My Lords, if there is a Division in the Chamber while we are sitting, this Committee will adjourn as soon as the Division Bells are rung and resume after 10 minutes.
That the Grand Committee do consider the Public Offers and Admissions to Trading Regulations 2023.
Relevant document: 7th Report from the Secondary Legislation Scrutiny Committee
My Lords, these regulations are made under powers introduced by the Financial Services and Markets Act 2023, or FiSMA. They form part of the Government’s ambitious programme to deliver a smarter regulatory framework for financial services, replacing assimilated law, formerly known as retained EU law, with an approach to regulation that is tailored to the UK. This instrument has been brought to the attention of the House by the Secondary Legislation Select Committee, which raised this SI but did not raise any specific issues.
The instrument delivers the key recommendation from my noble friend Lord Hill’s landmark UK Listing Review, published in March 2021, that we should fundamentally overhaul the UK’s listing regime, which is largely contained in the EU-derived prospectus regulation. The Government have previously acknowledged my noble friend Lord Hill’s contribution to this agenda, and I do so again. His report and this instrument represent a significant step change for our capital markets, making our listings rules fit for purpose and taking advantage of our ability to rewrite EU rules designed for 28 diverse markets. This instrument is a key step in the Government’s comprehensive and significant work programme to make UK capital markets more efficient and competitive while maintaining high standards. These changes will create a simpler and more effective regime that allows companies to raise funds more quickly and efficiently and provides investors access to better-quality information.
There have been two consultations which form the basis of this legislation: first, a government consultation on the prospectus regime in July 2021, which built on the recommendation from my noble friend Lord Hill; and Dame Elizabeth Gloster’s report of the independent investigation into the FCA’s regulation of London Capital & Finance plc. Both these were widely engaged with by industry, and the Government have previously confirmed our intention to move forward with these proposals, largely as consulted on.
A prospectus is a disclosure document that provides information to investors on a public offer of securities. The current prospectus rules regulation, the Prospectus (Amendment etc.) (EU Exit) Regulations 2019, sets out in prescriptive detail what a company must publish when raising capital on public markets. Many in industry found this regime to be cumbersome and inflexible, and it has been proven to stifle the capital-raising process for many firms. The current EU-derived prospectus regulation regulates both offers of transferable securities to the public and admissions to trading of a company’s securities on a regulated market. As my noble friend Lord Hill astutely observed in his review, treating these two often very separate activities with one prescriptive regime can increase costs for firms and undermine capital raising and investor participation. This instrument therefore creates a new framework for both these activities for the UK. This will be more streamlined, more targeted and make the process of capital raising more efficient and effective.
Underlying all this, it is the Government’s intention that appropriate information be published when companies raise capital on public markets or directly from the public. Under our new framework, therefore, companies raising money on capital markets will be required to publish information that is relevant and useful for investors, while removing unnecessary barriers to such information and unnecessary requirements. It is also the Government’s intention that firms raising money outside capital markets—for example, through crowdfunding platforms—can continue to do so, but in a more targeted, flexible and appropriate way. The regulation achieves this in the following ways.
First, it creates a general prohibition on public offers of securities, followed by a series of exceptions from this prohibition: for example, where the securities are traded on an exchange; or where the offer of securities is to fewer than 150 investors. These exemptions set the scope of the regulatory framework for public offers and mean, in practice, that in many situations firms will not need to produce a full prospectus when raising capital in the UK.
Secondly, this SI establishes a new regime for securities admitted to trading on a regulated market or multilateral trading facility—an MTF—giving markets such as AIM and Aquis Exchange the benefit of these reforms as well. Thirdly, it creates a new regulated activity of operating an electronic system for public offers of certain securities that are offered above £5 million. This will create flexibility for firms using a crowdfunding platform to raise capital, while providing the appropriate level of retail protection.
In line with its responsibility under our domestic financial services framework and as agreed during the passage of FiSMA, the FCA will be given new rule-making responsibilities to set rules that apply directly to firms, such as specifying when a prospectus is required and what a prospectus should contain, and addressing the manner and timing of validation and publication, among other matters.
Following the recommendations in Dame Elizabeth Gloster’s review into the FCA’s regulation of London Capital & Finance plc, this SI also brings non-transferable securities, such as mini-bonds, into scope of the public offers regime. This will ensure better investor protection. In practice, this approach means that offers of these types of investments will need to be made through a public offer platform, such as a crowdfunding platform.
Finally, under the current prospectus regulation, a public offer of unlisted securities of €8 million or above requires a prospectus. This instrument removes this threshold, which was effectively acting as a cap to certain private capital raising in the UK. These changes will allow all firms, small and large, to raise larger amounts of capital more easily and more quickly, helping them to grow, hopefully, in the UK. After these debates conclude, the FCA will soon consult on the detailed rules that will underpin this new regime. HM Treasury has worked closely with industry and the FCA to deliver this instrument.
To sum up, this SI replaces the EU’s prospectus regulation with a more appropriate framework for companies to raise capital from the public in the UK. These tailored changes will make the capital-raising process far more agile for UK companies while providing investors with good-quality, accessible information. The new regime will remove the often burdensome elements of its predecessor, which was designed for 28 markets. It will deliver the key recommendation of the listing review from my noble friend Lord Hill, in turn boosting the UK as a destination for listings.
In particular, the new prospectus regime marks a significant step in improving the competitiveness of UK capital markets, helping to make London a more attractive destination to list, while allowing investors to be better informed. It sits alongside a wide-ranging programme of capital market reforms that the Government are taking forward, as part of the Edinburgh and Mansion House reforms. I beg to move.
My Lords, I welcome the noble Baroness, Lady Swinburne, who has stepped in at the last minute today. We send our wishes that the noble Baroness, Lady Vere, recovers from her illness swiftly.
We were supportive of the Hill recommendations for changes to the prospectus regime, so we do not oppose this SI, but I will express a fair dose of anxiety. I want to register a concern at the power shift away from Parliament to the FCA. At present, the FCA acts with little accountability or oversight. The House will have a new committee, the financial services regulators committee, which I suspect will need to be very diligent as it looks at the FCA’s actions in this area. The FCA will now set the rules for admission to trading on regulated markets, on MTFs operating primary markets and what will now be classed as public offer platforms. Only the broad concept of a prospectus will remain in legislation. I ask the Minister to explain the additional resources that will be given to the FCA to police what are, frankly, difficult and complex waters.
I also ask the Minister to explain the compensation mechanism where there is misleading or incorrect information in a prospectus or in any other required document. I am particularly keen to know what happens if a company with a false prospectus or alternative document falls into bankruptcy, and whether the FCA or a court could remove investors’ rights of private redress, if a scheme of arrangement is implemented. I am deriving this from concerns that exist around the Woodford investors and the Link Fund scheme, which will overtake that organisation and appears to threaten the investors’ rights of recourse to either the Financial Ombudsman Service or the Financial Services Compensation Scheme. I am not quite sure how all this works around investors through these various platforms, but I am concerned that, somewhere, the compensation must be protected and not compromised. Perhaps the Minister will help me understand that part of the process.
Can the Minister expand a little more on the protections in place for offers of securities made through the renamed public offer platforms? As she said, they are essentially crowdfunding platforms. Typically, crowdfunding platforms have been caveat emptor, and I am trying to understand what protections will now be in place, especially as the requirement for a prospectus for offers over £8 million is being erased. In fact, the pool of companies that can use crowdfunding is now dramatically increased and involves many much bigger players. I fully recognise that we need to find a way to encourage investment in both start-ups and scale-ups if we are to grow the UK economy, but nothing will kill a market faster than a series of scams, especially when the victims turn out to be ordinary people. It is primarily ordinary people who make use of crowdfunding platforms—people who have not been in a position to either understand or evaluate the risks that they are taking.
I notice—the Minister referred to this—that mini-bond issues will now be required to use the public offer platforms. Frankly, that very fact illustrates the FCA’s propensity for closing the stable doors long after the horse has bolted. I understand that this may deal with the mini-bond problem, but what about the problems we do not yet recognise? How will they be captured? Under this new regime, will new scams now have far more room for manoeuvre?
This statutory instrument depends heavily on the FCA’s commitment to consumer protection, but it has been noticeable that the FCA rejected the introduction of a duty of care and opted for a customer duty. Framed largely as a box-ticking exercise, it is less comprehensive than a duty of care and, most importantly, the consumer duty arrangement permits no right of private action, which is perhaps the primary protection that most consumers have when a scam acts on them and they are victimised. Do the Government expect the FCA to apply to protection in this market the same customer duty approach, which is narrow, constrained and very much cuts off a right of private action?
I realise that the Government are determined to persuade ordinary people to take far more risk with their money, and these changes are part of that process. I have no problem with people taking risk, where they have sufficient funds for their own needs and sufficient expertise to understand the risk that they are undertaking. But, frankly, as I read through this SI, I find very little that looks as though it is directed at people with both resources and expertise; it seems to encompass people who may well have neither. We all know that, when they are first marketed, risky ventures look extremely good. It is only after time that people find out the pitfalls.
I am trying to get from the Government some sense of whether, when we pass this SI, we will lose control over the protections that will be in place. Will we have any way to challenge the adequacy of those protections? How will we be assured that, given the much greater flexibility and opportunity being offered, we will not lose necessary transparency and protection?
My Lords, I am very grateful to the Minister for introducing this SI, which we support, at such short notice. I note that the new prospectus regime is not due to come into effect until 2025. In the meantime, the UK’s public markets will continue to be at a competitive disadvantage. Given that the recent Financial Services and Markets Act contained a new competitiveness objective, does the Minister believe that swifter progress could be made on prospectus reform to support the UK’s international competitiveness?
The Explanatory Memorandum accompanying this SI notes that, in relation to regulated markets,
“the FCA will be given enhanced rulemaking responsibilities”—
for example, to set out when a prospectus is required or what it should contain. The EM also notes that the new regime will not come into effect until the FCA has made these new rules. Can the Minister clarify what progress the FCA has so far made and whether she is confident that this will not introduce any further delay to the new prospectus regime taking effect?
Finally, in the Treasury’s initial review of the prospectus regime, the Government committed to introducing a new regime of regulatory deference for offers into the UK of securities listed on certain designated overseas stock markets. The review was published almost two years ago, yet this SI does not introduce that deference mechanism for prospectuses. Can the Minister confirm whether such a regime remains under consideration and, if so, when and how it might be delivered?
My Lords, this will be quite fluid; I hope that some more papers will come my way as I start to speak and go through this. In closing, and in response to your Lordships’ remarks, this SI represents an important step in replacing assimilated law. I am really pleased that both noble Lords support the approach to regulation for financial services. We have the ability to tailor this to the UK in what I hope will be a coherent and logical way that will be conducive to UK economic growth in the long run, all of which we all collectively support. This instrument will be an important milestone in providing that improved competitiveness in our capital markets and, we hope, make some of that raising of capital in the UK easier and simpler.
I will turn to some of the very specific questions that noble Lords raised. There is some similarity and overlap between them. On the broad question of whether there is sufficient scrutiny of the new powers that the FCA is being given, those powers were given under the Financial Services and Markets Act. That discussion was had last year and pre-dates my time in this House, unfortunately. The reality is that those powers were given, and I think it is right. I understand the concerns that noble Lords and industry have regarding that unelected regulator having the full powers that it does. However, oversight by parliamentarians is really important. Now that the UK has left the EU, the Government intend to move the UK’s domestic model of financial services regulation so that financial services regulators—not just the FCA—make the detailed regulatory requirements within a framework set by government and Parliament.
It is right that the regulators should take much of the burden of responsibility for making those new rules. However, they need to come back to Parliament regularly with all the details that they are proposing. In fact, one of my noble friend Lord Hill’s key arguments was that the current prospectus regime is overly rigid and inflexible. It sets out very prescriptive rules in primary legislation, which means that when new methods of raising financing come along, the regulators were unable to adapt to them. They were unable to approve something if it was not prescribed in the first level of regulation.
This new burden will involve more work for the FCA and other regulators in due course. Indeed, the FCA has the ability and responsibility to levy the relevant fees to deliver its full responsibilities. I was asked whether it would be given more resources; if it needs more resources, it will raise them through its fees structure. We therefore feel that it is perfectly capable of dealing with the added rules that it will have to prepare. This House will no doubt scrutinise all these rules thoroughly; I am sure that the financial services regulatory committee will do its job thoroughly. I hope that the other place will also play its part in doing so, but I know that your Lordships’ House will do so.
With regard to redress under the scheme of arrangement, there are obviously compensation mechanisms built into this new set of prospectus rules and framework, and these will be protected. We will write with regard to the bankruptcy element of this. I do not have it in my briefing pack, but I will certainly get the noble Baroness, Lady Kramer, a specific answer on that. The noble Baroness is right that the public offer platforms have been caveat emptor up until now. The reality is that they are a very legitimate way of raising funds for businesses in this country. But when they are raising significant amounts of money, it is right that they have the same relative oversight that any other platform would have, whether it is an MTF or an exchange that would be raising capital. This will bring them under the scope of the regulatory framework, as far as the regulators are concerned.
With regard to the delays and the fact that will be in place only by 2025, I totally appreciate that these things take a long time but part of the scrutiny process for the regulators and their new powers is that they have to go through thorough consultation periods for every set of rules that they propose. They will indeed be doing that, and we therefore expect this to be by the first half of 2025.
On deference, the Government have published the outcome of their conclusion on the reforms to the prospectus regime and committed, in line with the stakeholder feedback, to prioritise the reforms taken forward in this SI. This note is supposed to be about deference and I am still trying to read it. I will write to the noble Lord, Lord Livermore, as I am not sure this will answer the question that he put to me with regard to that overseas deference mechanism. I will respond to that further. In the meantime, I apologise if this response was not as thorough as it needed to be.
(9 months ago)
Grand CommitteeThat the Grand Committee do consider the Online Safety (List of Overseas Regulators) Regulations 2024.
Relevant document: 6th Report from the Secondary Legislation Scrutiny Committee
My Lords, these draft regulations were laid before the House on 28 November last year. I am delighted that our ground-breaking online safety legislation is now on the statute book as the Online Safety Act 2023. I am sincerely grateful to noble Lords for their campaigning and collaboration throughout its passage. It is crucial that the Act is fully operational as quickly as possible; the Government are working at pace to deliver on this ambition. The statutory instrument being debated today is one of several that will enable the implementation of the Act by Ofcom.
This statutory instrument concerns Ofcom’s co-operation with and disclosure of information to overseas online safety regulators under Section 114 of the Act. The service providers that are regulated under the Act are global in nature. It is therefore vital that Ofcom can co-operate and share information with its regulatory counterparts in other jurisdictions to support co-ordinated international online safety regulation. In certain circumstances, it may be appropriate for Ofcom to support overseas regulators in carrying out their regulatory functions. For example, it may be beneficial for Ofcom to share information it holds to inform supervisory activity or an investigation being carried out by an overseas regulator. This could support successful enforcement action overseas, which could in turn have direct or indirect benefits for UK users such as preventing malign actors disseminating illegal content on regulated services.
In addition, international collaboration will increase the efficiency of online safety regulation. Ofcom and its international counterparts will be able to gather extensive information about regulated service providers in the carrying out of their functions. In some instances, it is likely to be more efficient for regulators to gather information directly where that information has already been gathered by an overseas regulator. As such, international regulatory co-operation and co-ordination are likely to reduce the regulatory burden on both international regulators and regulated service providers.
It is for these reasons that Section 114 of the Act builds on the existing information gateways available to Ofcom under the Communications Act 2003 by permitting Ofcom to co-operate with an overseas regulator for specified purposes. This includes powers to disclose online safety information to a regulator, either for the purposes of facilitating the overseas regulator in exercising its online regulatory functions or for criminal investigations or proceedings related to the overseas regulator’s online regulatory functions. In the absence of Section 114, Ofcom could not share information for these specified purposes under the existing information gateway under the Communications Act 2003. Under Section 1(3) of the Communications Act, Ofcom can share information only for the purpose of carrying out its functions, subject to the general restrictions on the disclosure of information under Section 393 of that Act.
