Economic Activity of Public Bodies (Overseas Matters) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateMonday 3rd July 2023
(9 months, 4 weeks ago)
Commons ChamberEconomic Activity of Public Bodies (Overseas Matters) Bill 2022-23 View all Economic Activity of Public Bodies (Overseas Matters) Bill 2022-23 Debates Read Hansard Text Watch Debate
21:38 - The House divided: - Ayes: 212 / Noes: 272 - Question accordingly negatived.
21:53 - The House divided: - Ayes: 268 / Noes: 70 - Question accordingly agreed to.
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
I beg to move, That the Bill be now read a Second time.
I hope the House will allow me first to pay tribute to Lord Kerslake, who, as the House will know, died over the weekend after a short illness. Bob Kerslake was a true public servant, steeped throughout his professional life in local and central Government, and wholly dedicated throughout his career to improving the lives of citizens. He began his career with Greater London Council and went on to run, with distinction, Sheffield City Council—the fourth largest in England—before making the switch to the corridors of Whitehall. He was the first chief executive of the Homes and Communities Agency, the forerunner to Homes England, a vital arm of Government in making sure that affordable housing is available to all. He was deservedly promoted to become permanent secretary to the Department for Communities and Local Government and, later, head of the home civil service, where he served with great distinction and kindness. Speaking personally as a Minister in the Governments where he served, I was deeply grateful to Bob for his dedication, his generosity of spirit and his wise advice.
After leaving Government, Bob led the inquiry into the 2017 Manchester Arena bombing. More recently, he chaired the UK2070 Commission on regional inequalities. My colleagues and I greatly valued his work on homelessness with the Kerslake commission, and I think we all agree that his energy, knowledge and wisdom will be greatly missed. I know that right hon. and hon. Members across the House will wish to join me in sending our deepest condolences to his family in their grief. [Hon. Members: “Hear, hear.”] I thank you, Mr Speaker, and colleagues across the House.
The Bill does four things: it honours a manifesto promise to which this Government recommitted in the last Queen’s Speech; it affirms the important principle that UK foreign policy is a matter for the UK Government; it ensures that local authorities concentrate on serving their residents, not directing resources inefficiently; and, critically, it provides protection for minority communities, especially the Jewish community, against campaigns that harm community cohesion and fuel antisemitism.
In our 2019 manifesto, this Government committed to
“ban public bodies from imposing their own direct or indirect boycotts, disinvestment or sanctions campaigns against foreign countries.”
The Bill does just that—no more and no less.
Sir Desmond Swayne (New Forest West) (Con)
I think it does a fifth thing, which is to introduce a thought crime. Were I to be a leader of a local authority opposed to the provisions of this Bill, once it became an Act, if I continued to say that I disagreed with its provisions and what I might wish to have done with the powers I retained were those provisions not to have been made law, I would be breaking the law. That cannot be right in a free society, can it?
Michael Gove
It would not be right if the Bill restricted local authorities from adopting policies that they considered to be in line with Government policy. It is also the case that it would be problematic if we were to restrict freedom of speech in any way, but the Bill does not do that.
Several hon. Members rose—
Michael Gove
Not at this point—I will in a second.
It is important to stress what the Bill does not do. It does not restrict local authorities adopting policies in line with formal, agreed Government sanctions, embargoes and restrictions. It does not impede local authorities considering legitimate commercial factors related to business with a foreign state, and exercising due diligence in the award of contracts. And it does not prevent a local authority from exercising due diligence when considering whether a supplier or investment target might be involved in environmental misconduct, bribery, competition law infringements or labour misconduct, including human trafficking and modern slavery. In no way does the Bill circumscribe anyone’s right to freedom of speech or conscience.
What the Bill does do is prevent local authorities from singling out individual nations for discriminatory treatment on the basis of an ideological opposition to that nation and its fundamental basis. Action is required here because there is an existing, organised and malign campaign that aims to target and delegitimise the world’s only Jewish state. That campaign seeks to persuade public bodies to make commercial decisions solely on the basis of harming that state and its people.
Stephen Crabb (Preseli Pembrokeshire) (Con)
I am grateful to my right hon. Friend for giving way so soon in this debate.
Is not the reason every single Conservative Member stood on a manifesto commitment to bring forward such legislation that we understand that there is something fundamentally illiberal, leftist and with deep, ugly connections to antisemitism at the heart of the boycott, divestment and sanctions movement? That is what we are trying to tackle today.
