Economic Activity of Public Bodies (Overseas Matters) Bill
(Limited Text - Ministerial Extracts only)
Read Full debateWednesday 25th October 2023
(6 months 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 Amendment Paper: Consideration of Bill Amendments as at 25 October 2023 - (25 Oct 2023)
17:36 - The House divided: - Ayes: 200 / Noes: 273 - Question accordingly negatived.
17:49 - The House divided: - Ayes: 197 / Noes: 276 - Question accordingly negatived.
18:02 - The House divided: - Ayes: 207 / Noes: 269 - Question accordingly negatived.
18:14 - The House divided: - Ayes: 197 / Noes: 275 - Question accordingly negatived.
Zarah Sultana (Coventry South) (Lab)
I rise to speak to the amendment in my name, as well as amendment 13, tabled by my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner). Both relate to how the Bill will impact public bodies’ rights to make ethical decisions on matters relating to international law and human rights, so that is the subject I will begin with.
Gaza, the United Nations has said, has become a “hellhole”. Israeli bombs have decimated whole neighbourhoods. In six days alone, 6,000 bombs were dropped on the besieged enclave—more bombs than NATO forces dropped in an entire year of intense fighting in Afghanistan. An Israeli military spokesperson was frank about the purpose of the bombing:
“the emphasis is on damage and not on accuracy”.
Nearly 6,000 Palestinians have been killed, including nearly 2,500 children. Last night was the deadliest so far, with 700 people dead. This is happening to one of the most densely populated areas on earth, where 2.3 million people, half of whom are children, are trapped in an area no bigger than the Isle of Wight.
Even before the recent violence, Gaza had been besieged for more than a decade and a half, with access by land, air and water blockaded. Back in 2010, even Conservative Prime Minister David Cameron called it a “prison camp”, but now Israel has imposed a total siege, cutting off water, fuel, electricity and food. The UN says hospitals will run out of fuel today, and incubators with premature babies will stop working. Israel’s evacuation order demanding that 1.1 million people flee their homes was described as
“impossible…without devastating human consequences”
by the United Nations, and the World Health Organisation has called it a
“death sentence for the sick and injured”.
Indiscriminate bombing, collective punishment and forcibly displacing people are “clear violations” of international law—not according to me, but according to the United Nations Secretary-General. This is in no way downplaying or denying Hamas’s appalling attacks on Israeli citizens, which I absolutely condemn, and I again echo the call for the release of hostages. Just as I and no Member here can imagine the fear and anguish of families who have seen loved ones taken hostage, I cannot imagine the terror of Palestinian families facing constant Israeli bombardment. On this question, the United Nations Secretary-General said yesterday: “International law is clear”. Yet in this House, people do not want to accept that. Hamas’s crimes in no way excuse what we have seen since.
That is relevant to this debate because these clear violations of international law have been given the green light by political leaders here in the UK and beyond, even with an Israeli defence official promising to turn Gaza into a “city of tents”. The Prime Minister has still refused to acknowledge these clear violations of international law and, unlike a growing number of his counterparts across the world, he is still refusing to call for an immediate ceasefire. That is utterly shameful, and it goes to the heart of the problem with this Bill and the need for these amendments.
Israel’s brutal war on Gaza is not an isolated example. For example, the Saudi-led war on Yemen, which I have spoken about repeatedly in this House, has claimed the lives of more than 150,000 people. It has included war crimes such as the Saudi bombing of a school bus, which killed more than 40 children and a dozen adults. That war has also been waged with the British Government’s support, including considerable military equipment and assistance.
Let us find some historical examples. Perhaps the most notable is the Government’s support for the apartheid South African regime, which people should be absolutely ashamed of and embarrassed about. The then Prime Minister, Margaret Thatcher, called the African National Congress and Nelson Mandela “terrorists”, and Young Conservatives proudly wore badges calling for him to be hanged. In each of these cases—whether it is Israel’s war on Gaza, the Saudi war on Yemen or apartheid South Africa—violations of international law and gross injustices have been committed with the support and complicity of the British Government.
