PARLIAMENTARY DEBATE
United Kingdom Internal Market Bill - 16 September 2020 (Commons/Commons Chamber)
Debate Detail
Further considered in Committee
[Dame Eleanor Laing in the Chair]
Clause 46
Power to provide financial assistance for economic development etc
“, after obtaining the agreement of the relevant devolved Minister,”.
This amendment is intended to ensure that Ministers of the Crown obtain the agreement of the relevant devolved minister before operating within devolved competencies..
Amendment 11, page 36, line 34, after “Parliament” insert
“upon the approval of the relevant devolved authorities”.
Amendment 19, page 37, line 3, at end insert—
“(1A) If provision to be made by a Minister of the Crown under subsection (1) would relate to any matter for which a relevant body has legislative competence, the provision may only be made after that body has approved a motion consenting to that provision.
(1B) In this section, a “relevant body” is—
(a) the Scottish Parliament,
(b) Senedd Cymru, or
(c) the Northern Ireland Assembly.
(1C) A matter is within the devolved competence of a relevant body if it would be within the legislative competence of that body if it were contained in an Act of that body.”
Amendment 20, page 37, line 4, at end insert—
“(1A) Any financial assistance provided under this section must be consistent with the achievement of any climate and environmental goals and targets applicable in the relevant part or parts of the United Kingdom.”
The intention of this amendment is to ensure that financial assistance for economic development, etc under this Act is consistent with the achievement of applicable climate and environmental goals and targets.
Clause 46 stand part.
Amendment 23, in clause 47, page 37, line 23, leave out “take the form” and insert “be provided by way”.
This amendment, together with Amendment 24, would allow financial assistance under Clause 46 to take any form.
Amendment 24, page 37, line 23, after “indemnities” insert
“or in any other form”.
This amendment, together with Amendment 23, would allow financial assistance under Clause 46 to take any form.
Amendment 25, page 37, line 25, after “interest” insert “or other return”.
This amendment would ensure that the Minister could provide financial assistance in a way that generates a return other than interest - which might be the case for investment in investment funds.
Amendment 26, page 37, line 26, at end insert—
“(d) may be provided to an investment fund for onward investment or administrative costs relating to onward investment.”
This amendment would enable the Minister to provide financial assistance to investment funds for onward investment.
Amendment 12, page 37, line 26, at end insert—
“(1A) In Wales, Scotland and Northern Ireland, powers over the administration and management of financial assistance under section 46 shall be fully devolved to Senedd Cymru, the Scottish Parliament and the Northern Ireland Assembly respectively.
(1B) The total amounts made available for financial assistance under section 46 must be pre-allocated based on each nation’s relative wealth expressed as Gross Domestic Product (GDP) per capita.
(1C) The total amounts made available for financial assistance under section 46 must take the form of a multi-annual funding programme to allow long-term planning and funding security.”
This amendment is intended to ensure that the administration and management of funding for financial assistance shall be entirely devolved to the devolved legislatures, that funding levels shall be pre-allocated according to need, and that there shall be a multi-annual funding programme for funding financial assistance under this Act.
Amendment 14, page 37, line 29, at end, insert—
“(3A) Financial assistance under section 46 must be the subject of a framework agreement to be agreed by resolution of each House of Parliament.”
The intention of this amendment is to provide a policy framework for the allocation of financial assistance.
Amendment 15, page 37, line 29, at end, insert—
“(3B) The Treasury must include in the Estimates presented to the House of Commons proposals for funding each of the devolved administrations to provide financial assistance for the purposes set out in section 46 in relation to the areas of the United Kingdom covered by that devolved administration.”
The intention of this amendment is to ensure that devolved administrations in Scotland, Wales and Northern Ireland are funded to provide financial assistance under this Act.
Amendment 16, page 37, line 29, at end, insert—
“(3C) Any financial assistance provided under section 46 in relation to areas of the United Kingdom covered by a devolved administration must be subject to allocation by the relevant devolved administration.”
The intention of this amendment is to ensure that devolved administrations in Scotland, Wales and Northern Ireland retain current powers over devolved matters.
Amendment 22, page 37, line 29, at end insert—
“(3) No enactment or rule of law prior to the passing of this Act prevents financial assistance being provided under section 46 to any person in Northern Ireland.”
This amendment is intended to ensure that Part 6 of the Act will apply to Northern Ireland in the same way as to the other parts of the United Kingdom.
Clause 47 stand part.
I have huge sympathy with the amendments tabled by my colleagues in Plaid Cymru and the SDLP, and with the climate change amendment tabled by the hon. Member for Brighton, Pavilion (Caroline Lucas), because climate change is something the Scottish Government have tried very hard to push on and have made much progress on—ahead of the UK Government.
Amendments 14 and 15, in the name of the right hon. Member for Doncaster North (Edward Miliband) and his colleagues, reflect the issues set out yesterday by my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). These frameworks exist, but the UK Government wish to ride roughshod over those mechanisms—to tear them up and to impose their will upon Scotland. These amendments from the official Opposition do nothing to address this truth.
If we were to take them at their word, we might think that the UK Government were doing Scotland some sort of kindness. Who would object to something called financial assistance, after all? However, we on these Benches know what that assistance is apt to look like and the strings that come with it. We already know that they are prepared to lie to the Queen and break international law, so what is this Government’s word really worth?
The Prime Minister has made clear his intention to stamp a Union flag on projects in Scotland, out of some kind of petulant jealousy of how well EU-flagged projects in Scotland are regarded, but there is a fundamental difference with those projects. They were done in collaboration and co-operation with the Scottish Government, and they are projects that would never have happened if it were up to the UK Government.
A quick look through the Scotland-EU funding programme highlights projects large and small—infrastructure, research, inclusive growth and employability, low-carbon initiatives—but there is still no plan and still no budget from the UK Government to replace these. Their shared prosperity fund is still, astonishingly, after all these years, yet to be unveiled. In contrast, the EU is a trusted partner with a track record to be proud of. We also stand to lose the valuable international aspects of the links this funding can bring with cross-European collaboration, which stands with the founding principles of the EU and takes Scotland out into that wider world.
In the vein of building bridges rather than walls, I would like to mention a few bridges to illustrate my point. The stunning Queensferry crossing—toll free and built by the Scottish Government in response to the corrosion of the Forth road bridge—is a project that was mooted in the 1990s, prior to devolution, before being shut down by the UK Government of the time, a Labour Government I should say. This bridge was delivered by the Scottish National party—not a penny piece from the UK Government towards its construction.
The Kessock bridge, of which my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey is rightly proud, was built with European funds. Money in the region of £90 million for projects in the Outer Hebrides over the past 25 years has transformed transportation through ferry terminals, bridges and causeways, and the bulk of that came from European Union funds.
What bridges does the current Prime Minister have to speak of? The £53 million he chucked at the Garden bridge in London, which does not even exist, or the bridge that might also be a euphemism for a tunnel, as described by the Secretary of State for Scotland—that £20 billion bridge over the second world war munitions dump at Beaufort’s dyke in the Irish sea? These last two fantasy projects tell us something of what we need to know about the UK Government’s approach to infrastructure projects.
This also tells us that the Prime Minister was absolutely wrong when he said:
“A pound spent in Croydon is of far more value to the country than a pound spent in Strathclyde”,
because the opposite is true. A pound spent in the south-east of England is barely noticeable, but think again of that £90 million investment in the Western Isles—noticed by all, transformational in its impact, and of real value to the people who live and work there. Subsidiarity, EU style.
To return to the Bill, clause 46(1) states:
“A Minister of the Crown may, out of money provided by Parliament, provide financial assistance to any person for, or in connection with, any of the following purposes”.
Let me stop there. It states “to any person”. I very much hope that that person is not the former Transport Minister, the right hon. Member for Epsom and Ewell (Chris Grayling), or we may be in deeper bother than we think. After all, just shy of 20 major UK Government failings can be traced to him, including handing £40 million to a ferry firm with no ferries. But back to my list.
“Subsection (1)(a) refers to promoting economic development in the United Kingdom or any area of the United Kingdom”.
That is a clear responsibility of the Scottish Government, in co-operation with local government or enterprise agencies, business and the third sector. They know best the landscape of Scotland and what would work best for her people and her communities, and we have a quite different idea of economic development from the UK Government’s race to the bottom. Who are the UK Government to say that, all of a sudden, factory X must drop from the sky? We may be lured in by a sweetheart deal, but would prefer sustainability for the long term. We have seen too much of that in Scotland in the past. We seek quality, sustainable jobs for our people, now and in the future.
Clearly, we cannot trust the Tories to be strategic or impartial, because they have recent form in their towns fund, which funnelled money to Tory marginal seats. As the Chair of the Public Accounts Committee said,
“Ministers relied on flimsy, cherry-picked evidence to choose the lucky towns”.
To add insult to injury, we have still not got to the bottom of the Barnett consequentials for the towns fund.
Paragraph (b) refers to:
“providing infrastructure at places in the United Kingdom (including infrastructure in connection with any of the other purposes mentioned in this section)”.
Let us take a quick look at the UK Government’s woeful record on infrastructure. HS2 is beset by delays, cost increases and a lack of strategic vision. Originally supposed to make it to Scotland, it has not even got to Birmingham yet. Crossrail is late and receiving a further half-billion pound bail-out. So-called smart motorways put the lives of motorists at risk. In energy, Hinkley has become a byword for UK Government incompetence and profligacy, to the detriment of renewables.
We might also mention the Scottish Government having to use planning permission to stop the UK Government bringing in fracking in our country by issuing licences that we did not want to have. We are having to use planning permission to block fracking—this is something that is fundamental to the health and wellbeing of our country. Some £186 million has been spent on two carbon capture and storage competitions, and we still have exactly zero carbon capture and storage facilities, despite David Cameron promising £1 billion to the north-east at the “indyref”. Renewable projects that the Scottish Government would love to see promoted further are hampered by lack of interest and by constantly switching energy Ministers. Those are just the physical projects; UK Government IT projects are notorious for their capacity to waste money and fail to deliver.
Paragraph (c) refers to:
“supporting cultural activities, projects and events that the Minister considers directly or indirectly benefit the United Kingdom or particular areas of the United Kingdom”.
I wonder if this will bring us more joys such as the millennium dome or the festival of Brexit, which is still limping on despite coronavirus: £120 million to tell us all how lucky we are to be stuck on this island and thumbing our nose to the world. Haud me back! Is it perhaps a sign of panic, as Ewan McGregor has joined the chorus of creatives backing independence?
Paragraph (d) refers to:
“supporting activities, projects and events relating to sport that the Minister considers directly or indirectly benefit the United Kingdom or particular areas of the United Kingdom”.
That is the vaguest of the vague, again with Ministers deciding they know what best would benefit particular areas. I say this from a point where Glasgow has a very strong track record in bidding for, paying for and hosting international sporting events—the best Commonwealth games ever in 2014, European championships in 2018 and the UEFA Euro 2020—now Euro 2021—which is sadly not taking place this year owing to covid.
Paragraph (e) refers to:
“supporting international educational and training activities and exchanges”.
This one, I must say, is a real kick in the teeth. The UK Government cannot yet say what will happen with our membership of Erasmus+, a project that we do not even need to be members of the EU to participate in. Children from Pollokshields Primary, students at colleges and universities, and people in community youth groups have all felt the benefit of Erasmus+ over the years, and they do not need this all-powerful Minister of State to reinvent the wheel and put a Union flag on these activities. They need to have continuing membership of Erasmus+ confirmed to allow for seamless participation in this horizon-widening programme.
Paragraph (f) refers to:
“supporting educational and training activities and exchanges within the United Kingdom.”
This is a clear instance in which the UK Government are stepping into devolved areas, because Scottish education is protected not only by the Scotland Act 1998, but by the Act of Union itself, along with the judiciary and the Church. The UK Government must be clear what exactly they intend by this particular provision.
I was quite taken aback by the statement on Monday by the Chancellor of the Duchy of Lancaster that there is no risk to water or the NHS. I believe he may be referring to clause 17 on mutual recognition and clauses 18 and 19 on non-discrimination, and to the related schedules, but the difficulty is that these clauses are not set in stone and can be changed further down the line.
Subsection (2) tells a further story, because the definition of “infrastructure”—what that autocratic Minister of the Crown can directly fund on a whim—includes
“water, electricity, gas, telecommunications, sewerage or other services (for example, the provision of heat)…railway facilities (including rolling stock), roads or other transport facilities…health, educational, cultural or sports facilities…court or prison facilities, and…housing”.
In areas that are devolved, no UK Government Minister of the Crown has any business acquiring, designing, constructing, converting, improving, operating or repairing our infrastructure. Under this measure, the UK Government could propose to build in Scotland a court or a prison where they have no oversight of the justice system, a school where they have no remit over education, a road where they have no remit over transport, and, yes, a water treatment works where we already have the most successful, publicly owned, water company in these islands.
Then we get to clause 47, titled “Financial assistance: supplementary”. Subsection (1) states:
“Financial assistance under section 46…may take the form of grants, loans, guarantees or indemnities…may be provided subject to conditions (which may include conditions about repayment with or without interest)…may be provided under a contract.”
This nefarious Minister of the Crown not only has the power under the Bill to build some infrastructure in our country that the democratically elected Parliament of Scotland has not voted for, but it also gives them the power to stick Scotland with the bill and charge us interest. Gee, thanks guys. What can I say? So generous. It is the Skye bridge all over again. That was the first PFI project in the UK. It opened in 1995 and was notorious for its tolls. The then Scottish Executive had to buy the bridge back a decade later in order to abolish the tolls, which raised more money than the bridge cost in the first place. Do we really want to return to that level of generous investment in Scotland?
Six years ago today, I was pounding the streets of Glasgow with hundreds of other activists, knocking on doors, delivering leaflets and having animated discussions about what a new country could look like. We are a couple of days out from the anniversary of the 2014 independence referendum, which was a watershed moment for so many of us in Scotland. I cannot begin to describe the feelings of hope and excitement that there were in the city of Glasgow, where my own constituency voted for Scotland to be an independent country.
I could not have imagined that six years later, I would be standing here, a Member of this Parliament. I could not have imagined that I would have had to fight three elections in five years, and I could not have imagined that Scotland would have been dragged out of the EU against our will. In my worst dreams, I could not have imagined that I would be standing here today, defending the very fabric of devolution from a full-scale attack.
“This creates a means for the UK Government to provide funding across a range of largely devolved areas that would sit alongside any funding provided by the devolved administrations.”
It is perfectly clear that this as an attack and an undermining of devolution. That is not just my opinion, but an opinion shared by legal experts around the world. The hon. Member is ignoring the truth of the situation. He must know that that is the case. When even senior figures in his party are saying that this is an attack on devolution and are resigning, he should see that that is the case. He knows that it is true.
The people of Scotland are not daft. They see what is going on. The Bill short-changes us and rides roughshod over hard-fought devolution powers. We were promised near-federalism. We were promised the strongest devolved legislature in the world. What we have got is Dominic Cummings and co. stomping all over the devolution settlement in their great big tackety boots.
It is established that we on the SNP Benches would not trust the UK Government with a bag of old pennies, but it has now become increasingly clear that a majority of Scots agree. The UK Government’s ultimate failed infrastructure project is the Union itself. It cannot exist without consent. Poll after poll now shows a majority of support for independent Scotland, and who can be surprised, when it is fast looking like the only option to preserve the gains of devolution? This tawdry Bill disrespects the Scottish Parliament and the people who elect it, and it will serve only to ensure that when we have our chance to vote again, Scotland will be an independent country.
Clauses 46 and 47 take important powers to honour one of the pledges made by the Vote Leave campaign, and believed by many voters in that important referendum, that the United Kingdom Government should replace the moneys for projects and investments that would otherwise have been supplied through the European Union. Taking this power illustrates that there is serious intent, that the Government will honour that promise of the referendum campaign, and that the United Kingdom will not lose—indeed, it will gain—as a result of changes in the arrangements for funding large projects and suitable investments.
I always thought that there were three problems with relying on the European Union to fund some of these projects. The first and biggest was that we had to send far more money to Brussels than we got back. One of the great advantages of this power is that every penny that taxpayers pay in the United Kingdom for these purposes will come straight back. There will not be a huge levy on top.
I shall go back to the remarks I wish to make about why it is better that we pay for our own projects rather than doing so with the big discounts on our money through the European Union. The second reason for that is that some of the European schemes required the project to be a marginal one. Part of the terms of giving the money was that it was not a project we would finance for ourselves or not a core, essential project. That did not make a lot of sense. Once that is under United Kingdom control, we will obviously jointly wish to finance the best projects, and of course that will be in full consultation with the devolved Governments around the country.
The third reason that I think we will do better without European Union intrusion is the flagging of these projects. There has been deep resentment in the United Kingdom that whenever a small amount of money came from Europe into a project, it had to show the EU flag but we were not allowed to put a British flag on it to say that all the so-called EU money had actually come from United Kingdom taxpayers. Even worse, we were not even allowed to put a British flag on it to show that a larger proportion of the funding for the scheme had often come directly from the United Kingdom Government. It will be much better when we do not have to false-flag projects in the interest of misleading people about who is actually paying for something.
In this debate on the Bill generally, I know that the Opposition are still very exercised in thinking that these and other powers are illegal because they in some way violate the rules of international law set out in the EU withdrawal agreement. State aid is part of that argument, and these are the two central clauses on state aid. I would like to say that I disagree strongly with my right hon. Friend the Northern Ireland Secretary. I do not think there is any way in which this legislation violates international law. It clearly asserts and upholds United Kingdom law, most notably the sovereignty clause in the European Union (Withdrawal) Act 2018. That Act was a compromise agreement and a halfway house. It was attached to a political agreement to complete a proper negotiation in due course over our future relationship, so it was always rather problematic; because it was like that, it was ambiguous and contradictory. There are perfectly strong clauses in the EU withdrawal agreement and the EU (Withdrawal) Act stating that it is a duty that the single market and customs union of the whole United Kingdom, which expressly includes Northern Ireland, are upheld. That is exactly what this Bill is seeking to do.
The Government and many others hope that there will be a last-minute agreement, because it is quite easy to deal with all the outstanding legal issues in a comprehensive agreement. I am a bit sceptical that that is going to happen, because I see no evidence of good faith in negotiations by the European Union, and I think that, were there to be a breakdown, there would be a second legal argument that there had not been good faith. That is another reason why there is no sense in which we are seeking to break an international agreement, let alone the law.
I am very pleased that the Government are taking crystal clear powers to provide state aid and investment in projects. I hope the Government will also, ere long, issue a very strong statement of the United Kingdom’s state aid policy that should cover this and other matters. We owe it to the international community to have a strong, clear and independent state aid policy that is perfectly compliant with the World Trade Organisation rules on this matter, because we wish to be a global trader with more free trade agreements outside the European Union space. In that respect, we can probably do better than the European Union, because there have been a number of important cases in which the European Union has been found to be in violation of state aid rules by the World Trade Organisation, and perhaps an independent Britain can do a bit better.
This is a vital piece of legislation to implement the independence of our country in a true Brexit. It is an entirely legal piece of legislation that reflects important statements in the withdrawal agreement and, above all, reflects a sovereignty clause in the EU (Withdrawal) Act that some of us supported and put in with the express purpose in mind that if there was no good faith from the EU we would need to make unilateral arrangements for our future trading. It is crucial for a country that wishes to have much more positive trade relations than the EU has had with a wide range of countries outside the European Union space.
I look forward to the state aid regime and investment regime being used in the interests of the whole country, with the United Kingdom being able to spend more of its own money on its own priorities, with good guidance and advice from Scotland, Wales and Northern Ireland as we go along, but not forgetting the importance of England and the need for us to have good English projects as well. I hope that it will be twinned with an exemplar state aid policy for world trade purposes that may indeed be different from that of the European Union.
I should not have to remind the House that UK Ministers still enjoy significant powers over key policy areas, despite devolution, and can initiate large infrastructure projects in Wales that could boost its economy. If Conservative Members doubt that fact, let me point them to their party’s manifestos since 2010, which have all reflected the reality that in key areas of infrastructure and economic investment, the UK Government already have significant powers to support Welsh businesses and communities.
This Government are keen on investing in rail infrastructure, as we see from HS2 and Crossrail, and they also have a responsibility in respect of the railways in Wales. Wales was promised boldly in 2010 that a Conservative Government would electrify the great western main line to Swansea, and in 2015 that the valleys lines and the north Wales main line would also be electrified. Despite those lofty promises, the north Wales main line and the valleys line are still not electrified, and after 10 years the promise to electrify the line all the way to Swansea has materialised as a partial electrification to Cardiff Central only. In that key area of infrastructure, there are no limitations on the power of UK Ministers to invest in Wales, and although Wales has about 11% of the railway track, it has received only 1.5% of the money that UK Ministers have spent on rail improvements in recent years. Why, therefore, should UK Ministers be afforded additional powers to act in devolved competences, given that they have failed to make the most of the powers they already have?
Members might also recall the exciting promise to build the tidal lagoon in Swansea and the commitment to the Wylfa Newydd power plant in Ynys Môn. Regardless of the merits or otherwise of those projects, UK Ministers could have initiated them, unhindered by the supposed shackles of a devolution settlement. However, those projects have amounted to yet more unfulfilled promises.
