migrants and putting it on to EU migrants. I have worked in companies that have sought to bring people into this country to do important jobs, and I have to tell the Minister that it is an extremely difficult process. Making it harder for our closest allies and biggest market to bring people in is not the solution to this problem.
The Minister is right to say that there might be other opportunities to put this point, but I am someone who likes to seize the day. I beg to seek the opinion of the House.
“UK participation in EU and EEA organisations
(1) The Secretary of State must seek to negotiate an international trade agreement with the EU which will enable the United Kingdom to continue, after exit day, to co-operate closely with the bodies listed in subsection (2).(2) The bodies are—(a) the European Medicines Agency;(b) the European Chemicals Agency;(c) the European Aviation Safety Agency;(d) the European Maritime Safety Agency;(e) the European Network of Transmission System Operators;(f) the European Food Safety Authority;(g) the European Union Intellectual Property Office.”
Lord Stevenson of Balmacara
My Lords, those with keen eyesight will have noticed that this is an amended version of an earlier amendment which was tabled in Committee. It reflects the fact that we have been in discussions with the Government on how best to frame an important issue, which is that a duty and obligation should be placed on the Secretary of State in this case and on the Government more generally to ensure that, if we are in a situation where we are negotiating international trade agreements with the EU—in other words, we are not in a no-deal, crash-out situation—the United Kingdom should try to co-operate as closely as possible with the bodies set out in the list.
In moving Amendment 24A, I draw the attention of noble Lords to Amendment 25A which I regard as consequential since it seeks to remove the clause that Amendment 24A is intended to replace.
We can trace the thinking about this back to an amendment moved in the other place at the time the Bill was being considered on Report in the Commons. That amendment inserted into the Bill a requirement that the Secretary of State or an appropriate authority to negotiate an international trade agreement with the EU that includes working closely with the European Medicines Agency, but it stopped at that point. That raises in my mind—and I am sure in others’—why other agencies and bodies of equal importance across a range of issues should not also be the subject of close negotiation. I therefore thought that it would be appropriate to bring forward an amendment at this stage which tries to list some of them.
I noticed that, in the Chequers statement and the White Paper that followed it, there was in fact a much longer list of bodies which were thought to be appropriate in any future negotiated international trade agreement with the EU. They did not appear in my original list, but they could well be considered. I also discovered that the CBI was keen to draw the Government’s attention to its view that the future relationship with the EU would suffer tremendously if a considerable effort was not made to approach bodies such as the European Medicines Agency and then including the European Aviation Safety Agency, the European Maritime Safety Agency and the European Network of Transmission System Operators in the same manner. The version before noble Lords perhaps still does not catch the full attention of the Government, but I hope that, when the Minister responds, he might suggest that we work further on this to make sure that we have reached an agreed position before we get to Third Reading. If so, I would be happy to work with the Government on that.
The Minister will probably raise the question why paragraphs (f) and (g), covering the European Food Safety Authority and the European Union Intellectual Property Office, are on my list whereas they perhaps would not meet the criteria that are going to be raised by the Government. I would be interested to hear his arguments on this, because many Members of your Lordships’ House would think that the European Food Safety Authority meets all the criteria of the others in the list. Moreover, if we are to make a future of our economy in the new modern world, we are certainly going to need to work closely with the European Union Intellectual Property Office, which has a high reputation for all the work that is involved in trying to regulate and bring forward arrangements for new technologies. I beg to move.
Lord Bates
My Lords, I thank the noble Lord for presenting his amendment, and I particularly thank him for the way that he has engaged with officials and with my noble friend Lady Fairhead on this important issue. I can cut to the chase and say that we are probably not going to be that far apart, but let me put some remarks on the record in the hope that we can agree to keep working on this between now and Third Reading.
Ministers from across Government have carried out an extensive engagement on EU exit with businesses, industry bodies and civil society organisations from all sectors of the economy and all regions of the UK. The Secretaries of State at DExEU and BEIS and the Chancellor of the Exchequer co-chair the EU Exit Business Advisory Group to ensure that business is not only heard but is influential throughout the negotiations. The group involves the director-generals and directors of the CBI, IoD, EEF, BCC and FSB. The meetings take place regularly and are included in transparency returns. Since July 2016, DExEU Ministers alone have organised and attended more than 500 engagements with business and civil society stakeholders from every sector of the British economy.
For goods, the UK and the EU want to be as ambitious as possible. As part of this, both parties have agreed to explore the possibility of UK co-operation with EU agencies such as the European Aviation Safety Agency, the European Chemicals Agency and the European Medicines Agency. In addition, the political declaration sets out that the UK will seek to co-operate with the European Maritime Safety Agency and the European Network of Transmission System Operators. As a specific example of this suggested co-operation in the interests of tackling shared safety and security issues, we will continue to co-operate with the European Maritime Safety Agency, including on exchange of information between the agency and the United Kingdom Maritime and Coastguard Agency.
Let me turn now to the core issue that remains between us, which is the position of the EU Intellectual Property Office. The Government are working to find the best arrangement for the UK regarding EU agencies and bodies, but the decision to seek co-operation with an EU agency or body must be made carefully, bearing in mind the context of the UK’s overall aims for the future relationship and negotiations with the EU. As we negotiate our future relationship with the EU, the Government are determined to agree ambitious provisions to help businesses protect their intellectual property rights. Indeed, in the political declaration the UK and the EU commit to establishing,
“a mechanism for cooperation and exchange of information on intellectual property issues of mutual interest”.
In this regard, the UK would seek an appropriate level of co-operation with the EU and other relevant agencies such as the EU IPO. What we can achieve will be subject to the negotiations. However, since intellectual property is a wide-ranging and dynamic area of law, it would be unwise to stipulate in UK law exactly how we want to co-operate with the EU in this given area, as this could have wider implications for the balance of rights and obligations in the future partnership.
Whatever the outcome of the negotiations, I should like to reassure the noble Lord, Lord Stevenson, that trademarks and registered designs are granted on a non-discriminatory basis. That means that, in all circumstances, British businesses will continue to be able to use the EU Intellectual Property Office to protect their trademarks and designs in the EU. The Government want to emphasise that we seek to be ambitious and to obtain the best result possible in the negotiations with the EU on intellectual property. However, as it stands, the amendment would be unhelpful in that it would bind the UK to a particular negotiating approach. The negotiation objectives are complex, and there are vitally important questions which must be weighed in their own right.
In accordance with the commitments made by the Prime Minister, Parliament will have a greater and more formal role in the development of the mandate for the next phase of the negotiations. The Government are more than sympathetic both to the concerns of the noble Lord, Lord Stevenson, and to those of businesses. A thorough engagement with stakeholders and the EU has led the UK to saying that it will seek co-operation with five bodies that I mentioned earlier. This work requires thorough and weighted consideration of how active participation in an agency delivers wider negotiation goals in the context of any associated costs and disbenefits.
I thank the noble Lord for his constructive approach to engagement on this. I believe that we are not far apart from each other, particularly in the light of the progress that we have made to date. As a consequence, I can confirm, as has been the case throughout the process, that I and the lead Minister, my noble friend Lady Fairhead, will be happy to have further discussions to see whether we can reach a mutually acceptable agreement. We will therefore return to this matter at Third Reading. On that basis, I would ask the noble Lord to consider withdrawing his amendment.
Lord Stevenson of Balmacara
My Lords, I thank the Minister for his considerate words and for dealing in detail with some of the issues that I raised in my opening statement. With his agreement, we will see whether we can work further over the next few days to get a common agreement on a wording that can be brought back at Third Reading. I beg leave to withdraw the amendment.
Baroness Fairhead
“Statement on equalities legislation
(1) This section applies where a Minister of the Crown proposes to make regulations under section 2(1).(2) Before a draft of the statutory instrument containing the regulations is laid before either House of Parliament, the Minister must make a statement—(a) as to whether the statutory instrument would, if made, modify any provision of equalities legislation, and(b) if it would, explaining what the effect of each such modification would be.(3) If the Minister fails to make a statement as required by subsection (2), the Minister must make a statement explaining why.(4) A statement under this section must be made in writing and published in such manner as the Minister making it considers appropriate.(5) In this section, “equalities legislation” means the Equality Act 2006, the Equality Act 2010 and any subordinate legislation made under either of those Acts.”
Baroness Fairhead
My Lords, we have talked at length about the purpose of the Government’s trade continuity programme, which is to seek continuity of the effects of existing EU free trade agreements as far as possible as we leave the EU. The vast majority of these existing trade agreements, which we are part of as an EU member state, are already in operation in the UK and have been scrutinised by Parliament.
Let me make it clear that, as part of this programme, we do not expect to need to change existing domestic equalities legislation. In the unlikely event that we need to make minor or consequential changes to this legislation, we will aim to ensure that this does not result in reduced protection against unlawful discrimination or diminution of equality rights. However, as indicated in Committee, to ensure suitable transparency and accountability on this important issue, the Government have worked closely with the Equality and Human Rights Commission to develop this amendment.
Amendment 26 specifically provides for a ministerial Statement to be made before any regulations are laid under the Clause 2 power to implement a continuity trade agreement. This statement will outline whether those regulations modify any provision of the Equality Acts 2006 and 2010 or any subordinate legislation made under those enactments. This is in addition to the reports that Parliament will receive under Clauses 3 and 5, setting out any significant differences between continuity agreements and the corresponding original EU agreements.
I trust that this House will accept this as further evidence that the Government have a strong desire to be transparent with Parliament, businesses and the general public about their continuity programme. I beg to move.
Lord McNicol of West Kilbride
My Lords, briefly, we on this side support the amendment and are pleased the Government are committed to protecting equalities legislation. However, I would like to see the Government go a little further and give a firmer promise that trade agreements will not allow any regression of standards as we move forward. I have nothing further to add.
Baroness Fairhead
My Lords, I thank the noble Lord, Lord McNicol of West Kilbride, for his support. As I think the House is aware, we are trying to work on standards to agree a mutually acceptable form of words.
I conclude by placing on the record my thanks for the positive engagement that the Government have had with the Equality and Human Rights Commission in relation to this amendment. We have worked closely together on developing it. As the House will have seen from the commission’s briefing, it too is supportive of the amendment. Consequently, I hope your Lordships will support the amendment. I beg to move.
Amendment 26 agreed.
Clause 7: Regulations: devolved authorities and general provision
Amendment 27
Viscount Younger of Leckie (Con)
My Lords, I rise as batsman No. 3 today. This group covers Amendments 27, 28, 29, 30 and 36 to 58. I will speak to Government Amendments 27, 29, 30 and 36 to 58 which are minor, technical amendments. I will then respond to amendment 28 tabled by the noble Lords, Lord Stevenson of Balmacara, and Lord Purvis of Tweed, after they have spoken to their amendment.
To avoid the unnecessary duplication of a provision already in place by virtue of the European Union (Withdrawal) Act, Amendment 27 removes Clause 7(2). Clause 7(2) allows for devolved Administrations to make regulations under section 1(1) or 2(1) of the Trade Bill before exit day provided that those regulations do not come into effect until exit day. This is already provided for by the European Union (Withdrawal) Act, which applies this principle to all Bills passed after the Act in the same Session of Parliament. There will be no change to policy with the removal of Clause 7(2); it merely removes an unnecessary and duplicative provision.
For the Bill to work in the way that is intended, the definition of subordinate legislation must include Acts passed in devolved legislatures as well as in the UK Parliament. This is possible by changing the definition of subordinate legislation from that used in the Interpretation Act 1978 to the more detailed one used in the European Union (Withdrawal) Act. This is the purpose of Amendment 29 which ensures that, where possible, the provisions in the Bill respect the important role of the devolved Administrations.
Turning to Amendments 30 and 36, Clause 8(6) in Part 1 of the Bill sets out a list of definitions of terms found in the Bill, such as “devolved authority”. The amendments will move the definition of domestic law from Schedule 1, paragraph 2(7) to Clause 8(6), where it will sit alongside other definitions that relate to the devolved Administrations. This will make the Bill easier for people to follow.
Turning to Amendments 37 to 43 and 45 to 58, Schedule 1 to the Trade Bill allows joint procedure requirements that derive from outside the Trade Bill still to apply to regulations made under Clauses 1 and 2 of the Bill. By inserting the phrase “acting alone” to appropriate places in Schedules 1 and 2, as Amendments 37 to 43 and 45 to 58 seek to do, we are improving the quality of the legislation by clarifying when the devolved authorities are acting alone as opposed to acting jointly with the UK Government.
Amendment 44 ensures that paragraph 6(4) of Schedule 1 works as intended by applying consultation requirements that would otherwise bind Northern Ireland devolved authorities to regulations made under Clause 1(1) and 2(1). These changes are technical in order to tidy up the Bill, and as such I hope your Lordships will support them.
Lord Stevenson of Balmacara
My Lords, it is a test of the abilities of Ministers to be able to breathe life into a list such as that we have just heard. This is a case of drafting amendments beyond the boredom threshold of many people who have to sit through these debates, and I congratulate the noble Viscount on his ability to do that well. I have no objection to the points that he has made and will support them enthusiastically when asked to do so.
In this group, which includes a lot of one-line amendments, is a large amendment dealing with the Sewel convention, which has operated for a number of years in relation to devolved matters in the Assemblies in Scotland, Wales and Northern Ireland—when they meet. It is there because there is concern that the Government have still not bottomed out their arrangements for how all such matters are to be dealt with going forward. While there is no complaint that the convention has not worked well until now, conventions are conventions and there is an argument, at least in principle, that at some point—either now or at some later stage—an attempt should be made to clarify the rules by which it operates and the conditions under which it exists.
I say that particularly because there remains a continuing concern over how the Government attempted to legislate in the withdrawal Bill, in particular on matters being devolved—as they may be under any agreement with the EU or if we crash out—to the UK but for which there was a strongly persuasive case for them going directly to the devolved Administrations. In those circumstances, a great deal of work has been done and a lot of the individual issues have been settled, one way or another. However, a list of matters relating to devolved issues still needs to be resolved so that where they intersect with other geographical locations, there is a workable scheme under which progress can be made.
One issue that arose previously was the extent to which the devolution legislation passed in this House to set up theses bodies could be invoked for issues concerning who has the authority to legislate where a matter is devolved. If a matter is not reserved under the Act, it is devolved, so matters that fall to be devolved must have the consent of the body to which the issue is devolved under the Sewel convention. I am putting this simply; the arrangement is more complex. In the case before us, with trade being such an important issue, we felt that there should be some measure in the Bill to explain exactly the conditions under which the convention would operate and the extent to which it would or would not be concerned. The amendment’s wording is quite clear:
“Regulations made … by a Minister of the Crown may not normally make provision which would be within the devolved competence of a devolved authority”,
unless the Ministers consent. It goes on to say that it would normally be within the devolved competences of the devolved authority, to which conditions are attached. That applies to all areas.
That would have been a very simple introduction to a very simple issue on which I would expect the Minister to respond. However, it will not have escaped the House’s attention that only yesterday, a very similar amendment to another Bill—the Healthcare (International Arrangements) Bill—was moved by the noble Baroness, Lady Manzoor, on behalf of the Government. It covered almost exactly the same territory. It was phrased positively, in a way that the amendment before the House today is not, but it covers the same ground. It said:
“Before making regulations … that contain provision which is within the legislative competence of a devolved legislature, the Secretary of State must consult the relevant devolved authority on that provision”.
