All 35 Parliamentary debates on 3rd Jun 2013

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Timeshare Contracts
Commons Chamber
(Adjournment Debate)
Mon 3rd Jun 2013
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House of Commons

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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Monday 3 June 2013
The House met at half-past Two o’clock

Prayers

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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Prayers mark the daily opening of Parliament. The occassion is used by MPs to reserve seats in the Commons Chamber with 'prayer cards'. Prayers are not televised on the official feed.

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[Mr Speaker in the Chair]

Oral Answers to Questions

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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The Secretary of State was asked—
Steve Barclay Portrait Stephen Barclay (North East Cambridgeshire) (Con)
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1. What recent steps his Department has taken to encourage the sharing of best practice between local authorities on using their powers to repair derelict buildings.

Lord Foster of Bath Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
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My right hon. Friend the Secretary of State apologises for his absence today; he is at an important trade mission in India. However, his thoughts and those of the whole House will be with the family and friends of Drummer Lee Rigby.

Local authorities have powers under planning, environmental and local government legislation to intervene to bring derelict buildings back into use. Our best practice guidance sets out those powers, and we believe that local authorities should use them proactively.

Steve Barclay Portrait Stephen Barclay
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Will the Minister join me in urging councils to use their full powers, especially section 215 notices, to tackle the problem of derelict buildings, given that many of them are not currently doing so? Will he also publish a full list of English councils showing their use of section 215 notices over the past three years?

Lord Foster of Bath Portrait Mr Foster
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I congratulate my hon. Friend on the work he is doing to encourage councils to do more to tackle the blight caused by derelict and empty buildings in town centres such as Wisbech in his constituency. As I said, we have published the best practice guidance relating to section 215 notices, and we will certainly do more, if we can, to encourage councils to use those powers. I will also look at his suggestion.

Jonathan Reynolds Portrait Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
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2. What assessment he has made of the effect of the introduction of the flexible use class of planning permission on the high street.

Nick Boles Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Nick Boles)
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The rise of internet shopping and the changes in people’s working patterns pose immense challenges to the traditional high streets. Our recent relaxation of use class restrictions will support innovation and promote imaginative new uses for existing buildings.

Jonathan Reynolds Portrait Jonathan Reynolds
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We have been working hard in my constituency to improve our town centres by knocking down derelict buildings, encouraging more civic events and attracting new businesses, but we need more powers and tools at our disposal, not fewer. These changes will make it easier for clusters of businesses such as betting shops and payday lenders to open. Why are the Government ignoring public opinion and not allowing local communities to have the powers they need to shape the decisions that affect their local high streets?

Nick Boles Portrait Nick Boles
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First, the relaxation relates to temporary use for only two years, so it is more about innovative models of business than about established businesses that would have substantial start-up costs. Secondly, local authorities already have powers, known as article 4 directions, to set aside any permitted development that they think inappropriate for a particular part of their area, and I encourage them to use them.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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High street businesses rely on footfall; indeed, that is their lifeblood. Does my hon. Friend believe that his planning reforms will give sufficient help to the high street businesses in my constituency to increase their foot traffic and ensure that they thrive?

Nick Boles Portrait Nick Boles
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My hon. Friend is absolutely right. We in this House and the people in the town halls cannot entirely predict what will work in the different town centres of the land. The best way to do this is to make it easy for new businesses to set up and pull in the people who will then benefit the existing businesses in our town centres.

Roberta Blackman-Woods Portrait Roberta Blackman-Woods (City of Durham) (Lab)
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Given what the Minister has just said, will he explain why he has taken away from local councils and local communities the power to shape their high streets? Who does he think will benefit from the deregulation of use classes?

Nick Boles Portrait Nick Boles
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Labour through the ages—including, indeed, the father of the right hon. Member for Leeds Central (Hilary Benn)—famously believed that the Government could run the economy and decide how we should be competitive. Government Members believe that it is business and entrepreneurs who can decide how best to achieve thriving high streets and town centres, which is why we are determined to make life easier for them, as Mary Portas recommended in her review.

Roberta Blackman-Woods Portrait Roberta Blackman-Woods
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I am not sure the Minister answered my question, so I will answer it for him. The people who are likely to benefit are payday loan companies, whose presence on our high streets has already increased by about 20% in the past year. Why does he think that those companies need a further helping hand, rather than our communities who are crying out for the powers to diversify their high streets according to local needs determined by them?

Nick Boles Portrait Nick Boles
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It is classic, is it not? “Determined by them” means determined by public servants and councillors, not by entrepreneurs and the people they want to attract as customers. There is still, as there has always been, an ability to suspend a permitted development that is not right for an area. That is why Barking and Dagenham council is consulting on an article 4 direction, which we welcome. That is exactly the right use of the law, which existed under the Government whom the hon. Lady supported.

Pamela Nash Portrait Pamela Nash (Airdrie and Shotts) (Lab)
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3. What assessment he has made of the average change in income of working families as a result of changes to council tax benefit.

Brandon Lewis Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
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The impact assessment for the Government’s policy framework for localising council tax support is available on the Department’s website, but it is very important to note that the design of local schemes, and the assessment of their impact, is the responsibility of the local authorities.

Pamela Nash Portrait Pamela Nash
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The changes to council tax benefit and the subsequent cuts have come in at the same time as the freezing of child benefit and working tax credit, the linking of benefits to CPI rather than RPI and, of course, the introduction of the bedroom tax. How can the Government justify this multiple attack on low-income working families on the same day as bringing in a tax cut for millionaires?

Brandon Lewis Portrait Brandon Lewis
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Unfortunately, we have to bear in mind the background to this, with spending on council tax benefit doubling under Labour and currently costing taxpayers £4 billion a year—around £180 per household. Welfare reform is vital to tackle the deficit left by the last Labour Government. Under the last Administration, more was being spent on this than on defence, education and health combined. That simply has to stop. The reforms we have put in place to localise council tax support give local authorities the power and the incentive to deliver local growth and get people back into work.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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Does the Minister accept that many of the families who have to pay extra council tax are the very same families who have to pay the bedroom tax? Many of those families will simply not be able to meet the extra demands placed on them. Given the limits faced by local authorities on the amount of the discretionary housing benefit they can award, does the Minister accept that local authorities and housing associations will eventually be placed in the inevitable position of having to take enforcement action against families whose only crime is that they simply cannot afford to pay?

Brandon Lewis Portrait Brandon Lewis
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Actually, I do not accept that. With the greatest respect to the Chairman of the Select Committee on Communities and Local Government, I think that the important point of these changes is that they incentivise local authorities to see economic growth and get more people into work. It is against the local authorities’ interests to penalise people. They should be wanting people to get into work to drive economic growth. This change gives them the incentive to do that, and through the Localism Act 2011we have given them the freedom to do just that.

Julian Huppert Portrait Dr Julian Huppert (Cambridge) (LD)
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4. What steps he plans to take to increase the supply of local authority and social housing.

Lord Foster of Bath Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
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With £19.5 billion of public and private investment, our affordable homes programme is on track to deliver 170,000 new affordable homes by March 2015. In addition, the introduction of self-financing for local authority housing provides authorities with flexibility to increase supply.

Julian Huppert Portrait Dr Huppert
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I thank my right hon. Friend for that answer, but will he consider also instructing the Homes and Communities Agency to allow councils and registered social landlords to switch grant funding from sites where progress has been delayed to other sites where the prospect of an early start on the ground is better, so that we can have the social and council housing that we so desperately need?

Lord Foster of Bath Portrait Mr Foster
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I am sure my hon. Friend will welcome the funds made available for 717 new affordable homes in his area. I know he is concerned about the Trumpington Meadows development. The Homes and Communities Agency is in discussion with the developers and we entirely accept my hon. Friend’s suggestion that, in the appropriate circumstances, the HCA could transfer the funding to another developer in the nearby locality.

Ann Coffey Portrait Ann Coffey (Stockport) (Lab)
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Stockport Homes is rated as one of the best housing organisations in the country, but it is not going to be allowed to bid for funds from the 2013-17 affordable homes guarantees programme, which I understand will be open only to those classified as being in the private sector, such as independent housing associations. This will adversely affect the building of badly needed affordable homes in Stockport. Will the Minister meet a delegation of all Stockport MPs so that we can discuss our concerns with him?

Lord Foster of Bath Portrait Mr Foster
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I would be delighted to meet such a delegation. I remind the hon. Lady that on 26 June a further announcement will be made under the spending review, when further funds will hopefully be made available that might help her constituents.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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As a member of Kettering borough council, may I share with the Minister the fact that the council has one of the best records in the whole of the east midlands on the delivery of affordable housing? For seven of the last eight years, it has provided an additional 100 affordable homes a year, and in three of those years, a level twice that.

Lord Foster of Bath Portrait Mr Foster
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I am delighted to congratulate people in Kettering and the neighbouring area on that. I hope that the new homes bonus is providing an additional incentive, and we have of course recently brought on stream the £10 billion loan guarantee scheme, which will help to provide funding for further such homes.

Jack Dromey Portrait Jack Dromey (Birmingham, Erdington) (Lab)
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The all-party Treasury Select Committee, the Governor of the Bank of England and the International Monetary Fund have all expressed concern that the Government’s policies will not build the homes our country needs. With the comprehensive spending review but three weeks away, the shadow Chancellor persuasively argued this morning that the Government should reject the economic illiteracy of austerity, which is pushing up the costs of failure through additional borrowing and soaring housing benefit bills. Does the Housing Minister agree that the time has come to invest in badly needed social and affordable homes to rent or buy, creating jobs and apprenticeships, bringing down the costs of failure and getting our economy moving?

Lord Foster of Bath Portrait Mr Foster
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I think that the whole House will have been somewhat amused by the cheek of the hon. Gentleman, given that under his party’s Administration we saw a reduction of 421,000 in the number of affordable homes. This Government have introduced measures to reverse that trend, and we hope to announce further measures in the near future.

Adrian Bailey Portrait Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
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5. What plans he has to enable external organisations to have greater involvement in the operation of fire and rescue services.

Brandon Lewis Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
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The hon. Gentleman may have not realised, or may have forgotten, that the last Government’s Fire and Rescue Services Act 2004 allowed external organisations to become involved in the provision of fire services. For my own part, I am helping fire and rescue authorities to explore the best way of delivering their services to meet the needs of their communities.

Adrian Bailey Portrait Mr Bailey
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What the Minister said in his letter to the Regulatory Reform Committee rather conflicts with the answer he has just given. The fact is that, as part of his drive to make further savings, he wants to remove—as he said in his letter—the legal obstacles to the privatisation of the emergency fire services. Given that West Midlands fire service is already two years into a programme to cut its budget by nearly a quarter, and has lost nearly 10% of its firefighters, my constituents will regard with alarm—

John Bercow Portrait Mr Speaker
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Order. I apologise for interrupting the hon. Gentleman, but we need a question with a question mark: one sentence.

Adrian Bailey Portrait Mr Bailey
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Will the Minister assure my constituents that these moves will not result in a privatised, non-publicly accountable emergency fire service?

Brandon Lewis Portrait Brandon Lewis
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If the hon. Gentleman looks at the Hansard reports of what has been said over the last few months, he will see that I have made clear on more than one occasion that we will not privatise the fire service, notwithstanding the scaremongering of members of his party. He should also note—if he is not already aware of it—that West Midlands fire service is currently advertising for firefighters.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
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Does my hon. Friend agree that, rather than carping at chimeras and imagined proposals for privatisation, Opposition Members might do better to study seriously a report by Sir Ken Knight—arguably the most distinguished and experienced operational commander of his generation—which sets out serious and important proposals for efficiencies in the organisation?

Brandon Lewis Portrait Brandon Lewis
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It is somewhat surprising—although I suppose that it ought not to be—that the Opposition seem to have wanted to create a campaign to prevent something that was never going to happen in the first place.

My hon. Friend is right about Sir Ken Knight’s report. It is very well written, and there is much in it for us to note. I look forward to the responses that we shall receive from the sector itself and from authorities more generally. We have already held a teleconference on the report, and I shall return to the subject more formally later in the year.

Andy McDonald Portrait Andy McDonald (Middlesbrough) (Lab)
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20. Given the Minister’s statement to the Communities and Local Government Committee on 15 May that Cleveland fire authority had decided not to proceed with mutualisation, will he confirm that documentation relating to that mutualisation will not be blocked by a section 35 exemption, but will be available to the public via freedom of information requests?

Brandon Lewis Portrait Brandon Lewis
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What I actually said was that the Government supported mutuals and co-operatives. What Cleveland fire authority does is a matter for the authority itself. I note that the Labour party does not support mutuals now, which is surprising given that a Labour authority wants to mutualise. I commend the authority for having looked at new ideas, but it really is for Cleveland fire authority to decide how it should proceed.

Chris Williamson Portrait Chris Williamson (Derby North) (Lab)
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It seems from the Minister’s answers that either he is in denial or he does not understand the measures that he is seeking to introduce. As for the Ken Knight review, on page 74 he explicitly recommends privatisation. [Interruption.] I am afraid he does. [Interruption.] The hon. Member for Bromley and Chislehurst (Robert Neill) ought to look at the report. [Interruption.] I have read it.

Will the Minister now concede that procurement law requires any fire and rescue authority that opts to mutualise its services to re-tender those services periodically and open them up to the private sector?

Brandon Lewis Portrait Brandon Lewis
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I am sorry that the hon. Gentleman was not here for the debate on Cleveland fire authority, when we said explicitly that we were not going to privatise the fire service. We cannot allow something to be introduced that would allow that. We have been categorical about that. To be clear, he should take care to read Sir Ken Knight’s review, which is superb and has given us a lot to discuss but does not make a single recommendation.

John Bercow Portrait Mr Speaker
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Clive Efford. Not here.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
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7. What assessment he has made of progress made by the Portas pilots and their effect on high streets.

Mark Prisk Portrait The Minister for Housing (Mr Mark Prisk)
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This Government believe our high streets need to adapt to changing consumer habits, especially online shopping. The Portas pilots are test-beds for developing new ideas. They are part of a comprehensive approach designed to strengthen local leadership, reform planning and parking policies, help small shops and boost local markets.

Simon Danczuk Portrait Simon Danczuk
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Ministers must acknowledge the huge discrepancy between the £20 million Ministers have spent on the Portas pilots and the fact that the Government have increased business rates for retailers by over £500 million in the past two years. With a recent survey showing that the UK has the highest business rates in the European Union, is it not time that the Government stopped treating the high street as a cash cow to milk to exhaustion?

Mark Prisk Portrait Mr Prisk
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Nothing has changed in rating policy. Ever since 1990, business rates have gone up by the retail prices index—it was the same under the Labour Government. It is right to say, however, that they are fixed overheads. That is why, unlike the Labour party, we have doubled the threshold for small business rate relief and taken a third of a million small businesses out of business rates altogether. I thought that the hon. Gentleman would welcome that.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
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I am a fan of Mary Portas and her recent TV programme showed that Mary and some traders have great vision. However, all too often, the local authority and some traders could not agree on how to proceed. Can we time-limit grants and, if they are not spent, transfer them to areas that will spend them quickly?

Mark Prisk Portrait Mr Prisk
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My hon. Friend is absolutely right. The key—it was referred to by the planning Minister, my hon. Friend the Member for Grantham and Stamford (Nick Boles)—is the strength of local civic and business leadership. That is what we are seeing in the pilots. On the grants, the key is ensuring that the money is spent wisely, not quickly, but I take the point about disputes that block activity on the ground.

James Gray Portrait Mr James Gray (North Wiltshire) (Con)
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I very much welcome the Minister’s strong support for the Portas principles and that of the planning Minister. Does he agree that one sure-fire way of wrecking high streets is to allow local authorities to allow out-of-town shopping centres?

Mark Prisk Portrait Mr Prisk
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Absolutely. That is why we have strengthened planning policy so that town centres come first. Indeed, only last week I was briefly in Cricklade in my hon. Friend’s constituency, which has an excellent range of shops.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
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8. What recent steps he has taken to help pensioners with their council tax bills.

Brandon Lewis Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
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The Government have protected pensioners from any change as they have fixed incomes and cannot reasonably be expected to go back to work. Pensioners who have saved and worked hard all their lives deserve dignity and security in retirement, and we are pleased to be able to introduce that protection and to freeze council tax.

Charlie Elphicke Portrait Charlie Elphicke
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Is not keeping council tax down the best help local authorities can give to pensioners? Does the Minister agree that freezing council tax, which some councils, including Kent, which I represent, have done in the past few years, is the best way to help people on fixed incomes?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend is right. Good councils such as Kent county council have worked hard to drive down their core costs while still investing in their communities and freezing council tax. That is good for all residents on all levels and I congratulate councils such as Kent on doing that.

Ian Mearns Portrait Ian Mearns (Gateshead) (Lab)
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9. What assessment he has made of the potential effect on local authority budgets of increased demand for adult social care.

Lord Foster of Bath Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
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In recognition of the pressure that local authorities face, we prioritised adult social care at the last spending review and provided an extra £7.2 billion to protect access to services that support vulnerable people. It is for local authorities to choose how best to use the available funding.

Ian Mearns Portrait Ian Mearns
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In asking my question, I should point out that I am a vice-president of the Local Government Association.

The LGA believes that local government is facing a financial black hole and that the Government’s severe cuts to local authority budgets are a false economy, as those unable to pay the escalating charges for social care are more likely down the line to require costly hospital or residential care. Before making cuts to local government budgets, did the Secretary of State have any meaningful discussion with the Secretary of State for Health on the potential implications for health service budgets?

Lord Foster of Bath Portrait Mr Foster
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There are constant discussions between the Secretary of State and his colleagues in the Department of Health. As a result of those discussions, we have now not only introduced the £7.2 billion, but are encouraging much closer working between health and social care and are putting in an additional £300 million over two years to facilitate that joint working.

Annette Brooke Portrait Annette Brooke (Mid Dorset and North Poole) (LD)
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I am also a vice-president of the LGA.

Given the pressures that we know are falling very heavily on our councils, particularly along the south coast, what plans does the Minister have to showcase best practice as councils begin to bring health and social care funding together, particularly in terms of early cost-effective interventions?

