Lord Fox (LD)

My Lords, on the point made by the noble Baroness, Lady Bennett, about not being obtuse, it is compulsory to be obtuse on this subject. I again welcome the Minister to the Dispatch Box, with him having made a very accomplished maiden speech on the previous occasion which I boldly attempted to interrupt. This job may not have taken much selling to him by the Government, but I hope they told him, as I said to his predecessor, “What you’re really going to have to do is statutory instruments with a group of people who contracted Stockholm syndrome having been in the same room with the Conservative Front Bench literally for weeks”. I congratulate him and welcome him to his first statutory instrument on this. As we have heard, the purpose here is to continue to extend the powers of the Trade Act 2021 beyond the end of the year. Why would you let a power lapse when you could keep it going? The answer I would infer is “just in case”. I am sure that no government would accidentally let go of powers, so that is perhaps the motivation. However, it is with these powers that the Executive partially exercise the royal prerogative which they use to maintain control over trade deals—what we sign, what they contain and how they are implemented. Having happily spotted that the noble Lord, Lord Lansley, would speak, I did not prepare a whole bunch of detailed questions on this statutory instrument. I did, however, prepare a broader critique of the scrutiny process that exists for trade deals and their like. As the noble and learned Lord, Lord Goldsmith KC, who chairs the International Agreements Committee, remarked in the front piece of a recent report on trade scrutiny, “Treaties have the potential to raise matters of very great public importance”, including trade agreements, but also other treaties such as the Rwanda treaty and the Chagos Islands agreement. He went on: “Government has the power to negotiate and conclude treaties but it is important that Parliament can hold it to account effectively for its actions”. That is where I am going to focus my speech; I am not going to challenge the validity of this statutory instrument, but I want to look at the scrutiny gap a little more, because it is a way of welcoming the Trade Minister to a really important matter. I hope that he will see the need for helping to improve Parliament’s grasp on what is happening. When this statutory instrument was debated in the Commons, my friend the MP for Richmond Park—that is the Richmond in Surrey—Sarah Olney, gave the process a clinical demolition. She noted up front: “The Liberal Democrats strongly opposed the Trade Act 2021, as it failed to provide sufficient parliamentary scrutiny of future trade agreements and risked weakening the UK’s high standards on health, food, labour and the environment”,—[Official Report, Commons, Second Delegated Legislation Committee, 4/11/25; col. 5.] and we heard a little of that just now. The then Bill passed through the House of Commons in 2020 without amendment, despite cross-party efforts to introduce greater transparency and accountability. I tabled quite a few amendments in the Lords, as did others, but Sarah tabled amendments requiring transparent investment courts for investor disputes. This was to ensure human rights considerations in trade negotiations and to mandate assessment of trade agreements. Those, along with other opposition amendments—such as protections for the NHS and food standards—were voted down by the then Government. We believe that trade deals have been weaker without these imperatives. We warned that the omission could lead to deals that lower standards or allow foreign influence over our public services. Now, as then, we believe that the 2021 Act grants excessive powers to Ministers, excluding MPs and your Lordships from meaningful involvement. It also provides no guarantee that UK standards, public services or democratic accountability will be protected. The Lib Dems are not unique in calling for greater scrutiny. The most recent report from your Lordships’ International Agreements Committee—the one on which the noble and learned Lord, Lord Goldsmith, commented —is entitled Treaty Scrutiny in Westminster: Addressing the Accountability Gap. The news release for the report states that it “concludes that the current statutory process for parliamentary scrutiny of treaties under Part 2 of the Constitutional Reform and Governance Act 2010”— or CRaG, as it is affectionately known by its devotees— “is a weak and insufficient mechanism for securing meaningful accountability. The process has not changed significantly since the 1920s”. Indeed, the Grimstone undertaking is about the most significant change that has happened since 1920. That is not hyperbole; it is a fact. Of course, in the 1920s, treaties had rather less impact on domestic affairs—they did not reach into public services or domestic standards in the way they do now—so we believe that too much discretion is given to the Government to act in ways that enable them to evade detailed scrutiny. The news release further states that the report “acknowledges that there is a balance to be struck between the flexibility the Government needs to negotiate and conclude treaties in the national interest and the transparency and scrutiny which the public interest requires. However, while the treaty scrutiny procedure codified in the 2010 Act”— that is, CRaG— “places some limits on the autonomy which the Government enjoys in international relations, the legislation tilts the balance too far in the Government’s favour. The report finds that the UK scrutiny process is weak in comparison with most other countries … The report concludes there is a powerful case for legislative reform and calls on the Government to engage seriously in a dialogue with Parliament … about this. Recognizing that legislative reform will take time, however, the report also recommends steps to make scrutiny under the current framework more effective provided the Government shows sufficient … will”. I commend the report to the Minister; he should have a look at it because it is, obviously, very important to the portfolio that he now holds. We Liberal Democrats will not vote against this draft statutory instrument, of course, but we will continue to call for reforms to ensure transparency and fairness in, and public scrutiny of, future trade policy. I look forward to the Minister’s reflections, as a newcomer, on trade policy and its scrutiny.