It goes on to explain the conditions under which that would operate. The wording is not identical but I would argue that the sensibilities and principles behind this matter are identical to those of that amendment. Does the Minister therefore recognise that, to the extent to which the Government have already considered this issue and legislated for it, it may be in the Government’s best interests to accept Amendment 28, since to do otherwise might cause difficulty for what has already been agreed to in the healthcare Bill? Alternatively, would he agree to meet me and other noble Lords to discuss this, so that we can come back at Third Reading with wording that is consistent with what will soon be in law via the healthcare Bill and appropriate for the Trade Bill?
Lord Purvis of Tweed
My Lords, I will also speak to Amendment 28, to which I have added my name. There is not much to add to the persuasive case made by the noble Lord, Lord Stevenson. I welcome the Minister, who is always assured at the crease even as the third batsman. His clarification on Ministers of the Crown acting jointly with devolved Ministers is helpful; Clause 2 has always been a bit of a puzzle for me when it comes to the joint working of the two sets of Ministers.
As the noble Lord, Lord Stevenson, pointed out, our discussions in Committee concerned the areas of interaction where either devolved and reserved competences align themselves clearly or there is dispute as to where they fall—that is, whether they fall fully in the devolved competences of the Welsh or Scottish Parliament, for example, or are reserved. When we discussed the withdrawal Act, the Government put forward all the different policy areas to be repatriated from European Union legislation. There were no issues with 49 of them. It was recognised that a common framework between the UK and the devolved Administrations was needed for 82 of them. The Government said that there was to be further discussion on 24 of them. In 12 areas, there was no agreement; the UK believed that they were reserved but the devolved Administrations, particularly the Scottish Parliament, believed that they fell fully within the devolved competences.
Lord Hope of Craighead (CB)
My Lords, I add my support to Amendment 28. I hope not to repeat too many of the points already made.
The Minister may have seen the letter from Mike Russell, dated 11 March 2019, to which the noble Lord, Lord Purvis, referred. He draws attention to the fact that the Scottish Parliament is not prepared to give its consent to the Trade Bill as presently drafted, which is a matter of some concern. It is not just being obstructive; it is taking a measured position based on Clause 2 of the Scotland Act 2016, to which the noble Lord, Lord Purvis, also referred. In his letter, Mike Russell said, as the Scottish Government has pointed out, that many of the 24 policy areas currently identified as potentially subject to such regulations are highly relevant in terms of future trade deals, for example food and feed safety, animal health and welfare, agriculture, environmental policy, food labelling, procurement and fisheries management. It is vital that the Scottish Government and Parliament should be able to protect and advance Scotland’s interests and approach in these areas. It is concerning that the Bill as drafted does not mention either consent or consultation. I hope that the Minister will feel able to look at this matter more carefully before we reach Third Reading.
I will make two further points. First, the wording of Amendment 28, adopting the formula in the Scotland Act, uses the word “consent”. I recall long arguments, when we were debating the European Union (Withdrawal) Act, about whether the word “consent” should be included in its various provisions involving interaction with the devolved authorities. The matter was resolved, in connection with the frameworks in relation to trade, by using the word “consult” instead of the word “consent”.
Personally, I would argue that we should adopt the forms in the Scotland Act, but the fact that the word “consult” was used in the amendment to the Healthcare (International Arrangements) Bill, to which the noble Lord, Lord Stevenson, referred, might be worth some reflection on the Minister’s part. As the noble Lord pointed out, the formula used in Amendment 15 to that Bill, which was an insertion after Clause 4, was:
“Before making regulations under section 2 that contain provision which is within the legislative competence of a devolved legislature, the Secretary of State must consult the relevant devolved authority on that provision”.
That does not go as far as the Scottish Government wish, but at least it is a step in the right direction. As that amendment was moved by a Minister to a closely related Bill—it is part of the general package that we are considering, which is all related to our departure from the EU—I hope that the Minister and his Bill team will give careful consideration as to whether, if the Minister is not prepared to accept the formula in Amendment 28, that formula should be adopted instead. The difference between “consent” and “consult” is quite significant—but consultation, at least, would go a substantial way to meeting the concerns of the Scottish Government in these very important areas.
I shall add one further point. I was in the Grand Committee the other day looking at a statutory instrument that had been made by a UK Minister, and it contained a substantial number of amendments to Scottish legislation made by the Scottish Parliament. I asked why that was being done in a UK SI, rather than being dealt with by the Scottish Parliament. When one looked at the description in the back about consultation, one saw that it was defective, because it did not make it clear that the Scottish Government had been consulted. That was an example of a statutory instrument made by a Minister, on which one would have thought that consultation was essential—indeed, during discussions on the withdrawal Bill I was assured that the Sewel convention would be applied—yet the narrative was incomplete. That may have been simply a technical error, but it illustrates how easy it is to overlook the need for consultation, at least, unless that is on the face of the statute. So I warmly support the points made by the two noble Lords in support of the amendment. If the matter is to be taken away, I hope that the Government will come back on Third Reading with something to address this important issue.
Viscount Younger of Leckie
My Lords, I thank the noble Lord, Lord Stevenson, for this amendment, and for his scrutiny of the devolution provisions in the Bill throughout its passage. I also thank the noble Lord, Lord Purvis, and the noble and learned Lord, Lord Hope, for his points, which I will address later. Ensuring that the Bill works for the whole of the UK remains a priority for the Government, so I am pleased to inform your Lordships that yesterday the National Assembly for Wales voted in favour of granting consent to the Bill. I ask that this House consider that when weighing the scrutiny of the Bill in the context of the devolution settlements.
The practical purpose of the amendment is that the UK Government should, as a matter of course, seek the agreement of the devolved Administrations prior to legislating in areas of devolved competence. This is not, in principle, an area of contention; rather, the question is whether this should be on the face of the Bill. I reiterate that the UK Government are committed to not normally using the powers in the Bill to legislate in areas of devolved competence without the consent of the relevant devolved Administrations, and certainly not without first consulting them.
We have respected the role of the devolved Administrations through our programme of engagement with them, government amendments in the other place and my renewed commitment today. The Government will maintain this commitment. More broadly, the UK Government have been working productively and collaboratively with the devolved Administrations on a number of fronts. UK government officials are working with devolved Administration officials to revise the common frameworks analysis and take into account progress on framework areas since March 2018. The Government anticipate publishing a further iteration of this analysis shortly.
During our debates on this legislation, there have been many areas of agreement between us and noble Lords on the opposite Bench. Indeed, the noble Lord, Lord Stevenson, was correct to say in Committee that the use of the powers in devolved areas is,
“more complicated than can be dealt with within the confines of the Trade Bill.”—[Official Report, 23/1/19; col. 724.]
Additionally, the amendment risks setting a precedent whereby competence for policy-making is defined outside the established devolution settlements. It seeks to go further than the convention already recognised in the most recent Scotland and Wales Acts, and could require the court to make a decision on whether or not we were in normal circumstances. I do not believe it is the intention of this House to introduce new legal uncertainty to our statute book.
The Supreme Court made it clear in the judgment on the Miller case that it does not believe it is appropriate for the courts to police the Sewel convention, as it does not lie within the constitutional remit of the judiciary. By inviting this potential judicial scrutiny, the amendment could obstruct the programme of continuity that the Bill seeks to deliver, as the use of the powers could be substantially delayed, to the detriment of the UK as a whole.
I shall now deal with the point raised by the noble Lord, Lord Stevenson, when he mentioned the Healthcare (International Arrangements) Bill. As he knows, I was not involved with that Bill, but I hope that I can help. The amendment to that Bill requires the Secretary of State only to consult. Amendment 28 involves a consent requirement. Those are very different—and this plays into the point made by the noble and learned Lord, Lord Hope. For reasons that we have set out, the consent requirement would create a legal test for the courts, and therefore uncertainty. The powers in the healthcare Bill are different, too. The benefit of the concurrent powers in the Trade Bill is that they allow for the relevant Administrations to legislate themselves where a matter falls under devolved competence, and also allows Ministers of the Crown to make regulations for the whole UK when that makes sense.
As well as the benefits to the devolved Administrations of the concurrent powers, we have made repeated commitments on the Floor of both Houses always to consult the relevant devolved Administration. To take up the point raised by the noble and learned Lord, Lord Hope, about creating legal uncertainty, although the amendment includes the word “convention” in its title, it uses words that appear designed to turn the convention into a legal test. It uses the words “may not normally”, which appear designed to make that a legal rule justiciable by the courts. This could be a substantial block on the use of the Clause 1 and 2 powers, and could lead to delay through litigation, or, ultimately, to a block on the use of the powers if the court judged the situation to be normal. This could allow a challenger the power to withhold consent to the implementation of part of an agreement, meaning that the UK could not bring it into force until the matter was resolved.
Lord Purvis of Tweed
Clearly, I would always defer to the noble and learned Lord, Lord Hope, on these issues, but I had a slight anxiety when I heard the Minister say from the Dispatch Box that UK Ministers would be allowed to make regulations where they considered that that “made sense”. That is not language that we have become accustomed to in devolution practices over the past 20 years. UK Ministers could say almost all the time that it made sense for them to bring forward such regulations, especially in the context of trade agreements that they themselves had negotiated. But that is not the point. The point is that the legislative competences are not those of UK Ministers, but those of other bodes. All we ask is that the practices that have been developed, which have now been adopted in the Scotland Act—it contains language recognising that the Parliament of the United Kingdom “will not normally legislate”—be continued. That is now well established in statute. I cannot see why the Government say that it would cause problems in a separate statute, because it is already in statute.
Viscount Younger of Leckie
I listened carefully to what the noble Lord said. He referred to the point I made about making sense, and legislative efficiency after consultation with the devolved Administrations is what we are looking for. So in effect, I believe that we are on the same side of the fence. But given that we are getting into some quite detailed discussions and debates and my job is to give answers, it may be helpful if we go into such detail outside the Chamber with a further meeting. I have not finished yet, but I hope that so far I have given some reassurance to noble Lords.
Returning to my opening point, the vote yesterday in support of a legislative consent Motion by the National Assembly for Wales is a significant endorsement of the Trade Bill, and I am pleased that the UK Government have been able to meet all of the Welsh Government’s requests to improve the Bill. The Assembly’s vote recognises the UK Government’s meaningful efforts in ensuring that the Bill works for the UK. I hope that I have provided sufficient reassurance on the Government’s commitment, and the potential unintended consequences of this amendment. Therefore, I ask the noble Lord not to press Amendment 28.
Lord Hope of Craighead
I return to the word “normally”, to which the Minister drew attention. I recognise that in its judgment in the Miller case, the Supreme Court made it quite difficult for anyone to take a case before the court based on the use of the word “normally”. Indeed, the convention itself is not justiciable. In a way, that shows the sense of the formula that is used in the Healthcare (International Arrangements) Bill because that does not use the word “normally”. It just states that the Secretary of State “must consult”. If one is asking for consent, a higher level of co-operation is a useful qualification. “Normally” requires consent. But consultation is a sine qua non of proper legislation where the devolved Administrations are concerned. I would have thought that the formula in the amendment would not give rise to the same concern, which is why I suggest that the Minister considers very carefully whether, in this Bill, it would not be appropriate to adopt the same provision.
I appreciate what the Minister says about the consent of the Welsh Assembly, but it is a matter of some concern: the Scottish Government are particularly sensitive in relation to these issues and it would be a pity to say to the Scottish Government that just because the Welsh have agreed the Scots should just accept the provisions. They are making their own arguments based on what they know is important to them. Therefore, I hope that the Minister will pay very close attention to the point made.
Lord Stevenson of Balmacara
My Lords, this has been a useful little debate and I am grateful to the noble Viscount, Lord Younger, for raising all the points that he did and giving such a full response. But may I check with him that he said—it will be in Hansard—that he would be happy to have further discussions about the issue? I appeal to him and his good sense. Given that we are already in debate with him and his officials on a number of issues, this could with advantage be added to the list. It is not that we have any particular reason to want to bring it back in any aggressive form at Third Reading, but the issues raised are worth further discussion, particularly because the Government have chosen to legislate in the Healthcare (International Arrangements) Bill and that, irrespective of whether or not it has direct read-across to the Trade Bill, will have set a standard. We have to be careful that we are not either missing or exceeding that in a way that would be detrimental to any future discussions on trade.
I am willing not to press this amendment if we can be absolutely clear that there will be further discussions, because this point has not been fully resolved. But I give an undertaking that this is in no sense trying to make things difficult for the Government. It would be worth going a further round to get this right.
Viscount Younger of Leckie
As I said, I am very happy to be part of further discussions.
Lord Stevenson of Balmacara
A further meeting, principally with those who raised points in this debate, would satisfy us. I do not think that we are far apart on this, but if we can work out exactly what we want said in a way that would advance the chances of getting a better result for all concerned, that would be the right way forward.
Baroness Fairhead
“(6) In this section, “domestic law” means the law of England and Wales, Scotland or Northern Ireland.”
“Assessment of anti-dumping or anti-subsidy measures
In determining whether the application of an anti-dumping or anti-subsidy measure meets or does not meet the economic interest test under Schedule 4 to the Taxation (Cross-border Trade) Act 2018, the Secretary of State or TRA must give special consideration to the injury caused by the dumping of the goods, or the importation of the subsidised goods, to a UK industry and the benefits to the UK industry in removing that injury.”
Baroness Brown of Cambridge (CB)
My Lords, Amendments 31 and 32 are in my name and those of my noble friend Lord Kinnoull and the noble Baroness, Lady McIntosh of Pickering. Amendment 31 relates to the presumption in favour of adoption of trade measures and it will be familiar to noble Lords from Committee.
The Taxation (Cross-border Trade) Act sets the overarching rules under which the UK’s new Trade Remedies Authority will operate. The Act does not have a clear or explicit presumption in favour of adoption of trade measures akin to the EU equivalent, the Union interest test. Considering whether measures are in the interests of the UK involves taking into account five different sets of interests. In doing that, unlike the EU approach, the Act does not give priority or special consideration to the interests of the complainant industry. That special consideration gives the EU test a presumption in favour of adoption of measures, which is absent in the UK Act. While government amendments on Report of the Taxation (Cross-border Trade) Act improved the wording around the economic interest test, and Ministers have privately assured manufacturers that the intention is that there is a presumption in favour of adoption of the measures, the words contained in the Act fall short of such a presumption.
I thank the Minister for helpful meetings with me and my noble friend Lord Kinnoull on this issue, and I hope that, in her reply, she will be able to clarify the presumption that the TRA will apply when it conducts the test. An explicit reference to special consideration of the need to remove injurious dumping would be particularly helpful.
Amendment 32 relates to the way that the detailed rules for the operation of trade remedies will be scrutinised. These rules will have profound impacts on UK manufacturers’ ability to level the playing field when overseas competitors do not play by the rules. Many of those rules about the operation of trade remedies will come through secondary legislation as a result of provisions in the Taxation (Cross-border Trade) Act. Trade policy generally, including specific issues such as these, is of such importance that we should be discussing it frequently in your Lordships’ House—a sentiment that I believe the Minister might also support. Amendment 32 would require the statutory instruments to be affirmative instruments, to be discussed and approved by resolution of both Houses. I am interested to hear from the Minister about the opportunities that your Lordships’ House will have to debate important trade policy issues. I beg to move.
