Trade Bill

Lord Purvis of Tweed Excerpts

Report stage & Report: 3rd sitting (Hansard) & Report: 3rd sitting (Hansard): House of Lords
Wednesday 6th January 2021 Lords Chamber

I was singularly unpersuaded by the arguments of the noble Baroness, Lady Noakes, against Amendment 22. She described very fully the situations when codes of practice are generally used for guidance on the basis of complex legislation and in negotiations where the legislation needs to be explained by the code of practice, and that is the precisely the situation that we fall into as regards these trade negotiations and the maintenance of standards. I also find it rather staggering that she said that the Government have already promised to maintain the standards and therefore we should not fetter Ministers any further. My memory is that the Government promised us that Covid would be over by Christmastime, so I am not entirely convinced by government assurances on these standards. Let us have it in the legislation.

[Lord Purvis of Tweed (LD)]

My Lords, on my way in today I was reflecting on the fact that I started last year, at about this time, discussing a trade Bill on Report, so it is nice to see that some traditions in the House of Lords do not change.

I support Amendment 22, as the noble Lord, Lord Grantchester indicated. He moved it very well. I do not need to rehearse all the arguments because, as my noble friend indicated, we have had many debates on this issue.

I was grateful that the noble Baroness, Lady Jones, referred to what looks to be the news that the Senate of the United States may well be changing hands. That will bring about a direct consequence for the UK’s trade negotiations. This amendment refers to domestic standards, but it also links to who we trade with. Will there be pressure on our domestic standards by the country that we seek to have an agreement with? We know that the discussions with America are ongoing, and they are likely now to be impacted by a Democrat-controlled White House and full Congress—both Houses.

The consequence of that will mean that the Bipartisan Congressional Trade Priorities and Accountability Act 2015, which put in place conditions on the US trade representative in negotiations on agriculture, environmental standards and objectives, will be reformed, so the United States will have a new position when it comes to the ongoing discussions with the United Kingdom. That is now inevitable, which means that in our approach to the negotiations it is valid that we discuss what our equivalent legislation in this country will be that set our standards, and what the requirements on Ministers will be.

We know that the Government have accepted in part to enshrine standards obligations in a treaty. The European TCA, for example, has set a three-year standstill on organic standards. That is a guarantee, if ever there was one, that there would be no change over a period. Why three years? The noble Baroness, Lady Noakes, indicated that it would be a nonsense to put into any form of legislation a commitment that a Minister has given not to deviate from standards, but why then did we legislate for that exact thing last week in the Act for the European agreement? A standstill for three years on organic standards is a restriction on how this Parliament can now operate standards on organic farming. With that legislation, the Government have bound us for three years. I do not think there is any disagreement about that, because offering some degree of certainty to organic farmers on the standards that will be accepted for trading between the United Kingdom and the European Union is a positive thing. We suggest that under Amendment 22 there are other positive elements that should be highlighted regarding the way that we trade.

I was puzzled by the assertion that Amendment 22 will fetter the prerogative of Ministers and will limit their freedom to bring measures to Parliament for approval by indicating in effect instructions under statute of how they exercise their powers. What puzzles me is that the opposite side supported that with a government amendment to the Agriculture Act. I remind the House that Section 42 is a fettering of the prerogative power that limits the freedoms of Ministers, because it requires them, before they bring forward approval under CRaG, to carry out an exercise whereby they seek an independent body, now a statutory independent body—to emphasise the concern of the noble Baroness, Lady Noakes, about something that she has already supported—to report before Parliament acts. Therefore it is not we who do not necessarily trust the Government, because clearly the Government do not trust themselves if they brought forward an amendment to their own Bill that required an independent statutory body to report to Parliament before we even had a vote on it.