Michael Gove
My right hon. Friend is absolutely right. I shall go on to say more about the nature of the BDS campaign because we are not talking in the abstract; we are talking in concrete terms about a campaign that exists, and has been in operation now for nearly 20 years, based on a premise that seeks to delegitimise the state of Israel. The campaign also leads directly, as I shall point out, to antisemitic incidents and a loss of community cohesion.
Joanna Cherry (Edinburgh South West) (SNP)
I just remind the Secretary of State that the Bill goes way beyond the activities of the state of Israel and will apply potentially to other areas of foreign policy, too. Has he considered whether the interaction of clause 1(7) and clause 4 will disproportionately interfere with the freedom of expression, and of conscience and belief, of individuals who are making, or have a stake in, the procurement and investment decisions of public bodies? My view and that of many other lawyers who have looked at the Bill is that it will. Why has he not produced a human rights memorandum analysing the extent to which the Bill interferes with rights under article 10 and article 9, on freedom of belief, of the European convention on human rights, and article 19 of the international covenant on civil and political rights? Will he do so?
Michael Gove
Absolutely. Nothing in the Bill conflicts with any aspect of the ECHR, not least article 10.
Sir Simon Clarke (Middlesbrough South and East Cleveland) (Con)
I welcome the fact that my right hon. Friend is bringing this legislation to the House today. He rightly mentioned the unsavoury connotations of much of the criticism that the Bill is facing, particularly in connection with the BDS movement. On that point, could he clarify his thoughts on Richard Hermer KC, who has provided advice to the shadow Front-Bench team on this legislation? Mr Hermer has previously authored a chapter in a book called “Corporate complicity in Israel’s occupation: evidence from the London session of the Russell Tribunal on Palestine”, which is edited by some extremely interesting people—I fear that they are interesting in the most negative sense. Is this really the calibre of individual who should be advising the official Opposition?
Michael Gove
My right hon. Friend raises an important question because the Opposition have tabled a reasoned amendment. I believe they have done so in good faith. As the hon. and learned Member for Edinburgh South West (Joanna Cherry) pointed out, some lawyers take a different view from the Government. One of those lawyers was commissioned by the Labour party to produce a legal opinion, but the gentleman concerned, a distinguished KC, has a record in this area—a record of political commitments that everyone can see clearly predispose him towards a political and particular view on this question.
Michael Gove
No. I am merely pointing out what is in the public domain. Let us turn to the nature of the BDS campaign.
Tim Loughton (East Worthing and Shoreham) (Con)
Will my right hon. Friend give way?
Michael Gove
Not at this point. The BDS movement deliberately asks public bodies to treat Israel differently from any other nation on the globe. It asks them to treat the middle east’s only democracy as a pariah state and to end links with those who have a commercial presence there. Let me be clear: there are legitimate reasons to criticise the Israeli Government, to question their policy and, if individuals so wish, to repudiate their leadership, as there are with many other countries.
Dr Philippa Whitford (Central Ayrshire) (SNP)
Will the right hon. Gentleman give way?
Michael Gove
No. Nothing in the Bill prevents or impedes the loudest of criticisms of Israel’s Government and leaders, including by elected politicians at all levels of government.
Alicia Kearns (Rutland and Melton) (Con)
Will my right hon. Friend give way on that point?
Michael Gove
No. But the BDS movement asks that, alone among nations, Israel be treated as illegitimate in itself—
Michael Gove
No. The founder of the BDS movement, Omar Barghouti, has been clear in his opposition to the existence of Israel as a Jewish state. He has attacked what he calls the “racist principles of Zionism”—that is, the fundamental right of the Jewish people to self-determination. The man who founded and is in charge of the BDS movement has argued that Zionist principles
“maintain Israel’s character as a colonial, ethnocentric, apartheid state.”
On that basis, he opposes any idea of a two-state solution—a secure Israel alongside a viable and democratic Palestine. Instead, the BDS movement’s leader wants a
“one-state solution…where, by definition, Jews will be a minority.”
It is entirely open to any individual to agree with that proposition, but it is no part of this Government’s determination or intent to give any heart or succour to a movement that argues that the two-state solution is wrong and that Jews should be a minority in one state.
Crispin Blunt (Reigate) (Con)
Can my right hon. Friend help us here? As the effect of Israeli policy since 1967 has been to build out of existence the possibility of a two-state solution by settling 700,000 Jews who have arrived in the state of Israel, with their right to go there under Israeli law, it is now no longer possible for there to be a two-state solution, so what is British policy to be?
Michael Gove
British policy is, as my hon. Friend knows, to promote a two-state solution. I know that he has a long, passionate and committed interest in this subject and I respect the compassion and knowledge that he brings to the debate but, respectfully, I disagree with him. I believe that a two-state solution is the right approach, which the BDS movement does not believe.