The Earl of Kinnoull (CB)
My Lords, I added my name to these two amendments and I will be brief. I agree with every word that my noble friend Lady Brown just said. I add my thanks to Ministers and the Bill team, who have been very gracious and given of their time generously to discuss these issues. I have nothing to add to what my noble friend Lady Brown said about Amendment 31, about which I wholly agree.
I also agree with what she said about Amendment 32, but I have one more point to add. It arises out of the report of the Constitution Committee into the Trade Bill. Talking about the formation of the Trade Remedies Authority, it states:
“While we recognise the pressing timescales and uncertainties concerning Brexit, in constitutional terms, creating and empowering an important public body in such a manner is inappropriate”.
I very much agree with that assertion. I therefore regard Amendment 32 not only as a mechanism for debate but as a partial cure for the problem that the Constitution Committee has unearthed in its report. I therefore see it as being an attempt to try to somewhat address that problem. Can the Minister comment on that and, if she feels the amendment should not be agreed, how we should address the itch that the Constitution Committee identified?
Lord Lansley (Con)
My Lords, I will make three very quick points. First, we need to be clear that Amendment 31 simply tries to attach the words “special consideration” rather than “take account”. It is not that all the factors are not there; they are, and they will be considered. The point is that special consideration should be given to this. It is not necessary to do that, because the nature of the structure in Schedule 4 would suggest that that precisely would be the case. I cannot therefore support the amendment. Temperamentally, I want to support Amendment 32, but I fear that in practice there will be many such regulations and it would not be the best use of time for this House and the other place repeatedly to engage in approving regulations of this kind.
I am interested in whether the Minster has anything to add on the potential announcements today on tariffs, which we foreshadowed last week. It is said that all the existing remedies presently imposed by the European Union would be continued, even under a no-deal scenario, by the United Kingdom. I want to inquire—the Minister might choose to reply by letter—to what extent it will be sustainable for us to do that when the remedies will have been assessed in relation to the European Union as a whole, rather than to the United Kingdom itself. For example, an increase in imports leading to injury to an industry might well be applied by the European Union in relation to an industry in Italy or Spain, but it would not be appropriate for such a remedy to be applied in the United Kingdom. That would very rapidly be open to challenge if we do not get the Trade Remedies Investigation Directorate, which is up and running in the Department for International Trade, on the case, so that we can, if we have to—I hope we do not—apply remedies on the basis of an investigation with UK, rather than EU, data.
Baroness Fairhead
My Lords, I thank the noble Baroness, Lady Brown of Cambridge, and the noble Earl, Lord Kinnoull, for tabling their amendments and clarifying in advance their concerns with me and the ministerial team.
Before I respond fully to the amendments, I will take the opportunity to draw your Lordships’ attention to the steps that the Government have taken to ensure that the UK is ready to deliver a fully operational trade remedies system by exit day. The Government have brought forward legislation under the Taxation (Cross-border Trade) Act 2018 to establish the UK’s trade remedies system in the event that we leave the EU without a withdrawal agreement. These regulations also temporarily confer trade remedy functions on the Secretary of State until the Trade Remedies Authority, the TRA, is legally established.
Staff already recruited to DIT with the intention of transferring to the TRA on Royal Assent of the Bill, including those trained as investigators—the key function of this body—will carry out their functions as the Trade Remedies Investigations Directorate within the department. The directorate started work on 6 March and will deliver trade remedies functions in house pending legal establishment of the TRA.
Let me repeat that this arrangement will only be temporary. As noble Lords will appreciate, this is a necessary and pragmatic operational contingency to ensure continuity of protection for UK businesses. This must remain the Government’s priority. It is right that we plan for all eventualities, including where, for whatever reason, the TRA is not legally established under the Bill by 29 March.
Baroness Brown of Cambridge
I thank the Minister for her detailed response. It is very encouraging to hear of progress with the implementation of the trade remedies system and with the work being done to ensure that, should we need it, provisions will be in place to support industry in this way on exit day should the TRA not be legally established by that point.
It was also good to hear the Minister say that the Government intend that we will act decisively on injury to domestic manufacturers, such as our ceramics industry, and I thank her for the reassurance that the intent of the Act is that there will be—I shall put it in inverted commas—“special consideration” for hurt to manufacturers when the economic interest test is applied. I am very comfortable with the strong reassurance she has given.
On Amendment 32, I accept the argument that there will be a large number of SIs containing a great deal of technical detail and that that is the reason for the negative procedure. I still have concerns that some very important issues will come through under the negative procedure. Trade remedy issues will be some of them, so it is with some reluctance that I shall not move Amendment 32. I beg leave to withdraw Amendment 31.
“Collection of export information on international education
(1) The Office for National Statistics (or anyone acting on their behalf) must collect and publish detailed information on the export earnings from non-UK-domiciled students which should include—(a) fee income,(b) living cost expenditure,(c) research and other similar contracts,(d) education products and services for non-UK-domiciled students,(e) education related travel and tourism services,(f) tourism expenditure by visitors linked to non-UK-domiciled students. (2) For the purposes of subsection (1) non-UK-domiciled students includes all non-UK domiciled students studying in the United Kingdom, including but not limited to—(a) all non-UK-domiciled students studying at education providers on the Tier 4 sponsor list including schools, English language providers, further education colleges, embedded colleges, private providers and universities,(b) all non-UK domiciled students studying on a short-term study visa at a provider with approved accreditation including those on student mobility programmes.(3) Information published for the purposes of subsection (1) must be broken down with regard to—(a) the regions and nations of the United Kingdom,(b) levels of study including school, further education, higher education, and English language provision,(c) subjects which facilitate entry into jobs on the shortage occupation list.(4) Within one month of publication of information under subsection (1), the Secretary of State must publish a target for future export earnings from non-UK-domiciled students which, as a percentage of the global market, must equal or exceed the level reported by the Office for National Statistics.”
Baroness O'Neill of Bengarve (CB)
My Lords, in the absence of my noble friends Lord Bilimoria and Lord Hannay, I shall move Amendment 33. This is yet another amendment on trade in the cultural industries, which have become a very important export sector, with the distinctive feature that some of the exports, in particular educational services, bring people to this country rather us sending goods to other countries.
The amendment seeks to improve the statistical basis for estimating the value of overseas students coming to this country. At present, the way it is estimated is not very satisfactory. Statistics are produced by the ONS, which calculated it as £7.2 billion, and by the DfE, which calculated it as £19.9 billion. That is quite a big gap. The aim of the amendment is to improve the statistics, making it easier to set an export target for this sector. There is a clear need for complete and unambiguous information. Although the students do the travelling, the educational services are a valuable export in which this country has an important place. We have targets set, but it does not make very much sense to set targets until one has clarity about the metrics. This amendment is about the metrics and getting the target right. I beg to move.
The Earl of Kinnoull
My Lords, I was added as the fourth batsman. I have only one thing to add to the very clear presentation made by my noble friend Lady O’Neill, which is that noble Lords will note paragraph (f) of subsection (1) of the proposed new clause. It would mean that some estimate of the tourism expenditure of visitors to students studying in the UK would be included in the statistical information. This information is being collected in Australia and the Australians have discovered that it is quite a big economic driver. That has led them to feel that they have a jewel in the crown of educational exports, and they are trying to grow it. The more we understand the numbers and statistics of the mighty business we have, the more we would be likely to feed it and help it. I bring that to the House’s attention.
Viscount Younger of Leckie
My Lords, the Government welcome international students, who make a valuable contribution to the UK economically and culturally. They bring greater diversity to university and college campuses and an international dimension to the experience of all students. They also stimulate demand for courses and add to the UK’s impressive research capacity. In the longer term, they offer the prospect of productive business, political, cultural and research links. Of course, they also bring welcome income to UK universities and our wider economy.
We are pleased that the UK remains a highly attractive destination for international students. UK higher education institutions hosted almost 460,000 EU and non-EU students in 2017-18, the highest number on record. There remains no limit on the number of students who can study here, and there are no plans to introduce one.
In the Higher Education and Research Act, there is provision for a faster and simpler route for high-quality new providers to enter the sector and gain degree-awarding powers. This allows the sector to diversify and strengthen its international offer, providing even better opportunities to students from all over the world.
The Department for Education currently publishes data on the value of UK education exports annually. These statistics cover education exports and transnational activity relating to higher education, further education, schools, English language training and products and services. I am grateful for the comments made by the noble Lord, Lord Fox, the noble Earl, Lord Kinnoull, and the noble Baroness, Lady O’Neill. It is important to look at the statistics, and I will start by giving a view of the ones that we already publish. The latest education exports data publication was dated January 2019. It set out that total education exports and transnational education activity were estimated to be worth almost £20 billion in 2016. International students at higher education institutions contributed £11.9 billion in exports through living expenditure and tuition fees alone that year. This accounts for around 60% of the total value of education exports and activity.
Baroness O'Neill of Bengarve
I thank the Minister for a very interesting reply and, of course, for the publication of the new document, which I look forward to; I understand that it is due imminently. To get the statistics right is not a simple matter: they interact in quite difficult ways with the metrics that we use for our own domestic students and for quality control. It is surely important to get this right and, since I hear the note of optimism that an attempt will be made to get it right, I beg leave to withdraw the amendment.
“Conditions of commencement
The provisions in Parts 1 to 3 of this Act may only come into force if—
(a) a withdrawal agreement and a framework for the future relationship have been approved by a resolution of the House of Commons on a motion moved by a Minister of the Crown for the purposes of section 13(1)(b) of the European Union (Withdrawal) Act 2018, or(b) the House of Commons has passed a motion “That this House approves of the United Kingdom leaving the European Union without a withdrawal agreement and a framework for the future relationship”.”
Lord Stevenson of Balmacara
My Lords, when I first joined your Lordships’ House, I was given tutelage in the ways and proceedings of this House. Indeed, I had a watcher who held hands with me, as it were, right through my opening period. One of the first things he said to me was, “When you get a new Bill, look at the commencement clauses, because they tell you how serious the Government are about their intentions”. Hidden in the interstices of the commencement clauses there is often a very good clue about how things happen. Some of the powers in a Bill come into effect immediately the Bill receives Royal Assent. Quite a few do not, and for them usually various elements come forward under regulatory procedures which are sometimes difficult to guess but which are very important to follow through to their logical conclusion. Nine years ago that was seared on my brain as an important thing, and I have never had the opportunity to do anything about it until today. I am therefore delighted to bring forward my first amendment on a commencement clause—and what an amendment it is.
As we speak, Divisions are happening in another place that will bear to some extent on the future of this Bill in its entirety, because consideration is being given to the question of whether there will be no deal. We have anticipated some of the thinking on that by wondering whether it would be sensible to give regard to the question of whether this Bill in its entirety had a commencement at all in relation to whether the other place had actually resolved that measures that would be affected by the legislation contained in this Bill had been given satisfactory agreement by the House of Commons.
There are two parts to this. Either a withdrawal agreement and framework for the future relationship with the EU must have been approved by a resolution of the House of Commons in a move by a Minister under Section 13(1)(b) of the European Union (Withdrawal) Act 2018, or the House of Commons must have passed a Motion that it approves of the United Kingdom leaving the European Union without a withdrawal agreement or a framework for a future relationship. These are quite tight and narrow constraints on the ability of this Bill to come into force. They are important because, in a sense, they tie the whole of the debates about our future relationship and trade in the widest context to the question of what exactly the Government intend for the future of the country in relation to the withdrawal Act.
The whole process can take effect only on the formal passing of a Motion or Motions by the House of Commons. This may not be the night on which such a Motion takes place. I understand that the amendments selected for discussion today do not fulfil the criterion set out in the withdrawal Act as being binding on the Government, although they will give us a clear view about where things will go. But we have been saying this for ages. Indeed, my credibility is shredded by the number of projections I have given to my family about what I thought was happening, all of which have turned out to be wrong. I am not proposing to go further tonight than simply saying that activity is happening that may have a bearing the future of this amendment. With that, I recommend to your Lordships’ House that we seriously consider this amendment. If necessary, I would like to test the opinion of the House.
Lord Kerr of Kinlochard
My name is on this amendment, which seems to be an extremely sensible one. I support what has just been said. I had no mentor when I came into this House, and I had no one to hold my hand, so, as will be obvious to all, I am lost, particularly on the details of commencement. But it seems to me that one of the virtues of this amendment is that it would rule out proceeding in the event of an accidental no deal. An accidental no deal is still a real possibility. But any form of no deal would be an act of self-harm, which I hope will be rejected very strongly in a very few minutes.
I was very sorry to see that some members of the Government were proposing to vote for self-harm, which is very odd. The doctrine of Cabinet responsibility seems to have fallen by the wayside on an issue as important as this, where it is impossible to have a government line which all the Cabinet would stick to. It seems to me that, since Sir Robert Walpole’s time, the defining characteristic of British Cabinet government is Cabinet responsibility shared by a group of friends who can command a majority in the House of Commons. It seems that both of these conditions are not met. I am not sure how relevant that point is to the amendment in my name and that of the noble Lord, Lord Stevenson of Balmacara, so I will say merely that I support it.
Lord Purvis of Tweed
My Lords, as we move towards the final stages of Report, it is right that we reflect briefly on why we have this Bill. Primarily it is here in case there is a no-deal Brexit. It includes many of the provisions that the Government told us would have to be in place before exit day for preparedness in case there was a no-deal exit. That was the intention in January 2018, when the Commons first debated this Bill, and we received it in September.
It was still the Government’s intention then that there would be plenty of time to put this legislation on to the statute book in order for there to be a framework for the slew of continuity agreements that we would all be considering. So far we have three, representing 0.3% of UK exports, and we will be debating them later today. If we are going in the direction of putting this Bill on the statute book in order to facilitate a no-deal Brexit, it is right that it is an intentional decision by the House of Commons that that is indeed the path that we should go down.
If the noble Lord, Lord Stevenson, presses this amendment, we will support it, because it is unconscionable, to use the Attorney-General’s word, that we will somehow at this stage find ourselves inadvertently in a no-deal scenario. However, we will have to reflect to some extent on what the House of Commons decides. The noble Lord, Lord Kerr, is absolutely right: not only has Cabinet collective responsibility now been ditched but there is not even any kind of collective responsibility within the Treasury. Today, the Chancellor talked about the shock to the economy and the deeply damaging elements of a no-deal Brexit. His deputy disagrees with him and will be in a different Division Lobby in the other place this evening.
Therefore, whatever the House of Commons decides, it is right that we provide a degree of certainty in this legislation, so that we cannot accidentally go down the path of a no-deal Brexit. If this Bill is to be enforced to provide that framework, it will have to be on the basis of a majority in another place specifically asking for it, and that is why this amendment is justified. As I said, if the noble Lord presses it, we will happily support it.
Lord Lansley
My Lords, I profoundly believe that we should not leave the European Union without a deal in place, but making this amendment to the Bill would not prevent that. Such an outcome would have to be stopped in another place with legislation or through the revocation of Article 50, and this amendment does not bear on that. Unfortunately, in that unhappy event, the amendment would remove from us the power to implement, for example, the agreement that has been reached with Switzerland. It is not ideal, but it is there. It has been entered into in good faith by us and by the Swiss on the basis that, in the event of no deal, we have to have that measure available.