Lord Foster of Bath Portrait Mr Foster
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My hon. Friend raises a very important point. Many local councils are now working much more closely and effectively with the health services in their area. They are providing greater focus on preventive care and a joined-up approach to the commissioning and delivery of services. Colleagues in my Department and the Department of Health will be working closely to make sure we promote the sorts of successes we are seeing around the country.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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19. Councils across the country are facing budget cuts of 28%, and my council in Oldham is facing a cut of up to 50%. The impact on social care budgets is devastating, as one quarter of local authority budgets are made up of adult social care. The King’s Fund has said that the amount of money the Government have found for social care is absolutely inadequate. On that basis, will the Government support Labour’s call to use £1.2 billion of the NHS under- spend to invest in social care, and make sure that the people who need care are getting it?

Lord Foster of Bath Portrait Mr Foster
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What we are doing is looking at the great success of those local authorities that are coming together to work more effectively to drive down costs. There are very good examples, including west Cheshire, where integrated health and adult care could save £26 million over a five-year period. This integration is delivering better quality care at lower cost.

Nick de Bois Portrait Nick de Bois (Enfield North) (Con)
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10. What steps he has taken to help local authorities deliver sensible savings in their budgets.

Brandon Lewis Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
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With permission, Mr Speaker, I would like to take Questions 10 and 22 together. We have published—

John Bercow Portrait Mr Speaker
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Order. That grouping was not requested and has not been granted—but leave it to the Chair and we will see how we get on. The hon. Gentleman can start by answering Question 10.

Brandon Lewis Portrait Brandon Lewis
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Of course, and apologies, Mr Speaker.

We have published “50 ways to save”, a practical guide to councils on how they can make the most of their budgets through saving money—making sure the pennies get taken care of, so the pounds do as well. We have also developed the transformational challenge award to encourage councils that are looking innovatively at how they can work together, such as St Edmundsbury borough council, which I visited this morning and is saving almost £1 million a year through shared management with its neighbours.

Nick de Bois Portrait Nick de Bois
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I thank the Minister for his answer. Does he also agree that councils should review their portfolio of literature requiring translation, as in the last three years over £40 million was spent on that in England, and my council spent £1 million?

Brandon Lewis Portrait Brandon Lewis
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Yes, absolutely.

Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
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The people of Wirral have had many words to say about the level of cuts to our local authority budget that we have had to face, but “sensible” has not been one of them. May I therefore ask the Minister what conversations he has had with Treasury Ministers about the forthcoming spending review, and what he is going to do to help out areas such as Wirral and the Liverpool city region that took very serious cuts last time?

Brandon Lewis Portrait Brandon Lewis
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We will have the spending review in just a few weeks’ time, of course, but the hon. Lady needs to look at the starting point as well and understand that the amount of money spent per household in Liverpool was among the highest in the country. All authorities, however, should be making sure that they have got the right management cost structures and are spending money on front-line services, not back-office costs.

Rehman Chishti Portrait Rehman Chishti (Gillingham and Rainham) (Con)
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22. In this year’s budget Medway council is using half of its unallocated reserves for a new development fund to support future regeneration. What are the Government doing to encourage local authorities to use their reserves to support local communities?

Brandon Lewis Portrait Brandon Lewis
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My hon. Friend makes a good point. Authorities that are looking carefully at what to do with their reserves are doing the right thing. It is right that they should keep reasonable reserves, but they should not be at too high a level, as they are there to be used. It is absolutely right that authorities look at using their reserves to invest in their communities, to the benefit of their communities both now and in the future.

Stuart Andrew Portrait Stuart Andrew (Pudsey) (Con)
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11. What steps he is taking to promote take-up of the right-to-buy scheme.

Mark Prisk Portrait The Minister for Housing (Mr Mark Prisk)
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Since we reinvigorated the right to buy last year, sales have more than doubled, to the highest level in six years. We believe it is vital to ensure that all eligible tenants know exactly how to exercise their right, which is why this month we are writing directly to more than 500,000 households right across England, including in the metropolitan city of Leeds.

Stuart Andrew Portrait Stuart Andrew
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Enabling families on the estate I grew up on to be the first generation to own their own home really did open up social mobility. Does my hon. Friend share my concern that certain councils have refused to promote the new right-to-buy scheme to their tenants? Does he think that has something to do with the fact that those councils are run by parties that are against home ownership as an aspiration?

Mark Prisk Portrait Mr Prisk
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My hon. Friend puts his finger exactly on the point: some Labour councils and, indeed, some trade unions, which, as we know, bankroll the Labour party, are bitterly opposed to the idea that people should be able to buy their own home. I can tell him that this Government are determined to ensure that eligible tenants who want to exercise their right to buy will be able to do so, and never mind the politics on the other side of the House.

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
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The Government said that the proceeds of these right-to-buy sales will be used to build new affordable homes, but the problem surely is that these are not going to be affordable homes and one direct consequence will be a big increase in the housing benefit bill if any houses actually get built for that kind of rent.

Mark Prisk Portrait Mr Prisk
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I am sorry to disappoint the hon. Lady, but some 844 dwellings have started or been acquired already, and those are affordable homes to rent. So she is wrong on the facts and the Opposition are wrong on their ideology against the principle that people should have the right to buy their own home.

Robin Walker Portrait Mr Robin Walker (Worcester) (Con)
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The right to buy is a very important policy that can hugely enhance social mobility but, unfortunately, in some areas of the country that went through stock transfer early it does not reach our constituents and benefit them. May I encourage the Minister to examine ways of improving the right to purchase and the discounts available under the scheme, and to work more closely with registered social landlords to make sure that my constituents can also benefit?

Mark Prisk Portrait Mr Prisk
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My hon. Friend is absolutely right, in the sense that the protected right that was there is an important issue. We are keeping it closely under review, but I would welcome, as would my colleagues, any input on a local basis.

Stephen Mosley Portrait Stephen Mosley (City of Chester) (Con)
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12. What steps he is taking to help high streets adapt to changing consumer trends.

Damian Hinds Portrait Damian Hinds (East Hampshire) (Con)
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18. What steps he is taking to help high streets adapt to changing consumer trends.

Mark Prisk Portrait The Minister for Housing (Mr Mark Prisk)
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The rise in online shopping means that high streets must change if they are to compete. The Government are actively helping high streets to adapt, but we need councils, landlords and businesses to play their part. That is why we have established the joint future high streets forum so that, together, we can better understand this complex challenge and so reinvigorate our town centres.

Stephen Mosley Portrait Stephen Mosley
- Hansard - - - Excerpts

Chester is bidding to be the city of culture 2017, and we are using our bid to encourage people to use our culture, heritage and festivals, and thus breathe life back into the high street. Does my hon. Friend agree that making shopping an enjoyable experience that is also informative and entertaining is one way of encouraging shoppers back to the high street?

Mark Prisk Portrait Mr Prisk
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I entirely agree with my hon. Friend, who points out that town centres have to adapt so that they are about not just shopping, but hospitality and culture. It is terribly important to get that balance right. I wish to put on the record my encouragement for Chester’s bid to be city of culture, for I know the support he is giving to it.

Damian Hinds Portrait Damian Hinds
- Hansard - - - Excerpts

Amid the adverse effects of e-commerce, one positive recent trend has been the growth of click and collect, with Royal Mail now having announced its own version. What can be done to encourage such schemes and bring a bit of footfall back to the high street?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

Again, my hon. Friend is right in what he says. We must be careful about assuming that online retailing is wholly negative for town centres, as it can be a great opportunity. That is why we have asked the Post Office to be part of the future high streets forum; it has a tremendous retailing network and we want to tap into that expertise.

Nigel Adams Portrait Nigel Adams (Selby and Ainsty) (Con)
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13. What steps his Department is taking to support the reuse of brownfield land and empty buildings. [R]

Lord Foster of Bath Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
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We are investing £235 million to bring back more than 15,000 empty properties into residential use and we have made it easier to convert empty offices into homes. As a result of those and other measures, there are over 40,000 fewer long-term empty homes than there were when the coalition Government formed.

Nigel Adams Portrait Nigel Adams
- Hansard - - - Excerpts

I thank the Minister for that answer. A small number of commercial buildings in the town centres of Selby and Tadcaster have been unoccupied for several years. What are the Government doing to help the local residents and councils to bring those buildings back into use?

Lord Foster of Bath Portrait Mr Foster
- Hansard - - - Excerpts

I am grateful for the work that my hon. Friend is doing to encourage bringing empty properties back into use. I am sure that he will be delighted with the changes to permitted development that we announced very recently. They will make it much easier for what he wants to be achieved.

Andy Sawford Portrait Andy Sawford (Corby) (Lab/Co-op)
- Hansard - - - Excerpts

What steps is the Minister taking to encourage the adoption of community land trusts and mutual home ownership models to bring back into use empty properties and brownfield sites?

Lord Foster of Bath Portrait Mr Foster
- Hansard - - - Excerpts

The hon. Gentleman is absolutely right that those models are a good vehicle for achieving our objective in this area. We are doing all we can to encourage them, just as we are encouraging other voluntary organisations to become actively involved in the programme that we have introduced.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
- Hansard - - - Excerpts

Residents in Pool in Wharfedale, Yeadon, Otley and Adel are dismayed at proposals to build on green-belt land introduced by Leeds city council. Considering the number of brownfield sites and empty homes in the Leeds area, does the Minister understand that concern? Will he ensure that any housing plan from this Government will concentrate on houses to deal with the affordability crisis, not on expensive houses in greenfield areas?

Lord Foster of Bath Portrait Mr Foster
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The national planning policy framework makes it absolutely clear that brownfield sites, unless they are of exceptional environmental value, should be treated as a priority over greenfield sites, but, ultimately, it is for the local authority’s planning department to determine where those houses should go. We are certainly doing all we can to encourage the use of brownfield before greenfield.

Jake Berry Portrait Jake Berry (Rossendale and Darwen) (Con)
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On Friday, I met residents around the Barlow Fold site in Rossendale, which is a playing field given to local residents by the Barlow family for recreation. Can the Minister advise me what steps I can take to stop the borough council and Calico Homes acting in concert to develop that greenfield site, which is vital for the local community, when there are more than 30 brownfield sites in a similar area?

Lord Foster of Bath Portrait Mr Foster
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I encourage my hon. Friend to make use of the community rights that are available to ensure that that land has been registered as a community asset and encourage residents in the area to make use of the opportunities provided by the neighbourhood planning facilities that we have now made available.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
- Hansard - - - Excerpts

14. What steps he is taking to ensure that all tenants have the option to sign up to longer-term tenancies.

Lord Foster of Bath Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Mr Don Foster)
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The initial fixed term under an assured shorthold tenancy is usually six months, but there is nothing to stop a landlord and tenant agreeing to a longer tenancy if that suits them both. I am encouraged to see that Build to Rent investors are keen to promote longer tenancies.

Caroline Lucas Portrait Caroline Lucas
- Hansard - - - Excerpts

In Brighton and Hove, we have an acute housing crisis with a private rented sector that is twice the national average at 21% and a generation of families living in uncertainty with short-term tenancies. Does the Minister agree that longer-term tenancies should be much more widely available and will he consider measures to incentivise landlords to offer longer-term tenancies through changes to capital gains tax and national insurance contributions, which have been proposed by a number of housing charities?

Lord Foster of Bath Portrait Mr Foster
- Hansard - - - Excerpts

We are already considering the proposals the hon. Lady mentions. May I remind her that only 9% of tenancies are ended by the landlord, and that is usually because they want to live in the property or to sell it? The majority of landlords want to keep their tenants rather than face empty properties, but we need to get the balance right between the rights of landlords and those of tenants while maintaining the confidence of mortgage lenders.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
- Hansard - - - Excerpts

Hackney has more people renting privately than owning homes, so this is a big issue. Mortgage lenders are one of the bars to tenants, so what is the Minister doing to discuss that issue with the Treasury and other interested Departments? I should draw Members’ attention to my entry in the Register of Members’ Financial Interests.

Lord Foster of Bath Portrait Mr Foster
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The hon. Lady is absolutely right to say that we need to increase the availability of privately rented accommodation and that is why the Government have introduced £1 billion of funding through various schemes to provide support for that. I suspect that further announcements will be made in a relatively short time.

Tim Loughton Portrait Tim Loughton (East Worthing and Shoreham) (Con)
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15. What assessment he has made of the results of the neighbourhood planning referendums to date.

Harriett Baldwin Portrait Harriett Baldwin (West Worcestershire) (Con)
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16. What assessment he has made of the results of the neighbourhood planning referendums to date.

Nick Boles Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Nick Boles)
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In all three referendums, residents have voted overwhelmingly in support of neighbourhood plans. More than 90% of voters said yes in Eden and Exeter St James and 76% in Thame.

Tim Loughton Portrait Tim Loughton
- Hansard - - - Excerpts

I welcome the Government’s use of referendums in neighbourhood plans, which contrasts with the heavy-handed, top-down regional planning strategies of the last Government. Will the Minister confirm that my constituents in Adur, who face excessive house building on our diminishing green spaces—including, often, on floodplains between the downs and the sea—will be able to influence our draft local plan through the use of referendums, and that the planning inspector will be sympathetic to this manifestation of the localism promoted by the Government?

Nick Boles Portrait Nick Boles
- Hansard - - - Excerpts

I am delighted to be able to reassure my hon. Friend that a plan cannot be found sound unless it has undergone a great deal of consultation by local people; an inspector will expect that to have happened before they examine the plan.

Harriett Baldwin Portrait Harriett Baldwin
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Further to that question, will the Minister help my communities, who are very excited about this neighbourhood planning idea? Once the local plan has been submitted, can they still work on developing their neighbourhood plan?

Nick Boles Portrait Nick Boles
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Yes. It does not really matter what state the local plan is in; it is always possible for communities to work on neighbourhood plans and we strongly encourage that. Whether the neighbourhood plan is made before or after the local plan, it simply has to be in conformity with the core needs identified in the local plan; it can move ahead independently of it.

Nick Raynsford Portrait Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
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17. What recent assessment he has made of the effect of government schemes to increase house building. [R]

Mark Prisk Portrait The Minister for Housing (Mr Mark Prisk)
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First, I commend the right hon. Gentleman on his clear, common-sense leadership during the recent events in Woolwich.

The Government closely monitor the rate of house building. We are on target to deliver 170,000 affordable homes by 2015, and we completed 58,000 of them in 2011-12. We assess that to be one third higher than the annual average delivered in the 10 years leading up to the last election.

Nick Raynsford Portrait Mr Raynsford
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May I draw attention to my interests, and thank the hon. Gentleman for his kind remarks?

The National Audit Office, in a recent report, described the new homes bonus as not only badly modelled, but largely ineffective, yet it is hugely expensive, having already led the Government to commit more than £1 billion, with that commitment rising to over £3 billion in the short term. When will the Government reconsider this measure, which appears to have little or no effect and comes at vast cost?

Mark Prisk Portrait Mr Prisk
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I think that the right hon. Gentleman knows that the National Audit Office also said that it is too early, in the process of the programme, to tell whether there is an impact. He knows that well from his experience as a Minister. It made some suggestions on how the technical modelling could be improved, and we are always open to such suggestions. On the question of a review, it was always our intention, over the coming year, to look to review the programme, as we do all programmes. I remind him and the House that the programme has enabled councils to be rewarded for delivering in the region of 400,000 more homes.

Bob Russell Portrait Sir Bob Russell (Colchester) (LD)
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In support of Government schemes to increase house building, what action is being taken to press Government Departments and public bodies in general to dispose of surplus sites and property? In my experience, the NHS is by far the worst offender.

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

The hon. Gentleman has been a powerful advocate for the hospital site in Colchester about which he and I had a meeting. We have been able to organise the disposal of land for some 33,000 homes. There is much more to do in the health service, across the defence estate, and elsewhere, but this is an important priority, and I understand the point that he raises.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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21. Does the Housing Minister think that there is any connection between my Conservative council spending £860,000 last year on keeping 365 families in bed and breakfast, the fact that it sells off 10% of council homes that become vacant, and the fact that it has planning policies that forbid the construction of any additional social homes?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

The hon. Gentleman is nothing if not parochial. He is one of those people, I am afraid, who cannot see the good side in any affordable housing programme. [Interruption.] I am well aware of his connections with Hammersmith and Fulham; we are constantly reminded of, and excited by, that prospect. We are delivering on the completion of 170,000 more affordable homes; the Labour Government presided over the loss of 421,000 homes.

Baroness McIntosh of Pickering Portrait Miss Anne McIntosh (Thirsk and Malton) (Con)
- Hansard - - - Excerpts

May I invite my hon. Friend to take a joined-up, common-sense approach to the house building programme, and to invite water companies to be statutory consultees, so that they can assess the automatic right to connect for substantially new housing developments?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

My hon. Friend raises a very important point. Clearly, we need to be careful about how that is applied, and the method by which we consult, but common sense is always something that this Government take pride in.

Fiona Mactaggart Portrait Fiona Mactaggart (Slough) (Lab)
- Hansard - - - Excerpts

In his response to my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford), the Minister challenged the NAO report. Is he going to do what the NAO report specifically requires, which is to publish urgently accurate ways in which he intends to conduct a review of whether the system works?

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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T1. If he will make a statement on his departmental responsibilities.

Mark Prisk Portrait The Minister for Housing (Mr Mark Prisk)
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My Department has been making progress in accelerating housing supply, supporting local government and introducing new protections for tenants of mobile homes. A detailed written statement is being provided for the benefit of Members.

The whole House will have been shocked by the appalling murder of Drummer Lee Rigby and the impact that this will have had on his family and on the local community. The Prime Minister will shortly outline the Government’s further actions to tackle extremism, but the response to that attack has brought communities and the nation together. The public are firm in their support for the armed forces and we have seen British Muslims stand shoulder to shoulder with other faiths in their condemnation of this brutality. This Department and this Government will continue to challenge the politics of division, for we are stronger as a community and as a nation when we stand together.

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

I think the whole House will want to associate ourselves with the Minister’s comments.

