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Subsidy Control Bill - Schedule 1 - The subsidy control principles
13 December 2021
Lead MP
Kirsty Blackman
Debate Type
Bill Debate
Tags
EconomyStandards & Ethics
Other Contributors: 20
At a Glance
Kirsty Blackman raised concerns about subsidy control bill - schedule 1 - the subsidy control principles in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
I beg to move, That the clause be read a Second time. This motion seeks to advance Schedule 1 of the Subsidy Control Bill, which outlines fundamental principles governing subsidy control. The purpose is to ensure that subsidies do not unduly distort competition and trade within the UK internal market. It sets forth guiding rules to assess whether a subsidy may harm fair competition or public finances, emphasising transparency and proportionality in state aid.
Kirsty Blackman
SNP
Aberdeen North
The speaker supports the principles outlined in Schedule 1 as they are essential for maintaining a fair and competitive internal market. These principles help prevent subsidies that could harm businesses or consumers across different regions of the UK.
Jim Shannon
DUP
Strangford
Emphasised the importance of regional Administrations' input in the subsidy decision-making process, highlighting the critical role of environmental schemes and farmers’ subsidies for Northern Ireland.
Kevin Hollinrake
Con
Thirsk and Malton
Suggested that clause 37(6) already requires businesses to keep records of received subsidies, making local authority checks potentially difficult. Also noted that the definition in clause 70(7) covers both direct and indirect interests.
Kevin Hollinrake
Con
Thirsk and Malton
He supports transparency in subsidy declarations citing an example from the US where increased visibility led to funds being returned voluntarily, indicating a positive impact on accountability.
Richard Fuller
Con
North Bedfordshire
Agrees that predictive analytics could be more effectively applied if there was greater transparency in subsidy data, which would enhance the understanding and improvement of Government expenditure efficiency.
Emphasises the cost-effectiveness of a transparent system where all subsidies are digitally recorded, reducing administrative burdens for both granting bodies and recipients.
Argues that there should be more transparency in public funding, highlighting an inconsistency between publishing minor expenses and withholding larger subsidy details.
Kirsty Blackman
SNP
Aberdeen North
Supports the idea of quicker uploading of subsidies to databases for better monitoring, especially in cases where subsidies might cause issues due to incorrect application or distortion.
Deidre Brock
SNP
East Renfrewshire
Raises concerns about the UK Government's decision to include agriculture in the subsidy control regime, arguing that it does not fit neatly into standard subsidy control regimes and could constrain Scotland’s ability to tailor future policies. Emphasises the importance of financial support for agricultural development in achieving policy objectives such as food production and addressing climate challenges.
Jim Shannon
DUP
Strangford
[INTERVENTION] Sympathises with Deidre Brock's argument, highlighting concerns in Northern Ireland regarding food security and export markets. Emphasises that the Ulster Farmers Union is also committed to retaining these considerations.
Kevin Hollinrake
Con
Thirsk and Malton
Supports amendments 1 and 8, emphasising scrutiny and transparency. Argues for lowering the reporting threshold from £500,000 to £500 due to potential fraud and cronyism. Cites National Audit Office estimates of £26 billion lost in coronavirus loan schemes and the importance of whistleblowers identifying inappropriate subsidies. Suggests that publishing information on the database costs only £20,000 annually but provides significant benefits. References the US's lower reporting level leading to a $30 billion return to Treasury due to embarrassment. Criticises the British Business Bank’s reluctance to report on loans below €500,000.
Dwyfor Meirionnydd
Ms Saville-Roberts opposes the Subsidy Control Bill, arguing it undermines devolved competencies and levelling-up initiatives. She supports new clause 1 to exempt devolved agricultural subsidies from subsidy control requirements, emphasising the need for region-specific support in Wales where agriculture is vital to local economies. She criticises the Government’s approach to developing the bill as lacking consultation and scrutiny from devolved governments.
Sarah Olney
Lib Dem
Richmond Park
Ms Olney supports transparency in subsidies, advocating for a lower threshold of £500 to improve oversight. She introduces new clause 2 to require an annual report detailing climate change impacts of subsidies granted that year. She stresses the importance of aligning subsidies with net zero goals and ensuring long-term impact on reducing emissions.
Stephen Kinnock
Lab
Aberavon
Agrees that the strategic purpose of the Bill should be to support areas of greater economic deprivation, highlighting a lack in current provisions.
John Penrose
Con
Weston-super-Mare
Questions the practicality and potential for legal challenges under Seema Malhotra's net zero amendment, suggesting it could lead to confusion around compliance.
Kevin Hollinrake
Con
Thirsk and Malton
Critiques the feasibility of determining what is consistent with net zero targets under amendment 16, suggesting it could result in increased legal challenges.
John Penrose
Con
Weston-super-Mare
Intervened to caution against the idea that a larger subsidy database is less transparent. Suggested that existing databases may not provide comparable data due to format differences, questioning the Minister's argument on interoperability.
Daniel Poulter
Con
Northampton South
Echoed concerns about transparency and requested a clearer outline of existing transparency tools. Emphasised the need for reassurance regarding how current data can be effectively utilised to ensure transparency.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
While acknowledging the necessity of the Bill, Jonathan Reynolds criticises the current government's economic record for its lack of ambition and coherence. He calls for a long-term strategy that focuses on national objectives such as net zero emissions, urging the Government to use powers in the Bill purposefully rather than through short-term political expediency.
Kirsty Blackman
SNP
Aberdeen North
Expresses significant concerns about including agriculture in subsidy control regimes, the transparency of the subsidy control database, and the lack of emphasis on climate change within key principles. Despite these reservations, Kirsty Blackman voted for amendment 19 to make the Bill marginally better than its current form.
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