The noble Baroness’s point is even more reduced by the very quick search I was able to do on the legislation website for “Ministers must have regard to” before they carry out their duties. There are scores of examples in legislation where Ministers “must have regard to” before they exercise their ministerial functions on immigration, the health service, judicial appointments, inquiries. In most large areas where Ministers carry out their duties, such as negotiating trade or carrying out health duties, judicial appointments or whatever, there are many statutory expectations of what they must do before they carry out their functions. Amendment 22 is appropriate, because it puts in a slightly wider set of criteria on Section 42 of the Agriculture Act, which the Government themselves had put forward.

My final point is on standards in particular. I am glad that Amendment 22 references women’s rights. We debated the UK-Japan agreement at length, and there was consensus around the House that one of the deficiencies of that agreement was that it did not expand on the areas for supporting women’s rights and expanding women’s economic empowerment within that agreement. On human rights, we know that the Cotonou agreement is already out of date and has to be replaced, so the extra elements under proposed new subsection (3) of Amendment 22 are appropriate.

I will make one point on food rights that links to developments just three days ago with regard to food imports. We assume that food that comes into the United Kingdom is of the same standard that we would expect our own producers to sell elsewhere, and we have worked very hard through the Fairtrade Foundation, which we have supported, and other organisations to make sure that that is the case. I was very sad to learn that Brexit tariffs were imposed on a shipment of fair-trade goods from Africa that arrived into Portsmouth—£17,500 on shipments of bananas from Ghana—and that tariffs of 16.5% will be imposed on tuna.

I hope very much that the Government will recognise that this should not be the situation and that it can be rectified. As much as we want to promote other countries improving standards on labour rights, environmental standards and food standards, as we do here at home, we must work in partnership and we should not penalise those for whom we seek to have much higher standards. I am very happy to support Amendment 22.

[The Minister of State, Department for Business, Energy and Industrial Strategy and Department for International Trade (Lord Grimstone of Boscobel) (Con)]

My Lords, it seems very appropriate that we are beginning the new year by welcoming a familiar friend: a debate on standards in the Trade Bill. Yet again, there were most interesting comments from noble Lords in the debate.

I turn first to Amendment 20, so ably moved by the noble Baroness, Lady Jones of Moulsecoomb, which seeks to prevent the ratification of FTAs unless there are provisions that ensure that imports under those FTAs comply with the UK’s domestic standards for food safety, animal welfare and the environment.

As noble Lords know, the Bill is principally concerned with continuity agreements, which we have now signed with 63 partner countries. It is rather cheering that each time I speak from this Dispatch Box that number has crept up. I should emphasise to noble Lords that none of those agreements has led to a lowering of domestic standards. Cheap food is not flooding our market. Workers’ rights are not being undermined. All we have done is deliver on our central objective of providing continuity for businesses and consumers.

The amendment has unintended consequences that its signatories have not addressed. It could, I am afraid, jeopardise the UK’s ability to meet its WTO commitments. WTO rules constrain the ability of the UK to restrict imports based on criteria such as animal welfare and environmental protection. These WTO rules play an important and balanced role in containing disguised protectionism, but inevitably mean that there is a real risk of a WTO dispute if we do not handle these important matters with care.

Establishing the amendment as a negotiating objective has the potential to create great uncertainty and undermine continuity for businesses at an already critical time. I know that noble Lords would not wish this. It may of course jeopardise the implementation of continuity agreements, including those already signed but not yet ratified. Let us not forget that UK businesses have a long history of trading under these agreements and rely on them for stability and certainty. Any delay to implementation will impact the import of goods on which businesses and consumers are dependent. Furthermore, the noble Baroness’s amendment could result in similar measures being deployed by trade partners with regard to UK exports. That could prevent UK producers from being able to export goods overseas until they had demonstrated that they had met the domestic standards of our trade partners.

However, we of course understand the importance of this issue and the Government have established a number of initiatives to ensure that any concerns around agriculture and the environment are addressed at each stage of the negotiation processes. This includes: public consultations ahead of new trade negotiations; increased engagement with agriculture and agri-food stakeholders; establishing the trade advisory groups; and of course passing an amendment to this Bill, placing the Trade and Agriculture Commission on a statutory footing.