However, the Minister’s response to my earlier question was disappointing. I am sure I am not alone in that view, and that millions of carers and people who need care will be disappointed. Given that the Association of Directors of Adult Social Services has said that the pressure on adult social care will get much worse with another £800 million being taken out of the system over the next 12 months, why are the Government so complacent, and why are they not prepared to commit to using the underspend from the NHS—£1.2 billion—to invest in social care? That is needed now.

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

With respect to the hon. Lady, we have, as part of the £7.2 billion funding for adult care services, transferred some £2 billion or more from the health service budget to make sure that that joined-up thinking takes place. When one looks at the evidence, it is clear that 78% of the savings made are not on front-line services, but are efficiency savings.

Andrea Leadsom Portrait Andrea Leadsom (South Northamptonshire) (Con)
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T3. The localism agenda is welcome, but what can my hon. Friend say to communities in my constituency, such as Collingtree, whose preference for the location of 1,000 new homes is being undermined, or Helmdon and Sulgrave, whose recent judicial review overturned a wind farm proposal, yet the developers are straight away having another go?

Nick Boles Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Nick Boles)
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On wind farm developments, the Government will be making announcements shortly. On housing developments, the key is for every local community to produce a plan—either a local plan or, even better, a local plan and a neighbourhood plan. That is the way for local communities to get control over the developments that take place in their area.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
- Hansard - - - Excerpts

May I join the Minister in condemning the cowardly killing of Drummer Lee Rigby, and express from the Opposition Benches our deep condolences to his family and his friends on their terrible loss? I echo the Minister’s remarks about my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford). I am grateful to the Secretary of State for the phone conversation that we had the following day, and he and the Government have the full support of the Opposition for the efforts that he and all of us must make to counter the causes of that kind of hateful extremism. Will the Minister tell us what steps he and his colleagues in the Department now propose to take to do this?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

I am grateful to the right hon. Gentleman for those remarks. When people see the House of Commons in unity in this purpose, it is a very important signal that we can and should send. We, with the rest of Government, have been actively involved from the moment this dreadful news broke, looking specifically at local programmes and we will clearly be working with the new taskforce that the Prime Minister will comment on shortly. That will be not only about looking at radicalisation, but how we strengthen communities further. I cite to the right hon. Gentleman the excellent work of Show Racism the Red Card, which has helped some 9,000 young people learn why inclusiveness is crucial.

Hilary Benn Portrait Hilary Benn
- Hansard - - - Excerpts

I am grateful to the Minister for that reply. Getting people to meet one another is the best way to counter extremism, but, as we know, some people have used this tragedy to try to stir up trouble, and we have seen a number of shameful attacks on mosques that have caused great fear in the Muslim community. This clearly must be one priority for the Government’s extremism taskforce that met for the first time this morning. Will the Minister tell us what specific action was proposed at that meeting to stop such attacks happening?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

With respect to the right hon. Gentleman, it would be unwise of me to pre-empt the statement that the Prime Minister is about to make on behalf of the Government, but we are actively engaged in ensuring that communities—those of faith and those not of faith—come together in a range of different activities, so that we can make sure that we bring our communities locally, but also the country, together more closely.

Cheryl Gillan Portrait Mrs Cheryl Gillan (Chesham and Amersham) (Con)
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T4. The Government are consulting on the draft environmental statement for HS2, a project that will adversely affect local communities along the proposed route. The Chilterns, a supposedly protected area of outstanding natural beauty, will be adversely affected, both in my constituency and, I believe, in yours, Mr Speaker. Will the Minister therefore outline his Secretary of State’s strategy for defending those communities and their local environment, and tell us what role he will play in the development of the environmental statement?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

As I think my right hon. Friend will know, a consultation is in hand, and this is something that must be dealt with not only by a single Department but right across Whitehall. I would certainly welcome any local comments that she feels would add to that deliberation.

Mary Glindon Portrait Mrs Mary Glindon (North Tyneside) (Lab)
- Hansard - - - Excerpts

T5. Businesses, newspapers and all local authority leaders are joining forces to launch the NEvolution campaign in a bid to win greater financial freedoms to support the regional economy. In the absence of the Secretary of State, will his Ministers pledge their help and backing to this ground-breaking campaign?

Brandon Lewis Portrait The Parliamentary Under-Secretary of State for Communities and Local Government (Brandon Lewis)
- Hansard - - - Excerpts

It was interesting to hear what some of the local authority leaders had to say when I met them. It is great to see anything that is developing more local accountability and, therefore, driving local economic growth. We supported that through the Localism Act 2011 and the changes that we made this year in the business rates retention scheme.

Iain Stewart Portrait Iain Stewart (Milton Keynes South) (Con)
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T6. My hon. Friend may be aware that the urban planning design of Milton Keynes is being exported to China, which is looking to model two new cities on our successful design. Will he continue to work with UK Trade & Investment to help us to explore further export possibilities?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

I think that we all want to applaud British design, particularly in the development of new towns and garden cities, especially the great city of Milton Keynes. This is something that we should take pride in, and I am sure that the good people of Milton Keynes will do so.

Graham Allen Portrait Mr Graham Allen (Nottingham North) (Lab)
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T7. The Minister may have read my Select Committee’s recent report on greater independence for local government. Ministers and politicians of all parties work hard to devolve power, yet the Whitehall culture always seems to suck power back into the centre. What does he propose to do about that as some good advice for future Governments?

Brandon Lewis Portrait Brandon Lewis
- Hansard - - - Excerpts

We have had a number of conversations on the issue since the report, the launch of which I was pleased to attend. It contained many interesting points. A big issue is for local government itself to take advantage of the powers given by the Localism Act, particularly the general power of competence to drive the agenda locally. From the centre, we are working on the whole place community budgets and the new network to make sure that we get government working across the public sector, particularly driven by the local areas and by local people for local people.

Bob Russell Portrait Sir Bob Russell (Colchester) (LD)
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T10. Will Ministers confirm that it remains the Government’s policy that the development of brownfield sites will take precedence over building on green fields?

Dan Jarvis Portrait Dan Jarvis (Barnsley Central) (Lab)
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T8. Following briefing that new legislation will require private landlords to check the immigration status of tenants, and a reported row between the Communities Secretary and the Prime Minister, in which the latter apparently turned puce, a Whitehall source said that the Government would just be targeting the regulation at high-risk areas. How would the Minister define a high-risk area of private renters?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

I am sorry to disappoint the hon. Gentleman, but all that press speculation is nonsense. The Government are clear. We want to make sure, as good landlords already do, that no one is living in the private rented housing sector in this country illegally. We are going to put forward some straightforward but effective measures. We will of course consult on them, and they will build on the important work that we are doing already to crack down on the minority of rogue landlords who exploit the vulnerable through programmes such as beds in sheds.

Duncan Hames Portrait Duncan Hames (Chippenham) (LD)
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Firefighters in Bradford on Avon and Chippenham now expect to work to the normal pension age of 60, but they are concerned that they may fail the VO2 max capability test before that time. Where that is the case, at what age will those firefighters be able to draw their pension?

Brandon Lewis Portrait Brandon Lewis
- Hansard - - - Excerpts

The vast majority of firefighters will be able to regain any lost fitness levels through remedial fitness training, but alternatively they can access their pension from the age of 55 with an actuarial reduction.

Paul Goggins Portrait Paul Goggins (Wythenshawe and Sale East) (Lab)
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T9. Do Ministers share my concern about the impact of welfare changes on housing associations? The Wythenshawe community housing group in my constituency estimates that rent arrears will go up by about £1 million this year following the introduction of the bedroom tax. Do Ministers agree that when universal credit comes in, any claimant already in rent arrears should have their housing costs paid directly and immediately to their landlord?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

I do not share the right hon. Gentleman’s fears, but I am always happy to listen to individual circumstances such as the one he refers to. Where we are reducing the spare room subsidy, we are doing it for an important reason—there are currently 1 million spare bedrooms in this country, and we have a quarter of a million people living in overcrowded accommodation. It cannot be fair to allow that situation to persist.

Philip Davies Portrait Philip Davies (Shipley) (Con)
- Hansard - - - Excerpts

The Planning Minister is aware of an unacceptable planning application in Micklethwaite, in my constituency, which has already been rejected by the local council, the planning inspector and the Secretary of State, but which through legal proceedings has gone back to the Secretary of State for redetermination. A decision was expected by now. Will the Minister tell us when we can expect that decision from the Secretary of State, and, even better, confirm that he will once again reject that unacceptable proposed development?

Nick Boles Portrait Nick Boles
- Hansard - - - Excerpts

My hon. Friend has been indefatigable in his representations on the issue. He knows all too well that I cannot say anything about it, but he has made his representations here, in his constituency, in the Tea Room and almost everywhere else.

Tom Blenkinsop Portrait Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
- Hansard - - - Excerpts

If a fire brigade is “spun out”, to use the Government’s terms, what procurement route could be taken to prevent tendering to the private sector within a three to nine-year window? If the Minister cannot say, why are he and the Government actively funding the process as a stepping stone from mutualisation to privatisation?

Brandon Lewis Portrait Brandon Lewis
- Hansard - - - Excerpts

I can only repeat what I said earlier and what I said to the hon. Gentleman in the debate on the matter in the House. We will not allow any change that allows for privatisation of the fire service. I am disappointed that the Labour party seems to be working against the mutuals and co-operatives that the Labour-led Cleveland fire authority is putting forward.

David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
- Hansard - - - Excerpts

Despite a 3.7% increase in Bury’s council tax, taxpayers were denied a referendum because of the small print in the rules governing when a referendum must be held. Will the Minister confirm that those rules will be looked at again to make them clearer, so that council tax payers know for certain when they will and will not be given a referendum?

Brandon Lewis Portrait Brandon Lewis
- Hansard - - - Excerpts

My hon. Friend asks a very reasonable question. He is absolutely right that we had that situation with a few councils, and we are looking to deal with it as part of the audit Bill that will come before the House later this year.

Gerry Sutcliffe Portrait Mr Gerry Sutcliffe (Bradford South) (Lab)
- Hansard - - - Excerpts

We look forward to the Prime Minister’s statement on Woolwich, but when the extremism taskforce is put together, will the Minister look at the lessons learned from Bradford and west Yorkshire following the 7/7 bombings? I know he will be pleased that the whole Bradford community has condemned without fail what happened in Woolwich, and that is a great thing. Some great lessons were learned in Bradford and some great work was carried out, and perhaps we can share some of it with the new taskforce.

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

The hon. Gentleman is absolutely right that we can always learn from problems that have occurred in the past. The Prime Minister’s statement will make clear the whole Government’s approach, but this Department is absolutely committed to ensuring that we have genuinely inclusive communities.

Robert Neill Portrait Robert Neill (Bromley and Chislehurst) (Con)
- Hansard - - - Excerpts

Will my hon. Friend look again at how inflated claims for compensation in the case of article 4 directions can deter their proper use by local authorities, as in the case of the Porcupine pub in Mottingham, in my constituency?

Nick Boles Portrait Nick Boles
- Hansard - - - Excerpts

My hon. Friend knows a lot more about article 4 directions than I do, from his experience as a Minister in the Department, and he will know that we are undertaking a review of how they work so that they are properly usable by local authorities.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
- Hansard - - - Excerpts

If the Government are serious about increasing housing supply, will they look again at lifting the current cap on council borrowing for house building, and at providing direct capital spending to allow councils to build a mass programme of affordable housing?

Lord Foster of Bath Portrait Mr Foster
- Hansard - - - Excerpts

We are looking at the point the hon. Lady has raised, and an announcement will be made on 26 June.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
- Hansard - - - Excerpts

The Minister was right to remind the House that under the previous Government, house building dropped to its lowest level since the 1920s. Given that in Scandinavia, Germany, Austria and Belgium more than 50% of new homes are self-builds, what steps is the Minister taking to remove barriers to self-builders in this country?

Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

We are ensuring not only that plots are available, but that finance is available. That is why we have in the pipeline nearly 800 plots available for my hon. Friend’s constituents, and indeed nationally.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
- Hansard - - - Excerpts

One of this Government’s first acts was to get rid of proposals to have a register of private landlords. In many discussions I have had with residents—including at the Hackney housing summit that I hosted recently—it has become clear that there has been a real need to improve landlords, but without knowing who they are we cannot do that. Will the Minister look again at the issue? Again, I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

Lord Foster of Bath Portrait Mr Foster
- Hansard - - - Excerpts

The simple answer is that no, we will not. The hon. Lady will be well aware that when her party proposed such a register, the impact assessment showed that it would cost £300 million a year, and that money would be put on to the rent of people seeking to live in those properties.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
- Hansard - - - Excerpts

How many of the savings made in the Minister’s Department have received positive representations or support from the Labour party?

2013 White Paper on Pension Reform

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
Read Full debate Read Hansard Text
Tim Loughton Portrait Tim Loughton (East Worthing and Shoreham) (Con)
- Hansard - - Excerpts

I present a petition on behalf of the residents of Lancing, West Sussex, who declare their concern about the Government’s proposals for pensions in the new White Paper on pension reform, “The single-tier pension: a simple foundation for saving”.

The petition states:

The Petition of residents of Lancing, West Sussex,

Declares that the Petitioners are appalled by the Governments proposals for pensions in the 'New White Paper on Pension Reform' - The single tier pension: a simple foundation for saving; further that the Petitioners believe it is unfair to give a pension of £144.00 to a pensioner who retires in 2017 with 35 years National Insurance Credit when pensioners today will have to remain on their current lower pension rate, many of whom will have accumulated Working National Insurance Credits of over 40 years or more; further that anyone who has drawn their state pension before 2017 will not be included in these plans and that will be a disadvantage to millions of older women who currently get less than £144.00 a week.

The Petitioners therefore request that the House of Commons urge the Government to discuss the matter of pensions for at least another 12 months and address any equality and discriminatory issues in the Pensions White Paper.

And the Petitioners remain, as in duty bound, will ever pray.

[P001182]

EU Council and Woolwich

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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15:30
Lord Cameron of Chipping Norton Portrait The Prime Minister (Mr David Cameron)
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With permission, Mr Speaker, I would like to make a statement on the recent European Council, and update the House on the dreadful events in Woolwich.

The European Council was called specifically to discuss energy policy and tax evasion. We also discussed the situation in Syria, prior to the lifting of the arms embargo that was agreed at the Foreign Affairs Council last week. On energy policy, we agreed to continue our efforts to complete the single market in energy, so that we drive competition between suppliers and force prices down. We also put down a marker to get rid of unnecessary regulation in making the most of indigenous resources such as shale gas. Europe has three quarters as much shale as the United States, yet while the Americans are drilling 10,000 wells a year, we in Europe are drilling fewer than 100. We must extract shale in a safe and sustainable manner, but we have to do more to ensure that old rules designed for different technologies do not hold us back today.

On tax, to crack down on tax evasion we need proper exchange of tax information, which in Europe has been stalled for decades because of the selfish actions of a minority of countries. I made tackling tax evasion a headline priority for our chairmanship of the G8, and that has enabled us to ramp up pressure and make real progress. At the European Council we agreed there should be a new international standard of automatic information exchange between tax authorities, and proper information on who really owns and controls each and every company.

In Syria, the situation continues to deteriorate. There is a humanitarian crisis, so Britain is leading the way with humanitarian support. We need diplomatic pressure to force all sides to come to the table, and in recent weeks I have held talks with Presidents Putin and Obama to try and help bring that about. We must be clear: unless we do more to support the official opposition, the humanitarian crisis will continue, the political transition that we want to see will not happen, and the extremists will continue to flourish. That is why I believe it is right to lift the EU arms embargo on the Syrian opposition. There must be a clear sense that Assad cannot fight his way to victory or use the talks to buy more time to slaughter Syrians in their own homes and on their streets.

I regret to say that the EU arms embargo served the extremists on both sides. It did not stop Assad massacring his people, it did not stop the Russians sending him arms, and it did not stop Islamist extremists getting their hands on weapons either. It just sent a signal that for all its words, the EU had no real ability to support the reasonable opposition that could be the basis of an inclusive transition. That is why the Foreign Secretary and the French Foreign Minister secured agreement to lift the arms embargo in Brussels last week.

I believe we should also be clear about the Syrian National Coalition. It has declared its support for democracy, human rights, and an inclusive future for all minorities, and we—not just in Britain but across the EU—have recognised it as a legitimate representative of the Syrian people. The EU has agreed a common framework for those who, in the future, may decide to supply it with military equipment, and there are clear safeguards to ensure that any such equipment would be supplied only for the protection of civilians, and in accordance with international law. That does not mean that we in the UK have made any decision to send arms, but we now have the flexibility to respond if the situation continues to deteriorate. With 80,000 killed, 5 million fled from their homes, rising extremism and major regional instability, those who argue for inaction must realise that it has its consequences too.

Let me turn to the dreadful events in Woolwich. I am sure the whole House will join me in sending our deepest condolences to the friends and family of Drummer Lee Rigby. What happened on the streets of Woolwich shocked and sickened us all. It was a despicable attack on a British soldier who stood for our country and our way of life, and it was a betrayal of Islam and of the Muslim communities who give so much to our country. There is nothing in Islam that justifies acts of terror, and I welcome the spontaneous condemnation of the attack from mosques and Muslim community organisations across our country. We will not be cowed by terror, and terrorists who seek to divide us will only make us stronger and more united in our resolve to defeat them.

Let me update the House on the latest developments in the investigation, on the role of the Intelligence and Security Committee, and on the next steps in our ongoing efforts to fight extremism in all its forms. While the criminal investigation is ongoing, there remains a limit on what I can say. Two men, Michael Adebowale and Michael Adebolajo, have been charged with the murder of Drummer Lee Rigby. Both are appearing in court today. There have been 10 further arrests as part of the ongoing investigation. Two women have been released without charge and eight men have been released on bail.

The police and security services will not rest until they have brought all those responsible to justice. I am sure the whole House will join me in paying tribute to the work of our police and security services for all they do to keep us safe from violent extremists. Already this year, there have been three major counter-terror trials, in which 18 people were found guilty and sentenced to a total of 150 years in prison. Much more of the work of our security services necessarily goes unreported. They are Britain’s silent heroes and heroines, and the whole country owes them an enormous debt of gratitude.