If the Bill is passed unamended, on these matters and more, public bodies such as local councils and universities will not be able to make ethical procurement or investment decisions. Local democracy will be sidelined, and they will be forced to ignore questions of human rights and international law. The case of South Africa shows most clearly why that would be such a mistake.
The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Will the hon. Lady give way?
Zarah Sultana
I am going to continue.
While the Government supported the apartheid regime, local councils across the country rallied around the anti-apartheid movement, with 39 councils across the country having divested from companies operating in South Africa by 1985. If this Bill had been put in place then, that action would have been illegal. That is why a huge coalition of more than 70 organisations have come together to oppose it. Those organisations include trade unions such as ASLEF, the Fire Brigades Union, Unison and Unite, and campaign groups such as Greenpeace and Liberty.
Amendment 17, in my name, and amendment 13 seek to address this grave mistake by protecting the right of public bodies to make ethical decisions, not leaving them at the whim of the deeply unethical decisions of national Governments such as ours. I urge Members from across the House to support the amendments.
Kit Malthouse (North West Hampshire) (Con)
Some years ago, an elderly Jewish constituent came to see me in my surgery concerned about her own safety following a rise in violence in Israel and Palestine, and the resulting antisemitism here in the UK. I said to her then that, if the mob ever came for her, before they got to her they would find me standing in her driveway with my baseball bat in hand. I have stood with the Jewish community across the UK, particularly in London, over the last nearly 25 years of my political career.
When I am told that in seeking to improve this legislation, or in expressing doubts about its impact, I am somehow picking a side, with the implication that I am not standing with that community, I find it both insulting and offensive, particularly coming from Members of this House who, while accepting unquestioningly this legislation, have not done so with other legislation coming from the Government. We all have a duty at this point in time, as the Prime Minister and others have said, to choose our words carefully. On Monday, he said it was a time for “care and caution”, and he was exactly right.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
My right hon. Friend is making a powerful point. Like me, he has spent a lot of time in local government. Does he agree with the point I raised on Second Reading that a key issue is that our local elected brethren—for example, those specifically elected on a foreign policy platform, such as the 17 councillors who served at one stage on Birmingham City Council on behalf of the “Justice for Kashmir” party—may have a specific democratic reason for being there to express that foreign policy view? There will be circumstances in which councillors, including those who sit in the House of Lords and who sit as part of international bodies, such as the congress of the Council of Europe, benefit from parliamentary privilege in expressing their views. There is therefore a risk that this gagging order is not simply gagging what people should expect as freedom of speech, but is also ineffective in the objective it sets out to achieve.
Kit Malthouse
My hon. Friend speaks with experience, and he puts it extremely well. To assume that councillors are merely elected on the basis of their attitude towards potholes and refuse collection is completely erroneous; they are elected for all sorts of reasons. Many councillors and Members of the devolved Administrations who campaign on social, moral, ethical and, indeed, foreign policy issues would say that they have a mandate, and not even to be able to express opposition to the law while still complying with it seems very un-British, extremely illiberal and unnecessarily draconian. We have lots of laws in this country to which councillors and, indeed, other elected officials of opposing political persuasions can express opposition. To have an exception on this basis seems faintly ridiculous.
On amendment 4, I declare my interest as a member of the local government pension fund, which I understand is the only pension fund affected by the Bill. As I said on Second Reading, it is unfortunate that, as the right hon. Member for Hayes and Harlington (John McDonnell) said, my accumulated savings are being put under the control of the Secretary of State. If, in pursuit of this control, my pension diminishes in value because I am forced to follow the decisions made by the Secretary of State, what will be my compensation in retirement?
Amendment 5 is about exempting universities as public bodies. There is a technical reason, as well as a principled reason, for this amendment. I outlined my objection on Second Reading, not least because we had just appointed a free speech tsar and legislated for free speech on university campuses, but here we are busily curtailing free speech through this Bill.
The technical issue is about universities being classified as public bodies. As the Secretary of State will know, there has been a flurry of activity in the Treasury because further education colleges have been classified as public bodies, which means all their debt comes on to the public balance sheet. This is another step towards universities, with their even greater levels of debt, coming on to the balance sheet, about which the Treasury ought to have a say. I hope and believe that, when the Bill goes to the House of Lords, the Treasury will want to have a look.
