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  • Jim Shannon – 2022 Speech on Business Rates and Levelling Up

    Jim Shannon – 2022 Speech on Business Rates and Levelling Up

    The speech made by Jim Shannon, the DUP MP for Strangford, in Westminster Hall, the House of Commons, on 13 December 2022.

    It is a pleasure to speak in the debate, Mr Mundell; I thank the hon. Member for Waveney (Peter Aldous) for setting the scene so very well. He and I, and others in the debate today, often join forces to support our communities. His and my communities are similar in their culture and geographical stance, and we share an interest in fishing issues. It is always a pleasure to come along and support the hon. Gentleman. It is also a real pleasure to follow the hon. Member for Torbay (Kevin Foster), good friend that he is. He is back on the Back Benches now, but when we were on the Back Benches before, I used to follow him and he me. To be honest, normally, I follow everybody else—but it was a real pleasure to hear his contribution. I am also pleased to see the Financial Secretary to the Treasury in her place; I know she always generously tries to respond to our requests and I look forward to her contribution.

    I think we are all on the same page on this one. I very much support the two hon. Gentlemen who have just spoken and what they are trying to achieve. I hope to be able to achieve that as well. I am pleased to see the shadow Minister, the hon. Member for Ealing North (James Murray), in his place. We are a bit sparse in numbers on this side of the Chamber, but I know that the hon. Gentleman’s contribution will make up for that.

    Like many others, I am and was excited about the Government’s levelling-up agenda. I looked at the money for Northern Ireland and imagined how many improvements could be made with that funding. Like the hon. Members who have spoken and who will speak afterwards, I have been concerned that the levelling-up programme seems to gloss over the needs of coastal communities. The hon. Members for Waveney and for Torbay outlined their requests on behalf of their communities. I have not read the speech of the hon. Member for St Ives (Derek Thomas), who will follow, but he will probably endorse what we are saying as well. The hon. Member for Waveney gave his presentation of the subject at the start of the debate. It has been incredible to hear all of them.

    As a quick aside, I should say that as I travelled up the beautiful peninsular roads in my Strangford constituency to the airport on Monday, in cool, crisp air, my thoughts were not only on the condition of the roads and their iciness, but on the knowledge that the road verges were getting smaller and smaller each year, giving less space for slippage and increasing the danger of those winding coastal roads. That is part of the reason why I have advocated for levelling-up funds to address coastal erosion concerns. We can have all the wonderful attractions we like, but if villages and roads slide into Strangford Lough, those attractions will mean nothing for those places.

    Moving on, I want to highlight the concerns of small businesses. I always give a Northern Ireland perspective in these debates. I believe that it adds to the value of this great United Kingdom of Great Britain and Northern Ireland that we can all come together from four regions to debate these issues and thereby engender support for all businesses in the regions, just as I support my colleagues here in the mainland.

    In March 2022, most of the businesses in Northern Ireland—some 89%, or 70,510—were microbusinesses with fewer than 10 employees. Just over 2%, or 1,640 businesses, had 50 or more employees. Almost half of businesses in Northern Ireland—45% or 35,415 businesses—had a turnover of less than £100,000, while 10%, or 8,220, had a turnover in excess of £1 million. When the Government talk about percentages, I presume they are thinking in terms of thousands of pounds, yet the cost for many of these businesses is hundreds of pounds, which could cover the cost of, for example, pens, biros and pencils for their office. Yet, for a small business, these perpetual small increases can be the death knell. When the debate came forward, I was pleased to support it and add a Northern Ireland perspective.

    In Northern Ireland, our small businesses pay 30% more for the delivery of products. That is, in part, to do with the Northern Ireland Protocol Bill, but also the movement of goods. They seek to absorb some of the cost, and this finds their profit margin down to 15% to cover all overheads. With respect, the pressure on businesses in Northern Ireland is more acute than it is for those on the mainland. When rates are put up by a few per cent, it can mean business owners working for less than the minimum wage. There is probably more pressure today than there has been for a long time, so again this debate is relevant to my constituents and businesses in Strangford.

    Another struggling demographic is pubs. I support what both the hon. Members for Waveney and for Torbay said and will give my own perspective. Pubs pay more in business rates per pound of turnover than any other business. Both hon. Members referred to the hospitality sector, and that is a sector we are concerned about. I know we always come asking for things, but it is the nature of life that we seek to illustrate in these debates where our constituents are coming from. What help can the hospitality trade be given? I know the Government have helped in many cases, so this is not a criticism—I am not in the job of criticising; I am in the job of trying to find solutions, as others are.

    The business rates bill for the sector accounts for 2.5% of total business rates paid, despite only representing 0.5% of total rateable turnover—an overpayment of £570 million. When the hon. Member for Waveney introduced the debate, he clearly suggested that the rates for the hospitality sector, including pubs and restaurants, need to be substantially reviewed, because the overpayment does not reflect a fairness in the system. It is time to look at that.

    The draft ratings list for 2023 to 2026 shows pubs’ rateable values falling on average by 17%, which will start to address the overpayment, but there is still a long way to go, and we should look to the immediate concern. The extension of, and increase in, the hospitality business rates relief for 2022-23 was therefore extremely welcome. I always think we should give credit where credit is due. The Government have made some substantial moves, and it is important that we recognise that. The freezing of the multiplier and the abolition of the downward transition on relief were also welcome.

    However, the decision not to bring forward—this is one of my requests for the Minister—the online sales tax to offset the cost of pub rates and provide for a fundamentally fairer business tax regime for the digital age was disappointing. I ask the Minister to see whether that request could be looked at. It is important because it is one of the solutions. In these debates, the hon. Member for Waveney always sets out how we can do things better, and that is incredibly helpful. The current business rates system remains unbalanced. I join the British Beer and Pub Association in urging the Government to bring forward meaningful reforms that level the playing field.

    I will use a pun, which I think the hon. Members for Waveney and for Torbay, who spoke before, and the hon. Member for St Ives, who will follow, will perhaps appreciate, as they all come from coastal constituencies. Levelling up only works if the rising tide raises all ships and does not leave the essential but smaller craft marooned behind the yachts that are already away. It is about bringing the other ones on board—the smaller businesses, who are under incredible pressure. I ask again for greater consideration on those issues. I know the Minister will do all she can to try to address that.

  • Kevin Foster – 2022 Speech on Business Rates and Levelling Up

    Kevin Foster – 2022 Speech on Business Rates and Levelling Up

    The speech made by Kevin Foster, the Conservative MP for Torbay, in Westminster Hall, the House of Commons on 13 December 2022.

    It is a genuine pleasure to serve under your chairmanship, Mr Mundell. At the outset, I must congratulate my hon. Friend the Member for Waveney (Peter Aldous) on securing the debate and giving us all a chance to reflect on the impact of business rates and levelling up.

    Like my hon. Friend I represent a coastal constituency, although with a shoreline that faces east rather than west, and I do not want the levelling-up agenda to be based on a crude caricature of north versus south—often, the communities facing the greatest challenges lie on the southern coast. My hon. Friend did not speak for a moment too long; I found his points very interesting, and I was in great agreement with many of them with respect to how we need to change this form of taxation.

    Communities such as Torbay can see wealth alongside areas with challenges, and we need to see levelling up in not only the national context, but the local, with the clear aim of turning back the tide on poverty, which is affecting some of the communities that I am proud to represent.

    For Torbay, levelling up means looking to attract investment, which generates long-term jobs and ensures a genuinely vibrant local economy. That is where business rates can have such an impact. They effectively penalise businesses for investing in bricks and mortar, putting physical retail—not just, nowadays, high street retail—at a disadvantage to online outlets and potentially putting off development more widely across sectors such as tourism and hospitality, where a business rates liability will pretty much inevitably be created as part of a new investment.