Subject to your Lordships’ approval, this statutory instrument designates the overseas regulators that Ofcom can co-operate and share information with under Section 114 of the Online Safety Act as follows: Arcom in France; the Netherlands Authority for Consumers and Markets; the Federal Network Agency in Germany; the Media Commission in Ireland; the eSafety Commissioner in Australia; and the European Commission. The department consulted with Ofcom, and carefully considered its operational needs and existing relationships, when compiling the list of the overseas regulators to be specified. This will mean that the designated regulators are those with which Ofcom will be able to share information in an efficient and mutually beneficial manner. It is important to note that Ofcom would retain discretion over whether to co-operate and share information with the overseas regulators specified.
In order to ensure that any information sharing is proportionate, we have also considered whether the overseas regulator is a designated regulator of a bespoke online safety regulatory framework. Ensuring the protection of fundamental freedoms online has also been a key consideration. As such, we have considered whether the regulator’s autonomy is protected in law and whether the overseas regulator, as well as the jurisdiction that empowers it, upholds international human rights.
It is important to recognise that Ofcom is experienced in handling confidential and sensitive information obtained from the services it regulates and that there are strong legislative safeguards and limitations on the disclosure of such material. Overseas regulators receiving any information from Ofcom may use it only for the purpose for which it was disclosed. They may not use it for another purpose, or further disclose it, without express permission from Ofcom or unless ordered by a court or tribunal. Further to this, Ofcom must comply with UK data protection law and would need to show that the processing of any personal data was necessary for a lawful purpose. As a public body, Ofcom is also required to act compatibly with the Article 8 right to privacy under the European Convention on Human Rights.
We will continue to review this list of designated regulators, particularly as new online safety regimes are developed and operationalised around the world. I would like to open this matter for debate.
My Lords, I thank the Minister for his introduction. We all welcome the fact that the Bill is now an Act, of course. In a sense, these regulations are the first swallow of spring. We have many more affirmative SIs to come, I have no doubt, along with the codes of conduct that will eventually come to us in their final form. Like the Minister, I very much hope that we will proceed at speed in how we implement the terms of the Act.
Although this SI looks quite narrow in what it is about, it raises the whole question of co-operation between regulators. It is not just going to be about Ofcom helping overseas regulators, as set out in the regulations, in what they do; obviously, the Communications Act provisions will be important as well. It would be useful if the Minister could give us an idea of the areas of co-operation between the regulators that he thinks would be particularly fruitful. For instance, relationships with the Irish regulator will be extremely important in understanding how the DSA is working for it. How might its redress mechanism work? The DSA has explicit redress mechanisms under it whereas we are going to be working towards that in future; that is quite a long way away.
As the Minister will recall, other aspects are still somewhat inchoate under the Act. There is the question of research, which is an important area. How is that working? How are the other regulators seeing it operate? There is also the app store aspect, the other area of the Act that is not quite there in the way that its other parts are. It would be useful if the Minister could give us an idea of the areas that Ofcom will be working on.
I very much welcome the Minister’s assurances about the use of personal data and the kind of information that will be available. I assume that this will be of some importance, and that these case studies will involve some of the category 1 platforms to be discussed between the regulators. They will be helpful in making sure that, on an international basis, we see conformity by these large platforms to the kinds of regulation that are being installed. Does the Minister have an idea about the scale of the exchange of information that will be required? Clearly, it will require some resource by Ofcom in making security absolutely certain and being able to deliver on the assurances that the Minister has given.
Finally, it would be interesting to hear from the Minister whether other candidates will be coming down the track. Clearly, this instrument sets out the key regulators. Might others come along that are a speck in the eye, or does the Minister think that we have pretty much settled who the key regulators are and that, for the moment, they will be the ones with which we will co-operate under the terms of this SI?
My Lords, I join the noble Lord, Lord Clement-Jones, in welcoming this SI, and I thank the Minister for his kind comments about the work that went into the Bill. I share with him our pleasure that it is now in force and up and running; this instrument is proof positive that it is indeed so. Like the noble Lord, Lord Clement-Jones, I have many questions about what is happening, but certainly no objections to what is proposed.
The helpful Explanatory Memorandum explains that the context for this instrument is
“the global nature of service providers”
and how they operate. In that sense, I recognise that there are some gaps as regards the areas from where difficulties and troubles might come. For instance, Poland and parts of the eastern European bloc are thought to be centres from which emanate quite a lot of damage and a certain amount of material that is almost certainly illegal, yet I see no reference to any organisation—maybe there is none—that might be able to help Ofcom explore what is happening there. I am also concerned about Canada, because it hosts the biggest—I think—pornography company in the world. Again, I would have thought it would be helpful to Ofcom to be able to contact a collaborative organisation in Canada to work with, but I do not see one in the list.
That leads me on to another, related point. There is, and has been for some time, a network of likeminded organisations with which Ofcom has worked well in the past. There is a list of them on its website. Not all of them are in the Government’s proposals before us, and I wonder whether that in any way reflects a clash of views by the Government. Perhaps the Minster will comment on why we do not see Korea or South Africa, for instance. I would have thought that at least those with which Ofcom has a good working relationship at the moment should have been close to appointment. Perhaps there is some sort of competition there or element that I am not aware of. Any light that could be shed on that would be helpful.
Paragraph 7.5 of the Explanatory Memorandum attached to the SI very helpfully specifies that these regulations have certain minimum standards by which they are judged—a point picked up by the noble Lord, Lord Clement-Jones. I felt they were very appropriate to the ones that the Minister mentioned, including the bespoke regulatory framework itself,
“whether its autonomy is protected in law; and whether the … jurisdiction that empowers them, upholds international human rights”.
These are all good things, and I am pleased to see them mentioned in the Explanatory Memorandum and referenced in his speech.
That raises the question: what happens if any of these organisations depart from these standards? Will another procedure or SI be required to remove them from the list, or would they just cease to be part of the group with which Ofcom discusses things? It would be helpful to have on the record some idea of what the procedure would be if that were required.
My last two points are relatively small. There is a hint that more regulators will be considered and brought forward. That is good; I think we are all in favour of more places, since, as has been said, this is a global issue. What is the timing of that, roughly? Perhaps we could have some speculative ideas about it.
Finally, as the noble Lord, Lord Clement-Jones, pointed out, this is the first of many SIs coming forward for consideration by the House. In Committee on the Bill, we discussed at length how Parliament could be involved. This SI is probably not a very good example of that, but in the codes of practice considerable work will be required by Parliament to make sure that the affirmative resolutions are properly researched and discussed.
The proposal we made, which was accepted by the noble Viscount’s colleague, the noble Lord, Lord Parkinson, was the Parkinson rule: that the statutory instruments would, in fact, be offered to the standing committees. I do not think that would have been necessary for this instrument; I just wonder whether that is still in progress and whether it is the Government’s intention to honour the idea announced at the Dispatch Box that the legwork for many of the substantial SIs that will come forward could be done with advantage by the committees, which would inform the debates required in both Houses before these instruments can be approved. I look forward to hearing from the noble Viscount whether that is likely to happen.
As ever, I thank noble Lords for their valuable contributions to this debate. Needless to say, it is vital that we recognise the global nature of regulated service providers under the Online Safety Act. This SI will ensure that Ofcom can co-operate and share online safety information with specified overseas regulators where appropriate.
As set out, we will review on an ongoing basis whether it is desirable and appropriate to add further overseas regulators to the list. That is an ongoing activity. I anticipate that, as more and more jurisdictions enter the online safety regulation business, we will see an acceleration of the rate at which they can join on the lines we have set out.
I will now respond to some of the specific questions raised in the debate. The noble Lord, Lord Clement-Jones, asked about the types of information that Ofcom might share using this mechanism. The Government anticipate Ofcom being able to share information and co-operate with other regulators, which will lead to international regulatory co-operation, which is likely to reduce the regulatory burden on Ofcom, as well as international counterparts—for example, in relation to duties that are quite similar between regulators, such as duties to deal with illegal content. I anticipate that being a particular focus of their co-operative activities.
Positive benefits may also result from Ofcom supporting overseas regulators in carrying out their online safety regulatory functions and co-operating with relevant criminal investigations or proceedings. That co-operation might address a source of harm for UK users—for example, preventing malign actors disseminating suicide and self-harm content on regulated services.
Regarding the scale of the exchange, Ofcom itself would have discretion as to the scale of the information sharing that takes place through these provisions. However, it is likely to be beneficial to both Ofcom and its regulatory counterparts to engage in information exchange of this nature.
On the question from the noble Lord, Lord Stevenson, on why certain regulators have not been added, we will of course work closely with Ofcom and other stakeholders. He raised a number of interesting examples that would have been quite tempting to add to the list of criteria applied by us, which we, along with Ofcom, produced for the time being but on an ongoing basis. The intention is to review that to add other regulators that can add value in this way.
My Lords, the Minister raised a very interesting point. He said “criteria”; I do not think we have quite heard what those criteria are. That would be very interesting so that we can gauge for the future whether the possibilities that the noble Lord, Lord Stevenson, raised are real possibilities.
Indeed. Perhaps noble Lords will forgive me if I restate “criteria” as “factors considered”, because they are less algorithmic in that sense. Those factors considered would have been an existing relationship or ways of working together; bespoke online safety laws with a bespoke online safety regulator designated to those laws; regulatory autonomy, as I said; and, of course, a regulator within a jurisdiction committed to upholding human rights laws. I should add that the precise nature of any co-operation with any of the regulators on the list remains the decision of Ofcom and not the Government.
To address the question from the noble Lord, Lord Stevenson of Balmacara, about whether further statutory instruments will be required to remove overseas regulators from the list, I can confirm that this is the case. I hope that noble Lords agree with me on the importance of implementing the Online Safety Act as swiftly as possible. Therefore, I commend these regulations to the Committee.
Can I press the Minister on the point I made at the end? Will the generic approach to SIs in future be that they are offered to the standing and Select Committees of the two Houses before they are brought forward for consideration?
I will commit to going away and thinking about that one, because I feel that is a broader question about parliamentary oversight of regulation in general—if I have understood right.
It certainly can be taken that way, but actually it was a rather narrow question. His colleague, the noble Lord, Lord Parkinson, gave a statement at the Dispatch Box that the Government would use their maximum efforts to ensure that the two Select Committees—the DSIT Select Committee in the Commons and the Communications and Digital Committee in the Lords—would have the chance to look at draft SIs before they came forward. It is certainly more work, and we do not want that, but it would make it much easier for the Houses to be able to respond positively and accurately as they go forward.
I apologise to the noble Lord; I misunderstood. I very much see the value of this and will strain my sinews to deliver just that. Meanwhile, I commend these regulations to the Committee.
My Lords, before the Minister finally sits down, I want to put to him a very interesting question raised by my noble friend, who the Minister knows is extremely expert on these matters. Is this purely regulators for sovereign Governments or is there flexibility so that, for instance, a US state such as California, which has a particularly powerful governance regime and a strong regulator—it hits the criteria the Minister stated, other than being a sovereign country—could possibly be added to the list under these powers?
I think we would continue to entertain the possibility. That is why I slightly withdrew from the word “criteria” and went to “factors under consideration”—so that we would have the ability to adapt to such opportunities as might arise.
(9 months ago)
Grand CommitteeThat the Grand Committee do consider the Misuse of Drugs Act 1971 (Amendment) Order 2024.
Relevant document: 7th Report from the Secondary Legislation Scrutiny Committee
My Lords, this draft order, which was laid before Parliament on 27 November last year, proposes amendments to the Misuse of Drugs Act 1971 to control 15 substances as class A drugs, four substances as class B drugs and one substance as a class C drug. To achieve this, it proposes amendments to Schedule 2 to that Act, which sets out what drugs are controlled and their classification.
Fifteen synthetic opioids, including 14 nitazenes, will be controlled as class A drugs under the 1971 Act. This follows recommendations from the Advisory Council on the Misuse of Drugs in its report of 18 July 2022 and addenda of 19 December 2022 and 6 October 2023. The Government commissioned the ACMD for its advice following international control of three of the synthetic opioids—at this point, I beg noble Lords’ indulgence because pronouncing some of these names is not easy; they are isotonitazene, metonitazene and brorphine—under Schedule 1 to the United Nations Single Convention on Narcotic Drugs 1961, to which the UK is a signatory.
In addition to reviewing these substances, the ACMD considered the harms of other similar synthetic opioids and concluded that they pose serious acute health risks, reinforced by reports of their involvement in a number of drug-related deaths and near-fatal overdoses. The ACMD determined that their potency and availability present a significant potential threat to public health and therefore recommended the highest level of control as class A drugs under the 1971 Act. This is for all 15 synthetic opioids, including the three controlled internationally.
Additionally, three stimulants—diphenidine, ephenidine and methoxyphenidine—will be controlled as class B drugs under the 1971 Act by this order. This follows international control of diphenidine under Schedule 2 to the United Nations Convention on Psychotropic Substances 1971 in April 2021, after which the Government commissioned the ACMD to review its harms. In its report of 25 May 2023, the ACMD noted the involvement of these substances in a number of drug-related deaths worldwide and recommended that they be controlled as class B drugs under the 1971 Act. This is in line with similar dissociative class B drugs, such as ketamine.
Also to be controlled as a class B drug is Cumyl-PeGaClone, a synthetic cannabinoid receptor agonist—SCRA—which, similarly to diphenidine, was added to Schedule 2 to the United Nations Convention on Psychotropic Substances 1971 in April 2021. Many SCRAs are currently controlled as class B drugs under a generic definition in the 1971 Act. However, owing to its structure, Cumyl-PeGaClone falls outside the generic definition. The ACMD report of 25 May 2023 recommended that the Government consult relevant stakeholders on modification to the definition, which the Government have agreed to do. In the meantime, to address the harm it poses and meet our international obligations more quickly, the Government have opted to control Cumyl-PeGaClone individually as a class B drug, in line with other SCRAs. We will consult on modifications to the generic definition in due course.
Finally, remimazolam, a benzodiazepine, will be controlled as a class C drug under the 1971 Act. Remimazolam is the active ingredient in a product given marketing authorisation, otherwise known as a medicines licence, by the Medicines and Healthcare products Regulatory Agency in 2021. The ACMD recommended in December 2022 that it should be controlled as a class C drug as its potential harms are commensurate with other benzodiazepine drugs already controlled under class C.
I am grateful to the ACMD for the comprehensive reports it has produced. Those reports have been the foundation of this legislation. According to the ACMD’s advice, all the substances are psychoactive and therefore potentially subject to the offences under the Psychoactive Substances Act 2016. The 2016 Act contains offences for the production, supply, possession with intent to supply, import or export of a psychoactive substance where a person knows, or is reckless as to whether, it will be consumed for its psychoactive effects. It does not, however, contain an offence for the simple possession of a psychoactive substance, other than in a custodial setting. Medicinal products are exempt from the provisions of the 2016 Act, and medicines based on remimazolam are therefore currently exempt.
The control of these substances under the 1971 Act would make it an offence to possess them and impose higher penalties and enforcement provisions for supply and production offences. Those found in unlawful possession of a class A drug could face up to seven years in prison, an unlimited fine or both. Meanwhile, those who supply or produce a class A drug could face up to life imprisonment, an unlimited fine or both.
One of the substances, remimazolam, has a known medicinal value in the UK as it has been granted a marketing authorisation. To enable its use in healthcare, remimazolam will be placed in part 1 of Schedule 4 to the Misuse of Drugs Regulations 2001 by a statutory instrument made under the negative procedure. It is the Government’s intention that it will come into force on the same date as this affirmative order. The other 19 substances will be placed in Schedule 1 to the 2001 regulations by that same negative statutory instrument. This is because they have no known medical or therapeutic value in the UK and will mean that they can ordinarily be accessed only under a Home Office-controlled drug licence. Again, this follows ACMD advice. Cumyl-PeGaClone will also be placed in Schedule 1, in line with other SCRAs already controlled under the 1971 Act and 2001 regulations.
These substances, excluding remimazolam, will therefore be added to part 1 of Schedule 1 to the Misuse of Drugs (Designation) (England, Wales and Scotland) Order 2015. Controlled drugs are designated where the Secretary of State is of the opinion that it is in the public interest for production, supply and possession of that drug to be wholly unlawful or unlawful except for research or other special purposes, or for medicinal use of the drug to be unlawful except under licence.
Drug misuse ruins lives and adversely affects society as a whole. The Government have a responsibility to protect the public, their safety and their health, and that is why we are proposing this action. As I have set out, these substances cause or have the potential to cause significant harm to both the individual who uses them and the communities in which they live, and must be subject to stricter controls. I commend this order to the Committee.