We might also think of the powers that UK Ministers have over Welsh agricultural exports, and question whether they are being exercised effectively. The Department for Environment, Food and Rural Affairs recently failed to submit an application to the World Organisation for Animal Health for Welsh beef—and English beef, I should add—to be listed as a negligible bovine spongiform encephalopathy risk, so that status will now not be possible for our exports before May 2022 at the earliest, along with all the benefits it would bring.
In opposing clause 46, I simply say to UK Ministers who bemoan devolution and Wales’s Parliament: stop scrambling for pitiful excuses for your own failures, take your responsibilities to Wales seriously, and start using the powers that you already have.
The Bill is an affront to international law, as has been said many times this week. It rips up an agreement that was made between this Government and the European Commission. It threatens a hard border in Ireland, and in clauses 46 and 47, it rides a coach and horses through the devolutionary settlements for Scotland, Wales and Northern Ireland. If that were done on its own, there would be an outcry. Our amendment 19 is there to give consent—the much-used word—to those legislative Assemblies and Parliaments. No Whitehall Minister should be allowed to override, deny or undermine the interests and opinions of elected representatives in Scotland, Wales or Northern Ireland. If Members agree with that, they should support amendment 19.
Where I come from, we value democracy, because people had to actually march for democracy there. In 1968, my own grandfather and hundreds of other people were beaten off the streets by a corrupt and unjust police force sent there by a corrupt, sectarian and unjust Government. The civil rights movement got rid of that Government, but it took 30 years of democratic struggle against the men of violence, against the state and against intransigence, sectarianism and division to bring about an end to that and make sure that our own people could be represented by local politicians, making local decisions on their behalf. That was not easy; it was very difficult. They created a delicate agreement called the Good Friday agreement.
The Good Friday agreement has been bandied about this House and on the airwaves over the past couple of weeks. I can tell Members that it is fragile and delicate. Even the Members from Northern Ireland who disagree with me will be able to agree with me on this point. We are in a very delicate and fragile place. Please do not mess with it. Please do not ride a coach and horses through it. There is no way, in my view, that we can hand power to Whitehall Ministers to make decisions over the heads of locally elected people in Northern Ireland and not upset that delicate, painstakingly negotiated balance. Nationalists, Unionists and others are working together in the common interest. Is it difficult? It is very difficult. Is it delicate? Yes, it absolutely is. Is it fragile? Well, we have had three years of no Government, so that should tell us all about the fragility of those institutions. We are not prepared to wreck or hinder that progress.
I cannot understand how anybody who is supposed to be a devolutionist and whose party is in government—even though the right hon. Gentleman is sometimes at odds with the leadership of his party—would want any Minister based in Whitehall to make decisions over the heads of the Democratic Unionist party, Sinn Féin, the Social Democratic and Labour party, the Alliance party or the Ulster Unionist party. This Bill would allow a Whitehall Minister to override the wishes and very strong views of people in Northern Ireland on issues such as fracking and water charges. Who wants to see that happen in our devolved areas?
More than any policy risk, the Bill creates even more instability in our system, and we cannot afford that. Just look at what has happened over the past number of years. Alongside the attack on the protocol and the risk of a hard border in Ireland, the Bill rides a coach and horses through the Good Friday agreement in so many ways. If this Government, as they profess, support the Good Friday agreement and devolution and want local people to work together, spilling their sweat and not their blood, to bring about economic progress and change how society works, they will take away the risk of the Bill, because causes 46 and 47 would override, undercut and undermine all that progress.
The idea vested in the amendments in this group—notably, amendment 33—that Ministers should act only with the permission of people in those constituent parts is preposterous, as anyone on either side of the House who has served as a Minister knows. Of course, collaboration requires a relationship between those in the devolved Assemblies and Ministers here, but that relationship is one in which the devolved Minister knows that the buck starts and stops with the national Government.
“A Minister of the Crown may…provide financial assistance”
in respect of matters of devolved interest. It is not about trade; it is about the UK Government being able to take decisions on behalf of the devolved nations on matters that are otherwise devolved. Why is it so objectionable to seek the consent of the devolved Administrations on matters that should be devolved anyway?
Although it is true that the vast majority of the people of Scotland, Wales, England and Northern Ireland may not be gripped every waking moment by the minutiae of British politics, millions of patriotic Britons across all parts of our kingdom, in England, Wales, Scotland and Northern Ireland—small business owners, farmers, fishermen, employers, workers; everyone from trade unionists to tree surgeons—expect this Government to get Brexit done and to strike trade deals in the national interest and for the common good. It is as straightforward as that. Anything that provides an impediment to that desire is not only unacceptable, but directly contradicts the will of the people. This sovereign Parliament’s mission—its duty—is to embody the will of the people, to respect it and to deliver on it. I am afraid the amendments before us would impede that process, whether that is their intent or not. I will be generous and make it clear that I am not alleging that that is their intent, but it would certainly be their effect.
Perhaps saddest of all are the amendments in the group tabled in the name of the official Opposition. I see sitting behind the Dispatch Box the hon. Member for Sheffield Central (Paul Blomfield), an old friend, looking as sorrowful as I am when I have to make that charge. The official Opposition are a Unionist party, yet it is clear from the amendments in their name that they have gone along with the idea that Ministers of the Crown should be required—yes, required—to seek and gain the consent of devolved Ministers before proceeding with what they believe is in the national interest. I have to say I am disappointed about that, and it is another reason why we should vote against the amendments in the entire group and support the Bill unamended.
The shared interest of the people of Britain—the common good, as I described it—has been endangered; indeed, it has been diluted, year after year, through our relationship with the European Union, as my right hon. Friend the Member for Wokingham (John Redwood) explained earlier in his excellent speech. Taking back control is in the people’s interest, because it will allow us to develop policies that are pertinent to that interest in every part of the United Kingdom.
The debate we are having about the Bill is to some degree rather recherché. It reminds me of the debates we have had in recent times between those who wanted to honour the people’s will, expressed in the referendum, and those who were unreconstructed remainers. Many who campaigned to stay in the European Union have accepted the result and gone along with it, because they believe it was a once-and-for-all decision that should be honoured, but there are those—we have seen them persistently in recent times—who did not accept it. Perhaps, tied to their kind of bourgeois, liberal, doubt-filled, guilt-ridden perspective on world affairs, they were unwilling to recognise that that is a world apart from the view of working-class Britons, as the referendum and the general election showed. That is, in large part, an explanation for why my party seized power in constituencies across the country, particularly in the midlands and the north, that it had never represented before. Those people in those places have woken up to the fact that that elite had no understanding and no care for their sentiments or their interests and could not really grasp why they believed that it was right that our trade policies, our policies on migration and other matters should be determined by this sovereign Parliament speaking for those very people.
The essence of the debate this evening—I mean this afternoon, but I am anticipating a long debate, as you can tell—is really not about whether the devolution settlement is as the SNP would want it to be or as it actually is, which is a productive relationship, I think, between those in the Scottish Parliament and Scottish Ministers and the United Kingdom Government. Certainly, that was how it was when I was a Minister—I had a very positive relationship with my friends in Scotland and Wales and throughout our kingdom. It is not really about that. It is about whether we believe that the Government’s hands should be tied in the negotiations as they go forward and try to strike the best possible deal with the European Union. No responsible Member of this Parliament should want to dilute the strength of our position in those negotiations in what is, inevitably, a challenging process with a very wily European Union. Whatever one thinks about the faults and frailties of the EU, and I could speak at great length about them, no one would deny that it is experienced, determined and wily in its attempts to defend the EU’s interests. We must be as united and strong as we can be in backing those who are fighting for Britain, as our Prime Minister is doing, has done and will continue to do.
In drawing my remarks to a conclusion, Dame Eleanor —I know that you will be pleased that I am about to, although disappointed simultaneously—let me say this. It is absolutely true that, in gauging both trade policy and infrastructural investment, we need to be mindful of the particularities of the needs and wants of people across the kingdom, and of course different circumstances prevail in different parts of the UK. Good Governments and good Ministers have always done so, but, in the end, it is for the national Government—it is for the Queen’s Ministers—to make decisions on these matters, and however much that may trouble those who have tabled the bulk of these amendments, I have to tell them that it is how it is and how it is going to be. We will back Britain. We will back Boris, and in doing so we will get the best possible deal.
I cannot compete with my right hon. Friend the Member for Doncaster North (Edward Miliband) in making the Prime Minister look like a petulant child, so I will not try, but I will try to make Members opposite think about the damage they are doing to our international standing, to their individual reputations and to the fabric of our Union, and to a Bill which could rend the Good Friday agreement asunder.
I have some interest in constitutional law. I know the power it has to create new opportunities, to spread power to the people, and to ensure that decisions are made closer to where people live. But this Bill is about putting the foot down on the accelerator, and driving the constitutional settlement off a cliff with the Union as its trailer. Clause 46 breaks the settled will of the devolved nations. Allow me to outline some of the problems with this Bill. First, there is the Executive power grab: the Bill has enabling clauses that enable a Minister to make unilateral regulations. Secondly, there is the breach of existing law: the enabling clauses allow a Minister to create regulations regardless of whether those regulations are in breach of domestic and international law. Let that sink in for a second before I carry on: we are giving Ministers the power to break the law.
Clause 46 allows pork barrelling, a US practice allowing for Government spending for local projects to help a politician in a certain constituency. It allows pork barrelling by ministerial diktat and over the heads of devolved bodies. The Bill not only creates a situation where the Government are in breach of the UK’s obligations under the withdrawal agreement, but provides the statutory basis for new regulations to be made by Ministers that are also in breach of UK and international law.
This does have recent precedent. The Coronavirus Act 2020 gave the Secretary of State for Health and Social Care similar powers, which we saw implemented this week when the new health regulations were published allegedly 28 minutes before they came into force. So 29 minutes later, a family of three meeting a family of four could have been in breach of the law, after a flick of the Secretary of State’s pen, with no warning.
So, soon we will have two laws, covering coronavirus and Brexit, enabling Ministers to create law by diktat, and in the case of Brexit, to break already agreed international law. We must therefore ask whether Parliament’s only purpose will be to provide a body of personnel to fill the Executive and oversee some functions as a lawmaking body. This means that when it comes to devolved bodies having to make spending and funding decisions, clause 46 will take it over their heads, and they will be denuded of their powers.
Far from bringing sovereignty to our shores, this Government are stripping our sovereign Parliament of its powers piece by piece, and doing the same to the devolved bodies. The Government’s real purpose is a power grab: they are using a difficult situation as a subterfuge to hoodwink the public. The checks and balances are being eroded—[Interruption.] Yes, they are; Government Members are shaking their heads. Those who are meant to safeguard are brought into the pretence and belittle their own office: the Attorney General, the Solicitor General, and the Lord Chancellor. The Advocate General for Scotland has at least shown proper respect for the law by resigning—or at least attempting to resign by tendering his resignation—and the Northern Ireland Secretary himself admitted that this Bill breaks the law
“in a very specific and limited way.”—[Official Report, 8 September 2020; Vol. 679, c. 509.]
However, a breach of the law is a breach of the law, so any breaking of the law in a very specific and limited way is no defence in court: the law does not discriminate on specificity.
Even the need for this Bill has been ridiculed by more constitutional experts than I could possibly name. The Government argue that the powers are needed in case they need to rapidly implement safeguards under article 16 of the Northern Ireland protocol, but Professor Mark Elliott, chair of the Faculty of Law at Cambridge University, argues that clauses 42 and 43—I know that we are not debating those today; I will come to the point about them later—
“bear little relation to the matters with which Article 16 is concerned”.
The Government further argue that the withdrawal agreement is a special form of treaty because it presupposes a future relationship agreement—the agreement that they are currently negotiating—so it is okay to breach the withdrawal agreement if no free trade agreement materialises. Not only is that news to the European Union, but Professor Elliott says categorically that no special form of treaty exists.
Then there is the Lord Chancellor’s argument that the Bill would amount to an acceptable, rather than unacceptable, breach of the law. Again, Professor Elliott argues that no such distinction in law exists. He concludes that there is no justification for the power grab in this Bill. I could quote 100 different constitutional experts on different clauses of the Bill, making the Government’s arguments look like so much chopped salami, but I need to make progress and allow colleagues to speak—much good that will do us after this power grab.
The upshot is that passing the Bill intact would not provide a safety valve or insurance if the Government’s oven-ready deal threatened to burn down the house; if the house burned down, the tenants—our home nations—would rebuild it several feet apart, ending our historic Union. The Government never were honest about the fact that leaving the European Union would create an existential threat to our United Kingdom. They have never addressed the inherent tensions that they themselves created and that the Bill deepens rather than resolves.
Upending our international reputation as a nation that upholds the law, and erecting the barriers to trade that no deal would create, will have severe consequences and threatens to create an unstoppable force that will cause our nation’s fabric to be permanently rent asunder. I cannot support that, and neither should Government Members. That is why I support the Labour Front-Bench amendments in the name of my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer).
The Bill is an essential building block of a successful and orderly Brexit and of a successful economy. People who say that they believe in those things need to back the Bill very strongly. People who say that they believe in getting on with Brexit should support the Bill. People who say that they support the Union and recognise the importance of a seamless internal market for the whole United Kingdom need to support the Bill.
The Labour party says that it is in favour of all those things, yet on Second Reading on Monday night, again yesterday and again today, they have found reasons not to give the Bill their support. That is very telling. Here we are in 2020 and it is just like 2017, 2018 and 2019, with the Labour party finding every excuse—using every trick in the book—to try to water down and get in the way of the successful delivery of Brexit and the successful safeguarding of the whole UK internal market.
At the heart of the Bill are borders and barriers. The Bill respects the borders that exist within our United Kingdom—it reflects the fact that we are a family of different nations within our United Kingdom—but it takes steps to avoid those borders becoming barriers to trade and prosperity for all parts of the United Kingdom. As a Unionist, I come at these issues from a position fundamentally different from that of, say, a nationalist such as the hon. Member for Glasgow Central (Alison Thewliss), who eloquently opened this debate. We come at these issues from fundamentally different perspectives. The problem I have this afternoon is with the Labour position, because Labour says that it is a Unionist party and in favour of getting on with Brexit, and yet the position this afternoon suggests something different.
I am a Member of Parliament in Wales, and I worry about Welsh politics when I see the Welsh Labour party continuing its slide towards becoming a branch of the nationalist movement. We are talking this afternoon, with the clauses and amendments that are on the table, about limits to UK authority and legitimacy in all parts of the United Kingdom. It is about putting up barriers to stop this Parliament and the elected UK Government having authority and legitimacy in every part of the United Kingdom. However, I completely respect the position of Plaid Cymru and SNP friends, because they see the world through a fundamentally different prism.
However, the response from the Welsh Labour Government every step of the way—I had a running joke with the former First Minister Carwyn Jones about this in our Monday morning meetings in his office in Cardiff Bay—would be, “This is a rollback of the devolution settlement.” It does not matter what new powers we give to the Welsh Government, the response will always be, “This is a rollback. This is a power grab.”
The Bill strikes the right pragmatic balance in how it goes about strengthening the devolution settlement in the context of bringing back powers from the EU to the Governments of our internal market and how we divide up those powers and share them among the legitimate elected bodies that now constitute our constitution across the United Kingdom.
I want to speak in some more detail about the expenditure powers, which I support, that we are really debating under this part of the Bill. I do not support UK Ministers wanting to become the default authority for spending in devolved areas, but that is not what this is all about. This is actually about recognising that the UK Government have a duty of care for their citizens in every part of the United Kingdom, and that should not be a controversial thing. It certainly should not be controversial to Unionists that the UK Government should be able to spend money in all parts of the United Kingdom. When did the vision of devolution ever become about stopping this place having any kind of writ of authority in Wales, Scotland and Northern Ireland?
If hon. Members want specific examples, earlier this year we had devastating floods affecting Wales. Loads of rugby clubs in south Wales had infrastructure damaged. Could we support the Welsh Rugby Union when we were asked for funding to support those rugby clubs in Wales|? No, because the devolution settlement said we had no right to be able to do that. I could give other examples. I could talk about the towns fund, which has been mentioned previously in this debate. Labour Members earlier this year stood up and said that they wanted to see their towns and their communities benefit from the towns fund. We could not do it: the devolution settlement said no.
Surely it is not right that the elected UK Government are forbidden, blocked and barred from being able to act in these areas—yes, acting in partnership, in concert, with the devolved Administrations. I strongly welcome the measures in the Bill and I am opposed to a devo-lock—a devolution barrier or block—against the UK Government’s acting.
“it would be preferable for legislative consent to be given by each of the devolved legislatures.”
Does the right hon. Gentleman agree with that sentiment—that a legislative consent motion should be obtained before the Bill is imposed on the devolved Administrations?
I shall end by saying something about the shared prosperity fund. I am the Chair of the Welsh Affairs Committee, and we have been taking evidence on this. Even though I strongly support the Bill, I want to register a concern with those on the Front Bench about the progress of work in Whitehall on the shared prosperity fund. It is patently clear from the evidence that we have received that the pace of work is nowhere near fast enough, given the timescales involved for replacing the EU funds. There is a real need now for Ministers to step up the activity levels.
I also think, again speaking to the Front Benchers, that we need a bit more clarity and transparency on what the future of those funds will be. Although I support the powers in the Bill this afternoon, in terms of building trust and good will with the devolved Administrations there is certainly a need for a much more detailed conversation about the future of the funds.
I rise to speak to amendment 20 in my name. Let me say straight away that I completely support the case that has been made so eloquently by Opposition Members about the importance of protecting devolution. I have enormous sympathy for those who, frankly, would start again and get rid of clause 46 entirely. I would support that, but for as long as it is part of the Bill, my case is that it needs strong amendment.
Amendment 20 would insert these words:
“Any financial assistance provided under this section must be consistent with the achievement of any climate and environmental goals and targets applicable”.
Financial assistance spending can have major environmental impacts, which can be negative. We have heard from the hon. Member for Glasgow Central (Alison Thewliss), for example, some of the most egregious examples of how money has been used in a negative, incompetent and environmentally damaging way. Examples include road building where the evidence suggests that it leads to more driving and more emissions. Or, of course, money can be spent in a positive way, kick-starting new, good-quality, innovative green industries and jobs, and supporting progressive climate and environmental policy.
Ministers have been warned of this reality time and again. If they do not listen to that, perhaps they will heed the warnings in this week’s alarm-ringing, klaxon-sounding, deafening, heartbreaking, anger-stirring film from David Attenborough, whose documentary, “Extinction: The Facts”, laid the tragedy bare. With an eighth of the planet’s species at risk of dying out, he sets out the stark devastation that humans have wreaked, and are wreaking, on the natural world.
The evidence keeps rolling in. New analysis just this week from the Royal Society for the Protection of Birds has revealed a lost decade for nature, with the UK failing to reach 17 of its 20 biodiversity targets. Indeed, on six of them we are going backwards. Last year, the RSPB’s “State of Nature” report for the UK found that 41% of UK species are declining and one in 10 is threatened with extinction.
These things do not happen by accident. They happen as a direct result of public policy and where money is spent, so it is critical that if and when Ministers choose to exercise these powers to give direct financial assistance, they do so in a manner that is both consistent and compatible with any environmental and climate goals and targets in the relevant parts of the UK. That should cover existing goals and targets, and any future goals and targets that are applicable when the powers are exercised. Those goals and targets would include things such as countries’ respective targets on climate reduction and net zero, new targets to be set under the Environment Bill, recycling targets, and so on.
In short, the purpose of amendment 20 is to try to ensure that we tackle the nature and climate emergencies we face. Public money should not be used to support projects, companies or industries that threaten to undermine progress towards meeting stated and binding environmental goals and targets—something on which, unfortunately, the Government have form. We have seen them, in the aftermath of trying to cope with the worst of covid, giving money to aviation companies without any of the conditions that apply in, for example, France, where money is required to be used to research better, less damaging fuels, and not for flights that are in direct competition with rail routes.
Here, the UK Government have made absolutely no attempt whatsoever to be mindful of the environmental impacts of the money they are spending. That is in spite of all the rhetoric we hear about the importance of a green recovery. If Ministers are serious about a green recovery, they should regard my amendment as a helpful reminder rather than as any kind of threat. I hope the Minister will be able to stand up at the end of this debate and say that she entirely supports it.
As well as putting on record the importance of amendment 20, I would like briefly to put on record my support for the other Opposition amendments in this group that seek to protect devolved powers and ensure fair funding to all nations of the UK. They include provisions to require the Government to secure the agreement of devolved Ministers before enacting their priorities over those of the devolved Administrations. Doing otherwise would mean exactly the kind of power grab that my colleagues have been talking about. That is unacceptable. It sometimes seems that the other side do not quite understand what devolution means. Devolution is a permanent part of our constitution, and has been for 20 years; and it is wrong and reckless of this cavalier Prime Minister to seek to undermine it.
The Government have a huge opportunity to reset the economy to create a just transition, with good green jobs to safeguard livelihoods and our precious and irreplaceable natural environment. The aim of amendment 20 is to make that opportunity a reality. I hope that a separate decision on this vital amendment will be possible, as it would do something different from the other amendments in the group—we are in a climate emergency, as this very House has declared—but if that is not possible, I hope we can return to it on Report, as no doubt many colleagues in the other place support the aims of the amendment and share my concerns. The amendment matters to millions of people around the country who care deeply about nature and the climate and are deeply concerned about the use of public money undermining those aims.