    Business rates might have been an irritant in the past, but they can often be the make-or-break factor now, especially in light of the other pressures that businesses face. Business rates are the bill that is not flexible. That bill is enforced by the magistrates, and it is often the final blow, as it takes little or no account of the actual income that a business receives, as my hon. Friend mentioned. It is literally a tax on existence. Businesses must pay the tax simply to be in their premises, before they open the door to do any trade or business.

    Like my hon. Friend the Member for Waveney, I found the figures around rental revaluation extraordinary. It does not strike me that rental values for shops have fallen by only 10%, as on most high streets agents are offering businesses “Will you pay the business rates?” style deals on properties for certain periods of time. The figures do not reflect where rentals would have been five, six or seven years ago, or even a couple of years ago, before the impact of the pandemic.

    I will give a quick example of the impact of the cost of business rates, when combined with other costs. A company that runs four hotels in my constituency has, unsurprisingly, seen utility costs increase dramatically, meaning that the business needs an additional net income of £8 per room—a 12% increase—for all 125,000 room nights, just to pay the increased costs. That is simply not achievable in the current economic circumstances. The company pays £6.5 million in payroll to 470 employees in Torbay and spends £7 million a year through the supply chain, mostly in the west country. The moves we are seeing to increase wages are welcome, but they will mean the company will have a 9% payroll increase in April 2023. The retail, hospitality and leisure business rates relief scheme, which has been confirmed to be 75% for 2023-24, is welcome and it will offset around £300,000 of the additional costs for business, but it will not reach the wider amounts needed, as those bills still need to be paid.

    Similarly, another example is an innovative holiday park, with caravans that are the equivalent of staying in a hotel suite; the era of putting 50p in a meter is long gone—think caravans with widescreen TV and central heating. That business will potentially see its bill double, courtesy of its investment.

    While we often focus on the impact of business rates on our high streets and town centres, the impact is much wider, especially in situations where it is not an option for staff to work from home or from remote locations, such as in the manufacturing or hospitality sectors. A holiday by Zoom or a pub night on Microsoft Teams will not be the same experience; a physical premises is needed to deliver those experiences.

    What can be done? We need to look at providing further relief in the current system, particularly for small and medium-sized businesses. We need to realise that the days of retail and hospitality being a handy way to raise revenue for local services are now over. The high street corner is no longer the prime place to do business. There are department stores standing empty across many of our town centres, such as the former Debenhams on Torquay harbourside. We need not walk far from this Chamber to see what was once a large department store lying empty in what was a prime shopping area of London—a sight unimaginable back in 1990, when the uniform business rates were introduced.

    It is increasingly the presence of business rates liability that can directly and adversely affect the chances of levelling up a community by discouraging investment in commercial properties. That was one reason why I supported the previous investment zone suggestion that allowed business rate reductions in key areas that needed regeneration.

    Ultimately, a derelict and boarded-up building creates costs, not revenue, for the public purse. I urge the Government to look at what can be done further about business rates to ensure they do not become a barrier to the regeneration of our town centres, not least in the context of large national charities receiving a mandatory 80% relief, often increased to 100% relief by billing authorities. At the very least, parity for smaller businesses trading in retail, leisure and hospitality within our key areas for levelling up would be a welcome incentive, before finally getting on with what needs to be delivered: a major review of this form of taxation.

    It is oft talked about, but there needs to be a better option for the future in a system that is fundamentally rooted in the pre-digital era of economic activity, when physical premises were an integral part of doing business. I appreciate that that is easily said and harder done, not least when we consider the £25 billion of revenue that has been referenced. However, we should not shy away from doing it simply because it would be hard. Taxes have changed in the past to reflect economic, scientific and technological changes. The same is needed now.

    I cannot cover in a short speech every aspect of the links between business rates and levelling-up policy, alongside their impact. However, I hope the Minister in her response will reflect on how we need to consider the real disincentives of the tax for businesses such as hospitality, which must innately operate from a physical space, and the deterrent to operating retail from the high street, town centre or even the out-of-town shopping centre, which is facing huge competition. If we are to truly level up many coastal communities, those issues must be addressed and a revaluation on its own will simply not do that. If they are not, there is a danger that our taxation system, designed for an era when people went to a public payphone and had to go to a physical premises to buy something, will hit our town centres and not deliver the levelling up and regeneration that so much of Government spending is trying to achieve.

  • Peter Aldous – 2022 Speech on Business Rates and Levelling Up

    Peter Aldous – 2022 Speech on Business Rates and Levelling Up

    The speech made by Peter Aldous, the Conservative MP for Waveney, in Westminster Hall, the House of Commons, on 13 December 2022.

    I beg to move,

    That this House has considered business rates and levelling up.

    It is a pleasure to see you in the Chair, Mr Mundell. I am grateful to the Backbench Business Committee for granting this debate. It is extremely apt that the debate is taking place on the same day that the Levelling-up and Regeneration Bill returns to the House of Commons. If we can successfully reform business rates so that they are fair to businesses right across the country, that really will help to deliver meaningful levelling up.

    At present, with businesses having to contend with a level of inflation not seen for a generation, soaring utility bills and stubbornly high rents, business rates are a fixed cost from which occupiers cannot escape. They are an impediment to regional growth, and their impact needs to be significantly reduced, with the system being put on a long-term, easily understood footing. In that way, businesses will know where they stand and can then make long-term investment decisions.

    To be fair, all political parties have recognised the unfair and unjust nature of the current system and commitments have been made to both replacement and reform. From my perspective, I sense that the former—replacement—is the holy grail that is unachievable in the real world. To address the immediate threat that business rates pose to many businesses in different sectors and in different parts of the country, a wide variety of reliefs and exemptions have been introduced. Although welcome, they have made the system more complicated and difficult to comprehend.

    Currently, the Labour party is committed to abolishing business rates and replacing them with a system fit for the 21st century. As I have said, I sense that it will be impossible for it to keep that promise, because, despite the drawbacks that business rates possess, they have inherent advantages for the Treasury: they yield approximately £25 billion per annum, are relatively easy to collect and are difficult to avoid. It is impossible to find an alternative system of taxation that has those advantages, and I believe that it is important to get on with reforming the current system.

    Let me turn to the Government’s record. My right hon. Friend the Chancellor of the Exchequer made significant and largely welcome announcements in his autumn statement, which I shall detail later. However, I am mindful that we made commitments in the 2019 Conservative manifesto that we are yet to properly and fully implement. Those include carrying out a fundamental review of the system and reducing business rates in the long term for retail businesses, as well as extending the discounts to grassroots music venues, small cinemas, and pubs. Yes, we have provided a wide variety of short-term reliefs, but we have not yet provided the permanent fix that is so urgently needed.

    It is appropriate to briefly describe business rates. They are a tax charged to most non-domestic properties, although there are some exceptions, such as small businesses with a rateable value of less than £12,000. They are calculated by multiplying the rateable value of the property by the uniform business rate multiplier. The rateable value is an assessment of the annual rent that the property would achieve if it were available to let on the open market at a specific, fixed valuation date. The UBR multiplier for 2022-23 is 51.2p in the pound, or 49.9p for small businesses.

    Before I came to this place I was a chartered surveyor. Although I did not specialise in business rates, I did from time to time carry out business rates appeals. Invariably, that happened in situations with a lack of rental evidence on which to base an assessment of a property’s rateable value. As a result, it was difficult to agree a value, and there was the risk of a rateable value being imposed, which was abstract from reality and took no account of the ability of the business to pay and thus continue to exist and operate profitably. The Valuation Office Agency—the VOA—needs to be more transparent, open and collegiate in its dealings with businesses. I shall touch on that later.