It is important that we learn the lessons of what happened in Woolwich. The Government strengthened the Intelligence and Security Committee and gave it additional powers to investigate the activities of the intelligence agencies. I have agreed with my right hon. and learned Friend the Member for Kensington (Sir Malcolm Rifkind) this morning that his Committee will investigate how the suspects were radicalised, what we knew about them, whether any more could have been done to stop them, and the lessons we must learn. The Committee hopes to conclude its work around the end of the year.

To tackle the threat of extremism, we must understand its root causes. Those who carried out this callous and abhorrent crime sought to justify their actions by an extremist ideology that perverts and warps Islam to create a culture of victimhood and justify violence. We must confront that ideology in all its forms. Since coming into government, we have ensured that the Prevent strategy focuses on all forms of extremism, and not just on violent extremism. We have closed down more websites and intervened to help many more people vulnerable to radicalisation.

Since 2011, the Home Secretary has excluded more preachers of hate from this country than ever before through our Prevent work. Some 5,700 items of terrorist material have been taken down from the internet, and almost 1,000 more items have been blocked where they are hosted overseas, but it is clear we need to do more. When young men born and bred in this country are radicalised and turned into killers, we must ask some tough questions about what is happening in our country. For some young people, it is as if there is a conveyor belt to radicalisation that has poisoned their minds with sick and perverted ideas.

We need to dismantle that process at every stage—in schools, colleges and universities, on the internet, in our prisons and wherever it takes place—so, this morning, I chaired the first meeting of the Government’s new taskforce on tackling extremism and radicalisation. I want the taskforce to ask serious questions on whether the rules on charities are too lax and whether they can allow extremists to prosper; whether we are doing enough to disrupt groups that incite hatred, violence or criminal damage; whether we are doing enough to deal with radicalisation on our university campuses, on the internet and in our prisons; whether we need to do more with informal education centres such as madrassahs to prevent radicalisation; and whether we do enough to help mosques to expel extremists and recruit imams who understand Britain. We will also look at new ways to support communities as they come together and take a united stand against all forms of extremism. Just as we will not stand for those who pervert Islam to preach extremism, neither will we stand for groups such as the English Defence League, which try to demonise Islam and stoke up anti-Muslim hatred by bringing disorder and violence to our towns and cities.

Let us be clear: the responsibility for this horrific murder lies with those who committed it. However, we should do all we can to tackle the poisonous ideology that is perverting young minds. This is not just a job for the security services and the police; it is work for us all. I commend this statement to the House.

15:40
Edward Miliband Portrait Edward Miliband (Doncaster North) (Lab)
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I welcome the Prime Minister’s statement.

I want to start where he did: on the EU summit and its conclusions on tax avoidance. We need international agreement on transparency, transfer pricing, tax havens and other issues. We welcome the steps forward on transparency. Will he tell us whether he agrees that we need proposals for fundamental reform of the corporate tax system to prevent profits being artificially shifted from one country to another? Does he also agree that while seeking international agreement is undoubtedly the right way forward, measures, including measures on transparency, should still be introduced if international agreement is not reached? Will he confirm that Britain will act if we cannot obtain international consensus?

Let me turn to the devastating violence in Syria that continues unabated. I share and recognise the Prime Minister’s deep concern about what is happening. The number of Syrian refugees who have fled the conflict has now reached 1.5 million, half of them children. As so often happens, the most vulnerable are paying the price of war. This is a situation where there are no good options. The question is this: which is the least worst option?

Despite the enormous obstacles, we believe that a comprehensive peace deal still remains Syria’s best chance of ending the two years of violence; in particular, American and Russian efforts to bring Syria’s warring parties around the negotiating table this month in Geneva. The peace conference is due to take place in the coming weeks, but the Prime Minister did not refer to it in his statement. Will he explain why? The conference remains the best—indeed, at present, the only—immediate hope of limiting the violence and achieving an inclusive political settlement, so its success must not be put at risk. In light of that, will he explain his view of the risks that lifting the EU arms embargo may pose to the prospects for any peace talks?

The Prime Minister says that there are safeguards on the end-use of those weapons. Will he set out to the House what those safeguards are? However well motivated, is not the danger of this course of action that it will lead to further escalation, as has been illustrated by Russia’s response in recent days? The Prime Minister is of course right that the international community cannot continue to stand by while more innocent lives are lost, but in the action we take we must also agree that our primary aim must be to ensure a reduction in the violence. Finally, on using the flexibility of the lifted arms embargo, will he assure us that he will come back to the House before any decision is made by the British Government to arm the opposition in Syria?

Let me now join the Prime Minister in expressing our total revulsion at the vile murder of Drummer Lee Rigby. He served his country with the utmost bravery and was killed in an act of the utmost cowardice. All of our thoughts are with his family and friends. Our thoughts are also with our troops, who serve with incredible courage all around the world and have seen one of their own murdered. I also join the Prime Minister in paying tribute to our police and security services, who do such a vital job.

I would also like to join the Prime Minister in what he said in the days after the murder of Lee Rigby, singling out for special praise the members of the public, including Ingrid Loyau-Kennett, who intervened to try and protect Lee Rigby. They showed the true face of our country, as did the quiet determination of local leaders and residents in Woolwich, which the Prime Minister, Deputy Prime Minister and I have all seen for ourselves, not to allow their communities to be consumed by division and hate. As the Prime Minister said, in the past 10 days we have seen attempts by some to use this evil crime as justification to further their own hate-filled agenda and attempt to ignite violence by pitting community against community. They will fail because the British people know that this attack did not represent the true values of any community, including Muslim communities, who contribute so much to our country.

Governments must do three things after such an attack, and we will support the Government on all of them. First, they must bring the perpetrators to justice, which is why we welcome the swift court appearance of the suspects. Secondly, they must seek to bring people together in the face of attempts to divide us, and thirdly they must learn the lessons of the attack. We therefore welcome the ISC investigation and the taskforce on extremism, which I agree with the Prime Minister should look again at issues of radicalisation and helping communities to take a stand against extremism—issues covered in the original Prevent strategy. Will he confirm whether the taskforce will look into earlier intervention—in other words, not just on university campuses—to prevent young people from being radicalised and whether the taskforce will heed the calls from youth workers to look more carefully at the link between violent extremism and gang-related activity, which was something raised with us when we visited Woolwich last week?

In the light of recent events, will the Prime Minister update the House on his current view on the need for legislation on communications data? Whatever the origin and motive of terrorists, our response will be the same—the British people will never be intimidated. Across every faith and every community, every part of the country is united, not divided, in its abhorrence of the murder of Lee Rigby. We have seen people try to divide us with such acts before. They have failed, and they will always fail.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I thank the right hon. Gentleman for his comments about the dreadful events in Woolwich and for the strong cross-party support that he has given throughout this period.

The right hon. Gentleman asked about reform of corporate taxes. I agree that we need to take action. It is best if it can be international action, and we should use the G8 summit to drive the agenda, as we have already been doing in the EU, but of course we do not rule out taking action over and above what other countries have done. If possible, however, it is best to pursue it internationally.

On Syria, there is an honest disagreement between us. I agree completely with the right hon. Gentleman that there is no good option and that a negotiated settlement would be best—I have been doing what I can to help bring the parties to the table and look at all the ways we can make it work—but the question for us is this: how do we maximise the chances of a successful political transition and political process? Do we maximise those chances by allowing Assad to dominate militarily and showing that our words of support for the opposition are just that—words and no more? I do not think that that is the right approach, which is why the EU’s decision to lift the embargo—but only, of course, on the official Syrian opposition, not on the regime—is, I think, the right step.

The right hon. Gentleman asked about the Russian response. We should not, for a minute, be naive about the Russian position on Syria; it has been consistent for a very long time: it has always supplied, and continues to supply, arms to Syria. As far as I can see, that has not changed at any point in this process. Finally, he asked whether we would come back to the House. My right hon. Friend the Foreign Secretary regularly updates the House on this matter, and will continue to do so.

On Syria, I would add one final point. Those who argue against amending the arms embargo and doing more to support the opposition are making some of the same arguments used in the Bosnian conflict 20 years ago. We were told then, as we are now, that taking action would have bad consequences, but not taking action is a decision too, and in Bosnia it led to the slaughter of up to 200,000 people and did not stop the growth of extremism and radicalisation, but increased it. We should be clear, however, about the nature of what is happening in Syria today. It is not just a tragedy for Syria; it could end up being a tragedy for us, too, if we do not handle it properly.

I applaud what the right hon. Gentleman said about the Woolwich events and all that needs to be done in response. He was right to praise the community groups that came out strongly and condemned what happened. On the issue of communications data, I think we need a frank debate in the House. There is a problem in that, currently, about 95% of serious crimes involve the use of communications data. This is not about the content of a fixed or mobile telephone call, but about the nature of the call: when it was made, who made it and when they made it. As telephony moves from fixed and mobile telephony on to the internet, our intelligence and police services will have a problem. We need to address that problem, and we should do so sensitively and carefully, looking at all the non-legislative options, but I hope for a measure of cross-party support, on both sides of the House, to try and get this right, because we will suffer if we do not.

The right hon. Gentleman asked some other specific questions. I am pleased that he welcomes the ISC investigation. With its new powers and responsibilities, it is the right body to carry it out.

On the taskforce, let me tell the right hon. Gentleman that there is no monopoly of wisdom on this issue. We will accept ideas from all sides of the House about what needs to be done to prevent radicalisation. We should look at early intervention, and he is right that the connections between gang violence and violent extremism, and between criminal gangs and violent extremism, all need to be looked at. If we can bring the House together to look at these things, we can make real progress in stopping young minds being perverted with this violent extremism.

None Portrait Several hon. Members
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John Bercow Portrait Mr Speaker
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Order. Before I call hon. Members to ask further questions arising from the Prime Minister’s statement, I remind the House that, as the Prime Minister pointed out, two individuals have been charged in connection with the death of Drummer Lee Rigby. I emphasise to colleagues that the matter is therefore sub judice. Although it is clear that the public interest means that this is a matter that Parliament must discuss, and in respect of which I should indeed exercise my discretion, I am sure that hon. and right hon. Members will take care to frame their remarks appropriately.

Peter Tapsell Portrait Sir Peter Tapsell (Louth and Horncastle) (Con)
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On Syria, may I put it to my right hon. Friend, first, that this is fundamentally a religious war between the Shi’a and the Sunni, which has raged within Islam for 1,300 years? Secondly, the Alawites, who are a branch of the Shi’a, will fight to the end, because they believe—and so does the large Christian minority in Syria—that they will be massacred if the Sunni overthrow the present regime. Thirdly, Russia will never allow the regime to be overthrown, because its overthrow would mean a humiliating defeat for President Putin, who made his reputation by crushing the Sunni rebellion in Chechnya.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I always listen carefully to my right hon. Friend. I would just make two points. The first is that when I see the official Syrian opposition, I do not see purely a religious grouping; I see a group of people who have declared that they are in favour of democracy, human rights and a future for minorities, including Christians, in Syria. That is the fact of the matter. Secondly, of course the Russians have long supported the regime, but they can see the damage that is being done to Syria and to their reputation throughout the middle east. That is why it is a good time to push all parties towards the political transition that is so deeply needed in this area.

Jack Straw Portrait Mr Jack Straw (Blackburn) (Lab)
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On Syria, does the Prime Minister accept that that elusive but very necessary comprehensive peace deal requires not only that Russia should be a party to it, but that Iran should be? Whatever the difficulties, will he say what action he has taken to ensure that Iran is a participant in the peace conference and also what action we are taking to bring back full diplomatic relations with the Republic of Iran?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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The right hon. Gentleman is right that the role of Iran is something that should be discussed; the point I would make is that Iran is currently playing a role, using its proxies and helping to massacre Syrian civilians. Clearly in the end what is needed more than anything else—more than the engagement of any regional player or indeed any superpower—is for the Syrian people themselves to see a transitional Government in whom they can have confidence. Clearly that has to involve elements of the opposition; it has to involve some elements of the regime, too. That is what a transition would involve.

Lord Campbell of Pittenweem Portrait Sir Menzies Campbell (North East Fife) (LD)
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There was much in what my right hon. Friend said with which I would agree, but in relation to the supposed merits of lifting the embargo and supplying arms to Syria, I regret that I remain increasingly unconvinced. There are many questions to be asked, but perhaps the most fundamental question is this: what evidence is there that Assad would change his course so long as he enjoys the uninhibited and unconditional support of Russia, and the supply of weapons that goes with that?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I very much respect my right hon. and learned Friend and his views. The direct answer to his question is that Assad is most likely to change his view and accept a transition if he believes that he cannot win militarily. If we help to tip the balance in that way, there is a greater chance of political transition succeeding. If we don’t, we won’t.

Alan Johnson Portrait Alan Johnson (Kingston upon Hull West and Hessle) (Lab)
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Exactly a year ago, the Home Secretary said in her introduction to the draft Communications Data Bill:

“Without action there is a serious and growing risk that crimes enabled by email and the internet will go undetected and unpunished, that the vulnerable will not be protected and that terrorists and criminals will not be caught and prosecuted. No responsible Government could allow such a situation to develop unaddressed.”

Does not the absence of any reference to this in the Queen’s Speech suggest that that is exactly what the Government are doing?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I have great respect for the former Home Secretary, and I know that he knows how important the issue of comms data is. I hope that, when we bring forward proposals, we will have support from across the House of Commons for them. Comms data were mentioned in the Queen’s Speech, and we have specifically said that we want to look at how we can match IP addresses, because that is such an important part of what needs to be done. We should look at all the options, including non-legislative approaches, so that we can make some progress on this important issue. I look forward to having the right hon. Gentleman’s support, and to hearing his explanation to others in the House of how important this is.

John Redwood Portrait Mr John Redwood (Wokingham) (Con)
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I welcome the Prime Minister’s efforts to get us cheaper energy through shale gas, but did the EU recognise that its regulations and energy policies are making us completely uncompetitive in world markets, destroying jobs and giving us energy that our elderly cannot afford?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I think it is important that we ensure that Europe does not make the situation worse through new regulation that could stop the exploitation of shale gas. That was part of what we discussed at the European Council. Also, there is an opportunity to get cheaper supplies of energy if we can increase competition within the single market, and that should be the aim of our policy.

Hazel Blears Portrait Hazel Blears (Salford and Eccles) (Lab)
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I welcome the Prime Minister’s announcement of the taskforce on extremism. I see that as an acknowledgement that more needs to be done on the Prevent strand of the counter-terrorism strategy. Will he confirm that his taskforce will be fully inclusive? In other words, will he make an extra effort to involve women and young people, as well as the traditional voices that have been heard from the community? That will be absolutely essential if the taskforce is to succeed.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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The right hon. Lady speaks with immense expertise and experience on this issue. In fact, I was thinking of inviting her on to the taskforce to give us the benefit of her wisdom from the time she spent in office dealing with this difficult problem. Rather than have a formal panel of advisers, we are going to seek advice from different individuals and groups who can bring real expertise. This must not be just another opportunity to discuss Britishness or British identity; it must be a set of actions in our universities, schools and colleges and on the internet—as well as in our prisons; for heaven’s sake, we are supposed to be responsible for those people, yet they are still being radicalised under our very noses—to deal with these problems.

Lord Soames of Fletching Portrait Nicholas Soames (Mid Sussex) (Con)
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Was there any discussion at the Council on the completion of the single market in services? If not, should that not be on the agenda of every future Council, in view of the fact that it can deliver tremendous growth?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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My right hon. Friend makes an important point about one of the positive benefits that we can get out of the single market, which will involve completing the single market in services just as we have completed the single market in products. As an economy that is very reliant on services, we would benefit disproportionately from that. The matter was not discussed at this conference because it was called particularly to deal with energy and with the issues of tax evasion and aggressive tax avoidance, but I will ensure that it is discussed at future European Councils.

Lord Hain Portrait Mr Peter Hain (Neath) (Lab)
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Surely the Prime Minister must accept that Britain’s insistence on Europe opening the door to more arms entering that ugly arena in Syria has led to two consequences. The first is the Russian escalation, with its introduction of S-300 missiles into the arena. The second is the near collapse, if not the actual collapse, of the vital international peace conference. The alternative is not inaction, as the Prime Minister has implied; it is serious negotiation to get the conference off the ground without preconditions, without insisting that Assad must go, which would stop the conference, and without insisting that Iran should stay out of the negotiations, which would also render the process stillborn.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I have great respect for the right hon. Gentleman, but on this occasion I have to disagree with him on both counts. First, it is completely wrong to pretend that Russia has changed its view of Syria or its supply of arms to that country because of the European Union’s decision. Russia has been supplying the Syrian regime with arms for decades, and it has done so during this conflict. To suggest otherwise is really quite naive. I fully support the idea of the peace conference, which is why I flew to see President Putin on the Black sea and why I held discussions with Barack Obama. We should do everything we can to bring the parties together at this peace conference, but I would put the question again: are we more likely to get some sort of compliance from President Assad at a peace conference that would result in a transitional government if he believes that he cannot win militarily? That is the question that we have to put to ourselves.

Julian Lewis Portrait Dr Julian Lewis (New Forest East) (Con)
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Will Parliament definitely get the opportunity not just to be updated and kept informed, but to vote on the issue of arms supplies from this country to the opposition in Syria, even if that involves recalling Parliament if we wish to take that decision during the recess?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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One of the things that this Government have done is allow Parliament to hold votes on issues that Parliament wants to vote on. In the first 10 years during which I was an MP, that was completely impossible. It can now happen, so Parliament has that opportunity whenever it wants to.

