HL Deb 04 December 1990 vol 524 cc171-3

7.50 p.m.

The Minister of State, Department of Trade and Industry (Lord Hesketh)

My Lords, I beg to move that the Bill be now read a second time.

This Bill repeals Section 9(3) of the Import, Export and Customs Powers (Defence) Act 1939. That subsection provides that the Act will expire on, such date as His Majesty may by Order in Council declare to be the date that the emergency that was the occasion of the passing of this Act came to an end". By repealing this subsection, the 1939 Act is made permanent.

The Import, Export and Customs Powers (Defence) Act 1939 is the last major piece of the emergency legislation introduced at the beginning of the second world war to remain in use. It gives powers to the Secretary of State for Trade and Industry to make orders regulating or prohibiting the import or export of goods to or from the United Kingdom and enabling licences to import or export goods to be granted. It also provides for the forfeiture of goods imported or exported contrary to an order.

The power to control imports and exports is essential to implement many important government policies. The export control powers have been used for many years to restrict trade for strategic reasons. In the light of recent developments we may be able to envisage a time when the use of these powers is no longer necessary, but for the present the continuing need is only too obvious. Other examples of the use of the powers are to implement international treaty obligations such as the Nuclear Non-Proliferation Treaty, and to help prevent countries from developing chemical and biological weapons; to prevent certain exports which could prejudice national security; and to prevent the export of goods likely to be used for terrorist purposes or internal repression. The powers of the Act are also used to prevent exports of antiques and other items which are considered to be an important part of the national heritage and to implement the voluntary restraint agreement on steel exports.

The powers to control imports are just as important to support foreign policy objectives and to help safeguard public security—for example, by regulating the import of firearms—although they are used mainly to enforce internationally agreed trade protection measures. Controls which have become unnecessary can be removed easily. For example, in the light of developments in Eastern Europe, COCOM partners announced in July a major relaxation in controls which has been implemented under the powers of the 1939 Act. I hope that further relaxations in export controls will follow.

Experience has shown that the powers work efficiently and effectively without placing unnecessary burdens on business. They are well tried and tested. The 1939 Act gives us the powers to react quickly and flexibly in response to new situations as they arise. It is important to realise that this Bill is a technical measure. The exercise of powers under the Act is not affected. However, it is now unsatisfactory to control imports and exports under powers derived from an Act which will expire when an Order in Council is made declaring that the emergency that was the occasion of the Act's passing is at an end. We should therefore make the Act permanent now.

To sum up, in practice this Bill changes nothing. The powers conferred by the Act have been operating well for many years, and it is important that they should continue to do so in the future. This Bill, by making the 1939 Act permanent, ensures that they will. I commend the Bill to the House.

Moved, That the Bill be now read a second time.—(Lord Hesketh.)

7.54 p.m.

Lord Williams of Elvel

My Lords, the House will be grateful to the Minister for introducing the Bill. We agree that it is a technical Bill and we have no difficulty with it. However, I should like to make one or two comments.

I understand that it is the last major piece of the emergency legislation introduced at the beginning of the second world war now remaining in use. There is today no emergency of the nature envisaged in 1939 but there are other emergencies which His Majesty or Her Majesty, as may be, might declare in the context of the section which the Government seek to repeal. I understand that the powers of the Act have been used to prevent exports of all kinds of things other than strategic materials. For instance, articles of an artistic nature, antiques and so on come under the provisions of the Act. I wonder whether it would not be sensible to try to draft a Bill somewhat more up to date than the 1939 Act. I leave that point with the Minister.

It appears—I say no more than that—that the Government do not have the powers which we would wish them to have to control exports to Iraq. That has come to light against the background of the Gulf crisis. What other pieces of legislation remaining in the legislative cupboard need to be looked at and redrafted in an up-to-date form? It should not require a new crisis for us to take what I would regard as slightly spatchcock measures to improve our legislation.

Having said that, the Opposition support the Government in their intention to control exports in a proper manner. We support the Second Reading.

On Question, Bill read a second time; Committee negatived.

Then, Standing Order 44 (No two stages of a Bill to be taken on one day) having been dispensed with (pursuant to Resolution of this day), Bill read a third time, and passed.