    As I have mentioned, the Chancellor made some significant announcements in his autumn statement, which included confirmation of a revaluation that will come into effect from April; the freezing of the uniform business rate multiplier; the reform of the transitional relief scheme; a supporting small business scheme; and a 75% retail, hospitality and leisure relief worth up to £110,000 per business. The revaluation is generally to be welcomed, although there are some notable exceptions, as it will on the whole bring down rates in economically depressed areas while raising rates in areas where rental values have risen.

    The announcement that the downwards phasing of the transitional relief scheme for England is to abolished is good news, with upwards phasing being funded by the Treasury. The problem with transitional relief was that meaningful and full reductions in business rates, which businesses particularly in the retail sector desperately needed, took far too long to filter through. The measures will provide much needed support to help businesses get through the next few months, and they provide the foundation stone on which to now carry out the promised fundamental review.

    Despite those measures, which in many respects can be likened to the application of yet more sticking plasters and, indeed, bandages, fundamental flaws remain to be addressed. Although the Government froze the UBR at 51p in the last two Budgets, it remains unsustainably high. In no other country in Europe do businesses pay half the rental value of premises in property taxes. Set at such a high level, business rates deter investment in retail, leisure and hospitality. It should be noted that the UBR was just 34p in the pound when it was first introduced in 1990.

    The extension of business rates relief for retail premises from 50% to 75% in 2023-24 is welcome, even though it will help only smaller retailers because it applies to the first £110,000 of business rates paid. The Office for Budget Responsibility envisages that that relief will be removed from 1 April 2024, which would leave retailers with a massive tax hike at that point—in effect, a cliff edge. A tapering scheme will therefore need to be applied to overcome that particular problem.

    In the recently published valuation list, which comes into effect next April, the valuation of retail premises fell by only 10% across the country in the six years from the last valuation date of April 2015. Without the Chancellor’s measures on downwards phasing to freeze the UBR, business rates would have had a massive levelling down impact on all retail, and on depressed regions in particular. That underlines the need for fundamental reform.

    I shall move on to briefly highlight some of the inequities of the current system that need to be addressed. Business rates are a tax paid by businesses before a sale or a transaction has even been made. It is in effect a tax on existence rather than a tax based on success or failure. It therefore follows that it needs to be kept low so that it can be paid by all businesses. A high UBR discourages not only occupation, but investment in new accommodation and the physical expansion of existing premises. Ratepayers who have invested in improving their premises are penalised, as they then face higher bills. The system adversely affects physical retailers whose properties on high streets have significantly higher rateable values than the warehouses that serve online retailers. Similar challenges were faced by the hospitality sector.

    While in theory, with the current UBR, business rates should represent 51% of the rental value of a property and hence one third of the cost of occupancy, retail has been struggling, and some landlords have agreed much lower rents to enable their tenants to stay in business. Rents are increasingly being linked to turnover, and are thus disconnected from the rental values that are used by the VOA to determine business rates bills. Therefore, many retail outlets will be paying business rates bills in excess of their actual rent, even after the revaluation takes effect. In the new list, rateable values for retail have gone down by 10% on average. That is surprisingly little, given that many shops were closed and paying no rent at all at the valuation date of 1 April 2021, when we were in the midst of a covid lockdown.

    The valuation process that allocates properties their rateable value is not transparent, with the VOA not sharing the evidence that it uses to substantiate the basis of valuations. The only way for occupiers to assess that evidence is by challenging the valuation through the “check, challenge, appeal” process, which is lengthy and costly. There is therefore much concern that many challenges to the valuation process will be submitted over the coming months. The worry is that the VOA uses flimsy evidence when conducting property valuations. Those businesses that engage with the VOA through the appeals process, or by providing evidence leading up to the valuation, have more accurate valuations, while those that have not seen any reductions have not engaged with the VOA.

    The VOA has outlawed 400,000 applications made by businesses in mitigation of rates bills on the basis of covid-19. Its view is that covid did not constitute what is known as a “material change in circumstances”, which can lead to a reassessment of a rateable value. That decision has been justified by the VOA on the basis of the allocation of the £1.5 billion covid relief fund, the distribution of which was devolved to local government. While some local authorities have been quick to distribute that relief, others have been slow. The lack of a uniform distribution mechanism has meant that receiving the relief payments is dependent on where the occupant is based, and a postcode lottery has, in effect, been created.

    In the autumn statement, the Chancellor froze the UBR at 51p for one year only—that is, for 2023-24. As mentioned previously, the OBR’s figures indicate that the UBR will be index-linked thereafter. That means that as matters stand at present, business rates for retail premises will rise from April 2024. The Government have extended their 75% rate discount for shops paying up to £110,000 in rates until 2024. Likewise, unless the Government extend the relief, occupiers will again face a cliff edge when the scheme expires.

    The Government will soon be bringing forward a non-domestic rating Bill. It is important that the contents of that Bill are fully debated, and that the opportunity is taken to ensure that it is a vehicle for delivering the fundamental reform of business rates that was promised in 2019. The Bill will include provisions such as the duty to notify of any change to a property; changes to the frequency of revaluation; and the removal of the need for transitional relief to be fiscally neutral. Alongside the duty to notify, there should also come a corresponding duty on the part of the VOA to share with occupiers the evidence it uses to assess rateable values.

    Due to the complexity of the business rates system and the burden on ratepayers, occupiers quite understandably often seek advice from rating experts on how best to approach the whole process. Unlike with other professions, rating advisers do not need a licence to practice, resulting in some operators giving bad advice and cheating people out of their money. We need to find a way to outlaw such conduct.

    Currently, property owners do not have to pay business rates on empty buildings for three months. After that period ends, most businesses have to pay business rates in full, although there are some exceptions. The outcome of the 2020-21 review was that the Government committed to an empty property relief consultation in 2022, but that has yet to take place. It is important that the relief is extended—it is probably best to extend it to 12 months—because rates will then be paid exclusively by revenue-generating businesses.

    It is appropriate to highlight the particular challenges faced by the hospitality sector, which is a vital component part of many local economies all around the UK, including in the Waveney constituency that I represent. With a fair business rates system, the sector can play a key role in levelling up.

    Looking at the revaluation list in the Waveney area, businesses that have invested and that are vital engines of local economic growth are being heavily penalised for their ambition and success. By way of example, the rateable value for the Kessingland Beach holiday park is due to rise from £291,450 to £388,500; for the Harbour Inn in Lowestoft, it will rise from £23,500 to £45,000; and for the Commodore in Oulton Broad, it will rise from £67,500 to £79,000.

    The current system sees the hospitality sector overpay nationally by £2.4 billion a year relative to its turnover; in other words, it overpays by 300%. In the short term, the differential rates between large and small businesses should be removed and the eligibility rules for reliefs based on rateable value should be abolished. In the longer term, a significantly reduced UBR multiplier should be introduced.

    To address the variety of problems that I have outlined, root-and-branch reform is urgently required. Business rates would be fairer and better if the system was simplified, the tax base broadened by removing the myriad complicated reliefs, annual valuations proposed, a one-year antecedent valuation date set, and fast appeals and greater evidence-sharing between occupiers and the VOA introduced.

    Such reform could be achieved by making the following changes. First, the UBR could be reduced by 30%. By way of example, reducing the UBR from 51p to 34p, which was the rate in 1990, would reduce unsustainably high levels of business rates on retail and hospitality premises, and level the playing field for so many businesses. A lower UBR would also reduce the barriers to entry, expansion and innovation, thereby encouraging growth and broadening the tax base. In effect, this would plug the gaps in revenue that the Treasury might fear would result from a lower UBR.