Jim Shannon (Strangford) (DUP)
I very much welcome the legislation that the Secretary of State is introducing, and we as a party will support it when the time comes tonight. There are many examples in Northern Ireland of councils having overstepped the mark by boycotting goods from Israel and penalising and focusing attention on the small Jewish community. Local authorities should be working hard to support diversity and good relations, not ridiculing and condemning our small and minority communities. It is clear to me that the point of the legislation is to make sure that that does not happen, so let us make sure that it goes through tonight.
Michael Gove
I agree, as I do almost always, with every word that the hon. Gentleman said.
Several hon. Members rose—
Michael Gove
I will take interventions in due course, but I want to make a little progress first.
I want to be clear about what the BDS movement is and what it does. The BDS movement is not, in its origins or operation, a campaign that is designed to change Israel’s Government or shift Israel’s policy. It is designed to erase Israel’s identity as a home for the Jewish people. Again, the founders of the BDS campaign have been clear, saying:
“A Jewish state in Palestine in any shape or form cannot but contravene the basic rights of the…Palestinian population and…ought to be opposed categorically”.
Alongside those who lead the BDS movement on the BDS national committee sit members of the Council of National and Islamic Forces in Palestine, a coalition of Hamas, Palestinian Islamic Jihad and the Popular Front for the Liberation of Palestine—all militant organisations that are proscribed by this Government.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Will the Secretary of State give way?
Michael Gove
I will give way in due course, but not at this point.
The effects of the campaign are sadly manifold. The BDS campaign opposes efforts to bring Israelis and Palestinians together to broker peace through a two-state solution, opposes cultural exchanges between Israelis and Palestinians, and fights against co-operation between Israeli and Palestinian universities. BDS has specifically denounced an organisation called OneVoice, which is a joint Palestinian-Israeli youth organisation that campaigns to end the occupation, campaigns against settlements and campaigns for the establishment of a Palestinian state. Because OneVoice does not use the rhetoric of apartheid that BDS deploys, and because it does believe that there should be a Jewish state, it is denounced by the BDS movement.
Several hon. Members rose—
Michael Gove
I will make more progress and then give way.
Where the BDS campaign has been adopted and endorsed there have, unfortunately, been real community-cohesion problems. We have seen an increase in antisemitic events following on from the activities of the BDS movement, including supermarkets removing kosher products from their shelves following specific protests. The Community Security Trust has recently recorded the highest ever number of antisemitic incidents.
In evidence adduced before the Supreme Court in 2020, the following point was made. The evidence said that
“although anti-Israel and pro-Palestinian campaigning in itself is”,
obviously,
“not anti-Semitic, there is a pattern of anti-Semitic behaviour in connection with campaigns promoting a boycott of Israel. For example, protests outside an Israeli-owned shop in central Manchester in summer 2014 led to some Jewish people using the shop being racially abused by protestors, including shoppers”—
I hope the House will forgive me—
“being called ‘Child killer’, comments such as ‘You Jews are scum and the whole world hates you’, and Nazi salutes being made at Jewish shoppers using the Israeli-owned store. On social media, hashtags such as #BDS, #BoycottIsrael and #FreePalestine are regularly used by people posting anti-Semitic tweets and comments.”
That is why Labour Friends of Israel has rightly stated:
“BDS damages communal relations and fosters antisemitism at home, while doing nothing to further the cause of peace and reconciliation between Israelis and Palestinians. Public bodies should not be singling out the world’s only Jewish state for boycotts.”
Luke Akehurst, a Labour NEC member speaking in a personal capacity, has also argued that we should
“welcome the Government’s proposed bill to end the ability of public sector bodies to carry out boycotts and divestment.”
Mr Akehurst added that he was against BDS more widely
“because it deepens the divisions in the Middle East conflict rather than encouraging dialogue and coexistence between Israelis and Palestinians. BDS demonises and delegitimises Israel”.
I agree with Labour Friends of Israel, I agree with Luke Akehurst, I agree with the Board of Deputies, and I agree with the Jewish Leadership Council, all of whom back this Bill. I agree with the French and German Governments who have taken action against the BDS movement, and I agree with all 50 Governors of US states—Democrat and Republican—who have denounced the BDS movement. The question for every Member of this House is whether they stand with us against antisemitism or not.
Alicia Kearns
I thank my right hon. Friend for giving way. Although I disagree fundamentally with the point that he has just tried to make, my question to him is this: has a single diplomatic post specifically advised that the Bill contravenes our UN Security Council requirements and resolutions?
Alicia Kearns
Has any diplomatic post specifically advised the Government that what is being proposed this evening in the Bill contravenes our UN Security Council resolutions?
