National Security (State Threats) Bill
It is not only diplomats. It may well be NGOs delivering humanitarian aid and people who have to come across states or their designated proxies in particular cases.
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National Security (State Threats) Bill
I think it is to cover all potential actions that individuals may undertake that are okay; they can assure themselves that an activity is okay, even if it involves a designated state, if it is not prejudicial to the safety or interests of the UK. Many humanitarian organisations are worried about being inadvertently caught in the designation process, and the prohibited purpose test is there to give assurance in those contexts.
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National Security (State Threats) Bill
The Bill does accord with the European convention on human rights, international law and all our obligations. The prohibited purpose test is there precisely to give assurance to bodies like the one that the hon. Member mentioned, so that there will not be any dubiety about whether they can engage with the organisations that they must work with as part of their core job.
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National Security (State Threats) Bill
Yes. This is the test that delivers that assurance.
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National Security (State Threats) Bill
I think it is about consistency. The Bill was drafted to try to mirror—albeit in a slightly different context—the Terrorism Act provisions, while fitting into the National Security Act’s provisions, so that we do not have a complicated range of tests. Amendment 7 relates to defences and sentencing. Essentially, the hon. Member for Rutland and Stamford (Alicia Kearns) wishes to increase the prison sentence for actively assisting to 25 years from the current 14 years. The idea is that 14 years would very much fit in with the sentences under the National Security Act, and we would not end up with a complex range of sentences for quite similar offences. One could increase both, if we were minded to do so, but the point about the introduction of designation in the Bill is that it is trying to fit into the National Security Act, which has been working quite well, rather than our having a whole range of different sentences for very similar offences.
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National Security (State Threats) Bill
I note the hon. Lady’s point. Amendment 10 would “create an offence of engaging in conduct in preparation for committing, or assisting another to commit, an offence relating to a designated body.” It is not necessary, because a person who engages in conduct of any kind, including preparatory conduct, that is intended to assist a designated body in carrying out UK-related activities would be caught by the Bill’s provisions. The hon. Lady talked about what she called a loophole; she said that the Bill does not cover attacks inspired by a designated body. Her amendment 13 would create a new offence for self-directed acts inspired by a designated body, but we do not believe it is necessary. The test for the assisting offence in proposed new section 17B of the National Security Act is whether conduct is intended to assist a designated organisation, or whether the person ought to have known that their conduct was likely to assist the organisation. The person does not need to be tasked or directed by the organisation to commit the offence, so those who are inspired to do things, rather than being asked or told to do things by the designated body, are caught. With amendment 8, the hon. Lady seeks to capture conduct that occurs outside the UK but is planned within the UK. Again, we believe it is unnecessary. If planning takes place in the UK, it is already caught in the Bill, under the offence in proposed new section 17B of assisting a designated body. That offence refers to conduct of any kind, and it will be an offence to plan something in the UK that takes place outside the UK if it materially assists a designated body in carrying out activities that are prejudicial to the safety or interests of the UK—the prohibited purpose test. That could cover someone in the UK who assists a designated body in its work, done overseas, to target an ally of the UK, so the amendment is unnecessary. Amendment 14 would create an offence relating to the dissemination of publications that encourage support for a designated body. The conduct that the amendment seeks to address is already covered by the new offence of supporting a designated body. I think the hon. Lady wanted people to be criminalised for wearing clothing or displaying flags or similar symbols linked to a designated body. The Bill does not ban the wearing or carrying of an image, because we cannot ban what might be worn by a foreign diplomat, but if somebody is supporting or promoting the hostile activities of a proscribed body in any way, they will be caught by the new support offence. I hope that assures the hon. Lady that that issue is covered. New clauses 5 and 6 would give effect to other recommendations made by Jonathan Hall by creating new powers to seize travel documents, and to allow police to apply for serious crime prevention orders in relation to offences committed under this legislation. We are committed to legislating on those recommendations and, as my right hon. Friend the Home Secretary announced on Second Reading, we will do so as soon as parliamentary time allows.
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National Security (State Threats) Bill
I have a great deal of respect for my right hon. Friend, as he knows, but in order for that to be the case, this Government would have to decide to designate the Cuba Solidarity Campaign. Obviously I cannot talk about what may or may not be designated should the Bill get on the statute book, but I think he is winding himself up into a bit of a tight knot.