    Secondly, the Government have correctly moved from five-yearly to three-yearly valuations. That represents a step in the right direction, but yearly valuations would be far more equitable. By implementing yearly valuations, business rates would accurately reflect the dynamic movements of the market and allow occupiers to benefit immediately from changes to rateable values. The increased incidence of events such as the covid pandemic and the war in Ukraine further emphasise the need for a system that is able quickly to react to rapidly changing economic conditions.

    Thirdly, we need to look at the abolition of the system of complicated reliefs. Instead of the fundamental review that was promised, the Government have continued to apply sticking plasters to the system to ensure its continued functioning. That has culminated in a system of complicated reliefs that can be difficult to navigate. The business rates system comprises 12 reliefs. Those would be rendered unnecessary with the lowering of the UBR, which would mean a business benefiting from paying lower rates immediately instead of negotiating and navigating the VOA system of reliefs.

    Fourthly, many of the problems I have detailed could be fixed by making the VOA more efficient. Its systems, which are predominantly paper based, are not fit for the 21st century. Digitisation would enable the VOA to make its collection systems more efficient and it could take a big step towards systems efficiencies such as annual valuations. The Government recently published a consultation to that effect, entitled the digitalising business consultation. However, unfortunately, it largely missed a point because instead of consulting on the measures that would reduce the administrative burdens on businesses and ratepayers, the Government are trying to increase those burdens by requiring more information so as more effectively to target reliefs.

    I sense that I have spoken for far too long, and you will be pleased to hear, Mr Mundell, that I am nearing my conclusion. High business rates hold back economic growth, are a barrier to levelling up and are an added burden that many businesses simply cannot afford at present. To be fair, the Government have listened, and they are aware of the problem. The response has been the introduction of short-term reliefs, which are welcome, but they complicate the system further in the longer term.

    We need to stop searching for that elusive holy grail and stop kicking the can down the road. Instead, we need to introduce pragmatic measures that can be delivered quickly, and we need to honour the commitment to a fundamental review. I therefore urge the Treasury to introduce those initiatives—in the spring Budget, I would suggest—and in the first instance I look forward to hearing the response from my hon. Friend the Minister.

  • Mark Harper – 2022 Statement on Rail Services in the North

    Mark Harper – 2022 Statement on Rail Services in the North

    The statement made by Mark Harper, the Secretary of State for Transport, in the House of Commons on 13 December 2022.

    Members will be aware that, in July 2022, Avanti West Coast experienced an immediate and near total cessation of drivers volunteering to work on passenger trains on rest days. In response, it has had to reduce its timetable to provide greater certainty for passengers.

    Similarly, TransPennine Express services continue to be impacted by the loss of rest day working, higher than average staff sickness levels, and historically high levels of drivers leaving the business.

    The current rail services in the north have therefore been unacceptable, and on November 30 I met with the northern Mayors in Manchester. In that meeting, we agreed that the rail industry is not set up to deliver a modern, reliable service, and that we need both short-term and long-term measures to address this.

    As a short-term measure, Avanti West Coast and TransPennine Express have both been rapidly increasing the number of drivers they employ. This is helping Avanti restore the services that it was forced to withdraw. Services increased in September, and have now increased to 7 trains per hour, restoring the full Manchester-London service. It is therefore disappointing that passengers will not see the full benefit of these changes until the current wave of industrial action is over. I was pleased to see the RMT call off the strike action scheduled for Avanti West Coast on 11 and 12 December, as sustaining this level of service will require the support of the trade unions.

    I have also given TransPennine Express and Northern the scope they need to put a meaningful and generous rest day working offer to ASLEF. However, giving operators a mandate is only the first step. ASLEF needs to enter negotiations, and put any new deal to its members and, if accepted, do all it can to make that deal work. TransPennine has made a generous revised offer to ASLEF and it was almost immediately rejected without being put to members. It is up to the unions to decide if they want to improve services, for the good of passengers and the wider economy in the north.

    Today, the RMT is on strike across the country again, disrupting services and driving passengers away from the railway. In my meeting with the Mayors, we all agreed on the need for a reliable railway seven days a week. That means not having fragile rest day working agreements and breaking the railway’s dependence on rest day working altogether. No modern and successful business relies on the good will of its staff to deliver for its customers in the evening and at the weekend. I want a railway with rewarding jobs, contracted to deliver every service promised to the public. I want to encourage passengers back to a financially sustainable railway.

  • Rishi Sunak – 2022 Statement on the Intelligence and Security Committee Annual Report 2021-22

    Rishi Sunak – 2022 Statement on the Intelligence and Security Committee Annual Report 2021-22

    The statement made by Rishi Sunak, the Prime Minister, in the House of Commons on 13 December 2022.

    The Intelligence and Security Committee of Parliament has today laid before Parliament a report covering the work of the Committee between August 2021 and March 2022. The 2021-22 annual report demonstrates the wide-ranging work of the Committee across a number of important issues. While there have been changes in Government between the final drafting and publication of this report, I reiterate the Government’s gratitude to the Committee for its continued independent oversight and scrutiny of the UK Intelligence Community, and I look forward to working together.

    The membership of the Committee has changed during the period covered by the report, and I would like to thank the right hon. Dame Diana Johnson MP and the right hon. Mark Pritchard MP for their work on the Committee, and welcome the new Members, Maria Eagle MP and the right hon. Sir Jeremy Wright MP into the role.

    The Government continue to support the Committee on its ongoing inquiries on international partnerships, China, cloud technologies, and Iran, and look forward to seeing the conclusions of the Committee’s subsequent reports. The Government reiterate their thanks to the Committee for its thorough inquiry and detailed report, “Extreme Right-Wing Terrorism”, published on 13 July 2022, and will respond formally in due course.

    The Government value the scrutiny the Committee provides through its inquiries, and this oversight is vital in ensuring the public can have confidence that our agencies are operating in full accordance with the law. Protecting the operational capabilities of the agencies and wider intelligence community to ensure the safety and security of our nation remains a critical priority for the Government. We will continue to engage constructively with the Committee to ensure its effective public oversight, in line with its powers as set out in statute, while balancing scrutiny and accountability with the need to protect our operating capabilities.

    The Government consider the current memorandum of understanding with the Committee to be sufficient to enable the Committee to conduct its statutory oversight duties to provide effective scrutiny and robust oversight of the agencies and wider intelligence community. The Government note the Committee’s comments regarding the provision of sensitive information to parliamentary Select Committees. There is existing guidance establishing that classification is not a reason for Government to withhold information from parliamentary Committees and there is an agreed process in place to provide sensitive information to any Committee as required.

    I would like to again thank the Committee for its work, and I look forward to working with it as it continues its vital oversight duties.

  • Will Quince – 2022 Statement on the Genome UK Implementation in England

    Will Quince – 2022 Statement on the Genome UK Implementation in England

    The statement made by Will Quince, the Minister of State at the Department for Health and Social Care, in the House of Commons on 13 December 2022.

    This is a joint statement with the Secretary of State for Business, Energy and Industrial Strategy.

    In 2020, the Government published Genome UK, the UK’s genomic healthcare strategy, setting out a vision to create the most advanced genomic healthcare system in the world, underpinned by the latest scientific advances, to deliver better health outcomes at lower costs. The strategy made 45 commitments to be delivered over 10 years to achieve this vision. Delivering this vision will help people to live longer, healthier lives, reduce the burden of illness on the NHS and make the UK a world leader in data-driven healthcare research and innovation.