Other amendments in this group are indeed vital. My amendment makes a separate but complementary point. It is about outcomes, not just process. The Bill takes breathtakingly wide powers following our departure from the EU. This is about how those powers are implemented. No other amendment in the group deals with that.
I am delighted to stand to support Government clauses 46 and 47, and to speak against the amendments in the name of the official Opposition and the Scottish National party and the other amendments. I have only been in the House for three years—it sometimes feels like 30, given what we have been through since 2017—but these amendments and the arguments, especially those from the SNP, against the clauses, are among the most remarkable things I have seen, despite what we have been through in the last three years. The governing party of one of the devolved nations in this country is tabling amendments and using arguments that would prevent more money from being spent in that nation. It is frankly astounding.
Not only are these arguments incredible; they are also based on a complete falsehood: that the powers in the Bill, which will allow the UK Government to spend directly on specific projects in Scotland—I will confine my remarks to Scotland for obvious reasons—for the first time in 20 years, will somehow undermine devolution. This is not true.
What is most remarkable about these arguments and the amendments that have been tabled by the SNP today is that they are drafted by parties that want to take Scotland and Wales back into the European Union. The SNP made much yesterday, and has again today, of the Competition and Markets Authority and the Office for the Internal Market, while the hon. Member for Glasgow Central (Alison Thewliss) spoke about autocratic Ministers of the Crown spending in Scotland. The hon. Member for Midlothian (Owen Thompson) yesterday decried the need for the Office for the Internal Market, claiming it was unnecessary, undemocratic and appointed, and complaining that it would
“decide whether a Bill met the test of the internal market, putting permanent constraints on the Scottish and Welsh Parliaments and the Northern Irish Assembly.”—[Official Report, 15 September 2020; Vol. 680, c. 248.]
That is quite remarkable from a party determined to take Scotland back into the European Union, but then maybe I missed the complaints from SNP Members when, in August 2015, the unelected and unaccountable European Commission suspended the payment of more than £45 million to the Scottish Government, under the European social fund, owing to accounting “irregularities” and because it had not been given specific assurances from the Scottish Government as to how the money was being spent.
I must also, then, have missed hon. Members’ complaints to the—again—unelected and unaccountable European Commission when it threatened to fine the Scottish Government £125 million for botching up the farm payments system in 2015-16. I hate to break it to the SNP, but the restrictions placed on member states in order to preserve the internal market of the European Union are much—inordinately—more prohibitive than anything we are proposing here today.
After Brexit—indeed, because of Brexit—the Scottish Government will be free to spend, and indeed mis-spend, and free to exercise their expanded and increasing powers as they see fit. Nothing in the Bill threatens that in any way whatsoever. No powers to curb spending or cut revenue, no powers to fine for messing up payment systems, more money, more power, protecting jobs— what on earth is it in the Bill that the SNP could be objecting to so much? Why on earth is the SNP so happy to accept EU cash, with all the rules and regulations around spending and how money is spent, but will not allow the British Government to spend directly on specific projects that will benefit the lives of individual Scots?
I return to my point about Scotland’s cash-strapped local authorities. In north-east Scotland—I see the hon. Member for Gordon (Richard Thomson) in his place—Aberdeen City Council and Aberdeenshire Council are two of the lowest funded local authorities in the country, despite contributing more in revenue to the SNP Scottish Government than almost any other local authority. The idea that the Scottish National party would vote to deny them more funds to spend on specific projects truly is a kick in the gut.
I urge the hon. Gentleman to try explaining that to constituents next door in West Aberdeenshire and Kincardine, the people of Durris and Drumoak—a community divided owing to Park bridge being closed, possibly never to reopen. [Interruption.] I hear the hon. Member for North Ayrshire and Arran (Patricia Gibson) groaning. The mask is slipping from the Scottish National party. The hon. Member for Kilmarnock and Loudoun (Alan Brown) underlined that when he earlier described these bridge closures as “wee pet projects”. These are communities divided because the Scottish Government are not funding Aberdeenshire Council to the requisite level to fix those bridges and reconnect those communities. The fact is that, unless it is in Glasgow or the central belt, the Scottish Government just do not care.
The fact is that the SNP has been found out. Its Members do not like this Bill because they know that it will demonstrate the relevance, the strength and the spending power of the British Government to the people of Scotland, and that endangers their grand plan: the separation of our country. For that, really, is all the SNP cares about—not people, not jobs, not the health service, not Scottish Water, as we heard earlier, and not powers over minimum unit pricing of alcohol. Those are all a front—a distraction. SNP Members do not like this Bill, despite the fact that it will benefit Scotland, because it promotes and unites our United Kingdom. That is the policy of the SNP, and it is clearer today owing to these amendments than at any time before. The SNP would rather Scotland was poorer if it meant that the United Kingdom Government had less power. That is the truth of it; it is clear from these amendments.
I am delighted that the British Government are enshrining the internal market in statute. I am delighted that we are voting to protect jobs in Scotland and around the rest of the United Kingdom, and I am delighted that, once again, this place will be able to directly spend money that will benefit the lives of my constituents. I am delighted that we are binding our country together, with no threat to the NHS, no threat to the existing powers of the Scottish Parliament and no threat to devolution. I will take great joy in voting down these amendments tonight. I will be voting to strengthen the Union, enrich Scotland and protect jobs. The SNP will be doing the opposite.
Clauses 46 and 47—part 6 of the Bill—are fundamental to the future of the United Kingdom, particularly as we leave the European Union and after one of the most challenging times in terms of public health and the economic difficulties ahead of us. This is a time when the nation needs to come together and when the might of the UK Government to support every part of the United Kingdom will be extremely important. So these clauses are excellent news for all nations of the UK. They empower a UK Minister to support and contribute to the economic, social and cultural needs of every nation, whatever part of the country someone comes from. More important, at a time when our nation is at a greater risk of fragmentation, these provisions make the UK Government relevant to constituents in all nations. A UK Minister can at last respond to their calls if a devolved Administration choose to ignore their needs.
The devolved nations host some of the most deprived communities in the UK. West Wales and the Valleys has qualified for the highest levels of EU aid for 20 years, and gross value added there was about 70% of the UK average. I have long argued that a persistent wide wealth gap will create tensions in any nation, and since devolution the current legislation has prevented a UK Minister from acting in support of constituents and communities in Wales, Scotland and Northern Ireland in devolved policy areas, even in those areas where GVA is at the lowest levels.
The current arrangements are confusing and messy, and could easily end up in the courts. Out of respect for devolution, Whitehall has been reluctant to be as assertive in pursuing some policies as the political and economic situations require. Constituents do not understand these arrangements, and businesses are often frustrated by the complexity and the perceived lack of interest in the issues and challenges they face. I said on Second Reading that for someone who is unemployed and living in one of the poorest communities, in a rundown town or village, perhaps with poor qualification levels or few training opportunities, UK Government Ministers’ answer to any call for help is, as it stands, simply to point them to the Welsh Assembly or to a Welsh Government Minister. Someone living in one of those communities in those circumstances does not care where the help comes from. They want the Government to be able to offer hope and opportunity, to play a part in bringing about change, and to be relevant to the challenges that those individuals and communities face by helping to fix them.
The hon. Gentleman has also highlighted flooding as a challenge. Flooding is a devolved responsibility. Therefore, when he calls on Environment Ministers to support funding projects in his constituency, he knows full well that the powers allowed by the current legislative framework to support such projects directly do not exist. Therefore, those calls, all too often, will fall on Ministers who do not have the power to act in those circumstances.
It is fair to say that some politicians have capitalised on the lack of powers held by the UK Government with which to step in and to act. It is often said to someone or a community in such a situation, or to a business in need of support, that the UK Government are refusing to act—in the full knowledge that the UK Government do not have the powers to step in and to act in order to alleviate that situation. I have long called for these powers, having been frustrated by the devolution settlement from being able to step in. I am delighted that the Government are taking this positive step to support all UK nations.
I have long argued that the future of any nation would come under pressure if a wide wealth gap continued to persist between its regions and nations. The Prime Minister’s levelling-up agenda is much more difficult to achieve without the powers that are included in these clauses. Some challenges and policy initiatives are beyond the scale and capacity of any devolved Administration. Let me highlight a specific example that follows on from a point made by the hon. Member for Rhondda. In March 2016, Tata steelworks across the country were at risk of closure or sell-off. There were reports that Tata’s Port Talbot plant was losing £1 million a day. Clearly, this was a crisis that needed support and action. But the then First Minister was the first to point out that the problem was far too big for the Welsh Government and the UK Government had to step in and help. According to the current legislation, in its purest form, this was a devolved matter and the Welsh Government had already received the business support funding through the Barnett formula. Therefore, it could have been legitimate to argue, “I’m sorry but this is a devolved function and the Welsh Government need to be able to respond.”
Clearly, the reality was very different. This was an industry of strategic importance and significance to the United Kingdom. The plant was also intertwined with steel operations right across England and Scotland, so the actions of one Administration had an impact on the actions of the rest of the country. Of course the UK Government had a responsibility to play a part, but their capacity to act in support in a wide-ranging way was limited. The Industrial Development Act 1982 offered an option, but it is highly restrictive and did not give the Minister the freedom with which to develop a cohesive policy in the way that the Minister would want to do.
Similarly, if the Port Talbot plant had closed, there would have been a need to reclaim the site, regenerate the community and develop a package on a much wider scale. There are other examples that I can highlight.
The devolved Administrations receive their funding through the Barnett formula, but that delivers a capacity limitation to the interventions that they can make. Although the Welsh Government receive £120 for every £100 spent in England, which is a very fair settlement as a result of the relative poverty that many of us highlight regularly, that broadly equates to about 5% or 6% of spending in devolved areas according to the population. As a consequence of that relatively small sum of money, large infrastructure projects are much more difficult to deliver. They demand such capital sums that they are difficult to justify in any one community. The nature of devolution has caused resources to be spread far more thinly, and they do not have the impact that they could have in any one area.
The last major infrastructure project in Wales was in 1987, when the Cardiff Bay Development Corporation was formed. There has not been a major infrastructure project since then, which demonstrates that the nature of devolution has led to money being spread much more thinly across all communities. There is a good argument for that, but it removes the ability to have an impact in one specific community.
When it comes to attracting investment, the added complexity of dealing with two Administrations for very large projects detracts from the ease of landing those deals. Let me give an example. I have long had the plan and hope to develop what I call battery valley in Wales, akin to silicon valley in the US. I believe that Wales has the capacity to develop expertise in the manufacturing and storage of batteries for electric vehicles as we move from the internal combustion engine. I have had the privilege of travelling to manufacturers and meeting investors around the world to encourage them to consider Wales for that purpose. It is great news that Britishvolt is looking at making such an investment in my constituency. That investment could be well in excess of £1 billion. It could be between £1 billion and £2 billion. Naturally, Britishvolt will expect some sort of Government support to invest in Wales and specifically—hopefully—in my constituency.
An example of the sort of incentives that the German federal Government have offered for a similar investment to be made in Germany is close to €2 billion. The Welsh Government cannot compete with that sort of scale of spend, but clearly the UK Government have a part to play and can seek to jump-start the industry by making large-scale sums of money available that the Barnett formula could never deal with. As my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) has pointed out, the clauses in the Bill fill a major hole in the current devolution settlement in terms of attracting major investment and major infrastructure projects.
The hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) highlighted briefly the challenges relating to the shared prosperity fund. Nations and regions across the UK have long been frustrated by the European aid programmes. West Wales and the Valleys has seen spend approach £5 billion since the year 2000. Owing to the complexity of the European Union arrangements, I certainly do not think we have had the best value from that. We can look to the Welsh Assembly’s Public Accounts Committee, business groups’ statements and communities that have been frustrated by it, and we can all point to specific projects in areas across Wales that have not been what the community really wanted or needed, but that just happened to fit the rules that the European Union set.
Finally, let me stress that we are not a federal country. We are a Union of nations, but even in the most federal of constitutions, the central administration has the power to act and to support. It is absolutely right that the United Kingdom Government have the power to act in support of every part of every constituency, wherever you are in this kingdom.
Although I am not new to politics, I am comparatively new to this place, and my views on politics and self-government for Scotland were forged in the 1980s and the devolution debates of the early 1990s, well before Scotland had a Parliament of its own. When I speak to young Scots of voting age now, very few of them have any memory of there not being a Scottish Government and Parliament. The idea that there ever would not have been seems alien and absurd—almost as absurd to them as it seemed to me that those institutions did not exist back in the 1990s.
Although I was supportive of devolution at that time, the arguments that I and others made in favour of independence referred to devolution and its potential weaknesses. Our arguments did not find favour at the time. They were that devolution was going to create a Parliament subordinate to Westminster, that without a written constitution its powers and status could not be guaranteed, and that power devolved is power retained. All those arguments, whatever their essential truth and accuracy, were lost in the assurances given at the time about permanence and respect.
The fact that those arguments about permanence and respect were made by politicians of the standing and character of Donald Dewar no doubt helped enormously. For the past 21 years, by and large, that is exactly how it has been. Disputes over money and policy aside, both Parliaments have co-existed. As Holyrood’s stature has grown, and Ministers have begun to act with the stature befitting a Government, rather than a regional subordinate Executive, so too has Scottish confidence grown. That, rather than any concern about the integrity of the UK internal market, seems to be driving a large part of the motivation behind this part of the Bill.
A number of speakers have talked about the current settlement. One thing that the current settlement does give is clarity: if a matter is not explicitly reserved under schedule 5 to the Scotland Act 1998, it is devolved. Unionists who proclaim the parliamentary sovereignty of this place should know that that is the case because this place legislated for it. Throughout devolution, the Sewel convention has operated, meaning that this Parliament will not ordinarily legislate in areas of devolved competence without the express consent of the Parliaments. It is precisely to protect that principle of consent that my party is putting forward this amendment today, to ensure that under that principle, no action in respect of these powers will be taken without the agreement of the relevant devolved Ministers.
Turning to clauses 46 and 47, I think of the ancient proverb that one should beware Greeks bearing gifts. Scots, through long years of experience, have come to be suspicious of Westminster politicians pledging similar gifts. Scottish voters have long been wary of that. The proposed powers are so wide-ranging, covering promoting economic development, infrastructure, cultural activity, sport, education and training activities, that their motivation is quite clear. Indeed, the right hon. Member for Wokingham (John Redwood), who was here earlier, gave the game away: this is nothing more sophisticated than sticking a great big flag on the side of something and saying, “We paid for that.”
There is no money element to these proposals, and I have to say that if they actually represented additional money, we might be having quite a different debate. However, I know from bitter experience that all that will happen is that the Scottish Government’s funding will inevitably find itself top-sliced—a bit like the Scotland Office having to pay for press officers or private polling—and it will be presented as the return of Scottish taxpayers’ money and UK borrowing, and as being somehow down to the largesse of the Treasury, and we should all be grateful for it.
The ability that these measures will give UK Ministers of the Crown to bypass devolution and Scottish Ministers —who are also Ministers of the Crown—and to bypass the democratically elected Government of Scotland to make policy and allocate resources in devolved areas, whether that is in line with the priorities of those elected to lead in those devolved areas or not, represents the biggest single attack on devolution imaginable, short of the abolition of those institutions themselves.
Let us take infrastructure as an example. I find it hard to understand the argument that the Bill could improve that situation. Scottish Governments of all political stripes across many years—decades, indeed—have a record of ambitious investment, whether delivered or planned for the future. The magnificent Queensferry crossing was mentioned earlier. We also have the Aberdeen to Inverness rail improvements, involving more than £200 million of improvements that benefit my constituents to a remarkable extent. We have the central belt rail electrification. We have the Aberdeen bypass, and the Balmedie to Tipperty dualling. We also have the completion, after 50 years, of the central Scotland motorway network.
The hon. Member for Moray (Douglas Ross) said on Second Reading:
“I want to see our two Governments working together as they do on city and growth deals the length and breadth of the country.”—[Official Report, 14 September 2020; Vol. 680, c. 89.]
I absolutely agree with him: for as long as we have two Governments for Scotland, they should indeed work together.
However, as an argument in support of the Bill that is, I believe, fundamentally flawed, because these deals already work and there is no need for a further encroachment on the devolution settlement to make similar deals work better.
The UK Government could put in place the resources to fund a sector deal for the North sea. They could, if they wanted to, help local government defer—or, better still, write off—the interest on the Public Works Loan Board loans of local authorities right across Scotland, as my hon. Friend the Member for Aberdeen South (Stephen Flynn) has called for. They could even, if they wanted to work in a genuine spirit of partnership, expand the financial powers of the Scottish Parliament to embrace borrowing powers.
The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) and I had an exchange earlier when he accepted my intervention, for which I thank him. May I recommend to him, for his bedtime reading tonight, the “Scottish Local Government Finance Statistics 2018-19”, particularly chart 2.2, where his eyes will feast on the general fund net revenue expenditure figures for Scotland? He will see that the Scottish average spend is £1,981 per head, and that in Aberdeenshire it is £1,970, which is just immediately below the average. I commend it to him. Many criticisms can indeed be made of the funding formula. I will be glad to share that diagram with the press when his press release goes out later, and I will be glad to add some factual context to it.
Frankly, this is nothing more than an arrogation, a usurpation and a trespassing on the principle that the decisions taken exclusively for Scotland should be made in Scotland by those who are directly accountable to the people of Scotland, taking us back to the bad old days prior to devolution, when Ministers of a party elected on a minority of the votes and seats could nevertheless rule the country without going to the trouble of winning an election beforehand.
Devolution was once described as
“the settled will of the Scottish people”—
as a way to accommodate legitimate desires for growing democratic aspirations within an old Union. That was certainly how it looked until 1997, and it is how it has looked for many in Scotland until recently, but the Union that Scots were invited to vote for in 2014—the balance that existed between Parliaments, Governments and institutions in London, Brussels and Edinburgh—has already gone. The failure to back an amendment of this nature shows that the very principles of autonomy, consent and respect that lay at the heart of the devolution settlement are also about to go.
People who voted in 2014 to be part of two Unions—the European Union and the British Union—can now see that they can only possibly be part of one. If this amendment falls and is not taken on board by the Government, it will show that the entire basis of devolution—that decisions should be taken for the people of the devolved nations and regions by those elected by and directly accountable to them—is being similarly trashed.
If the UK Government wish to depart from the EU and to deploy their majority to crush these principles, there is very little that I or my colleagues can do in practice to stop that, although there is plenty that can be done outside this place. For all that I used to make the argument that one day, the Scottish Parliament might have its wings clipped by a politically motivated activist Conservative Government, I never imagined for one day that a Government would come along so stuffed full of John Bull as to make it actually happen.
The polls across Scotland—I am sure that private polls in the Scotland Office confirm what the public polls say—show that increasing numbers of Scots know and understand that to re-attain EU membership, independence is required. If the Bill is passed unamended, it will become equally clear that independence is also required to preserve Scotland’s hard-won democracy and autonomy. It will give me no satisfaction to be proven right, from back in 1997, about where devolution might end up. There is if not yet a settled will, very definitely a settling will in Scotland that that is the case. If yet more of the Scottish people reach the conclusion that independence is now the only way to protect Scotland’s Parliament, this Government, having acted in haste, will be left to repent at leisure and in not very splendid isolation.
Of course, if we cast our minds back to 2016, one of the leave arguments made during the referendum was that not only is the UK a net contributor to the EU, but the reduced funds that it receives back are prescribed explicitly by the EU in terms of how much and where in the UK these funds are spent. We were being told where to spend our own money, and less of it. Brexit and the Bill rectify that utterly bizarre arrangement and allow a sovereign UK Government, working together with their devolved Administrations, to set out how and where these funds are spent, which is precisely as it should be. We voted to take back control, and control we are taking back.
Under clauses 46 and 47, our UK Government could make payments, including grants, loans and guarantees, to any person in the United Kingdom for the purpose of promoting economic development in the UK, providing infrastructure in the UK, supporting cultural and sporting activities, projects and events, and supporting international and domestic educational and training activities and exchanges.
We have very recently seen the benefit of taking a UK-wide approach to funding issues such as covid-19 and the effects of Storms Ciara and Dennis, and the Bill supports exactly that type of approach.
I hold Scotland close in my heart, with many fond memories of holidays—and how could I not mention the excellent whisky, as I think about Laphroaig and The Macallan, still in my cupboard? It is a worldwide export from the United Kingdom. We are our own biggest trading market between whole nations, and I want to see Scottish businesses and businesses in my constituency of Dudley North continue to have unfettered access to each other’s markets—something that simply would not happen were the SNP to have their own agenda, with their separatist approach.
So far, all we have seen and heard from Opposition SNP Members is this damaging rhetoric that champions separation instead of growth and jobs through trading in our Union. They criticise this Government and, by default, ordinary British people who voted to leave for, as was stated yesterday, unpicking 60 years of European jurisprudence; yet they want to unpick over 300 years of a Union much closer to home that has proven to work for everybody. For all their claims to be defending the Scottish people and devolved powers in Scotland, it seems utterly bizarre and ironic that the SNP should want to return those powers to Brussels, because not only will sovereignty be lost, but as the former SNP Minister Alex Neil admitted, there would have to be a customs barrier between Scotland and the UK, and no doubt a separate currency. I cannot for the life of me understand why SNP Members would actively advocate a move to suppress their whole nation and damage their local economy. The Bill strengthens the Union, so it is no surprise that they seek to oppose it, but they should all be held to account for not wanting to stand up for all the British jobs that the Bill would support and protect.