I now turn to Amendment 22, in the names of the noble Lords, Lord Grantchester and Lord Purvis, alongside the noble Baronesses, Lady Boycott and Lady Jones of Moulsecoomb. As I have explained, our continuity programme maintains high standards in areas including food standards, human rights and environmental obligations. Indeed, in many areas the UK goes much further than the EU. Like the noble Lord, Lord Grantchester, I am proud of our standards. Let me give some examples.

When discussing workers’ rights, the UK has led the way and the EU is significantly behind us. The statutory minimum wage in the UK for people aged 25 and over is £8.72 an hour, whereas the EU has no legal minimum. Furthermore, UK workers can get statutory sick pay for up to 28 weeks, whereas the EU has no minimum sick leave or sick pay legislation. Further still—this gets to the crux of our debate—the UK has world-leading standards for animal welfare, while food standards are overseen by the Food Standards Agency and Food Standards Scotland, which I am sure noble Lords agree are the most independent of experts.

The UK has a strong history of protecting human rights and promoting our values globally. We will continue to encourage all states to uphold international human rights obligations. It should also be said that there is no provision within the Trade Bill that could allow amendment of the Human Rights Act.

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[Lord Purvis of Tweed (LD)]

My Lords, I reserved my position on Amendment 25 when we debated it before Christmas. I will not divide the House on Amendment 25, which relates to trade with developing countries. In the previous group, I referred to the consequences of the tariffs now being charged. In the next few days, I hope that the Minister will add extra effort to ensure that this situation does not continue and that we see an agreement with Ghana, in particular, to resolve this issue. On that basis, I will not move Amendment 25.

Amendment 25 not moved.

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[Baroness Bakewell of Hardington Mandeville (LD) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady Boycott. I am pleased to be able to make a short contribution to the debate on this group of amendments.

Amendment 26A, on the accurate labelling of products, as laid out so eloquently by the noble Baroness, is essential. I will not repeat the arguments that she has made, which I have made myself in debates. Consumers wish to know that the food they are buying is safe to eat, is of high quality and has been produced in hygienic conditions. Should there be a problem with any of the above, it is important that the produce is traceable, that both human and animal welfare have been protected during production and that the environment has not been damaged during growth and production. The latter is becoming more important by the day as we see the effects of climate change on our environment. Our agriculture and food industry produces the very best for human and animal consumption. Clarity on labelling provides the reassurance that both our farmers and the public expect.

Confidence in government is currently at a bit of a low ebb. It is necessary to repair that confidence, and detailed labelling is a step in the right direction for both farmers and food producers. Both Houses of Parliament must be reassured that this will take place at all stages, from inception—the planting of seeds—right through to harvesting and processing. This cannot be a back-door function of any trade deal.

Amendment 31A would ensure that public and human health came within the remit of the Trade and Agriculture Commission. Given the pandemic that we are living through, it is vital that we as a nation make every effort to ensure that such a situation does not happen in future. The TAC is the right place for this to be considered on a legal footing. Public health is an important element of maintaining confidence in all levels of government, from national level down to district and parish councils. All are interested in ensuring that inequalities are dealt with effectively and removed, and I hope the Minister is able to accept these amendments.

Amendment 34A would leave out the words

“except insofar as they relate to human life or health”.

The amendment would remove the Secretary of State’s ability to limit the advice which the Trade and Agriculture Commission can provide to him or her. For the TAC to be truly effective, it must be able to provide independent advice across a wide range of areas, many of which may not be obvious now. We have no way of telling with any accuracy what future world events may affect our trade and agriculture agreements and sectors, and I believe that it is wise not to be prescriptive at this stage. I support Amendment 31A and will vote in favour of it if a Division is called.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful for this amendment being moved, because it means that we can debate something that is now a reality: changes in the way that goods coming into the UK and those to be exported will have to be labelled. We know that changes are already under way because of the result of the European agreement, and this amendment would take it to the international stage when it comes to the implications of any goods coming into the UK from other markets beyond.