Finally, amendment 6 is about international law. I know that the Secretary of State, like every member of the Government, is extremely keen on international law and wants to ensure it is followed in all circumstances, and particularly in this current horrific conflict in Israel and Gaza. One of the great benefits of our more flexible system is that, as the Government called for boycotts of Russian businesses and Russian individuals following the invasion of Ukraine, other parts of civic society were able to move extremely quickly to comply, whereas under this legislation they would have to wait for the Government to issue some kind of regulation, which would have to go through this House and be debated. That could possibly take weeks, if not longer, particularly if the House is in recess. Amendment 6 proposes that if the Government declare that a country or situation is in breach of international law, other organisations can immediately respond by issuing their own sanctions or disinvestments.
I honestly believe that the amendments I have tabled—I understand that only amendment 7, which is probably the most important, will go to a Division this evening—represent an attempt to improve the legislation, rather than necessarily picking a side. Although this debate has, I am afraid, been positioned as a pro-Israel or pro-Palestine debate, I am primarily pro-Britain. I want to get the legislation right for this country, for the Jewish community and for every community in this country so that we can live with the consequences for years to come.
Claudia Webbe (Leicester East) (Ind)
Human rights groups have rightly condemned the Bill as an outrageous and unwarranted interference in the ability of councils, universities and other public bodies to use their purchasing power to pursue ethical procurement and investment policies in order to help defend human rights and tackle issues such as climate change. Everyone who cares about issues such as the illegal arms trade, activities of arms manufacturers and traders whose weapons fuel conflicts around the globe, or climate justice, correctly will be horrified by this blatant attack on the basic democratic rights of elected public bodies to act on behalf of the residents who elected them.
The Bill specifically protects the state of Israel, Israeli companies and their human rights abuses from local authority sanctions, no matter what human rights abuses they might commit or are committing now. It is self-evident that councils and other public bodies must be free—and, indeed, have a duty—to act to prevent or discourage breaches of international humanitarian law. It is clear that Israeli settlements are illegal under international law, and no local authority or Government should offer support to such activity. The Government’s anti-BDS Bill contradicts the guiding principles on business and human rights published by the United Nations. It penalises public bodies that comply with the UK’s responsibilities as a permanent member of the UN Security Council. It takes away the democratic right of public bodies to make ethical financial decisions.
The Bill uniquely shields human rights abuses by Israel, allowing it to act with impunity. Indeed, the Bill exempts specific countries—namely Israel, despite its human rights abuses and war crimes—even though we do not know what future actions such countries may take. That is a show of complete contempt for the people of Palestine and the daily inhumanity, abuse and discrimination they face. The Bill is a textbook case of divide and rule politics.
It is profoundly disappointing that the Government are pursuing the anti-boycott Bill at this moment, when tensions are extremely high in our communities. In the past few weeks, almost 7,000 Palestinians have been killed—almost half of them children—and 1,400 Israelis have been killed, and the civilians of Gaza have been massacred by Israeli airstrikes. War crimes are happening in real time. An immediate ceasefire is required, and the Prime Minister, the Government, the Leader of the Opposition and all political leaders in this House should be calling for it.
Boycott, divestment and sanctions are an effective means of peaceful resistance. The Bill is no less toxic than at its previous stage. If it passes, it will close off a vital democratic avenue for the closest representatives of ordinary people at local level to demand accountability and change. It will show how little this Government care about the lives of civilians and the plight of persecuted and exploited communities around the world.
Michael Gove
I thank all Members who have contributed to this debate for the thought and care that they have given to the legislation before us. I appreciate that we are debating these measures at a sensitive time and that, across the House, people will place different emphases on aspects of the legislation and the broader issues with which it deals.
Let me be clear: I have respect for everyone who has spoken and the arguments that they have made. Where there is disagreement, it is in the context of everyone in this House being united in their horror of terrorism, their desire for peace and their belief in a two-state solution.