Mr Dhesi
This ill-drafted Bill has multiple contradictions, as excellent legal advice has highlighted, and it may actually contravene international law. Although the Secretary of State may be happy that he will have these additional powers, the Bill will no doubt be subject to multiple legal challenges, and therefore a lot of taxpayers’ money will once again be wasted by the Government. Does he concede that well beyond BDS and the middle east, the Bill may hamper the UK’s ability to protect and preserve human rights across the world?
Michael Gove
No, I absolutely do not. The Bill enhances the UK Government’s ability to protect human rights across the globe. On the point that the hon. Gentleman makes about legal challenge, it is the case that organisations such as the Palestine Solidarity Campaign and others have challenged the Government in this area in the past. They may do so again, but I am confident that the Bill is legally watertight. On the point—
Michael Gove
No, I am answering the hon. Gentleman’s question first.
On the point about the legal advice from Mr Hermer KC, as I have said, we believe that that legal advice is flawed and it comes from someone who has a clear political record of partiality on this question.
Stella Creasy (Walthamstow) (Lab/Co-op)
I thank the Secretary of State for giving way. I hope he will recognise that many of us in this House have stood up to the BDS movement. Therefore, his rather intemperate suggestion that only if we support this legislation are we against antisemitism does not pass muster. Does he recognise that those of us who would like to see local authorities challenged—perhaps through the Equality Act 2010—can find troublesome elements in this Bill? It is almost as if his myopia about the BDS movement has blinded him to the consequences of this and what it could do.
The Secretary of State boasted earlier that there were exemptions around labour rights and environmental laws, but is it not ironic that the Bill does not include an exemption around genocide? Those of us who have communities that are desperately concerned about the Uyghurs, the Rohingyas or what happened in Sri Lanka recognise that this legislation could stop our speaking out for them. Will he work with us—those of us who want to tackle antisemitism and to stand up for human rights—and rethink his proposals?
Michael Gove
I have a lot of respect for the hon. Lady and I acknowledge her work to fight antisemitism and stand against the BDS movement—more than acknowledge it, I applaud her for it. I would say three things. First, there is absolutely nothing in the Bill that prevents the UK Government or other public bodies from taking appropriate action against Myanmar, against China over the treatment of the Uyghurs or against Russia and Belarus over their aggression towards Ukraine. I have seen no solid legal advice to suggest that is the case at all.
Secondly, if the hon. Lady or anybody else wants to table amendments in Committee that can improve the Bill, I am completely open to them. I have not yet seen any such amendments, but I know she and others in this House are skilled in drafting legislation, and I look forward to seeing the appropriate amendments. However, as we have seen in the past, attempts to deal with the specific menace that the BDS campaign creates through guidance have not been sufficient. Primary legislation is required. The shape of that legislation I hope we can decide together across the House.
Dr Whitford
The Secretary of State mentioned that it is the UK’s long-standing policy to support a two-state solution. It is also the UK’s long-standing policy to differentiate between Israel and the occupied territories. The UK endorsed United Nations resolution 2334. Why is there no differentiation in the Bill between Israel and the occupied territories? Does that not increase the risk of antisemitism?
Michael Gove
No; they are separated in the Bill. I am afraid the hon. Lady is wrong.
Sir Robert Buckland (South Swindon) (Con)
My right hon. Friend is being very generous in listening to the rather strong opinions on the Bill, but can I press him again to consider alternative ways to deal with the threat of BDS without offering the glass jaw that I see clause 3(7) as presenting to parliamentarians, and to work with me and others to find a better way to do this? I will also say that ad hominem attacks on independent counsel, whoever they are, are not advisable and not wise.
Michael Gove
I am grateful to my right hon. and learned Friend. Of course we are completely open to the consideration of any amendments that can give better effect to the shared intentions that we have across the House to deal with this movement. However, Israel is there in the Bill because of the clear nature and the clear and present activities of the BDS campaign. Were there to be an alternative, one would have to make sure that it dealt effectively with that area.
Sir Brandon Lewis (Great Yarmouth) (Con)
Like my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), I thank my right hon. Friend the Secretary of State for the generosity he is showing in giving way. I support what he says about the importance of setting a clear marker on the menace of the BDS movement and its impact across communities. Does he agree that the Bill potentially goes further, in a positive way, by making the point that it is for local government to spend taxpayers’ money on services and other issues for their constituents in the best available way, not using it—or abusing it—on ideological issues, and that, whether in expenditure for the local community or through local government pension scheme investments, it should be aimed at getting the best return for constituents and beneficiaries, not at driving ideological wedges between communities?