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[The Deputy Speaker (Baroness Henig) (Lab)]

I call the next speaker, the noble Lord, Lord Purvis of Tweed.

[Lord Purvis of Tweed (LD)]

My Lords, I apologise to the House; clearly the message that I had scratched from this group has not got through. I reflected on the fact that three Liberal speakers on this group would spoil the House too much, so I have nothing to add after the very able way in which my noble friend moved this amendment.

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, it is a pleasure to follow the very humble noble Lord, Lord Purvis of Tweed, and the noble Baroness, Lady Kramer. I shall speak to Amendment 27, which stands in their names and to which I have added mine. I shall also speak to Amendment 47, in the name of the noble Lord, Lord Bassam of Brighton, to which I have attached my name, and to Amendment 48, which I think might best be described as a friendly amendment to Amendment 47, as it makes just a small addition to it.

As the noble Baroness, Lady Kramer, said in introducing this group, these amendments very much fit together. Amendment 27 refers to the fact that the TRA should listen to a wide range of representative groups. That very much relates to the debate on the preceding group, where the noble Baroness, Lady Boycott, and many others made a powerful case for the importance of food standards and labelling standards. If consumers were listened to by the TRA, it would certainly be very helpful. As we are in a climate emergency and a nature crisis, we need to make sure that expert voices from that area are listened to as well. It is something that perhaps we do not always see traditionally as part of trade, but it is becoming very obvious that it is a crucial part of the whole issue.

On Amendments 47 and 48 in particular, we know that we have a huge problem with the bodies or organisations that are appointed, particularly by Westminster, being representative of all parts of the country in terms of region, background, knowledge and skills. As has just been highlighted by the appointment of the new chair of the BBC, it would seem that, under this Government, there are very few positions in UK society that a long career in the financial sector does not qualify you for. Crucially, we need our government institutions and bodies to be far more representative of our society as a whole. That means including different voices, genders, backgrounds, regions, educational backgrounds, et cetera. These three amendments taken as a package are a modest but important attempt to ensure that, when we formulate and make decisions about trade policy, a range of voices is heard.

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[Baroness Neville-Rolfe (Con) [V]]

My Lords, I welcome the government amendments, which are technical in nature but allow proper co-operation between HMRC and the devolved authorities. As I was not able to be in the House in person during debates on the Trade (Disclosure of Information) Act, I have probably not understood the purpose of Amendment 36A in the name of the noble Lord, Lord Stevenson of Balmacara—but I have a question that perhaps he or my noble friend the Minister could kindly respond to.

I always worry about the wisdom of giving a power to amend primary legislation by order, particularly on the collection or disclosure of information by HMRC, which seems to be the issue in Clause 7(4). As a former international retailer, I know how commercially sensitive such information is and how onerous ill-thought-out form-filling requirements can be. I want to make sure that the power could not be misused by the Executive—we have seen a certain amount of evasion of scrutiny during Covid. I want an assurance from the Minister, assuming that the power to amend primary legislation is retained in what is now being proposed, that the power would be used sensibly. If it disappears, then that would also meet my concern.

[Lord Purvis of Tweed (LD)]

My Lords, anybody seeking to follow this Trade Bill, including the Bill that we had before Christmas, will struggle to follow the three elements through a natural progression—but we are grateful to the noble Lord, Lord Lansley, for his forensic skill. He has been able to assist in the scrutiny of this, and the questions he asks are very valid. I am glad the noble Lord, Lord Stevenson, has brought forward his amendment, and I look forward to the response from the Government and the Minister. Like others, I welcome the Minister’s very full letter in response to the debate that we had on that fast-tracked piece of legislation.