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National Security (State Threats) Bill
New clause 3, tabled by the hon. Member for Cheltenham (Max Wilkinson), would require the Secretary of State to bring forward regulations designating the IRGC within a month of this Act coming into force, but the exercise of these powers under this Bill will have significant implications for national security and foreign policy, and it is right that they should be exercised independently by the Secretary of State on the basis of expert advice, including from the security and intelligence agencies. That is what this Bill allows, and putting these designations on the face of the Bill would be a very difficult way to effect the change, so the way to do this is the way that the Bill sets out. The hon. Member for Cheltenham’s new clause 4, which would “require the Independent Reviewer of State Threats Legislation to assess the adequacy of the powers introduced by this Act twelve months after its passing”, is already essentially covered by the Bill’s provisions, because they would be subject to part 3 of the National Security Act. The independent reviewer of state threats legislation has to carry out an annual review into the operation of its provisions, and is also empowered by part 1 of that Act to review any other such things he or she sees fit. Amendment 2 would require the draft affirmative procedure to be used for regulations removing a designation. He is right that such regulations should receive the proper parliamentary scrutiny, and the Bill already provides that such regulations are subject to the draft affirmative procedure. The use of the negative procedure is limited to very minor technical changes, such as the addition of aliases. My right hon. Friend the Member for Hayes and Harlington (John McDonnell) asked whether it would be possible to proscribe a particular group, and gave a particular example. The test is whether the body is engaged in “foreign power threat activity”; it is a high bar, and it targets organisations that pose a real threat to the UK. I cannot imagine for one minute that my right hon. Friend would be involved in any of those. Amendment 1, tabled by the hon. Member for North Norfolk (Steff Aquarone), would provide further examples of conduct that would be considered a material benefit, and he spoke about what those might be. Obtaining material benefits from a foreign intelligence service is an existing offence under section 17 of the National Security Act, so I do not think the further examples of conduct in amendment 1 are needed, as that conduct is already caught by the provisions in the Bill.
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National Security (State Threats) Bill
I beg to move, That the Bill be now read the Third time. This Bill will create crucial new powers to allow the Government to keep pace with the evolving threat picture that Members from all parties referred to in the previous debates. The Bill will now move on to the other place, where I am sure colleagues will give it rigorous scrutiny while ensuring that its passage continues as smoothly as possible.
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Engagements
Q14. I thank the Deputy Prime Minister and others for their comments about Jo Cox; our thoughts are with her family today, as they are every day. May I also thank the Harlow Town Park volunteers, who I joined this morning in repairing the iconic zig-zag bridge in Harlow? Harlow will be the site of one of the Government’s new youth hubs—another example of this Labour Government investing in our town. I believe passionately that Harlow’s young people have so much potential. Does the Deputy Prime Minister agree? Does he also agree that this funding will unlock that potential?
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Steel Tariffs
May I start by giving the apologies of the Minister for Trade, who is in Turkey, negotiating further trade deals for British industry? On 19 March, the Government set out the UK’s plan to introduce a robust new trade measure from 1 July. It will limit tariff-free steel imports, as compared with the steel safeguard measure. Any imports above the levels in the measure will face a 50% tariff. Protecting primary steel production is crucial to the UK’s critical national infrastructure and defence. That is why we have published a long-term plan for steel and are introducing a new trade measure countering the unprecedented and damaging effect of global overcapacity. It is simply wrong that only 30% of the steel that we need in the UK is made in the UK. Steel is essential for advanced manufacturing and engineering, and the interests of the domestic steel sector and downstream industry are best served together. A thriving steel industry strengthens supply chain resilience for downstream businesses and limits their exposure to global supply shocks. We need to balance the need to protect domestic steelmaking with maintaining secure, reliable supply chains for downstream businesses. Imports will remain important. The Government have engaged extensively with businesses across a range of sectors, including manufacturing, when developing this measure. Indeed, last week, I held a roundtable with downstream industry, together with my hon. Friend the Minister for Trade. We, and the Secretary of State, also heard from several colleagues about the concerns of businesses in their constituencies. We are listening carefully to companies throughout the supply chain as we finalise the measure. We have introduced a transitional arrangement; the new measure will not apply to goods under contract before 14 March 2026 and imported between 1 July and 30 September 2026. We have introduced a carry-over mechanism to give importers more flexibility. We will review the measure after 12 months to ensure that it remains fit for purpose. We are also engaging intensively with the European Commission on our respective steel measures, and are working to find a bilateral solution that protects vital UK-EU steel trade. This engagement reflects the unique structure of our trading and security relationships and the interconnectedness of our supply chains, but we need to be clear: if we do not act, we will not have steel-making in the UK. The US, Canada, the EU are all acting; we must too.