I am afraid that it is also not true, as the noble Lord, Lord Purvis of Tweed, suggests it is, that the Bill is entirely occasioned for the eventuality of no deal. It enables us, for example, to establish the Trade Remedies Authority—we have just heard about the valuable work that it is doing—and it implements the Agreement on Government Procurement, which is a very large-scale issue for British services companies and others which want to be able to bid internationally under the WTO for such contracts. The amendment would stop this Bill coming into force, and we would therefore be unable to ratify the international Agreement on Government Procurement in the way that we were intending, and it would deprive businesses of the opportunities that that would provide. Much as I heartily concur with the intention behind the amendment, it would not have the effect that is sought.
Lord Purvis of Tweed
I just want to make a point about the ability to have the regulations on the Swiss agreement. The Government are not using the likely regulatory powers under this Bill to ratify the Swiss agreement, so I do not think that the noble Lord is accurate on that point. They are using the CRaG process, not this Bill.
Lord Lansley
My noble friend the Minister may know what their intentions are but, as I understand it, in a number of instances—and I think the Swiss are among them—they will use what are effectively not just bilateral agreements with the Swiss but the opportunity to roll over the EU-Swiss agreements into UK-Swiss agreements, and the power here is available for that purpose.
Lord Mackay of Clashfern
My Lords, it is also worth pointing out that, in the event of an accidental no deal—which I hope will not happen—the amendment moved by the noble Lord, Lord Hain, this afternoon would be relevant as well.
Baroness Fairhead
I thank the noble Lords, Lord Stevenson of Balmacara and Lord Kerr of Kinlochard. I am particularly delighted to be at the Dispatch Box to answer the inaugural commencement amendment from the noble Lord, Lord Stevenson.
We have had extensive debates on the Trade Bill, during which I believe all sides have acknowledged the importance of its provisions. I do not believe that this House disagrees with the underlying principles of the Bill. As my noble friend Lord Lansley pointed out, it is not just for a no-deal situation; it is to cover whatever the outcome of the negotiations with the EU might be. I hope and trust that your Lordships will acknowledge the need for any responsible Government to bring forward these provisions.
The Trade Bill covers four important areas for consumers and businesses. This House has debated them and is well rehearsed in them, and I do not propose to repeat the key ones in detail here today. The fundamental point which I hope your Lordships will consider carefully is that, if we do not enact this Bill in a timely fashion, that will have a direct and adverse impact not just on consumers but on businesses.
I am very aware that there are activities elsewhere at this hour that might have a bearing on this debate, but I remind noble Lords of the comment of my noble friend Lord Lansley that, if passed, this amendment could have very serious consequences for the UK. If a vote is passed in the other place ruling out no deal but no Motion is approved in favour of a withdrawal agreement, the default position at law is that the UK will leave the EU at 11 pm on 29 March. As a number of your Lordships have said, it would be an accidental no deal; it is not what the Government want, which is to have a deal. However, if that happens, the effect of the amendment would be to prevent the commencement of the substantive provisions of this Bill, and I do not believe that that is the intention of the noble Lords who are proposing it. Nevertheless, that is what would happen. The UK would leave the EU without a deal and without any of the protections offered by the Bill. I do not believe that anyone wants to see that.
The noble Lord, Lord Kerr, commented that the amendment would rule out an accidental no deal. We do not believe that it would; it would merely have the unintended consequence that, if there were to be an accidental no deal, the provisions would be prevented from coming into force. If the other place voted tonight in favour of no deal, the requirements in paragraph (b) proposed in the amendment would have been met. This would mean that the precondition for commencement would be satisfied, so the amendment would be rendered redundant by events.
Furthermore, as far as I am aware, no business groups or other representative organisations have indicated support for the amendment. In fact, many support the need to enact these provisions. For example, the CBI has stated that it remains,
“strongly supportive of the initiative to set up a Trade Remedies Authority”.
Similarly, the British Ceramic Confederation has stated:
“It is clear that we need a TRA, and it is certainly welcome that the Bill establishes one”.
We have heard cross-party support for continuity in both Houses of Parliament, and the International Trade Select Committee also confirmed that it struggled to find a witness who would speak against it.
I acknowledge, and understand, that passions and views are strongly held about whether this country should remain a member of the EU or leave. However, this should not distract from the core role of Parliament and of your Lordships’ House to ensure the best for this country’s people and businesses. No matter how strongly your Lordships feel about these issues, ultimately it must be a matter for the elected representatives in the other place to make a decision about the steps this country takes at this important moment in our nation’s history. This should not distract us from this Bill’s content, the importance of these provisions and the desire of consumers and businesses to see these vital provisions enacted.
During scrutiny of this Bill, the House has shown itself at its best, holding the Government to account and working with the Government to improve the legislation. However, for the reasons I have stated, we do not feel that there is a call for this amendment. I would therefore hope that the noble Lord, Lord Stevenson, feels able to withdraw instead of pressing to a vote.
Lord Stevenson of Balmacara
I am grateful to the Minister for responding as she has done. I pay tribute to her and her team for the considerable work they have done in trying to make sure that we get through this Bill and try to iron out the differences between us.
I think we will disagree on this. I have received information that the other place has voted 312 to 308 against a no-deal exit. We at least have that information in our hand as we think further about how this amendment might play out.
In response to the noble Lord, Lord Lansley, for whom I have a great respect and whose knowledge and experience have been very useful to the Committee and have informed our debates throughout the process of this Bill, we have already joined the GPA. That has gone through. The regulation-making power in the Bill is to make regulations about future changes in the GPA, not about the GPA itself. I disagree with him that we need this at this time. It may be necessary in future, but there may be other opportunities.
As has already been said, most of the establishing framework for the TRA is in another Bill already in place. As the Minister said, the Government have already introduced the regulations that give effect to the powers necessary for that to operate effectively. They are already through the House. The actual power in this Bill is not necessary. Many of its powers are not. They were appropriate earlier but not so now. I do not think we are talking about the substance of this. In some senses, this is a bit of a wake-up call to the Government, as well as a broader message to the wider community. On that basis, I would like to test the opinion of the House.
“COMMITTEE ON TRADE AGREEMENTSRecommendation in relation to ratification1_ The report under section (Parliamentary approval of trade agreements)(6) must include—(a) an account of the Committee’s consultation with—(i) each devolved authority,(ii) public bodies, businesses, consumer groups, trade unions and non-governmental organisations which, in the opinion of the Committee, have a relevant interest,(iii) the public, and(iv) equivalent bodies in the other signatory states;(b) an assessment of the qualitative and quantitative impact of the proposed trade agreement on—(i) the economy, broken down by the different parts of the United Kingdom and different regions of England,(ii) the environment,(iii) human rights standards,(iv) labour standards,(v) individuals with protected characteristics under section 4 of the Equalities Act 2010,in the United Kingdom;(c) an assessment of the qualitative and quantitative impact of the proposed trade agreement on—(i) the economy,(ii) the environment,(iii) human rights standards,(iv) labour standards,(v) individuals with protected characteristics under section 4 of the Equalities Act 2010,in any other state which is a proposed signatory to the agreement.2_ The report under subsection (6) of section (Parliamentary approval of trade agreements) must include an assessment of the extent to which the provisions of the proposed agreement conflict with, or are consistent with—(a) the provisions of international treaties ratified by the United Kingdom;(b) the provisions of the Sustainable Development Goals adopted by the United Nations General Assembly on 25 September 2015; (c) the provisions of the United Nations Guiding Principles on Business and Human Rights;(d) domestic human rights law;(e) international human rights law and international humanitarian law;(f) the United Kingdom’s obligations on workers’ rights and labour standards as established by the United Kingdom’s commitments under the International Labour Organisation’s fundamental conventions including but not limited to the Declaration on Fundamental Rights at Work;(g) obligations relating to animal sentience by which the United Kingdom is bound, or any principles relating to animal sentience to which the United Kingdom adheres, and any provision in domestic law (including retained EU law) relating to animal welfare standards and the welfare of animals in the production of food and the wider supply chain practice;(h) the principle of eliminating poverty;(i) the United Kingdom’s environmental obligations in international law;(j) the offences in section 1 of the Modern Slavery Act 2015 (slavery, servitude and forced or compulsory labour);(k) the sovereignty of Parliament;(l) the legal authority of UK courts;(m) the rule of law;(n) the principle of equality before the law.”
Baroness Fairhead
Baroness Fairhead
Lord Lansley
Lord Lansley
My Lords, it is a pleasure to be the back-marker on Report. Amendment 59 inserts text into the schedule that sets up the process for appointments to the Trade Remedies Authority, so that the chair can be appointed by the Secretary of State,
“following a report from the International Trade Committee of the House of Commons”.
In effect, this includes the chair of the Trade Remedies Authority in the list of appointments that are subject to pre-appointment scrutiny.
I do not do this lightly. There are about 1,000 senior public appointments, only 50 of which are subject to pre-appointment hearings by Select Committees. The Cabinet Office guidance on this was amended then reissued in January. Paragraph 8 sets out three criteria, the first of which says that such appointments should be for,
“posts which play a key role in regulation of actions by Government”.
This clearly must be satisfied as it determines one of the essential roles of the Department for International Trade in investigating and recommending trade remedies. Secondly, the appointments must be,
“posts which play a key role in protecting and safeguarding the public’s rights and interests in relation to the actions and decisions of Government”.
This instance may not be about the public, but certainly it ticks the box for the business community, which would regard the TRA as one of the most important bodies impacting on its interests in relation to the actions of the Government. Thirdly, the guidance says that appointments subject to pre-appointment hearings must be,
“posts in organisations that have a major impact on public life or the lives of the public where it is vital for the reputation and credibility of that organisation that the post holder acts, and is seen to act, independently of Ministers and the Government”.
Noble Lords will recall that, at a much earlier stage, we debated whether this body should be independent. The Government, having looked around the world, decided that the Trade Remedies Authority should be independent, and seen to be independent. We have three ticks in the box. This is clearly an important appointment; for the Department for International Trade, it must be regarded as the most important appointment. I do not know of any other posts that it is presently asked to scrutinise prior to appointment. This seems a perfectly reasonable way to proceed; nor does it constrain Ministers too far, as we have discovered. Ministers have to consult and liaise with Select Committees, respond to them and take account of what they have said, but they do not have to do what a Select Committee says and in quite a number of instances have not done so. Ministers can still make the appointments that they consider to be the right ones. I do not feel that I am holding the Government back from doing what they need to do. I am just encouraging them to include this appointment in that list. I beg to move.
Lord Stevenson of Balmacara
I support the noble Lord, Lord Lansley, and congratulate him on the succinctness with which he has made his point. I have been confused for some time as to why the department might resist this. He has made the points exactly as I would have done. This is a key role with a public-facing responsibility and will hold the Government to account on issues of great importance. Indeed, it is the only body that the DIT will have as a marker; it behoves the department to raise the TRA to the appropriate level so that it is seen to have the importance that the department claims for it. For these reasons, it is absolutely right that we have an established routine that the person selected by the Minister to be the chair of this body—we are not expecting the same to happen for the chief executive or more junior staff, just the chair—should be seen by the International Trade Committee. As he says, it is a courtesy in some senses because the Minister can still appoint should they wish to do so. I support the amendment.
Baroness Brown of Cambridge
My Lords, Amendment 60 is in my name and those of my noble friend Lord Kinnoull and the noble Baroness, Lady McIntosh of Pickering. I also support Amendment 59.
The UK needs a strong and independent Trade Remedies Authority with a balanced membership to investigate alleged dumping and subsidy cases and to recommend remedies. Schedule 4 to the Trade Bill defines the membership of the TRA and its governance. As I have said before, and as the noble Lord, Lord Lansley, emphasised in moving Amendment 59, while both Clause 10 and Schedule 4 make the independence of the TRA a clear objective, this does not sit entirely comfortably with the chair and the non-executives being appointed entirely at the discretion of the Secretary of State.
The governance model of the Office for Students in the Higher Education and Research Act 2017 seems to offer a good model for delivering both independence and balance, and this is the model that has been used in drafting this updated amendment. It would require the Secretary of State to have regard to the desirability of members having between them experience in a number of relevant areas, including UK manufacturing, trade unions, consumers, regional economic growth, regulatory systems and international trade disputes.
The Government have suggested that the TRA should be managed by trade remedies experts rather than by stakeholders with vested interests, in order to be independent. However, the chief executive designate has already told a Commons Select Committee that she is not a trade remedies expert. A properly balanced group of non-executive stakeholders, supported by expert executives, could be effective, independent and balanced. I look forward to hearing from the Minister how the Government will ensure the combination of independence and balanced and relevant expertise that this important body requires.
The Earl of Kinnoull
My Lords, Amendment 60 is also in my name. I too have problems with the TRA as currently constituted, in that arguably it lacks independence and balance. It is in looking for independence and balance that the amendment has evolved. Amendment 59 very much deals with the independence point, and on that basis I strongly support it.
In Committee, I said that independence is important, because the TRA needs to be seen to be not a mere cipher for the British state but something which has its own life. There is a problem when one looks at Schedule 4 and sees that the chair is appointed by the Secretary of State, as are all the non-executive directors. The Secretary of State gets the chance to approve the CEO. The non-executive directors will always be in the majority and the Secretary of State has the power to remove them. On top of that, paragraph 34 of Schedule 4, entitled “Guidance”, says that the TRA must have regard to the Secretary of State’s guidance, which seems to me to mean instructions. It seems to be wrongly titled. Therefore, I worry that the independence bit of my beef is not coped with sufficiently. I look forward to hearing something from the Minister to assuage my concerns.
Balance is incredibly important. This cannot be an effective body if there is no balance—balance of experience and background. The point is obvious. Nowhere in Schedule 4 do I see anything that gives rise to a feeling that there would be balance, but I look forward to being corrected on that point.
Baroness Neville-Rolfe (Con)
My Lords, I rise simply to say that I do not particularly agree with Amendment 60. It is necessary to have expertise in the TRA. As I said on an earlier occasion, I am not convinced that having a completely separate authority is sensible. The European Union seems to do a very good job on trade negotiations. That, as I recall from my experience as a civil servant, a Minister and a businessperson, was done in-house. I ask the Minister to pause before agreeing to these amendments without thinking about them a little further.
Baroness Fairhead
My Lords, I thank noble Lords for their continued engagement with the work to establish the Trade Remedies Authority. I trust that I am able to provide reassurance that we are taking proper steps to set up this important body in the right way.
I turn first to Amendment 59, tabled by my noble friend Lord Lansley and the noble Lord, Lord Stevenson of Balmacara. We listened carefully to the points made by them and other noble Lords in Committee about how best to ensure that the senior leadership is as independent as possible. This includes the appropriate role for the International Trade Committee. That is why I am pleased to announce that the Secretary of State is content for the International Trade Committee to conduct a pre-commencement hearing of the TRA chair. This hearing will take place after the Secretary of State has appointed the TRA chair, but before the chair has taken up their position. I further reassure the House that this offer of a pre-commencement hearing by the International Trade Committee will apply to all future TRA chairs, not just the first one. We hope that this will ensure that the ITC has the appropriate role in scrutinising any individual appointed to that position.
I turn now to Amendment 60, for which I thank the noble Baroness, Lady Brown of Cambridge, and the noble Earl, Lord Kinnoull. There are three key issues at hand that I would like to address. The first point is independence. Having had discussions with the noble Baroness and the noble Earl, I will say that independence really matters. We are committed to creating an independent TRA that all our stakeholders can trust and that will be seen as an independent body by third countries. We have taken clear steps to achieve this, including establishing it as a non-departmental public body in the first place, which is different from other organisations around the world, and giving it the appropriate separation from Ministers. We are ensuring that it has an independent board. That is why the Secretary of State will be required to follow the tried and tested Cabinet Office Governance Code on Public Appointments when appointing all non-executive TRA board members.