David Winnick Portrait Mr David Winnick (Walsall North) (Lab)
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Has the Prime Minister noticed during the last few minutes how little enthusiasm there is in the House for lifting the arms embargo? Does he recognise that while we all deplore the terrible bloodshed in Syria, if arms are sent by France and this country, it is obvious that Russia will simply increase the amount of arms being sent? This is not the way to resolve the issue. The killing fields in Syria are bad enough; sending arms would just increase the killing.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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The hon. Gentleman should look at the effects of the EU arms embargo. Did it stop Assad getting every weapon he wanted from Russia? No, it did not. Did it stop extremists in Syria getting weapons? No, it did not. But did it stop the countries such France, Britain and America that wanted to engage with the official opposition from working with them and from providing technical assistance, help and advice? Yes, it did. The point is that we have made not a decision to supply the Syrian opposition with arms—that would be a separate decision—but a decision to lift the arms embargo that affected the Syrian opposition in the way we have seen. That was the right thing to do.

Cheryl Gillan Portrait Mrs Cheryl Gillan (Chesham and Amersham) (Con)
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I am sure we all welcome the progress that the Prime Minister has made on tackling tax evasion, but I wondered whether he had an opportunity during the European Council to look at the code of conduct group on business taxation, which I understand has recently got bogged down in an increasingly difficult and complex set of assessments. Does he agree that it is important for this code of conduct group to move forward rapidly, and what proposals will he make to improve its effectiveness?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I am very grateful to my right hon. Friend for asking that question. What we have done in the European Union is, I believe, unblock what was previously blocked when a small number of countries were blocking the exchange of technical tax information between countries. Now that that is unblocked, I think there is plenty of opportunity for the body that she talks about and others to do the work necessary to make sure that proper taxes are paid.

Keith Vaz Portrait Keith Vaz (Leicester East) (Lab)
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I welcome the establishment of the taskforce and the Prime Minister’s commitment this afternoon to making its membership wider than just members of the Cabinet. Does he agree that internet service providers and search engines such as Google are far too laid back about removing extremist content? It is still possible this afternoon to go on to YouTube and see the hateful and inflammatory preachings of Anwar al-Awlaki. A year ago, the Select Committee recommended the establishment of a code of conduct; will the Prime Minister please look at this proposal again, so that the providers and the search engines take effective action?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I have great respect for the right hon. Gentleman and for the work of his Select Committee. The point he makes is a good one. I think we should always ask companies and organisations to behave with a sense of responsibility. Of course there are concerns about freedom and free speech, but there are also issues of proper governance and responsibility, which these companies should also think about. I will look very carefully at the code of conduct that he mentions and see what more can be done.

John Baron Portrait Mr John Baron (Basildon and Billericay) (Con)
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The Foreign Secretary may well update us on the decisions made, but will the Prime Minister take this opportunity to confirm once and for all that if the decision is made to arm the rebels, he will come before this House so that we can debate it and vote on it before that policy is executed?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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As I said, my right hon. Friend the Foreign Secretary has regularly updated the House on Syria in statements, and the House of Commons has plenty of ways, if it wants to, to hold debates and votes on this issue. All that has been decided to date is that we should lift the arms embargo on the official Syrian opposition—an opposition that we recognise as legitimate representatives of the Syrian people and as a group that believes in democracy, human rights and standing up for minorities. That is the decision that has been taken to date, and no further decisions have been taken.

Nick Raynsford Portrait Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
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On behalf of the people of Woolwich, I thank both the Prime Minister and the Leader of the Opposition not just for what they have said this afternoon, but for their visits to Woolwich in the aftermath of the hideous killing of Drummer Lee Rigby. I thank them for their support, and for the commitment—a cross-party commitment—to take this agenda forward in the coming months and years.

Let me, however, gently remind Members that our own natural instincts often do not allow us to sustain unanimity across the House during periods of division. The agenda of building harmony between different groups and countering extremism is a long-term agenda that will not be won immediately. It will require ongoing commitment, and we will need to demonstrate that cross-party commitment in the long term if we are really to succeed.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I thank the right hon. Gentleman for all that he has done in Greenwich and Woolwich to bring people and communities together. There has been such a strong and positive response, and such a powerful condemnation by everyone of what happened to that brave soldier.

The right hon. Gentleman’s point about cross-party work is important. I think that there is quite a strong sense across the House that while we may disagree about individual items on the agenda, we need to do more to prevent young minds from being perverted, to stop this radicalisation and to confront this extremist ideology. I think that there is strong support for those proposals.

Julian Brazier Portrait Mr Julian Brazier (Canterbury) (Con)
- Hansard - - - Excerpts

I welcome my right hon. Friend’s announcement about his taskforce. Does he agree that now—in the aftermath of this appalling incident—is a good time to remind judges considering cases relating to the deportation of preachers of hate that they, too, have a role in upholding the rule of law?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend has made an excellent point. I think that what we can do, through the words that we use, the speeches we make and the debates that we have in the House, is set the context for confrontation of not just the violent extremism, but the extremism and poisonous ideology on which these people thrive. However, it we must be made clear that in too many cases we have home-grown extremists: people who were born and bred here, and then radicalised here. Of course we must do more to kick out the preachers of hate and people who do not have the right to be here, but we have our own domestic, home-grown problem to deal with as well.

Simon Danczuk Portrait Simon Danczuk (Rochdale) (Lab)
- Hansard - - - Excerpts

I speak on behalf of every single resident of the borough of Rochdale when I say that we are immensely proud of Drummer Lee Rigby, and that all our thoughts are with his family and friends at this very sad time. Rochdale has very strong ties to the armed forces, particularly the Royal Regiment of Fusiliers, and those ties will not be diminished by what happened on 22 May; indeed, they have been strengthened. Will the Prime Minister join me, and all Rochdale residents, in pledging to support Lee’s family in whatever way necessary in the coming days and months?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I thank the hon. Gentleman for what he has said on behalf of everyone in Rochdale. It is clear that the whole country wants to reach out to Lee Rigby’s family in respect of the appalling loss that they have suffered. I went to Woolwich barracks after these dreadful events to talk to some of the soldiers and their families, and I was greatly impressed by not just the enormous solidarity but the strength of purpose that they showed. These terrorists who think that they will be able to divide us or scare us actually just bring us together.

Simon Hughes Portrait Simon Hughes (Bermondsey and Old Southwark) (LD)
- Hansard - - - Excerpts

May I associate my colleagues, and the other communities in south London, with the Prime Minister’s comments, and with the expressions of condolence and support for the family, comrades and friends of Lee Rigby? I applaud the Prime Minister for making it clear that we should take a considered view of how to deal with this sort of terrible activity, rather than producing knee-jerk legislative responses. The immediate priority must be to support the Muslim leaders who are strong in their denunciation of this sort of behaviour, and to support the whole of our Muslim community, which has suffered extra attacks in recent years. Most people in that community are peaceful and law-abiding, and want nothing to do with the sort of behaviour that we have seen in the last two weeks.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My right hon. Friend is entirely right to say that there should be no knee-jerk reactions. We do not want immediate legislative responses, but on the other hand, I think that we must ask ourselves some pretty searching questions.

All of us in the House condemn this poisonous narrative, condemn this perversion of Islam and condemn this extremist narrative, but are we doing enough to ensure that we snuff it out in our prisons, colleges or university campuses? Are we doing enough to confront it and defeat it, online and elsewhere? I think that the answer to that is no. I think that there is more work to be done, and that we should do it in good order.

Baroness Stuart of Edgbaston Portrait Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)
- Hansard - - - Excerpts

When the Prime Minister said that the EU arms embargo has helped extremists on both sides, was he acknowledging that the Syrian opposition also includes extremists? Has he had any discussions with the Turkish Government, and what advice have they given him?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

Clearly, parts of the Syrian opposition do include extremists and, regrettably, armed extremists. The point I was making is that the Syrian National Coalition, the official opposition, is a body that we can work with and is a legitimate spokesperson organisation for the Syrian people. Of course we have discussed this issue not just with the Turkish Government but with the Jordanians, the Emiratis, the Qataris, the Saudis and others. We want to do everything we can to channel support to those parts of the Syrian opposition that stand for democracy, freedom, human rights and all the things in which we believe in this House. We are better able to do that if we are engaged—if we are helping to organise these groups. That is what we are now involved in. We are not, as I said, making a separate decision about arming them, but that work is good work and will help to ensure that the Syrian opposition is moderate.

Bob Stewart Portrait Bob Stewart (Beckenham) (Con)
- Hansard - - - Excerpts

Terrorists hide among, come from and are sustained by groups of people around them. Will the Prime Minister ensure that the taskforce for tackling extremism puts quite a lot of effort into trying to isolate these misguided people away from those who allow them to operate and who sustain them?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend is absolutely right in the way he puts it. It is not enough to target and go after violent extremists after they have become violent. We have to drain the swamp which they inhabit. That means looking at the process of radicalisation on our campuses. It means looking at Islamic centres that have been taken over by extremists and gone wrong. It means looking at those mosques that are struggling to throw out the extremists and helping them in the work that they are doing. It means going through all the elements of the conveyor belt to radicalisation and ensuring that we deal with them. That is what is important. That is the work that needs to be done.

Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
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I join the Prime Minister and the Leader of the Opposition in relaying on behalf of my constituents, a sizeable proportion of whom are from the British Muslim community, our deepest condolences to the family of Drummer Lee Rigby after his appalling murder.

As part of the Prevent strategy and the new Prevent programme, will the Prime Minister look at the impact of the rising level of attacks on Muslim communities, including mosques, and the role of the English Defence League? Will the new taskforce look at proscribing such groups if the evidence suggests that their violent intentions will reinforce conflict in our country?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I thank the hon. Lady for what she says about the strength of feeling in the communities that she represents. Yes, I can confirm that the taskforce will look at all forms of extremism, and we should be looking at all the best ways of condemning the hate-filled people who are part of the English Defence League. In terms of proscribing organisations, we have to follow the law and what the law itself sets out before taking action.

Edward Leigh Portrait Mr Edward Leigh (Gainsborough) (Con)
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What will be the effect of this threat on the safety of the minority Christian population in Syria? They have already fled Iraq because of our misjudged intervention there, which made them the target of extremists. They are seen to be a supporter of Assad because he protects them and they only want a quiet life. They could now be a target for Hezbollah because we would be arming its opponents, and paradoxically, they could be a target for Sunni extremists because we have no control over where the weapons will end up.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

How best to ensure a Syria that can protect minorities is an important issue. I would challenge the idea that Assad, in taking on those in the opposition, has shown any respect for people’s religion or ethnicity. His bombs, planes and apparent use of chemical weapons have been quite indiscriminate, so I do not accept the idea that somehow minorities will be better off in Syria under an Assad regime. I do not believe they will be. What we should be doing is supporting a Syria that will look after minorities, and that is what the official Syrian opposition is committed to doing.

Dennis Skinner Portrait Mr Dennis Skinner (Bolsover) (Lab)
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Is not the Prime Minister aware that he is playing with fire when he talks about lifting the arms embargo and supplying weapons? Does he not understand history at all? The Americans a few decades ago thought they knew who the real enemy was, and they ended up arming Osama bin Laden and they paid a heavy price. What mechanism will the Prime Minister use to ensure that the weapons do not fall into the hands of the al-Qaeda supporters among the Syrian opposition?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I would make two points to the hon. Gentleman. First, even with the arms embargo in place, arms have been getting to extremist elements of the opposition, and we are more likely to stop that happening by being engaged rather than disengaged. If he wants to go through the history lessons, what about the history lesson of Bosnia? In this House—he was a Member of the House at the time—it was endlessly said that we must not intervene, must not help those who are being slaughtered by Milosevic and must not take any action; to arm them would create a level killing field, we were endlessly told. It was only when the Americans stepped in and helped the Bosnians that we were able to have a peace conference that brought about the peace that that country now enjoys.

Penny Mordaunt Portrait Penny Mordaunt (Portsmouth North) (Con)
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Further to that, does the Prime Minister believe that the fall of the arms embargo will help boost the status and clout of moderate groups within the Syrian opposition?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend makes the very good point that we need to engage with the Syrian opposition, and we are unlikely to be able to shape and support it in the way we want unless we have that process of engagement. That is what the Foreign Secretary and others have been doing, and that gives the best chance of what I think we all want on both sides of this House: a transition with a political settlement, and a future for Syria that all Syrians can support.

Angus Robertson Portrait Angus Robertson (Moray) (SNP)
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I associate the Scottish National party and Plaid Cymru with the Prime Minister’s words of condolence and the resolve to tackle extremism. Will he update the House on how his taskforce will work with the Scottish Government, which has devolved responsibilities for a range of powers, from justice to education?

On Syria, does the Prime Minister acknowledge the important role the United Nations peacekeepers have played on the Golan Heights for the last 40 years? Does he also accept that one of the unintended consequences of his diplomatic initiative in the European Union is that there is a very real risk that those UN peacekeepers will be withdrawn, and is he not concerned about that?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I would not accept any linkage between UN peacekeepers on the Golan Heights and the change in the EU’s position on the arms embargo. That would be an entirely false analogy to draw and, no matter what individual countries might say, I am sure the UN would not take that view. On the issue of how we can best access the information and expertise of the Scottish Government, obviously they will be able to feed in thoughts to the taskforce that I will be chairing.

Shailesh Vara Portrait Mr Shailesh Vara (North West Cambridgeshire) (Con)
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I welcome the Prime Minister’s initiative in setting up the taskforce to which he has referred. He will be aware, however, that many of the individuals concerned receive their training in camps in other countries. With that in mind, will he give an assurance to the House that when he next meets his counterparts from those countries, he will ensure that the question of the training of these individuals in their countries is very high on the agenda?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend is absolutely right. We have a problem of radicalisation, sometimes taking place in this country and sometimes via people on the internet, but also sometimes by people travelling to Pakistan, Somalia or elsewhere and going to camps to be trained as extremists, jihadis and violent extremists. That is a problem we cannot opt out of. We cannot just pretend it is something we have to deal with domestically. We need strong international action and international partnerships to do that.

Jeremy Corbyn Portrait Jeremy Corbyn (Islington North) (Lab)
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Taking the Prime Minister back once again to the issue of Syria, there is a civil war going on in Syria and he is now proposing to arm part of the opposition, which will then create a further civil war within a civil war. There can only be a political solution, and that political solution has to involve all the neighbouring countries, including Iran. Will he put some real energy and effort into getting a conference going that includes all the neighbouring countries, to bring about peace and a resolution there, rather than fuelling this ghastly conflict?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

Where I agree with the hon. Gentleman is that the right answer is a political solution—a political settlement. That is what this peace conference should be about; that is the effort I will be putting in at the G8 when Presidents Putin and Obama are both sitting around the table. Of course we should do that; it is the key. The question I would put back to the hon. Gentleman is: are we more likely to bring that about if Assad has a sense that he cannot win militarily? His current thinking is that he can, and we need to change that in order to deliver a Syria in which everyone can play a part.

Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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I strongly welcome what the Prime Minister said about shale gas; we had further good news about the UK’s reserves only this morning. Given that other countries such as Argentina are forging ahead and exploiting their reserves, when does the Prime Minister expect the United Kingdom to be able to exploit its reserves to a significant enough degree to make a real difference to our energy needs?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

The potential of shale gas is an important point, and what was said today about our reserves was welcome news. We had a seminar in Downing street that suggested they could meet 5% to 10% of our gas needs, but these figures are regularly changing as people look at the available reserves. Clearly, regulatory permissions need to be sought in this country, and we also need to ensure that our own regulation and legislation are fit for purpose.

Glenda Jackson Portrait Glenda Jackson (Hampstead and Kilburn) (Lab)
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Surely the primary concern of this House should not be with the combatants in Syria, but with those innocent civilians who are being slaughtered every day by either side. If there are additional funds to furnish yet more munitions into an area awash with weapons—in my view the equivalent of pouring oil on to an almost uncontrollable fire—surely that money would be infinitely better spent in affording yet more humanitarian aid to countries bordering Syria, which at the moment seem to be the only countries affording any kind of protection to the innocent.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

Where I agree with the hon. Lady is on the fact that we should be leading the way on humanitarian aid, and I think that Britain can be very proud of the fact that we are doing so. We are sending millions of pounds of taxpayers’ money to make sure that people in camps—in Jordan and in Turkey—are properly looked after, and I have seen that with my own eyes. I return to the example in Bosnia: we can go on supplying more and more humanitarian aid, but that alone will not help to bring about a political solution. If we want to bring about a political solution, we have to demonstrate that Assad is not going to win this via military means. We have to get the parties to come together around the table, and I think that as we have recognised the Syrian national opposition as legitimate spokespeople for the Syrian people, we should be giving them that support.

William Cash Portrait Mr William Cash (Stone) (Con)
- Hansard - - - Excerpts

On the question of the EU and tax, will my right hon. Friend give the House an assurance that the proposals in the conclusions are not the thin edge of the wedge towards a Europe-wide tax regime and that in respect of UK taxation regarding multinationals, the City of London and others, the ambit of taxation will remain firmly within this national Parliament?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend is absolutely right to have raised this issue, because often people have said that the reason we cannot get proper information sharing and tax sharing between European Governments is that it is subject to a national veto, and we demonstrated at that Council that that is not the case. So there is no change to unanimity—this absolutely should be an area of national decision making—but what we do want in Europe is countries to come together to share that tax information, so that we can make sure that companies are properly paying their taxes.

Anas Sarwar Portrait Anas Sarwar (Glasgow Central) (Lab)
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The UK stands united, irrespective of colour, faith or origin, in its condemnation of the brutal murder of Drummer Lee Rigby. Will the Prime Minister join me in paying tribute to people of all faiths in London and, in particular, to Lee Rigby’s family, who have spoken out in favour of unity and against those who seek to divide, be they religious extremists, the British National party, the English Defence League or the Scottish Defence League?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

The hon. Gentleman puts it very well. It was very impressive how strong and unified the voices were right across our country—from Muslim organisations, from all sorts of organisations—all condemning this attack in the strongest possible terms and demonstrating that although the terrorists want to divide us, they cannot.

None Portrait Several hon. Members
- Hansard -

rose

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I call Dr Thérèse Coffey. [Interruption.] The hon. Lady did wish to catch my eye but—[Interruption.] She has been a bit slow, so we will get to her in a moment. I therefore call Mr James Duddridge.

James Duddridge Portrait James Duddridge (Rochford and Southend East) (Con)
- Hansard - - - Excerpts

Thank you for calling me, Mr Speaker; I knew I would be lucky.