We are seeking in the Bill to give effect to a manifesto commitment, as my right hon. Friend the Member for Clwyd West (Mr Jones) has just pointed out. The Bill was introduced earlier this year. Indeed, it completed its Committee stage under the careful and thoughtful stewardship of the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Kensington (Felicity Buchan), with contributions from all sides of merit, thought and care.
Of course, those debates took place before the horrific events of 7 October, to which so many colleagues in this debate have referred. It is important to remember—I do not think that anyone in the House can forget—that on 7 October we saw the largest loss of Jewish life since the holocaust. That atrocity was perpetrated by terrorists from Hamas whose aim is very clear and very simple: the elimination of the Jewish state, the elimination of Jewish lives. Whatever the background beliefs or origin of those Jewish lives, they were to be exterminated.
More than 200 hostages are still being held by Hamas in Gaza. Across the House, we grieve for them and their families. I thank in particular the hon. Members for Walthamstow (Stella Creasy) and for Brent Central (Dawn Butler), with whom I have been in touch, who have been working very hard to ensure that their constituents are released and brought home. I also thank the shadow Business Secretary, the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), who joined me and many Members from all parties at a vigil in Trafalgar Square on Sunday to call for the return of those hostages.
We also sympathise across the House with the innocent people of Gaza, and with all those Palestinian people who have suffered. We recognise that many of the innocent people in Gaza are hostages too. They are hostages of Hamas, Palestinian Islamic Jihad, and the other terrorist organisations that operate within that territory. It is vital at all times that we draw a distinction between those who suffer in Gaza and those who are perpetrating suffering in the name of terrorism.
I am very conscious that we are debating these issues against that backdrop, but it is important that we look at the principles behind the Bill. I also thank our friend, the ambassador of the state of Israel, who is here in the Gallery to listen to our considerations. She and other ambassadors have been working with the Foreign, Commonwealth and Development Office to ensure that every hostage is released back to their Jewish home with their family.
It is important to recognise what the Bill does not do. A number of legitimate concerns were expressed that actually do not reflect what is in the Bill and what the Bill is intended to achieve. The Bill does not prevent any individual from articulating their support for the BDS campaign, or indeed any particular policy that the BDS campaign puts forward. It simply prevents public bodies and public money being used to advance that case. Any of us as individuals has a total right to freedom of speech. However offensive or difficult some of the words that some utter might be, free speech is not affected by the Bill.
The Bill also does not prevent human rights considerations from being taken into account by local authorities. The Bill makes it clear that legitimate human rights considerations, provided that they are non-country-specific, should be taken into account. I note the point made by my right hon. Friend the Member for Camborne and Redruth (George Eustice) about animal welfare. If specific human rights considerations need to be added to the Bill, we will consider that in the Lords. I also note the comments made by the hon. Member for Brighton, Pavilion (Caroline Lucas). We want to ensure that there is a robust way of ensuring that local authorities can uphold human rights on a non-country-specific basis.
I noted some of the concerns expressed about the impact on the local government pension scheme. Let me stress again that there is no damage to the fiduciary duty that trustees of the scheme will have to uphold in ensuring that they secure the best value on their investments for their members. What the Bill does do is deal with the broad principle that foreign policy should be reserved to this House. It is important to stress that when other public bodies take a stand on foreign policy, they risk vitiating the power of both the Government and the House to achieve goals for the benefit of the United Kingdom and risk creating specific community tensions.
Talking of specific community tensions takes us, of course, to the specific menace that is the BDS movement. It is of course possible for local government to consider adopting boycotts in a variety of ways, but the truth is that if we look at local government and, as my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) pointed out, at the devolved Administrations, the only country that has been singled out so far for boycott, divestment and sanctions campaigns has been Israel. Let us not hide from that fact.
The reason for that is that the BDS campaign is in itself antisemitic. It is not exercising disapproval of some particular foreign policy or domestic policy decision of the state of Israel; it is saying that Israel should not exist. It is instructive, though not easy, to look at the communications that the BDS movement has issued on social media since 7 October—not one word of sympathy for the Israeli people in their suffering. Indeed, what it has said on social media, when talking of those deaths, is that “their blood”—the blood of the Jewish people; the Israeli people killed—
“is on the hands of the Israeli government.”