A single unified internal market is a key block in the constitutional foundations of the United Kingdom.
When the transition period ends on 31 December, we shall be finally free to leave the provisions of the EU. This country needs a legislative framework that protects the integrity of the UK and provides continuity, certainty and prosperity for all four parts of the country.
At a time when thousands of businesses around the UK are struggling to recover from the impact of coronavirus, no Member of this House should be in any doubt that we need to have in place a system that facilitates the free flow of goods and services around all parts of the UK. That gives us the opportunity, which these amendments touch on, to invest properly in infrastructure and projects that encourage development in all parts of the UK.
With regard to these amendments, my fear is that some Opposition Members are seeking to exploit genuine concerns about the Bill for their own agendas. The fact is that without its provisions, the increased divergence of our four nations is a real threat. As I outlined at the start, this Bill in its entirety is aimed at preventing any fundamental undercutting of the Union, which would damage business, create uncertainty and dampen prosperity. Indeed, these clauses seek to level up the entire UK.
I find perplexing, therefore, the protestations from nationalist parties regarding the role of Westminster. The Bill’s intentions and restrictions on their powers are extremely similar to the current situation they find themselves in under EU law. Control over these issues was always delegated to Brussels by virtue of our membership of the European Union.
One of my core beliefs through my life, and even more so since I became a Conservative and Unionist Member of Parliament, is that our four nations are stronger together. I did something practical about that, beyond speechifying, in that once-in-a-generation referendum in 2014. Our histories are entwined, and this Bill seeks to further protect our Union and the place of each devolved nation within the United Kingdom.
Moving on from that point, the Bill ultimately creates a safety net to correct some potentially harmful aspects of the Northern Ireland protocol in the event that there is no deal. The danger is that at present the EU has the ability and potential to exert significant economic damage on Northern Ireland and pressure on our Union if a deal is not achieved and actions are not taken in good faith, and clearly that must be avoided. The reserve power that this Bill proposes will give Ministers the ability—and I stress that this is the ability—to protect Northern Ireland in the face of any acts of bad faith; that will allow the UK to protect itself from any abusive exercise of treaty powers by the EU.
As a former MEP, I will assert that some elements of the EU hierarchy are so bruised by the UK voting to leave that it is wise not to entirely assume that wholly rational reactions will be forthcoming. Of course we hope these powers will not be needed, but it would be irresponsible of the Government, and indeed Members across the House, not to support their provision as a last resort.
In leaving the European Union, we lost all the regulations and standards on food production and manufacture that applied across the continent. I recognise and am in absolutely no doubt about the need to replace them across the UK. For some time, I was prepared to listen to the Government’s arguments when they were negotiating with the devolved nations—in good faith on both parts, I believe—in respect of the frameworks and powers to replace them. However, the wheels appeared to fall off that particular wagon when the occupancy of No. 10 changed.
I have to join Government Members in laughing when SNP Members point a metaphorical accusatory finger and yell, “Centralisation.” Those of us who actually live in Scotland and have to endure the SNP Government’s incompetence know that when it comes to keeping control of the purse strings centrally, they are the control freaks par excellence of British Governments—
I am amused by the SNP stance. For SNP Members to give us a whole list of things on which the UK Government should spend money in Scotland—a list that, like the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), I support very much of—but then to say that they do not want the UK Government to spend money in Scotland strikes me as absolutely ridiculous. Where, indeed, would people who live in Shetland and the Shetland Islands Council be if the UK Government had not had money to spend in Shetland when people there found themselves in need of financial support? To say that the UK Government cannot spend money on UK citizens, which is what we are—and many of us are proud of that—is utterly nonsensical.
We need that option, rather than just having the list given by the hon. Member for Gordon (Richard Thomson) of projects with great big saltires on them, and proclaiming that they were done by the Scottish Government. The Scottish Government are not the only funding body in Scotland.
Let me return to the point. In a number of ways the Bill does not respect the devolution settlement, and that is a great disappointment to many of us. I appeal to the Government, in going forward with this Bill, to look seriously at whether they can take on board amendments that would improve the collaboration, involve Ministers of the devolved nations, involve the elected representatives of parts of the country and ensure that we respect the devolution settlement, and, moreover, that we protect it and perhaps enhance it. That might prevent us from having to have this debate again and again and again in this place.
On Monday evening, I voted to give this Bill its Second Reading, because I support the broad aims of the legislation. I am very grateful for the opportunity to speak on the detail of the Bill, particularly on clause 46. However, I do have reservations about certain aspects of it, to which I shall turn in a moment.
The Bill is necessary to safeguard the Union and ensure that businesses in all parts of the UK can continue to trade seamlessly across the United Kingdom. It is important that Derbyshire hill farmers can continue to sell lamb to Scotland, that supermarkets in Wales can continue to stock sweets made in New Mills, and that construction sites across the country can continue to use the high-quality limestone quarried out of the hills around Buxton and Hope.
The UK’s internal market is centuries old, and a cornerstone of our Union and our economic success. The Bill helps to provide certainty to businesses that, when we leave the transition period, the internal market will be safe and our high food hygiene and animal welfare standards will be maintained.
Clause 46 is a vital part of the Bill that will give the Government the power to spend money in areas previously administered by the European Union, such as infrastructure, economic development, culture and sport, as well as aspects of education, training and international exchanges. This is essential to allow the Government to properly serve all parts of our United Kingdom. I have previously talked in this place at length about how successive Governments of all parties have failed to invest properly in certain parts of the country, including, of course, the High Peak over the past few decades. The clauses in front of us are part of remedying those past mistakes.
As I have said, it was for those reasons that I absolutely supported the core thrust of this Bill and voted for it on Second Reading, but I am uncomfortable with an element of it—which is why the Committee stage is so important. I firmly believe that we must fully deliver on the 2016 referendum result, and that we must take a hard-headed approach to negotiations with the EU to secure the best possible long-term trade deal. Brinksmanship and preparing for the worst are, of course, a key part of that. In my view, it is also essential that we secure that trade deal and deliver on our promises in a way that is in line with our values. Any breach of our commitments must be considered only as an absolute last resort, and even then only after considered debate, scrutiny and oversight.
As this Bill progresses through the House, I hope that the Government will listen carefully and take the opportunity to improve on it. I am grateful to the Lord Chancellor, the Attorney General, No. 10’s trade negotiating team, and the Minister herself, who is now in her place, for meeting me and others to discuss our concerns. I hope that we can make those improvements.
We have a tendency in this place to spend far too much of our time speculating on what might have been and on events that are outside our control. Perhaps that is because it is more comforting than confronting the hard choices in front of us, but that is exactly what me must do to deliver on our promises and safeguard the future of the United Kingdom.
My concern is with what these proposals represent for the devolution settlement. I have to caution Government Members, because there have been a few gripes that “Oh, the SNP will always oppose this.” This is not a matter of the Scottish National party taking umbrage at these proposals. When the Government make them, they offend and affront not me or my colleagues but the ordinary people of Scotland, who, on 11 September 1997, voted by a majority of 74.3% to say yes to a Scottish Parliament and yes to devolution. If that vote took place today, those figures would be higher still, with up to 90% agreeing with either partial or complete autonomy of decision making in Scotland. Those are the people that the Government need to justify these proposals to.
That is why I believe that the Bill is not about an internal market or anything to do with trade. The political objective behind these proposals is to begin to reverse the devolution settlement and the process of devolving decision making to Scotland and other parts of the United Kingdom. That is what is going on.
My evidence for that is quite simple: it is to point to the last 20 years. We have had devolution—we have had different decisions being made, and we have had variations and differences in different parts of the United Kingdom—yet it has not stopped trade. We are party to a whole range of trade agreements at the moment. We are party to them through our membership of the European Union, but, as Government Members never tire of telling us, the regulations and bureaucracy surrounding the European Union and its protection of the single market are really onerous and we have to be away from them. If it has been possible, under the European single market regulations, for the Scottish Parliament to make decisions about minimum pricing of alcohol, smoking bans, animal welfare standards or anything else that relates to what is sold in our shops, why on earth would it not be possible for that to continue after we leave?
That is what is at stake here—and that, by the way, is why we refer to a power grab. It is not that a particular power is being taken away, but the exercise of that power is being constrained and enforced by a set of regulations that have never been there before and have never been felt to be necessary before.
Clause 46, which we are talking about today, is a case in point. Some Government Members have suggested—of course, it is the whole Government narrative to suggest it—that this is simply a matter of a replacement for the structural funds of the European Union and how resources are distributed across this island. Well, before we do that, let us consider how things are done at the moment and how they have been done heretofore. Of course the budget for the structural funds is set in Brussels, but once the budget is determined, the manner in which those funds are spent—the priorities for funding and infrastructure, the individual projects, and how much is spent on each—is determined in Scotland. There has never been an instance of Brussels trying to overturn a decision or challenge those priorities.
In fact, the Bill gives this place the power to take funding decisions about all manner of policy areas of Scotland, most of which are already within the devolution settlement and are the responsibility of the Scottish Parliament. What, therefore, is being proposed, as far as I know, is that this place would be able to determine the spending priorities on health, education, transport and a whole range of other matters, and it would have the ability, through these provisions, to overturn any decisions of the Scottish Parliament. That is also a power grab.
I have wondered why these sledgehammers are being assembled to crack these very small nuts. Why is it that the devolution settlement is such an irritant to the current Government that they see the need to have this legislation and to roll back on the provisions of devolution? I have searched myself, and I cannot find a reasonable explanation save for one: the demise of the Conservative party in Scotland. A once great party is now reduced to a rump of six Members of Parliament, only one of whom has been in this Chamber for more than three years. That lack of experience and that lack of representation of the Conservative tradition in Scottish civic society in this place and in this Government are truly creating problems for them, but the situation is also creating big problems for the people of Scotland, because it is leading to ill-judged and ill-considered proposals, and I believe that the Government will rue the day that they were presented.
Let me finish by saying that there will be a reckoning to all of this. I know that the Government will railroad this through. They have an 80-seat majority, and the lobby fodder will go through and support it—most of them unaware of the nuances of the devolution settlement and perhaps not even caring about it. However, there will be consequences to that action, and the consequence will be that the people of Scotland will see clearly the contempt in which they are held by this Government. They will take umbrage at those decisions, and they will get their chance to express their view in a few short months’ time.
I end by referring to the comments from the hon. Member for Cardiff South and Penarth (Stephen Doughty) at the very beginning of this debate. They were quite interesting, because he and others on the Labour Benches have made the point that they do not support Scottish independence or the SNP, but here is the conundrum that the House now has to face: it seems the intentions of the Government are such that the only way to protect the limited devolution and political capacity we have had in Scotland for 23 years is to take for ourselves the political power that comes with being an independent country and make sure that those powers are retained. That is why many people who used to be represented on the Labour Benches are now realising that the only way to defend the gains made through history is to have complete devolution, complete autonomy, become an independent nation state and secure the political capacity to make our own decisions, so that they will never again be subject to the whims and aspirations of Tories in No. 10.
This is one of the more difficult speeches I have had to deliver in my short time in the House, and that is not to say that I am conflicted; far from it—I will be supporting the Government and voting against the amendment. Rather my difficulty is trying to understand the strident objection to the concept of more money coming to every part of this United Kingdom. In trying to understand that point of view, I have tried to distil the essence of the Bill, specifically the provisions in clauses 46 and 47, and its importance to maintaining our internal market and by extension our Union. Article 6 of the Union with Ireland Act 1800 states that
“his Majesty’s subjects of Ireland shall have the same privileges and be on the same footing as his Majesty’s subjects of Great Britain.”
Explicitly stated in the Act that created our Union is the idea that all four home nations will be treated equally and fairly and on an equal footing. That principle has operated seamlessly for over 200 years, yet right now, because of the calculated actions of the European Union, that bond is in jeopardy.
I want hon. Members to consider what is at stake here: the very essence of who we are. We will be allowing a supranational entity to exercise power over a part of our nation and fellow UK citizens to be treated differently, and potentially cutting them off from their own country’s markets. Step back and reflect for a moment: there are Members of this Parliament seriously arguing that we should allow that to happen if no deal is reached with the EU.
This will not come as a surprise to many in my constituency, or in towns such as Darlington, Accrington, Bury or Bishop Auckland, where they gave the Labour party its marching orders in December. Many of the faces that were straining every sinew to frustrate the 2016 referendum result are still on the Opposition Benches. In fact, the architect of Labour’s second referendum pledge is now the leader of its party. What better signal to send to people in seats such as mine that Labour does not share their values and does not care about their opinions, except for the fact I can only see four Labour Members in the Chamber—and one of them is leaving. The contempt that that shows for red wall voters is clear. The Labour party does not take this seriously, does not want a sensible solution to Brexit, does not care about people in the north and midlands.
Of course, Labour Members are not on their own in their endeavours. The nationalist parties are salivating at the prospect of a scenario that separates a part of the United Kingdom from the rest. It is after all their raison d’être. It is a petty, divisive attitude that leads to the kind of doublethink where they simultaneously carp on about a fictitious power grab while openly admitting they would hand over more powers to Brussels, including powers over our coastal waters and fisheries. So-called civic nationalism is a bit like clean coal: adding a friendly adjective does not make it any less toxic or any more in need of phasing out.
The clauses being debated today have a distinct significance to communities such a mine. The forgotten towns of the north and midlands voted so overwhelmingly to leave the EU because it simply was not working for them. The UK would send vast sums of money to Brussels, which would then send some of it back, with instructions on what to build, what to fund, and where to put a sign thanking them for their largesse. It was a bit like being mugged and then being forced to wear a T-shirt with a picture of your assailant.
That money never reached communities like mine, not in any meaningful sense. By taking charge of our finances, by building a shared prosperity fund, we will make sure that more of our money is spent in our communities, helping our people. I want people in Heywood, Middleton, Bamford, Castleton and Norden to have the same opportunities as people in London, Bristol and Cambridge. This Bill provides that, in addition to the £2.5 billion for city and growth deals across the whole UK that is already on the table.
It genuinely saddens me that some people in this place, some of whom I have come to think of as friends and some of whom I greatly respect, are still fighting this battle. Well intentioned as they may be, I think that history will find them on the wrong side of this debate, and I would like to quote to them a letter sent to me by a constituent, Prasana MacDonald from Middleton. She says: “Mr Barnier broke his word in good faith for all concerned. We should be a laughing stock in the eyes of good countries who will wonder what has happened to the British nation, in fact, placing ourselves in a position where we can be at the beck and call whenever they choose to do so. It is hardly attractive for any country wanting to do business with us. We will also be in a weaker position, negotiating with the wider world whilst tied to the EU’s apron strings.”
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Hon. Members should not underestimate the depth of feeling on this. In December, those who stood against the settled will of the British public reaped the whirlwind. The eyes of the nation that put extraordinary trust in this party, and this Government, are still watching.
I will close simply by asking hon. Members to consider two questions when they vote tonight. First, which agreement is most important to them, the withdrawal agreement or the Good Friday agreement? Secondly, which union is more important to them, the European Union or the United Kingdom of Great Britain and Northern Ireland? The choice should be clear.
The fact of the matter is that as far as England, Scotland, Northern Ireland and Wales are concerned, the devolved Administrations will still have significant spending powers over all those things. They will get their allocation under the Barnett formula, as they have always done. They will have the freedom to make the decisions to spend that money, and they will be able to set their own priorities. Even when it comes to the money that the Government will decide to spend centrally, does anybody really believe that some Minister in Westminster will look at, say, Northern Ireland and say, “There is something that the devolved Administration have never thought of, do not even have as a priority and have never even suggested, but by Jove we are going to spend money in Northern Ireland on that project”? It is totally bizarre to think that that is how money, which is hard raised in the first place, would ever be spent. Of course cognisance will have to be given to, first, what is in the national interest and, secondly, what local Administrations believe is important to be delivered on the ground in their own areas.
One of the oddest arguments I have heard today was from the hon. Member for Foyle (Colum Eastwood), who is no longer in his place. I do not like talking about people who are not here, but as he has not stayed for my contribution, I must make the point. He wants clause 46 removed because he thinks it is in danger of bringing violence to Northern Ireland, it will break the peace agreement and it will tear up the Good Friday agreement. Somehow or other, the Government spending money on those things, or proposing to do so, will destroy the peace in Northern Ireland. I know that some people in this House have fairly thin arguments, and when they have thin arguments, and especially when those arguments are anything to do with Brexit or the withdrawal agreement, they usually talk about violence in Northern Ireland, but this is taking it a bit far.
Let me turn to our amendment 22. My concern is about the provision in this Bill to give financial assistance for all the areas that I have outlined. The danger is that, while it might apply in England, Scotland and Wales, it cannot apply in Northern Ireland, because financial assistance—and a range of other assistance, in tax, fiscal policy, industrial policy, research and development, and everything else—falls under the heading of state aid. The Government have realised—rather belatedly, even though they were warned—that the state aid provisions in the withdrawal agreement apply not only to Northern Ireland but to the whole United Kingdom, according to article 10 of the Northern Ireland protocol.
The Government have sought to remedy that—of course, they have got a lot of criticism for that—by saying that they will not apply those provisions to England, Scotland and Wales. However, the Secretary of State for Business, Energy and Industrial Strategy made the position quite clear in the letter that he has sent round, explaining that this legislation will
“ensure that there is no legal confusion about the fact that, while Northern Ireland will remain subject to the EU’s State Aid regime for the duration of the Protocol, Great Britain will not be subject to EU rules in this area.”
The reason for our amendment is to remove the exclusion of Northern Ireland in the Bill, which would otherwise prevent Northern Ireland from being able to benefit from that financial assistance.
If these infrastructure projects are to benefit the whole United Kingdom and to address national issues, I cannot understand how the Government can then say, “But by the way, we are consciously making a decision to exclude Northern Ireland from these safeguards.” Be in no doubt: without this Bill, under the withdrawal agreement, the whole United Kingdom would have to declare any assistance given to its industries, in any form. The Commission would make a judgment on whether that was lawful, and if the Government persisted, the European Court of Justice would decide whether the support could be applied. That is the stark fact. That is one of the reasons why the Government have had to take the steps that they have taken, but they have left Northern Ireland out of that provision. Ministers have been quite explicit about that, and the Bill is quite explicit about it.
That has two effects. Let us not forget that we are talking about the internal market of the United Kingdom. The first impact is that Northern Ireland and businesses in Northern Ireland will be left unprotected from predatory behaviour or unfair competition from other countries in the EU, and especially the Irish Republic. We have good experience. People talk about co-operation between Northern Ireland and the Irish Republic. The fact of the matter is that, when it comes to looking for investment, looking for jobs and promoting its economy, the Irish Republic is not co-operating with us. It is not a collaborator; it is a competitor. It has proved that time and again.
We do not have any transatlantic flights between Belfast International airport and North America, even though North America is a very important market for us and a very important source of investment, and connectivity is all-important in that context. Why do we not? Because the Irish Government have promoted flights and used every fiscal device and every means possible to promote Dublin airport. I could go through lots of examples, but time is short.
That is the first impact. Northern Ireland businesses will not have any means of protection. Even if the Northern Ireland Executive spot an issue and say, “We want to have some support for our industries,” that is challengeable in the European Commission and in the Court—in which, by the way, we will have no political representation and no judicial representation.
The second impact refers to the internal market of the United Kingdom. As a result of the Bill, it will be possible for the Government to support industries in GB but not businesses in Northern Ireland. We could therefore have a scenario in which a firm located in Northern Ireland cannot benefit from the financial assistance that is available in the rest of the United Kingdom and finds itself in a position where it is advantageous to relocate from Northern Ireland, where it cannot get assistance, to GB, where it can. So much for this being a Bill to protect the internal market of the United Kingdom! By having a provision for financial aid and excluding Northern Ireland from the measures on ignoring the state aid provisions in the withdrawal agreement, we could distort investment across the United Kingdom to the detriment of Northern Ireland.
For those reasons, I believe that my party’s amendment is reasonable and fair. It meets the requirements and objectives of the Bill—namely, to ensure that the whole United Kingdom benefits from the prosperity that will come when we leave the European Union, and to ensure that the internal market of the United Kingdom will not be distorted. That is one of the reasons why I believe that the Government should include Northern Ireland in the provisions in clauses 42 and 43, and that the Committee should support amendment 22.
Clause 46 is the element of the Bill that I most warmly welcome, but overall this is an excellent piece of legislation. Small businesses and farmers in my constituency have always been forward-thinking and export-minded. On their behalf, I give this Bill my firm support. As we work on free trade deals with new and innovative foreign markets—I congratulate the Secretary of State for International Trade on already securing one such agreement with Japan—the UK Government must also seek protection for businesses as they trade within the four countries of the United Kingdom. Goods produced in one part of the UK must have the security that is provided by this internal markets legislation. I want lamb reared in Builth Wells to be on the menu in Belfast.
Devolution has been the subject of much of this debate. Critics of the Bill argue that this is a power grab, and that powers are being stolen from the Welsh Parliament, but that is simply not the case. Over the weekend, I voiced my support for the Bill on Twitter—always a stupid thing to do—but I was met with a torrent of abuse and foul language, stirred up by supporters and even members of Opposition parties. I will not be intimidated into not promoting the Bill. I find it amusing that those contorting themselves with outrage about the Bill on social media blindly support a European Union that is frequently in breach of the law.