Let me take the Prime Minister back to the issues of tax transparency. Will he please update the House on the progress being made on the extractive industries transparency initiative?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I am glad that my hon. Friend has asked that question, because although the EITI is a rather unromantic sounding organisation, it is very important if we are going to ensure, in particular, that the poorer countries in our world that have mineral wealth find it a blessing and not a curse. Too often in the past, countries have had money and resources taken away from them and have not benefited from them. We are signing the EITI, the French are doing the same and there is a major push at the G8 to ensure that other countries do that, too. In that way, we can ensure that developing countries make the most of their natural resources.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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It is truly shocking that the Prime Minister has twice now refused to guarantee a vote on his Syria policy, but I want to ask about something completely different. On 21 July 2005, Hussain Osman planted a bomb in Shepherd’s Bush. Eight days later he was arrested in Rome and within weeks the European arrest warrant brought him back to face justice in this country. Is the Prime Minister really still considering leaving the European arrest warrant?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

The hon. Gentleman will have to await the outcome of the important negotiations on the justice and home affairs issues. Clearly, it is important to ensure that we work together with international partners to ensure that people face justice.

Mark Spencer Portrait Mr Mark Spencer (Sherwood) (Con)
- Hansard - - - Excerpts

Following the dreadful events in Woolwich, there has been an outpouring of support for our armed forces. Is the Prime Minister aware that on 29 June, Nottingham will play host to Armed Forces day? I am wearing a ribbon as part of Radio Nottingham’s campaign to add to the profile of Armed Forces day. Would the Prime Minister like to join that campaign?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I will certainly join that campaign. Armed Forces day is a really good initiative and I have been to the last few events—one of them in Plymouth and one in Edinburgh. I am sure that Nottingham will do an absolutely splendid job of celebrating our armed forces and all they do for our country. The day is a really good opportunity for communities to come together and say a very big thank you.

Gerry Sutcliffe Portrait Mr Gerry Sutcliffe (Bradford South) (Lab)
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The whole of the communities that make up Bradford condemn the killing of Lee Rigby and I am heartened today that the Prime Minister has talked about the searching questions that need to be asked about the variety of bodies in which there is radicalism. We need more than a tick-box exercise, and I know it will be more than that. We need to get to the heart of the problem, and to do so quickly. Following 7/7, cities such as Bradford in west Yorkshire had expertise in such matters. The big thing is that it is about talking not only to the Muslim communities but to the whole community, and about celebrating differences. Over the weekend in Bradford, some mosques have opened their doors to the wider community. We must do more of that to ensure that people understand. It is even about the use of language. Last week, Nick Robinson talked about people of “Muslim appearance”, and it is things such as that that we need to resolve.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

To give credit to Nick Robinson—which is not something that I always want to do—he immediately blogged on his website and said that that was a mistaken phrase and that he should not have used it. He recognised that immediately, which was right. What the hon. Gentleman says about this being an opportunity for all communities to open up and understand more about each other is, I am sure, right, but I want to ensure that the taskforce also considers the specific actions that can be taken in respect of organisations that are getting it wrong.

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I call Dr Thérèse Coffey.

None Portrait Hon. Members
- Hansard -

Hear, hear.

Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
- Hansard - - - Excerpts

Thank you for your patience, Mr Speaker.

Let me ask the Prime Minister about energy, which was a big part of the EU Council. It is important that we take advantage and encourage the Commission to deregulate so that we can exploit our own resources not just in this country but in other countries, too, so that we are not reliant on states outside the European Union for our future energy needs.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I am glad that my hon. Friend has been recognised. She is absolutely right, and we should be making sure that we can meet more of our energy needs. That means making the most of what we have, whether that means replacing our nuclear power stations, making the most of technologies such as offshore wind or exploiting new technologies such as shale gas. There is a danger that the EU will try to over-regulate and over-second guess the market rather than allow it to develop.

Ronnie Campbell Portrait Mr Ronnie Campbell (Blyth Valley) (Lab)
- Hansard - - - Excerpts

On tax evasion, what can be done with the British overseas territories, such as Gibraltar, that are advertising for the spivs, the fund managers and the banks? All money is going into those countries—our countries. What can we do to stop them?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I have some good news for the hon. Gentleman: because of the lead we have taken at the G8 and the new changes in the European Union, the Crown dependencies and overseas territories have all agreed to share proper tax information with the UK. That is quite an important breakthrough in ensuring that we have a fairer tax system.

Duncan Hames Portrait Duncan Hames (Chippenham) (LD)
- Hansard - - - Excerpts

No doubt the Prime Minister intends the exploitation of European shale gas reserves to replace our dependency on imports of liquefied natural gas from unpredictable parts of the world. How does he propose to stop it crowding out investment in domestic sources of energy, notably renewables, which result in far fewer carbon emissions?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I am not a protectionist; I do not believe that the aim of policy should be to cut off the access that Britain has to liquefied natural gas, whether it is coming from Qatar or anywhere else. What we want is a competitive energy market where consumers can benefit from competition and low prices, but we also want security of supply. That is why it makes sense to look at shale gas, as well as imported gas, gas from the North sea, and the renewable technologies. We should be open to all these technologies, rather than simply trying to pick winners.

Fiona Mactaggart Portrait Fiona Mactaggart (Slough) (Lab)
- Hansard - - - Excerpts

The Prime Minister has just said that it is best to act internationally, if we can, to tackle tax evasion, but if he cannot get swift international agreement at the EU and the G8 later this month, is he prepared to act on his own?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

We have frequently acted on our own on tax evasion. It is better if we can do these things internationally, because otherwise we are only tackling a part of the problem. The G8 is a great opportunity to bring countries together to do that, but if there is further action that we have to take unilaterally, so be it.

Matthew Offord Portrait Dr Matthew Offord (Hendon) (Con)
- Hansard - - - Excerpts

In recent weeks, I have held many meetings with organisations, including the Community Security Trust, to talk about the issue of extremism on university campuses. In fact, on the day of the Woolwich murder, I met the vice-chancellor of Middlesex university to discuss a recent incident in my constituency. I tell the Prime Minister that not enough is being done to prevent radicalism on university campuses, and I ask him to meet me and representatives from the CST, so that we can tell him of problems where they exist, and remedies that may address them.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I am very grateful for what my hon. Friend says. I have met the CST relatively regularly. It is an excellent organisation, and I commend the work that it does to keep people in our country safe. I will look carefully at its research and at his work to see what more we can do.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Lab)
- Hansard - - - Excerpts

Austerity policies are causing serious economic damage across the European Union. Among other things, they are causing mass unemployment, particularly among young people. We are now suffering from a threat of civil disorder, which has already started—even in peaceful Sweden. Was there any discussion at the EU Council of unemployment and the threat of civil disorder?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

There was a discussion about unemployment because, of course, the rising unemployment in many European countries is an issue of huge concern. The rates of youth unemployment in some southern European countries, such as Spain, Portugal, Greece and Italy, are truly horrific, so more work will be done, including at the next European Council, to look at what lessons we can learn from each other—at what we can learn from countries such as Holland and Germany, which have very low rates of youth unemployment—and I will take a full part in those discussions.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
- Hansard - - - Excerpts

I congratulate the Prime Minister on the excellent work that he has done in the European Union on tax transparency. Has he had a look at the comments made recently by Tim Cook of Apple and Eric Schmidt of Google, who say that it is worth reworking the tax system as a whole and making it fit for the internet and globalised age? Would my right hon. Friend consider making it much simpler, and enabling a much lower rate of corporation tax, to make this country even more competitive?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I thank my hon. Friend very much for that question. Of course, we are cutting the rate of corporation tax down to 20%, and I think we therefore have an even greater right than usual to say to companies, “Look, we have a low tax rate in this country; you now really should be paying it.” The point that I would make is this: of course tax evasion is illegal, but I think there is a case for saying that very aggressive tax avoidance also raises moral issues that companies should consider. That is a conversation that I have had with the CBI and others, who back that view, but we should make it easier for these companies by having international agreements that make it easier for them to make the right choice.

David Hanson Portrait Mr David Hanson (Delyn) (Lab)
- Hansard - - - Excerpts

Funding for the Prevent programme over the past three years has faced public sector pressures, as have many Departments. In policing alone, the funding has fallen from £47 million to £18 million. Will the Prime Minister agree to look at the Prevent strategy again, and to publish alongside it what he believes the envelope should be for funding that stream of activity?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I think I am right in saying that for the past three years Prevent funding has been £39 million in the past year, £36 million in the previous year and £37 million in the year before that, but much of the responsibility for spending and for the individual choices is for local authorities. Of course there are always issues of resources, but there are equally important issues about making sure that we have the right policy and take the right approach in combating both extremism and violent extremism.

None Portrait Several hon. Members
- Hansard -

rose

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

Order. I am keen to accommodate remaining colleagues but there is some considerable pressure on time. Therefore I am looking for a sharp mind and pithy expression, and I need look no further than Dr Julian Huppert.

Julian Huppert Portrait Dr Julian Huppert (Cambridge) (LD)
- Hansard - - - Excerpts

The Prime Minister is right to say that we should not be cowed by terror and to reject knee-jerk reactions. Will he therefore join me in criticising those who seek to make use of the brutal murder of Drummer Rigby as a reason to advocate the full powers of a snoopers charter, which would not have prevented this tragedy from happening but would treat us all as suspects?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I do not think it is helpful to refer to taking action on communications data as a snoopers charter. We use communications data now—our police and Security Service use it now to combat rape, to trace children who have been abducted, to combat murder. In 95% of serious crimes, the police are using not the content of a phone call, but the data about the phone call—when it was made and who it was between. That is vitally important and we must have a mature and grown-up debate in this House about what we do as telephony moves on to the internet. If we do not have that debate, we are not keeping our country safe.

Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
- Hansard - - - Excerpts

I welcome the pan-European resolve to tackle aggressive tax avoidance, but can the Prime Minister tell us whether on 20 May he used his resolve to challenge Eric Schmidt on Google’s behaviour in that respect?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

As I said at the press conference after the EU Council, I raised at the meeting of my business advisory council my G8 agenda on tax transparency and aggressive tax avoidance and said how important it was that companies followed that, and Eric Schmidt contributed to that conversation. He supported the steps that we are taking in the G8, which is welcome. There is an important point here: one country taking action on its own will not solve the problem. We need to make sure that we do this not just across the EU, but in the G8.

Ben Wallace Portrait Mr Ben Wallace (Wyre and Preston North) (Con)
- Hansard - - - Excerpts

When our security services and the police are trying to piece together a terrorist attack, they need to pore over comms data to find out where and when events were planned and by whom. Will the Prime Minister make it clear to those who oppose the comms data proposals that far from being a knee-jerk reaction, those proposals were first mooted in 2007 by the previous Government, who produced a draft Bill, and that this Government produced a draft Bill way before the recent attack?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend makes an important point. The draft Bill that we produced also had huge amounts of pre-legislative scrutiny. We have to recognise that there will always be civil liberties concerns about this issue, so we should look at how we can start moving the debate on, recognising that a block of telephony is covered by fixed and mobile telephony. As we move to more internet-based telephony, how are we going to help the police deal with that? We may have to take this in short steps, so that we can take the House with us and listen to concerns about civil liberties, but I am convinced that we have to take some steps, otherwise we will not be doing our job.

Ian Davidson Portrait Mr Ian Davidson (Glasgow South West) (Lab/Co-op)
- Hansard - - - Excerpts

I welcome the statement from the European Council and the Government, which says that proper information on “who really owns and controls each and every company” will be provided. Will the Government co-operate with the Scottish Affairs Committee in establishing who owns and controls the great landed estates in Scotland, in order that they can minimise both tax avoidance and subsidy milking?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

That is the intention of this move. Having all countries sign up to an action plan for putting together registers of beneficial ownership by companies and the rest of it will help tax authorities to make sure that people are paying tax appropriately. That is a debate that we are leading at the G8 and in the European Union, and that should apply—we hope—to every country.

Alec Shelbrooke Portrait Alec Shelbrooke (Elmet and Rothwell) (Con)
- Hansard - - - Excerpts

Some of the comments that I received after the Woolwich attack could perhaps be most generously described as reactionary. Does my right hon. Friend agree that those who pick on a religion and the people of that religion would do better by visiting Auschwitz-Birkenau and understanding where intolerance may lead? Above all, it should be recognised that these people are no more than cold-blooded psychopathic murderers.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend puts it very well. The point is that there is nothing in Islam that can justify that appalling level of violence. Islam is a religion of peace and we should show respect to Muslim communities and people of the Muslim faith by recognising that and repeating it. As we do that, we also need to recognise that there is a problem with a perversion of Islam that is being used to poison young minds, and we will not defeat that ideology unless we take it on, argue against it and clear it out of universities, Islamic centres and other parts of our country. That is the battle we need to be engaged in, but we will not win the battle unless we take Muslim communities and British Muslims with us. I believe that we can.

Heidi Alexander Portrait Heidi Alexander (Lewisham East) (Lab)
- Hansard - - - Excerpts

Last week, the Lewisham Islamic centre discovered that it was the intended destination of a BNP march, which was subsequently rightly restricted to central London. Does the Prime Minister agree that following the horrific murder of Drummer Lee Rigby, now is the time for all of us to stand with the vast majority of Muslims for whom the actions of Michael Adebowale and Michael Adebolajo were an affront to their religion as much as an affront to our shared way of life?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

The hon. Lady is absolutely right to say that the actions that were taken were not representative of Islam or Britain’s Muslim communities, the Muslim religion, or anything to do with Islam, which is a religion of peace. She is also right to say how important it is that we take action to stop marches and whatever when they are going to inflame tensions and passions in the way that she says.

Henry Smith Portrait Henry Smith (Crawley) (Con)
- Hansard - - - Excerpts

Tomorrow, Defence Secretaries from across NATO member countries meet in Brussels. Whether it be Syria or any other international security issue, may I seek reassurances from my right hon. Friend that NATO remains the cornerstone of our international defence, not the European Union?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend is absolutely right. NATO is the cornerstone of the UK’s defence and should remain as such. It has been very important to try to stop the EU in its endless efforts to try to duplicate NATO’s military structures. That is not at all helpful or sensible.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
- Hansard - - - Excerpts

I appreciate that the Prime Minister has set up the taskforce, which is an important step, but we know that most of the real issues are at a very local level. What support and discussion will the taskforce provide for people such as parents, teachers and other community leaders who spot someone who is being radicalised and need help then and there? Perhaps the forced marriage unit could be used as an example, as head teachers locally tell me that it does very good work in this respect.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

The hon. Lady is absolutely right that in order to respond to the challenge we need not just national taskforces and speeches and a narrative about how we confront violent extremism, but for that to filter down to the local level. We need local councils to take action as well, and to make sure that they support good practice in schools and help parents who are getting into trouble, and all the rest of it. We need to make it easier for people to seek help when they need it and to recognise the signs of radicalisation in their communities.

Dan Byles Portrait Dan Byles (North Warwickshire) (Con)
- Hansard - - - Excerpts

I, too, welcome the Prime Minister’s strong support for developing UK shale gas. Is he aware of the comprehensive Institute of Directors report published last month which showed that a UK shale gas industry could support up to 74,000 direct and indirect jobs, and that by 2030 it could supply up to a third of UK peak gas demand?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend makes an important point. I have not seen that specific report, but I will seek it out. Different conditions apply in America, but one sees there the growth of an enormous industry employing thousands of people, lowering energy costs, making the country more competitive, and ending much of its reliance on gas from overseas. We would be really foolish if we did not learn from that.

Mark Lazarowicz Portrait Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
- Hansard - - - Excerpts

How many other EU member states supported the UK Government in their wish to end the arms embargo on Syria? Is there not a danger that our Government’s policy, and that of France it would appear, is likely to result in a Europe more divided on the issue, thereby weakening our ability to influence a successful outcome to the proposed peace conference?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

At the European Council for Heads of State and Government, which I attended, there was not a long discussion about the Syrian arms embargo. The work was done by my right hon. Friend the Foreign Secretary. There was strong support, though, from the French Government and there was some support from the Italian Government. Some of those countries that have newly joined the EU from the Balkans recognise the arguments that I was making about the mistakes that the west made with respect to Bosnia, so it is important to listen to them as well. The point about the EU arms embargo—this may be a point that colleagues on the Government Benches will particularly recognise—is that we decide our foreign policy as a nation state. In Europe, if we can agree something unanimously, we can have a combined position, but in the end this is something that we decide as an independent nation state.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
- Hansard - - - Excerpts

I thank my right hon. Friend for his comments on the single market in energy. Does he agree that it is important to prioritise the safe exploitation of shale gas, as the opportunity for a cut in energy costs would be significant, especially for the manufacturing industry? That would bring a disproportionate benefit to communities in the north, which have a proud tradition of manufacturing.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend is absolutely right. The figures are striking if we look at what happened with shale gas exploration in the US and at how much of their energy it is now supplying and the effect it has had on their gas prices. Their gas prices are now half the level of those in the UK, so this is an important industry for consumers and for our competitiveness.

William Bain Portrait Mr William Bain (Glasgow North East) (Lab)
- Hansard - - - Excerpts

It has been revealed in its five most recent years of published accounts that on UK revenues of £11.5 billion, Google paid less than £11 million in tax over that period. If the Prime Minister is to offer the right leadership on the issue at the G8 and the EU Council, does he not have to admit to the country that that is just plain wrong? [Interruption.]

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

As someone behind me has just said, that is what happened under Labour. We need to make sure that we put in place rules, regulations, transparency and international action to ensure that companies pay their taxes properly. What I am pleased about is that over the past year, we have made some real progress on this agenda.