Michael Gove
I think my right hon. Friend is completely right. Local government has a critical role in delivering public services, including support for the most vulnerable in our communities. It is vital that central Government support it in that endeavour and that local government should not be diverted from its core purpose by other temptations.
Richard Graham (Gloucester) (Con)
The Secretary of State said earlier that the Bill fulfils a manifesto commitment, but the manifesto commitment was not country-specific; it was country-agnostic. There was no mention of Israel or BDS in it. Indeed, another manifesto commitment was that we would champion freedom of expression and tolerance. He will recall that a former Secretary of State for Education wrote to all our universities to ensure that they allowed freedom of expression. How is that compatible with clause 4(1)(b), which states that any person who
“would intend to act in such a way”—
of having a boycott on any part of a foreign country—
“were it lawful to do so”,
would be prohibited from doing so and would be penalised by the courts for doing so? How does that represent championing freedom of expression and tolerance?
Michael Gove
I should say to my hon. Friend, whose commitment to advancing peace and to freedom of speech I respect, that all the Bill seeks to do is to ensure that boycotts and boycotts in name only cannot be brought forward. It has absolutely no effect—chilling or otherwise—on the exercise of freedom of speech.
Tim Loughton
I agree with the Secretary of State that there is a particular problem to do with Israel and BDS, but the Bill is not country-specific. Nor is it specific on whether it applies to investment or disinvestment. Of all the Bills I have ever read, it is particularly woolly in its drafting. Will the Secretary of State respond to a few scenarios? We found out that a number of local authorities in this country are twinned with Chinese towns. If they choose to un-twin with those Chinese towns, will they fall foul of the Bill? They are investing in twinning offices and travel expenses. If they were instead to set up a twinning agreement with a Taiwanese town, for example, or to set up a Hong Kong freedom centre, would they fall foul of the legislation? Indeed, under clause 1(2), on decisions
“influenced by political or moral disapproval of foreign state conduct”,
would flying a Ukrainian flag over a town hall fall foul of the Bill as well?
Michael Gove
I cannot see that any of those actions would fall foul of the legislation in any way. It is clearly the case that, in each of the areas that my hon. Friend mentions, particularly with respect to China, the Government are taking appropriate action to demonstrate our consistent disapproval of China’s behaviour, not just in Xinjiang but specifically, as he rightly mentions, in Hong Kong.
Mr William Wragg (Hazel Grove) (Con)
Will my right hon. Friend give way on that point?
Michael Gove
Not at the moment.
It is important, following on from the point made by my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), to make clear that there is no evidence that anything in the Bill will impede our ability or that of local government to act against modern slavery in Xinjiang or environmental misconduct in Myanmar, or to maintain a united front against Russian aggression. Nor is there anything in the Bill to prevent any individual, including councillors, from articulating in their own right any opinion that they personally hold. It is also important to make clear that nothing in the Bill changes in any way UK Government foreign policy or our position on the middle east peace process. Nothing in it alters our support for an adherence to UN resolutions, and nothing in it explicitly or implicitly supports current Israeli Government policy towards settlements in the west bank.
Mr Wragg
By virtue of my right hon. Friend’s capacious mind, he has had the UK’s foreign policy delegated to his Department as well. He said in answer to the Chair of the Foreign Affairs Committee, my hon. Friend the Member for Rutland and Melton (Alicia Kearns)—indeed, he just reiterated the point—that nothing in the Bill will endanger our international obligations. Presumably, with that capacious mind, he has read the write-round from the Foreign Office, which says directly that FCDO lawyers advise that the clause on Israel and the Occupied Palestinian Territories would significantly increase the risk of the UK being in breach of our commitments under UN Security Council resolution 2334. Has he had a word with our right hon. Friend the Foreign Secretary about that?
Michael Gove
Yes. Across Government, every Minister supports the Bill, and quite rightly, because it gives effect to our manifesto commitment and ensures that we live up to the responsibilities that we have to deal with divisive campaigns that operate on the ground in a way that adversely affects minority communities and, most especially, the Jewish community.
Several hon. Members rose—
Michael Gove
I am coming to the end of my remarks.
I recognise that many people have, in good faith, expressed concerns about aspects of the Bill, but I point out that the provisions are specifically designed to provide a high bar to ensure that local government acts as it should in accordance with the interest of its citizens, to ensure that UK foreign policy is articulated with one voice, and to ensure in particular that a campaign that those on both Front Benches are clear has been responsible for the demonisation of the state of Israel, for the delegitimsation of its right to exist and for discrimination against Jewish people in this country, is, at last, dealt with. For those reasons, I commend the Bill to the House.