    I am delighted to inform the House that we are today publishing the “Genome UK—England Implementation Plan 2022 to 2025”, which sets out how we will further progress delivery of Genome UK in England during the current spending review period, taking us to the halfway mark of our ambitious 10-year strategy. In order to allow us to reflect advances in this fast-moving field, we have adopted a phased approach to implementing the strategy, with implementation plans published in line with spending review periods.

    This publication follows the previous “Genome UK: 2021 to 2022 Implementation Plan” in May 2021, and “Genome UK: shared commitments for UK-wide implementation 2022 to 2025” in March 2022. Through extensive collaboration with partners across the genomics community we have set out our priority actions, showcasing the outstanding research and policy work that will take place across England to develop, evaluate and implement new genomic technologies across the health and care system and life sciences sector. As part of this, I am pleased to announce:

    The £105 million of Government funding for a landmark research programme, led by Genomics England in partnership with the NHS, to study the effectiveness of using whole genome sequencing to speed up diagnosis and treatment of rare genetic diseases in newborn babies, potentially leading to life-saving interventions for thousands of babies.

    The £22 million of Government funding for Genomics England to tackle health inequalities in genomic medicine through tailored sequencing of 15,000 to 25,000 participants from diverse backgrounds by 2024-25, as well as extensive community engagement work to build trusting relationships with traditionally excluded groups of people.

    The £26 million of Government funding for an innovative cancer programme, led by Genomics England in partnership with NHS England and the National Pathology Imaging Co-operative, to evaluate cutting-edge genomic sequencing technology and use artificial intelligence to analyse genomic data alongside digital histopathology and radiology images to improve the accuracy and speed of diagnosis for cancer patients.

    Up to £25 million Medical Research Council-led funding for a four-year functional genomics initiative, working across UK Research and Innovation and other stakeholders to establish an industry-partnered world-class offer on functional genomics, building on already existing infrastructure and UK research expertise.

    These are just a few of the many actions that are set out in the implementation plan, which also covers how we will engage with patients and the public; develop the genomics workforce; support industrial growth and explore a possible UK model for how to apply ethical standards in genomic healthcare and research.

    Together, these actions will pave the way to bringing improved approaches to disease prevention, diagnosis, and treatment to people and patients, transforming healthcare and improving the health of the nation. Through these actions we will also increase private sector investment, by ensuring that the UK is the best location globally to conduct genomic research and grow new genomic healthcare companies.

    Patients and the diverse UK population are at the heart of our journey to the world’s most advanced genomic healthcare system. Equally, this vision cannot be achieved without the support our talented healthcare workforce. I therefore want to emphasise that open engagement with the public, patients and workforce will continue to be central in the delivery of our 10-year vision.

    This implementation plan has been agreed with the Genome UK Implementation Co-ordination Group and the National Genomics Board, which are made up of senior life sciences stakeholders and delivery partners from across the NHS, the charity sector, research, and industry. The devolved Governments will be publishing their own implementation plans, to ensure that genomic healthcare is able to flourish across the UK. Over the next three years we will continue to work with our partners, including the devolved Governments, via the Genome UK Implementation Co-ordination Group and the National Genomics Board, to ensure that we can continue to create the most advanced genomic healthcare system in the world.

  • Nigel Huddleston – 2022 Speech on the Australia and New Zealand Trade Bill

    Nigel Huddleston – 2022 Speech on the Australia and New Zealand Trade Bill

    The speech made by Nigel Huddleston, the Parliamentary Under-Secretary of State for International Trade, in the House of Commons on 12 December 2022.

    May I say what a pleasure it is to speak on behalf of the Government today as we scrutinise this landmark piece of legislation? I thank colleagues for their contributions to the debates on this Bill, including the general debate, where many of the points raised today were also covered and responses were given by my hon. Friends on the Government Benches. I will try not to repeat that debate now.

    The Government are of the view that the amendments tabled are ultimately unnecessary, and I hope that I will be able to persuade right hon. and hon. Members to withdraw them. The new clauses that deal with issues on impact assessment are unnecessary, as the Government have already committed to undertake assessments of impact of these deals at regular intervals.

    First, the Government have committed to publishing a monitoring report every two years and a compressive evaluation report for each of the agreements within five years of their entry into force. Those evaluation reports will aim to show how, why and for whom the agreements and their implementation have delivered, addressing many of the points raised by hon. Members in the debate.

    Hywel Williams

    Can the Minister therefore confirm that there will be detailed assessments for Wales, including within regions and sectors in Wales?

    Nigel Huddleston

    We will be happy to discuss with many stakeholders the precise nature, content and scope of those reviews, and we will do that in due course.

    This Bill is based on procurement, but while procurement is the only area that requires primary legislation for implementation, it should not be the only area that is subject to review. Therefore, publishing and considering impact assessments that only cover procurement implementation would not be an effective use of parliamentary time, nor would it give parliamentarians a full picture of the economic impact of the agreements. On multiple levels, the proposed amendments relating to impact assessments would not be fit for purpose.

    Regarding the negotiation of the procurement chapters, both chapters build on the baseline in the World Trade Organisation’s agreement on Government procurement, or GPA, setting new international precedents, notably on data transparency and facilitating SME involvement in procurement. While all negotiations are different, my Department is committed to learning from each negotiation and applying those lessons directly to its work. I am confident that that approach towards negotiating procurement chapters allows for high-quality chapters that work well for British business and consumers.

    As mentioned by several hon. Members today, the Bill Committee heard evidence from Professor Sanchez-Graells. We respectfully disagree with the professor’s reading that the chapters do not align with the GPA or that suppliers will not have access to legal remedies against contracting authorities and so cause confusion for and disadvantage British businesses. We do not believe that is the case. My predecessor, my hon. Friend the Member for Rochford and Southend East (Sir James Duddridge), wrote in detail to the Committee on that and I have nothing more to add.

    The Government are resolute in our determination to protect the NHS, recognising that it is an institution that is very important to the UK and its citizens. That is reflected in the specific protections negotiated in respect of the NHS in the agreements: health services are expressly excluded from coverage under the procurement chapters and both agreements specifically refer to the NHS and the general exclusions that apply to it.

    On small businesses, the procurement chapters in both agreements include articles on facilitating the participation of SMEs in procurement. We will have people on the ground in the UK, Australia and New Zealand to help to fully exploit the opportunities, and I can assure the hon. Member for Strangford (Jim Shannon) that we will be providing that support across the UK. The Government have an active agenda of facilitating SME participation and continue to advance that agenda across the free trade agreement programme. We have consulted with businesses throughout the negotiations, including with small and medium-sized enterprises, and will continue to do so throughout the implementation.

    On protecting farmers—again, a hot topic in previous debates—in both the Australia and New Zealand FTAs, the UK secured a range of measures to safeguard our farmers, including tariff rate quotas for a number of sensitive agricultural products and product-specific safeguards for beef and, for Australia, sheepmeat, alongside a general bilateral safeguard mechanism providing a temporary safety net for all products. Equally, this Government are committed to ensuring that UK farmers have the tools they need to secure the export benefits of these trade deals.

    Additionally, it is unlikely that products from Australia or New Zealand will flood the UK market. In 2021, more than 80% of Australian beef exports and nearly 70% of Australian sheepmeat exports went to markets in Asia and the Pacific. New Zealand already has a significant volume of tariff-free access into the UK for sheepmeat but used only a third of that quota in 2021, meaning that New Zealand could already export more sheepmeat to us tariff-free, but chooses not to.

    Geraint Davies

    If New Zealand is not utilising its current quota, why have we chosen to give a completely unlimited quota in 15 years’ time? Given the Minister’s reasoning, New Zealand presumably does not need it, and it just exposes us to unnecessary risk.