There are a couple of areas that are still troubling me, and I hope the Minister will be able to explain those. I am happy with his explanation that it is purely a matter of parliamentary drafting, with the same legal effect. I will use this ad nauseam in my future career in this House, when it comes to any Ministers quibbling over the drafting of any amendments that I bring forward. I will say that it is purely drafting, with the same legal effect—so, speaking personally, I am very happy that that precedent has been set.

I am glad that the amendments to this Bill, which will effectively become the successor to the fast-tracked Bill, reference HMRC sharing information with the devolved Administrations. This goes back to the very first time we discussed these amendments, so I am happy and pleased that the Government have indicated their support for that.

However, I am interested in the language of Amendment 37, which I welcome, when it states:

“facilitating the exercise by a devolved authority of the authority’s functions relating to trade”.

Can the Minister outline what these are? In the previous group, on consulting the devolved Administrations on trade agreements, the noble Viscount, Lord Younger, was at pains to stress—and was accurate—that, under the Scotland Act and others, trade, as far as international relations are concerned, is a reserved matter.

However, we all know that there are “functions relating to trade” in the devolved Administrations; we know this for certain because it will be in the Bill. HMRC will facilitate the exercise of those functions by the powers under what will be this Act. I would be grateful if the Minister could outline what those “functions relating to trade” are; it would be helpful to us to know the extent of the Government’s position as regards what responsibilities for trade the devolved Administrations have.

Another thing still niggling me is referenced in the Minister’s letter. I have asked on a number of occasions why it was not more straightforward to put authorities that are linked with the ports and their access routes, in Scotland in particular, under those areas in the Bill. The Government have said that the powers were needed in England primarily, as the Minister’s letter stated, because those authorities were identified as the ones facing the greatest disruption at the end of the transition period, but this legislation is now for the long term and this data will also be shared with the WTO and other international bodies.

The Government have said that if it becomes necessary to add an authority in a devolved Administration country, they can use order-making powers to do it, but in subsection (4) there is a reference to an offence in Scotland for a non-existing authority breaching the disclosing information powers, and it carries a term not exceeding 12 months, so for a body that is not included in the legislation it is a 12-month prison sentence for disclosing information. That happens to be twice the length of time that it will now be in England, under government Amendment 40, which is six months. I do not know why that is the case, so perhaps the Minister can explain. There seems to be a ghost criminal offence created by this legislation that does not impact on anybody and is twice as much as it is in England. I just do not understand why.

I hope that the Minister can respond. I will certainly be supporting these amendments. The letter was very helpful and gave the process for indicating when the sunset clause will kick in for the legislation that we passed before Christmas, and given that this legislation is now for the very long term I hope that the Minister can respond to the points that have been raised.

[Lord Grimstone of Boscobel (Con)]

My Lords, I am perpetually grateful to the noble Lord, Lord Stevenson of Balmacara, for his contribution to the discussion of this Bill. Turning to Amendment 36A, in the noble Lord’s name, I am sure that noble Lords will agree that for the Government to grow and strengthen the UK’s export capability, we need a clear understanding of the UK’s exporters. This would ensure that the work we do is targeted and tailored to the businesses where it will deliver the maximum benefit.

Clause 7 sets out the powers needed for the Government to collect data to establish the number and identity of UK businesses exporting goods and services, particularly the smaller businesses and sole traders that may not be readily identifiable from existing data, and where the Government can provide a helping hand, something of course which the Government enjoy doing, so that they can reach new markets.

Amendment 36A to remove Clause 7(4) would restrict the ability of the Government to fully implement the new voluntary—I stress voluntary—exporter question. A similar amendment was discussed in Committee, when noble Lords raised concerns that secondary legislation should not have the power to change primary legislation. However, to include new questions within the relevant tax return—it is that very specified matter—an affirmative SI will be required to amend the relevant legislation. That is the purpose of Clause 7(4), which provides the necessary powers to do so. I repeat that Clause 7(4) is necessary to ensure that the relevant exporter questions are included, as intended on tax return forms. The practical implementation of this will be a tick box on tax returns which the person filling in the tax return can tick if he wishes to identify himself as an exporter; it is entirely voluntary. On that basis, I ask for the amendment to be withdrawn.