Mr Deputy Speaker (Mr Nigel Evans)
As I said earlier, the amendment in the name of the Leader of the Opposition has been selected. I call Lisa Nandy to move that amendment.
Lisa Nandy
South Africa is obviously a different case, but the point my hon. Friend makes remains and is well founded, because this Bill concentrates the decision making and judgment of hundreds of public bodies in the hands of just one person.
Kit Malthouse (North West Hampshire) (Con)
The hon. Lady talked about pensions, and there is an additional point. Whatever people may think of BDS or of an investment strategy that is ethical or otherwise, the money that sits in the local government pension scheme—and I am a member of the local government pension scheme—is the members’ money, my money. It is not the Government’s money to direct in one way or another; it belongs to the pension holders, and it is surely for them and those to whom they delegate its management to decide how it should be deployed. As she rightly says, if the Government are getting into the business of managing my pension money and I lose money because of decisions made by the Government, presumably I should be compensated.
Lisa Nandy
This is precisely the question that the Government have yet to answer, but we hope that will be forthcoming during this debate. I would add to what the right hon. Gentleman said that the local government pension service is already under a fiduciary duty to take prudent investment decisions based on an assessment of the financial consequence of a number of matters, including environmental and social governance, and when it divests on the basis of non-financial factors, it should follow the Law Commission direction that any financial impact should not be significant and that the decision would likely be supported by scheme members. I am not sure what happens when a local government pension fund is taking decisions that would not be supported by scheme members. We are talking about the pensions of 6 million people in this country, and I think these are important questions that the Government must answer.
I want to turn to one of our chief concerns about this Bill, which is the concentration of the decision making and judgment of hundreds of public bodies in the hands of just one person and the implications of that for some of the most persecuted people in the world. There will be significant effects on the Uyghur in Xinjiang, who are suffering such serious crimes against humanity that the Biden Administration have recognised it as genocide. The Secretary of State will have read the impassioned letter from those groups in The Times about the effects of this Bill. Surely we cannot abandon them to their fate. For the Rohingya in Myanmar, for the Tamils in Sri Lanka and for countless others, the concern is that this bad law prevents not just economic action to uphold human rights everywhere, but solidarity with some of the most persecuted people in the world.
As was said earlier, the Bill goes further and clause 7 grants to the Secretary of State or other relevant body the power to issue notices requiring all information to be handed over, if they suspect that a prohibited statement expressing a moral or political view about foreign conduct is in the process of or about to be made, including information in subsection (8) that would normally be protected by legal privilege. Let me clear about the effect of that: this hands over to the Office for Students, the Secretary of State, and the Treasury, greater powers than those available to the security services. I know there are Members on both sides of the House who are deeply troubled by that, and those who are not should consider for a moment how they might feel about this Bill if their party was not in power.
We should not be here. We have long fought for legislation to tackle what is a real problem, and we are determined to give the Government the opportunity to do the right thing. That is why today we are proposing an alternative that allows the Government and this House to keep our promise to tackle a long-standing issue of deep concern to the Jewish community, but avoids tearing up our commitment to human rights, local democracy and free speech, in a Bill that does not even appear to tackle the very problem it seeks to solve.
Kit Malthouse (North West Hampshire) (Con)
I rise with a heavy heart to agree with many comments from across the House on the nature of this defective Bill. I agree with Richard Hermer KC, who in a very compelling interview published in today’s Jewish News talks about the problems that this Bill presents not just for the UK as a whole but for British Jewry in general.
Taking things in order, my primary concern is the safety of that community. As somebody who has worked very closely with the Jewish community, particularly in the capital over the years, and who has a strong affection for the Haredi community in north London, whom I know well both in policing and crime terms and having dealt with their housing issues as Housing Minister, I am afraid that I agree with the right hon. Member for Barking (Dame Margaret Hodge) that this Bill, should it go through in its current form, is likely to damage and worsen their safety rather than improve it. In that I am with Jonathan Freedland, who wrote in the Jewish Chronicle just last week:
“What is the favourite refrain of the antisemites? That Israel is the one country you’re not ‘allowed’ to criticise. This bill takes a canard and, in the case of boycotts, turns it into the law of the land.”
The inclusions of clause 3(7) and, indeed, parts of clause 4 send a chill through that sense of debate, and will feed some of the disgusting conspiracy theories about the status of Israel and the influence that that country has around the globe. I have to say that I fear for the safety of the Jewish community should the measures be passed in that form. There are those who would do its members harm—we all know that in this House, and I have seen it for myself—and we cannot give them succour by falling into that trap.