My Lords, in speaking for these Benches I would ordinarily speak from a health perspective. From our point of view, a lot of the drug abuse issues fall within that category. We are obviously dealing with a Home Office statutory instrument today, but I hope that the Minister will indulge me if I put some questions that come from that angle of considering the impact on individuals of the drugs we are due to control.
The first is around how we will monitor, in particular, the prevalence of the synthetic opioids that are to be classified by the instrument we are considering. I think we have all looked in horror at the situation in the United States, where the firewall that exists between heroin and other forms of drugs has broken down, in a sense, through the distribution of synthetic opioids to a much broader demographic who, it seems, feels more comfortable taking them than would feel comfortable taking heroin. But the medical harm is just as severe—in some cases, more severe—so I will be interested to hear from the Minister how the Government intend to monitor the prevalence and usage, particularly across different demographics, of these synthetic opioids, as well as prohibiting them, which is right. It is correct that we are following the advice of the advisory council here, but also really important that we understand the way in which these synthetic opioids are being consumed within the community.
The second issue I want to raise follows on from that, which is to consider how treatment services will deal with people who present because they have an addiction to the drugs we are considering. The numbers are quite stark: in 2021-22, just over 289,000 people presented for treatment services. Nearly half of them presented for opiate addictions and over 70% had mental health problems. It is critical to understand, as we broaden the net on the drugs that we bring into scope, how we will be able to respond to the people who come to the attention of the authorities because they are using these opiates—and get them off those. Just as important as any attempt to ensure that they are prosecuted is to get them out of that drug dependency and back into a normal state. Again, I want to understand what consideration has been given to how treatment services will need to be adapted to cover this broader range of synthetic opiates that we are bringing into scope.
My Lords, we too welcome the amendments in this instrument. I will start with two specific questions and then make some more general comments.
First, beyond adding the specific substances which the Minister referred to in his speech and in the document, what more are the Government doing to address the risks posed to our communities from drugs more generally? The second question is about a particular drug, xylazine, a non-opioid veterinary anaesthetic that is being used in combination with synthetic opioids to devastating effect. I understand that the Minister for Crime wrote to the ACMD in June to ask it to consider the harms of this drug and that he is still waiting for a response. How long should the Minister for Crime expect to wait before he gets either action or a response to his letter about this drug?
Those are my two particular questions. More generally, I want to use the same structure as the noble Lord, Lord Allan. The first question he asked was about monitoring the prevalence and usage of synthetic opioids. As I mentioned in other speeches, including in the King’s Speech debate, I travelled to North America in the summer and went to Portland, Oregon. I also went to Seattle in Washington state. I was shocked by the amount of drug use on the streets. I saw hundreds if not thousands of people sleeping rough on the streets of those two cities. I saw people shooting up in front of me in the middle of those cities—and I had young children with me. It was a truly shocking sight.
While I was there, I visited a court that dealt with drug issues. I also had breakfast with a district attorney who is an elected prosecutor. We spoke about the way their current drug policy is working. What was interesting and depressing to me was the uniform agreement across the political spectrum that it was a disaster, yet they did not agree on the solution to that disaster; there was an ongoing political debate on it. The district attorney also said to me—it is relevant to this debate—that there is a strong suspicion, or belief, that synthetic opioids are getting into prescribed drugs. He told me that he had gone on holiday to Mexico but had forgotten some of his normal prescription drugs, so he had to go and buy the drugs while in Mexico. He became aware that synthetic opioids are illegitimately getting into prescribed drugs. This is a very worrying development; it is all over the internet in that part of the world. It is something that we should be aware of as a possible problem over here as well. It really is a huge issue. I am sure that the Minister is aware of it, but it would be good to hear what is being done to monitor the scale of this problem, which is potentially coming our way.
The second point made by the noble Lord, Lord Allan, was about treatment services and more drugs being brought into scope. I am quite worried about the experiments being carried out in Glasgow. I suppose that would be a good question for the Minister to answer: what monitoring are the UK Government doing on the experiments being done around drug treatment centres in Glasgow? I will leave it there.
My Lords, I thank both noble Lords for their contributions to this short debate. I take on board the personal experience of the noble Lord, Lord Ponsonby, in the States; his observations are obviously extremely interesting. Perhaps it is worth pointing out that just under half of all drug poisoning deaths registered in this country in 2022 already involved an opiate of some sort. The noble Lord made some acute points; of course, the Government remain aware of the situation overseas and continue to monitor that as much as they monitor the situation here.
The noble Lord, Lord Ponsonby, asked me a specific question about xylazine. The ACMD is independent, so I cannot comment on its timeframes, but we are hoping for its response on this particular drug in early 2024. Obviously, we will come back to this as and when we have its response.
The noble Lord, Lord Allan, asked about monitoring and the noble Lord, Lord Ponsonby, backed that up. As I said, UK agencies are highly alert to the threat from synthetic drugs, including synthetic opioids such as fentanyl as well as synthetic cannabinoids and benzo- diazepines, which have been linked to drug-related deaths in this country. Along with law enforcement partners, the UK Government stand ready to respond to the threat from synthetic drugs. They have established a cross-government task force to monitor that threat and to lead and co-ordinate the government response to the risk from these synthetic opioids in the UK. The aim of the task force is to consider evidence-based policy; programmatic and legislative decisions in response to the level of risk; and the nature of synthetic opioids. Members of the task force include the Home Office, the Office for Health Improvement and Disparities, the Ministry of Justice, the National Crime Agency, HM Prison and Probation Service, Border Force and the police.
Through the UK’s drugs strategy, which was published in December 2021, we are implementing an end-to-end plan to disrupt the supply of all drugs at every stage of the supply chain from a source to the street. As part of that strategy, we have provided additional resources to the international networks of the NCA and the Home Office in key source and transit countries; this is for them to work with other Governments in identifying and disrupting cartels that seek to exploit the UK, as well as to seize drugs before and during their journey to the UK and the EU.
Also outlined in the strategy, we have increased the availability of naloxone, including naloxone nasal spray, to prevent drug-related deaths, and have committed to supporting local provision of a broader range of medicines, including newer medicines such as long-acting buprenorphine injection. We believe firmly in the importance of engaging with experts and delivery partners to respond swiftly to the evidence of emerging drug threats, including learning from international partners through international fora such as the US-led Global Coalition to Address Synthetic Drug Threats.
On the health situation that was brought up by both noble Lords, FRANK, the Government’s free drugs advice service, contains information on synthetic opioids, synthetic cannabinoids and benzodiazepines, which will be updated to reflect the changes when this legislation comes into force. The Department for Education has also worked with the Office for Health Improvement and Disparities to make sure that good-quality teaching resources are available for teachers providing drug, alcohol and tobacco education, and lesson plans on drugs, alcohol and tobacco are available on the PSHE Association website.
We are of course concerned that banning these substances will discourage people from access to treatment services, but the Government’s drugs strategy, From Harm to Hope, published in December 2021, is clear about the Government’s ambition to achieve stigma-free treatment, providing the full, positive impact of treatment services for those seeking help. But, noting the potential harms associated with misuse of these substances, we believe it is necessary to take action to restrict access to these drugs and reduce their misuse. Through the drugs strategy, we are investing more than £2.8 billion over three years to support people through treatment and recovery, which includes support for those who have used a range of drugs and suffered various health harms.
Of course, key to all this is reducing the demand for drugs. We are committed to reversing the rising trend of drug use in society, to protect vulnerable people from harm and exploitation. It enables us to keep our communities safe and we must therefore reduce the demand for drugs, which fuel violence and exploitative criminal markets. Around 3 million people in England and Wales report using drugs each year, putting themselves at risk and driving a violent and exploitative supply chain, including through so-called recreational drug use. Through programmes announced as part of the drugs strategy, such as drug testing on arrest, and our plans to roll out pilots to change behaviour and attitudes towards drug use, we will provide the powers and access to appropriate interventions and support. We also know that we need to step up action in addressing the visible forms of drug use within our communities, so we will work with our enforcement partners to see what more we can do to tackle this, while ensuring that those who need treatment and support are diverted into the appropriate services.
The noble Lord, Lord Allan, asked a very specific question about remimazolam. There are no known established legitimate uses for any of these substances except remimazolam. The Government recognise the importance of ensuring that that in particular remains available for legitimate and lawful purposes, so in line with the recommendations from the ACMD, remimazolam will be placed in part 1 of Schedule 4 to the 2001 regulations, as I said in my opening remarks. That will enable lawful access in healthcare settings, subject to the requirements of the 2001 regulations. The remaining 19 substances will be placed in Schedule 1, as I mentioned, and access will therefore be permitted only under a Home Office-controlled drug licence. That will ensure that organisations can still lawfully undertake research with these substances, should they choose to do so.
On the specific question about paramedics, that is a Department for Health situation: it would have to request that paramedics be able to prescribe or use this drug in the appropriate way. I hope that answers the questions that I have been asked and, again, I thank both noble Lords for their participation in this debate. These are dangerous substances with the potential to cause significant harm, and they should therefore be subject to the strict controls under the 1971 Act. With that, I commend this order to the Committee.
I specifically asked about the Glasgow drug consumption rooms and whether there is a UK oversight of the way they are operating, rather than just a Scottish Government oversight.
With apologies, I forgot that question and, as it happens, I also do not know the answer—so I will have to find out and write to the noble Lord.
(9 months ago)
Grand CommitteeThat the Grand Committee do consider the Immigration Act 2014 (Residential Accommodation) (Maximum Penalty) Order 2023 and the Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) (Amendment) Order 2023.
Relevant document: 5th Report from the Secondary Legislation Scrutiny Committee
My Lords, the first instrument for noble Lords to consider in this single debate is the Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) (Amendment) Order 2023.
The Home Office is the first line of enforcement against illegal migration and works across government to prevent individuals without lawful status in the UK accessing work, benefits and services. Illegal working often results in abusive and exploitative behaviour, the mistreatment of unlawful migrant workers and revenue evasion. It can undercut legitimate businesses and have an adverse impact on the employment opportunities of people who are lawfully in the UK.
Employers have a role to play in ensuring that all their employees have the right to work in the UK. Since 2008, this has been underpinned by the right-to-work civil penalty scheme, under which employers are required to carry out prescribed checks on individuals before employing them. This is to ensure that they are lawfully allowed to work in the UK. If an employer employs somebody who does not have the right to work in the UK, they may be liable for a civil penalty. Employers can avoid liability for a civil penalty if the correct right-to-work checks are carried out before the individual commences employment.
The level of civil penalty for non-compliance has remained the same since 2014, diluting its impact as a deterrent to those who facilitate illegal working, including instances of labour exploitation. Accordingly, the Government intend to increase the civil penalty for employers from £20,000 to £60,000, by virtue of the Immigration (Employment of Adults Subject to Immigration Control) (Maximum Penalty) (Amendment) Order 2023.
This will ensure that the scheme continues to act as a deterrent in respect of employers who employ illegal migrants and send a clear message that only individuals with a right to work in the UK can secure employment. In the case of a first breach, the starting point is £45,000. Employers who elect to pay the penalty via the fast payment option will benefit from a further 30% reduction in the overall amount, after reductions have been applied for any specified mitigating factors.
It remains a criminal offence for migrants to work illegally in the UK, or where the individual is in the UK unlawfully. The offence of working illegally carries a maximum penalty of 51 weeks’ imprisonment in England and Wales and six months’ imprisonment in Scotland and Northern Ireland, or a fine.
The second instrument for noble Lords to consider in this single debate is the Immigration Act 2014 (Residential Accommodation) (Maximum Penalty) Order 2023, which will be in force in England only.
Since 2014, anyone offering rental accommodation in the private rented sector should carry out checks on new adult occupiers before renting to them. This is to check that the individual has the right to rent, and is commonly known as the right-to-rent scheme. Allowing those without a lawful right to be in the UK to rent property enables them to establish a settled life in the UK. This creates costs to the public purse, including through the provision of local authority support, and reduces the amount of housing stock available to those who are lawfully residing in the UK. It often allows abusive and exploitative behaviour, with rogue landlords housing unlawful migrants in unsafe accommodation.
The maximum civil penalty for landlords, including letting agents, will be raised—by virtue of the Immigration Act 2014 (Residential Accommodation) (Maximum Penalty) Order 2023—from £3,000 to £20,000. In the case of a first breach, the starting point is £10,000. Landlords and letting agents who elect to pay the penalty via the fast payment option will benefit from a 30% reduction, from £10,000 to £7,000 or from £5,000 to £3,500 as applicable. As is the case now, the maximum penalty will be levied only on an employer, landlord or letting agent who has breached one of the schemes on more than one occasion in a three-year period, where the fast payment option was not utilised and where no specified mitigating factors apply.
Employers, landlords and letting agents can also appeal a civil penalty decision if, following an objection to the Home Office, that decision has been upheld. An appeal must be on the same grounds as the objection and an employer, landlord or letting agent must make the appeal within 28 days, registering it at a county court or sheriff’s court. This allows accidental non-compliant employers, landlords or letting agents safeguards against penalties.
In summary, these draft orders aim to change the behaviour of rogue employers, landlords and letting agents; to eliminate any financial gain or benefit from non-compliance; to tackle the harm caused by regulatory non-compliance where appropriate; and to deter future non-compliance. I therefore commend them to the Committee.
My Lords, these regulations are a regrettable consequence of our failure to prevent—it is extremely difficult to prevent—deter or remove illegal immigrants from this country. I hope that the Rwanda Bill, which we will consider shortly, will belatedly change that situation.
The reason why I have chosen to intervene briefly in this debate is to seek information. When I was the Secretary of State for DSS, I was told that it was impossible to work legally in this country without a national insurance number—a NINo. You cannot get a national insurance number unless you can demonstrate the legal right to work. It then emerged that there were far more national insurance numbers than people of working age in this country. Various explanations were put forward—they were numbers of people who had emigrated and the numbers were not rescinded, and so on.
First, I want to know whether that issue has been cleared up. Can my noble friend the Minister confirm that it is necessary to have a national insurance number to be employed? The employer has to ask for it and obtain it; it will then go into the system and, if the number is invalid, it will be thrown out. Secondly, is it possible in any way to obtain a national insurance number if you do not have the legal right to work? Are those two aspects effective in preventing illegal immigrants obtaining legal employment or accessing benefits? I appreciate that they will not stop people employing people illegally and failing to report that to the authorities, the tax authorities and so on.
I appreciate that my noble friend may not have the answers to those questions here and now but it would be helpful if we could clear this up and put on the record the precise effectiveness of national insurance numbers in dealing with these issues.
My Lords, the purpose of these two orders is to create a more hostile environment for those who seek to enter this country by routes other than the ones that are available to them, which are very limited indeed. I have a range of questions but my principal concern regards the perverse impact of these orders and how they will act as a deterrent to people who are legally entitled to stay in this country, have been given the right to remain and are seeking to establish themselves with a new life here.
My comment is based on the evidence provided to us. There is limited evidence that the current regime is not working. Of course, I understand that one might wish to increase the fees in line with inflation each year, which has not happened for 10 years, but one necessarily has to ask oneself this: if it is working, why does it need this extra change to make it happen? I will come back later to the evidence that the Government have provided. Without that strong evidence, there is an indication to me that this is an income stream for the Government. I am not necessarily going to complain about that but it certainly does not seem absolutely critical to the ambitions laid before it.
I want to look at the perverse impact on those who have been given the right to remain: those who are starting out on a new life here in the United Kingdom and are faced with the difficult, dual challenges of finding both a home and work. In the rented sector in particular, we currently have a housing crisis, with the private rental sector incredibly competitive for renters. Tenant demand for rental property was up by 54% in July last year. In that context, will landlords choose a tenant who may need to go through the right-to-rent checking process and risk a fine? Or will they opt for someone who has the right to rent, such as someone who has a passport versus someone who does not—or, more worryingly, someone who is of a different ethnic background?
This is a similar problem for jobseekers, who require an employer to check their right to work. We have to be live to the fact that certain profiles of people are at risk of discrimination as a result and will find it harder to find accommodation and employment than their white British counterparts. Protections and remedies need to be real and effective, and we need to consider whether this indirect impact is proportionate to achieving the stated aim of the policy: to deter irregular migrants.