As this House will be aware, that code enshrines the independence of those members by explicitly stating:
“All public appointments should be governed by the principle of appointment on merit”.
TRA board members must be appointed based on their ability, not the stakeholder group or interest that they represent. The Commissioner for Public Appointments will regulate all non-executive appointments to the TRA, providing independent assurance that the Secretary of State follows the code’s strict rules on making such appointments based on merit and the public interest. While TRA non-executives may well have had experience representing certain stakeholders, we believe that that alone cannot be the reason why they are appointed. To do otherwise would jeopardise the true independence of the board, particularly as this is an investigative body.
The noble Baroness, Lady Brown, referred to the Higher Education and Research Act 2017. We do not feel that it is appropriate to draw parallels between the TRA and the Office for Students. The primary function of the Office for Students is to protect the interests of students, whereas the TRA has been set up to protect UK industry from unfair trading practices, which it will do by undertaking independent and impartial technical investigations into whether these practices have occurred. While this will ensure that manufacturers are protected against unfair trading practices, the TRA has not been set up specifically to protect the interests of those manufacturers or other groups.
The second point relates to skills and experience. I assure your Lordships that we are committed to making sure that the members are best placed to oversee this new function. That is why, when appointing the non-executive members of the TRA, the Secretary of State will have regard to ensuring that the board has the right balance of skills and range of experience. I will do more than pause, as requested by my noble friend Lady Neville-Rolfe. She has wide experience of sitting on boards in both the public and private world, and it is having that right balance and mix of skills and experiences that is most important. Moreover, this process does not happen behind closed doors. To ensure transparency, the requisite skills and experience for each non-executive appointment will be set out in individual TRA job descriptions that will be published in accordance with standard practice.
The noble Earl, Lord Kinnoull, raised a question about the TRA having regard to guidance, and we have included clear statutory restrictions on the Secretary of State’s ability to issue guidance to the TRA. That includes setting out specific circumstances in which the Secretary of State can publish guidance. For example, they cannot publish guidance in relation to a specific case. That is also why the Secretary of State must consult the TRA before publishing guidance, and explicitly have regard to its independence, impartiality and expertise.
These skills and experience requirements include, among others, strong and effective leadership, astute business awareness and an understanding of the complex domestic and international trading environment which the TRA will be operating in. However, we believe that specifying a detailed list of desired experience in statute risks restricting the Secretary of State’s ability to appoint individuals, and the chair and the board’s ability to appoint executives with other relevant experience not detailed here. It suggests that only those criteria listed in legislation are desirable, and may inadvertently displace others. That could create a problem if, in the future, a TRA non-executive was needed to fill a skills or experience gap not covered on the list.
On stakeholders, let me reassure the House that we understand the need to ensure that stakeholders’ interests are accounted for properly. We have also taken clear steps to ensure this. That is why the TRA chair’s job description, and terms and conditions, make clear that he or she will be expected to communicate with stakeholders and incorporate their perspectives into TRA board discussions where appropriate.
We specifically recognise the importance of the devolved Administrations in building the UK’s independent trade policy. That is why we have made several key commitments to ensure they, too, have an appropriate relationship with the TRA and DIT. These include sharing the TRA’s annual report with each devolved Administration, seeking suggestions for the optimal way to recruit TRA non-executives, and suggesting to the TRA chair that the board undergoes specific devolution-focused training. The Welsh Government of course have passed a supplementary legislative consent Motion in the Welsh Assembly, indicating their support for the TRA provisions in this Bill.
As we are reaching the end of Report, I will make some concluding remarks. This stage has provided us with a valuable opportunity to test and improve the detail of this important Bill. I thank your Lordships for that and look forward to Third Reading next week. Having said that, I respectfully ask the noble Lord to withdraw his amendment.
Lord Lansley
My Lords, I am most grateful to the Minister for her response to this short debate. It is fitting that we have further evidence in her response of the constructive and positive way in which Ministers have listened to the debate and sought to meet the concerns raised. That has been evident throughout our discussions.
I apologise—I should have declared an interest. I am the UK co-chair of the UK-Japan 21st Century Group, and in that context Sir David Wright, who is the chair-designate of the Trade Remedies Authority, was a member of that board and a former ambassador to Japan, so I know him. It will be evident from those who know him that the purpose of this discussion is not in any way to question his suitability for the post—far from it—but rather the process by which his successors are to be appointed in years to come. In that context I was grateful for the specific nature of the assurance my noble friend was able to give.
The difference between a pre-appointment hearing, in circumstances where the Secretary of State is minded to appoint somebody who is then seen by the Select Committee, and a pre-commencement hearing, where the Secretary of State has appointed somebody but the post has not been taken up, is a distinction without a difference in circumstances where the Secretary of State could proceed in any case. There is a benefit in such appointments being taken up by those seen by Parliament as well as by the Executive, not least having been seen positively in the context, not of trying to second-guess the Secretary of State’s choice of the right person but of understanding at the outset, before somebody takes up the post, how they propose to approach it, their suitability for the tasks, and what objectives they are looking for—what kind of outcomes they are hoping to achieve. In that respect, what my noble friend was able to say adequately and fully meets the purposes that I was raising in my amendment, so I beg leave to withdraw it.
Bahrain: Human Rights
Lord Scriven
To ask Her Majesty’s Government what assessment they have made of human rights abuses in Bahrain.
Lord Scriven (LD)
My Lords, I am pleased to move this important debate on human rights issues in Bahrain. I start by thanking noble Lords who have put their names down to speak, and the many organisations which have sent briefing notes to us, particularly the Library for its comprehensive note.
It is important to have this debate, and what has happened in Bahrain today shows us why. Today, Bahrain’s lower criminal court sentenced former opposition leader Ibrahim Sharif to six months imprisonment, and a 500 Bahraini dinar fine to suspend the execution of sentence, for tweeting criticism of Sudan’s President. Since December 2018, Sudan has been rocked by popular protests against the 30-year regime of its President. Ibrahim Sharif is the former leader of the secular opposition party in Bahrain, which was dissolved earlier this year in the crackdown against civil society in the kingdom. Ibrahim has spent time in Bahrain’s notorious Jau prison for his role in the pro-democracy protests of 2011. His only tweet was on 25 December 2018, when he said that the cities of Sudan should rise up, and called for the people of Sudan to be free.
The history of the UK and Bahrain goes back many years—this is the 200-year celebration. It is a special relationship between the peoples of Bahrain and the United Kingdom, but it is not one that should be exercised in a moral vacuum. It is not one that should turn away when human rights abuses are committed. In fact, because of our history and relationship, it is our moral, legal and political responsibility to speak up and speak out when there are human rights abuses, not just privately but publicly. Since the Arab spring, UK policy towards Bahrain shows that a gift of a £40 million naval base has been made by the King of Bahrain. UK arms sales equate to about £120 million.
We uphold human rights, law and the judicial system not just by saying that we want to do that, but by investing as British taxpayers—£6 million over the last seven years—in an opaque fund. It is there, as the Government say, to strengthen the rule of law and ensure that oversight bodies make sure that human rights are upheld. This fund is opaque and secretive. Despite requests by civil society and my Parliamentary Questions, the Government’s policy has changed on the Integrated Activity Fund. They used to say who the beneficiaries of that fund were; they are now refusing to say. I and others accept that some might be military, defence or intelligence organisations. I ask the Minister: why has the policy changed on telling the public how their money is being spent in upholding justice and strengthening the rule of law in Bahrain for organisations outside of defence and security? Back in September 2018, the Foreign Affairs Committee cited the lack of transparency over this fund.
Let us look at the rule of law and human rights in the judicial system since 2011. The noble Lord, Lord Soley, who is taking part in the debate, was a joint author of a report in 2014 that highlighted some of the issues. However, things have got worse since then. The death penalty has returned in Bahrain. In 2017 there was the execution of three men that the UN described as extrajudicial killings. There was the closing down of the last independent and free press and the jailing of journalists. In March 2018 the Interior Minister made it very clear that there would be a severe crackdown on anyone who condemned the Government online. Some 850 people have had their citizenship revoked, 304 in 2018 alone.
Human rights bodies estimate that 4,000 political prisoners have been arbitrarily arrested, denied their freedom, possibly tortured and sexually abused, and placed in custody. They have been forced to sign confessions of guilt under potential torture. In 2018, the UN Working Group on Arbitrary Detention said that there was widespread and systematic human rights abuses—not one or two, but widespread and systematic abuses—in violation of international law, and that they are a potential crime against humanity. It seems that there are abuses. We cannot stand by and say that we are turning a blind eye just because we are trying to keep stability in the region. We have a moral duty to say that enough is enough. Our friendship, our policies and our role in international law allow us to do so.
When international bodies such as the UN or Amnesty International look at the oversight bodies that we are investing taxpayers’ money in—the police, the courts and prison services—they say that there is extensive evidence that they are compliant in human rights abuses. The UN Committee Against Torture condemned the ombudsman and other oversight bodies as being neither effective nor independent. It talks about the Interior Ministry interfering, as well as parliamentary interference in these oversight bodies. Amnesty International pointed out that when cases go to those bodies, they are ignored.
That is also my own experience. I have done what the Government have asked me to do in Parliamentary Question after Parliamentary Question. They have said that people should go to the oversight bodies. I have approached those bodies about individual cases. I am still waiting for replies going back to November. There are cases of families asking those bodies for a mammogram, and action has not properly been taken six months later. The oversight bodies are not working and it is time for the Government to have an independent review. What independent review has been undertaken, or will they undertake, of these oversight bodies?
In my last three minutes, I come to three cases. Listening to us today are the families of some people who are in jail and have been imprisoned. The first is Sayed Ahmed Alwadaei, a UK-based Bahraini and human rights activist, who is listening here tonight. His family have been tortured and unlawfully convicted in Bahrain in relation to Mr Alwadaei’s human rights work here in the UK. On 30 October 2017, Mr Alwadaei’s brother-in-law, Sayed Nizar, his mother-in-law, Hajer Mansoor Hassan, and his cousin, Mahmood Marzooq, were sentenced to three years’ imprisonment following what was internationally condemned as a flawed trial. Subsequently, they have experienced human rights abuses and have been denied privileges in jail, particularly at the town prison, where its commander, Lieutenant-Colonel Albardoli, has not kept basic human rights laws and conventions by not allowing them access to their family and medical provision. What independent assessment have the Government made of this case?
There is also Ali Mushaima, the son of Hassan Mushaima, a leading human rights activist and a former Secretary-General of the Haq Movement for Liberty and Democracy. Hassan is 72 years-old and was sentenced to life imprisonment in 2011. During his detention, trial and incarceration the Bahraini authorities subjected him to severe human rights abuses and violations. Despite Questions in this House, the Government say that he should go to the independent bodies. The independent bodies say that there have been no violations. Ali sat outside the Bahraini embassy and carried out a hunger strike. Can the Minister tell him that his father’s treatment is not what he is seeing and that he is being abused? Why do the Government take the word of the oversight bodies? There are clearly human rights abuses. What assessment has been made of our policy to ensure human rights are being upheld? In particular, what independent evidence is there that the Integrated Activity Fund is improving the oversight bodies, police and prisons, and not contributing to human rights abuses in Bahrain?
Baroness Bottomley of Nettlestone (Con)
My Lords, I congratulate the noble Lord, Lord Scriven, on bringing this important matter to the House. I know he has been particularly tenacious in ensuring that these issues are followed through and addressed on several occasions.
Bahrain remains a key regional partner for the UK. As the noble Lord said, we have worked together for more than 200 years and share many interests, with an unequivocal commitment to promote peace and security in the Gulf. I respect the work of the Minister for the Middle East, who has talked about the many areas of bilateral collaboration—trade and investment, defence and security, the environment, and education. We have many Bahraini students being educated in the UK; we certainly have some very happy Bahraini students at the University of Hull, where I happen to be chancellor.
Nevertheless, there are serious human rights issues and the important issue of advancing human rights internationally, which we all support, is one that we must all give priority. The Minister is correct to identify Bahrain as a human rights priority for the Foreign and Commonwealth Office. The noble Lord, Lord Scriven, talked about political reprisals and the family of Sayed Alwadaei, who I am pleased are here today. It is worrying that the supreme court of Bahrain upheld these sentences only this year, despite the conclusions of the United Nations Arbitrary Detention Working Group, Human Rights Watch and Amnesty International. Concern has been raised about arbitrary and extrajudicial detention, and the use of torture and ill-treatment as a means of eliciting unreliable confessions.
Any declared commitment to freedom of expression is undermined by a high number of arrests and prosecutions of individuals who have criticised political figures. There has been a disquieting number of incidents where journalists, opposition politicians, lawyers and human rights activists have been subjected to travel bans. We all noted them.
But there are paradoxes and contradictions. Bahrain was the first Arab state to achieve education equality and the first country in the region to introduce public education for girls. In spite of a remaining disparity in the legal equality between Bahraini men and women, Bahrain has historically been a leader in advancing gender equality in the Middle East. It has the fastest rate of growth for women’s economic participation, and was the first Arab country to appoint female ambassadors to Britain and the USA.
The National Plan for the Advancement of Bahraini Women and the ongoing work of the Supreme Council for Women are welcome, and it would be valuable to hear from the Minister about some of the up-to-date evidence around these bodies and the role of women, in the light of anxiety that there has somehow been a deterioration in all that seemed encouraging.
We respect the cultural and moral diversity and universality of human rights and non-discrimination. They must be recognised, and people should be held to account. But we should act as a critical friend, and urge the Government of Bahrain to return to the path of progress. I look forward to the Minister’s comments. We have a long-term relationship, but there are ongoing concerns. I hope we can work with Bahrain to ensure that it gets back on the path of progress.
Lord Soley (Lab)
My Lords, this is an important but very short debate, and I greatly regret that we each have only a couple of minutes for what we need to say. I will not repeat what the noble Baroness, Lady Bottomley, has just said about the advances that have been made in Bahrain; there were not just female ambassadors to the UK, US and other countries, but ambassadors of different religious faiths, which is important.
The noble Lord, Lord Scriven, clearly feels strongly about this—quite rightly—and he has made a couple of points relating to my report. It was now four or five years ago, and perhaps this is a good time for me to consider revisiting it and looking at what has happened. I criticised Bahrain at the time for not allowing the UN special rapporteur on torture to visit, and also because we could not visit the prisons. But if you look at what Bahrain was setting up with the Bahrain Independent Commission of Inquiry following the riots, it was way ahead of most other countries in the region. If you were to ask me which country in the Middle East I would like to live in, if I had to do so, I would probably choose Bahrain as one of the best. That does not mean, as the ambassador said this to me the other day, that all is perfect—it certainly is not. But the noble Lord, Lord Scriven, is missing something profoundly important—the situation of Bahrain in this incredibly unstable region. Bahrain is just a mile or two down a causeway from Saudi Arabia, a Sunni power, which is in conflict with Iran, just across the water from Bahrain, which is a Shia power.
The book given to me recently by the Al Wefaq party, which left the Parliament of its own will—we criticised it for that; it need not have left and it would have been better if it had stayed and stood for election—is expensively produced. I have no problem with that, although it would be good to know how it was financed, because, as the noble Lord has said, there are questions about other finances. Indeed, there are questions about the financing of Al Wefaq. A gentleman resident in Britain whom I see on a number of occasions, Mr Ali Alaswad, is a strong supporter of and a former Member of Parliament for the Al Wefaq group. He emphasises that if it started supporting violence, he would no longer support it. I understand that. But he also understood the point I am making about the impossible position of Bahrain between two competing regional superpowers—one Shia, one Sunni.