My second concern is the practical impact of the Bill on many organisations across the country. As we heard from the hon. Member for Sunderland Central (Julie Elliott), this is a lawyers’ charter. There will be challenges to and fro, involving universities, pension funds and councils. Every decision that is taken will be scrutinised, and, moreover, councillors who have strong convictions in either direction will seek to find ways that are oblique to fulfil their own sense of moral or ethical obligation. There are groups out there who represent other countries, such as China and Myanmar, who will seek constantly to push councils in their direction, and not just in terms of Israel or Palestine. As a result, a huge amount of money and effort, and KCs at dawn, will be expended in pursuit of this legislation, and the impact will be enormous.
Thirdly, two key fundamental issues that are intrinsic to the way we live in the United Kingdom are challenged by the Bill. The first is, obviously, the free-speech challenge to which a number of Members have already referred, and which is represented in clause 4(2). It appears that I cannot even criticise this law, whether I am a council leader, a university vice-chancellor, or the chief executive of a company that is performing public services. I have never before seen legislation that outlaws disagreement with the law, and I think that breaching that right to free speech is a very problematic step.
The second of these issues was mentioned by the hon. Member for Wigan (Lisa Nandy). A law granting powers greater than those granted to the police to the investigatory or enforcement authorities identified in the Bill—the Secretary of State, the Office for Students, and one or two others—and allowing them, in particular, to breach legal privilege so that organisations can effectively go on a fishing trip looking at the legal advice that individuals have taken as they contemplate investment decisions is a Rubicon that I believe it would be wrong to cross.
The fourth area that concerns me relates to our tradition of pluralism in this country. There is no doubt that the Bill will send a chill through debate about a series of conflicts across the world. Whether we are talking about the Uyghur Muslims in China, the fate of Hong Kong Chinese or, indeed, those in Israel and Palestine, the fact is that everyone who is engaged in democracy, locally or on a devolved-nation basis, will have to be extremely careful about what they say. They will have to think twice and three times before they discuss these issues, lest that should prejudice, or be seen to prejudice, an investment or other decision that they may make in the future.
This is especially problematic in the context of academic freedom. As we heard from the Chair of the Select Committee, my hon. Friend the Member for Rutland and Melton (Alicia Kearns), we have just passed a law to guarantee academic freedom: freedom on campus. For that freedom now to be restricted. particularly for those in leadership positions in universities, strikes me as perverse. It should come as no surprise that the Union of Jewish Students is flatly opposed to the Bill, which is apposite given that its members are often the people most exposed to antisemitism in this form.
Finally, I want to raise the issue of timing. The right hon. Member for Barking said that this was the worst Bill at the worst time; I think that it is a defective Bill at a dreadful time. Given what is unfolding in Israel and Palestine today, given the toll of deaths that we have seen so far this year on all sides and given the international concern about the escalating violence in that part of the world, the introduction of this Bill at a time when many countries in that region are extremely concerned about what is going on will be seen by Arab countries in particular—although Members may not feel this themselves—as being partial, and as privileging one country over the others. I think that that will be detrimental not just to our interests in the United Kingdom, which are a primary concern. but to the interests of Israel, Palestine and the wider region.
The Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities (Felicity Buchan)
I thank Members from throughout the House for their impassioned and heartfelt contributions. Let me remind the House why we have introduced this legislation: we believe that we should have one foreign policy, and we also believe that BDS campaigns risk undermining community cohesion. We believe that public bodies should not be wasting time and money on pursuing their own foreign policy agendas and should instead focus on providing vital public services and delivering value for money for the taxpayer in their procurement and investment decisions.
Let me also clarify certain misapprehensions that certain Members have about the Bill. First, the Bill applies only to public authorities. It does not apply to private individuals or private companies, except if they are exercising public functions. It does not place restrictions on local councillors, except when they talk expressly on the behalf of their local authority. It does not prevent public authorities from making statements on foreign policy; it prevents them only from making a procurement or investment decision if it is motivated by moral or political disapproval of a foreign state’s conduct.
Many Members have mentioned clause 4. I reassure Members that clause 4 only prevents public authorities from making statements of intent to boycott or divest. It does not prevent public bodies from disagreeing with this legislation. The Bill does not ban ethical, religious or socially conscious funds, so, for instance, climate change funds can continue with the Bill unless there are issues that are country-specific.
A number of Members mentioned clause 3(7). I want to clarify the role of the clause. The Bill applies equally to all countries. Countries can be exempted from the ban by secondary legislation, which is what we are planning to do with Russia and Belarus—[Interruption.]