This legislation is exactly what people in Wales, and especially my constituents, want. In Brecon and Radnorshire, we are proud Unionists. We want two Governments willing to support us in Wales, but sadly we do not quite have that at the moment.
I want to look quickly at the notion of a power grab. If I phoned the police and said that my car had been stolen, but when they arrived explained that I had never owned the car in the first place, I do not think I would be taken seriously. That is absolutely how we should treat the hysteria of Opposition Members.
When the UK left the European Union, we did so as one United Kingdom. The powers that are returning through the Bill, outlined in clause 46, were ceded to Brussels as part of our membership of the European Union. As sovereignty is restored to this Parliament and the devolved Administrations, it is right that powers should also be restored. Members will recall a long drawn-out legal case brought by Gina Miller, which confirmed that this Parliament was and remains sovereign, and the Bill reinforces that. In addition, the Welsh Parliament will be handed responsibility for 70 new policy areas while none of the existing areas of legislative competence is being removed, so to those who argue this is a power grab, I simply say, “You cannot lose something you never had.”
The Bill will give the UK Government the power to do exactly what they should be doing—strengthening even further the most successful political and economic union in history. It is about doing more at a reserved level, not less at a devolved level. It will give the UK Government the power to invest in Wales’s economic development, something that successive Governments in Cardiff Bay have refused to do. Broadband is a good example of that; according to the House of Commons Library, Brecon and Radnorshire lags at 648th in the league table of 650 constituencies for broadband speed. [Interruption.] I hear the hon. Member for Cardiff North (Anna McMorrin) chuntering from a sedentary position, but that is in the House of Commons Library. Her party is responsible for it.
Schemes such as the Welsh Government’s Superfast Cymru have been enabled by taxpayers in Brecon and Radnor, despite their barely having felt the benefit of that money, while the south Wales valleys—a hotbed of Labour party support—are fully connected up with high-speed internet access. Areas that do not vote Labour in Wales are punished with second-rate public services, and we must correct this.
Through the Bill, there are huge opportunities for Brecon and Radnorshire. I can get my shopping list out and bid for funding for a new general hospital. Considering we are the largest constituency in England and Wales by land and we do not have a district general hospital, that will be very welcome. Constituents are forced to travel outside Powys to hospitals in Hereford, Swansea or Aberystwyth for treatment. I see the Minister making notes. I assure her I would bite her hand off on this. The same can be said for railway infrastructure. We can utilise the nascent Marches growth deal and reopen the railway between Hereford and Brecon, boosting our tourism opportunities while providing greener public transport solutions.
The Bill delivers on exactly what we said we would do at the general election. It enables us to level up in all four corners of the United Kingdom. It will be warmly welcomed in mid-Wales, which has been ignored by Labour and the Liberal Democrats in coalition in Cardiff Bay. Sadly, there is no doubt that the Opposition parties will use the Bill as an opportunity to reignite their campaign of talking down our potential as a sovereign, independent nation. Rather than strengthening our Union and empowering our Parliaments in all four nations, they would prefer to be subservient to Brussels for decades to come. I say to them that now is not the time to remain in the past. Rather, it is time to look forward to a new chapter in our shared history, laying the foundations for making this the most prosperous chapter yet. This Bill and this clause do exactly that.
I do not know whether Members watched the sitcom “Only Fools and Horses”, but whenever Del wanted Rodney to do something difficult or emotional, he would say, “Rodney, on her deathbed, our mother said…” Then he would proceed to make his pitch. I feel that, sometimes, the Good Friday agreement is used in the same way.
For example, the Prime Minister is before a Committee today, invoking the Good Friday agreement and then proceeding to endorse actions that would go through it. I will take a minute to explain this to people and invite them to take their understanding of the Good Friday agreement not from those who stood outside and screamed through the windows when people were negotiating that agreement, and not from people who fought tooth and nail to prevent the implementation of the agreement while others were doing the heavy lifting to prevent slaughter on the streets and hopelessness for young people.
When people go to listen about the Good Friday agreement, they should please select their sources carefully. It does not have an enormous amount to say about borders, hard or soft, because, it is fair to say, in 1998 there was an assumption that shared EU membership, like the air around us and the ground beneath our feet, would be something that we would have in common between Britain and Ireland. There are numerous references to growing friendships between our two islands through that body. It says a lot about relationships. It is about relationships at its core—about relationships within Northern Ireland between different traditions, relationships north and south, and relationships between our two islands. The past four years have profoundly strained every single one of those relationships. Furthermore, the things that that we wanted or needed to talk about less—borders, sovereignty and passports; the things that the Good Friday agreement allowed us to potentially move on from—have been inserted into our everyday lives every minute of every hour of the past four years. It also has a lot to say in the political declaration about the rule of law—about democratically agreed structures and respectful process. Members can decide whether or not what has happened in the past four years meets those criteria.
Our amendment 19 seeks to mitigate some of the damage caused by clause 46. As well as all that I have said about the Good Friday agreement, it was also about local decision making and putting power in the hands of local people—building up trust between communities and between elected representatives by working in the common interest in making decisions together. Indeed, it was those factors, with the possibility of self-determination and unhindered access to the whole of the island, that allowed peaceful, constitutional, democratic Irish nationalism in the tradition that my hon. Friend the Member for Foyle (Colum Eastwood) and I represent to triumph over violent republicanism. That is some of what we are losing whenever we take away the ability for people to make their own decisions.
We are not making a nationalist argument. The argument is not that we are opposed to a UK internal market. I can read a spreadsheet as well as anybody in this room, and I understand the value of the economy and all that flows east to west. By the way, of course, the barriers to trade are a consequence of hard Brexit ideology; we argued and fought against barriers in any direction. The point that we are trying to make is that we need to protect the discretion to tailor to our own needs. The late John Hume, who passed away last month, said many times that the best peace process is a job. It was EU structural funds, regional funds and rural funds that transformed Northern Ireland at a time when it desperately needed them. They did that by engaging local expertise and an understanding of local need. I have heard Members complain that some of the regions got more than their fair share. I do not feel any shame about that, because those funds were targeted on the basis of need, and Northern Ireland did benefit very substantially. But those funds will disappear and will be replaced by the shared prosperity fund, which has no defined role for the devolved institutions. As we heard earlier, we were promised a consultation on what that would look like by the end of 2018, but, as far as I am aware, it has not appeared.
I will never be one to turn up my nose at investment for anywhere, particularly for the region I represent, but it has to be investment that is spent strategically, with consent. Public money should be spent in a joined-up and transparent way—and I say, with the greatest respect, that this Government do not have a tremendous record on any of those things. Every few months, they raise the prospect of a bridge from Scotland to Northern Ireland—this, by the way, from a Prime Minister who could not build a bridge from London to London. If you actually go to Northern Ireland, you will find that most people would much rather have a decent road from Belfast or Derry.
A core part of the 1998 agreement, strand 2, was about north-south co-operation and the potential for that through shared EU funds. The proposed new approach could greatly undermine that if these investments are made without appropriate consultation. I appreciate that people have different perspectives and I try to understand them, but what some Conservative Members and others here might see as the opportunities of global Britain I worry will become, under this Bill, the obligations of global Britain to accept things like chlorinated chicken and the US forays into public services. With respect, before the summer we gave this Government numerous opportunities, in numerous Bills, to put into legislative effect protections against those things, and they refused to do so. It is therefore understandable that people within those industries in devolved areas do not have the confidence that they would be able to ward off those changes. It must also be understood that our economy is very different. A third of Northern Ireland’s exports are in agrifoods; we cannot withstand that same pressure, as this is how people make their living.
It is also possible that as well as the withdrawal agreement another document the Prime Minister has not read very well is January’s “New Decade, New Approach” deal in Northern Ireland, because it promised to
This Bill undermines devolved government—it does it very clearly. As I mentioned, the political declaration that accompanied the 1998 agreement does talk about primacy of the rule of law and democratic arrangements. I would hope that all Members in this House, whether they voted leave or remain—no matter how sore I am about it, I accept that a decision has been taken—and regardless of their position on that issue, could support the rule of law. No matter whether someone is a nationalist, Unionist or completely agnostic, the principle of devolution has been endorsed by the people of Northern Ireland, Scotland and Wales. This Bill is an assault on that principle, and anybody who respects consent, and the views of people in those Administrations and those populations, should support the amendments.
I stand here to speak about a principle that underpins the reason we all stand in this Chamber, that is a cornerstone of our democracy and the backbone of our Union. I am here today to talk about freedom. The notion of freedom and a desire to defend that freedom are both things that drive me, and I know they drive so many of us in this place. That freedom takes many forms. First, the people of our United Kingdom have the freedom of political choice. We in this place operate as representatives of the people. We are their voice in Parliament and, as a collective, we are the physical embodiment of the political freedom our constituents possess, so we have an overriding duty to act upon what they have freely expressed as their democratic desires.
As this Bill progresses, I ask that we all remember and keep at the forefront of our minds the fact that the people of the UK had the freedom of political choice, directed us to deliver Brexit and demanded that we, as a collective, come together on the will of the British people.
For too long, the north-east has been falling behind, failed by years of poor local leadership from Labour and let down over time by a series of successive Governments. Now, empowered by this Government’s levelling-up agenda, which is the heart and soul of this Conservative party, we must do better. We must deliver that much-needed investment for the north-east, so clause 46 has my wholehearted support. As we know, it will allow the UK Government the freedom to spend taxpayers’ money that was previously administered by the EU.
I must admit that the north-east has been the beneficiary of UK aid money, but as we carve out a bright future as an independent nation, it is only right that our Government have the freedom to decide how we spend our money. It is our job as local MPs then to lobby for that money for our local areas, and I can assure all residents of Bishop Auckland that I will be first in the queue for that. The EU is resisting that notion and is attempting to use state aid as a chain to bind our hands so that we comply with its demands in this negotiation, yet it does not ask the same of other nations with which it is negotiating trade deals. All we want is fairness.
As well as the freedom of political choice, if the referendum taught us anything it is that we as a nation also deeply desire the freedom to set our own domestic policy and that the sovereignty of the UK is paramount. That is what is being threatened by bureaucrats in Brussels. Their proven willingness to operate without good faith and to interpret the withdrawal agreement in, frankly, absurd and dangerous ways is why we need to empower this Government with the protective powers to secure the sovereignty and territorial integrity of our United Kingdom.
Sovereignty must apply to our United Kingdom, and I do not just mean the mainland. The European Union wants us to build a wall—not a physical wall, but a vast barrier that will none the less rip a deep wound into the heart of our Union, and we cannot allow there to be any kind of barrier between Great Britain and Northern Ireland. We gave our word to the British public and to our residents in Northern Ireland that we would not allow that to happen, so this week we must do our duty, as those who have come before us have always done, to uphold the territorial integrity of the United Kingdom. Residents of one part of our country should always have the freedom to travel and trade with another.
I now turn to my friends in Scotland. We all remember how we witnessed the people of Scotland exert their right of political freedom to choose to stay part of our Union. [Interruption.] I cannot state this more clearly: the United Kingdom is stronger united. The Scottish people chose their future as part of our Union, and it is the faith in that strength that we must protect.
I know that by now I should not be surprised by SNP Members’ antics, but I am surprised by the tone of their amendments today. I find it remarkable that SNP Members are against the prospect of additional funding for their communities. They would rather have UK taxpayers hand over our pocket money to Brussels in order for it to siphon off a portion, give us a measly bit back and pat us on the head. Well, I say no. We already know that the SNP is adamant that it wants to break up our Union, but why is it so unwilling to be given powers by the UK Government, yet so willing to hand them over to Brussels? I have spoken of the freedoms that we have.
I have spoken about the freedoms that we have, and about the freedoms that we are aiming to deliver. They are the freedoms that the British public have told us time and again that they want us to have. Clause 46 is a vital part of a Bill that allows us to maintain and reclaim our freedom, and that is why I reject the amendments tabled by other hon. Members.
But today is about more than just these clauses and this Bill; it is about the very heart of our democracy. We find ourselves today at a defining moment in British history, and on this day we must recall that the British people have the freedom to choose their own future, that they freely chose to leave the EU, that they have put their faith in our Prime Minister, and that they need us to be able to operate in a sovereign manner to allow ourselves to open our arms to the world. We will look back on this moment in the years to come, and we owe it to ourselves and our constituents to say that we stood on the right side of history.
With just weeks to go until the end of negotiations in the David and Goliath battle between the UK and EU, this is the eleventh hour. We have a duty to honour the freedom that the British public have, so we must reclaim our sovereignty, protect the territorial integrity of the United Kingdom and empower the country to trade with nations around the world, not just with our immediate neighbours. As the voice of the British people, it is our responsibility to create the brighter future that they have demanded, and on this day we must vote to give the Government the freedom they need to achieve that. I ask my hon. and right hon. Friends right across the Committee to vote with me, to vote with the voice of the British people and to vote to uphold the freedom of choice that underpins our democracy. I will always stand for freedom, and this week I have been and will be voting for it. I hope other hon. Members will too.
I rise today to oppose totally and utterly clauses 46 and 47 in their absolute entirety. With these clauses, we are now getting into the festering guts of this rotten rogue state Bill, and we are seeing how its entrails will choke the very life out of our Parliament and stifle our Scottish democracy. I hope that paints a vivid enough picture for Conservative Members. These clauses, if passed, would bring a shuddering halt to our Parliament’s exclusive authority over the devolved powers agreed in the Scotland Act 1998.
The Scotland Act 1998 is quite a simple document. It is a very good document; it was very thoughtfully constructed. At the heart of the Act is the idea that everything other than the powers listed in schedule 5 as reserved is assumed to be devolved. That has underpinned 21 years of devolution of the Scottish Parliament and has served us well. It was designed by the Labour party, and I give it credit for what it did. It came out of the views and visions of the constitutional convention of the 1990s. The reserved powers were the personal idea of Donald Dewar—a few people have mentioned him today, and it is right to recognise him as the father of devolution. He very carefully crafted the Scotland Act to ensure that it would be enduring—that devolution would be enduring.
With these clauses in this Bill, however, what we do for the first time ever with devolution is blur and confuse what is reserved and what is devolved. I will try in my contribution to understand a little better why we are doing this—the intention and purpose of this, and what the result will be of what is being proposed.
Mr Evans, you have been in the House as long as I have, and I think I have spoken on every Scotland Act; in fact I probably led for the Scottish National party on every Scotland Act other than the 1998 Act, when I was not yet in the House. You will probably remember that the Scotland Act 2012, which followed the Calman commission, specifically looked at schedule 5 and the reserved powers. I remember a very curious debate then in this House about Antarctica; because Antarctica was not listed in schedule 5 of the Scotland Act it was presumed to be devolved to Scotland. I reassure colleagues opposite that we have no territorial claim to the south Atlantic; the penguins and narwhals can relax—they are not going to be under the jurisdiction of Scotland. However, so seriously did this House take the distinction between reserved and devolved powers that Members were prepared to debate Antarctica to ensure it was placed in schedule 5 of the Scotland Act. Now they are prepared to throw that all away, and for what?
What is the Government’s view on all this? I have listened to the speeches in this debate, and some of those from Conservative Members were totally astounding: “There’s nothing to see here. Don’t worry your precious little Jockish heads about what we’re doing. All we are doing is merely copying what the EU does on state aid and structural funding.” However, I say to them that this idea that there is some sort of equivalence between the European Union and the UK is total and utter bunkum and nonsense. Let me explain why to them. The EU is a partnership association made up of member states; it is a rules-based organisation based on the decisions of its members. The United Kingdom, on the other hand, is an incorporating Union that simply subsumes Scotland as a nation and forces us under the sovereignty of this Parliament, even though we agree on the principle of the sovereignty of the people. They could not be more different, but yet again Conservative Members tell us that this is all about an equivalence with the EU, and that is utter, utter bunkum.
The Government have suggested today that we are complaining about extra funding. First, is there any extra funding? Secondly, where does it come from? Thirdly, how much is it going to be? We could have a debate about extra funding if they could answer all those questions. I am looking at the Minister; maybe she could tell us. We have the devolved powers for a particular reason. It is because we want democratic control over the decision makers on everything from education to health to infrastructure to water—all the things that they now want to exercise responsibility over.
Before devolution, there was a Scotland Office. It exercised responsibility, authority and powers over all the areas that are now controlled by the Scottish Parliament. The reason devolution came across was to directly express democratic control over those responsibilities. The Government now want to go back to the dark days of the 1980s, under the regime of Michael Forsyth and Malcolm Rifkind. [Hon. Members: “Hear, hear.”] They are going “Hear, hear”! I am hearing a “Hear, hear” from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). May I just say that the rest of Scotland does not share that ambition? I am pretty certain that when he stands next year for the Scottish Parliament he will find that out.
So that is what the Government are doing—they are attempting to take us back to those days. Extra money is great if there is any; I am just wondering how much it is, and whatever it is, how it will be distributed. But it should be under the democratic control of the Scottish Parliament when it comes to the devolved powers, because that is what it is there to do.
Why are the Government really doing this? Here is my theory; tell me if I am on the right tracks. They can never win an election in Scotland—the Scottish Conservatives have absolutely no chance of winning an election in Scotland. The new ever-cheerful hon. Member for Moray (Douglas Ross) and his belligerent baroness partner are actually taking the Scottish Conservatives further down. They are sinking below 20% in the polls. So they are thinking, “We’re never, ever going to get legislative responsibility and control of the Scottish Government, so we’ll just go round it—we’ll just circumvent it.” That is actually easier for the Scottish Conservatives than winning an election. So that is why they are doing it.
Another thing that they are doing is what I call “slap a jack on it”—the idea that somehow, the Scottish people will learn to love the Conservatives if they see a whole load of projects with Union Jacks on, given by the largesse and generosity of the Great Britain and United Kingdom Parliament. Nothing will irritate the Scottish people more than seeing all that rubbish splattered about our country.
I will just finish with this. Aggressive Unionism is not working for them. I know that they have all these new figures in the Scotland Office. They have the new constitution unit. Surely, with all these great thinkers on the Union, someone must be able to turn round to the Government and say to them, “We’ve tried this. We tried undermining the powers of the Scottish Parliament. We tried ‘slap a jack on it’. We tried all these things to curtail Scottish democracy, and all that is happening is that support for independence is going up and up and up.” Now, it might just be me, but if you are doing the same thing again and again and it is not working for you, surely you should change it and do something different, to try and ensure that the Union case prevails. It is almost to our benefit that they are continuing with this type of aggressive Unionism, because what we have seen is a rise in support for independence. I give them this advice only because I know that they will never take it: what they are doing is ensuring the Union’s demise.
The day of Scotland being subject to rubbish like this rogue state UK Bill, with the stripping of our powers and the diminishing of our democracy, is a day too long. This issue will be critical in the next Scottish parliamentary election. They are going to get gubbed. There will be a demand from Scotland for independence, and it will be goodbye Westminster—and it cannot come soon enough.
Although the coronavirus pandemic has had devastating impacts across many areas of our society, it has been useful in highlighting what is needed to achieve success and stability in the government of our nations—a united and consistent approach, and leadership. Many times in the past few months the governance from Wales has been neither united nor consistent, nor has it demonstrated leadership. The Welsh Government have let down the people of Wales owing to their often slow, confusing and divided stance, and then had the audacity to turn the mirror on this House and say that the confusion was caused by the UK Government.
Amendment 33 would cause further division between our four nations and looks to divide our great Union completely. This is not a Bill about politics. It is not a Bill about who get to be the ones writing the cheques or taking the credit for things. This is an economic Bill that will allow more money to be spent in Wales for the benefit of our villages, towns, cities, businesses and residents. Covid has shown us the value of devolved nations working together as a united force, yet when provisions in the Bill allow for joint working and support that would benefit individuals across our United Kingdom, those on the other side of the House oppose it.
The amendments that have been tabled would prevent the Government from achieving their levelling-up agenda for the whole United Kingdom, as any Government spending decisions would potentially be held up by the devolved nations. Wales will not lose a single penny of EU funding when the transition period ends. If anything, this streamlined approach will ensure that together, we can tackle inequality and deprivation across the UK, with less money wasted on bureaucracy.
Not only does the Bill provide for greater unity and cohesion, but it gives unprecedented powers to all the devolved nations, with over 70 new policy areas previously held at EU level now coming directly to the devolved nations. Far from being a power grab, as Opposition Members are so keen to declare, the Bill offers greater support and funding to all parts of the United Kingdom. That is what this Bill should be about: directing funding and support to the right places to support jobs, businesses and livelihoods. Today’s amendments from the various Opposition parties do the opposite, and are more concerned with playing political games with the Union than supporting the needs of people in Wales, Scotland and Northern Ireland. We are here for our people.
Communities in Delyn and across north Wales will greatly benefit from the new powers that the Bill sets out. With subsidy control now being a reserved matter for the UK Government, the EU will no longer be in charge of taxpayers’ money, and instead, the UK Government will be able to invest in areas that need it most. In 2013, the Welsh Government closed Flint hospital in my constituency to reduce costs in the north Wales health board, which still sits in special measures five years later, leaving the residents of Flint having to travel on sporadic and failing public transport to other facilities to visit their loved ones. Had this Bill been in place at that time, could it have helped the people of Flint to retain their vital community infrastructure?
