Trade (Australia and New Zealand) Bill – in the House of Commons at 6:33 pm on 12 December 2022.
Amendment proposed: 3, page 1, line 15, at end insert—
“(3A) Where the appropriate authority is a Minister of the Crown, regulations under subsection (1) may not be made until the appropriate authority has consulted the relevant Scottish ministers in relation to any matters affecting Scotland.”—(Richard Thomson.)
Question put, That the amendment be made.
Before I call the Minister, I should tell the House that we have had reports that Division bells in Norman Shaw South are not working, along with a number of other things. As we anticipate further Divisions this evening, I advise Members in and around Norman Shaw South to look for other means by which they can work out whether a Division is on, including the Annunciators, mobile phones and various other things. If they cannot do that, they should really stay around the main building.
I beg to move, That the Bill be now read the Third time.
Our deals with Australia and New Zealand are the first trade agreements in almost 50 years that the UK has negotiated from scratch. Members from across the House have rightly been eager to engage with the Bill, and I thank them all for continuing to do so. I also thank Members who sat on the Public Bill Committee for their work in scrutinising the Bill, and in particular my right hon. Friend Mark Pritchard and Derek Twigg for their expertise in chairing the Committee.
Members have rightly shown a great interest in the Bill, and I would like to use this opportunity to give the House further assurances. First, Members expressed concerns about the opportunities that the devolved Administrations have had to shape the Bill. I can assure the House that our procurement teams have consistently held roundtables with their counterparts from the devolved Administrations. During negotiations with Australia and New Zealand, they discussed the text of procurement chapters. Discussions on the Bill, and the changes in procurement regulations that it creates, have regularly taken place. Indeed, during negotiations, ministerial and official level engagement on these free trade agreements totals hundreds of hours. That includes 25 meetings with the Australia FTA chief negotiator, specific discussions at the ministerial forum for trade, and senior official conversations on policy content. My officials continue to work closely with their counterparts at the devolved Administrations to address the concerns raised regarding the powers in the Bill. I myself have also had constructive conversations with Ministers from the devolved Administrations. The Government remain committed not to using the concurrent power in the Bill without first consulting the devolved Administrations. I want to stress to the House that the powers are the most logical and efficient way of making minor, technical changes to our procurement regulations.
On Report, we discussed how the Government are committed to providing, for each agreement, a monitoring report every two years, and an evaluation within five years of entry into force. The reports will assess the entirety of the agreements and not limit themselves to the procurement chapters alone.
I would like to say a couple more thank yous: first, to the Bill team at the Department for International Trade—James Copeland, Donald Selmani, Jack Collins, Alex Garcia-Pineiro and Catherine Ajani—as well as the other officials who make up my fantastic team. I would like to thank the parliamentarians who have taken part in this and other debates on the legislation, and of course the International Trade Select Committee, as well as the wonderful staff here in the House.
I also want to thank the Opposition spokespeople for the constructive way in which they have approached scrutiny of the Bill. It was remiss of me earlier not to welcome the new SNP spokesperson, Richard Thomson to his role, and I do so now. I also thank his predecessor, Drew Hendry. Who knows, but perhaps under the new leadership we may actually get the SNP to vote in favour of a trade deal. [Interruption.] Indeed, I suspected that may be the case.
Will the Minister also extend the hope that the Government may accept one of the SNP amendments one of these days?
The key thing is that we estimate that these deals will considerably boost the UK economy and all nations. Businesses in every single constituency will be able to grasp new opportunities from this Bill. It will therefore benefit the whole of the country, and I hope that just perhaps it will get the support of the whole House. I am delighted to commend this Bill to the House.
I want to put on record my thanks to all parliamentarians who have contributed to the passage of the Bill. I thank officials at the DIT for their work and all those House staff who have supported the debates both in the Chamber and in Committee.
I also want to put on record my desire to see a deepening of our trade links with our friends in Australia and New Zealand through trade agreements and, indeed, ever closer relationships at all levels. Both countries are close global allies through a common history, and face similar challenges and have similar opportunities in the years to come. I particularly welcome the two very fine Labour Governments they have in office. The next UK Labour Government will work with these free trade deals for the benefit of our people here, and indeed of our friends in Australia and New Zealand.
Specifically on the negotiations, the high commissions of Australia and New Zealand have been remarkably helpful in briefing colleagues as talks progressed, and I am very grateful to them. I was very grateful this morning to meet Mr Don Farrell, the Minister for Trade and Tourism in Australia, to emphasise the Opposition’s desire to deepen that relationship. The Minister mentioned on Report that he was working on the commencement of the deals, but gave no particular date for that. I urge him to set out the commencement dates for both deals.