The BDS campaign has said that the “root cause” of this violence—the deaths on 7 October—
“must be acknowledged…Israel as the occupier.”
The BDS movement has cited a variety of politicians as what they call “partners in genocide”: Rishi Sunak, Joe Biden, Olaf Scholz and Ursula von der Leyen. Of course, the BDS campaign also continues to repeat the lie—the blood libel—that it was the Israeli Defence Forces who were responsible for the tragic loss of life at the Al-Ahli Hospital in Gaza. That is what we are dealing with, and I am very grateful to the hon. Member for Birmingham, Selly Oak (Steve McCabe) for making clear the horror that he and so many of us hold for the BDS movement.
There is an argument that perhaps this Bill is divisive and it is not wanted, particularly by many voices in the Jewish community. There are some voices in the Jewish community who have concerns, and we have listened to them, but the representative bodies that speak for Britain’s Jewish community are united in supporting this Bill. They include the Board of Deputies, which contains representatives of every Jewish constituency, Jewish organisation and every Jewish community, be it secular or religious, and the Jewish Leadership Council, which contains representatives of every political and faith tradition within the Jewish community. We have heard reference made to the increase we have seen—it is horrific to think about it—in antisemitic incidents in recent weeks. Indeed, the right hon. Member for Barking (Dame Margaret Hodge) made reference to the Community Security Trust. I have been in contact with it this afternoon and it sent me this message:
“BDS has a chilling impact on Jews, a modern reminder of anti-Jewish boycotts. It also serves to legitimise the shunning of Jews from ‘decent’ society. And having been shunned…that’s a half way house to all manner of more abusive and physical outcomes.”
So we respect the diversity of voices, but when we have such unity from those who speak for the Jewish community—indeed, the Jewish communities—of the UK, when they are so clear that this legislation is in the interests of community cohesion, fighting antisemitism and making the UK a safe house for everyone, we should treat their words with respect.
The point has been made that the specific mention in the Bill of Israel could perhaps, in some cases, engender a greater degree of polarisation and antisemitism. I know that the people who make that argument make it sincerely, but, as my hon. Friend the Member for Brigg and Goole (Andrew Percy) pointed out, sometimes we just have to stand up for what is right. If there are people who are provoked as a result of that, it is regrettable but we should not shy away from telling the truth. We should not shy away from saying that what has been going on with Gaza’s genocidal campaign against the Jewish people is something that we as a country need to stand against. When the BDS campaign has in its leadership the leaders of Hamas, we need to be clear about this evil and this menace. That is not just my argument; it is also the argument of the Jewish community organisations that I cited earlier, including the Jewish Leadership Council. In its submission to the Committee considering this Bill, it said:
“The inclusion of clause 3(7) recognises this unique nature of the BDS campaign against Israel”.
It stated its belief that if that provision were excised, as one amendment seeks to achieve,
“the very purpose of the bill would be undermined. Such a change would…convert a bill aiming to prevent anti-Israel BDS campaigns from abusing our public bodies into a tool to facilitate it.”
It is debatable, of course, whether this is the right way forward—the Jewish Leadership Council is very clear that it is—but I simply ask: after everything we have seen in the past three weeks, if this House were now to remove a specific protection for the state of Israel at this time, what message would it send? I submit to every Member of this House that we should listen to the Jewish community and the clarity with which they speak.
Chris Stephens
I thank the right hon. Gentleman for the tone he has adopted so far, as it is important that we adopt the correct tone in this debate. Does he recognise the concerns that not just Israel is mentioned in the clause? This is also about why the Government have included the Occupied Palestinian Territories and the Golan Heights. That has also aroused some comment, debate and criticism.
Michael Gove
I take the hon. Gentleman’s point and appreciate the concerns that he articulates, which are shared by a number of people, but the way in which the Bill is designed makes it clear that there is a separation between Israel, the OPTs and the Golan Heights. As the Jewish Leadership Council pointed out in its evidence to the Committee on which the hon. Gentleman served with distinction:
“This clause recognises this distinction”—
it absolutely does—
“and closes a loophole to ensure public bodies cannot remain tools of the BDS movement against Israel.”