The book is produced by Al Wefaq and written by Sheikh Ali Salman, who is currently in prison. It starts off by explaining the Shia history of Bahrain. The Shia population is the majority; the Sunni population is the minority. When I asked the King there four or five years ago how he felt about that, he said quite passionately, “I am a Muslim first, not a Shia or a Sunni”. I understand that, but religion, like other ideologies, is always subject to splits. Those splits can be violent, and often are. We need to understand that Bahrain does not want to be in the position of Yemen, which is already part of the conflict between Iran and Saudi Arabia.
I say to the noble Lord by all means keep questioning this, but put it in the round. What would he do if he were a minority community of Sunnis looking across the water to Iran and wondering what will happen to them if it takes over? This cannot be ignored. It is part of the strategic geopolitics of the region.
Baroness Barran (Con)
I remind noble Lords that when the clock gets to three minutes, that is three minutes completed.
Baroness Stern (CB)
My Lords, I too congratulate the noble Lord, Lord Scriven, on securing this very important debate and on his powerful contribution. I declare my interest as an officer of the All-Party Parliamentary Group on Human Rights.
Following the recommendations of the 2011 Bahrain Independent Commission of Inquiry report, a number of mechanisms were put in place by the Bahraini Government to demonstrate their support for international human rights. For many of those involved, this was a very encouraging and exciting time. They set up the National Institute for Human Rights, the Ministry of Interior Ombudsman and the Prisoners and Detainees Rights Commission. These bodies are doing some positive work. The All-Party Parliamentary Group on Human Rights has had much positive contact with the ombudsman, and we are currently in correspondence with him about failures in detainee treatment—particularly on inadequate provision of healthcare.
However, welcome as these developments are, the existence of these mechanisms cannot disguise the Bahraini Government’s obvious lack of political will for the more substantive political, institutional and legal reforms needed to ensure that Bahraini citizens enjoy their fundamental rights and that human rights defenders and members of the political opposition are no longer persecuted.
The FCO has been funding human rights institutions in Bahrain for a number of years. During that time, the level of criticism of Bahrain for human rights violations has increased. There has been criticism from the United Nations Human Rights Council and Dr Agnes Callemard, the UN special rapporteur on extrajudicial killings, who described the 2017 executions of three people in Bahrain as “extrajudicial executions”. A number of respected NGOs have been very critical, as have many UK parliamentarians.
This raises difficult questions that need answering about the role of the FCO in Bahrain. I therefore ask the Minister, whose commitment to human rights is beyond doubt, whether the FCO has recently reassessed whether its continuing financial support for human rights work in Bahrain is appropriate. The noble Lord, Lord Scriven, said there should be an independent review. Will the Minister consider that, and, bearing in mind the fact that the abuses of human rights in Bahrain would most likely trigger further radicalisation, polarisation and conflict in what the noble Lord, Lord Soley, has already explained is a difficult arena in which to work, does she agree?
The FCO is valued throughout the world for the support UK diplomats give to human rights NGOs and activists. Is the Minister satisfied that human rights activists in Bahrain are well supported by our diplomats there?
Lord Astor of Hever (Con)
My Lords, my interest in Bahrain is as vice-chair of CMEC, and goes back to when I was a Defence Minister and had some responsibility for defence co-operation between our two countries. We have vital national security and economic interests in maintaining and developing our relationship with Bahrain. I was involved in the early stages of setting up our strategically vital naval support facilities there.
In an uncertain world, Bahrain is a loyal and important ally. As my noble friend said, it has been a staunch supporter of the UK for over 200 years. We need to keep criticism of Bahrain in perspective, and be mindful of the regional and security context. Bahrain’s scope for progressive political development is limited by the need to keep in step with its GCC neighbours, a point very well made by the noble Lord, Lord Soley.
Bahrain is a tolerant society. There are historic tensions deriving from a large Shia population, but the great majority of Shia live happily there, and many have senior positions in government. They strongly oppose the actions of a very small violent minority.
It is the leading country in the Gulf region in terms of political development, education for all, freedom of religion, employment law and the emancipation of women. It is one of only two GCC states with a freely elected Parliament, the current Speaker of which is a woman. My noble friend mentioned the two women who were ambassadors to the UK and the USA, one a Christian and the other Jewish. The capital, Manama, is a religiously diverse city, housing Sunni, Shia, Christian, Jewish and Hindu places of worship. The Council of Ministers regularly has at least one, and often several, female Ministers. Bahrain’s appointed Upper House of Parliament always includes at least one member of Bahrain’s Jewish and Christian communities—currently, both female—and someone with a registered disability.
Bahrain has made progress with its human rights reforms. As part of British broader assistance to Bahraini reform, the United Kingdom has been working with Bahrain’s independent human rights oversight bodies since their creation, the first in the region, following recommendations in 2012 from the Bahrain Independent Commission of Inquiry. Our work has supported the building of effective institutions which hold the Bahraini Government to account. They have demonstrated their abilities, including through the prosecution of more than 80 police officers accused of human rights abuses.
Of course, there is always more that can be done, and I think that the Bahraini Government recognise this. But let us not lose sight of the fact that there is genuine, effective progress in a region where change is often hard to come by.
Lord Hussain (LD)
My Lords, I, too, thank the noble Lord, Lord Scriven, for securing this debate. I have never visited Bahrain, but I believe it is a modern, moderate Arab country, a close ally of the United Kingdom. It has an open and tolerant society that respects all religions and cultures. It is striving for gender balance, women’s empowerment and workers’ rights.
If we look at religious freedom in Bahrain, I believe that the capital, Manama, is one of the most religiously diverse cities in the GCC, with places of worship of Sunni, Shia, Christian, Jewish, Sikh and Hindu faith across the city. Bahrain also has a history of appointing non-Muslim ambassadors, both Christians and Jews, for example to the UK and the USA, as was mentioned earlier.
Bahrain was the first country in the region to introduce public education for girls, in the 1920s, and was the first Arab state to achieve education equality as part of the UNESCO 2010 education for all development index. According to Bahrain’s government statistics, women make up over 49% of public sector employees and hold over 50% of managerial positions. I believe that Bahrain was ranked in tier 1 by the US State Department in 2018 for its efforts to counter human trafficking. Bahrain has gone through significant reforms to the sponsorship system, through the flexible work permit, which enables work without a sponsor.
However, I am aware of some of the reports, made by some credible international organisations, of violations of human rights in the country. No excuse can be accepted for violation of human rights. Keeping in mind the country’s demographics and surrounding political and religious environment, including Iranian and Saudi influences, I suggest that, as a friend of Bahrain, the United Kingdom should help Bahrain to improve its level of tolerance and understanding of diverse political and religious views, instead of taking harsh measures that amount to violations of human rights, and to have a free and fair justice system that meets international standards.
Lord McInnes of Kilwinning (Con)
My Lords, I would like to begin by thanking the noble Lord, Lord Scriven, for bringing this important debate before your Lordships’ House. In so doing, the noble Lord brings before us what is a very prescient example of the delicate balance required between the UK using influence to improve human rights, while at the same time being aware that if influence is to be successfully brought it must be as a critical friend.
In Bahrain, there are clearly significant obstacles and obstructions to freedom of assembly and freedom of movement as we would understand them. Protests remain banned in the capital, Manama, and over 90 Bahrainis are banned from travelling abroad without judicial warrant. At the same time, there are accusations of impunity for those who acted outside the law in 2011. As with many noble Lords, I am concerned that since April 2017 the judicial system has been amended to allow the military courts to try civilians—surely a retrograde step.
However, in assessing all these deficiencies, I am sure that the Government will take cognisance of the real instability and interference that the kingdom faces, especially from Iran. Bahrain is of course led by a Sunni Government, but, as we have heard, especially from the noble Lord, Lord Soley, has a majority Shia population. The UK Government have a role to assess any sectarian discrimination but also to help build community cohesion within Bahrain.
Bahrain is an important strategic partner of the United Kingdom but is a small, relatively new state with a fragile religious demography in what can only be best described a very tough neighbourhood. That context must be remembered when seeking to support Bahrain to improve human rights; and, as we heard from the noble Lord, Lord Soley, there are positives in Bahrain that do not exist in similar Gulf states. Bahrain has one of the best records in the Gulf for religious diversity, as well as for more liberal positions on women’s rights and an exemplary record on human trafficking. There are also four pillars of scrutiny: the Ombudsman, the Prisoners & Detainees Rights Commission, the Special Investigations Unit and the National Institution for Human Rights. The United Kingdom has an important role in supporting and building capacity in all those oversight bodies, to ensure that they are fully functioning.
I do find it a spurious argument to say that, by providing good practice support to our friend and ally, the British Government are in some way condoning or financially supporting human rights abuses. I look forward to hearing the Minister’s response to the efficacy of the oversight organisations within Bahrain and how the Government intend to remain a critical and effective friend for Bahrain.
Lord Luce (CB)
My Lords, the noble Lord, Lord Scriven, was right to put this important debate into a wider context of the very long-standing friendship between the people of this country and the people of Bahrain. If we consider the very significant points made by the noble Lord, Lord Soley, that the region in which the Bahrainis live is sandwiched between Iran on one side and Saudi Arabia on the other, with rivalry between two important regional powers, added to which are the Sunni/Shia tensions, then of course we see that Bahrain is living in difficult circumstances. If I may, I will strongly add to that: Bahrain is living in the shadow of Saudi Arabia, where we have a Crown Prince who is ambitious to reform the economy but is using repressive measures in order to try to achieve it. That has repercussions for Bahrain. I believe that our interests are very strongly in the direction of evolving constitutional monarchies in the Gulf countries and, above all, in Bahrain, if we want stability there—as we do.
The noble Baroness, Lady Bottomley, was right to point out that there have been considerable achievements in Bahrain over the last few decades, for example on women’s rights and on freedom of religion. That in itself is striking. I want to focus, though, on one thing. Following the Arab spring of 2011, the King and the Crown Prince were bold enough to establish the Independent Commission of Inquiry, led by Mr Bassiouni, a distinguished lawyer from Egypt. Would any Government in this country set up a completely independent commission to advise us how to run our affairs? I doubt that. It was a bold decision. The commission made important recommendations, to which I think the noble Baroness, Lady Stern, referred. Those recommendations were to set up oversight bodies, which have been established. We have mentioned the National Institution for Human Rights, the Ombudsman and so on; that was important.
The problem and the worry is that, over the past two or three years, there has been a deterioration in standards of human rights in Bahrain. That is damaging both to Bahrain and to our interests and friendship with the country. The question I have for the Minister is this: what is the Government’s assessment of the progress of the recommendations made by the independent commission? How many of the recommendations have been implemented, and how transparent and effective are they? It would be helpful to know from the Government what their assessment is.
The UK’s relationship with Bahrain is singularly important. We have a base there which helps to protect the country, and we give technical assistance on human rights issues. We are therefore entitled to have a free expression of views between each other as to how we can help Bahrain to achieve greater stability. I hope that the Minister will summarise what we are doing to help them in that progress.
Baroness Morris of Bolton (Con)
My Lords, I thank the noble Lord, Lord Scriven, for initiating this debate. Human rights, wherever they may be, are dear to us all, for we can enjoy our rights only if we have respect for the rights of others. I declare a couple of interests in that I am the chairman of the Centre for Islamic Finance at the University of Bolton where we run a joint masters degree with the Bahrain Institute of Banking and Finance. I was also the chairman and am now the vice-president of the Conservative Middle East Council, where I first came to know Bahrain, to meet members of the Government and of the opposition, and to make many friends. It is in that spirit of friendship that I speak this evening.
The violence that rocked the Middle East during the Arab spring left its scars on Bahrain. It is a small country where it was never an issue if you were Sunni or Shia or, for that matter, Jewish, Christian or Hindu. It was suddenly thrown into turbulence during the 2011 uprisings. The ensuing troubles were a cause of sadness and deep concern to a country which had long embraced democracy, where women had been given the vote in 1950 and where men and women, Sunni and Shia, were free to stand in all elections, and where significant reforms including human rights were already taking form under the office of the Crown Prince.
The Crown Prince responded to these events by opening up a dialogue with all who chose to participate and the Government initiated a commission of inquiry. As the noble Lord, Lord Luce, has just said, that was a bold decision. It was to explain both of these initiatives that, in 2012, I first met a delegation from the Shura Council and realised the determination of Bahrain to learn from what had happened and to put in place systems with strong and independent oversight. These initiatives led to reforms and, in the intervening years, I have had the pleasure of meeting the Ombudsman for the Ministry of Interior with responsibility for prisons, and members of the National Institution for Human Rights. That is an independent body with a wide-ranging mandate to protect human rights. I was impressed by the quality of the people I met, and in particular by their sincerity and determination to do the right thing. There have been a number of prosecutions of officials for human rights abuses. I hope that they will read the debate today and look to see what they might do in the future to allay some of the fears that have been raised.
I know that, for some, the pace of change and reform across the Middle East as a whole is not fast enough, but too often these countries, who are our good and old friends, are not given due credit for the changes they have effected and for the long-standing rights they do afford their citizens. I often think that that is because our Arab friends are too reticent to blow their own trumpet. Nor, as the noble Lord, Lord Soley, explained so eloquently, do we take enough account of the difficult political tensions in the region.
My noble friend Lord Astor asked if there is more to do in Bahrain. Of course there is, just as there is more to do in nearly every corner of the world. But a country that has set up the organisations I have already mentioned, that has the fastest growth rate internationally for the economic participation of women, that has gone to considerable efforts to counter human trafficking and that protects workers’ rights with strong and effective trades unions cannot be doing it all wrong. I commend our Government and the Government of Bahrain for their continuing work to ensure the best rights and protections for all who live and work in the kingdom.
Baroness Northover (LD)
My Lords, I too thank my noble friend for introducing this debate. It is almost as if we are debating two different countries: which one is Bahrain? Although Bahrain is a constitutional monarchy with an elected national assembly, political power ultimately rests with the ruling family. As we have heard, tensions between the majority Shiites and the ruling minority Sunnis with their greater political and economic power exists in Bahrain.
As we have heard, in 2011 as part of the Arab spring, more than 100,000 people engaged in peaceful protest. They were brutally repressed with the help of Saudi troops. A crackdown on political opposition and freedom of expression has followed. The Bahrain Independent Commission of Inquiry, to which other noble Lords referred, was established by the Bahraini Government to investigate. It made 26 recommendations which the Government then said they had implemented. Although it is right to welcome that, human rights groups have criticised the recommendations as weak and said that even these have not been fully carried through. The last independent newspaper was suspended in 2017. All political opposition groups have been dissolved. Political parties are not permitted. Public protests are banned in the capital. Recent parliamentary elections were not considered free and fair. I hope that we do not hear, after this debate, about any action against those who are attending it or their friends and families.
