Sir Iain Duncan Smith

Sir Iain Duncan Smith

Conservative — Chingford and Woodford Green

Speaking in the House of Commons on 23 February 2026

Debate

Industry and Exports (Financial Assistance) Bill

Contribution

Madam Chair, it is a great honour to speak to this packed Chamber on my amendments, and it was good of you to call me so soon—there are so many people ready to speak. I rise to speak in support of amendments 1 and 2 that appear in my name and those of my colleagues and friends, and it is my intention to press them when the time comes. Why is this necessary? In this particular area, I refer to the hon. Member for St Helens South and Whiston (Ms Rimmer) as my hon. Friend, because she has been stalwart in campaigning against slave labour and forced labour. I bow to her because of her stalwart support. As she said of the amendments, it is vital to safeguard UK export finance and ensure it is legally protected from any exposure to forced labour and human trafficking. We have been through this issue again and again, and I just hope the Minister, who has been a stalwart supporter of this drive, can give me a very clear sign when he responds to the debate that the Government want to adopt the amendments, which are critical to cleaning up what has essentially become a supply chain too often full of the products of slave labour. I am in favour of the Bill, not against it. In principle, I think it is right basically to raise the limit to £20 billion and the aggregate limit to £160 billion to account for inflation. However, it is also absolutely right to ensure that this increased financial firepower is not used inadvertently to fund modern slavery. Together, the amendments would ensure that, if the Secretary of State has reason to believe that modern slavery is present in a recipient’s supply chain, the permitted financial assistance for that export drops to zero—in other words, no finance. For those who may not have followed what has been going on, we had to amend the original Health and Care Bill to stop slavery being used in relation to the NHS. Last year, as the hon. Member for St Helens South and Whiston said, we had to amend the Great British Energy Bill. The Government decided to vote down that amendment, but the Bill was amended in the Lords. Many Labour Members suddenly realised that they were going to be asked to vote in favour of slave labour in the supply chains of Great British Energy, and they said no. The Government then decided not to oppose the amendment, which was absolutely the right thing to do in the end. However, I wish we had not had to go through all of that. Surely there is a moral purpose in all this, which is that if we have any suspicion that a product or a supply chain has elements of forced labour—we know China does it endlessly, and Russia and other countries use it—we should not allow that. When we compare ourselves with the United States, the reality is that its Governments, no matter who is in power, have a very simple rule: it is the responsibility of companies importing to check their supply chains, and the excuse that they did not know or could not find out is simply not good enough, so they are prosecuted if there is slave labour in the supply chain. The amendments are all about trying to shut down another possible loophole, in this case on finance. We believe that UK Export Finance is currently exposed to forced labour. For instance, in 2022-23, it supported businesses involving a subsidiary of AVIC—Aviation Industry Corporation of China—a company sanctioned by the US as a People’s Liberation Army entity. This is something that nobody, if they really ask themselves, on either side of the House wants, and I am sure that the Government do not want it, so the question is: how do we shut this down? I want to quote a couple of really quite senior people in the Government who have spoken about this in the past. The Prime Minister has said: “We’re not going to raise human rights standards if we ignore it in trade.” He said: “It shouldn’t be up to the consumer…to research every product and work out every ethical aspect of it.” I say yes, because of course it is impossible to do so as an individual. When I had a row with Amazon and other companies, I said, “Why don’t you make it easy to find out what the route in your supply chain is? People don’t know where something was made until they actually have the product land on their desk. Why can’t they see that on their computers and be able to identify that?” However, those companies do not want to do that, because they think people may not buy the products. In May 2025, when he was the Trade Secretary, the right hon. Member for Stalybridge and Hyde (Jonathan Reynolds) said: “We are very clear on our position regarding the abhorrent practice of modern slavery. It is a terrible crime which we are determined to eradicate. I assure you that this Government takes this issue seriously and is continuing to assess and monitor the policy tools available to ensure we can best tackle forced labour in supply chains.” The Secretary of State for Energy Security and Net Zero, the right hon. Member for Doncaster North (Ed Miliband), has also said that “our clean power mission should not come at the expense of human rights…This involves confronting human rights abuses, including modern slavery, in energy supply chains”. That is absolutely right, although I do not understand why it took so much for us to get those on his side of the fence to agree, finally, to take such abuses out of the supply chains for Great British Energy, given his stated views.

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