Bob Russell Portrait Sir Bob Russell (Colchester) (LD)
- Hansard - - - Excerpts

Twenty-four hours before Drummer Rigby’s murder, I bid farewell to the last Ministry of Defence police officer at Colchester garrison. Some 33 MOD police once provided security to military families in Colchester, but the Labour Government started the process of scrapping that dedicated service. In noting the Prime Minister’s support for the armed forces covenant, and in the absence of any Defence Minister, will he order the immediate reinstatement of MOD police at Colchester garrison?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I will ask the Ministry of Defence to look carefully at that. MOD police do important work, but as a House of Commons and a country we should be frank about the fact that our communities positively welcome having military bases and barracks at their heart. That is what I found in Woolwich and what I find in my own constituency with RAF Brize Norton. We should recognise that we do not protect our services by surrounding them with some ring of steel; we protect our services because we love and revere what they do.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
- Hansard - - - Excerpts

On Syria, like many Members and many people across the country I am increasingly uneasy about the potential escalation of the conflict with the lifting of the EU arms trade embargo. It seems a bit like cat and mouse tactics. I urge the Prime Minister to focus—I am sure that he is doing so—on the peace conference and a negotiated peace settlement. What plans are there, and what discussions have taken place, concerning support for Syria’s post-conflict position? We must learn the lessons from history, as other Members have said.

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

The hon. Lady is absolutely right. Any peace process worth its name has to start with a peace conference, getting the parties around the table and trying to work out the elements of the Syrian opposition and the Syrian Government that could form a transitional Government, but then we have to plan what the Syrian Government and a Syrian political settlement will look like afterwards. One of the lessons from history is that we do not want to see the institutions of the state destroyed. We want to see them properly serving the people.

Philip Davies Portrait Philip Davies (Shipley) (Con)
- Hansard - - - Excerpts

Did the Prime Minister mention at the EU Council the private Member’s Bill promoted by my hon. Friend the Member for Stockton South (James Wharton)? Did he make it clear that if the British people voted in any in/out referendum to leave the EU, that result would be accepted and we would not keep having a rerun of the referendum, as the EU normally does until it gets the result that it wants? If he did not make that clear, would he like to take this opportunity to do so?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend will be pleased to know that there was some interest among my fellow Heads of Government in the private Member’s Bill. I absolutely agree that we must have a referendum, not a neverendum. It is very important that, as with the referendum about Scotland’s future in the United Kingdom, we give the people the chance to decide and then obey their decision.

Jim McGovern Portrait Jim McGovern (Dundee West) (Lab)
- Hansard - - - Excerpts

The Prime Minister mentioned the Government taskforce, and I think he said he would welcome input from the Scottish Government via the hon. Member for Moray (Angus Robertson), and also consider including membership for my right hon. Friend the Member for Salford and Eccles (Hazel Blears). Will it be a Government taskforce or a cross-party taskforce?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

Let me be clear in case I have misled anyone. It is a Government taskforce, but it should listen to the expertise of people who have ideas and policies to help us tackle radicalisation. There are individuals in our country who have been radicalised, but who have seen the light and now realise how their minds were poisoned and have written persuasively about the issue. There are also Members of the House—I singled out the right hon. Member for Salford and Eccles (Hazel Blears) because she did such good work in government on this issue, and it would be worth while listening to her as well. That is how it will work. It is a Government taskforce but it will, of course, listen to the best ideas, wherever they come from.

Rehman Chishti Portrait Rehman Chishti (Gillingham and Rainham) (Con)
- Hansard - - - Excerpts

As someone from a Muslim background whose father was an imam, I very much welcome the statement from the Prime Minister. Will he reiterate that the actions of those two criminal thugs has nothing whatsoever to do with Islam and the Muslim community?

On Syria, will my right hon. Friend clarify what role he sees President Assad playing in any transitional Government, as that was not dealt with at the Geneva conference?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

I thank my hon. Friend for what he says and confirm that, in my view, the acts that took place on the streets of Woolwich had nothing to do with Islam, nothing to do with Muslim Britain, and nothing to do with this religion of peace. My hon. Friend knows that as well as anyone.

I do not believe that President Assad can play a part in a transitional Government. We need a process so that people can see that elements of the Alawite community and the Syrian national opposition are properly represented, and so that people in Syria are able to unite behind a transitional Government. In my view, someone who has seen the murder of up to 80,000 people, the destruction of so many communities and the use of chemical weapons has no part to play in the Government of a civilised country.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
- Hansard - - - Excerpts

On the inside cover of Chairman Mao’s little red book of revolutionary war, which remains a terrorist handbook, are printed only five words: “Kill one, intimidate a nation.” Does my right hon. Friend agree that our nation will never be intimidated by acts of extremists, be they from the Muslim community, the English Defence League, or anybody else?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend is absolutely right. Regrettably, this country has suffered from terrorists over many years. We suffered dreadfully at the hands of the IRA, but I think that taught us a lesson that if we stand true to our principles, we stand up for freedom and democracy and the terrorists can never win.

David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
- Hansard - - - Excerpts

As my right hon. Friend the Prime Minister may be aware, Drummer Lee Rigby joined the Army as a cadet in the borough of Bury, which has long and historic links with the Royal Regiment of Fusiliers. Will my right hon. Friend join me in paying tribute to all those in Bury who have paid their respects and sent their condolences to his family, in particular the peaceful and law-abiding members of the Muslim community in Bury who are just as shocked and horrified at this heinous crime as those of other faiths and those of none?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend says it all, and it is fitting that his should be the last contribution—[Interruption.] I am so sorry; I am sure the contribution of my hon. Friend the Member for Kettering (Mr Hollobone) will be equally fitting. My hon. Friend the Member for Bury North (Mr Nuttall) made an important point about the connection that our communities feel to our armed forces, which is felt by people from every community, including the British Muslim community. Let us not forget how many British Muslims serve in Britain’s armed forces.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
- Hansard - - - Excerpts

Following the question from my hon. Friend the Member for Bury North (Mr Nuttall), Her Majesty’s armed forces represent and promote the very best of British values, yet it is a sad fact that Muslim recruits can face estrangement from their friends and family if they sign up. In the wake of the hateful murder of Drummer Rigby, what more can we do to promote Muslim support for, and participation in, Her Majesty’s armed forces?

Lord Cameron of Chipping Norton Portrait The Prime Minister
- Hansard - - - Excerpts

My hon. Friend raises an important point. First, we should pay tribute to British Muslims, Sikhs and Hindus who serve in our armed forces and the brave things that they do. I argue that for all institutions—the Army, just as for a political party, the judiciary or anyone else—it is not enough just to open the doors and invite people in. We need to get out into minority communities and encourage people to join up and serve. Only when people see others from their background and community serving in the Army or on these Benches in politics will they truly feel empowered to do the same. As I said, that is a very good point on which to end.

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I thank the Prime Minister, the Leader of the Opposition and all 62 Back Benchers who took part in those exchanges.

Energy bill (Programme) (No. 2)

Motion made, and Question put forthwith (Standing Order No. 83A(9)),

That the Order of 19 December 2012 (Energy Bill (Programme)) be varied as follows:

(1) Paragraphs 4 and 5 of the Order shall be omitted.

(2) Proceedings on Consideration and Third Reading shall be concluded in two days.

(3) Proceedings on Consideration shall be taken on each of those days as shown in the following Table and in the order so shown.

(4) Each part of the proceedings shall (so far as not previously concluded) be brought to a conclusion at the times specified in relation to it in the second column of the Table.

Table

Proceedings

Time for conclusion of proceedings

First Day

New Clauses and new Schedules relating to electricity market reform other than any relating to electricity demand reduction, amendments to Part 2 other than amendments 1, 10, 34 to 47, 51 and 100, New Clauses and New Schedules relating to nuclear regulation, amendments to Part 3, amendments to Part 5 and amendments to Clauses 121 to 125.

7 pm

Amendments to Clause 126 and Schedule 14.

10 pm

Second day

New Clauses and new Schedules relating to decarbonisation, amendments to Part 1 and remaining amendments to Clause 5.

4 pm

New Clauses and New Schedules relating to electricity demand reduction and remaining proceedings on Consideration.

6 pm



(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on the second day.—(Gregory Barker.)

Question agreed to.

Energy Bill

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
Read Full debate Read Hansard Text
[1st Allocated Day]
[Relevant Documents: First Report from the Energy and Climate Change Committee, Session 2012-13, on the Draft Energy Bill: pre-legislative scrutiny, HC 275, and the Government response, Cm 8504, Oral Evidence taken by the Energy and Climate Change Committee, Session 2012-13, on Investment in energy infrastructure and the Energy Bill, HC 749 i-iii.]
Consideration of Bill, as amended in Public Bill Committee.
New Clause 8
Power to make capacity market rules
‘(1) The Secretary of State may make capacity market rules which, subject to subsection (2), may contain any provision that may be made by electricity capacity regulations.
(2) Capacity market rules may not make—
(a) provision falling within—
(i) section 21(3);
(ii) section 22(3);
(iii) paragraphs (f) or (g) of section 22(4);
(iv) section 22(5)(a);
(v) paragraphs (b), (c), (d) or (f) of section 23(2);
(vi) section 24;
(vii) section [Provision about electricity demand reduction];
(b) provision for the Secretary of State to require a person to provide information or advice to the Secretary of State.
(3) Electricity capacity regulations may make provision to confer on the Authority, to such extent and subject to such conditions as may be specified in the regulations, the power to make capacity market rules.
(4) The conditions may in particular include conditions about consultation; and provision made by virtue of subsection (3) must provide that, before any exercise of the power to make capacity market rules, the Authority must consult—
(a) any person who is a holder of a licence to supply electricity under section 6(1)(d) of EA 1989;
(b) any person who is a capacity provider.
(5) Provision made by virtue of subsection (3) may include provision—
(a) for the reference to the Secretary of State in section27(2)(c) to have effect, for the purposes of capacity market rules and to such extent as may be specified in the regulations, as a reference to the Authority;
(b) for section27(3) to apply in relation to a disclosure required by virtue of the capacity market rules.’.—(Michael Fallon.)
Brought up, and read the First time.
16:55
John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

With this it will be convenient to discuss the following:

Government new clause 9—Capacity market rules: procedure.

Government new clause 10—Capacity market rules: further provision.

New clause 5—Expert panel—

‘Schedule [The Expert Panel] has effect.’.

New schedule 1—

‘The Expert Panel

1 Regulations shall establish a panel of experts (in this Act referred to as “the Expert Panel”) in accordance with paragraphs (2) to (6) below.

Duty to consult

2 (1) Regulations made by virtue of paragraph 1 shall provide that before—

(a) any contracts for differences are entered into under Part 1; or

(b) any investment contracts are entered into under Schedule 3

the Secretary of State shall seek advice from, and the opinion of, the Expert Panel in relation to the matters specified in sub-paragraph (2) below.

(2) The matters in relation to which advice and opinion is to be sought from the Expert Panel are—

(a) any advice provided to the Secretary of State by the national system operator;

(b) the financial and other terms on which it is proposed a contract for difference or an investment contract be entered into;

(c) whether the agreed strike price (or equivalent) and the term of the contract represents value for money for consumers; and

(d) whether, in all the circumstances, it is appropriate for the CFD Counterparty to enter into the relevant contract.

(3) Where the Secretary of State proposes to disregard in whole or in part any of the advice or opinion provided by the Expert Panel, he shall be under a duty to ensure the Expert Panel is provided with his reasons for disregarding or disagreeing with the advice or opinion and place a copy of the reasoning in the Library of the House.

3 (1) provide that it shall be the duty of the Secretary of State and the national system operator to provide the Expert Panel with all such information as it may require;

(2) require the Expert Panel to provide the Authority and Parliament with details of any advice and opinion provided under this Part;

(3) require the Expert Panel to publish minutes of its meetings; and

(4) permit the Expert Panel to publish such information as the Expert Panel thinks fit about the advice it gives.

Membership etc. of the Expert Panel

4 The members of the Expert Panel shall be appointed by the Secretary of State and shall comprise a Chairman, a consumer representative, a representative of the Committee on Climate Change, a representative of the Authority and such other members as the Secretary of State may decide.

5 (1) In appointing persons to be members of the Expert Panel, the Secretary of State must secure, so far as practicable, that the Expert Panel—

(a) is independent; and

(b) is comprised of technical, academic, economic, legal and such other experts necessary to give the informed advice required.

(2) The Expert Panel must not include any person who is—

(a) employed by an eligible generator, or who has been employed by an eligible generator in the previous 12 months;

(b) employed by an electricity supplier, or who has been employed by an electricity supplier in the previous 12 months; or

(c) employed by the national system operator.

(3) The Chairman and every member of the Expert Panel—

(a) shall be appointed for a fixed period, specified in the terms of their appointment, but shall be eligible for reappointment at the end of that period;

(b) shall not serve on the Expert Panel for longer than eight years in total;

(c) may at any time be removed by a notice from the Expert Panel to the Secretary of State following a majority vote.

Committees and other procedures of the Expert Panel

6 The Expert Panel may make such arrangements as they think fit—

(a) for committees established by the Expert Panel to give advice to it about carrying out the Expert Panel’s functions, providing such committees only include persons who are members of the Expert Panel;

(b) for regulating its own procedure and for regulating the procedure of committees established by them, including timescales of giving advice, as it sees fit;

(c) as to quorums and the making of decisions by majority.’.

Amendment 162, in clause 5, page 4, line 42, at end add—

‘with predominating weight given to (2)(c) the cost to consumers.’.

Government amendment 52.

Amendment 163, in clause 6, page 5, line 21, at end insert—

‘(c) which is a public document and will be made available, together with all related documents, by the Secretary of State and the parties to the contract.’.

Amendment 23, page 5, line 28, at end insert—

‘, with the exception of electricity generated from nuclear power stations’.

Amendment 32, page 5, line 29, at end insert—

‘ “Biomass” means fuel used in a generating station where—

‘(a) at least 90 per cent of its energy content is derived from relevant material (that is to say, material which is, or is derived directly or indirectly from, plant matter, animal matter, funghi or algae), and

(b) if fossil fuel forms part of it—

(i) the fossil fuel is present following a process—

(aa) to which the relevant material has been subject, and

(bb) the undertaking of which has caused the fossil fuel to be present in, on or with that material even though that was not the object of the process; or

(ii) it is waste and the fossil fuel forming part of it was not added to it with a view to its being used as a fuel.

“Qualifying combined heat and power generating station” means a combined heat and power generating station which has been accredited under the CHPQA.’.

Government amendments 53 to 60.

Amendment 33, in clause 10, page 8, line 28, at end insert—

‘(10) A direction may not be given under this section to a fossil fuel or renewable energy plant with a rated capacity of 15MW or greater that use any biomass unless they are—

(a) a qualifying combined heat and power generating station; or

(b) an operational carbon capture and storage plant.’.

Government amendment 61.

Amendment 24, in clause 11, page 8, line 37, at end insert—

‘(3) Payments offered under a contract for difference relating to the supply of electricity generated by nuclear power must not exceed payments offered under any contract for the supply of electricity from renewable sources.

(4) For the purposes of subsection (3)—

(a) the calculation of payments must include both the strike price and the duration of the contract;

(b) renewable sources are defined in accordance with Article 2 of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources.’.

Government amendments 62 to 65.

Amendment 152, in clause 17, page 11, line 6, at end insert—

‘(2A) In determining for the purposes of an order under subsection (1) whether the maximum cost provided for by the order has been reached, or a cost greater than that maximum would be incurred, a cost is to be taken into account if, and only if, it has been incurred, or is to be incurred, in connection with low carbon electricity generation.

(2B) The Secretary of State may give a direction suspending the effect of an order under subsection (1) for such period, and in relation to costs of such description, as are specified in the direction.

(2C) Before giving a direction under subsection (2B) the Secretary of State must consult such persons as the Secretary of State thinks appropriate.’.

Amendment 164, in clause 18, page 11, line 33, at end insert—

‘(i) All consumers of electricity upon whom the costs of the regulations will fall.’.

Amendment 27, page 11, line 35, at end insert—

‘(3) Before making regulations under this Chapter which relate to nuclear electricity generation, the Secretary of State must ask the National Audit Office to carry out an examination of and produce a report on whether the terms of the contract for difference offer value for money.

(4) The Secretary of State may ask the National Audit Office to carry out an examination and produce a report on the terms of a contract relating to non-nuclear generation.

(5) The National Audit Office report and recommendations must be published one month before a contract is laid before Parliament.’.

Amendment 48, in clause 21, page 12, line 40, at end insert—

‘capacity may be secured by capacity auctions or by the establishment of a strategic reserve or by other means’.

Amendment 165, in clause 22, page 13, line 15, after ‘agreement’ insert—

‘is a public document to be made available, together with all related documents, by the Secretary of State and the parties to the agreement; and’.

Government amendments 101 and 102.

Amendment 29, in clause 22, page 13, line 21, at end insert—

‘(2A) Electricity capacity regulations may not make provision in respect of fossil fuel plants.

(2B) For the purposes of subsection (2A) “fossil fuel plant” means an electricity generating station which satisfies the conditions in Chapter 8, Section 42(4)(b).’.

Amendment 28, page 13, line 23, at end insert—

‘(3A) Capacity agreements may not be made in respect of nuclear electricity generation.’.

Amendment 49, page 14, line 6, at end insert—

‘(e) conferring on the Secretary of State the power by regulation to introduce a system of strategic reserve of supply; and

(f) conferring on The Secretary of State by regulation the power to designate a nominated person to hold and manage the Strategic Reserve on his behalf (“the Strategic Reserve Operator”).’.

Government amendment 103.

Amendment 50,  page 14, line 9, at end add—

(a) A person is eligible to be designated as the Strategic Reserve Operator if the person is—

(i) a company formal and registered under the Companies Act 2006; or

(ii) a public authority, including any person whose functions are of a public nature.

(b) The Strategic Reserve Operator must contract with the System Operator for the circumstances under which the Strategic Reserve Operator supplies power to the System Operator.

(c) The Secretary of State must approve the drawing up of any contract between the System Operator and the Strategic Reserve Operator and may from time to time vary the terms of the contract should circumstances require.

(d) The Secretary of State must lay before Parliament a reasoned case for any change of content under subsection (5).

(e) Strategic Reserve regulations may make provision for payments to be made by electricity suppliers or capacity providers to a settlement body for the purposes of enabling the body—

(i) to meet such descriptions of its costs that the Secretary of State considers appropriate;

(ii) to hold sums in reserve;

(iii) to make payments to the Strategic Reserve Operator for the purpose of securing and operating Strategic Reserve capacity.’.