Madam Deputy Speaker (Dame Eleanor Laing)
Order. This has been a very good-natured and difficult debate. It has been held with disagreement, but courtesy across the House. People have now come into the Chamber who have not been here during the debate and it is most discourteous of them now to make so much noise that we cannot hear the Minister. That is bad behaviour and it is bad for the way in which we do things in here, especially on a day when we have had a very well-constructed and conducted debate.
Felicity Buchan
Thank you, Madam Deputy Speaker.
Given the focus of the BDS campaign on Israel, we are simply saying in this clause that, for Israel to be exempted from the legislation, it will require primary legislation. I want to make that very clear. This policy does not affect our foreign policy position. We are not legislating for the UK’s foreign policy on Israel or on any other country in the Bill. The purpose of the Bill is to ensure a consistent approach to foreign policy across our public bodies, led by the UK Government. The Bill will not prevent the UK Government from imposing sanctions, or otherwise changing our foreign policy on any country in future.
I stress that none of the provisions in the Bill changes the UK’s position on Israeli settlements in the west bank and the Golan Heights. We are continuing to urge Israel not to take steps that move us away from our shared goals of peace and security. We support a negotiated settlement leading to a safe and secure Israel living alongside a viable and sovereign Palestinian state, based on 1967 borders with agreed land swaps, Jerusalem as the shared capital of both states and a just, fair and realistic settlement for refugees.
Furthermore, our position on settlements is clear: they are illegal under international law; present an obstacle to peace; and threaten the physical viability of a two-state solution. Our position is reflected in our continued support for UN Security Council resolution 2334, with which the Bill is compliant.
Richard Graham
What the Minister says is not really what is reflected in the Bill because a specific exemption is given not just to Israel, in what should be a country-agnostic Bill—just like our manifesto commitment—but to two parts of Israel which we do not recognise as part of Israel under international law. Therefore, there is specifically an exemption for Israel. Does she agree—the Secretary of State said earlier that he would listen very carefully to suggested amendments—that this is something that needs to be worked on during the Bill Committee?
Felicity Buchan
UN Security Council resolution 2334 asks countries to differentiate between Israel and the occupied territories. We have done that in this clause; they are clearly separated out in different paragraphs. However, as the Secretary of State said in his opening remarks, we are open to any discussions on the Bill and of course we want the best legislation here.
Felicity Buchan
I am very conscious that, in the interests of time, I only have a few minutes.
Alicia Kearns
My hon. Friend knows the incredibly high esteem I hold her in, but it just is not credible to keep repeating that this does not change how we treat the Golan Heights, which have been annexed, and the Occupied Palestinian Territories. The Foreign Office’s own legal advice states that the Bill could breach UNSC 2334. How am I being told repeatedly from the Dispatch Box that that is not the case, when that is what Government lawyers are saying themselves? We have a responsibility to uphold that resolution. We drafted this legislation and therefore we need to remove clause 3(7). We on these Back Benches have offered a landing platform to the Government: “Remove that clause. You can still do this.” But please do not repeat that this does not change anything when the Government lawyers themselves say it does.
Felicity Buchan
The Government’s view is that the Bill is compliant with UN Security Council resolution 2334.
I move on to the reasoned amendment, which rightly recognises the impact that boycotts and divestment campaigns can have on undermining community cohesion. The Government, however, are resisting the amendment on the basis that this legislation is a robust and proportionate means of stopping public bodies engaging in divisive campaigns and of fulfilling our 2019 manifesto commitment. The amendment refers specifically to the Uyghur Muslims. This Government are concerned about the issue of Uyghur forced labour in supply chains and are taking robust action. The exceptions in this Bill, alongside the exclusion grounds in the Procurement Bill, will keep suppliers involved in labour market misconduct, including human trafficking and modern slavery, no matter where they are in the world, out of public sector supply chains.
We have already discussed the point on the occupied territories and the Golan Heights. The amendment claims that this Bill limits freedom of speech, but that is not the case. Private individuals and bodies are not affected by the legislation. The right to freedom of speech is protected by article 10 of the European convention on human rights and the Government remain strongly committed to the UK’s long and proud tradition of freedom of speech.
The amendment also criticises the powers given to the Secretary of State to enforce this ban. Far from being the unprecedented powers claimed, they are modelled on existing powers of regulators such as the Office for Students and the Pensions Regulator. It would simply not be logical to impose a ban with a toothless enforcement regime.
This legislation delivers an important manifesto commitment. It will ensure that the UK has a consistent foreign policy approach and speaks with one voice internationally. I look forward to working with hon. Members throughout the Bill’s passage to deliver this important legislation and to continuing engagement on the issues that hon. Members have raised in the House today. I commend the Bill to the House.
Question put, That the amendment be made.