The Labour-led Welsh Government continue to fail the people of Wales in policy areas that are wholly devolved, such as education. Despite increases in the Welsh block grant, funding for schools is still at the same level as it was in 2006. We need a strong Wales in a strong United Kingdom. The UK Government have the financial capability to support the Welsh Government in delivering for the people of Wales, creating more jobs and improving infrastructure by upgrading the A55 to motorway standard and delivering an M4 relief road, which the Welsh Government have so far failed to do.
While Labour may claim to be the party of the Union and to support the devolved nations’ interests, this UK Government will invest directly in Wales and support Welsh communities with the clauses in the Bill, which the Labour party have spent the last few days doing everything they can to stop, denying additional powers to the Senedd and additional funding to the people of Wales. By leaving the EU, this democratically elected Government will be able to provide the support that our communities need—the new financial support system that will ensure that Wales and UK priorities are taken into account, and that there is not the focus that there was previously on the specific requirements of the EU. Decades of failed European priorities led to the people of Wales rejecting EU membership more than four years ago.
While Scottish nationalist party Members are ready to rejoin the EU at the drop of a hat, their entire position is to give the 70 powers that they are about to obtain straight back to the EU. They say that this Bill is destroying the Union. I might be misunderstanding their entire raison d’être, but if they believe that to be the case, I look forward to seeing them join us in the Lobby at each stage of the Bill to vote it through, because that would seem to accord with their greatest wish. The fact is that they oppose it because they know it does exactly the opposite. It enhances, it stabilises and it reinforces the Union of the United Kingdom, and I am proud to be a member of the Conservative and Unionist party supporting clauses 46 and 47 before the Committee today.
I want to be a bit parochial in my comments today because, for me, clauses 46 and 47 of this Bill are, ultimately about our communities. That is the core of this, and I want to talk about my communities today because, like many people who have spoken and contributed ahead of me, I have real problems in my communities, which can be resolved and dealt with, I hope, by the provisions in clause 46.
Let us look at the deprivation element and how we can use the investment angle to tackle deprivation. In my constituency, Tipton—a town many Members have heard me talk about time and again; many call it the forgotten city—is in the lowest 20th percentile of deprivation in this country. People in that community have felt abandoned and ignored—by successive Governments of every colour—for years and years. Yes, they have benefited from the funding that had come from the EU, and it is this Government’s commitment to ensure, through the shared prosperity fund, that those communities still have a lifeline and still have a way in which we can ensure that we can truly level them up.
The reason people sent me here and the reason they voted to leave the European Union was a simple one: it was that they felt this place spoke at them. They felt they had been ignored. They had seen their communities degraded, they had not seen the benefits lauded by those who wished us to remain in it and they felt that their communities had been let down because they felt they did not matter. That is how they had been left to feel. So this is about ensuring that this Government, as we leave the EU, can fulfil that pledge on a UK basis.
In my communities, I still have parents coming to me in tears because they fear for their child’s future because of where they come from. I have people saying to me, “Ah, when you’re from Tipton, the police will stop you because of the community you come from”. That is why this matters. That is why I am surprised to a degree by the opposition to this, because surely the betterment and empowerment of our communities is why all of us are here. It is absolutely the core fundamental principle of being Members of Parliament. I think as well of what we can do and of the potential of clause 46, and again I am going to talk about my own community, because that is why I am here. [Interruption.] Sorry, Mr Evans, I am looking at clause 46 in terms of rejecting the amendments, and clause 46 does provide us with such an opportunity across the UK.
I get the points that have been raised about devolution and I have heard the points made by Opposition Members, but I would say that the elephant in the room, which we have missed actually, is English devolution and how that squares with this. I think of the West Midlands Combined Authority. That is an example of devolution and of a devolved administration engaging with the UK Government, through our Mayor Andy Street. It has lobbied for investment in infrastructure and is lobbying the UK Government to fulfil their pledge to ensure that the areas that require those benefits or require such funding do get it. It is by a proactive approach that the fears that Members are trying to combat with these amendments can be allayed. Surely it is about a proactive approach.
I want to bring my remarks to a close because I am very conscious that other Members want to get in, so I will simply say this: I disagree entirely with those who say that this is a power grab. I reject the amendments. We have so much potential with this Bill, particularly with clause 46, to ensure that we can hold feet to the fire. We should engage and work together. I know that Opposition Members are probably thinking, wahey, a new Member with his lovely naive approach, but we need to have that. We really do. Sometimes that little bit of naivety, that little bit of pushing forward and thinking that, yes, we can talk and put our covers aside means that we can actually bring about change. If we do that, we will truly see the benefits of this Bill.
That will happen through engagement with the institutions. There is still a respect for devolution. As I have said before, I want kids in Tipton to learn about Rabbie Burns as much as anywhere else. I want them to understand the shared culture that we have as members of this Union of nations and understand the cultures of every part of this Union of nations. Ultimately, what this Bill comes down to is engagement with those institutions. We have seen it in England through our combined authorities and the work that they have done to bring in investment using a model that is very similar to the one proposed in this Bill. I support the Bill wholeheartedly.
Those powers have been used to improve the livelihoods of the Welsh people, our economy, our health and education system, local businesses and agriculture—the very fabric of Welsh life. Instead, this Government want to hollow out the rights of the Senedd—those rights and powers that protect Wales and all the standards and services that we cherish from the worst effects of this incompetent UK Government. Let us make no mistake: this is about political opportunism. It is about seeking to take spending powers from a Government who already have those powers and can already make those decisions. Is this not simply because the Conservatives do not like the Government that the people of Wales have voted for and are seeking to take away their democratic rights? This Bill dangles the prospect of increased financial assistance, but where is the detail? We keep hearing the words “levelling up”, but who here can point to the evidence of that so-called levelling up? This Government are a wrecking ball, and I am not prepared to accept this wrecking Bill to smash and grab devolved powers—to rob the Welsh people of a way of life.
Time and again, this Government have come up short. They block and they deflect; they buy themselves time with controversy to mask their inability to govern, to provide or to collaborate, which is what this Bill should be about.
How can the people of Wales—indeed, how can Welsh Members of Parliament across the House—accept what the UK Government are trying to sell and then look their constituents in the eye and say that this power grab will leave them better off? Knowing everything we do about this unscrupulous Government, I do not buy it, my constituents will not buy it, and plenty of the Government’s own Members of Parliament are not buying it. Even David Melding, the Welsh Conservatives’ shadow Counsel General in the Senedd, resigned over this, citing misgivings about the UK Government’s approach to devolved governance and this Bill.
The UK Government must think again. How far are they willing to threaten peace, erode co-operation and strip devolved Governments of their decision-making powers? And how far would they be prepared to accept lower standards of food and medicines and thrust them on the people of all four nations—all at the hands of just a few unscrupulous Government Ministers and unaccountable aides?
It is not just about food. Restrictions could cut across all devolved areas. For example, had these laws been in place when the UK Government bulk-bought substandard personal protective equipment earlier in the current health crisis, Wales would have had to accept their inferior products. What a mess.
Our NHS may be fair game for American private health firms that wish to operate in Wales. They may not currently operate in Wales under existing laws, but they may find that the door has opened up for them. Or how about the fact that in Wales we are proposing to ban nine single-use plastic products? In England, the number is only three, but under these laws that number will prevail. Do the Government even care?
The Bill should be about how the internal market works and how we work jointly together to agree standards. It should be a race to the top, not a race to the bottom. It is about Britain’s standing in the world, about smooth co-operation and collaboration, and about quality of life and our freedoms. Never have so many people been so vulnerable to the impulses, mistakes and downright ludicrous decisions of such an incompetent few. The people of Wales and the people of Cardiff North deserve better.
Let me speak specifically to clauses 46 and 47. When it comes to the EU structural funds, I am slightly confused, because when we were in the European Union, Scotland had six MEPs out of 751 and Wales had four MEPs out of 751. That does not sound to me like much of a say, compared with Scotland now having 49 Members in this place and Wales having 40. To be perfectly honest, I think that what we are proposing in the Bill gives Wales and Scotland’s elected representatives far more say over how the money is spent.
Getting back to this important point about political advice, and in the spirit of co-operation, I would say that I am proud of the Union. I am a Unionist. My Welsh grandfather fought for Britain in the second world war, and I love every nation in the United Kingdom, and that includes Scotland. I want Scotland to remain part of the United Kingdom, but I respect the fact that the hon. Member for Perth and North Perthshire (Pete Wishart) has a different view, and I respect him and all his people.
However, one of the hon. Gentleman’s colleagues, the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey), denigrated this country, entire and whole, on Monday, saying that we have a history to be ashamed of. He went back over the past 200 years and found different reasons why we should be ashamed of Great Britain and Northern Ireland at a time when we reflect upon the battle of Britain and how it was Scottish pilots, Ulster pilots, Welsh pilots and English pilots who made the most decisive intervention. The hon. Member for Kirkcaldy and Cowdenbeath says that we are a country of chancers and lawbreakers, but we should be proud of the fact that we made a decisive intervention in standing up to the most evil regime in modern history. The hon. Member for Perth and North Perthshire should reflect upon that.
Going back to clauses 46 and 47, I do not see a power grab. I see greater opportunities for the people of Scotland, Wales and Northern Ireland and also the people of England and the constituency that I represent, because we all have crazy examples of how the structural funds have been spent in the past. Let us come together as a House and frame the way that money is spent and invest it in our communities.
I am not surprised that the Labour party has taken a position that seems to be slightly contrary to supporting the Union, because we know that some Opposition Members see no problem in mocking St George’s flag. I found it interesting on Sunday night that a shadow Front Bencher was mocking new Conservative MPs for being proud of the Union flag and for having the Union flag in their backgrounds while they were speaking. I am as proud of the Union flag as I am of St George’s flag. I rest my case.
From the debates on this Bill, it would seem that everyone who once wore a wig and a gown, and many others who have never even read a law book, have suddenly become experts in international law. I make no such claim—I am just a humble divorce lawyer—but a lot of my lawyer colleagues on these Benches have asked me for my views. As a divorce barrister, I can say that it is through that prism that I look at the withdrawal agreement and this Bill. The simple fact is that the United Kingdom has divorced itself from the EU, and let us not pretend that it was a no-fault divorce. It was an abusive and exploitative relationship, and one which the United Kingdom just had to leave.
As a divorce lawyer, I am all too aware that bullying and unreasonable demands sometimes complicate the end of a relationship, and I know attempts at coercive control when I see them. The House legislated against domestic coercive control earlier this year. We are legislating this week and next week to prevent the EU’s attempt to coercively control the relationship within our family of nations in the United Kingdom.
As you will know, Mr Evans, it is famously said that a week is a long time in politics, but we forget at our peril the fact that this Parliament was elected and sits for one reason and one reason alone: to deliver Brexit. The British Parliament can make law. It can amend and repeal laws. It can make treaties, and it can unmake treaties. The legislation before us, including clauses 46 and 47, will cut away once and for all the dead hand of the EU from British sovereignty.
The present stance of the Opposition parties is just the latest, and perhaps the last, device aimed at delaying or diverting Brexit. It has to be seen as such. The European Union has repeatedly misread the British public. There will be no foreign borders within the United Kingdom. There will be no border down the Irish sea, separating our precious countries within this precious kingdom. If the EU so desperately wishes to have a hard border, let it construct one wherever it desires, but it will not be within our United Kingdom. The hard-won peace process in Northern Ireland just means too much to us. We will protect that peace and the Belfast agreement. There will be no hard border from us. The EU’s attempt to invoke the Good Friday agreement in order to coerce trade concessions is outrageous on so many levels. What an insult to the peace process and to us peace-loving citizens of the United Kingdom! The EU’s true colours in trade negotiations have been shown.
The EU has broken international commitments. Germany has broken international commitments. The Irish Republic has broken international commitments. My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) is right when she points out that international law is essentially a political construct—and, goodness me, the EU is very good at it.
Clauses 46 and 47 allow the UK to meet commitments that otherwise would be funded through the EU. They give the UK Government back the power to provide financial assistance for economic development anywhere in the UK. I cannot see how anybody would object to that. That power formerly sat with the EU, and I know who I would prefer to have it: the people who vote in this Chamber. The importance of this power has been demonstrated in UK-wide events such as emergency flood responses—we have heard about Storm Ciara—and the response to covid. However, people like the good people of Derbyshire Dales often get overlooked.
The dreadful flood in November 2019 along the River Derwent led to the loss of a life. The former high sheriff of Derbyshire, Annie Hall, died in those floods. The powers brought back from the EU under the Bill will enable more money to assist in that sort of area.
Clauses 46 and 47 will enable us to be freer to invest in economic development—for example, to produce the much-awaited bypass in Ashbourne in Derbyshire Dales. We will be able to invest economically at home as we will it. These powers are totally in line with the Conservative Government’s manifesto commitment to level up the regions, from Matlock to Moffat, from the Menai bridge to Moy. We are one Union. There are good British citizens at the moment all around the UK who are in despair at the opposition to this Bill. They want their country back and their powers back. They want the UK to protect their markets—that means all of them—and to bargain hard with the EU. These clauses bring powers home. They bring our sovereignty home. We must back the Bill.
On Monday, Labour once again sided with the European Union rather than the British people, and rather than backing the people that the party once considered its core voters, who rejected it in droves in December. Labour failed to prioritise the structural integrity of the UK, and instead advocated giving away more control to Brussels. Thankfully, we on this side of the House were able to ensure that the Bill was given its Second Reading.
This week the Labour party voted against the Bill, which will ensure unfettered trading access within the United Kingdom. A party that is supposedly pro-Union voted to risk our ability to trade freely throughout the UK. This is a strange new world, although by this point we are used to the Opposition having a totally incomprehensible policy on Brexit. They would instead give the European Union a free hand, allowing it to threaten us and negotiate in bad faith, and they think we should do nothing at all.
I have been reading a book this week—amazing, I know. There will be colleagues here who are not convinced that I read books, but I do. It is called “Beyond the Red Wall” and is by a former Labour strategist, Deborah Mattinson. It highlights how the feeling of patriotism and pride felt by residents in my community and the importance of UK sovereignty, and specifically the control of borders, are defining problems that mean that voters in my part of the world do not trust the Labour party any more. It seems from this week that Labour has learned absolutely nothing from its crushing defeat in December.
It is quite right that this Bill ensures that the people and businesses of Northern Ireland cannot become the political football that the EU would like them to be. If anything could serve to strengthen the feelings of my constituents in Mansfield about wanting to leave the bureaucratic and self-serving institution that is the European Union—bearing in mind that they voted 71% to leave back in 2016—then this is surely it. It must be clear to everybody in this place that the withdrawal agreement rests on reasonable interpretations of what is an acceptable outcome for both sides, and nobody could reasonably suggest that carving up the internal market of the United Kingdom in the way that has been suggested is reasonable.
My constituents have been contacting me this week to express their overwhelming support for the Prime Minister. While the media focus on negative commentary from here in the Westminster bubble, my constituents have been overwhelmingly supportive of the fact that he is putting our best interests as a country first and doing what needs to be done to deliver on his promises. He has my full support in doing that.
I turn to the amendments, which focus on the relationship between the UK and devolved Governments. Throughout today’s debate, we have heard a number of times from the Opposition Benches about this nonsensical idea of a supposed power grab. It is simply wrong. The powers that are currently in the control of the European Union are coming back to the United Kingdom. This is no power grab; it is what Brexit is all about. It is about bringing those powers closer to home, here in the United Kingdom. As my hon. Friend the Member for Moray (Douglas Ross) exposed in the House so effectively a few weeks ago, nobody can actually name a power that is being grabbed from the devolved nations. Those powers do not exist.
This is what my constituents voted for: a strong internal market, which provides an opportunity for the UK Government to invest in all parts of the United Kingdom, and a strong United Kingdom. By tabling these amendments to clauses 46 and 47, and supporting rejoining the European Union, the SNP and Plaid Cymru have become the only nationalist political parties in the world that I have ever heard of that would prefer powers to be held in a different time zone far away from their own country. It is frankly nonsensical.
Of course, the UK Government already invest directly in projects in Scotland; that is not new. The fact that the UK Government are once again committing to funding projects through the shared prosperity fund should be welcomed by everybody, as it has great potential for all corners of the United Kingdom. As my hon. Friend the Member for Ipswich (Tom Hunt) noted, Opposition Members might invest their energies in constructive decision making in this place, using the powers that we hold here and the platform that they have in this House to discuss where that money might best be spent.
I will draw my remarks to a conclusion. I look forward to voting once again for what my constituents want: to get Brexit done and deliver a prosperous future for our great country as a whole United Kingdom. As this draws to an end and we approach 31 December, this is our opportunity to push through exactly what we promised to do in that election and deliver on Brexit. The Bill has my full support.
“By protecting our internal market, the Union and its people will be stronger than ever before.”
I fail to see how that will actually be the case. In fact, as colleagues across the House have said, this is a power grab, disguised as a Bill. Wales’s Counsel General has said, on behalf of the Welsh Government, that
“the UK Government plans to sacrifice the future of the union by stealing powers from devolved administrations. This bill is an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland”.
I wholeheartedly agree.
It is clear that the Bill is a weak attempt to rip up the devolution settlements that are so vital to local communities such as mine in Pontypridd in south Wales. Devolution is vital for those people to have a voice on the issues that matter most to them.
The cherry on top of the world’s worst cake is that the UK Government did not even bother to consult the Welsh Government on the Bill. We are told that the Welsh Government only saw a copy of the Bill at 8 pm the day before it was published—an absolute disgrace. I would consider myself a creative person, but it is a stretch even for me to see how the UK Government can say in good faith that the Bill aims to strengthen the Union. At a time when co-operation between our nations has never been more important, I am frankly flabbergasted by the Government’s shameless attempt to squeeze power and undermine our devolved nations. It is vital that when the UK leaves the EU, we have a system in place that ensures that standards are maintained across all four countries, but there are ways to do that, which do not undermine our devolved Administrations. Yet, as we hear in the media today and in the breaking news just now, the Government are preparing to undertake yet another U-turn. I have lost count of the number of U-turns we have seen in recent months, but an additional parliamentary vote on breaking the law will not make the problem go away.
The Bill and the UK Government are making us an international laughing stock. What happened to the Government’s oven-ready Brexit deal? The microwave is waiting, but it is empty. Not only does the Bill mean that the UK Government will have the power to overrule the Welsh Government and centralise power in the hands of a serially incompetent Tory Government in 10 Downing Street, but it will make it harder for the Welsh Government to legislate on issues that matter to people locally in my constituency of Pontypridd. I have had hundreds of emails from constituents concerned about the rolling back of animal welfare and food standards across our country. Does the Minister agree that the Bill, as it stands, could lead to a race to the bottom in the standards of goods produced in the UK?
The Bill will also make it harder for the devolved Administrations to legislate on climate issues, and, as my hon. Friend the Member for Cardiff North (Anna McMorrin) has already stated, the Welsh Government are currently proposing a ban on nine different single-use plastic items in Wales—actually making a difference in the climate emergency. By contrast, the UK Government are proposing just three. If the Bill passes, the mutual recognition principle could mean that Wales would not be able to legislate to ban the sale of the other six items, even though there is clearly high demand and we are in the middle of a climate emergency. The Welsh Government are taking that seriously, but the Bill and the Westminster Tory Government are deliberately making their work harder.
Ultimately, the Bill risks the integrity of the Union and undermines devolution at every opportunity. The Government are showing complete contempt for the people of Wales, Scotland and Northern Ireland. I urge Members on the Benches opposite, especially those who represent constituencies in our devolved nations, to ensure that spending provided by the UK Government actually comes forward in the first place and then, when it is in a devolved policy area, will have to be approved by the UK Parliament or allocated by the devolved Administrations. We must stand up for devolution and we must respect the devolution deal. Diolch.
I have been here for the guts of four hours during this debate, which has been going for four hours and 45 minutes, and at times I felt I had entered a parallel universe. For Government Members, this Bill is an important and necessary step: it is a safety net, it respects the internal market of the UK, and it is something prudent and expedient to do in the circumstances in which we find ourselves in the current negotiations. From Opposition Members I hear that it is the most egregious and outrageous power grab, driving a coach and horses through everywhere—England, Scotland and Wales. This coach and horses is very tired. Yet I find it difficult to get Members on both sides to focus on some of the fundamentals that affect us in Northern Ireland.
I have heard Members from across the Chamber say in all sincerity that they believe there are elements in the Bill that protect the single market of the United Kingdom, that talk about the customs union of the UK. Let us be under no illusion: the single market of the UK, as we know it, was gifted away at the time this House passed the withdrawal agreement and the associated Northern Ireland protocol. Let us reflect on the financial assistance provisions in this Bill and clause 46 in particular. When I raise those with the Government, they say clearly that this is a power that extends throughout the UK. That in itself is true, but there is no recognition in this debate, save in the contribution from my right hon. Friend the Member for East Antrim (Sammy Wilson), that that unrestricted power to offer financial assistance is hugely curtailed. It is curtailed by article 10 of the Northern Ireland protocol associated with the withdrawal agreement.