It is also the case that, by making that distinction, the clause—and the Bill overall—reserves to the UK Government the role of maintaining, as we do, our absolute commitment to a two-state solution. As framed, then, the Bill is absolutely not in breach of international law. It enables the UK Government to speak with one voice on behalf of the entire United Kingdom in our determination to secure a two-state solution, however distant that prospect may be at the moment.
Richard Graham
I am interested in clause 3, which specifically states that the exceptions to any prohibition are:
“(a) Israel…(b) the Occupied Palestinian Territories, or…(c) the Occupied Golan Heights.”
What is the distinction between Israel and those two that means that we can still hold the Government of the day accountable for illegal settler occupations in those two occupied areas?
Michael Gove
The fact that they are listed separately and individually affirms the absolutely principal purpose of treating them individually and separately. Were—[Interruption.] I am sorry, but if Opposition Front Benchers think it is appropriate to smile, laugh and joke about this issue, I regret that. If people disagree in a principled fashion, I respect that. But the key thing is that we know there are people who have attempted to use language relating to what happens in the occupied territories—indeed, the former Attorney General, my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis), cited a number of examples of this—specifically to seek to target people on the basis of their Jewish identity, and that is wrong.
Andrew Percy
There is another point. If we accept, as everybody who has spoken today has apparently accepted, that the BDS campaign is a pernicious, antisemitic campaign, we should know that it is pernicious and antisemitic whether it is against the state of Israel or against products that come from the Occupied Palestinian Territories. The BDS campaign should be outlawed wherever it takes place. It is very simple.
Michael Gove
My hon. Friend is absolutely right and, indeed, my right hon. and learned Friend the Member for Northampton North again made it clear that in France and Germany the BDS campaign is outlawed in the way that we seek to do here. No one denies for a moment that France and Germany, under Emmanuel Macron and Olaf Scholz, are valued partners for peace and upholders of international law.
Greg Smith (Buckingham) (Con)
On international agreements, does my right hon. Friend agree that, given that the United Kingdom is party to a series of World Trade Organisation framework agreements, such as the general procurement agreement, the UK has a duty not to discriminate in its trade practices, and that to permit public bodies to engage in antisemitic BDS activities would undermine our international agreements?
Michael Gove
My hon. Friend is absolutely right and I thank him for his thoughtful contribution.
I recognise the sincerity and commitment of my opposite number, the right hon. Member for Ashton-under-Lyne (Angela Rayner). Both she and her predecessor, the hon. Member for Wigan (Lisa Nandy), have been brave and forthright in calling out antisemitism wherever it occurs. I thank her for her work and the conversations we have had formally and informally on this issue. It is for that reason that I say, with respect, that I disagree. I understand the intent of the proposal from Labour’s Front-Bench team, but I disagree, because—as they acknowledge in their own amendment for ensuring that people cannot adopt, through an ambiguous form of words, a means of preventing people from accessing kosher or halal food—there is the potential, as lawyers have been clear, for an ambiguous form of words to be used in order, without mentioning Israel by name, to make it clear that a boycott campaign is directed against Israel. I think we all have a duty to be clear about that.
The BDS movement is clear in what it upholds: an evil campaign not just to eliminate the state of Israel but to target Palestinians who work with Israeli institutions. It has been crystal clear in recent weeks in its total failure—not just a failure, but a conscious desire not to express a shred of sympathy or regret for the loss of innocent lives. It is clear about what it wants to do to sow division. It is clear that its actions lead to, and have always led to, an increase in antisemitic attacks.
Those who speak for the Jewish community in this country have been clear as well. They respect the diversity and plurality of opinions in this House. They respect the motives, they respect the feelings, they respect the strong emotions that these issues engage. But they have also been clear that they wish this legislation to pass, they wish it to pass unamended, and they wish it to pass now. I honour them in their suffering, and it is for that reason that I urge the House to reject the amendments and to pass the Bill.
Madam Deputy Speaker (Dame Rosie Winterton)
Does Chris Stephens wish to press new clause 1 to a Division?