The stated aim of the increase in these penalties is an effort to deter irregular migrants from entering the United Kingdom in the first place, as well as to encourage those without legal status to leave the United Kingdom. This policy has now been in force for 10 years, since 2014. Therefore, we should by now have some evidence of whether the policy works—that is, whether it has contributed to a reduction in people remaining in the United Kingdom after their leave has expired or to fewer people entering the United Kingdom without leave in order to work. My first question to the Minister is this: what is the evidence that this policy has had the desired impact on deterrence since it was introduced in 2014?
My Lords, I hesitate to interrupt the noble Lord but there is a Division in the Chamber. The Committee will adjourn for 10 minutes.
I repeat the question I ended with: what is the evidence that this policy has had the desired impact on deterrence since it was introduced in 2014? Last week, I spent some time with a third-sector body that provides support for those with the right to remain in the United Kingdom. I heard direct evidence that, in the competition for rented accommodation, landlords are opting to choose a tenant where there is no need to go through the right to rent checking process and risk a fine. They are opting for someone who can provide the simplest proof of their right to rent. Increasing penalties by so much increases this risk of outlying those who are from a different category of people. It is particularly hurtful because it impacts very much on the bottom end of the rented market sector.
Paragraphs 22, 24 and 43 of the economic note are very instructive to understanding the strength of the evidence. Paragraph 22 says that there is “uncertainty”, paragraph 24 talks about “limited certainty”, and paragraph 43 says that “limited evidence” is available. Is that evidence available?
Secondly, what enforcement action is there against employers and landlords who discriminate against potential employees or potential renters on the basis of nationality or any other protected characteristic? How often has that enforcement been used? In the current housing crisis, where there are many renters for each rental property, to what extent is this policy increasing the barriers for the non-white British population legally in the United Kingdom to access housing?
The Home Office’s equality impact assessment associated with the instruments says:
“Any indirect impact is the result of an employer or landlord choosing to discriminate for which a remedy is likely to be available to the individual under the Equality Act 2010”.
Recently, I saw a sign in a rental agency in east London that said simply “no DWP”. Those of us with long memories will remember signs that said, “No Irish, no blacks”. Given the difficulty of providing proof, what data is there, if any, on the number of people who have used the Equality Act remedy? How will the Home Office keep the impact of this policy on race under review, as it states it will do in its equality impact assessment?
Finally, paragraph 25 of the economic note talks about familiarisation and says, basically, “We don’t need to do anything to inform employers or landlords about this because it’s just a small change and they already know about it”. But given the size of this particular increase in fines, it means there is a case, because we do not have the evidence, for ensuring that those who rent or offer jobs understand the importance of non-discrimination in this whole process.
Creating a hostile environment for those who have been granted leave to remain and who want to contribute to our economy is not an outcome that I would support. I hope the Minister would agree.
My Lords, on the draft immigration order for employment of adults subject to immigration control, the Labour Party supports the principle of preventing those with no legal right to reside in the UK undertaking paid employment here and implementing penalties that act as real deterrents for employers who deliberately break the law, so we will support the increasing of the penalties from £15,000 to £45,000 per worker for a first offence. However, given the potential impact on employers, the lack of consultation with businesses, especially small businesses, is disappointing. We would argue that it demonstrates, yet again, the lack of a clear, thought-out strategy towards immigration and tackling illegal work.
The draft order on residential accommodation would increase from £3,000 to £20,000 the maximum penalty for renting a property to someone who does not have the right to rent in the UK. Again, there has been a lack of consultation. I repeat the point made by the noble Lord, Lord German: there are known unintended consequences of right-to-rent checks and penalties for breaches. Landlords are keen to avoid large penalties and might discriminate against British nationals and lawful migrants who have the right to rent but who, perhaps because of their race or nationality, face discrimination and difficulty in getting those rentals. The noble Lord asked how this is monitored: is it done through the Equality Act, which is the remedy for landlords who are discriminating against legal people trying to rent? What are the Government doing to monitor this situation and what levels of enforcement are there against landlords who illegally discriminate against particular groups of people?
My Lords, I thank all noble Lords for their contributions to this debate. We can deliver a comprehensive response to tackle illegal migration only if we work with UK employers, landlords and letting agents to deny employment and housing to those without the right to work in this country. Illegal working and renting are the main incentives for illegal migration and often involve exploitation and unfair competition. The civil penalty scheme encourages employers, landlords and letting agents to comply with their obligations to check the right to work and rent of all employees and occupiers, without criminalising those who make a mistake.
Legitimate employers, landlords or letting agents will not face higher costs through increased penalties. The scope of the penalty regime has not changed. Those who continue to act in a legitimate manner, by checking and recording the documents of their employees or tenants, will not be affected by the strengthened penalty regime. I was interested in the comments from the noble Lord, Lord Ponsonby, on consultation. Given what I have just said, who would the noble Lord consult with—those who are legitimately employing and renting or those who are not? I would have thought that would make the consultation a little problematic to set up.
I will try to answer all of the various questions asked of me. On my noble friend Lord Lilley’s question, as I understand it, a national insurance number is not a prerequisite for the right to work. You can prove the right to work alongside another document, such as a birth certificate. This is a DWP matter, so I will commit to taking this to the DWP and ask that department to write on the specifics of his question.
All noble Lords have asked perfectly sensible questions about whether the schemes are discriminatory, because there are risks of that sort of thing. On 21 April 2020, the Court of Appeal found the right-to-rent scheme to be a proportionate means of achieving its legitimate objective of supporting a coherent immigration system in the public interest. As a result, the court considered the scheme to be justified and not in breach of the prohibition on discrimination in Article 14 of the European Convention on Human Rights when read with Article 8, which is the right to respect for private and family life.
The scheme is capable of being operated proportionately by landlords and letting agents in all cases. The very purpose of the statutory code of practice on avoiding unlawful discrimination when conducting checks recognises and seeks to address the risk of discrimination. While there may be discrimination on the part of a minority of landlords and letting agencies, that is because they have chosen not to comply with the spirit of the scheme, whether for their own perceived administrative convenience or some other economic advantage.
We have made it easy to carry out checks digitally, with no requirement for landlords, letting agents or employers to understand the types of documents renters and employees have. In some cases, it is actually easier to bring a migrant into employment or a residential tenancy agreement than a British citizen. We continue to work closely with the rental sector through landlord representative groups and have recently contacted Citizens Advice for further engagement. A considerable amount of work and thought has gone into this and it is governed under the code of practice, which is on GOV.UK.
The noble Lord, Lord German, asked about the economic impact on lawful migrants entering the country. Employers, landlords and letting agents may favour to employ and rent to British and Irish nationals, who they see as low risk as they do not have time-limited leave and do not require further checks. The lawful migrant may therefore choose not to enter the UK. But the Home Office has published the statutory code—it is on GOV.UK—on how to avoid unlawful discrimination when undertaking checks. The guidance clearly stipulates that employers, landlords and letting agents are advised to provide individuals with every opportunity to demonstrate their right to work or rent. They should not discriminate on the basis of nationality, or any of the other protected characteristics. It is clear that those who discriminate are breaking the law.
Employers, landlords and letting agencies are encouraged to familiarise themselves with the guidance and the statutory codes of practice. It is considered that any indirect discrimination in this limb is justified as a proportionate means of achieving a legitimate aim: operating and enforcing a fair immigration system, protecting taxpayer-funded services and protecting vulnerable migrants from exploitation by seeking compliance with regulation.
I have already dealt with the consultation. However, I should also say that the Home Office is not under a duty to consult but, since the proposals to increase the civil penalties were announced in August, it has undertaken proactive, wide-reaching communications with employers, landlords and letting agents. Home Office officials have supported over 30 forum events as of 12 January and reached over 11,000 stakeholders in the sectors. It is clearly wrong for stakeholders to say they have not had an opportunity to be made aware of the Government’s intentions.
We used an economic note instead of an impact assessment because the costs for non-compliant landlords, employers and letting agents were not taken into account, so the better regulation threshold was not met. Our published economic note shows that a total increase of around £16 million might be expected over five years after higher penalties come into force. This is the central scenario and measures receipt changes for the right-to-work and right-to-rent schemes combined. There is uncertainty on this figure for several reasons, including the number of civil penalties issued and the recovery rate to expect for civil penalties of higher values than seen historically.
On enforcement activity, between January 2023 and November 2023, more than 1,400 right-to-work civil penalties were issued; that is an increase of 40% on the same period in 2022. The value of the right-to-work civil penalties issued was more than £26 million, which is 45% more than in the same period in 2022. Between January 2023 and the end of September 2023, 10,509 enforcement visits took place, of which 4,721 were illegal working enforcement visits. In 2022, 6,865 enforcement visits took place, of which 2,808 were illegal working enforcement visits. Illegal working enforcement visits have increased by more than 40% in 2023 from the same period in 2022.
The noble Lord, Lord German, asked where the funds go. They are collected from civil penalties and are required to be paid into the Consolidated Fund after deductions from processing costs.
I think I have dealt with all of the questions. I have committed to write to my noble friend Lord Lilley on the DWP-related matters. Addressing illegal working and renting not only protects the domestic labour and housing market but identifies unscrupulous employers, landlords and letting agents who exploit vulnerable migrants. Equally, it ensures that only those in the UK legally with permission to work and rent are able to do so. On that basis, I commend these orders to the Committee.
That the Grand Committee do consider the Wine (Amendment) (England) Regulations 2024.
Relevant document: 7th Report from the Secondary Legislation Scrutiny Committee
My Lords, I declare my farming and land management interests as set out in the register. These regulations were laid before this House on 4 December 2023.
The Government are making this legislation to fulfil obligations on the marketing of wine in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—the CPTPP. This follows the UK signing the protocol of accession last year. This instrument will introduce rules that govern how products marketed as ice wine must be produced and marketed.
Ice wine is a type of dessert wine produced from grapes that have been frozen while still on the vine. Annual global production of ice wine is very small but can yield high-quality wines that sell at premium prices. It is therefore important to make sure that ice wine is marketed correctly to support consumers in their choices. Ice wine is currently not produced domestically but it is imported. The instrument inserts a restriction in Regulation 2019/33 for ice wine where the product can be marketed as ice wine or under similar terms only if the wine is made exclusively from grapes naturally frozen on the vine.
The instrument being debated today applies this restriction in England. For continuity, separate instruments applying to Scotland and Wales are also being made. This type of imported wine will continue to be able to move from Great Britain to Northern Ireland via the Northern Ireland retail movement scheme under the Windsor Framework.
This instrument will also update the list of oenological practices, processes and restrictions that may be used in the production and conservation of wine and other wine products. The changes are intended to improve the quality of wine and are highly technical in nature. For example, they include discontinuous high-pressure processes, which reduce yeast contamination in wine; they therefore reduce reliance on sulphites to preserve the wine and help improve its fermentation.
These changes align with those adopted by the International Organisation of Vine and Wine—the OIV—since 2019 and approved by the UK through our membership of that organisation. The Scottish Government have adopted the same changes and the Welsh Government are in the process of doing so. This will ensure that producers across Great Britain will benefit from the latest technological developments and winemaking practices. Broadly similar provisions already apply in Northern Ireland. This instrument was notified to the World Trade Organization’s Committee on Technical Barriers to Trade and no comments were received.
In summary, this instrument makes technical but necessary changes to the legislation. It will enable the UK to comply with CPTPP commitments and ensure that British wine-makers can use the most up-to-date winemaking techniques. I beg to move.
My Lords, noble Lords have many impressive attributes, but being in two places at once in person is not one of them. So, because my noble friend Lady Bakewell of Hardington Mandeville is moving an amendment in the Chamber, the Committee will have to put up with me.
I thank the Minister for his introduction to this statutory instrument. This is the second instrument on the provisions around wine in a short period of time. Is it a trend? Apparently, the Secondary Legislation Scrutiny Committee has had something to say about the SIs in both cases and has drawn them to the attention of the House.
These regulations prohibit the labelling and marketing of wine as ice wine unless the grapes used have been frozen on the vine as opposed to being subject to freezing afterwards. I had always thought that genuine ice wine was exactly that: wine made with grapes frozen naturally on the vine, concentrating the sugar and making the wine both delicious and very expensive.
I understand that these regulations are necessary to fulfil the obligations in the CPTPP, which was signed by the Government in July last year and debated in the Chamber earlier this afternoon. I also understand that Canada is a major producer of ice wine.
This SI applies to wine for the English market only. The Minister mentioned that Scotland and Wales are progressing their own SIs, which will fit in with this one. Can he say when it is likely that those SIs will be in place? There is likely to be considerable confusion if this is not done quickly, as a bottle of wine is easily transported across borders; confusion could result.
There are also likely to be issues around the labelling of ice wine in Northern Ireland, which is subject to the regulations that exist in Europe and not those that will pertain under the CPTPP. Perhaps the Minister can say something about that.
As a member of the International Organisation of Vine and Wine since 2019, the UK now has to abide by the regulations adopted by that organisation, which, according to the Explanatory Memorandum, change on a fairly regular basis. This SI is temporary and likely to change again in 2025 when it will be revoked. Can the Minister provide any clarification on whether Scotland, Wales and Northern Ireland will at that stage have the same regulations as England—or will all four nations be operating under separate arrangements on ice wine? The SLSC raised the issue of confusion around different rules on ice wine being applied across the devolved nations, including for methods of production.
The Explanatory Memorandum, at paragraph 11.1, indicates that the Government
“will put the necessary guidance regarding measures contained in the instrument on GOV.UK”
once Parliament has approved it. Is it therefore safe to assume that this instrument will be presented to the Chamber tomorrow for approval and that the guidance will appear on the website later tomorrow afternoon? Given the likelihood of confusion, I would like the Minister’s reassurance on this matter.
The Wine and Spirit Trade Association is concerned about the excise duty system and the need to make permanent the temporary easement mechanism. This is the single most important issue for the UK wine sector. The temporary easement taxes all wines in the 11.5% to 14.5% ABV range at a single rate of the mean, I suppose: 12.5%. This is due to end on 1 February 2025. If this is not made permanent, UK businesses will encounter increased bureaucracy and administrative burdens, and therefore increased costs, so will the Minister speak to his colleagues in the Treasury to make this easement permanent and thus support our flourishing wine industry?
This is a fairly straightforward SI which is linked to the CPTPP, and presumably ice wine will begin to appear on our supermarket shelves correctly labelled in the fairly near future, but I do not think I will be able to afford it.
My Lords, it is very difficult to follow the noble Baroness after such an erudite speech, but I have a few quick questions to put to my noble friend. As I see it, this statutory instrument is being introduced only because we need to meet the requirements and obligations on the marketing of wine in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. There is nothing intrinsically necessary in the labelling of ice wine that would otherwise have required legislation.
I therefore turn to why we are doing this and why it was originally agreed. I am sure the Minister has had many a glass of fine ice wine, not least from Canada or Germany. The definition of ice wine is that the grapes are left on the vine, as my noble friend said, until the temperature drops to a specific level, which I think is between minus 8 degrees and minus 14 degrees Celsius, which allows the grapes to freeze naturally. Then, when the pressing takes place, they are quickly harvested and pressed while still frozen, the frozen water content remains in the form of ice crystals and only the concentrated sugary juice is extracted. If, by chance, the frost passes quite quickly and the pickers go to the same vineyard and take the grapes from the same vine during the day, when it is marginally above freezing, can that still be called ice wine?
Secondly, and related to that, the alternative method of making ice wine from grapes follows after the harvest: the grapes are harvested and then artificially frozen to a temperature similar to that used in the natural freezing on the vine method. Frozen grapes are pressed much the same and the concentrated juice is collected, similar to the process with the grapes frozen on the vine. They do not need to go through the technical stages that my noble friend has outlined; it could be exactly the same process. As I understand it, there is therefore a distinction to be made between ice wine that is made from grapes frozen after harvest and grapes frozen on the vine, although I challenge the Minister to tell me the difference, if he were given a blind tasting, between the two.
So the Minister comes forward with an excellent SI that says we cannot have anything that is
“a term similar to a term mentioned”
as ice wine. I would be interested to know what a similar term to ice wine might be. We always want to get the legislation exact. I imagine that a lengthy court case might ensue as a result of asking: what is “a term similar to” ice wine? Could it be called “frosty wine”, for example? Would that be “a term similar to” ice wine? I know that the noble Baroness, Lady Hayman, has the opportunity to speak on behalf of the Opposition, but I give the very fine officials who are sitting behind the Minister the opportunity to answer those two questions. It would be very helpful to me and, I am sure, to the Committee to know those answers.