Article 10 says that we in Northern Ireland remain under the single market regime of the EU; that the state aid rules, no matter what this financial assistance provision says, will apply to Northern Ireland; and that any decision on financial assistance from this Government to businesses in Northern Ireland that fall within the EU state aid rules will not only be subject to challenge by EU member states, but will bring with it the full jurisdiction of the European Court of Justice. I struggle when I hear Members in this House say that this Bill protects the integrity of the UK single market—it does not. That is why I ask that people sincerely look at amendment 22, because it would allow the people of Northern Ireland to benefit and would mean that the provisions on direct and indirect discrimination actually mean something to businesses in Northern Ireland. We will spend a lot of time on Monday considering the things we can do that will appropriately protect businesses in Northern Ireland and enable them to trade with their biggest market in Great Britain, but we also need Members to consider the implications of the regime passed at the start of this year, the restrictions that there will be on trade from GB to NI, and the costs associated with the regimes in place through GB and NI. I know that those negotiations have not concluded and that we do not have a full picture of how that will be, but here we are, three and a half months from the end of the transition period, and businesses in Northern Ireland have no clarity as to how they are going to trade with their main market.
I struggle fundamentally with the arguments advanced by some Members about the Good Friday agreement. I listened very carefully to the contributions of the hon. Members for Foyle (Colum Eastwood) and for Belfast South (Claire Hanna), neither of whom are here now, and I make no criticism of that at this stage. However, throughout the course of Brexit, there have been claims ad nauseam—in this Chamber, in the Northern Ireland political context, in the United States of America, which has been referred to today, and elsewhere—that taking sovereign decisions within a political entity is in some way injurious to peace in Northern Ireland. That is wrong.
The arguments advanced are fundamentally wrong. They never point to who is going to engage in violence. They never condemn the threat of violence that would frustrate a legitimate political decision being made—they never reach that far. They never point to which part of the Belfast agreement they take issue with. They say, “This drives a coach and horses through the Belfast agreement”: you will hear it and read it in Hansard day in, day out. I say, show me the clause—show me the provision that it breaches. When we ask that question, then we get to the next stage—“Ah, but it is the spirit of the Belfast agreement that you are interfering with.”
I caution Members, particularly those who are not from Northern Ireland and who want to be saying and doing the right thing, and advocating the right position, but perhaps do not have the full picture: when you hear that argument related to European Union matters and to Brexit issues in this Bill, you are hearing it through a one-dimensional prism. I am not saying that nationalists are not entitled to their nationalism just as I am entitled to my Unionism—we are all entitled to our perspectives—but they present this injury to the Belfast agreement in a way that suggests it is a one-dimensional document. They suggest that the only concern within the fragility of peace in Northern Ireland is the satisfaction of those who look to Dublin—those who have an aspiration of unity in the island of Ireland—without reflecting on the fact that the document itself is a balance that brings communities together and allows them to co-operate with one another. And that has to include Unionism too. It has to include Unionists in Northern Ireland who look to London and believe that the Union is best for us all. For as long as we hear and listen to those arguments, never proven, and for as long as we say, “I’m sorry, we can’t make a legitimate political decision because of the fear—the fantasy—of something that may go wrong in future”, we see this only through the prism of one perspective, and we will end up making the wrong choice.
I say that not to attack Members, who are entitled to their own views, but to say, “Careful, and look a bit beyond some of the arguments.” This Bill does not protect the internal market of the United Kingdom. It is a very good move for those who are concerned about ECJ application and state aid rules affecting businesses in GB. That is the intended purpose of clause 46 and some of the other clauses dealing with state aid. There is nothing in clause 46 or clause 47 without our amendment, or indeed anything, that turns back the clock on the agreements around state aid rules of the European Union applying to Northern Ireland, and nor will there be. That is not an aspiration of the Government. The Government’s perspective is that those issues have been resolved.
In speaking to amendment 22, which I do not believe will be pushed to a vote, I hope that Members who are present this evening and respectfully listening to what I have to say will be here on Monday, when we consider and thoughtfully focus on the Northern Ireland aspects of trade from GB to NI and NI to GB. Those are two different propositions because of the protocol. They are fundamentally different. When we talk about access to the UK’s single market, we are only talking about selling to GB, not buying from it.
I ask that, over the next number of days, Members reflect on some of those issues, and that when we meet on Monday to consider the Northern Ireland implications of the Bill and the wider underpinning agreements that already exist and are not intended to change, they reflect on the amendments that we put forward and proceed on that basis.
The seat I represent is in west London, but I know that many of my constituents care deeply about the Union of the four nations of the UK, the UK’s reputation, and the credibility of the UK and the rule of law. The debate is not about whether people support or oppose Brexit. I voted against triggering article 50 back in 2017, because I knew that it would take time to sort out the nuts and bolts of Brexit and that we had a long way to go, but we now have only three months until we leave the EU single market. As we can see from the mess in this Bill, there is still an awful long way to go. That hits business, it hits people and it hits our nations.
The debate is, however, about how our Government approach devolution and our future relations with the devolved nations, as well as our current and future trade partners. That approach is, in my view, deeply flawed. The Bill is an act of self-destruction in the middle of a destructive pandemic. In the clauses we are discussing today, we see powers and money pulled away from the devolved nations while we are all caught up in a race to the bottom on standards.
The Government’s White Paper claims that they will legislate in a way that “respects the devolution settlement”. However, as many have already said in the debate, the Bill does the exact opposite. With due respect to the hon. Member for Belfast East (Gavin Robinson), I am sorry—I disagree. The Bill leads to a significant recentralisation of power away from the devolved Administrations and back to Whitehall, undermining so many of the very many benefits and the core principles of devolution.
“A Minister of the Crown may, out of money provided by Parliament, provide financial assistance to any person… or in connection with, any of the following purposes”.
And so it goes on. The power is all in a Minister. That is taking power away from the devolved Governments.
We know that this is a Government who enjoy hoarding power and consistently ignore devolved government, whether it is local councils, city hall or devolved Governments. “Centralisation, centralisation, centralisation” is the mantra from this Government, and it has been since 2010.
A central plank of our devolution settlement has been the right of devolved areas to set their own priorities, yet the Bill undermines that by giving Ministers the power to provide funding over a wide range of issues, from culture to sport and economic development. Many voters in red wall seats changed their allegiance at the election, and according to the polling, many of them did so because they felt divorced from Westminster and Whitehall. That is true of people in the devolved countries. In Scotland and Northern Ireland, they voted strongly away from this Government and also away from Brexit in the referendum.
These powers will only make people in the UK feel further divorced from decision making that affects their lives, on issues such as culture, sport and economic development. The explanatory notes to the Bill even accept that, saying that these powers
“fall within wholly or partly devolved areas”.
Members need not take my word for it. The Welsh Government have called this Bill
“an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions.”
Finally, I want to address state aid. We have witnessed a rather interesting piece of spin from the Government and their supporters. One of the central aims of the Bill—indeed, one of the central reasons why the Government are embarking on breaking international law—is to overrule the provisions on state aid rules that apply in Northern Ireland. Let us not forget that the Government agreed to those provisions in their so-called oven-ready deal.
What is even more concerning is that, while the UK was an EU member, successive Conservative Governments had an almost allergic attitude to state aid. In 2017, France spent almost twice as much as the UK on state aid, and Germany spent a staggering four times as much, so why the sudden focus on state aid? The Conservatives have never been very interested in it, to the detriment of UK businesses, innovation and enterprise. The Government know that, if they have genuine and sincere problems with state aid, that is exactly what the Joint Committee exists for. Once again, we see the Government using a sledgehammer to crack a nut.
Frankly, the buck should stop with the Prime Minister. He knows the damage that this Bill would do to the Union, to the UK’s international reputation and to the rule of law. This Bill sets up confrontation with the EU—some 40% of our international trade is with EU countries— and it sets up a stand-off with the courts. It is an attack on the rule of law, and it undermines the UK’s commitment to the rules-based international order.
We are witnessing in this Bill a smash and grab on Scotland’s powers. Far from the much-touted “powerhouse Parliament”, we have clause 48, a clause that sees the UK Government reserving the devolved policy of state aid, and clause 47, which sees powers given to the UK Ministers in devolved areas. [Interruption.] I will say that again, because the hon. Member for Stoke-on-Trent North (Jonathan Gullis) obviously does not understand it—I know that because I saw him questioning people earlier. Clause 46 sees powers given to UK Ministers in devolved areas—I will speak slowly so he understands—such as infrastructure, economic development, public spending, culture, sport, education and training. The list goes on.
What we are seeing in this legislation is an underhand, sleekit sleight of hand whereby Scots, who for decades have rejected the Tories, are being put in their box, with powers stripped from their Parliament—a Parliament for which the case was hard fought, and won in the teeth of vociferous Tory opposition—and taken back to Westminster. We all know that the Scottish Parliament was established for Scots to have some say in their own affairs; to allow Scotland to do things differently, instead of every single aspect of our lives being governed by a Tory Government who have won the support of few Scots and the hearts of even fewer.
After 21 years, the Tories have run out of patience with us pesky Scots and they are using legislative procedures, hellbent on bringing to heel the nation that continues to reject them. In the Bill, Scotland will now be denied the choice to use her Parliament to do things differently—to do things according to our values, according to our beliefs. The very essence of devolution is being undermined, diluted and constrained, and in the process opposition to this arrogant madness has united whole swathes of Scottish society—our people, civic society, our educational institutions, our farming communities and our trade unions.
We in Scotland rejected these measures in the Scottish Parliament last month, overwhelmingly. Tory Members do not seem to understand that for Scotland’s Parliament not to have control over its own spending priorities is an affront to the democratic will of the sovereign people of Scotland.
The fact that the plans are set out in these clauses means that democratically elected MSPs and members of the Scottish Government can be overlooked, bypassed and marginalised when it comes to spending decisions, and the Bill will jeopardise the current Barnett funding formula. For the Tories, though, it will certainly solve the problem identified by Labour’s Baron Foulkes of Cumnock, who—I paraphrase—said, “Scotland is doing things better than England” and
“they are doing it deliberately.”
This mean-spirited, grubby, underhand, squalid, sweaty-handed power grab is an attempt to stop just that—Scotland doing things better, and doing them better deliberately. In short, the Bill grabs power from the Scottish Parliament. In answer to the question of what powers will be lost, the Bill could even allow Westminster to interfere on devolved taxation powers, threatening schemes such as the small business bonus.
The Sewel convention says that the UK Parliament would “not normally” legislate in respect of devolved matters without the consent of the devolved Parliaments, and the devolution settlement is clear: what is not reserved is devolved. For this Tory Government to undermine the devolution settlement by refusing to recognise the correct vehicle for delivery for such programmes designed to replace EU funding is to ride a coach and horses through it. Spending decisions on key infrastructure projects, such as social objectives, will be taken out of the hands of the Scottish Parliament and could be completely out of step with the social and public policy of Scotland’s elected Government, excluding important players in Scotland’s civic society.
What if the UK Government impose on Scotland a project that goes against the democratic wishes or priorities of the Scottish Parliament? What will happen? How will such disputes be resolved? I think we know where the power grab takes us, in answer to that question. I can barely believe the blatant insult of this UK Government trying to portray the dismantling of the powers of the Scottish Parliament as a power surge. They should get a grip of themselves. Who on earth do they think that they are fooling? Scots are not daft. We can see the bluff and the bluster and the grubby way that this Government do politics. We have waited too long for our own Parliament to see it dismantled by a party that has been rejected by Scotland again and again and, for the record, has been rejected because it simply does not understand Scotland.
“Westminster will continue to be responsible for those areas of policy best run on a United Kingdom basis.”
It goes on:
“By preserving the integrity of the United Kingdom, the Union secures for its people participation in an economic unit, which benefits business, provides access to wider markets and investment and increases prosperity to all.”
What is wrong with that?
There is a dawning realisation that up with this we in Scotland need not put. The UK Government know that they will never get legislative consent from the Scottish Parliament for this Bill. If the Tories want to win Scotland, if they want to run Scotland, then they really should try winning an election. The grubby tactics being used in this Bill to emasculate our national Parliament will simply not work. The more they try to constrain Scotland’s democratic rights, the more the ties that bind us to the rest of the UK loosen, so keep talking. The Scottish people are sovereign. Clauses 46 and 47 are merely footnotes on the journey to Scotland’s independence. All this Government are doing with their incompetence and bluster is moving us along our way to independence. They are overplaying their hand and putting the final nails in the Unionist coffin. For that at least, Scotland can be grateful.
As we know, the Prime Minister negotiated and signed an agreement with the EU and, just a few months later, is saying that it contains serious problems that could break up our country. Instead of working with the EU to try to find a way forward, this Government are introducing legislation that knowingly and openly breaks international law and will frustrate the process of getting a deal.
The UK’s long-standing reputation has been built on our values and the fact that we have long stood up for the rule of law, and this Prime Minister and Government want to risk all that and throw it away by disregarding an international treaty that the Prime Minister personally negotiated and signed up to. That is not just wrong but completely incompetent, and his behaviour will do us no favours around the world and will not help us to negotiate new trade deals with other countries. We have only to listen to the comments from the US Democrats in the past few days to know that.
It is clear that there needs to be a strong internal market within the UK to enable businesses across all our four nations of the UK to trade freely, which will be vital for the economy and shared prosperity.
In Wales, the Welsh Government have, as we have heard, stated that the Bill is an attack on democracy and an affront to the people of Wales, not to mention Scotland and Northern Ireland, who have voted in favour of devolution on numerous occasions. As we have heard, one of the Conservatives’ long-standing Senedd Members has resigned as shadow Counsel General over the Bill, commenting:
“The publication today of the Internal Market Bill has done nothing to lessen my anxieties about the dangers facing our 313-year-old Union. Indeed they have been gravely aggravated by the decisions made in the last few days by the Prime Minister.”
That is from a well-respected Member in the Welsh Senedd, and of course we have heard very clear concerns from three former Conservative Prime Ministers and two former Labour ones—in fact, from all living Prime Ministers.
One of the foundations of the devolution delivered by the Labour Government for Wales and Scotland in 1997 and developed over the past 20 years has been the right of devolved nations to set their own priorities on key spending areas. The explanatory notes to the Bill state:
“Part 6 grants power to a UK Minister of the Crown to provide funding across…economic development, infrastructure, culture, sporting activities, and international educational and training activities and exchanges.”
Of course, I welcome any additional funding or assistance that would benefit Wales and my constituents. However, it is not for the UK Government to play Father Christmas and pull those pet projects out of the air. Any additional funding should be delivered by devolved Governments in line with what has been developed over the past 20 years, in a strategic way involving local authorities and local stakeholders. If the Government have their way, spending decisions previously made in Edinburgh, Cardiff and Belfast will now be made in London, and that flies in the face of devolution.
The Government argue that the Bill strengthens the Union on the grounds that it will give the UK Government new powers to spend across all four nations, but I believe that it will have exactly the opposite effect. A Government official reportedly told Politico that the spending powers would be used sparingly but demonstrated that the
“devolve and forget approach of the Blair/Brown years”
was over. However, the Bill poses a risk that the UK Government will now be able to undermine the spending decisions and policy priorities of devolved Administrations.
It is no accident that we have yet to receive clarity on the UK shared prosperity fund, after almost two years of waiting. The Government stated that the consultation should have been held in 2018 and that Wales would not lose a penny compared with what we have received until now from the UK structural funds. That funding was based on genuine need, not on patronage or favour. It is essential that any funding Wales now receives is allocated in a similar way, involving the Welsh Government and local authorities in Wales in determining and delivering on local priorities.
On Second Reading, I supported the reasoned amendment tabled by my hon. and right hon. Friends declining to give the Bill a Second Reading, and I voted against the Bill. I will continue to oppose the Bill until the Prime Minister and the Government reconsider and come up with a way to ensure that the devolved settlement is preserved and the Union is intact.
The Government must negotiate in good faith with the EU and devolved nations, instead of creating division and discord that puts getting a deal at risk. So my message to the Prime Minister is this: please get back around the table and negotiate properly and stop posturing. We do not have time for distractions like this when a deal is on the line. We need leadership from the Prime Minister, not theatrics.
I oppose the Opposition amendments to clauses 46 and 47, although I hear the reasoned speech from my hon. Friend the Member for Belfast East (Gavin Robinson). It is essential that the UK Government have powers to provide financial assistance for economic development throughout the UK, as has been vital during coronavirus and our recovery from the pandemic. The existing clauses will help the Government to deliver on our commitments to replace EU funding programmes, which will include delivering a shared prosperity fund to replace the bureaucratic EU structural funds.
The clauses are consistent with the Government’s levelling-up agenda throughout the whole UK. They better position England, Ireland, Scotland and Wales to take advantage of opportunities for future growth and develop our place in the world as a united and independent nation. Our nations—all of them—require investment in and support for our communities, businesses, infrastructure, sport, education and training, among many other policy areas. The Bill will create new opportunities for the Government to do that.
If we strengthen our internal market, our nations’ economies will be protected. Take Scotland, for example: 60% of Scottish exports, worth more than £50 billion per year, go to other parts of the United Kingdom. The Bill will mean more powers for all parts of the United Kingdom and ensure that businesses can continue to trade across our country, avoiding new burdens and barriers, protecting jobs and supporting our recovery from coronavirus.
The British public want us to get on with delivering Brexit, and it is our responsibility to do so.
Faced with a choice of supporting our Union or the European Union, I know whose side I am on; do you?
This debate today! I remember sitting in the theatre a few years ago—do you remember the theatre?—and there was a couple in front of me who had had a terrible row. The woman turned to the man and said, just as the curtain was coming up, “The worst of it is that you’re so bloody ‘paytronising’.” He kissed her on the forehead and said, “It’s ‘patronising’, dear.” If I am honest, I feel we have all patronised each other to death today. Actually, there are lots of areas where there could be some common ground, if we chose to try to find it, which is what I shall try to do in my speech.
Let me start with principles, because they should inform all the legislation that we support. The first principle must surely be—I say this as a proud socialist; I have never run away from the word “socialist”, even when Tony, whom I much admired, was leader of the Labour party—that any country performs best when it is most equal. When it is most equal, a country is happier, more successful economically and a better country to live in.
Secondly, decisions about policies and, for that matter, about funding are best made closest to the people that they most directly affect. I was a Minister for around 20 minutes, and my experience was that it is all very well coming up with all these grand ideas, sitting in an office in Westminster, but if they cannot be delivered because they do not fit alongside other policies, is just a waste of time—someone would just be wasting their own energy dreaming up legislation, and although they might buff their fingernails at the end of the day, they would not have actually got their hands dirty and achieved anything.
Thirdly, no single policy area stands alone. I have tried to do a lot of work on acquired brain injury over the past few years; it is an issue that affects every single Government Department—the Ministry of Defence, the Department for Work and Pensions, the Department of Health and Social Care, the Ministry of Justice and so many others, including the Treasury, of course. My experience suggests that unless we manage to devise policies that fit with other policies, we are not going to achieve what we could possibly achieve. Perhaps that is just because I believe that we achieve far more by our common endeavour than we do by going it alone.
All that is why I am afraid to say to the people with whom I am often in the same Lobby, but not so much this evening, that I believe in the Union. I believe that Wales is stronger in the Union and—I hate to say this to the people I disagree with in many ways—I am also still a Unionist when it comes to the European Union. I know that I am not meant to raise that decision any more, and that that battle is meant to be done, but—[Interruption.] Yes, I did not get the memo, but I will doubtless be sent it later.
I say all these things because I represent one of the poorest constituencies in the UK, one of the poorest constituencies in Wales and one of the poorest constituencies in the whole European Union. I was proud when we kept on getting structural funds in Wales. One of the things that I thought were clever about structural funds was that the funding had to be matched. It always had to sit alongside decisions made locally and money that was raised locally, so there was a degree of devolved decision in there.
I hate to say this, Dame Rosie, but I have a list of things that the Rhondda needs. We need to finish the Rhondda Fach relief road. I would like to improve the railway so that people can get into work much more quickly, with bigger trains and proper toilets. I would like to unblock Stag Square in Treorchy and, for that matter, the roundabout outside Asda. I would like to rebuild the powerhouse in Tonypandy, which is falling apart. I would like proper cycle routes up both valleys. I would like a fully funded youth service: unfortunately, the service has been cut in pretty much every part of the UK over the past 10 years.
This year has been—there is a four-letter word for it, but I am not allowed to use it—not very good in the Rhondda. We have had terrible flooding. A quarter of the floods in the whole UK were in my constituency, and my hon. Friend the Member for Pontypridd (Alex Davies-Jones) has experienced, something similar. One of the culverts will cost £300,000 to be mended, and about £140 million-worth of work needs to be done to ensure that people’s homes are safe. I do not think that that should be met within the normal envelope of the Barnett formula, because I think that is part of us being a Union of four nations.
I have repeatedly asked the Prime Minister for that money, and the Prime Minister has actually said at the Dispatch Box that we will get it, but it has not come and, of course, that makes me worried, because if Rhondda Cynon Taff has to do that work and has to find the money from elsewhere, there is a real danger that lots of other budgets will be slashed to the bone, and, if I am honest, things are already pretty threadbare—if I am not mixing my metaphors.
The one issue that I have had rows with the former Welsh Secretary about—he is not here—is that Wales and many mining constituencies across the UK have former coal tips. They are the responsibility of the Coal Authority and, of course, the problems that stem from them today predate devolution, because nearly all of them were closed long before devolution came to pass—certainly all the ones in the Rhondda. I gather that the Coal Authority, which is an agency of the Westminster Government under the Department for Business, Energy and Industrial Strategy, has produced a new report, or is in the process of doing so, which is likely to suggest that many of those tips need a lot of investment to be made safe.