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Steel Tariffs
In line with your guidance about constructive debate, Mr Speaker, I am sure we will have some constructive debate now. The shadow Minister has raised some legitimate questions, and I am very happy to provide the answers. I think we all recognise the importance of the steel industry and the downstream sector—there is definitely a point of agreement there. The point about timing is a critical one, and on the face of it, the request for a delay is not unreasonable. The important thing to recognise is that our steel safeguard measure expires on 30 July. It is not possible for us to extend that measure; it has lasted for eight years, and under World Trade Organisation rules we cannot extend it, so new measures are required. Of course, the EU is introducing a new measure on 1 July, and the US and Canada have also introduced new measures. If we were not to introduce a measure, the UK would become the global dumping ground for subsidised steel. That would be the end of our primary steel industry, so something needs to be done. In designing the measures, we have been very careful to ensure that they are targeted at those steels that are made, or could be made, in the UK. However, the categories are quite broad, and we acknowledge that some steels that are not, and could not be, made in the UK could be swept up in them. That is the point of the quotas. Since our draft measures were published, we have consulted extensively with industry—I have known Steve Morley for a very long time, and I listen very carefully to what he says, but more than that, we have carried out extensive consultation. The Minister for Trade and I have met the downstream group on three occasions, and I have met the Aerospace Growth Partnership, the Construction Leadership Council and many other businesses. We will be publishing our final measures in line with our EU negotiations when they are completed, in time for 1 July.
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Steel Tariffs
I thank the Chair of the Select Committee for both his work and that of his Committee on this issue. I recognise the concerns that were raised in his Committee earlier this week. On the point about timing, though, while I recognise the uncertainty this causes for business, it is impossible for the Government to announce the final arrangements until our discussions with the EU have concluded. I am reliably informed by those people with knowledge of negotiations with the EU that these things tend to run to the wire, so while I appreciate that it creates uncertainty, we need to wait until that point. However, the feedback from industry about quota levels has been heard by Government, and we are looking at those quota levels. That was the point of publishing the draft measures in the first place.
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Steel Tariffs
I thank the hon. Member for her constructive engagement on this issue with me over the past few weeks. The nub of her question is, I think, about domestic suppliers and the availability of domestic supply. As I said, the measures have been designed to cover those steel categories that are made or could be made in the UK. She raises the particular issue of speciality steels. We all understand the position with Speciality Steel UK in Stocksbridge and Rotherham. That business is going through administration, and it was impossible for it to compete in the UK while there was an influx of subsidised steel. The hon. Member asks about the conversations I have had with industry. I will tell her what I said to the Aerospace Growth Partnership. When I met it this morning, I said that clearly we would not want to start from this point, but that it is about choices. This Government have decided that we want to have a full aerospace supply chain, including our own speciality steels production. That is a different choice from the one that the previous Government made when they were approached by industry, offering to co-invest in that site and keep it open. They rebuffed all those responses, because their view was, “Leave it to the market, let the steel plants close.” We are making a different choice.
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Steel Tariffs
I am particularly concerned about the allocations for galvanised steel, as my hon. Friend says, particularly given the country’s reliance on the ZODIAC galvanising line in Llanwern. That is a critical part of our steel and our national infrastructure. It is the only process route that we have to make car auto body and various construction and coating steels. A lot depends on that plant, and I am considering the issue seriously.
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Steel Tariffs
I have just been alerted to the fact that I said the current measures will expire on 30 July. It is actually on 30 June. It was hopefully correct in the context, but I am happy to correct the record. On the specific point raised by the hon. Gentleman, these measures are clearly designed to support primary steel production. That is their purpose and what they have been designed for. It is about getting the balance right so that we support that level of primary production in the UK while dealing with the issues with the downstream steel producers so that they can get the steels they need within the UK or perhaps more broadly within the EU, as we discuss our market arrangement measures with it.