I thank the noble Lord for introducing this statutory instrument. I will not go into the details of what it is about; he explained it very well, as has the noble Baroness, Lady Walmsley, but I have a few points and questions.
As we have heard, the SI is largely to give effect to the relevant part of the CPTPP because Canada is the major producer of ice wine. I have been to a number of vineyards in Canada that produce ice wine. In fact, I did splash out, buy some and bring it back. If you have not tried ice wine, it comes in lovely slim bottles and is very nice indeed. In response to the noble Lord, Lord Moynihan, my recollection—I could be wrong—from the tours of the vineyards is that it has to be harvested when it is frozen; you cannot defrost the grapes, then pick them. It is important that we are protecting what is a very distinctive product, so we clearly support this SI.
While we are on the issue of the CPTPP, are there going to be any other SIs coming through Defra regarding trade and the CPTPP? I do not know if the Minister knows the answer but it would be quite interesting to have a heads-up on that. We have had, as the noble Baroness said, other SIs on wine. There may not be any other way around this, and it is no criticism, but Defra seems to come up with a lot of small SIs. Does it have to be like that? Could we do them en bloc to be a bit more efficient?
I was interested that in the Minister’s introduction he talked about the fact that this product is only imported; we clearly do not make ice wine in this country. It would be interesting to know the impact of this SI. How much ice wine is imported into this country? I had never seen it until I went to Canada. What percentage would no longer be able to be marketed and what is the actual impact of this statutory instrument? It would be interesting to know if it has been a problem for the wine trade.
The Minister also mentioned the Welsh and Scottish instruments that are likely to come forward through their legislation. Other noble Lords also mentioned this and the noble Baroness, Lady Walmsley, asked about the timescales. I note that Defra’s response to the Secondary Legislation Scrutiny Committee’s concerns, in its report, explained that there are already rules in place which mean that this should not be a problem. Even so, we need to get all our legislative ducks in a row, so it would be interesting to know the likely timescales.
Finally, I support what the noble Baroness said about the Wine and Spirit Trade Association’s concerns regarding tax and excise duty. It has raised a really important point and I support her request to the Minister that this is discussed with the Treasury and that the department looks at this seriously.
My Lords, I am very grateful to all noble Lords who have contributed to this brief, but very illuminating, debate on ice wine and the further measures in this statutory instrument. There has been consensus on the importance of these changes. Although ice wine is not produced domestically, but imported, it is really important that consumers are able to identify products easily.
The change will assure consumers that only wine that is made from grapes naturally frozen on the vine is sold as ice wine. Taking up my noble friend’s point, and as other noble Lords have mentioned, the change is also necessary for compliance with the UK’s CPTPP agreement. What good timing that today’s SI debate is on the same day as that Bill’s Report. Similarly, introducing the most recent winemaking techniques—let us not forget the second part of the SI, because it is really important for what is a growing industry—will enable English wine producers to use the latest technological advancements and winemaking practices.
Now that is on the record.
I say again that we have a thriving domestic wine production industry, which is continuing to grow at speed. WineGB, which represents most domestic wine producers, reported that 2023 saw Great Britain’s largest ever grape harvest, which it is estimated will produce 20 million to 22 million bottles of British wine. There was overwhelming support for updating these oenological practices from both our domestic producers and international trading partners, all understanding the importance of having access to the latest methodologies.
Finally, on the reforms on wine not being all done in one SI, the department has been working at pace to drive forward wine reforms from retained EU law and implementing the reforms in three phases, the first of which came into force on 1 January this year to dovetail with the end of an easement relating to importer labelling. The second instalment, in this SI, is due to come in in July in time to ratify the CPTPP agreement and now we can focus on the final phase. I think the logic behind that is that it is better to keep things moving rather than doing things in one block, which could have caused uncertainty to producers and importers.
Before my noble friend sits down, I would like to press him on why, under new paragraph 8(d) in Regulation 2, it is deemed necessary by the Government to write
“a term similar to a term mentioned in point (a), (b) or (c)”
when those three sub-paragraphs are
“(a)‘ice wine’; (b)‘icewine’; (c)‘ice-wine’”.
It would be helpful to the Committee to give an example of a term that is similar to ice wine that would be covered by this statutory instrument.
For the benefit of the Committee, it may be useful for me to go away and consider my noble friend’s question, so as not to detain the Committee any longer. I will of course go back and look at Hansard and if there is anything that I have not answered then I will write, circulate that to all noble Lords and place a copy in the Library. I hope that I have addressed the majority of issues raised and that noble Lords will approve this instrument.
(9 months ago)
Lords ChamberTo ask His Majesty’s Government what assessment they have made of Coram’s Charter for Children, and what steps they plan to take to implement its recommendations to create better chances for children.
My Lords, we welcome the publication of Coram’s Charter for Children and are grateful for its work in supporting children, young people and families. All children need love and stability to be happy and to grow up capable of fulfilling their potential. The Government are committed to prioritising the needs of children, ensuring that their best interests are at the centre of policy- and decision-making.
I thank the Minister for her Answer. The charter outlines a social contract between society and children which seeks to ensure that they get a fair share, a secure future and an equal chance. It states clearly that, at the moment, life is not getting better for children and young people in our country. Will His Majesty’s Government ensure that children’s best interests are always preserved by having child impact assessments and finally appointing a Cabinet- level Minister for children?
The Government absolutely accept that Covid in particular had a marked effect on our children, but we already have a Cabinet-level Minister for children—the Secretary of State for Education, who represents the interests of children in Cabinet. We also have a child rights impact assessment that government departments can use.
My Lords, this morning a coalition of leading health bodies, with the support of the Children’s Commissioner, launched a report in the River Room aimed at improving children’s nutritional health. Like the Coram charter, it calls for the extension of free school meals, starting with all primary school children, and auto-enrolment. Will the Government finally listen to and act on the growing calls for the extension of free school meals, which the evidence shows will improve children’s health and educational performance?
I remind the noble Baroness that this Government have extended school meal eligibility more than any other, including through universal infant free school meals and for families with no recourse to public funds. Our strategy has been to support families in a major way, with £104 billion of support between 2022 and 2025 and, rightly, giving parents discretion on its use.
My Lords, the Minister well understands that in recent years there has been a steady run-down of family support services, at considerable cost to some children who would normally have been able to depend on this kind of help and support at a critical stage in their lives. Sadly, those children from the poorest homes who are affected in this way are also likely to be persistently absent from schools, thereby limiting their development. Will there be opportunities in future to increase family support services?
I would slightly reframe the noble Lord’s first assertion. There has been a redirection of resources to increasingly complex cases in child protection and a displacement of resources from some of the earlier help services. The House is aware of the Government’s commitment to rolling out family hubs and providing really comprehensive, targeted support to families who need it the most. I share the noble Lord’s deep concerns about attendance. All Ministers across the department have this as a primary focus.
My Lords, the Coram Charter for Children makes for disturbing reading. Some 4.2 million children in this country are in poverty—4.2 million children in a wealthy country. This figure is rising. The Minister will agree that this has devastating consequences for children’s health, security and opportunities. Can the Minister tell the House what action the Government plan to take to stop the cuts in children’s services?
We understand that local authorities are under significant financial pressure. That is why we have committed to major reform in relation to children’s social care, focusing increasingly on earlier intervention. Over the last three spending reviews, local government has seen real increases in its core spending power, with a major cash injection of £5.1 billion last year, of which £3.1 billion was provided through a central government grant.
My Lords, the Coram charter calls for the reform of childcare, enabling all children to have access to high-quality early years provision. I very much welcome the announcement last year of free provision for two year-olds from 1 April, with further extension later on. However, in the year that has just ended, there were 216 nursery closures in England, compared with 144 in the previous year. What steps are the Government taking to encourage early years providers to increase capacity to meet this new demand?
I thank my noble friend for his question. Of course, he is right about the number of closures, but overall, the workforce has increased by 4% in the last year. My noble friend asks about action now: we have announced an increase in the hourly rates paid to providers, to £5.88 for three to four year-olds, and up to £11.22 for the under twos. We are allowing parents to register their interest early in the new free childcare provision, allowing nurseries to expand. We have increased the flexibility for childminders to deliver their services outside the home.
Improving children’s lives should centre on ensuring that we deliver high standards for all children in all schools. According to an IFS report released last month, schools serving more disadvantaged pupils have seen larger spending cuts since 2010. How do the Government justify this gap in pupil spending?
I do not fully recognise the figures that the noble Baroness refers to. As she knows, we have been adjusting school funding to try to move towards a national funding formula. We have also invested increasingly in the pupil premium to support precisely the children whom she and the Government are most concerned about.
My Lords, looking at the other end of childhood—teenagers—will the Government do something better about youth clubs, which might have some effect on gangs?
There are multiple things that will have effects on gangs, but clearly the engagement of young people is very important, as the noble and learned Baroness suggests. That is why we made the national youth guarantee commitments in 2022.
My Lords, I acknowledge the Minister’s personal commitment to support children’s services and children themselves, but that is not necessarily the outcome delivered by other Ministers and her government department, as has been stated across the House. Will the Minister look at the practice in Tower Hamlets, which has been providing not only educational support but free meals from age three to senior school years? Will she undertake at least to explore why one authority can make it while others cannot?
The department is of course happy not only to look at the ability to provide meals in the way that the noble Baroness set out but to see their impact. A core principle of this Government is to give as much autonomy as possible to schools. They know their children and how to use their budgets; we trust them and back their judgment.
My Lords, I declare an interest as a patron of Coram, the country’s first and longest-serving children’s charity. Our Charter for Children makes several important recommendations, from early years education to school leavers and mental health, which should not be ignored because of financial constraints, as they will benefit society in the long term. We need to show that every child across the nation is valued and that no child is left behind, because, as I always say, childhood lasts a lifetime. Will the Minister agree to meet me and representatives from Coram to discuss this important report?
I would be delighted to meet the noble Baroness and the team from Coram. I put on record our thanks to them for all the work that they do.
(9 months ago)
Lords ChamberTo ask His Majesty’s Government what plans they have to reply to the letter addressed to them on 17 August 2023 by the United Nations Special Rapporteur on Torture and other Cruel, Inhuman or Degrading Treatment or Punishment and others, concerning imprisonment for public protection.
My Lords, the Government are grateful for the UN special rapporteur’s interest in this important matter and have considered her letter carefully. A response was sent on 19 December 2023 and published on the Office of the United Nations High Commissioner for Human Rights website at www.ohchr.org. The IPP action plan aims to promote sentence progression for all those serving IPP sentences, and provisions in the Victims and Prisoners Bill will reduce the number subject to that sentence over time.
My Lords, I thank my noble and learned friend and apologise that my Question was tabled, quite by coincidence, on the day that the Government issued their response to the letter. Does he accept the evidence submitted to the Justice Select Committee in the other place, and referred to by the special rapporteur—that the mental health problems caused by the IPP sentence itself multiply the difficulties that the prisoners face in obtaining release, and that therefore the Government would be wholly justified in considering any legislation in treating them as a special case with particular needs and trying to assist them to obtain discharge of the sentence?
My Lords, the Government accept that there are certain special mental health issues for a number of these prisoners. They are being tackled, as far as we can do so, within the existing system. The action plan to which I referred contains provisions in that regard, particularly on improving psychological services and providing better support for prisoners on licence to avoid later recall. I do not accept the second part of my noble friend’s question that it follows that we need special legislation to deal with this.
My Lords, we must all be so grateful to the noble Lord, Lord Moylan, for his continued campaigning on this issue, and we are grateful to the Government for responding at such length to the rapporteur. If everything in the IPP garden is so rosy in relation to indeterminately detained people, some of whom would have got a sentence of only months for their actual crime, why did the Government abolish this sentence in the first place, and why did the noble Lord, Lord Clarke, as late as 2016 call the threshold that prisoners have to meet to secure their release both ridiculous and absurd?
I do not assert that everything in the garden is rosy. This area is one of the acute—perhaps the most acute—dilemmas faced by the Ministry of Justice. Your Lordships will be aware that the subject of IPP prisoners is being addressed in Part 4 of the Victims and Prisoners Bill currently before Parliament, which we will shortly discuss in detail in Committee, and I am meeting noble Lords on Thursday to take that discussion further.
My Lords, this is not just a major problem in the system; it is a major disgrace to the British justice system that these thousands of people are being kept in this way. When I persuaded my then Cabinet colleagues to abolish the IPP system because it was working so badly, unfortunately I was unable to persuade them to change the application of the licensing system in the ordinary way to these prisoners. I am glad that the Government are now contemplating action. I look forward to the legislation, but it has taken years. Will they consider something drastic, such as that, when prisoners are released on licence, the licence period should be for a much shorter period than usual, because at the moment people are being returned for quite minor breaches of licence, to the disproportionate consequence of an indeterminate sentence that may keep them in prison for life? Why cannot they be released on licence for 12 months and thereafter be subject to the usual criminal law for the protection of the public? Will the Minister consider that, and every other suggestion flowing to him from the campaigners?
My Lords, the House will be aware that the Victims and Prisoners Bill reduces the qualifying licence period from 10 years to three, with the presumption of termination at that point, and automatic termination two years thereafter if there is no recall in the meantime. A recent report by His Majesty’s Inspectorate of Probation found that in none of the cases examined was the recall inappropriate but that, in some cases, further additional support in the community might have avoided the need for recall. That has led to a number of recommendations, all of which the Government have accepted.
My Lords, when I served on the Justice Committee in the Scottish Parliament, I recall that Scotland chose a different path from England and Wales when the sentences were introduced by the Labour Government in 2005, and it was right that they were abolished in 2012. The UN rapporteur’s figures make very sobering reading, stating that 97% of those still imprisoned are now two years beyond the tariff and 46% are 10 years beyond the tariff, with rehabilitation having been designed as an integral part of the sentencing. What are the obstacles for the Government in implementing the recommendations of the Justice Committee in the Commons, endorsed by the UN rapporteur, for resentencing and rehabilitation now being put forward? What are the obstacles to this happening, so we can finally put to bed what has been a very sorry exercise?
My Lords, I think I have explained this matter several times before to your Lordships but, in brief, the situation is this. We have 1,200 prisoners who have never been released. Almost all of those have come several times before the Parole Board, which each time has decided that they are not safe to release. Any resentencing exercise would inevitably either aim at or result in possibly a thousand persons being released who are not safe to release. The cohort includes many violent and sexual offenders, who are particularly difficult to manage in the community. The Government feel that they cannot take that risk and should not raise expectations but manage the situation by preparing the remaining prisoners for safe release.
My Lords, when IPP sentences were in place, the offender received a minimum tariff. When the offender went to prison, an offender manager, who is a probation officer, wrote a sentence plan. That same probation officer would also review that plan. Can the Minister say with confidence that all the elements of the sentence plans which are currently in place can be completed, and in a reasonable time?
My Lords, it is a very good question. A strengthened action plan—a strengthened sentence plan for each IPP prisoner—is an essential part of the wider IPP action plan. That is currently being worked on so that each IPP prisoner still in custody will have a personalised, updated and—we hope—effective sentence plan eventually leading to their release if that is at all possible. The newly established IPP progression board dealing with this matter now includes stakeholder representatives, who met in September and just before Christmas and will meet again in March, when we will report a full update on how the action plan is progressing.
My Lords, I reinforce the suggestion made by my noble friend Lord Clarke. Has the time not come to provide a presumption that all IPP prisoners who have served the tariff should be released unless there is robust evidence tendered to the Parole Board that they are unsafe to be released?
My Lords, that is, in effect, the present position. The Government have no interest in holding these prisoners, especially given the pressure on the prison system generally. The Government’s fear, worry and concern is public protection, for the reasons I have given.
My Lords, the special rapporteur, Dr Alice Edwards, whom I had the pleasure and privilege of meeting last month with the Justice Unions Parliamentary Group, stated forcefully that:
“The UK, as a society with a strong rule of law tradition, has measures in place to protect the community after individuals are released”.
Why then does the Minister think that these measures will be ineffective in the case of IPP prisoners?
The Government replied in detail to the learned special rapporteur with a letter of over 13 pages on 23 December, to which I refer your Lordships. I look forward to further debate and discussion on this matter when we are dealing with the Victims and Prisoners Bill.