Since 2006 Bahrain has had a draconian anti-terror law. It is used to justify the detention of many anti-Government activists. Confessions are obtained under torture. Freedom of assembly and association can be defined as terrorist. Minors have been arrested under the Act. In 2013 amendments were made to the law, including the revocation of citizenship. More than 800 Bahrainis, including journalists and politicians, have had their citizenship revoked since 2012, leaving most of them stateless. Bahrain will not admit organisations such as Amnesty International and Human Rights Watch, or the UN Special Rapporteur on Torture. A 2017 constitutional amendment allowed military trials for civilians who are deemed to be a threat to Bahrain’s “independence, sovereignty and security”. There has been an increase in the use of the death penalty.
The FCO listed Bahrain as a human rights priority country in 2018. The UK has contributed £5 million to support reform, but human rights groups such as Reprieve have accused the Government of not being sufficiently transparent or effective. I recognise the difficulty in this area. We provide training for Bahrain’s armed forces. We have a naval base. Against this background of increasing human rights abuses, we are increasing arms sales. None of this is likely to lead to stability.
Lord Collins of Highbury (Lab)
My Lords, I too thank the noble Lord for initiating this debate. Alistair Burt said at the end of last year that, in considering the differing opinions about Bahrain, there are elements of truth on both sides. Compared to most of its close neighbours, women have greater freedom, as we have heard; there is greater freedom of worship; and human rights are a good deal better.
The Government argue that a strong partnership is based on mutual interest, shared threats and a desire to promote greater security and peace in the Gulf, exemplified, as the noble Lord said, by the UK naval support facility. Alistair Burt suggests that this strong partnership means that we can express our concerns about human rights in a frank and open way—publicly, but more often in private. There is no doubt that there is merit in the engagement approach; working with international partners and civil society organisations to promote and defend universal freedoms and to bring about positive change. But how are the Government measuring the success of engagement in achieving positive change?
Freedom House suggests that Bahrain is more oppressive and less free than it was six years ago. As reported in the Guardian, last November’s general elections were considered to be a sham, prohibiting members of opposition groups from running. Reprisals targeting protesters, journalists and human rights defenders have become commonplace. As we have heard, the only independent newspaper was forcibly closed in 2017. There is currently an estimate of 4,000 political prisoners.
What is the Government’s view on the situation of human rights defenders in Bahrain? What assessment has been conducted about our investment? On what basis does the FCO deem that the oversight bodies in Bahrain are independent, effective and capable of conducting swift and thorough investigations?
Finally, as we have heard, executions resumed in January 2017. Will the United Kingdom publicly call on the Bahraini Government to abolish the death penalty?
Baroness Goldie (Con)
My Lords, I thank the noble Lord, Lord Scriven, for securing this debate and all noble Lords who have contributed. It was interesting that a number of your Lordships referred to the nature of the relationship between the United Kingdom and Bahrain. Of course, Bahrain is a key partner of the UK: we co-operate on defence, security, trade and regional issues. As a number of your Lordships observed, our new UK naval support facilities provide the first permanent UK naval presence east of Suez since 1971 and support joint counterterrorism, counterpiracy and maritime security operations. This relationship benefits UK prosperity. As of September last year, total trade in goods and services had increased by almost 65% compared to the previous 12 months.
Naturally, many of your Lordships focused on human rights. As the British Government have made clear and Bahrain has acknowledged, further work remains to be done in this area. The Foreign and Commonwealth Office continues to flag Bahrain as a human rights priority country. The noble Baroness, Lady Stern, acknowledged that progress has been made, but she rightly flagged up concerns. She noted that the FCO is strongly committed to supporting human rights around the world. I reassure her and other Members of this House that we keep all programme work under regular review. We continue to believe that our support for Bahrain’s ambitious reform initiatives is the best way to support progress.
We have consistently raised issues of concern to us with the Government of Bahrain. The noble Lord, Lord Collins, specifically referred to the death penalty. Your Lordships will be aware that the United Kingdom deplores the use of the death penalty anywhere in the world. We condemn that, and quite rightly your Lordships take the same view.
We remain committed to promoting and defending universal freedoms and human rights at home and abroad. The strength of our relationship with Bahrain means that we can and do express our concerns frankly, openly, regularly and at senior levels. While we do comment publicly, more often the detail and depth of our engagement take place behind the scenes. Our assessment is that the best way to influence change is through private engagement, dialogue and co-operation. My noble friend Lord McInnes spoke with wisdom on that approach and rightly pointed out that there is a need to strike the important balance.
If your Lordships are interested in the Foreign and Commonwealth Office human rights and democracy report, it was published last October and outlines action that we have taken. The Government of Bahrain readily acknowledge that there is more that they can do. They have undertaken reforms and addressed issues, often with UK assistance.
In response to the noble Lord, Lord Luce, I say that we provide technical assistance to Bahrain in order to influence and support change. All training provided is in line with international standards and fully complies with our domestic and international human rights obligations. We believe that technical reform assistance makes a major contribution to the strength of our bilateral relationship. We are committed to supporting Bahrain-led reform and are confident of its positive impact for people in Bahrain across a variety of areas, including judicial reform, youth engagement and empowerment, civil society, combating modern slavery and supporting human rights oversight bodies.
A number of your Lordships referred to these important oversight bodies, which hold state institutions to account. They include the National Institute for Human Rights, the Ministry of Interior Ombudsman, the Special Investigations Unit, and the Prisoners and Detainees Rights Commission. Some of your Lordships suggested that they fail in their fundamental duties. I do not accept that. We believe that they are effective in addressing allegations of torture and mistreatment in detention.
That has been demonstrated through the prosecution of police officers accused of human rights abuses, to which my noble friend Lord Astor referred. A Special Investigations Unit investigation directly resulted in the retrial of Mohammed Ramadan and Hussain Moosa, who were originally sentenced to death in 2014. The Ministry of Interior Ombudsman has investigated serious cases, including deaths in custody. As the first such organisations established in the region, they have more to do, but the UK continues to work with them to encourage development of their skills and capacity.
It is important to acknowledge areas where Bahrain’s human rights approach aligns with our own. I will highlight three of them. First, Bahrain is a regional leader in combating the exploitation of migrant workers. The Bahraini Government have increased transparency and introduced a victim-centred approach. I think it was the noble Lord, Lord Hussain, who referred to Bahrain’s important achievement in attaining tier 1 status in the US State Department’s annual report, Trafficking in Persons, meaning that it meets its minimum standards for the elimination of trafficking. Importantly, Bahrain is the first Gulf country to do so.
Secondly, as my noble friend Lady Bottomley observed, Bahrain plays a leading role in the region in protecting and safeguarding women’s rights. Women’s organisations are active in Bahrain and freely run campaigns calling for equality, especially on citizenship rights.
Finally, freedom of religion is guaranteed by the Bahraini constitution. Bahrain is home to churches, a synagogue and the region’s oldest Hindu temple. Members of all religions co-exist and contribute to society. My noble friend Lady Morris is right that we should acknowledge these achievements. These developments are positive and we should welcome them.
A number of noble Lords raised specific points. I am pushed for time, but I will see whether I can deal with some of them. The noble Lord, Lord Scriven, raised the case of Ibrahim Sharif. We are aware of it; UK officials attended the trial. We understand that Mr Sharif’s lawyer will appeal through the courts. We urge the court to protect freedom of expression for all citizens.
The noble Lord, Lord Scriven, and the noble Baroness, Lady Northover, mentioned the Integrated Activity Fund. All reform assistance goes through a rigorous and comprehensive assessment process to ensure compliance with our domestic and international human rights obligations. I should make it clear that, as many projects and programme activities deliver access across the whole region, it is not possible to provide a breakdown according to each beneficiary state, including Bahrain.
Lord Scriven
That is exactly what happened up until two years ago. Why did the policy change? The Government could do that until two years ago—indeed, they did.
Baroness Goldie
I will investigate further. If I elicit any more information, I will certainly communicate with the noble Lord. He also asked about Mr Alwadaei’s family members. We have raised their case with senior levels of the Bahraini Government.
The noble Lords, Lord Soley and Lord Luce, and my noble friend Lady Morris referred to the Bahrain Independent Commission of Inquiry, which was an important development. The Government of Bahrain have made significant strides in implementing the wide range of reforms it recommended, and that reform continues under their ambitious action plan.
The noble Lord, Lord Collins, raised the matter of keeping our engagement under regular review. While we continue to believe that our partnership is effective, our embassy in Manama monitors and assesses the situation on the ground. We are certainly anxious to ensure that the help we provide is delivering results on the ground, where that help is intended to provide improvement.
I have run out of time, for which I apologise. I will look at Hansard and undertake to write to your Lordships on any contributions which I have been unable to acknowledge or respond to.
Agreement Establishing an Economic Partnership Agreement between the Eastern and Southern Africa States and the United Kingdom of Great Britain and Northern Ireland
(5 years, 1 month ago)
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Lord Purvis of Tweed
To resolve that this House calls upon Her Majesty’s Government, in accordance with section 21 of the Constitutional Reform and Governance Act 2010, to extend the scrutiny period for the Agreement establishing an Economic Partnership Agreement between the Eastern and Southern Africa States and the United Kingdom of Great Britain and Northern Ireland (CP31), laid before the House on 6 February, by 21 sitting days.
Relevant document: 31st Report from the European Union Committee
Lord Purvis of Tweed (LD)
My Lords, I am grateful for the opportunity of speaking to these three Motions in my name. First I want to set a degree of context before addressing some of the issues of substance raised by the EU Select Committee. The intention behind the Motions is to give an airing to the first three of what the Government term rollover, or continuity, agreements, which we have negotiated and signed with countries that have an existing trading relationship with the UK by virtue of our membership of the European Union.
The House will be fully aware that it was the Government’s intention that before exit day—whenever that might be—all our existing trading relationships would be rolled over. Indeed, the Minister’s predecessor, the noble Lord, Lord Price, stated that all the countries had agreed in principle to roll over the agreements. That was not the case, and only three have so far been scrutinised by the EU Select Committee. Next, the agreement with Switzerland will have to be considered.
I do not belittle our relationship with Chile, with the eastern or southern African regions or with the Faroe Islands—but they represent 0.1%, 0.1% and 0.1% of total UK trade. So there is a lot more to be done before exit day, if the Government intend to roll the agreements over. We know that some of them will not be rolled over, but there is still a considerable question mark as to whether, before exit day, we will see signatures on trade agreements with other countries.
The Faroe Islands, to give one example, are the UK’s 114th largest trading partner, and total UK exports there amount to just £6 million. To put that into context, that is one-fifth of the doomed ferry contract that Chris Grayling agreed. Again, I do not seek to belittle our relationship with those islands, but these are minuscule sums in the context of overall UK trade.
This issue was highlighted by the EU Select Committee in paragraph 5 of its report, which alerts us to a degree of concern that there is no prospect that the other agreements will be agreed ahead of the UK’s scheduled exit from the UK. It says:
“The risk of disruption to the terms of UK trade with many of its most important trading partners is now imminent and acute”.
That is a very reasonable, if slightly understated, description of the situation.
These three agreements are illustrative. In an interesting way, they are broadly representative of the type of arrangements that the UK has in its trading relationships. The ESA EPA is development focused: that is under- standable, given the trading context of our relationship with those countries. The EPA offers a beneficial trading relationship to Madagascar, Mauritius, the Seychelles and Zimbabwe. They cherish their trading relationships with the UK, even when in the context of UK trade, those are very small. In the context of those countries’ trading relationships, they are important.
The Chile association agreement is wide in nature. It is not simply a free trade agreement. It contains high-level provisions on political dialogue and provides for co-operation on economics, scientific issues and specific areas such as illegal migration, drugs and organised crime. It also includes a free trade agreement component. The Faroe Islands agreement focuses primarily on saving what the Government estimate to be £11 million in offsetting tariffs that would have been applied if we were trading with them on WTO terms.
That is a snapshot of the breadth of our trading relationships with Chile, with the eastern and southern African states and with the Faroe Islands. It is right for your Lordships to have an opportunity to consider these agreements on the Floor of the House rather than simply using a CRaG process that does not afford Members an opportunity to consider them.
I fully expect that this may well be a relatively brief debate and it may simply be one where we air some of the questions raised by the committee. But that process still has value—it is important. It is important for our trading partners to know that the Houses of Parliament consider them. I hope that it will also provide a degree of precedent going forward.
In that regard, I welcome the commitment from the Minister on the Report stage of the Trade Bill that we have been considering that it will be the Government’s intention to bring forward to the Chamber some of the trade agreements. I agree with the observation of the committee in calling for further consideration in the Chamber. It is not the job of an opposition party to bring forward Motions to have them debated and I hope that this will be the last time that Opposition Members will bring forward amendments to have trade agreements such as these debated on the Floor of the House. Instead, I hope that it will become standard practice for the Government.
I now turn to the issues raised by the EU Select Committee in consideration of the treaties. In doing so, I pay tribute to the thoroughness of the committee’s work and the considered work of the clerks of the committee and its members. Their first observation was that the Government have chosen to use short-form agreements—this may be right or wrong; I am neutral on this position. In other words, they highlight only amendments to the original underlying agreements with the European Union. But the committee said that to ensure transparency and consistency, the Government should publish the original text of the agreement that we had with the EU along with decisions by the Government for amendment, so that it is easier to compare and identify where there are differences.
I also respect the fact that it was the Government’s intention to publish reports concerning the areas where there were differences. The legislation says “principal or major differences”, but the Government are to be commended for saying that any differences will be highlighted. But in order for us to be aware of those rather than simply to rely on the Government’s statement in their report, it would be helpful if they published the text of the original agreements alongside any of the new ones, especially if they are using the short-form version. It will be helpful to know from the Minister whether the Government intend to do that.
The second observation of the committee to which I draw the attention of the House is over consultation with the devolved Administrations. Noble Lords who have participated in the Committee and Report stages of the Trade Bill will know that this has been a major part of our considerations. Indeed, the House passed amendments concerning consultation with the devolved Administrations. It should be the standard approach that draft texts of rollover agreements are shared with devolved Administrations prior to signature. The EU Select Committee found that it was “puzzling” that this did not happen with regard to the Faroe Islands agreement. There could not possibly be a clearer agreement concerning fisheries and the Faroe Islands and that text should have been shared with the Scottish Government. It was not. But again, I commend the Minister for recognising that that was an omission by the Government and saying from the Dispatch Box during the proceedings of the Trade Bill that that would not be repeated. I take her at her word and it is to be welcomed.
The Scottish Government’s concern was shared by the committee—I do not wish to put words into its report because it is clear to see—that it would be an unwelcome precedent were that practice to carry on. I accept that the Government have taken that on board and it will not be a precedent that the draft text will not be shared. That is a clear example with the Faroe Islands but, as we discussed in the Trade Bill, there are many aspects of legislative competence that are the responsibility of the Scottish Parliament and the Welsh Assembly, and they need to see the texts to understand if there are legislative consequences that may arise. Even with the Chile agreement on illegal migration, drugs and organised crime, there will be examples in the Scottish legal system and law enforcement agencies and others that may well have an interest in some of these issues when being implemented. If a precedent is being set, consultation should be carried out on the continuity agreements.
Baroness Verma (Con)
My Lords, I rise as a member of the European Union Select Committee, which has reported on these agreements, and as chair of the External Affairs Sub-Committee, which considered the Chile and eastern and southern Africa states agreements. The committee’s 31st report is tagged alongside the three Motions. I thank the noble Lord, Lord Purvis, for recognising the hard work that the Select Committee does. There are one or two areas that he mentioned that I may refer to during my brief intervention.