Our debate on this Bill has not been about the commitment of the Opposition to our deepening relationship with Australia and New Zealand. Rather, it has been about two things. The first is the failure of this Government to achieve the best possible deals for the United Kingdom. The Australia deal is “one-sided”—not my word, but that of the current Prime Minister. In addition:
“The first step is to recognise that the Australia trade deal is not actually a very good deal for the UK… overall, the truth of the matter is that the UK gave away far too much for far too little in return.”—[Official Report,
Those are not my words, but those of the former Secretary of State for the Environment, Food and Rural Affairs, George Eustice, and we can see why he said it. The impact assessment for the Australia deal shows a £94 million hit to our farming, forestry and fishing sectors, and a £225 million hit to our semi-processed food industry. On the New Zealand deal, the Government’s own impact assessment states that:
“part of the gains results from a reallocation of resources away from agriculture, forestry, and fishing”,
which will take a £48 million hit,
“and semi-processed foods”,
which will take a £97 million hit. Perhaps it is no surprise that Australia’s former negotiator at the WTO said:
“I don’t think we have ever done as well as this”.
British produce can be a huge success in new markets, but we recognise the need for a level playing field for our farmers, and it is to a proper plan for our agricultural sector that Ministers must now turn.
On climate change in the Australia deal, the Government failed to include a specific commitment to limiting the rise in global temperatures to 1.5 degrees. On workers’ rights, there was a failure to include commitments to the International Labour Organisation conventions, and there was a lack of substantial concessions on geographical indicators. Unless there is a change of negotiating approach, this weakness in negotiations will have even further consequences for this country in deal after deal.
Secondly, there is the lack of scrutiny. The deals were already signed and agreed before they came before Parliament, so the scope for any amendments, and therefore for meaningful debate, was fatally curtailed. It is impossible to argue that these processes represent scrutiny worthy of the name. The International Trade Committee has rightly criticised the process on the Australia deal and the Government’s premature triggering of the 21-day CRaG process without the full Select Committee consideration being available to Members. When pressed on that, the Government refused to extend the process, and all the while the previous Secretary of State swerved eight invitations—eight—to attend the International Trade Committee.
Perhaps it is no wonder that the Government keep dodging scrutiny, given their record, because as we approach the end of the year, it is a tale of broken promises on trade: no trade deal with the United States; a trade deal with India done by Diwali—promise broken; and 80% of UK trade under free trade agreements by the end of the year—not going to happen. The truth is that Conservative trade policy is a tale of bad deals or no deals at all.
On Third Reading, could I take the opportunity to thank the Clerks for all their help in assisting with amendments throughout the process? I thank those on both Front Benches for their kind words on my recent appointment to my party’s Front Bench as a trade spokesperson. I also thank my group’s researchers, Clorinda Luck and Katie Dominy, for the excellent research they have carried out for us throughout. Of course, I thank my good friend, my hon. Friend Drew Hendry, who led for the Scottish National party group of MPs throughout the previous stages, including in Committee.
The Minister said that he hoped, when we scrutinise future trade deals, that he might be successful in persuading the SNP to back them. I would give him a little bit of hope on that. The SNP is in favour of good trade deals, and we are not in favour of poor trade deals. Trying to help Ministers understand the difference does at times appear a little like Father Ted trying to explain to Father Dougal McGuire the difference between cows that are near and cows that are in fact far away. I would observe that certainly the benefits of this trade deal are very far away indeed.
I was going to comment on the existence of some dispute about whether or not the deal is a good one, but I am afraid that description simply would not do it justice. The Australian and New Zealand Governments certainly think that this is a good trade deal, and it is very telling, is it not, that there are so few individuals outside the ranks of the parliamentary Conservative party who are prepared to say the same from the UK side. I think there is a fundamental reason for that. It is quite clear that the Australian and New Zealand Governments were very focused on securing beneficial outcomes for their economies, whereas the UK Government seemed to be focused primarily on getting a deal as quickly as possible, no matter what that cost.
It is often said that the art of negotiation or diplomacy is the subtle art of letting somebody else get your way, and the Australian and New Zealand Governments certainly allowed the UK very successfully to get their way in the negotiations that took place. It is sad to say, but it will be our consumers, our producers and our economy that will end up picking up the price tag for that in the years to come.
Question put, That the Bill be now read the Third time.