(9 months ago)
Lords ChamberTo ask His Majesty’s Government, following the BBC “Panorama” documentary “The Water Pollution Cover-Up”, what assessment they have made of the ability of the Environment Agency to regulate and police water companies, and what steps they plan to take to stop sewage entering watercourses.
My Lords, I declare my interests as set out in the register. The Government are clear that the current volume of sewage being discharged into our waters is unacceptable. Our plan for water is addressing this and delivering more investment, stronger regulation and tougher enforcement to clean up our water and water environment. Where there is evidence of wrongdoing, the Environment Agency will not hesitate to act.
My Lords, I welcome the Minister to the Dispatch Box and I too declare my interests.
The “Panorama” programme threw up a lot of issues. It has not had quite the effect of “Mr Bates vs The Post Office”—although I wish it had, because there is a lot of covering up going on at the moment in terms of sewerage works in this country. I would like to raise one point; others will be raised as the Question goes on.
Campaigners and journalists have been using freedom of information requests or environmental information requests to water companies, to explore and expose the illegal sewage discharges. But, increasingly, the companies are refusing to comply. In fact, nine out of 11 water and sewerage companies in England and Wales have said that the ongoing Ofwat and Environment Agency investigations mean that they do not have to hand over any data. This is completely contrary to what David Black, the CEO of Ofwat, told the Public Accounts Committee just four weeks ago. He said this was not a good enough reason. Do the Government not agree that this data should be provided for the sake of transparency, public health and the protection of the environment? Sewage in our rivers is something that everyone in this country cares about.
I thank the noble Baroness for her Question. The Government do not believe that there is any collusion. The role of the Environment Agency, as the environmental regulator for water companies, is to provide guidance to help water companies with their water resource management and to ensure that they are complying with the regulations. On FoI and environmental information regulations, water companies are only subject to the Environmental Information Regulations 2004 and not the Freedom of Information Act 2000. For the purposes of the environmental information regulations, water companies are their own legal entity, which means that it is for the organisation itself to tell you why it cannot provide all, or some of, the information requested.
My Lords, I welcome my noble friend to this House and congratulate him on his new appointment. Possibly the best way of preventing sewage entering the watercourses is to ensure the end of the automatic right to connect major new developments with inadequate, inappropriate piping. Will he look into when the consultation will be brought forward to implement Schedule 3 to the Flood and Water Management Act 2010 to ensure that there will be no automatic connections in these circumstances and a better use of SUDS and natural flood defences?
I thank my noble friend for her kind words, which are greatly appreciated. We will be implementing Schedule 3 to the water management Act, as previously announced. I hope that that addresses my noble friend’s question.
My Lords, I welcome the Minister to his first outing at the Dispatch Box. It is clear from whistleblower evidence in the recent BBC “Panorama” investigation into water pollution that water companies can and do cheat the operator self-monitoring test by manipulating flows at failing sewage works. This ensures that there is no flow to sample when the official tester arrives. Will the Government concede that trusting companies that are financially motivated to cover up failing works to avoid penalties from Ofwat to carry out their own testing is not an effective regulatory system? Will they commit to putting robust independent regulation in place to ensure sewage works’ compliance?
Water companies, including United Utilities, have always been required to report pollution incidents and breaches of their permits to the Environment Agency. The agency also monitors and inspects water company sites independently. It has significantly driven up monitoring and transparency from water companies in recent years. Any reports of misreporting are a concern and, if there is evidence, the Environment Agency will always take action, including pursuing and prosecuting companies that are deliberately obstructive.
My Lords, I too welcome the noble Lord to his place and say how much I look forward to working with him in the coming months.
In a Written Answer, the noble Lord noted that, following pollution from United Utilities in the Windermere area, the Environment Agency recognised that it should have done better and referred itself for independent review by its Scottish partner. The Answer also stated that learning had been shared with the EA to inform future responses. How many similar regulatory failures have taken place over the last three years, and how will the department ensure transparency over the outcomes?
Again, I thank the noble Baroness for her kind words. The Environment Agency has fully reviewed the evidence about this incident and concluded that the most likely cause of the Cunsey Beck issue at Lake Windermere was algal bloom. However, since the Environment Agency did not identify a definitive source of this serious problem, it asked the Scottish Environment Protection Agency to review its response. As a result of the review, the Environment Agency has made improvements to water quality monitoring in the area, including installing sensors that monitor river quality in real time. We have no plans to reopen the investigation in the absence of any substantial new evidence.
My Lords, senior members of staff from water companies appearing in front of the regulatory committee told us that the monitoring that they have put in place is available freely, in real time, to the public. They now appear to be claiming that they are quasi sub judice because they are under investigation and are not prepared to provide that information. Is that something the Government will let them get away with?
The Government are very clear that we will be providing real-time information and that it will be available publicly. If any of the water companies feel that they will not be doing that, I can assure your Lordships that the Environment Agency will be chasing them.
I welcome the new Minister, but on this issue he has stepped into a large bucket of doo-doo. I am just warning him; we are very unhappy here about this. I did not see the BBC “Panorama” programme that was referred to, but it showed that United Utilities is due to receive millions of pounds in performance payments from bill payers, as a result of it covering up and wrongly categorising pollution incidents. Will the Government research and look into this fraud? The allegations are that the Environment Agency is also complicit and other water companies could be doing exactly the same.
When I watched the “Panorama” programme, I too was left with the distinct impression that something fishy was going on. However, it is standard practice for the initial and final categorisations to be different. This is because the initial categorisation is based on the information provided in an initial report. An Environment Agency officer will then gather evidence about the incident from a variety of sources, including attendants at the most significant pollution events. They will then assess this information and give a final categorisation that is based on the evidence rather than on the initial estimate.
My Lords, we made no progress on health and safety until we made company directors personally responsible. It is no good relying on a system of fines, because that just ends up putting up consumers’ bills. Now that my noble friend is in his new position, would he look at the prospect of holding boards to account for their performance in this regard? It would change the whole nature of their attitudes. On his point about something fishy going on, the point of this is that all the fish are dying.
As the former chair of the Atlantic Salmon Trust, I have some sympathy with my noble friend’s view. The Government have legislated to introduce unlimited penalties on water companies. I appreciate my noble friend’s point, but we have made a start in the right direction. A much wider range of issues can now be applied by the Environment Agency to hold water companies to account. As I stated at the beginning, the Government are acutely aware that the position is not satisfactory and are looking into the matter, with all seriousness.
(9 months ago)
Lords ChamberTo ask His Majesty’s Government what plans they have in place to ensure the National Health Service meets its key targets.
The NHS has made progress against its targets, especially given the challenges of recovering from Covid-19, the changing demography and winter pressures. The Government recognise that there is still a way to go and are working non-stop to support the NHS to do better. I take this opportunity to thank all NHS staff for their hard work to improve performance this winter.
My Lords, I would like to join in thanking NHS staff, who are doing a fantastic job. There are some structural problems here. In particular, I am concerned about ambulance response times, which are causing a great deal of concern despite the Government having increased the category 2 call response times from 18 minutes to 30 minutes. Category 2 calls deal with such life-threatening events as strokes and heart attacks, so this is deeply worrying. What are His Majesty’s Government doing to reduce the response time? Will they consider returning to the 18-minute response time for category 2 calls?
I agree with the basic point, as I am sure all noble Lords will, that ambulances are on the front line and are the most important service in all of this. That is why we have invested in 800 new ambulances, with over £200 million of funding. It is early days, but that is starting to take effect. Regarding the category 2 issue, we have managed to halve the time it takes since last year, but it is still too long and we absolutely need to make more progress in this area.
Does the Minister agree with me that, if you really want to hit the targets for the NHS, you need to deal with the fact that 50% of people who present themselves at the NHS are suffering from food poverty? Why do we not concentrate on lifting the great weight on the NHS by doing serious work on getting rid of poverty?
I agree with the noble Lord that prevention is key. About half the number of people who turn up at A&E do not need to go to A&E and can be seen in other settings. I completely agree that all the elements in terms of prevention and getting ahead of the problem are key, including where there are issues around food.
My Lords, following on from the question from the right reverend Prelate and his reference to stroke patients, given that there is a three-hour window for stroke patients during which, if certain treatments are given, the outcome is so much better, what have the Government done to ensure that, adding on the ambulance time to the time when the patient then arrives at hospital, more patients are being treated within that window? Is there a target specifically for stroke patients? It makes such a difference.
My noble friend is absolutely correct, and strokes have been a major focus. I am glad to say that was one of the first areas where we rolled out AI everywhere, with the result that we were able to improve treatment times so much—and I will get the precise figures to my noble friend—that the recovery rate has increased by two-thirds as a result. It is absolutely right that this is an area of top focus.
My Lords, the Government keep telling us—and I understand why and congratulate them on it—that the number of people employed as doctors and nurses has risen in recent years. Can the Minister explain why productivity over the same time has reduced by 4%?
The noble Baroness is correct: staff numbers have gone up but, for a number of reasons that we are exploring, output has not gone up by the same amount. It is a key point, and I think all noble Lords agree that making sure we are getting value for money out of the service is important. We are engaged in a productivity study to discover the reasons right now.
My Lords, back in 2013, the Government set a target for the NHS to become paperless by 2018, which they later extended to 2020 when the target seemed too ambitious. This may come as something of a surprise to the millions of people who continue to have regular paper-based interactions with the NHS. Could the Minister tell the House when he now expects the target for the NHS becoming fully digital to be met? Would he agree that it is now even more important that we achieve it than when it was first set over a decade ago?
I definitely agree that it is more important, and that is why I am pleased that we have made such progress. If we look at one area in terms of hospital records being available and doctors’ records to patients, that has gone up since the beginning of the year from about 1% of GPs to about 90% today. About 90% of all our hospital records are now digitised, compared to less than 3% in Germany. We have made massive progress, and it is key to all of the reform and to improving productivity across the NHS.
My Lords, the Minister well knows that we have raised the issue of primary care again and again in this Chamber. Would he be kind enough to tell the House how the Government feel they are doing with regard to the retention of very highly qualified general practitioners at the height of their career, who are currently leaving early? Up to about 50% are considering retirement before the retirement age. Will he comment on how he feels that is going?
Staff retention, particularly of GPs, is vital. That is why we listened to the number one reason they were retiring, which was the feeling that their pensions were being adversely affected. We changed the rules in the last Budget to try to address that; it is early days, but I hear that that is starting to make progress. Primary care is the front line. That is why I am pleased that we have increased the number of appointments by more than 50 million, ahead of our manifesto target. But it absolutely needs to be a key focus.
My Lords, I draw attention to my registered interests. The long-term—and, indeed, the short and medium-term—sustainability of the NHS is critically dependent upon active engagement in research and the adoption of innovation at scale and pace. Is the Minister content that His Majesty’s Government are doing enough to ensure that the NHS is resourced to support that research and innovation agenda?
It is key, and I think we are all aware that a couple of years ago—this was a result of the report of the noble Lord, Lord O’Shaughnessy—we were not doing as well as we needed to be in the clinical trials area. I am glad to say that, since then, there has actually been a lot of progress towards it, so we are now hitting similar levels to comparative nations. Innovation is at the heart of everything we have done. We have some very good examples of that; I mentioned the stroke AI treatment earlier. We have just set a similar thing in terms of AI for looking at chest cancers, but it is absolutely something we need to make sure we continue to progress.
My Lords, the King’s Fund has highlighted a delay to the release of additional funding to help NHS and social care services prepare for winter, which will of course only worsen the situation of missed targets and wait times for patients. Can the Minister tell the House what the reasons are for this delay and what steps are being taken to unblock the money to get it to where it is needed?
One of the key learnings from last year, which goes back to the whole question about planning, was actually that if you put social care moneys in too late, you do not get nearly as effective spend. That is why we brought forward the £600 million discharge fund much earlier—actually, into the summer—so that local authorities and care providers could plan on that money. It is starting to make a difference. A key thing that noble Lords have heard me talk about is bed-blocking. Actually, we have seen a 10% reduction in bed-blocking since these measures have come into effect in the last few weeks. It is early days, but we are actually making progress.
My Lords, the number of over-85s is due to double over the next 30 years. Would my noble friend the Minister give some consideration to government funding for extra care facilities and at-home treatment, such as physiotherapy, in order that pressure be taken off acute district hospital beds in respect of older people?
Funnily enough, I had this conversation in terms of productivity just today. The virtual wards—the 11,000 extra beds we have put in—are actually making a real impact on that, because of course it is much better that people can be treated in their own home, knowing they have the comfort of these virtual displays and treatment to look after them. We have 11,000 extra beds, with 72% utilisation, and, yes, it is really working.
My Lords, the Minister keeps talking about progress being made, but if he looks at, say, the four-hour A&E target, he knows that the latest figures show that the NHS reached only 69% in December. In 2010, his party inherited a performance of 98.3%. What does he think that says about his party’s stewardship of the NHS?
I can talk about what we are doing now, which is showing real progress. But I have to say that the saying “People who live in glass houses shouldn’t throw stones” comes to mind, because, looking at those same targets, I notice that the Labour-run NHS in Wales never reached the four-hour A&E target; the last time it hit the 62-day cancer target was in August 2010, 14 years ago; and the last time it hit the hospital treatment target was in August 2010. I say politely that the noble Lord might want to get his own house in order first.
(9 months ago)
Lords ChamberTo ask the Secretary of State for Foreign, Commonwealth and Development Affairs what steps he is taking to address the Rohingya Refugee crisis.
My Lords, since 2017, we have provided more than £373 million in funding for Rohingya refugees in Bangladesh and more than £30 million for Rohingya and other Muslim minorities in Myanmar. In December, at the Global Refugee Forum, we announced an additional £7 million for Rohingya refugees in Bangladesh and for the Myanmar humanitarian crisis. We also reiterated our commitment to finding a long-term solution to the crisis, including the safe, voluntary and dignified return of the Rohingya to Myanmar when conditions there allow.
My Lords, I am grateful for all that His Majesty’s Government have been doing to support the victims of this terrible humanitarian crisis. However, UK aid to the Rohingya refugees in Bangladesh has actually declined by about 82% since 2019-20. In the past year, Rohingya refugees in Bangladesh have suffered flooding, cyclones and fires, and cuts in food rations, simply because of reductions in aid. Just two weeks ago, 800 dwellings in Cox’s Bazar were destroyed by a fire. In the light of this terrible humanitarian crisis that we are observing, what other resources can His Majesty’s Government offer to try to address this dreadful problem?
The right reverend Prelate is entirely right about the scale of this crisis. There are 1 million Rohingya refugees in Bangladesh—think of the scale of that—with people often living in IDP camps and other temporary accommodation. I do not deny for a moment that the scale of funding has gone down. That is the same with many aid programmes, because of the move from 0.7% to 0.5%. Crucially, it is due also to the diversion of a lot of aid money to support refugees from Ukraine and Afghanistan, which I think was entirely the right thing to do. We will be spending another £20 million next year. To put it in context, Britain’s contribution has been almost twice as much as the EU’s over the past seven years. We are playing our role to make sure that this is not the forgotten crisis.
My Lords, I declare an interest as a trustee of the Burma Campaign UK. All leaders of the Rohingya community associations have led calls for the British Government, as the penholder on Burma at the UN, to take action. If the British Government are not going to convene a meeting of the UN Security Council to address the failing of the Burmese military to take measures as instructed by the ICJ to prevent further ongoing genocide against the Rohingya, what action are the Government taking to ensure a level of protection for the Rohingya remaining in Myanmar?
The noble Baroness is entirely right: we are the penholder, and we take that duty very seriously. We have taken a range of action on this. Fundamentally, we are making sure that aid is going in—and I have just said what our contribution has been—and, secondly, that proper authorities are put in place to stop gender-based violence, collect evidence from the camps and make sure that people are held accountable. The third part of the strategy must be to put pressure on the Government to recognise that this country needs to have proper provision for all its ethnic minorities and parts, and to make sure that there is, effectively, a peace process and a more inclusive set of arrangements for the country, so that everyone can feel that they have a part in its future. Ultimately, no one wants the Rohingya to have to stay in Bangladesh; they should be able to go home.
