Subsidy Control Bill (Seventh sitting)

Robin Millar Excerpts

Thursday 4th November 2021 Public Bill Committees

[Robin Millar (Aberconwy) (Con)]

Will the hon. Gentleman give way?

[Bill Esterson]

The hon. Gentleman is wearing a mask, so I will give way.

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[Robin Millar]

Is it not precisely the point that this does reflect the devolved agreement, because the Secretary of State has those reserved powers?

[Bill Esterson]

I think the hon. Gentleman missed the point I was making, but there we go. It is entirely appropriate, given that the regime is a four-nation regime, that the four nations have the powers of call-in to the CMA in the way that our amendment sets out.

[Robin Millar]

This is an important point, so I am grateful to the hon. Gentleman for giving way again so soon. There is no four nations concept within our constitution. We have one United Kingdom Government and three devolved Administrations. Four nations is something reserved for rugby matches and the vernacular—[Interruption.] Indeed, the rugby is six. It is not something within our constitution. He has referred to the four nations on several occasions, and on this occasion I feel it is important and relevant to make that point.

[Bill Esterson]

I suspect that more than one party would be very interested in repeating those remarks multiple times, certainly in two of the nations of this country. They are called nations within the devolved settlement; we have a devolution settlement that has “four nations” within it. It will be interesting to see how many times the hon. Gentleman is quoted saying that.

I will quote what George Peretz told us about why it matters that there should be a call-in power for all four nations:

“In a situation where an English local authority, the Secretary of State or another UK Government body acting as an English Department does something that is designed to benefit England but causes serious concern in Scotland or Wales, why should the Welsh or Scottish Ministers not be able to do the same thing if the concern is with competition or investment within the United Kingdom? I find it slightly hard to see what the argument against that is.”––[Official Report, Subsidy Control Public Bill Committee, 26 October 2021; c. 44, Q63.]

I have not heard from either the hon. Member for Clwyd South or the hon. Member for Aberconwy an argument against what he told us last week.

Rachel Merelie, senior director for the Office for the Internal Market at the CMA, noted:

“It is really important that all granting authorities are treated fairly and equitably, regardless of whether they are in the devolved nations or in England.”––[Official Report, Subsidy Control Public Bill Committee, 26 October 2021; c. 69, Q98.]

I am not the only one talking about the devolved nations by any means; we have it from the CMA.

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[Bill Esterson]

We have concerns about the way the clause allows the Secretary of State to use regulations to affect the content and form of CMA reports. This is a question of the CMA’s independence. On the Competition and Markets Authority website, it describes itself as

“an independent non-ministerial department”.

The CMA’s work

“is overseen by a Board, and led by the Chief Executive and senior team. Decisions in…investigations are made by independent members of a CMA panel.”

In contrast, the clause would empower the Secretary of State to amend, by using regulations, the content of the CMA’s reports. It is very hard to see how this is anything other than a direct contradiction of the principle of independence, baked into the CMA’s set-up.

The timing of the change, given the shameful proceedings in the Commons Chamber yesterday, leaves the suspicion that it is, again, about removing the principle of independence from the heart of the CMA’s role. We saw this with the Prime Minister’s own adviser on ministerial standards, Sir Alex Allan, resigning because of the breach of the ministerial code, and we saw it yesterday with members of the ruling party scrapping the rules or attempting to scrap the rules on MPs’ conduct because one of their own was found guilty of what the Standards Committee described as an “egregious” breach and then wanting to scrap the role of the independent standards commissioner.

[Robin Millar]

Will the hon. Gentleman give way?

[Bill Esterson]

Of course, they will all want to intervene—