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[Baroness Noakes (Con)]

My Lords, I am sorry to have to say to my noble friend Lord Lansley that I believe that your Lordships’ House should have nothing to do with this amendment. When the Taxation (Cross-border Trade) Act 2018 was brought to this House, it arrived as a Supply Bill. There was much huffing and puffing by noble Lords on the Benches opposite at the time, but, of course, the House accepted it. The effect was that there was no Committee stage of the Bill and no opportunity to make any amendments. While the Companion is silent on the subject, it seems to me that if we were unable to amend a Bill during its passage through your Lordships’ House, that should also extend to any amendments to the resulting Act, as its nature relating to supply cannot have changed simply as the result of Royal Assent. I therefore hope that my noble friend Lord Lansley will withdraw his amendment.

[Lord Purvis of Tweed (LD)]

My Lords, I am less squeamish that the noble Baroness about the amendment of the noble Lord, Lord Lansley, and I am grateful to him for bringing it forward. As our discussion about the Trade Remedies Authority demonstrated, the framework for how the UK, now outside the European Union, will approach trade remedies on disputes where we believe that another country is acting beyond WTO standards and principles, is much more to do with public debate and full, wide parliamentary scrutiny than whether the parent legislation involved financial privilege. Our debates about the Trade Remedies Authority lead naturally to asking what is going to provide a framework of accountability for any decisions taken as a result of its recommendations.

I have only one issue to raise with the Minister. I was not satisfied with the response in Committee to a matter I raised. One of the justifications for not supporting the amendment was that, as the noble Lord, Lord Lansley, said, the Minister said that there is sensitivity to some of these aspects. Of course there is sensitivity: that is true by definition. In any trade dispute, there will be sensitive aspects; I do not think that is denied. The noble Lord, Lord Lansley, is absolutely right: we were discussing a previous version of this Bill on Report when the WTO authorised the United States to impose $7.5 billion-worth of tariffs on the EU. The WTO subsequently authorised the EU to impose countermeasures of $4 billion and, as the noble Lord said, from the United States’ point of view, the question whether to make a recalculation for the EU 27 is now being reviewed.

The most important element, to my mind, is that the WTO authorised it. I do not think anybody on any side of this House is proposing that the UK should act illegally in a trade dispute in which we are then seeking to be on the right side, inasmuch as we would not use WTO procedures. The WTO procedures are quite clear: you cannot put forward countermeasures which will include tariffs unless they have gone through the due process in the WTO.

Therefore, the notification of the WTO, with the tariff measures as part of the countermeasures, will be in the public domain. It will be debated. It is therefore nonsense to think that there will be scrutiny, transparency and a public debate regarding our measures to the WTO, but not in Parliament. Many sectors will be involved, as we saw with the US measures. I do not need to go into the detail, but be it whisky, textiles or the metal industry, these measures and potential countermeasures have an impact domestically on certain sectors, regions and nations of the UK. Therefore, it is right that, if we are to make a measured and targeted response to a third country that we believe has acted against its obligations, we ensure that we are not acting in self-defeating self-interest, and a degree of accountability is thus required.

I simply cannot understand why the Government believe that measures that have been made public cannot then be approved by Parliament. I continuously support the efforts of the noble Lord, Lord Lansley, in this regard.

[Lord Stevenson of Balmacara (Lab) [V]]

My Lords, the noble Lord, Lord Lansley, has raised a very interesting question. We need to think a bit harder about it than we did when we first looked at this in Committee.

The issue is not so much with the powers split between the Commons and Lords in relation to financial matters, which I think was the point made by the noble Baroness, Lady Noakes. It is more to do with—as the noble Lord, Lord Purvis, was trying to get us on to—the reality of the grounds on which we have to consider more widely and the relationship between a pure measure, such as tariffs, and the way in which it might be used in any trade dispute, or any day-to-day consideration of our trading relationships. Out of that comes a consideration about whether this is an executive issue or there are also parliamentary concerns.