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Steel Tariffs
I thank my hon. Friend for the strong work that she has done advocating for businesses in her area. Across the whole west midlands, there has been strong support from west midlands Members of Parliament for their businesses, and quite right too. She may recall from the roundtable discussion we had with the Secretary of State and the Minister for Trade earlier this week that her concerns are being heard and taken into account, and I want to reassure her about that. I neglected to mention earlier the engagement we have had with the British Constructional Steelwork Association, which she mentioned. I reassure her that I and my officials are talking to the BCSA, too.
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Steel Tariffs
I can give a specific example, if that would be helpful. A number of Members have mentioned the specific situation in Canada, for instance, and I have looked carefully at the situation there. Fundamentally, it has a completely different tariff regime, which would not necessarily be straightforward or legal to apply in the UK. However, I continue to look at that. I reiterate the point that this measure is designed to support the steel industry. If other concerns fall outwith that, they need to be raised and dealt with appropriately.
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Steel Tariffs
I thank my hon. Friend not just for her question, but for the invitation to visit Stourbridge and have this discussion with businesses in her constituency. I am looking forward to that, and I thank her. To reiterate the point that I made about the quotas, the Government have published draft quotas and we are engaging in consultation. We listen carefully to her representations and those of others, but the final quotas, when they are published, will ultimately be dependent on that consultation and the negotiations we are having with the European Union.
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Steel Tariffs
As I mentioned to my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), the Chair of the Select Committee, I am sympathetic about the uncertainty. It is a difficult position for businesses to be in. To be clear, the reason for the uncertainty is that the publication of the final measures is dependent on market access negotiations with the European Union. It is to be expected that the negotiations with the European Union will go very close to the deadline.
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Steel Tariffs
The design of the steel measures, because of the different steel grades, means that the combined nomenclature codes fall into large buckets, so although the Government have targeted the measures at steels that are or could be made in the UK, some that are not or could not be made in the UK end up being caught up in the measures. That is the point of the quotas. It is important that we ensure that those quotas are in the right place, including for businesses such as Walsall Wheelbarrows. I have slightly lost count of the number of wheelbarrows that I have, but I will be sure that the next one I buy is from Walsall.
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Steel Tariffs
The hon. Gentleman and I have engaged significantly on the industrial base in Yeovil, and I know how important it is to his local community. This takes us back to the point about steels that are or could be made in the UK. The issue raised by the hon. Gentleman and by many other people primarily involves the Speciality Steels plant. When we designed the trade measures, we were expecting a very quick move into new ownership, but it has taken about seven months longer than expected, and I am aware of the concern that that is causing businesses. I am, however, unapologetic about our determination to create the right market conditions, so that the production of speciality steels in the UK is a viable business proposition.
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Steel Tariffs
I will endeavour to do so, Madam Deputy Speaker. Let me say to my hon. Friend that I will do exactly what I have done since the day these draft measures were announced: engage with Members on both sides of the House and with all businesses. I hope Members will feel that I have endeavoured to do that. We have had had cross-party discussions and I have had many meetings with businesses, trade associations and individual colleagues, and I am determined to continue to do so.
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Steel Tariffs
I thank the right hon. Gentleman for making that link with defence. I know that he cares about it deeply, as I think we all do, but that has not really come out until now. He also mentioned energy. As he will know, we increased the supercharger rebate from 60% to 90%, and the British industrial competitiveness scheme will come into force next year—but there will be a refund for this year as well. That will affect many of the downstream businesses. However, I believe—as, I am sure, does the right hon. Gentleman—that the crucial point about defence is that we need the capability to make aerospace deals in the UK, and our measures are designed to ensure that that happens.
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Steel Tariffs
This issue, which my hon. Friend has raised with me before, relates primarily to category 4 products. We heard from my hon. Friend the Member for Newport East (Jessica Morden) earlier about the importance of that in Llanwern. I am very concerned about category 4, and it is one of the issues that I am looking at.
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Steel Tariffs
The hon. Gentleman has put his finger on exactly the issue with which the Government are dealing at the moment, which is the interaction between our own measures and our own market and the EU measures and the EU market, and the market access that we can negotiate between the two. Unfortunately, that is the issue that is causing uncertainty for businesses such as those that he mentioned.
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Steel Tariffs
I am afraid that I am the ultimate pragmatist. I would not have wanted to start here, but starting here, I am determined that we will do the best we can.
