My Lords, in moving Amendment 84 I will also speak to Amendments 87 and 88 in this group. These are all probing amendments. We have now arrived at the trade information clauses. They are much less exciting than some of the other clauses we have debated earlier. At first sight they seem pretty straightforward. We want the Government to have a successful trade policy in our new existence as an independent trading nation again, and the Government clearly need information to inform that policy, so what is not to like?
Clause 7(1) says that HMRC may “request” information from businesses in connection with exports. Nothing in Clause 7 or the Bill more generally requires businesses to comply with such a request. In the other place, my right honourable friend the Minister of State for Trade Policy was clear that trade information was to be provided voluntarily. Amendment 84 would add a new subsection after Clause 7(3) to ensure that the regulation-making power in subsection (3) cannot be used to make the provision of information compulsory.
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In the other place, the Minister stated that information could be provided in
“tick boxes on existing tax returns.”—[Official Report, Commons, Public Bill Committee, 25/6/20; col. 298.]
This made me question whether the trade data that the Government would want could in fact be provided by ticking boxes. And, if tax returns were used, would it be possible for a business not to provide the information without incurring the penalties that HMRC can impose in relation to tax returns?
My purpose in tabling the amendment is to ensure that the Government do not impose additional burdens on business by the back door. I have no basic objection to businesses being required to provide information to the Government to assist them with policy formulation, but I do have a serious objection if this imposes significant burdens on businesses without at least a commensurate benefit and proper justification before taking such a power.
My experience is that HMRC routinely underestimates its impact on businesses; noble Lords should read the reports from your Lordships’ Economic Affairs
Committee on making tax digital if they are in any doubt about that. That is why I believe that it is important to establish by this probing amendment whether the provision of information can be compelled or is genuinely voluntary.
Amendments 87 and 88 are somewhat different. They are attached to Clause 8, which empowers HMRC to disclose information for trade function purposes. Those functions are defined in subsection (2) as
“the analysis of the flow of traffic, goods and services … the impact, or likely impact, of measures or practices relating to … such flow … the design, implementation and operation of such measures”.
So far, so good. The opening words of that subsection say that these functions are not exclusively defined. My Amendment 87 omits “among other things” in order to pose the question to the Minister: what on earth would those other things ever amount to, and why can the Government not provide a clear and comprehensive definition in this Bill?
Lastly, subsection (3) prohibits the use of information other than for the trade purposes set out in subsection (1), and also prohibits further disclosure. It goes on to say that HMRC can give consent to such use or disclosure. My Amendment 88 would remove this ability to consent. The clause contains significant offences and penalties in the case of wrongful disclosure but, if HMRC can consent to its disclosure, the protection offered to businesses or individuals is, in effect, meaningless. So can my noble friend the Minister explain why HMRC should be given this power in relation to information that has been collected for trade policy purposes? If it is necessary for HMRC to have this power, can my noble friend explain how its use will be scrutinised?
I beg to move.