My Lords, the Foreign Secretary’s response to the right reverend Prelate indicated that funds have been diverted to the Ukraine resettlement scheme away from other schemes. I have asked in this Chamber, time and again, whether funds to support the Ukraine resettlement scheme in the UK have been diverted from other areas. Ministers have denied that, so can the Foreign Secretary clarify that point on the record? Secondly, the UK has been a refuge for many Rohingya who have sought asylum here under the Gateway Protection Programme. This was closed in 2020. On Friday, the Home Office’s Report on Safe and Legal Routes said that there are no safe and legal routes that the Rohingya would be able to apply for. Can the Minister assure me that, if any Rohingya is seeking refuge in the UK through a proper asylum application but is undocumented, they will not be detained and sent to Rwanda under his new scheme?
First, let me clarify the point I made. Obviously, the ODA budget qualifies to pay for refugees from Ukraine, Afghanistan and elsewhere. Effectively, what happened over previous years was not only that the budget moved from 0.7% to 0.5% but that some of it was taken up, quite rightly, by ODA spending on looking after people from Ukraine and Afghanistan. We can now see that the overseas aid budget being spent overseas is actually increasing. For instance, when it comes to Africa, next year the budget will be almost doubling, to well over £1 billion. On what we want to see with the Rohingya, clearly there is a huge refugee crisis. They are being looked after in Bangladesh. Ideally, when circumstances are right, they will be able to go home. In between now and then, I think we should learn the lesson of the Syrian refugee crisis, where we did a lot to help countries such as Lebanon and particularly Jordan to make sure that people were able to stay there, work there and build livelihoods there, and then, when it is possible, go home.
My Lords, looking specifically at the point the right reverend Prelate raised about the plight of the refugees in Cox’s Bazaar in Bangladesh, will the Minister look again at what happened only last week, when 5,000 of those refugees were displaced from the shacks and tents in which they had been living as a result of a fire? The Minister invited us to look at the longer term. I reinforce what the noble Baroness, Lady Nye, said about the International Court of Justice, which has imposed interim provisional measures on the Burmese military, with the support of the British Government, which is extremely welcome. Will he raise at the Security Council the failure to implement that and will he have discussions with the National Unity Government about the long-term rights of the Rohingya, the Kachin, the Karen and the other ethnic and religious minorities? That is the fundamental issue: if someone is not an equal citizen in the new Burma that will emerge after the coup, nothing will change.
Fundamentally, the noble Lord is completely right about the interim measures which have been set out by the International Court of Justice. It is incumbent on the Government of Myanmar to make sure they are put in place and to abide by them. The noble Lord made the general point that what is required is an inclusive, federal state, where every ethnicity and every nationality can feel it has a part to play in the country and that it will benefit from the country’s resources. Obviously, we have this military Government, with whom we have very limited contact, but for the long-term future of Myanmar, that is the only answer.
My Lords, following on from the questions of the noble Lord, Lord Alton, I think the Minister will understand that the House does not find his answers completely satisfactory. He has said that it is the responsibility of the Government of Myanmar, and he knows that action is not being taken. The range of actions he has outlined seem to be around data collection and putting pressure on the Government. As the penholder in the Security Council on this issue, there is a special responsibility on the British Government. Is he able to say what discussions he has had with other members of the Security Council about putting pressure on the Government? Otherwise, nobody is going to be held to account for the crisis which has emerged.
The noble Baroness is absolutely right that we take our responsibilities very seriously. We have those discussions at permanent-member level of the UN Security Council. I will personally take this up with Barbara Woodward, our excellent permanent representative, to see what more can be done over the coming period. Fundamentally, we have set out what we think is necessary: the aid to go in, the accountability to be in place and the pressure for a long-term solution, and, at the same time, the Government obeying the interim measures set out by the ICJ.
My Lords, the failure of the international community to deal with the attempted genocide in Myanmar against the Rohingya is just one example of the failure of the responsibility to protect norms over the course of the past decade in so many places. What are the Government doing to reinvigorate the discussion on responsibility to protect at the United Nations and ensure that there is a refreshed approach to this in place that will help protect citizens who are under attack from their own Government, legitimate or otherwise?
The issue of the responsibility to protect is one we have taken forward and discuss with allies and partners. It is developing a doctrine, as it were. When it comes to this issue, we have a role; we are making a contribution and we are, I think, doing more than many countries of our size and scale. I think that there is a lot we should do to sort support ASEAN. It has set out its five principles for dealing with Myanmar, which we support, and has a co-ordinator from Laos who we want to work with. Ultimately, we should respect the fact that, in its region, ASEAN should take the lead on this issue and we can support where we can.
My Lords, on or about 28 December, it was widely reported that Indonesia had pushed back a boat containing a significant number of Rohingya refugees out of its territorial waters. I have not been able to find any report of what has happened since to the people on that boat. Would the Minister agree that that is absolutely unacceptable behaviour, out of line with international law? Have the Government made, or will they make, any representations on this to Indonesia? Do we not have to make sure that refugees are safe?
I am not aware of that report; I will certainly go away and look into it. What we would say is that Bangladesh should be praised for the role that it is playing in taking quite so many refugees. Obviously, there are huge pressures—there are worries about conditions in the camps and whether there is enough food—but, ultimately, Bangladesh is looking after a million people, and that is why we are supporting it to the extent that we are. Every country should take its responsibilities towards refugees very seriously.
(9 months ago)
Lords ChamberTo ask the Secretary of State for Foreign, Commonwealth and Development Affairs what steps he is taking to secure a lasting ceasefire arrangement between Israel and Gaza.
My Lords, my noble friend Lady Janke is unwell. With her permission, and on her behalf, I beg leave to ask the Question standing in her name on the Order Paper.
My Lords, we support a ceasefire, but this must be a sustainable ceasefire that will last and prevent another generation living under the constant threat of war. That must mean that Hamas is no longer in power in Gaza, able to threaten Israel with rocket attacks and other forms of terrorism. Ahead of a permanent ceasefire, we want to see immediate and sustained humanitarian pauses to allow hostages to leave and more aid to enter Gaza, helping to create the conditions for a durable peace. As I said at the weekend, we would like to see such a pause start right now.
My Lords, I thank the Foreign Secretary for his reply, and I agree with most of it. However, these Benches have for a number of weeks called for an immediate bilateral ceasefire, beyond a truce, which would allow hostages to be returned, bombing to stop and, of course, vital lifesaving aid to be secured. Why have the Government failed so far to persuade the Israeli Government to allow much greater access for the humanitarian aid that is needed? There are 1.9 million displaced people, many of whom are now facing famine. We now know that, when it comes to civilian casualties, this is the most deadly conflict in the 21st century. The UK will need to increase its support of humanitarian assistance, but it cut that from £107 million to £12 million between 2019 and 2023. I support the increase in aid but, surely, there will need to be an increase of the cap of 0.5% if we are to do our bit and ensure that aid is increased.
First, I would say to the noble Lord that we have trebled the amount of aid that we are putting into Gaza. I very much take on board what he says about the pressure we need to put on not just the Israeli Government but other Governments in the region to get more aid in. Right now, as we speak, nine out of 10 people in Gaza are living on less than one meal a day. It is that serious. That is why I have had repeated conversations with the Israelis and set out a whole series of bottlenecks that need to be relieved. We need Kerem Shalom open all the time. We need the Nitzana checkpoint open all the time. I would like to see the port of Ashdod opened in Israel so that aid can get into the country through maritime routes and more swiftly into Gaza.
Crucially, we will not see more aid get to the people who need it unless the United Nations inside Gaza has the vehicles, the people and the fuel to get it around. Those permissions need to be given. I have had these conversations most recently this morning with the new UN aid co-ordinator, who I am confident will do an excellent job. We will keep up the pressure for this, because, as I have said, an immediate pause to help get that aid in and to help get hostages out is essential.
Will the Foreign Secretary consider very seriously creating a UN protection force for humanitarian relief? That was done successfully in the winter of 1992 in a very difficult situation, with no ceasefire, in Bosnia and Herzegovina. I recommend that approach. Although a ceasefire is essential, it is not in the immediate future very likely, but the humanitarian crisis is getting worse every day. They cannot get relief in without some form of protection from UN forces.
I take what the noble Lord says, as a former Foreign Secretary, extremely seriously. What would make a difference is if Israel recognised its responsibilities for making sure that food, medicine and supplies have to be delivered to people in Gaza, and if it recognised that you need the UN staff who have the visas, the equipment and the fuel to help get it around. I will certainly take away the suggestion that the noble Lord makes, but the calculation here is quite simple. Before the conflict, some 500 trucks were going into Gaza every day. I check the figures every single day; we are up to about 150 trucks at the moment. That is not enough. The longer it goes on, the greater the risk of people going hungry and the greater the risk of disease and this humanitarian crisis getting worse. A pause would help, because there is no doubt that it would be easier to get food and other forms of aid in. It would also be very good to make some progress on the hostages, families of whom I met this morning.
My Lords, the Foreign Secretary makes an alarming point: that within Gaza nine out of 10 Palestinians are not even getting a single meal every day. The need for a sustained ceasefire is absolutely clear as a first step towards getting humanitarian aid in. The Government confirmed last week that currently there are no plans for RAF aid flights or deliveries by the Royal Navy. Can he say why that is? Surely that would be a good way of getting aid in and trying to get around some of the problems that we have at the moment.
We are looking at every single way of getting aid in. Of course, there are maritime options, and we had a ship leaving Cyprus and taking aid to Port Said in Egypt. The so-called over-the-beach option of trying to land aid in Gaza is extremely difficult for reasons of operational security and other forms of security. On dropping aid by air, the French and Jordanians did so recently, but it was less aid than you would get into one truck. The truth is that the best way to get aid into Gaza is through trucks. As I said, 500 are needed, 150 are happening, and if you opened up Kerem Shalom seven days a week, if you had the Nitzana checkpoint open 24/7 and if you had the people inside Gaza, there would be plenty of aid. There is no shortage of aid and no shortage of countries prepared to make the financial commitment. In the end, trucks are faster, and it is trucks that we need.
My Lords, women and children are always disproportionately affected by conflict. The UK considers itself a global leader on the women, peace and security agenda and holds the pen for this at the UN Security Council. Why are we not hearing from women’s groups? After all, they were integral in bringing peace in both Northern Ireland and Liberia.
It is very important that we hear from everybody. One of the things that I do with the responsibilities of the aid and development portfolio that is now squarely within the Foreign Office is to make sure that we listen to all the NGOs, all the experts and all the people who can make a difference when it comes to getting aid in and trying to relieve this desperate humanitarian situation.
When the Foreign Secretary said
“I am worried that Israel has taken action that might be in breach of international law”,
did he have in mind the principle of proportionality in armed conflict and whether it is a proportionate self-defence by Israel to have been responsible so far for some 24,000 Palestinian deaths, including 10,000 children?
What I meant when I said that was simply that I worry about these things. It is my job to worry. The Foreign Office has a job, which is to look at the legal advice and work out whether Israel is committed to, and capable of complying with, international humanitarian law, and then, based on that judgment, we have to take a series of actions, including looking at things like export licences. We always urge Israel to obey international humanitarian law, and it is important that we do so.
Is it not the case that there would be an immediate ceasefire tomorrow if Hamas were to release the hostages and lay down its weapons, and if the criminals who did atrocities on 7 October were to go and join their leaders in luxury hotels in the Gulf?
My noble friend makes a good point, which is that Hamas could end this tomorrow by saying that it was going to lay down its weapons or leave. Everyone is aware that we want a sustainable ceasefire. That means Hamas not in power and not able to launch rockets and terror, and we have said we want to see an immediate pause so we can get aid in and hostages out. However, in many ways, the very best outcome would be to see whether we could convert that immediate pause for aid and hostages into a sustainable ceasefire without further hostilities. But for that to happen, a series of other things would have to happen: there would have to be immediate negotiations to release all the hostages, the Hamas leadership would have to leave Gaza, and we would have to be clear that there was no more danger of rocket and terror attacks on Israel. We would have to put together something based on the Palestinian Authority, backed by other Palestinians, going back into Gaza. In many ways, that would be the best outcome, but if we call now for an immediate ceasefire with no further fighting when Hamas is still in power, still launching rockets and still capable of launching terror attacks, not only would we not have a sustainable ceasefire and peace but we would have no hope of the thing that I think many in this House would like to see, which is a two-state solution.
(9 months ago)
Lords ChamberTo ask the Secretary of State for Foreign, Commonwealth and Development Affairs what steps he is taking to promote the implementation of the UN sustainable development goals.
My Lords, the UK was instrumental in developing the sustainable development goals. Following the global recommitment to the SDGs at the United Nations General Assembly last autumn, we recognise the opportunity to reinvigorate a sense of collective purpose and partnership to deliver those goals. The international development White Paper sets out a re-energised agenda for the UK, working with partners, to accelerate progress on the SDGs by 2030. We will champion the SDGs throughout the key summits and meetings this year, and I will be making a speech on the SDGs in Davos tomorrow.
I very much welcome that last comment. Of course, one barrier to progress is debt. The average low-income country now spends 2.3 times more on servicing debt than on social assistance. At the Commons Foreign Affairs Committee, the Minister stressed the importance of cross-Whitehall working to address priority areas, and debt is one of those areas.
One of the mechanisms that the UN adopted for monitoring progress on the SDGs is voluntary national reviews. We had our last one—our only one—in 2019. Spain is due to publish its third, Argentina its fourth, but what are we doing? Can the Minister explain why we have not followed that example and used the voluntary national reviews?
I very much agree with the noble Lord on the important position regarding debt and what needs to be done to help countries to relieve their debt. I do not necessarily think the answer is always to cancel debt, because in many cases that affects a country’s credit rating, but we support things such as climate resilient debt clauses and the flexibility they give.
On voluntary national reviews, we had one in 2019, as the noble Lord knows, but we have not made a decision about a follow-up. I say to him: look, it is not really Britain that is the problem in meeting the SDGs. What has happened here is that, because of Covid and Putin’s illegal invasion of Ukraine, African countries have had a triple whammy. They have had the whammy of Covid, the whammy of higher fuel prices and the whammy of higher food prices. That has caused an increase in poverty and set the SDGs off track. We have to energise the world—the voluntary sector and, crucially, the private sector—to invest in the future of the SDGs and get us back on track.
My Lords, instead of going on with slogans such as “Stop the boats” and gimmicks such as deportation to Rwanda, is not the best way to help to reduce illegal migration to see increased assistance to these countries to make it possible for the people who have to migrate, who are forced to leave their countries, to live there in peace and prosperity?
I certainly half agree with the noble Lord: the investment that we can put into the countries from which the migrants are coming is essential. We have to ensure that countries in north and sub-Saharan Africa are building a future for their own people and providing jobs; otherwise, those people will be on the move. The figures are outstanding: the population of Europe in 1950 was twice that of Africa, but by the end of this century the population of Africa will be four times that of Europe. So making sure that those countries develop is crucial but, at the same time, when you have problems of widespread illegal immigration, it is important to stop the boats.
My Lords, will the Foreign Secretary not take another look at the issue of debt forgiveness that he spoke rather critically of just now? In previous iterations of this saga, we have recognised in the end that debt forgiveness was necessary for some of the poorest countries. Could he not look at that again, as well as whether we could link it with the commitment by a country that was forgiven its debt to do more on climate change?
I respect the noble Lord and what he says. We have been leaders on this through the Paris Club and other mechanisms; in many cases it has been the right thing to do to write down a country’s debt. With respect to climate change, these climate resilient debt clauses can make a great difference in helping these countries. Fundamentally, if we want to achieve the SDGs, we need to motivate global finance, and one of the ways that we can do that is through the multilateral development banks because if they expand their balance sheets there is probably an extra £400 billion that they can invest to help these countries with their growth.
My Lords, the Foreign Secretary has said he thinks that the merger of DfID and the Foreign Office, and the cuts in aid, were justified; that was not what he said at the time. How much does he regret that his successors have trashed his proud legacy and, more to the point, how assured can he be that the funding for Africa, which is still being cut even if an increase has been promised, will not be diverted to the Home Office, as has happened in the last two years?
That is not exactly what I said. I am very proud that we reached 0.7%. I had some disagreements with this Government before I joined but politics is a team enterprise; when you decide to join a Government, you accept Cabinet collective responsibility and you accept you are going to work with that team and the policies they have. I am proud that, with 0.5% and a growing economy, we are seeing more money going to overseas development. Now that the refugee crisis is abating—I mentioned Africa—we will see, in our budgets, an increase from £600 million to over £1.2 billion, and we are committed, when the fiscal rules allow, to get back to the 0.7% that we historically achieved.