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Steel Tariffs
As soon as the measures are finalised, the Minister for Trade, my hon. Friend the Member for Rhondda and Ogmore (Chris Bryant), will want to report them to the House in the usual way.
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Steel Tariffs
I thank my hon. Friend and Hanson Springs for their interaction with my officials. I know that the specific issue of 13 or 14-metre lengths of rod is a problem for him, but I can assure him that in all our negotiations, whether with the EU, India, Turkey or the United States, this Government are putting British industry first.
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Steel Tariffs
I shall be happy to meet businesses in Northern Ireland, as I have met businesses throughout the United Kingdom.
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Steel Tariffs
I am familiar with the issue of kitchenware, which is very similar to some of the other issues that have been raised. If a particular kind of steel falls within a tariff area, not because it is made or could be made in the UK but because it is grouped in that way as part of the trade measures, the quota is designed to resolve that. If the business in question feels that there is a problem with setting the quota, I ask my hon. Friend to write to me. Alternatively, representatives of those businesses could come and meet my officials.
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Steel Tariffs
I should be happy to meet the hon. Lady and representatives of businesses in her area. As the Minister for Industry, I am responsible for ensuring that we have adequate productive capacity to defend the nation, and in that respect these steel measures will provide the steel that we need for defence.
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Steel Tariffs
There are issues with category 1, and I am looking at that. As I mentioned before, the uncertainty is unfortunate, but my hon. Friend will understand why it is there. I am aware that some businesses have been told by their stock holders that all their steels will be subject to a tariff, but that is not always the case. I can be generous and say that stock holders are perhaps also suffering some uncertainty and want to protect their own businesses, but I ask them to look very carefully at the codes. If they need some help with that, my officials stand ready to support them.
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Steel Tariffs
I can go further than understanding and offer some practical advice, if that is helpful. The first thing to check is whether the steels that the hon. Member mentions are made, or could be made, in the UK—the “could be made” is important. He is shaking his head, so I assume that they are not made in the UK but are caught in a category group simply because the groups are so broad, and they might represent a small part of that group. That is the purpose of the quota. If the hon. Member’s businesses feel that the quota is too small for their needs and for other businesses in the sector, they should urgently get in touch with me.
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Steel Tariffs
My hon. Friend mentions categories 14 and 27, and perhaps her businesses could share their views with me. She says that we must communicate better. I am absolutely determined to communicate as much as possible, so if she gets her businesses to get in touch with me and my officials, we will take their representations into account.
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Steel Tariffs
If it was simple, we would do it. Of course, it is not that simple, because, as I have described, the category groupings for steels are much broader than individual grids. There are 20-odd categories, covering a whole range of grids, and that is why the quota size is particularly important. If there are issues with the quotas, we must deal with them. The hon. Gentleman says that he has not had a reply to his letter, for which I apologise on behalf of the Secretary of State. I can assure him that I will get my officials to look into that immediately.
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Steel Tariffs
The issue there is category 14, because we want to protect the stainless production that we have in the UK. I am not particularly familiar with exhaust systems manufacturing, but it largely uses flat stainless steel, which we do not make in the UK. As I mentioned, it is about making sure that we have a sufficient quota for that business, so that it does not need to pay the tariff. If my hon. Friend could share the information with me, I would be very grateful.
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Steel Tariffs
I can indeed give a straight answer. Welsh steel sites will see money from the steel fund when the businesses that own them make a successful application for the money. Some £1 billion of the fund currently sits in the National Wealth Fund, awaiting such proposals. Tata Steel is particularly relevant to Trostre. I cannot say whether there is a project under consideration for Trostre, but I do know that Tata is bringing forward ideas. If the hon. Lady would like to talk to colleagues at Trostre and Tata Steel, they may well be able to share any ideas with her.
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Steel Tariffs
I do not think I have a visit to Llanwern in the diary, but perhaps I will do soon enough. I am certainly happy to take another look at those cases. If there is an opportunity for my officials to have a discussion with the businesses, I would be very happy to set that up.
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Steel Tariffs
The hon. Gentleman has put his finger on the issue that we are all grappling with: how we manage the transition. I recognise the importance of the business in his constituency producing secure fencing. There is a supply chain in the UK that could support that, leading from British Steel through the wire drawers, but he is right: it is about managing the transition. Unfortunately, we have a hard stop at the end of this month, and we need to put something in place beyond that and manage it over the course of the next few years.