I begin by pointing out that tonight’s debate is the first of its kind. Since parliamentary scrutiny of treaties was codified in statute in Part 2 of the Constitutional Reform and Governance Act 2010, neither House has debated a Motion like those that are being debated tonight. It was due to Brexit and the need for the Government to roll over a large number of existing EU international agreements that the Procedure Committee recognised the need for Parliament to scrutinise these agreements and decided that the European Union Committee should take on that task.
It has been a major task, and staff from across the EU committees have worked long and hard to ensure that we could deliver on that task. Today, we published our sixth report in six weeks. It scrutinised another, still more complex, agreement: the UK-Swiss trade agreement. This is demanding work for the committee, so it is important that noble Lords engage more widely in our findings. As a committee, we welcome tonight’s debate regardless of whether, as individual members, we support the Motions introduced by the noble Lord, Lord Purvis. Having this debate shows that the House understands the importance of these agreements and that it is prepared to commit time and resources to doing a proper job of scrutiny. It also puts down a marker for the future, when the Government may enter into fresh negotiations on major new trade deals with the United States or with other countries, that the House of Lords intends to be fully engaged. I hope tonight’s debate will be the first of many.
I will now briefly recap the points made by the committee on these treaties. I emphasise that we have not recommended that they should not be ratified—far from it. But we have raised some points that merit further debate, and I look forward to my noble friend the Minister’s response. First, there is the scale and sequencing of the Government’s programme of rollover trade agreements. The three agreements that we are considering tonight are tiny, representing in total around one-quarter of 1% of UK trade. The Swiss agreement, which I have just mentioned, is of course much bigger, so that is welcome progress. But important agreements with Japan, Canada and South Korea have yet to materialise. We would like to know when they will appear. If we leave the EU on 29 March, which will mean the default position in law, how will the Government mitigate the risk of disruption to the terms of UK trade?
Next we highlight the inconsistency of consultation with the devolved Administrations, which the noble Lord, Lord Purvis, referred to. We understand, of course, that international trade is a reserved competence. But, as the department’s recent paper on parliamentary scrutiny of international agreements acknowledges, trade intersects with many areas of devolved competence. The devolved Administrations should not be closed out of the process. The Government’s approach to consultation has been patchy. The devolved Administrations have been shown drafts of some non-trade agreements—such as the agreement with Ireland on social security and the agreement with Switzerland on citizens’ rights—but have not been shown drafts of the DIT’s rollover trade agreements. Is the Minister able to respond to that? If the aim of these agreements is to ensure continuity of the existing terms of trade, there is no need for secrecy.
The Welsh Government have written to us to say that the Government’s approach to these agreements has fallen very short of their expectations and that it should not set a precedent for the handling of future free trade agreements. Will my noble friend the Minister undertake that drafts of future rollover agreements—or at least relevant sections—will be shared with the devolved Administrations?
We also raised the question of the modification of free trade agreements. Ratification is not the end of the process. These agreements can be subject to amendments and modifications, so ongoing engagement with stakeholders and with Parliament is essential. As a committee, we have repeatedly asked for clarity on when amendments to agreements will engage the CRaG Act procedures, but we have yet to receive a convincing answer. Will the Minister undertake that the Government will state clearly in future Explanatory Memoranda the circumstances in which amendments to agreements will or will not engage the CRaG Act?
I note that we are tonight well beyond the point at which agreements could have been laid in time to complete the full 21 sitting-day CRaG scrutiny process before 29 March. Is my noble friend able to explain how the Government will approach scrutiny of future rollover agreements? Can she say whether in some cases agreements will be provisionally applied ahead of formal ratification, and how will the Government deal with those that cannot be provisionally applied?
As I said, scrutinising these agreements within the time limits prescribed in the CRaG Act has been a big piece of work. I realise that discussions on future parliamentary scrutiny are continuing and I welcome the DIT’s paper of two weeks ago. It showed a willingness to engage with committees earlier in the process. However, we need earlier, fuller scrutiny, and I hope that in her response the Minister will indicate her readiness to engage with noble Lords across the House, and with the EU Select Committee in particular, in developing those ideas.
Viscount Waverley (CB)
My Lords, the question of FTAs must be taken extremely seriously and we must give them appropriate scrutiny, recognising that they are now very important to the United Kingdom. To borrow the words of the noble Lord, Lord Purvis, this is a brief but important debate.
The Government have long iterated on the importance that they place on parliamentary consultation and scrutiny. This afternoon, no lesser a person than the noble Baroness, Lady Fairhead, informed us of the Government’s vision of engagement with Parliament. We have learned the consequences of not being fully utilised as an experienced resource, so I urge the Minister to embrace these three straightforward Motions. In this regard, the parliamentary ratification processes moving forward should be expedited. The record of government thus far is patchy.
Baroness Neville-Rolfe (Con)
My Lords, I commend the noble Lord, Lord Purvis of Tweed, for initiating this debate and agree with many of the points that he made—for example, publishing the agreements and those that they replace together. I also agree that there should be consultation wherever possible—for example, with the Scottish Parliament on the Faroe Islands.
Like my noble friend Lady Verma, I sit on the European Union Select Committee. We have been helping the scrutiny process in this House by reviewing the international agreements laid before Parliament in accordance with Section 20 of the Constitutional Reform and Governance Act 2010. The EU Committee was asked to take on this task rather late in the day, and it has involved a commendable cross-party effort by the committee and its sub-committees. However, as has already been said by previous speakers, the main credit should go to the clerks and our expert advisers, who, frankly, have done a fabulous job, working long hours and diving into the wearying complexities of these agreements. As we have heard, we published our sixth report in this series today—HL Paper 315, for the enthusiastic.
I am not sure that I have the chutzpah to table a Motion on this issue myself when there is so much parliamentary business to progress. However, I take this opportunity to draw attention to our work on treaties and to mention the UK-Swiss trade agreement, on which we reported today. This example is “illustrative”, in the word of the noble Lord, Lord Purvis. I very much understand that my noble friend the Minister may not be able to comment on this agreement, although she is very good at pulling rabbits out of hats. Switzerland is the 10th largest trading partner for the UK. As a committee, we were disappointed that the Government, in bringing forward the UK-Swiss trade agreement for scrutiny, had not provided an explanation of the plans for future UK-Swiss services trade, which accounts for 52% of overall trade between the UK and Switzerland. Services are as important as goods to our economy. Given that they now represent nearly 85% of GDP, you might say that they are even more important to the wealth and success of our islands. I am sorry that the process gives them so little focus.
In the meantime, I support the words of the noble Viscount, Lord Waverley, about the importance of parliamentary scrutiny. I would like to see the three agreements before us passed without delay. I look forward to many further debates on the very important area of future trade agreements, which will potentially have big implications and lead to big changes to our country.
Lord Stevenson of Balmacara (Lab)
My Lords, I suppose this is in the nature of an experiment. This is the first time we have had an opportunity to go into detail about the new world that beckons, whichever side of the Brexit divide one is on. At some point in the future, whether sooner or later, the UK will certainly be faced with making a very large number of these treaties. We need to get used to wading through them and investigating in detail.
I had only a short time to go through the agreements on the Order Paper, but I was left reeling, not only from the pages that dealt with the individual tariff lines—I know I will have to do more work on these because of the Government’s announcement today. Even so, it was a pretty scary moment to try to realise exactly what was going on there, equally so to recognise the point made by the noble Baroness, Lady Neville-Rolfe, that a modern trade agreement is not just about widgets and physical objects but trade in services, attitudes, approaches, commitments to work together, future developments—all sorts of areas. It is a very complex area. I do not think one quite has a sense of how that works in practice until one reads the raw text.
The noble Lord, Lord Purvis, is right to ask us to dwell on how the process works. Obviously, the committee’s work is exemplary in this way. It may have been short of time and the necessary expertise, but it certainly managed to get access to quite a lot of information. It is full of information that would be very difficult to get if one did not have access to our expert support. It is very useful to give an initial sense of what we are really up against and to take the benefit of those who have gone before us. I do not think there is much more, other than to listen to the Minister’s response, which I am sure will be very fair and cover all the ground.
I want to flag up that I will be looking at these with one particular issue—investment—in mind. That should not be a surprise, since I have been raising this issue over all these trade agreements over a period of time. I looked through the agreements on the Order Paper today and could only find one reference to investment in Article 39 of the agreement establishing an economic partnership agreement between eastern and southern African states and the UK. Is this the only one with an investment chapter in it? Will the noble Baroness comment on whether that is a trend or just the way things are? I probably know the answer to that.
Given that this one has an investment chapter in it, what is the meaning behind paragraph 1(e) of Article 39? It says that the parties recognise the importance of investment and the objectives in this case are to,
“develop a legal framework that promotes investment by both Parties, with a view to promoting and protecting investment and work towards harmonised and simplified procedures and administrative practices”.
Does this mean motherhood and apple pie, or is it code for some new system of secret courts meeting in secret locations and taking decisions on investment with an adverse effect on the political and social economy of the countries concerned? I may have extended slightly to make my point, but I would be grateful for a response.
The Minister of State, Department for International Trade (Baroness Fairhead) (Con)
My Lords, I thank all of your Lordships who have contributed to this debate for the many insightful points raised and the informed speeches made. I join my noble friend Lady Neville-Rolfe in commending the noble Lord, Lord Purvis of Tweed, for raising what is, as the noble Viscount, Lord Waverley, agreed, a very important subject. It is critical that we transition these three trade agreements, which cover countries accounting for £3.5 billion of our trade.
The noble Lord, Lord Purvis, has raised a concern with the scrutiny processes with respect to these continuity agreements. Let me reiterate what has already been done on scrutiny to date. For the sake of clarity, these are existing EU trade agreements that we are transitioning to bilateral agreements between the UK and third countries. Therefore, they have already been subject to a scrutiny process at EU level, and this was overseen in our Parliament by our EU Select Committees. Ratifying these agreements means that we can provide assurance to business in the UK and third countries that there will be trade continuity in any EU exit scenario.
However, we hear the noble Lord’s concerns that Parliament should have appropriate opportunities for scrutiny, and it is absolutely an objective of the Government that Parliament is afforded these opportunities. That is why the Government agreed to go over and above the requirements as laid out in the Constitutional Reform and Governance Act by setting out in a report to Parliament details of any significant trade-related differences between the UK and EU free trade agreements, and explanations for the changes. These reports must be published 10 days before implementing regulations are laid under the Trade Bill or before ratification, whichever is earlier. Indeed, I will shortly take the House through a precis of the three agreements and the reports that were laid alongside the texts. I hope this will demonstrate the detail that they include to those who have not had the opportunity to go through them, and will reassure the House about our approach to transparency.
I start with the UK-Chile agreement, which reproduces the effects of the EU-Chile agreement as closely as possible, making only technical changes to ensure that the agreement can continue to operate between the UK and Chile. It means that our businesses can, for example, continue to sell cars to Chile on existing terms. In fact, according to HMRC data estimates, 2,400 VAT-registered businesses in the UK exported to Chile in 2017 alone. Trade in goods and services between the UK and Chile was £1.8 billion in 2017—the top goods imported from Chile being edible fruit and nuts, beverages, spirits and vinegar, while our key exports to Chile were machinery and mechanical appliances.
In transitioning the agreement, the tariff-rate quotas in the UK-Chile agreement have been resized from the original EU-Chile ones to reflect that the UK is a smaller import and export market than the EU 28. These quotas were agreed following examination of a range of evidence including historical usage data and trade flow data.
I turn now to rules of origin. When the UK leaves the EU, the designation of UK exports will shift from EU-originating to UK-originating. To ensure maximum continuity for business, the UK-Chile agreement provides that EU materials can continue to be recognised in UK and Chilean exports to one another. Furthermore, EU processing can be recognised in UK exports to Chile.
The noble Lord, Lord Purvis, raised an important issue on where the new agreement differs from the original, and that is with regard to parliamentary committees. The original EU-Chile agreement established an association parliamentary committee as a forum for members of the European Parliament and the Chilean National Congress to meet and exchange views. The EU-Chile committee may, for example, make recommendations to the EU-Chile Association Council. Given the principle of continuity, it has been our intention to replicate the institutional structures of the original EU-Chile agreement where possible. With respect to the association parliamentary committee, we did not consider it appropriate to bind Parliament to this commitment without prior consultation. We have therefore agreed treaty text which reserves the right of UK parliamentarians to their position until such consultations have been concluded. The association council provides a mechanism that allows for the establishment of the association parliamentary committee at the request of the parties. If Parliament considers that it wants this committee to be set up, then DIT officials will work with Chilean counterparts to seek to establish this committee at the earliest possible opportunity.
Turning to the economic partnership agreement between eastern and southern Africa countries and the UK, this maintains the effects of the ESA-EU EPA in a bilateral context. As the noble Lord, Lord Purvis, reiterated, EPAs are asymmetric in favour of developing countries and are therefore critically important to their progress. The UK signed the agreement on 31 January with Mauritius, Seychelles and Zimbabwe, and we expect Madagascar and Comoros to sign in the near future.
Lord Purvis of Tweed
I am most grateful to the Minister for her very thorough response to all the points that have been raised not just by me but by colleagues—the noble Baronesses, Lady Verma and Lady Neville-Rolfe, from the committee, the noble Viscount, Lord Waverley, and the noble Lord, Lord Stevenson.
The noble Baroness, Lady Neville-Rolfe, suggested that I may have a little bit of chutzpah in bringing these Motions to the House this evening. I plead guilty, and do not demur from that at all. But, in doing so, I hope that it was a vehicle through which the noble Baroness, Lady Verma, was able to present the hard work that her committee members and staff have done. If nothing else, it demonstrated part of the work of the committees of this House and the value that they bring to other non-committee members on some aspects, as said by the noble Lord, Lord Stevenson.
Sometimes these documents are almost impenetrable without the expert support and advice we need since we cannot get the support that Ministers have from the Bill teams. It has been very welcome, and no doubt we will be able to say this on Third Reading of the Trade Bill, that throughout the proceedings the Minister, the noble Lord, Lord Bates, and the noble Viscount, Lord Younger, have been very engaged with me. It has been most beneficial. But when an individual Member comes in to meet the three Ministers and five officials from the department, that is slightly daunting—I am sure it is not deliberately so. Nevertheless, as the noble Lord, Lord Stevenson, said, these treaties we will be engaged in are often complex and wide-ranging. The reality, as colleagues have said, is that this will now be a major part of our work in engaging in the scrutiny and ratification process of trade agreements, and then in the continuous updating of them all.
I have two final points in welcoming the Minister’s response. First, the noble Viscount, Lord Waverley, made a point that struck me. If the Government see Parliament as a resource rather than as something to be afraid of, the process is much more beneficial. I know the Minister believes this, and that is very welcome, but we are having to find new ways of dealing with a new set of environments. Secondly, if we are moving and migrating some of the elements, including parliamentary activities, I am sure that there will be a call for some form of additional resource for Parliament to enable us to carry out our functions in some of the committees.
As the noble Lord, Lord Stevenson, said, if we are embarking on a new way forward, I will put on record—it is helpful that the Government Chief Whip is here—how helpful the Government Whips Office was in scheduling this debate straight after the Trade Bill. It has been a long day, but it meant that those who have been engaged in this issue have had an opportunity to air some of those aspects.
I look forward to the Minister’s letter; I am sure that the Committee does as well. We have simply whetted our appetite for the Swiss agreement and the other forthcoming ones. On the basis of the Minister’s very helpful response, I beg leave to withdraw the Motion in my name.