Taking it from the other end, the fact that the powers enshrined in the original legislation are for a negative instrument suggests that the Government have taken the view that this needs the very lowest level of parliamentary scrutiny. As the noble Lord, Lord Purvis, pointed out very well, this cannot be right. These areas often deal with very important and quite meaty issues to do with industrial policy, employment and the whole economy. There seems to be a distortion being built up between the particular issue in hand, the remedies available and the role of Parliament in considering it.

Surely it would be wrong if we ended up in a situation where the only parliamentary process was consideration of a negative statutory instrument when, in truth, the effects it was trying to ameliorate were causing concern on quite a large scale in the country. I do not have a solution to this. I do not think this Bill is going to provide us with an outlet. I wonder whether the Minister might consider taking this away. Perhaps a more considered review is needed in a couple of years’ time, when we have had experience of how it works in practice.

Without wishing to put words in his mouth or ask him to commit to something he cannot commit to, can he give an assurance that this is something the Government will keep a close eye on? Should issues arise during the next year or so, an appropriate way forward would be to take this as an issue and see whether, as a result of the scale of the penalties, the style of the approach being taken through Parliament and the impact this is having on the economy more widely, it might be best dealt with through a review process.

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[The Deputy Speaker (Baroness Watkins of Tavistock) (CB)]

I have received a request to ask a short question from the noble Lord, Lord Purvis of Tweed. I call the noble Lord to ask a short question of elucidation.

[Lord Purvis of Tweed (LD)]

My Lords, I apologise for detaining the House; I know the hour is late. I am grateful to the Minister for outlining those examples. He gave the impression that Parliament should not necessarily have the ability to approve any of these measures, but that this should be Government to Government, prerogative to prerogative. However, the legislation provides for parliamentary approval if it is through a negative procedure. So Parliament could still annul this, which would bring about all the issues he warns against. He seems to be making the case that Parliament should not even have the ability to annul some of these measures. If Parliament ultimately has the ability to approve or not to approve, we are in a different realm. I hope that, as the noble Lord, Lord Stevenson, indicated, the Government could at least reflect on this debate and the points that have been made on the benefit of having a wider degree of scrutiny, or at least public debate, of some of these aspects.

[Lord Grimstone of Boscobel (Con)]

I thank the noble Lord for those comments. The Government will of course reflect on this debate. I perfectly understand the requirement for the annulment power, but I believe that both Houses of Parliament would wish to use that annulment power sensibly and sensitively, in light of the circumstances which might underlie it.

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[Lord Purvis of Tweed (LD)]

My Lords, I am grateful to the noble Lord, Lord Lennie, for allowing us to conclude at the place where we started: procurement. It is perhaps a sign—I agree with the noble Baroness—that there has been a creeping increase in executive power during this process. At least the scrutiny that this House has afforded the Bill has been thorough, even if the Government may think it has been too long. Nevertheless, we started discussions on this Bill with procurement. And then the United Kingdom Internal Market Bill was introduced, scrutinised and passed before we came to the conclusion of this.

Of interest, the question that I asked the Minister, the noble Lord, Lord Callanan, on the United Kingdom Internal Market Bill was how the regulations on procurement would interact with those that will come through our obligations under international procurement. Could the Minister give us a timeframe for when we expect to see the implementation of many of the Government’s policies on procurement that will now be authorised through our membership of the global arrangements? That interaction is going to be very important.

I have sympathy with the amendment on the basis that the extent of procurement goes far beyond what many people may think, which is simply about the Government purchasing goods. So much of our NHS, in both primary and mental health, is provided by contractors through procurement. The extent is really quite extensive—it is a considerable part of the UK economy—so this is not something that we should be shy about discussing in brief. It is of major importance to the UK economy, and indeed it will be a key part of our international relations.