My Lords, the biggest threat to the SDGs in Africa is conflict and internal instability. In the Sahel, this has increased ever since the disastrous Libyan incursion that the Foreign Secretary will remember very well. What steps does he personally intend to take to enhance security and democracy in sub-Saharan Africa, and will that include aid to civil society organisations?
The noble Lord is quite right that if you look at the SDGs and poverty more generally, half of the poorest people in the world are now in fragile states. If we cannot help to fix fragile and conflict-affected states, we will not meet the SDGs. If you look across the Sahel, there have been a number of coups and wars and a lot of instability, so I do not think there is a single answer to this, but one of the issues, when we look at aid and development and how we help these countries, is how making sure that they have adequate security is essential. Often in this House, or in the other place, we say that defence is the first duty of a Government, but when it comes to aid, we set up a whole series of different things that we think countries ought to achieve. We must help them with their fundamental and basic security, and that is something we are committed to doing.
Some 60% of the population of sub-Saharan Africa are smallholder farmers, and most of them are women. Food from domestic resources is crucial for reaching many of these SDG goals: poverty; hunger; health; management of water; even education, because these lady farmers put nearly every penny they make from their food production into educating their children. Will the noble Lord please undertake—and I ask as one Lord Cameron to another—to boost the currently small team in his department that is involved in agriculture to enable them to help these lady farmers to feed their families and their nations and resolve many of these sustainable development goals?
I will certainly take away what the noble Lord said and look at it carefully. In history, it is true that a green revolution of productivity in agriculture has almost always been necessary to see more of an industrial revolution and an increase in prosperity. But the noble Lord made a good point about small farmers—as we should keep it in the family, I had better go and have a careful look at it.
My Lords, the sustainable development goals included volunteering this time. As Prime Minister, the noble Lord really supported volunteering and introduced the International Citizen Service, which was run by VSO in this country incredibly successfully, so that the African Union then took it up as a major way of engaging the millions of young people in Africa whom he talked about. But a generation of young people in this country, and in the countries that organisations such as VSO work in, has missed out. Can he assure me that volunteering will now play a central part in the Government’s strategy to re-energise the achievement of the sustainable development goals and to do something to enable young people, here, in Africa and around the developing world, to get the skills and leadership that they need?
One of the great strengths of the SDGs was that they were much more comprehensive than the millennium development goals that they replaced. In fact, I helped to chair the panel that set them up, and we were determined that we would involve the private sector, bring together economic growth and climate, have much more to say about gender, and, as the noble Baroness rightly said, make sure that things such as volunteering were included. I am glad she mentioned the International Citizen Service, which I was proud to establish as Prime Minister. My International Development Secretary was Andrew Mitchell; the noble Baroness will notice that he and I are now back in the same department, and we hope to make some progress on this issue.
(9 months ago)
Lords ChamberTo ask the Secretary of State for Foreign, Commonwealth and Development Affairs what steps he is taking to champion a rules-based international order.
My Lords, an open and stable international order is in our interest. We use it to deliver on issues of domestic and global importance, such as the Bletchley AI safety declaration. We invest in it, as the fifth-largest UN budget contributor. We support reform of it to ensure that it benefits everyone, and we hold to account those who undermine it, including through steadfast support to Ukraine, sanctions against Russia and ensuring maritime security in the Red Sea. In a dangerous and uncertain world, this stable international order is more essential than ever.
I am grateful to the Foreign Secretary for the clarity of that Answer on the importance and scale of his task. I wonder whether that task was helped or hindered by two developments yesterday. The first was fresh advice from the UN High Commissioner for Refugees that the Rwanda scheme, now updated by the Rwanda treaty and the safety of Rwanda Bill, is still contrary to international law. The second development was comments by the Prime Minister on GB News that the Court of Human Rights is a “foreign” court and that he is prepared to defy it.
We do not believe that the Rwanda scheme is contrary to international law. I would characterise it by saying that things like the refugee convention were written for another age, when there was not mass international travel or the ubiquity of mobile phones. We are saying that, yes, this is out-of-the-box thinking and it is quite unorthodox, but you have a choice, frankly: when you have people arriving from a perfectly safe country into another safe country, you have to deal with that trade. That requires some fresh thinking. It is not possible to put people straight back in a boat and take them back to France, which is why the Rwanda scheme is being introduced. It is within the law and it is novel, but I believe it can work.
My Lords, as many feel that the whole international rule of law is collapsing before our eyes and as my noble friend has rightly remarked that this is a very dangerous and fragile international situation, does he agree that it will be coped with only by new international organisations and institutions or by brushing up the present set of them? Can he share his thoughts on where the priorities in that process should be? Should we concentrate on repairing the United Nations, which is in a mess, or invent new structures in that respect, as the noble Lord, Lord Owen, just suggested? Might the Commonwealth, by far the largest network of voluntary, like-minded nations in the world, have an important role in building up a future structure to deal with all these crises?
My Lords, that is an excellent question but difficult to answer. Fundamentally, we are in almost all these networks—we are in the G7, the G20 and the OECD, we are the fifth-biggest contributor to the UN and a permanent member of the Security Council—so we should be quite thoughtful and selective about where we think institutions can be strengthened. A good example of that is NATO; it is undoubtedly stronger than it was two, four, six, eight or 10 years ago, which is a very good thing. Some organisations you could spend the rest of your political life trying to reform but struggle to make progress—I might put the United Nations in that category. We should use what we have and make it work as well as we can, but we should also look at new institutions when there is a specific problem, such as Gavi, the Vaccine Alliance, which does amazing work that we should get behind. I am a practical conservative; I do not have an all-encompassing, global set of rules that we must abide by. Let us take what we have and, where we can, improve it.
My Lords, the noble Lord has been engaged in the enlargement of the UN Security Council. Can he update us on the progress of that, including the system of penholders? Also, when nations fail in their most important task of protecting the safety and security of their people, civil society is often the first to come to their defence. Guterres and the UN have encouraged the involvement of civil society in the Security Council. What does the noble Lord think about that and will he do more to support the Secretary-General in engaging with civil society?
I certainly support engaging with civil society at the United Nations Security Council, as we have been doing. I will look very carefully at what Secretary-General Guterres has said. We support United Nations Security Council reform—India should be a permanent member and we need to look at the representation of Africa—but, candidly, in trying to make progress in these reforms, this will be a very difficult one on which to get unanimity. In this difficult, dangerous and disputatious world, the most important thing is to ask what we can do to strengthen our networks, NATO and our defence, security and intelligence forces to keep us safe at home and to ask through which institutions we can get things done. That is my priority. Although I support United Nations Security Council reform, it might be some time coming.
My Lords, I think the Foreign Secretary said to the noble Baroness, Lady Chakrabarti, that Rwanda is a “perfectly safe country”. If that is the case, why do we still grant asylum to people coming from Rwanda? He suggested that international refugee law is rather out of date, implying that if a law comes from a different age then it can be ignored. Is that really the inference that he wanted to leave with the House?
No. I am saying that in the modern world, where you have the ubiquity of mobile phones and mass cheap travel, countries have to make a decision about how to deal with illegal migration. I will be very frank with the noble Baroness: I do not think that we can tolerate a situation where there is very wide-scale, visible illegal migration taking place in small boats. It is not only desperately dangerous and unsafe for the people who do it—another four people lost their lives in the freezing cold waters of the English Channel the other night—but it completely undermines faith in our immigration system. As I said, all these people are coming from a totally safe country, France.
You have a choice in politics. You can say—and I do not want to get too political, because I know that is not the way of this House—that you are going to work on dealing with the criminal gangs and work on more agreements with France. I agree with all those things. However, ultimately, if you do not say to the people who come in the boats that they cannot stay here because they came illegally, you will not stop this trade and you are not going to save those lives. This Government have made a choice: that is what we are going to do. Yes, it is complicated; yes, it is expensive; yes, in the case of Rwanda, is it out-of-the-box thinking. However, it is the right thing to do because, if you do not do it, you will carry on with the problem.
It is not just Britain that has this issue. Some 6 million people have crossed the southern border in the United States. Country after country in Europe is looking at novel thinking for how to deal with illegal immigration. We have to do that, because otherwise we will have a system which will have no public confidence.
My Lords, one of the best ways that the UK could stand up for a rules-based international order would be to do all we can to secure the release of Vladimir Kara-Murza, the British citizen incarcerated on trumped-up charges by Putin. Will the Foreign Secretary agree to an urgent meeting with me, his wife Evgenia Kara-Murza and those campaigning for his release?
I think I am right in saying that a meeting has already been arranged and is in process. I do not know whether the noble Lord will be joining us, but it would be a pleasure to get together after all these years.
My Lords, in furtherance of a rules-based society, I suggest to my noble friend that it would be desirable if he could promote a coalition of willing states to reinforce the efforts of the United States and the United Kingdom to ensure safe navigation in international seas. We need a coalition of willing nations to participate.
Obviously no one likes a coalition more than I do.
We do have a coalition of not only those countries taking part in Operation Prosperity Guardian in the Red Sea, but all those countries supporting it. Again, even when it came to the military action, there was a coalition of countries—including the Dutch, Canada and Australia—backing us militarily, and a wider coalition of countries supported the action taken. Wherever possible, we should build a coalition, but sometimes it is necessary to act quickly, and I think the Prime Minister made the right decision.
My Lords, how does a rules-based international order sit with the destruction of the Sino-British treaty, an international treaty, which has led to the dismantling of democracy and of “one country, two systems” in Hong Kong? How does it sit alongside the show trials of Jimmy Lai, a British citizen, and the naming in those proceedings of four other British citizens, including our former consul-general Andrew Heyn? Surely that in turn is a breach of the Geneva convention. Why have the Government not yet done anything to use Magnitsky sanctions against any of those who have been responsible for these things?
One of the reasons for supporting a rules-based order is that it enables you to call out other countries when they fail to live up to it. That is exactly what we have done in the case that the noble Lord refers to. That is why we have said that the national security law needs to be taken out, and that is why we have said that Jimmy Lai needs to be released. We have been very clear about that and how we do not think that it is in line with the arrangements that were put in place when the Hong Kong agreement was reached.
(9 months ago)
Lords Chamber(9 months ago)
Lords ChamberThat the draft Regulations laid before the House on 14 November 2023 be approved. Considered in Grand Committee on 10 January.
That the draft Regulations laid before the House on 27 November and 4 December be approved. Considered in Grand Committee on 10 January.
Relevant document: 7th Report from the Secondary Legislation Scrutiny Committee
My Lords, on behalf of my noble friend Lady Vere of Norbiton, I beg to move the Motions standing in her name on the Order Paper en bloc.
(9 months ago)
Lords ChamberMy Lords, this group and the next group of amendments follow debates that took place in Committee, and I am very grateful for the Minister’s response then and for his subsequent letters that have further amplified the discussion about this. I apologise for delaying the House—not for very long, I hope—simply, in the case of both amendments, not to make any point of principle contradicting what is in the Bill, but to try to ensure that the meaning of the Bill and its intentions are as clear as we can possibly make them.
The first two amendments, Amendments 1 and 2, work together to rewrite that bit of the Bill to state that the exempt contracts would be, in this instance, where they are “wholly or mainly funded” by an international organisation, or
“funded by an international organisation of which the United Kingdom is a member to a lesser extent”—
so that funding is to a lesser extent—and is “required to be” under a procedure adopted by that international organisation. Article 15 of the CPTPP has a requirement that we want to transpose into our legislation. It states that a procurement that is not covered by individual countries’ own procurement rules would be one that is
“funded by an international organisation or foreign or international grants, loans or other assistance to which procurement procedures or conditions of the international organisation or donor apply”.
What we are looking to do in this instance is to reproduce that, so that the exemption for contracts under our Procurement Act matches what is in the CPTPP.
The government view was that the CPTPP just says “funded”, while our general approach is to try to clarify, to a greater extent, that it should say “wholly or mainly funded”—namely, more than 50%—which is consistent with what we do in relation to the rule on the general procurement agreement. However, the point that I have now reached, which I put to my noble friend via these amendments, is that it is not necessarily the case that an organisation such as the World Bank has to be a majority funder in order for its funding—and that of others with which its funding is associated, which might be other providers of grants or loans, or the recipient country in one form or another—to be required to be conducted under its procedures. That being the case, should we reflect the CPTPP rules by saying that either a procurement is “wholly or mainly funded” by the international organisation, or, if it is funded to a lesser extent, that it is required to be subject to its procedures, and that that would give rise to an exemption under our procurement rules?
That is the point of the amendment. I am sure my noble friend will appreciate the rather fine distinctions, but I wonder whether he might agree that, at the very least, we want to be absolutely clear that, if a procurement has to be conducted under the rules of an international organisation, such as the World Bank, it should be exempt from our Procurement Act requirements. I beg to move Amendment 1.
My Lords, I begin by declaring my interests, which are very clearly listed on the Lords’ register. I have interests in limited companies and companies that are active in CPTPP countries, but I do not believe there is any conflict.
My Lords, we cannot really hear the Minister; could he raise his voice?
Yes, my apologies. Before I begin, I would like to declare my interests, which are very clearly listed on the Lords’ register. I have interests in limited companies and other companies active in CPTPP countries, but I do not believe there is any conflict of interest in this process today.
I will also say how excited I am about being back here today to cover Report stage of the CPTPP Bill. This incredible collective of millions of people, representing trillions of pounds-worth of trade, coming together will give huge benefit to us, and I am very excited about the opportunity for this great nation to add our trading muscle to what I think will be a phenomenal collective.
Importantly, I give a great deal of thanks to noble Members of this House who have contributed so much to the painstaking work which goes into crafting a Bill of this type and ensuring we come to the right conclusions in the right way. I know there have been a large number of you, many of whom are present today, but I particularly note the noble Lords, Lord McNicol and Lord Purvis, from the Opposition Benches, for their extremely collaborative and constructive input into the debates. My noble friend Lord Lansley, who we have just heard from, brings a wealth of experience, particularly on procurement. I am very grateful for his input. My noble friends Lady McIntosh, Lord Holmes, Lady Lawlor and a number of others, including the noble Baroness, Lady Hayter, and the noble Lord, Lord Kerr, have engaged with me. We still have one more stage after Report and I will be delighted to continue engaging with any Members of this House, or indeed any groups that noble Lords think it would be useful for me to engage with.
I will also set the scene briefly for the debates we are going to have on many of these respective issues. My noble friend Lady McIntosh is in her usual place, and I apologise, because I have been trying to reach her over the last few hours, but we have not had a chance to have a discussion. I reference this point because what happens today in terms of how we trade, or how we manage our own standards in this country, does not change tomorrow. I think it is important to summarise at the beginning of this debate that acceding to CPTPP in no way derogates our standards or our ability to control our standards and, indeed, our destiny. We have been very careful to ensure that the processes are indeed very separate.
I know that we will have these debates later, but it is worth re-emphasising this important point, which I think is sometimes lost in the excitement of CPTPP—the argument that somehow our standards, import requirements and so on change, when they do not. All food and drink products imported into the UK will still have to meet the respective food safety and biosecurity standards for the UK. We are not having to change any of our food standards as a result of joining CPTPP, and it is important to emphasise on these well-discussed points that hormone-treated beef and chlorine-washed chicken are banned in the UK and will not be allowed to enter the UK market.
I am very grateful to various agencies such as the Food Standards Agency, the Trade and Agriculture Commission, the International Agreements Committee and other groups that have been extremely focused on ensuring that these facts are properly reported. I am grateful to them for the backing that they have given me in ensuring that those statements are clear.
It is also worth pointing out that CPTPP preserves the right to regulate to protect human, animal and plant life and health. The TAC report says that the CPTPP does not require the UK to change its levels of statutory protection in relation to animal or plant life or health, animal welfare or environmental protection. I am well aware that noble Lords wish to cover these issues later in this debate, but it is important to set that scene.
There is one area I would like to draw on now, in advance of these discussions, regarding palm oil. I reassure the House that liberalising palm oil tariffs with Malaysia does not undermine the UK’s environmental credentials. We remain committed to supporting the sustainable production of palm oil. In 2021, 72% of UK palm oil imports were certified as sustainable, up from 16% in 2010.