European Union (Approvals) Bill — House of Commons, 2017-07-04
Topic: Domestic Commerce
William Roffen Esterson (Labour, Centre-left): I think we are in danger of wandering away from the subject—[Interruption.] I have no idea why Conservative Members find that funny, but there we are. Obviously, the hon. Gentleman and the Democratic Unionist party are particularly exercised by that matter, among others, but I dare say that this is something that the Minister can pick up on, perhaps on another day Competition delivers benefits to consumers, to businesses and to society as a whole. Competition policy therefore contributes to boosting jobs, growth and investment. The Commission pursues this objective by enforcing competition rules, sanctioning breaches and promoting a competition culture internationally. The proposed agreement will improve the administrative co-operation between the European Commission and the Canadian Competition Bureau. Ultimately, consumers in the European Union and in Canada benefit from competition policy and from the sanctions that contribute to a stronger deterrence of anti-competitive behaviour. More effective competition enforcement results in more open and competitive markets in which companies can compete more freely, enabling them to generate wealth and to create jobs. It also gives consumers a better choice of products at lower prices This new agreement is substantively the same as the existing one, which has been in place since June 1999. This agreement just adds new provisions on the exchange of information. Even after we have left the European Union, UK companies operating in the EU will still be subject to the jurisdiction of the European Commission in anti-trust and merger investigations, as all non-EU countries are. Information on UK companies will still be transferable after Brexit. After Brexit, the European Commission will still share information about UK companies with Canada but will not be bound to share the information about the UK it receives from Canada with the UK. I would like the Minister to address that point This agreement relates to administrative co-operation between the European Commission and the Canadian Competition Bureau, so public consultation and an impact assessment were not considered necessary by the Government, and, as the Minister has now said on a number of occasions, she does not think that there will be financial implications. The Government have noted in the explanatory memorandum that this new agreement will have no impact on UK law and no financial implications The European Scrutiny Committee did not at first clear the proposal. The Chair of the Committee, the hon. Member for Stone (Sir William Cash), who I dare say will make a contribution to the debate, requested further information about whether and in what way the United Kingdom could participate in the agreement following withdrawal. The Minister responded to the Committee on 24 October, stating that "the Government will ensure that the UK is in the strongest possible position to cooperate on competition matters with our international partners...There are a number of options for securing the means for international cooperation…As the form of any cooperation agreement will depend on our negotiation with the EU and negotiations with other countries such as Canada it is too early to say what exact form international cooperation will take." That raises a number of questions about transitional arrangements in the longer term. In response to that letter, the Committee subsequently cleared the documents That brings us to the question of what arrangements will exist after we leave the EU. The Minister referred in her letter to seeking to extend the current arrangements. For how long does she think that will be necessary? What guarantee is there that it would be possible to extend them? UK companies operating in the EU will still be covered by this agreement. The difference will be that, while the European Commission will continue to share information with Canada about UK companies, that information will not be shared with the UK unless a further agreement is reached. She said in her letter that any co-operation agreement would depend on negotiation. How long does she think those negotiations are likely to take? What will she be seeking to achieve in them? We have now reached the point at which Ministers need to start answering the questions about transitional and longer-term arrangements for these and many other matters There is no doubt that competition is vital to our economy, to the success of our businesses and to the prosperity of the people of our country. Encouraging healthy competition is vital. The role of national Governments, and of international co-operation, is to create a fair market, not just a free market. It is also to avoid anti-competitive practices, including the creation of cartels through mergers and acquisitions which distort the market; the undercutting and exploitation of workers and smaller businesses; the use of zero-hours contracts where workers have little choice; the treatment of smaller businesses by banks that will only fund those with liquid assets; and the delays in the payment of invoices by larger firms. Those are all examples of anti-competitive and exploitative practices in which Governments—nationally and internationally—should find ways of intervening to set a level playing field. Governments should be a partner to business and to the workforce. They should encourage those wishing to start and grow a business. They should be investing, and they should have the right strategy for infrastructure and skills. They should have an industrial strategy. Underpinning all that should be the right approach to competition, which is what this part of the Bill is all about. We need answers to the questions about what happens after we leave the EU and about what transitional arrangements will be in place. The nature of the Minister’s comments in her letter to the European Scrutiny Committee show just how complex these questions are, and it is time we started to get some answers.