    Nigel Huddleston

    All negotiations involve give and take. The hon. Gentleman will also acknowledge, I am sure, that we are also seeking market access right across the globe for farmers and our fantastic food and beverages—for example, by opening up the market in the US for sheepmeat for the first time in 20 years. At the same time, we are seeking opportunities right around the world. Of course, as several hon. Members have mentioned, we are proud of our high animal welfare and food safety standards, which is why we are ensuring that this deal does not compromise on them and that no new permissions for imports such as hormone-treated beef were granted.

    On the Government’s engagement with the devolved Administrations, right hon. and hon. Members will be aware that the Minister for Trade Policy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands), chairs the inter-ministerial group for trade, previously known as the ministerial forum for trade. That forum provides an opportunity for discussion on all matters of trade policy, including the implementation of UK free trade agreements. The forum is not the only opportunity for ministerial discussions; there are frequent bilateral meetings between Ministers. Indeed, later this week, my right hon. Friend is set to meet the Scottish Minister for Business, Trade and Enterprise, to whom I spoke last Tuesday. I also spoke to the Welsh Minister for the Economy on 1 December on a similar basis. In addition to ministerial engagement, discussions with devolved Administrations at official levels have totalled hundreds of hours across the Australia and New Zealand FTAs, including frequent updates by chief negotiators and detailed discussions to draft text.

    It may be helpful to also remind the House that on Second Reading, the previous Secretary of State for International Trade, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), who is sitting near me now, committed at the Dispatch Box never to use the power in clause 1 without consulting the devolved Administrations first. That is a sincere commitment, and one that we will honour.

    Hywel Williams

    Is not the Minister confirming that taking back control extends to Ministers and officials in the devolved Governments but not to the elected representatives?

    Nigel Huddleston

    I am afraid that the hon. Member is misrepresenting the situation. In terms of concurrent powers, this is an established part of our devolution settlement. We are not, in these proposals, proposing anything unusual.

    The breadth of our trade agreements means some policy issues will be within the competence of the devolved Administrations. The Government have always recognised that modern trade deals cover an increasingly broad array of policy matters. To enable more technical discussions, of course, we share draft treaty text with devolved Administrations for comment. That facilitates more detailed and comprehensive discussions between Department for International Trade officials and officials in devolved Administrations. There have already been discussions with the Scottish Government on the drafting of secondary legislation. In respect of the amendments, I understand that the Scottish Government wish to make the necessary statutory instrument to amend Scottish procurement regulations.

    On new clause 12 and its consequential amendments, the super-affirmative procedure is used for statutory instruments when an exceptionally high degree of scrutiny is thought appropriate. An example would be remedial orders, which the Government can use to amend Acts of Parliament should the courts find them in breach of the European convention on human rights. It is therefore wholly disproportionate to use that process to approve a minor technical change needed to implement procurement commitments in the Australia and New Zealand deals. The potential unnecessary use of the affirmative or super-affirmative procedure could lead to delays in those agreements entering into force.

    The Government are working to enter the agreements into force to ensure that UK businesses and consumers can benefit from the significant economic advantages as soon as possible. That is, of course, also the desire of the Labour Governments in Australia and New Zealand.

    I hope that I have reassured hon. Members and that they will not push their amendments.

    Gareth Thomas

    It is always a pleasure to listen to the Minister, but it was rather striking that not one Conservative Back Bencher was willing to come along tonight to defend their party’s deal. We have nevertheless had an important debate with important speeches from my hon. Friends the Members for Preston (Sir Mark Hendrick), for Brighton, Kemptown (Lloyd Russell-Moyle) and for Swansea West (Geraint Davies), and the hon. Members for Gordon (Richard Thomson)—whom I congratulate on his appointment—for Chesham and Amersham (Sarah Green), for Strangford (Jim Shannon) and for Arfon (Hywel Williams), as well as important interventions from my right hon. Friend the Member for Warley (John Spellar) and the hon. Members for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), for Totnes (Anthony Mangnall), for Westmorland and Lonsdale (Tim Farron) and for Tiverton and Honiton (Richard Foord).

    Ministers know that there are real concerns about the Australia deal and the precedent that it sets for future deals, and that here have been real concerns across the House about the parliamentary scrutiny of all trade deals, particularly the Australia deal. The behaviour of the previous Secretary of State, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), has only underlined those concerns. Many have noted the huge giveaway of access for Australian farmers and how little we have secured in return in the same space. That is the fault not of the Australian negotiators but of the Government’s own wilful determination to get a deal by an arbitrary deadline, whatever the price.

    The House will inevitably return to the issue of procurement. We will certainly encourage those in the other place to explore the concerns that I in particular have articulated in the debate—particularly as negotiations on CPTPP accession are moving forward. I beg to ask leave to withdraw the motion.

  • Volodymyr Zelenskyy – 2022 Speech to the “In solidarity with the Ukrainian People” Conference

    Volodymyr Zelenskyy – 2022 Speech to the “In solidarity with the Ukrainian People” Conference

    The speech made by Volodymyr Zelenskyy, the President of Ukraine, on 13 December 2022.

    Thank you very much!

    Dear President Macron!

    Mrs. President von der Leyen!

    President Cassis!

    Prime Minister Støre!

    Prime Minister Hun Sen!

    Prime Minister Bettel!

    Prime Minister Fiala!

    Dear heads of international institutions!

    Prime Minister Shmyhal!

    Dear Olena!

    All attendees, ministers, ambassadors!

    I am glad that we are united by such a new format – such a Conference. Because this means that we are united by the ability to defeat Russian energy terror.

    I remember how you, Emmanuel, called me on November 1 and offered to organize such a format. There have already been massive missile strikes against our energy sector. The constant terror of Iranian drones has already begun. Russia has opened a new front against us, trying to provoke a humanitarian catastrophe of the scale of our entire country. Russia needs a blackout in Ukraine to use it as an alleged defeat of Europe and all our democratic resistance.

    In response, we established a new format of cooperation and do everything for the sake of the country, for the sake of Ukrainians, against blackouts, against energy terror.

    What do we have for today?

    Ukraine withstood hundreds of Russian strikes of varying intensity at our energy sector. But now most of our power plants are unfortunately damaged or destroyed by shelling. All hydroelectric power plants, all thermal power plants… God forbid, but imagine what this would mean in your countries.

    One of the Russian strikes provoked the shutdown of all the nuclear units of our nuclear power plants, automation was activated – fortunately, without incident.

    At least one and a half billion euros are needed only for the superficial quick restoration of Ukrainian energy facilities destroyed by Russian strikes.

    Every time, after every Russian strike, we try to restore the technical ability to generate and supply electricity. Nevertheless, every day our energy workers have to disconnect millions of Ukrainians from the supply due to a critical shortage of electricity in the general energy system.

    Right now, about 12 million people in almost all regions and the capital are disconnected from the supply. Unfortunately, this is a typical situation for us. And we expect new Russian strikes every day, which can dramatically increase the number of shutdowns.

    That is why generators and uninterruptible power sources have now become as necessary in Ukraine as armored vehicles and bulletproof vests. This is the only way to protect ordinary people and the social order in the conditions of the Russian bid for blackout. In fact, a decentralized energy generation system parallel to the main one is currently being built in Ukraine. It is being built very quickly, in all regions, by many subjects.

    But still, it cannot meet all the needs of Ukraine.

    Yes, thousands of Ukrainian enterprises, small and medium-sized businesses, social facilities continue to work thanks to generators.

    Yes, hospitals function on generators, hundreds of thousands of jobs have already been saved thanks to generators, the Internet and communications are insured against outages.

    More than 5,000 Points of Invincibility have been opened across the country – special facilities where people can warm up, charge equipment and use communications.