So I ask the Minister to outline a little more detail. If he cannot give me that information today, I will be happy for him to write to me, because we will be needing to debate in full the Government’s procurement policies going forward, preferably through resolutions in both Houses. We wish to see the details of the Government’s intentions.

[Lord Grimstone of Boscobel (Con)]

My Lords, I will now address Amendment 46, tabled by the noble Lord, Lord Lennie, which seeks to apply the affirmative procedure for any regulations made using the powers under Clause 1.

Perhaps understandably, because this is the last amendment that we will be addressing on Report, noble Lords wished to get certain matters off their chest at the commencement of debate on this amendment, so perhaps they will understand if I do not respond specifically to those points but restrict my comments to the amendment. I will of course commit to the noble Lord, Lord Purvis, that I will write to him with details of the exact timetable, which I do not have available to me at the moment.

Turning to this amendment and, as I say, restricting my comments to the amendment, given the late hour, I first remind noble Lords that the UK will accede to the GPA on the basis of continuity. This means that the “coverage schedules” referenced by noble Lords today and in Committee will remain broadly the same as those that the UK has had under EU membership. I know that noble Lords have suspicious minds and I say “broadly” because the UK’s independent GPA schedules incorporate technical changes to reflect the fact that the UK is no longer an EU member state, and there are now successor government entities other than those listed in Annexes 1 to 3. I have provided more details of these changes in a written response to a question asked on this issue in Committee by the noble Lord, Lord Fox, which I am happy to outline to the House.

The UK’s independent coverage schedules were shared with the International Trade Committee in 2018, along with the text of the GPA and the schedules of other GPA parties. They were then laid before Parliament for scrutiny, in line with the Constitutional Reform and Governance Act, and were concluded without objection in 2019. Since then, Switzerland has agreed to implement the GPA, as revised in 2012. As such, to ensure appropriate parliamentary scrutiny and transparency, the new Swiss schedules were laid before Parliament in October 2020. So I hope noble Lords will agree that there has been ample opportunity to scrutinise the terms of the UK’s GPA accession.

With regard to the scrutiny of our future participation in the GPA as an independent party, I again reassure noble Lords that provisions under Clause 1 are limited to a very specific set of scenarios in the GPA. I stress that this does not include any broader renegotiation of the GPA or of the UK’s market access offer to the GPA.

In the short term, the powers are required to implement an update to the list of central government entities in Annexe 1 of the UK’s GPA schedule. The update will reflect the fact that many entities have merged, moved or changed name since the list was originally written. Given the limited nature of such changes, I believe it is not appropriate to apply the affirmative procedure to Clause 1. Moreover, it is important that these necessary regulations be made swiftly because, as I often find myself saying, if there are delays, the UK could be in breach of its obligations under international law. I draw noble Lords’ attention to the fact that the Delegated Powers and Regulatory Reform Committee of this House has twice considered the power in this clause and on neither occasion saw the need to comment on the use of the negative procedure.

As we are now reaching the end of Report, I will make some concluding remarks. I think that anybody who has witnessed the way our House has dealt with this Report stage can only admire the scrutiny noble Lords have given. That scrutiny has illustrated various aspects of the Bill which were not necessarily fully visible to people at the beginning, and it has drawn people’s attention to how important trade policy now is to the United Kingdom. The fact that the United Kingdom now has full control of its trade policy will lead in the years to come to some very positive developments, as we have already seen with the free trade agreements we are negotiating.

I very much thank noble Lords for the way they have approached Report stage. This is the first Bill that I have had the pleasure of taking through the House, other than our “son of Bill”, which we did before Christmas. I thank noble Lords for the way that they have assisted me and dealt with my inadequacies from time to time, no doubt, in the way that I have presented this Bill.

I thank your Lordships for the attention you have given to this Bill and I look forward to Third Reading. With that, I ask the noble Lord to withdraw his amendment.