Just like those in Nottingham or Durham or wherever else in the UK, including in Scotland for that matter, I think that the coal tips in the Rhondda are a UK responsibility—a moral responsibility, even if not a legal responsibility—and we need to ensure that they are safe. A tip in Tylorstown collapsed in the floods earlier this year, and 60,000 tonnes of material needs to be moved, which is a phenomenal job of work for a relatively small local authority to undertake. It is doing it because it has to be done, otherwise there is a real danger of further slippage if there is much more serious flooding later this year. However, we have still not had the guarantee from the Westminster Government that the £1.2 million, which would seem a tiny amount to most people, will come our way.
Now, I actually think that clause 46 is both unnecessary and impotent. It is unnecessary because the Government could do every single thing in clause 46 without it. I do not think it is needed at all, but, equally importantly, I think it is impotent. Let us say for the sake of argument that the Government decided, having heard my pleas for a youth service in the Rhondda and to do up the powerhouse in Tonypandy, that they were going to spend money on a brand-new youth service facility in Tonypandy in the powerhouse. “Hurrah!”, I would say. They would not be able to do it without the local authority agreeing to it because they would have to get planning permission and work with the transport facilities. They would have to make sure that people were available to work in it and that it was sustainable, so it would be impossible to implement that simply on the basis of clause 46. I say gently to some of my colleagues that I think they have slightly over-egged the argument that suddenly Westminster will descend and plant things in constituencies, because I do not think it will be able to. I think this is very poorly drafted legislation, as it happens.
There would be a better process available. We have been waiting for a very long time for the shared prosperity fund structure to be announced. That should have been here long before we got to this point. I have a terrible feeling that what the Government will introduce is something that will either try to bypass the Welsh Government or the Scottish Government, or will try to set up a competition between different local authorities. I do not think that that will mean that the money goes where it is most needed and where it can be most effective. I urge the Government to think hard about introducing a shared prosperity fund and the outline of that as soon as possible.
Of course, money should be spent in relation to need—it is a very old principle for all of us Opposition Members: from each according to his ability, to each according to his or her need—and that is all I really want. I am never going to say no to money for the Rhondda. I will constantly ask for it and I am very hopeful that the Minister, when she answers, is going to say, “Yes, Chris—or yes, Dame Rosie, Chris can have his money for the flooding, the tips and the youth service.” Incidentally, as chair of the Rhondda arts festival in Treorchy, RAFT, I declare my interest—I have no financial interest; I am not remunerated for it. We would quite like some money for that as well.
This debate is focused on part 6, and I believe that the commitments that we are making demonstrate the seriousness of the Government’s intent to deliver on the promises of the Vote Leave campaign. We will match what happened with the EU structural funds in each home nation through the new UK shared prosperity fund, and we will continue to co-operate across the UK to overcome coronavirus together. Coronavirus has demonstrated the true value of the Union, with the devolved Governments working together with Westminster to help people and businesses through the pandemic. The Bill will facilitate more of that joint working to the benefit of everyone across the UK.
We have heard a lot today and yesterday about power grabs. If there is a power grab, it is from Brussels, because having won our independence referendum, we are quite rightly restoring the powers that used to reside in this place. The UK’s internal market is centuries old and has never needed to be recognised in statute in this way before. However, that is necessary now to provide legal certainty for businesses and consumers across all four home nations as we exit the internal market of the EU.
This Bill and these clauses are needed to protect jobs and prosperity across the United Kingdom and to prevent new burdens and new barriers restricting the historical unfettered right to trade. In fact, it is SNP Members who are trying to grab more and new powers for the Scottish Government through these amendments. At the time of the Scotland Act 1998, which created the Scottish Parliament, it was never envisaged that the devolved Assemblies would be endowed with the powers that they now seek. All the talk we have heard of the Sewel convention and the rest of it is, therefore, anachronistic, because the convention was after the fact of our being in the internal market. We are restoring the situation that existed prior to the EU. These powers were never promised to Scotland at the time, and we have heard many arguments about that this evening. I understand why SNP Members seek these powers—they know they are a necessary part of independence—but I remind them that the Scottish people have already had their say on that. Indeed, I think that this is once again an attempt by the SNP, regrettably, to disrupt the Bills with which the Government seek to legislate in the national interest and to make this debate about independence, which is a pity.
To wrap up, I will quote my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), who spoke earlier: when did devolution become about stopping this place from acting in the best interests of the whole UK? This is the right place. Westminster has Scottish, Welsh and Northern Irish representation in it. This is the right forum for these discussions and these issues. I commend the clauses to the Committee, and urge hon. Members to reject the Opposition amendments this evening.
For those who have suggested otherwise, we are a party of the Union; we simply think that the best way of protecting the Union is by respecting the devolution settlement. That is what our amendments seek to do, by correcting two fundamental flaws in the Bill as drafted: the way that it gives the Government powers to dish out financial assistance in whatever way they like, with no policy framework to provide accountability, and the way that it gives powers to the centre at the expense of the devolved Administrations, while marginalising local authorities and local communities in England, too.
Clause 46 sets out the powers being given to Ministers for the disbursement of funds in an extraordinary range of areas—economic development; sports and cultural activities, projects, events and infrastructure; education and training activities and infrastructure; capital investment in water, electricity, gas, telecommunications, sewerage, railways, roads, transport, health, prisons, courts and housing. These are massive potential spending powers, yet we have no details of how they will be exercised, allowing Ministers to award financial assistance in any way, and to anyone, they like.
These powers go further than replacing EU structural funds, but the need to replace them was the starting point for this part of the Bill. EU structural funds were of huge importance to many parts of the UK, acting as a redistributive mechanism and taking from the rich and giving to the poor, based on the principle of levelling up—long before the Government had ever stumbled across the idea, and forgetting the role of their predecessors in making sure that so many parts of our country were left behind. Structural funds led to real social and economic development, improving opportunities in areas that were previously held back. Crucially, the priorities were set locally: money was drawn down for use within the agreed criteria of the funds, which were primarily focused on need, but set by those engaged in developing the programmes at a local level.
Dame Rosie, you and I both saw the benefits of structural funds in South Yorkshire after our coal and steel industries were decimated by Margaret Thatcher. Objective 1 funding over seven years helped to grow our economy by over 8%, from the advanced manufacturing park to community skills projects, supporting business growth and creating new jobs. Crucially, all those projects were conceived, planned and delivered locally.
How EU structural funding is to be replaced has been an important issue since we took the decision to leave the European Union. The right hon. Member for Preseli Pembrokeshire (Stephen Crabb), in the smaller part of his contribution earlier, identified the problem here. Colleagues on both sides of the House have been pressing the Government for answers on how the funds will be disbursed. The response was: “We’re going to have a shared prosperity fund”, but to this day there has been no detail on how it will work. The Government promised a consultation as early as 2017, in the Conservative party manifesto. They proclaimed that they would “consult widely” so that the fund would be
“targeted where it is needed most.”
Nothing happened. Under pressure, there were some engagement events to “seek views”, but they stopped in the middle of last year. There has not been a single engagement event or consultation event since this Prime Minister took office.
The Conservatives’ 2019 manifesto says of leaving the EU that
“we can take back control of the money that was being channelled via its Structural Funds.”
But who do they mean by “we”? Ministers, without reference to anyone? It is no surprise that Members have talked about this being an open door to pork barrel politics: funding for skills training, bus stations, sports events and theatres, directed to meet the political needs of the Conservative party; more contracts, perhaps, for party donors and friends—or perhaps the latest project from Dominic Cummings and his team of what he describes as “weirdos and misfits”.
Amendment 14 should reassure Members on both sides of the Committee, because it simply proposes what the Government promised: a clear policy framework for the distribution of funds. We are talking about very large sums of money. The UK would have received £13 billion over the next seven years from structural funds. The Government have pledged to match that, but how it is spent matters to everyone in this House and those we represent. Parliament must agree it. Amendment 14 would empower us to do that, and we should do so after comprehensive engagement with the devolved Administrations, local authorities, elected Mayors and those who speak for our communities.
There are other fears about the impact of the Bill on the devolution settlement—fears that amendments 15 and 16 seek to address. As others have explained, the Bill allows for money currently spent in Scotland, Wales and Northern Ireland through the devolved Administrations to be directed from the centre. Given how this Government operate, there are real fears that existing funds for those Administrations could be top-sliced and redirected for spending in those nations by UK Ministers. The powers handed to Ministers through part 6 of the Bill could be used to serve their political agenda and to undermine the devolved Administrations.
Amendments 15 and 16 would provide transparency and protect the decision-making powers of the Senedd, Holyrood and Stormont by making clear that, in relation to all the areas of spending set out in clause 46, funding is allocated to the devolved Administrations, and that all financial assistance related to devolved matters is delivered through the devolved Administrations. That would prevent the Bill from creating a back door through which Ministers could undermine devolution—a power grab in which spending decisions previously made in Edinburgh, Cardiff and Belfast would be made in London, and that would also marginalise local authorities.
We debated on Monday, and next Monday we will debate again, those parts of the Bill that have dominated the headlines and shocked people around the world, but today’s debate has demonstrated that it has other deeply concerning aspects. We heard about some yesterday, and they were echoed in the issues raised today. They are concerns about where power lies and how we make the decisions affecting our communities. Labour’s amendments seek to ensure that we hear local voices, spend money where it is needed and protect the Union. I commend them to the House.
The EU previously directed investments in many of those areas on the basis of priorities set by 28 different countries, and the power will allow us instead to focus UK taxpayers’ money on UK domestic priorities. For the first time, the funds will be open to direct scrutiny in this House by Scottish, Welsh, English and Northern Irish MPs. I was shocked that those on the Scottish National Benches appeared to dismiss that and think that constituency representation in this House was in some way either unnecessary or, worse, improper.
The creation of a UK-wide Government power, in addition to the devolved Administrations’ existing powers, will allow the UK Government to complement and strengthen the support already given to citizens in Scotland, Northern Ireland and Wales without taking away responsibilities from the devolved Administrations, and I emphasise that point to, among others, the hon. Members for Cardiff North (Anna McMorrin) and for Pontypridd (Alex Davies-Jones).
As we heard from the Chair of the Welsh Affairs Committee, my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), it is a legitimate authority for the UK Government to seek to look after all citizens, and Members of this House have a legitimate authority in arguing for their own constituencies. The hon. Member for Leeds North West (Alex Sobel), who is not in his place, called that idea “pork barrelling”, but Labour Members crowded into my right hon. Friend’s office when he was in Government to argue that investment in their areas was needed.
Putting that to one side, it is essential that we continue to support businesses and communities in recovering from the impacts of covid, and that is why, as my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) pointed out, we need to level up the country now and drive investment into all parts of the UK. In fact, we have showcased the benefits that such funding can bring through the city and growth deals across the entire country, through which the Scottish Government, the Welsh Government, the Northern Ireland Executive and local partners have accepted funding to support economic growth. Indeed, there is nothing new about the UK Government supporting economic development, using, for example, the Industrial Development Act 1982 to do so.
The power we are considering today seeks to support a wider range of crucial areas that can improve people’s lives and livelihoods. That is very important, as my hon. Friends the Members for Heywood and Middleton (Chris Clarkson), for Bishop Auckland (Dehenna Davison) and for West Bromwich West (Shaun Bailey) pointed out. It seeks to ensure that the UK Government can respond effectively to opportunities across the UK. As some Members have put it today, objecting to that is tantamount to objecting to the UK Government being able to spend taxpayers’ money on the communities and businesses of Scotland, Wales or Northern Ireland in every corner of the country for which the Government are responsible.
Amendments 33, 11 and 19 suggest that UK Ministers ought to request consent from the devolved Administrations to use the power. Let me start with the context that I referred to at the outset of my remarks. Currently, EU bodies do that spending on our behalf. They are unelected and they spend billions of pounds that we have provided as a net contributor, and that is drawing to an end. This legislation confers a power to ensure that we can invest UK taxpayers’ money nationwide on UK priorities and support people and businesses here in the UK. We intend to take a much more collaborative approach to delivering replacements to EU programmes than was ever the case with the European Union mandate. That will include engaging heavily with local authorities and the devolved Administrations, as well as with wider organisations. The new power will ensure that the UK Government are well positioned following the transition period to deliver investments to replace EU structural funds, at a minimum maintaining levels of investment across all four nations as per our manifesto commitment.
It is right that this responsibility should be held by the UK Government, rather than the EU. This will ensure that any financial assistance can be unified, that it can be universal in some instances and intra-UK in others, and that it can be at a scale that the whole of the UK can achieve. It is right to want to ensure that citizens in Scotland, Wales and Northern Ireland can continue to benefit from any initiatives that can bring such UK-wide benefits, as we did most recently with something on the scale of the furlough scheme. I again want to assure the hon. Members who tabled the amendments in this group that—
The UK Government do not take any powers away from the devolved Administrations, because this is in addition to devolved powers, which continue. As I have said, we want to continue to work with the devolved Administrations and local authorities to ensure that this power is used to best effect, augmenting the existing powers used to support citizens across the UK. At this point, I want to thank the hon. Member for Edinburgh West (Christine Jardine), who made the point very well about the need for consultation and partnership working.
I believe that UK Government Ministers, under the scrutiny of the UK Parliament, should have that ability to invest UK-wide. A legislative obligation to seek consent from colleagues in Stormont, Cardiff Bay or Holyrood might not always be appropriate in that context. That is because, as I have set out, the plans for investment will be at a strategic level, including on UK-wide projects, which would not be suitable to be blocked by any one part of the country. Indeed, the hon. Member for Glasgow North (Patrick Grady) revealed in his comments that his party’s priorities lay elsewhere. Perhaps that is the case on independence, as SNP Members have missed no chance to tell us about that this afternoon, but the hon. Gentleman said that economic development, infrastructure, education, culture, sport and more were not a priority in Scotland. Those were his words, and there we have it—[Interruption.] They would block such things.
Amendment 14, from the hon. Member for Sheffield Central, would require both Houses of Parliament to agree by resolution how the power should operate. It is absolutely essential that any and all spending of taxpayers’ money is subject to proper scrutiny and, as the House well knows, we have this responsibility and authority when the Government seek to raise taxes and set budgets for public spending. We have it in the Commons, but not in the Lords, and the first thing I would say about amendment 14 is that it has a weakness—indeed, a major flaw—in that it invites the House of Lords to take a stance on financial matters, which it does not do. I have full confidence in the House of Commons to scrutinise UK Government spending decisions in this way, as it also does daily through Committees such as the Public Accounts Committee. The House would also have the opportunity to vote on spending allocation under this power, through the estimates process. So I argue first that amendment 14 is unnecessary because there are already processes for looking at that expenditure, and I argue secondly that it is not right to give that power to the House of Lords as well as to the House of Commons.
Amendments 15, 16 and 12 propose that the devolved Administrations should themselves be funded to provide financial assistance under this legislation. I have already articulated why a new power is needed, so this really comes down to the very core point. For investment that is strategic, that is at a certain scale, that can be intra-UK and that can provide benefits universally across the UK, should the power be held at UK level or at the devolved level? This argument has been made pretty clearly, and it has reverberated across every part of the Chamber this afternoon. I do not think I need to re-summarise it here, but I say very clearly that this Government is a Unionist Government and we put the argument today that it is a sensible role for the UK Government to hold such a power. Therefore, I turn away from amendments that are simply based on a different view.
Amendment 12 seeks to go further. It suggests that the funding arising from the power be pre-allocated on the basis of GDP, and should take the form of multi-annual funding.
Let me take this opportunity to make it absolutely clear that devolved Administrations will continue to receive funding through the block grant and the Barnett formula, where appropriate. I thank my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) for making a powerful argument that the nations are home to some of the most deprived communities in the UK—and this goes to the argument that is contained in the amendment, perhaps, about where need is. The spending power in the Bill helps to answer that call.
As for the idea of long-term planning and multi-annual funding that is also encapsulated in the amendment, the funding arrangements and the governance for use of the UK-wide spending power will be a decision for the spending review, and that is the right way to allocate multi-annual funding. I urge hon. Members not to press the proposed amendment, because it is not necessary in this instance.
I turn to amendment 22, on which colleagues from Northern Ireland have spoken passionately today, especially the right hon. Member for East Antrim (Sammy Wilson) and the hon. Member for Belfast East (Gavin Robinson)—[Interruption.] The hon. Gentleman is waving at me from slightly outside the Chamber. I assure the hon. Members who authored the amendment that it is the intention and the effect of the power to apply equally across all of our nation, but I do not think that was quite the point of the hon. Gentleman’s argument today. In fact, I suggest to him, politely and gently, that those arguments are best taken up again in the next session of this Committee, when we turn to Northern Ireland’s interests more broadly, and specifically those to do with state aid, which is where I think he will be able to secure a much fuller discussion of the points that he was making.
I would like to take this opportunity also to reassure the hon. Member for Foyle (Colum Eastwood) that community balance can be accommodated, such as it has been indeed through the Derry/Londonderry and Strabane city deal, and we intend that kind of partnership to be able to continue.
I thank the hon. Member for Belfast South (Claire Hanna) for her passionate speech. She was of course right to quote John Hume: the best peace process of all is a job, and that is the kind of economic focus we intend through the Bill.
Let me also, just in passing, say to the hon. Member for Foyle—and I hope he is able to hear me, although he is also not in his place—that there is no intention to change any arrangements to do with water and water charges in Northern Ireland through the Bill. I hope he can note that—
Let me turn to amendment 22, on the important topic of climate change, tabled by the hon. Member for Brighton, Pavilion (Caroline Lucas). She made her case with her usual passion and eloquence, which I greatly respect. I share her determination to see those goals achieved, and so do the United Kingdom Government. However, there is already an overarching legal and policy framework for achieving those goals, and I do not think it is necessary to put that restriction on that power, so I urge her not to press the amendment.
Let me turn briefly to Government amendments 23, 24, 25 and 36, which seek to add to the types of mechanisms by which such assistance can be provided to further support economic development and other matters across the UK by means of an investment fund. Those are to help to ensure that this power can be used to best effect to boost growth, and I certainly hope every right hon. and hon. Member would support that.
This power, and the Bill overall, present a real once-in-a-generation opportunity to level up our country, to strengthen our Union and to allow the UK Government to invest better the taxpayers’ money that was previously spent by Brussels. We have a responsibility to support people, businesses and communities across the whole of our United Kingdom. This power enables the UK Government to do that in a variety of ways. I say to my right hon. and hon. Friends who asked about the UK shared prosperity fund that we can meet the manifesto commitment to deliver the fund, which matches the value of EU structural funds by using the provisions set out in this part of the Bill.
The power means that we can consider infrastructure investment across the boundaries of the nations—constituency examples have been given that show why that is so important, especially in areas where two of our nations come together—and it leaves the competences of our devolved Administrations intact. Above all, the Bill will deliver a thriving UK internal market, underpinned by the strength of the UK Government. It will provide opportunity and prosperity for citizens across this country. I commend clauses 46 and 47 to the House.
I have a lot of sympathy with what the hon. Member for Rhondda (Chris Bryant) said. Many people who now vote for the SNP did not start out as nationalists. That would be impossible, given the growth in our party over recent years. Many of them would have a lot of sympathy with what he said about what the Union ought to be, but that is not where we are. That is not where Scotland is right now, and it is as a result of this Government and previous Governments, and of promises made and promises broken, that we are in the situation that we find ourselves in today.
This Bill exemplifies the very worst of that with this power grab. The explanatory notes clearly state that the purposes in part 6
“fall within wholly or partly devolved areas under the Scotland Act 1998, Government of Wales Act 2006 and Northern Ireland Act 1998.”
They are powers that are being removed from the devolved institutions and hoarded here at Westminster. We will no longer have a say over all the issues that we have a say over at the moment; that will be exercised by a Government and Ministers we did not elect. That cannot be allowed to stand.
I have many things to say about the Bill, but we are late in hour and late in time. With the leave of the House, I will withdraw amendment 33, but I reserve the right to vote against clause 46. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 46
Power to provide financial assistance for economic development etc
Question put, That the clause stand part of the Bill.
The Committee proceeded to a Division.
Once the Tellers are in place, I will start inviting Members to file past the Table, stopping at the Dispatch Box to state their names and how they are voting. You should file to the left-hand side of the Table if you are voting Aye and the right if you are voting No. I suggest that Members on the Front Benches move further back for social distancing purposes, because other Members will be filing past. May I invite the first Member to step forward?
The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.
Amendments made: 23, in clause 47, page 37, line 23, leave out “take the form” and insert “be provided by way”.
24, in clause 47, page 37, line 23, after “indemnities” insert
25, in clause 47, page 37, line 25, after “interest” insert “or other return”.
26, in clause 47, page 37, line 26, at end insert—
Amendment proposed: 14, in clause 47, page 37, line 29, at end, insert—
“(3A) Financial assistance under section 46 must be the subject of a framework agreement to be agreed by resolution of each House of Parliament.”—(Edward Miliband.)
The intention of this amendment is to provide a policy framework for the allocation of financial assistance.
Question put, That the amendment be made.
The Committee proceeded to a Division.
The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.
The occupant of the Chair left the Chair (Programme Order, 14 September).
The Deputy Speaker resumed the Chair.
Progress reported; Committee to sit again tomorrow.
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