    And I am grateful to all our partners who are already helping Ukraine with the appropriate equipment to maintain such a level of energy sustainability of our state and society.

    But still, the key task is to preserve the main energy system of Ukraine, to guarantee its stable operation despite any Russian efforts to make Ukraine the darkest place in Europe.

    That is why such a format is needed.

    Here and now we have to agree on specific things that will not only help Ukraine endure the winter. They will also prove as clearly as possible to any anti-democratic and anti-European forces, and primarily to Russia, that Europe has learned to prevent catastrophe and protect its people.

    Ladies and Gentlemen!

    I will be as specific as possible now.

    First. We need several categories of equipment – these are transformers, equipment for restoring high-voltage networks, gas turbine and gas piston power units. Ukrainian representatives who are present at the Conference can inform you about all the technical characteristics of this request.

    Second. At least until the end of this heating season in Ukraine, we need emergency support from the European energy system. That is, the supply of electricity from the countries of the European Union to Ukraine. The volume is up to two gigawatts.

    For this to become possible, a decision of ENTSO-E to increase import capacity is necessary. Again, all the technical details of such a decision will be presented by our government officials who are present at the Conference.

    Such electricity supply support could cost around 800 million euros in current prices. This is significant. But significantly less than a blackout in Ukraine could cost us all. Therefore, I urge you to make one of the concrete results of this Conference the approval of all decisions for such support of Ukraine with the supply of electricity from EU countries.

    Third. By analogy with the observation missions of the IAEA, which have been agreed to be sent to all nuclear power plants of Ukraine, we call on the European Union to send special missions to the objects of critical energy infrastructure, which are involved in the energy supply of Ukraine and on which the stability of our entire region directly depends. Such EU missions could become a reliable factor in stabilizing the situation and proper international control.

    Fourth. Due to the destruction of power plants by terrorists, we are forced to use more gas this winter than expected. As a result, we need support in the purchase of about two billion cubic meters of gas. It is also a necessary element of our stability that needs your leadership.

    Fifth. Another practical result of this Conference could be an agreement on the financing of the project, which Emmanuel has already started talking about, on the purchase of LED lamps for Ukraine. This may not seem significant to someone. But 50 million such lamps will save about one gigawatt of electricity. Given that the average deficit in our power system is about two and a half gigawatts, this project could also help significantly.

    And sixth. We need a special permanent mechanism for coordinating efforts – the Paris Mechanism. This will make it possible to provide timely and effective responses to every challenge of Russian energy terror. Unfortunately, we do not yet have such a modern air defense system that can shoot down Russian missiles and drones one hundred percent, however we can create such a decision-making system that can one hundred percent make Russia’s terrorist tactics meaningless.

    When the energy stability of Ukraine is guaranteed for the entire winter period, when it is guaranteed that there will be no new waves of mass migration from our country to your countries, it will also be guaranteed that no strikes, no blackouts, no search for weapons somewhere out there in Iran or elsewhere will help Russia.

    Russia will have to think about how to stop aggression. Finally stop.

    Energy is one of the keys to this. I believe that this key will be in our hands, in your hands.

    Thank you for your attention!

    Once again, thank you, Mr. President, Emmanuel, for organizing this Conference. I count on very specific decisions.

    Thank you!

    Glory to Ukraine!

  • Volodymyr Zelenskyy – 2022 Speech to G7 Leaders

    Volodymyr Zelenskyy – 2022 Speech to G7 Leaders

    The speech made by Volodymyr Zelenskyy, the President of Ukraine, on 12 December 2022.

    I thank you, Mr. Chancellor, for your words of support and for convening this summit.

    For the opportunity to thank all of you, dear friends, for not losing Ukraine this year! Just as for not losing Europe and the world based on fair rules.

    Millions of our people are fighting and working for the sake of freedom. It is thanks to your support that Ukrainian invincibility has gained so much strength.

    Today I want to acknowledge the leadership of each of you as well as the solidarity of the entire Group of Seven.

    I am grateful to the United States and all Americans for the large-scale military and economic support as well as the support with sanctions. The US has united the free world and established a solid foundation of our security solidarity. Thank you, Mr. President! Our phone call yesterday was substantive, thank you very much.

    I am grateful to Canada and all Canadians for making every Ukrainian feel the sheer power of our friendship. Thank you for solidarity in understanding that Russian aggression is a no local event, but a truly global threat – a threat to everyone on Earth. Thank you, Mr. Prime Minister!

    I am grateful to Japan and every Japanese for the strong leadership in Asia for the sake of protecting the freedom and basic norms of international law, as well as for the solidarity over the point that no threats brought by the Russian war should ruin the lives of our nation and all other nations of this planet. Thank you, Mr. Prime Minister!

    I am grateful to the United Kingdom and all of His Majesty’s subjects for being the first in Europe to provide Ukraine with lethal weapons, for solidarity in building a powerful army, and for the unwavering belief in the victory over evil. Thank you, Mr. Prime Minister!

    I am grateful to France and all the French people for reinforcing our artillery and for supporting Ukraine both nationally and at the level of local communities. I am grateful for your solidarity in the vision of the European future – free and equal for all the nations of our continent. Thank you, Mr. President!

    I am grateful to Italy and all Italians for the timely and unhesitating provision of security and financial support. I am grateful to you for solidarity in respect for human dignity, because Russia wants to deprive all free nations of their dignity, and not only in Europe. Thank you, Madam Prime Minister!

    I am grateful to Germany and every German for the wonderful IRISes and for everything that helps us save people and maintain social stability despite Russia’s terror. No matter how Russia would blackmail us, we are confident about German solidarity in condemning the genocidal policy of Russia remaining strong. Thank you, Mr. Chancellor!

    Mr. Michel! Mrs. Ursula! I thank the European Union, you personally and every EU country for uniting our community in an unprecedented way and gradually providing Europe with even more strength and confidence that freedom in Europe will not yield to any tyranny. This year, Ukraine gained the status of the EU candidate and received the much-needed economic assistance and support with sanctions from Europe. I believe we will continue to cherish this solidarity of values.

    Dear colleagues!

    I am asking you to preserve this level of solidarity for the next year. Russia continues its aggression – and therefore, the support for Ukraine must be continued. Next year just as it was this year. But we must also take long-awaited steps to accelerate the coming of peace. Let me name those steps. There are three of them.

    The first is a new force.

    Unfortunately, Russia still has the advantage in artillery and missiles. This is a fact. These capabilities of the occupying army are the ones to fuel the Kremlin’s arrogance. But we can overcome this.

    Ukraine needs modern tanks – and I ask you to provide this defensive capability to us. It can be done right now.

    Ukraine needs constant artillery support with guns and shells. It will not allow escalation from the Russian’s side.

    We need more rocket artillery and more long-range missiles. The more effective we are with such weapons, the shorter the Russian aggression will be.

    The second is a new resilience.

    We must maintain financial, energy and social stability next year. Should we not lose in these aspects, we will win in everything else.

    The reliable protection of the Ukrainian energy sector from Russian missiles and Iranian drones will be the protection of the whole of Europe, because with these strikes Russia provokes a humanitarian and migration catastrophe not only for Ukraine, but for the whole EU.

    I call upon you to increase the assistance to Ukraine in the field of gas. The terror against our power plants forced us to use more gas than expected. This is why we need additional support over this particular winter. We are talking about the volume of about two billion cubic meters of gas – that has to be procured additionally.

    We must be more active with reconstruction. It will clearly demonstrate the true capabilities of the democratic system to the whole world.

    The third is a new diplomacy.

    Ukraine has always led the negotiation process and did everything to stop Russian aggression. Now we feel the opportunity to use diplomacy to bring the liberation of all our people and all our territories closer.

    At the G20 summit in Indonesia, I proposed the Ukrainian Peace Formula – 10 clear points that are quite realistic to implement. For the sake of peace, peace in Ukraine, in Europe, and in the world. You are all aware of those 10 points. I am grateful to you for supporting this initiative.

    I propose to convene a special summit – Global Peace Formula Summit – to determine how and when we can implement the points of the Ukrainian Peace Formula. I invite you, as well as other conscientious countries, to show your leadership in the implementation of the Peace Formula as a whole or some specific points in particular.

    I propose Russia to take a concrete and meaningful step towards a diplomatic settlement, which is being mentioned by Moscow so regularly.

    Very soon we’ll have holidays celebrated by billions of people. Christmas – according to the Gregorian calendar or the New Year and Christmas – according to the Julian calendar. This is the time for normal people to think about peace, not aggression. I suggest Russia to at least try to prove that it is capable of abandoning the aggression.

    It would be right to start the withdrawal of Russian troops from the internationally recognized territory of Ukraine this Christmas. If Russia withdraws its troops from Ukraine, it will ensure a lasting cessation of hostilities.

    I hope that you will support our call. Because it is in a global interest. This is part of our Peace Formula. The occupier must leave. It will certainly happen. I see no reason why Russia should not do it now – at Christmas.

    The answer from Moscow will show what they really want – further confrontation with the world of finally cessation of the aggression. The one who brought the war upon us has to take it away.

    In any case, no matter what Russia responds, it is we, the free world, who should keep the initiative just as it was throughout this year – since February 24th.

    I thank you for your attention! I thank Germany for this very effective chairmanship and I believe that Japan’s chairmanship will be absolutely effective as well.

    Thank you once again for your historic support!

    Glory to Ukraine!

     

  • Geraint Davies – 2022 Speech on the Australia and New Zealand Trade Bill

    Geraint Davies – 2022 Speech on the Australia and New Zealand Trade Bill

    The speech made by Geraint Davies, the Labour MP for Swansea West, in the House of Commons on 12 December 2022.

    It is a great pleasure to follow the hon. Member for Arfon (Hywel Williams), who has underlined what this debate is about. The Government are in the dock for selling out British interests, in particular farming interests, at a time when Parliament has basically been blindfolded in the process, unable to see the mandate or the negotiations, or to properly ratify the outcome.

    What we have before us is an array of amendments to address the impact of these deals, which have already been signed, on all our sectors—in particular on agriculture, procurement and the NHS. Those are fundamentally important sectors. The amendments, which I support, have been tabled because it is still unclear how much damage has been done by these deals. They were done in haste and rushed through the door, which put us in a weak bargaining position. Any concession was simply just given. We do not know the detail of how much harm has been done. The former Secretary of State for Environment, Food and Rural Affairs said that we gave far too much for far too little, which I would call the understatement of the year. The Government’s projection is that GDP will grow by 0.1% in 15 years, but we do not really know the details.

    What we do know though, to take the perspective of a Welsh sheep farmer—we heard from the hon. Member for Arfon—is that Australian sheep farms are on average 100 times the size of Welsh ones. We know too that in New Zealand and Australia they only focus on three or four main breeds of sheep. There are also economies of scale—New Zealand focuses on ensuring that nearly all sheep give birth to twins, as opposed to three lambs, which might kill the mother, or one, which would be less productive. We also know that their shelf life and mechanisation of food processing are far in advance of ours.

    We know, therefore, that our farmers face a major threat, at a time when exports to the EU have been stifled by unnecessary barriers as a result of a botched Brexit deal, thanks to which we have seen a 15% reduction in overall trade. So it does not look too good; and what is more, the Government have signed up to giving Australia and New Zealand unlimited access in 15 years, in terms of beef and lamb. What precedent does that set for food exports when we do a deal with Brazil, for example?

    With the war in Ukraine, we are now in a world where people are quite rightly concerned about food security, yet we are basically undermining our domestic production, at a time when Russia has increased its overall agricultural production by 15% since invading Crimea and facing sanctions. Basically, we are saying that we will turn our back on the EU and do a deal with Australia, undermining our own farmers. Is that a good idea? Surely, we need to be producing more healthy food locally, at a time when one in four people in Britain is in food poverty.

    As it happens, I take a particular interest both in food, as a member of the Environment, Food and Rural Affairs Committee, and in trade, as the rapporteur for the Council of Europe, charged with ensuring that democracy, human rights, the rule of law and sustainability are embedded in agreements, but none of those are embedded in the Australia and New Zealand agreements. On democracy, there is no facility for the mandate, the negotiations, or ratification to be properly looked at, hence all these amendments. On due diligence, there is none when it comes to climate change, human rights and so on, where we can find best practice. For example, the EU deal with New Zealand refers to the rights of indigenous people, the Maori people, and various issues about due diligence in supply chains. Our deal does not have those things because it was rushed forward.

    Trading further afield is more environmentally damaging, at a time when we should be concerned about climate change. We also know that Australia is the worst carbon emitter in the world, at 17.5 tonnes per person, compared with the 4.8 tonnes claimed for Britain in terms of production—for consumption, it is 8 tonnes per person. I hope we will have an opportunity to superimpose a carbon border tax in due course and that this deal will not rule that out.

    Sir Mark Hendrick

    I have recently returned from visiting Singapore on behalf of the International Trade Committee, where it was mentioned to us that Singapore has done a green economy agreement with Australia, which looks at emissions as part and parcel of that trade package. Given what my hon. Friend has said about Australian emissions, could he perhaps comment on that?

    Geraint Davies

    My comment would be that Britain should be taking a lead, as it claims to, on mitigating climate change. The way to do that is to take best practice, from Singapore or anywhere else, and hardwire that into current and future agreements. That has not been done, because our economic, climate and other interests have been thrown to one side in order to just tick a box and say that we have got a trade agreement.

    Lloyd Russell-Moyle

    My hon. Friend mentioned carbon border adjustments. Is it not the truth that both Europe and America are now leading on these discussions, because they understand that trade deals without proper carbon and border adjustments are just ways of exporting jobs out of countries—degrading those countries, their workers and the environment in one fell swoop?

    Geraint Davies

    I am certainly a big supporter of what the EU is doing on carbon border adjustments, for instance ensuring that we have a level playing field for steel made in south Wales, which emits half the carbon of Chinese steel, and that there is an incentive to invest in green production domestically. The EU has taken a lead and we need to catch up. The United States is subsidising green industry and, as my hon. Friend will know, there is a tension between the two different strategies when it comes to ensuring a sustainable and greener future for all.

    Turning to procurement, clearly it is not exactly a new idea that big multinational corporations will use unelected, private, often secretly held tribunals to try to fine democratically elected Governments who want to pass laws to protect the environment and public health. We saw that in investor-state dispute settlements. Most obviously, at the moment, we have got the Energy Charter treaty, which binds countries for 20 years to being sued if they try to pass laws to help the environment.

    People will know that Germany, France, Poland, Spain and others are trying to withdraw from that treaty, although we have not heard much for the United Kingdom—because of its fossil fuel interests, I assume. My question is: why, when we know those companies will be quick on the draw in taking us to court and suing us, do we allow them a way in on procurement, so that when they do not get the business with the NHS, they can suddenly sue us? That concern is covered in new clause 1, which I very much support.

    Finally, it is obvious that, out of the carnage of the botched Brexit deal, while obviously we want deals with Australia and New Zealand, the haste with which we have approached these deals has left us in a situation where they get all the benefits and we face a prospective loss. That is absolutely disgraceful maladministration from the Government, and I support the amendments to try to mitigate some of the harm done by their hopeless negotiation.