Government amendment 104.

Amendment 166, in clause 27, page 15, line 40, leave out ‘may’ and insert ‘must’.

Government amendments 105 to 107.

Amendment 94, in page 23, line 5, leave out clause 38.

Amendment 151, in clause 38, page 23, line 34, at end add—

‘(5) The Secretary of State may not exercise the power under subsection (1) if the consequence would be to raise the price of electricity for consumers.’.

Amendment 153, in clause 41, page 25, leave out lines 35 to 42.

Amendment 154, page 27, leave out lines 9 and 10.

Amendment 155, page 28, line 17, leave out ‘may’ and insert—

‘must, so as to make good the shortfall,’.

Amendment 156, page 27, line 14, before ‘make’, insert—

‘and insofar as subsection (12) applies must,’.

Amendment 157, page 29, line 8, leave out subsection (6).

Amendment 158, page 29, line 7, leave out ‘(10)’ and insert ‘(9)’.

Amendment 159, page 34, leave out from line 8 to end of line 37 on page 35.

Amendment 160, page 36, leave out from line 1 to end of line 46.

Amendment 161, page 37, leave out lines 18 and 19.

Amendment 167, page 36, line 5, leave out ‘the costs’ and insert ‘the publicly substantiated costs’.

Amendment 168, page 36, line 8, leave out ‘the income’ and insert ‘the publicly substantiated income’.

Amendment 169, page 36, line 24, at end insert—

‘(g) the costs to consumers’.

Amendment 170, page 38, line 10, leave out

‘A certificate purchase order may provide for’

and insert—

‘A certificate purchase order will require at least the same level of information as required under the Renewables Obligation and may provide for’.

Amendment 171, page 38, line 37, leave out ‘may’ and insert ‘must’.

Amendment 172, page 38, line 38, leave out ‘subsection (3)’ and insert ‘Section 32X’.

Amendment 95, in page 42, line 27, leave out clause 42.

Amendment 173, in clause 42, page 42, line 28, at beginning insert—

‘Unless the Secretary of State or the Regulator permits otherwise in the consumer interest,’.

Amendment 174, page 42, line 31, leave out ‘7.446’ and insert ‘8.760’.

Amendment 179, page 42, line 35, at end insert—

‘( ) Section 42(1) is not to apply in relation to CCS plant until completion of the commissioning and proving period that shall last no longer than 3 years.’.

Amendment 150, page 42, line 36, leave out ‘2044’ and insert ‘2029’.

Amendment 96, in page 43, line 41, leave out clause 43.

Amendment 175, in clause 43, page 43, line 43, at end insert—

‘or significant risk of other disadvantage to the consumer.’.

Amendment 97, in page 45, line 14, leave out clause 44.

Amendment 98, in page 45, line 32, leave out clause 45.

Amendment 99, in page 46, line 36, leave out clause 46.

Amendment 176, in clause 50, page 50, line 16, leave out

‘As soon as is reasonably practical’

and insert ‘Within one month’.

Amendment 177, page 50, line 16, leave out ‘five years’ and insert ‘one year’.

Government amendment 66.

Amendment 178, page 50, line 31, at end insert—

‘(d) assess and detail the impact on electricity prices to the various classes of consumers of the measures described in the Act.’.

Government amendments 119 to 125.

Amendment 21, in clause 121, page 92, line 15, leave out from ‘objects’ to end of line 17.

Amendment 22, page 92, line 17, at end insert—

‘(f) requiring a licence holder to ensure that—

(i) customers on prepayment meters shall be charged the lowest tariff available from that licence holder;

(ii) no more than 20 per cent. of each payment made goes towards meeting outstanding debt.’.

Government amendments 126 to 133, 68 and 134.

Amendment 26, page 106, line 40, in schedule 2, at end insert—

‘(2A) Before entering into an investment contract, the Secretary of State must ask the National Audit Office to carry out an examination of and produce a report on whether the terms of the contract offer value for money.

(2B) The National Audit Office report and recommendations must be published one month before a contract is laid before Parliament.’.

Government amendment 71.

Amendment 25, page 107, line 43, in schedule 2, at end insert—

‘(6A) An investment contract may not include provision to underwrite or provide state guarantees for all or part of the construction costs of nuclear generation plants.’.

Government amendment 72.

Amendment 9, page 108, line 24, at end insert—

‘( ) For the purposes of paragraphs 1 and 2, information is “confidential information” only if it constitutes a trade secret.’.

Amendment 8, page 108, line 26, leave out paragraph 3.

Government amendments 73 to 90.

Amendment 148, page 119, line 13, in schedule 4, at end insert—

‘(iii) substantial pollution abatement equipment dealing with oxides of sulphur, oxides of nitrogen, heavy metal emissions or particles is fitted to the generating station.’.

Amendment 149, page 119, line 39, leave out ‘42(5)(b)’ and insert ‘42(6)(b)’.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I rise to speak to Government new clauses 8, 9 and 10, and Government amendments 52 to 66, 68, 71 to 90, 101 to 107, and 119 to 135. I should also like to respond to the amendments tabled by hon. Members. I ask the indulgence of the House if my speech is necessarily fuller than it might be so that I can do justice to each of the six main areas in the group, namely the transparency of investment contracts; the counterparty arrangements; the capacity market; nuclear power; other issues including biomass, emissions performance standards and the costs of electricity market reform; and consumer tariffs.

I thank Opposition Members and other hon. Members for their contributions in Committee. The Minister of State, Department of Energy and Climate Change, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker), said at the time that the Bill needed clear accountability and that Parliament must have the information it needs to scrutinise the delivery of electricity market reform properly.

New clause 5 and new schedule 1 seek to establish an expert panel to scrutinise electricity market reform. Let me assure hon. Members that development of the contracts for difference and investment contracts will be informed by close consultation with relevant experts. We have already taken a number of steps in that regard, which is why I suggest that new clause 5 and new schedule 1 are unnecessary.

Our decisions on strike prices for CFDs will be informed by analysis from the National Grid. The robustness of that analysis will be scrutinised by an independent panel of technical experts who will report to the Government. Their report will be published. Any divergence of opinion between the panel, the Government and National Grid will be reported and explained. Given the existing role of the panel of technical experts, I do not see a wider remit for another expert panel to look at CFDs.

I agree that investment contracts should be subject to rigorous scrutiny and the best available advice, which they will be. For investment contracts relating to renewables projects, I am minded to use the draft CFD strike prices informed by the robust process just outlined. For other low-carbon technologies, which are bilaterally negotiated, specialist advice will be sought as appropriate and there will be rigorous scrutiny. For example, for Hinkley Point C we have appointed technical and financial specialists to advise on whether any proposal represents value for money. We will publish details of that contract when and if it is negotiated.

Mike Weir Portrait Mr Mike Weir (Angus) (SNP)
- Hansard - - - Excerpts

I am listening closely to the Minister. Does he share the worries of many hon. Members? The Bill will presumably finish its progress in the House tonight, but we still do not know what the strike prices are. We have been promised the publication of a document setting out details including strike prices for months, but it keeps being put back. I am told that it will not appear before July. Does the Minister understand the concern about the transparency of the process because we will not know what the strike prices are before the Bill completes its passage?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

The Bill is before the House today and tomorrow, and has some way to go before it completes its passage through Parliament. Let me assure the hon. Gentleman that he will have an indication of the draft strike prices before the Bill completes its passage. If he will allow me, I want to say more in a moment about how we can improve transparency.

Amendments 8 and 9, tabled by the right hon. Member for Don Valley (Caroline Flint) and the hon. Members for Rutherglen and Hamilton West (Tom Greatrex) and for Liverpool, Wavertree (Luciana Berger), focus on the important issue of transparency of investment contracts. The Bill requires all investment contracts to be laid before Parliament alongside a statement of their importance to Government objectives. For Hinkley Point C, we have also committed to publishing summaries of reports from our external advisers. There is a difficult balance to be struck between publishing as much as possible about a contract, while also allowing some commercially sensitive information to be withheld from publication. It is crucial that developers provide the information we need to show that a contract represents value for money, but it would be inappropriate to publish information that damages a developer’s commercial interests.

This point is relevant to amendments 163, 165, 166, 171 and 172, which were tabled by my hon. Friend the Member for Daventry (Chris Heaton-Harris) and relate to information acquired or produced under the Bill. It would not be appropriate to release commercially confidential information provided under the provisions, but let me reassure the House and the hon. Member for Angus (Mr Weir) that we will publish details on the CFDs and capacity agreements signed each year through annual updates to the EMR delivery plan, and details of how much of the budget has been expended. Secondary legislation, such as that under the capacity market provisions, will set out details of the information flows, transparency and handling of sensitive information. That includes information acquired under clause 27. Ofgem will continue to publish information gathered from generators about the biomass they have used.

John Robertson Portrait John Robertson (Glasgow North West) (Lab)
- Hansard - - - Excerpts

On the rules governing what is considered sensitive, who will set the criteria: the companies themselves or the Government?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

The judgment will be one for the Government, and I want to come on to a proposal on that. I also want to assure my hon. Friend the Member for Daventry, in relation to amendment 164, that there will be public consultation on the draft regulations in the autumn. On amendment 170, relative to what is currently required under the renewables obligation, we would remove only redundant information requirements under the fixed price certificate scheme. However, in answer to the hon. Member for Glasgow North West (John Robertson), I am mindful of the points made in Committee on the need to maximise transparency.

There are a number of other improvements we can make to investment contracts. First, following the good points made in Committee by the hon. Member for Brent North (Barry Gardiner) on the distinction between withholding and redacting information, I will make a commitment to publish a description of any information that is withheld and the reason for that. Secondly, I have tabled amendments 71 and 72, which remove the Secretary of State’s discretion to withhold information from a contract after it has been agreed, but before it is laid before Parliament. That means that any confidential information will have to be clearly identified as such during contract negotiations, and there is no further discretion then to withhold information once those are concluded.

Martin Horwood Portrait Martin Horwood (Cheltenham) (LD)
- Hansard - - - Excerpts

The Minister is, however, describing a process in which information is published and laid before Parliament after the contracts have been signed. If, as is likely in the case of Electricité de France, we are talking about a 30-year contract, does he agree that it is practically pointless to have scrutiny after the event, when we would in effect be locked in for nearly a generation? What exactly does he expect Parliament to do if it then looks at the published details of the negotiations and does not like them?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I will describe in some detail the arrangements for the scrutiny of any deal done or any negotiations concluded at Hinkley, but I would suggest to my hon. Friend that Parliament is pretty good at scrutinising such arrangements, including through its various Committees. Likewise, it is of course also open to the National Audit Office to provide scrutiny.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I must make some progress, if the hon. Lady will forgive me.

The third improvement I am suggesting through amendment 52 is to place a duty on the Government to publish a report each year setting out how they have exercised their powers and carried out their functions under part 2 of the Bill. I hope that that provides particular comfort to my hon. Friend the Member for Daventry, who, through amendments 176 and 177, is looking to bring forward the five-year review in clause 50 and require speedy progress, but the review that he suggests would take more than one month, while enough time must elapse if we are to collect sufficient data to make an informed judgment. On his amendment 178, however, I can assure him that we will look closely at the impact on different consumers when carrying out the five-year review, as we already do with our impact assessments on electricity market reform. Finally, Government amendment 66, which follows a helpful suggestion in Committee—again from the hon. Member for Brent North—will bring the emissions performance standard within the scope of the review.

I turn now to the counterparty arrangements for CFDs and investment contracts. I have tabled several amendments on this topic—again, many of them responding to very reasonable points made in Committee. Amendments 53 to 55 and 74 to 76 set out the circumstances in which we might need more than one counterparty, while amendments 56 and 77 extend the notice period before a body can withdraw its consent to act as counterparty. Amendments 57, 62, 63, 78, 82 and 83 make minor changes to avoid any confusion over the use of the terms “obligations” and “liabilities”, while amendments 58, 65, 85 and 86 create a statutory guarantee that the counterparty will exercise its functions to ensure CFD and investment contract liabilities are met and place a duty on the Government to provide the powers to do this.

John Robertson Portrait John Robertson
- Hansard - - - Excerpts

Will the Minister give way?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I will just finish this section.

Amendments 60, 64, 80 and 84 make it clear that supplier debts can be pursued through the courts and that payments to generators will be pro rata in the unlikely scenario that the counterparty does not have sufficient funds immediately available, while amendments 59 and 79 ensure that suppliers only face costs that are related to the regime, including operational costs of the counterparty. Amendments 61, 68 and 81 are minor corrections and clarifications to ensure that the settlement of payments can work effectively, and amendments 88, 89 and 90 introduce a duty to transfer investment contracts to the CFD counterparty, thus ensuring they transfer quickly once the CFD regime is in place next year—that reflects points made by the hon. Member for Southampton, Test (Dr Whitehead) in Committee—while amendments 73 and 87 are minor changes to align the drafting of schedule 2 with part 2.

I am sorry to have kept the hon. Member for Glasgow North West (John Robertson) waiting.

John Robertson Portrait John Robertson
- Hansard - - - Excerpts

I thank the Minister for being generous in taking interventions.

Who will scrutinise the counterparties’ liabilities? We saw how everyone thought that the banks were safe and had plenty of money and that things were good, but it did not turn out that way, and even the Treasury’s own predictions over the last three years have not been met properly. What guarantee can the Minister give, therefore, that the counterparties will have sufficient finances to meet their liabilities?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I am happy to give the hon. Gentleman further written assurances on that. He might be on rather weak ground in discussing the regulatory framework put in place for the banks, given that we have had to take immediate and fairly radical steps to improve it, but if I can give him any further reassurances on his main point, I certainly will.

The third main issue covered by this group of amendments is the funding and governance of the capacity market. I shall deal with the remaining Government amendments and new clauses, which relate to that market and are, I hope, relatively uncontroversial, before coming to the more important amendments tabled by the hon. Member for Southampton, Test. New clauses 8 to 10 and amendments 105 to 107 will enable us to set out detail of the capacity market in a combination of two places: in regulations, changes to which would be made and overseen by the Secretary of State; and in rules, which once made by the Secretary of State could be overseen by Ofgem.

The intention is to give Ofgem the responsibility for consulting on and implementing future changes to those elements in capacity market rules, in line with evolutions in the existing market structure. These changes enable that. However, Ministers would retain accountability for key aspects of the scheme, such as capacity volumes and cost control. Amendments 101 to 104 make clear our intentions for the capacity market settlement body, which has overall responsibility for managing payment flows—in short, that capacity payments will have to flow through the settlement body; that it can discharge certain technical obligations and functions through an agent; and that it can recover costs only in connection with the obligations placed on it as the settlement body.

Amendments 45 to 50, tabled by the hon. Member for Southampton, Test, would allow a second, alternative capacity mechanism, known as a strategic reserve, to be included in the Bill. As I understand it, a strategic reserve would hold a small amount of capacity outside the market, to be deployed only in limited circumstances. The Government have always acknowledged the potential benefits of a reserve as a short-term measure. If it is necessary to respond to a short-term security of supply challenge, Ofgem already has powers it could use. For instance, it could strengthen the options that the national grid has, to ensure sufficient capacity is in place before the capacity market is implemented. However, I would suggest to the hon. Gentleman that a capacity market is a better medium-term solution to address the current investment challenge and ensure continued security of supply, for two reasons.

First, if used as a longer-term intervention, a strategic reserve could undermine the market signals for capacity providers by reducing revenue certainty. That is because of the uncertainty about when the reserve might be deployed and the negative impact on the revenue of other capacity providers. There is a danger that investors may decide that future Governments will be tempted to use the reserve too frequently—a reasonable concern in a world of rising prices—which would increase the risk of not getting a sufficient return on their investment. The resultant increase in financing costs would flow through to the consumer, with the long-term risk that less capacity is built and the Government are forced to create a larger and larger reserve, at which point the competitive market disappears. By contrast, a capacity market is open to all providers of reliable capacity, with the only exceptions intended to be plant receiving support under CFDs. This provides the right, market-based signals for both existing and new capacity. Secondly, offering both capacity mechanisms in the Bill—the capacity market and the strategic reserve—would create regulatory uncertainty about the Government’s preferred approach and, again, act as a disincentive to investment.

Let me turn, fourthly, to nuclear power. The Government have made it clear that nuclear generation has an important part to play in decarbonising electricity generation. It is a source of reliable generation capacity and it is a vital part of our energy mix. CFDs are intended to provide support to all forms of low carbon generation; hence I could not support amendment 23, as it would exclude nuclear generation. I also have concerns about amendment 24, which seeks to limit the amount paid under a CFD to nuclear generation to no more than what can be paid to renewables generation. It would not make sense artificially to link the amount of support for one technology with support for another. Support should be set based on robust evidence and advice that demonstrates, for instance, that the level of support makes a project economically viable—and thus will attract investment—and that it delivers our policy objectives while minimising costs for consumers. More widely, renewables support rates will vary over time, as has happened with the renewables obligation, and a mechanism to link support levels in this way, as proposed in amendment 24, could be cumbersome and could restrict our discretion to set support levels that might otherwise provide value for money.

17:17
Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
- Hansard - - - Excerpts

Does the Minister agree, however, that the Government’s position on nuclear ought to be guided by the coalition agreement, which clearly stated that new nuclear should “receive no public subsidy”? Is he not acting rather like Humpty Dumpty in “Through the Looking Glass”, in that he is making words mean what he wants them to mean? Subsidy means giving extra money to that technology; it does not matter that he is also giving subsidies to renewables. He seems to be arguing that it is not a subsidy if it is being given to renewables and to nuclear, but it is still a subsidy. Will he not recognise that and stick to the line in his own coalition agreement?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

Of course I stick to the line. On this side of the House we all stick to the terms of the coalition agreement, and it is important that we keep doing that. I do not see any reference in the Bill to the word “subsidy”. When the hon. Lady sees the terms of any contract that might be concluded with EDF for Hinkley, or indeed with Horizon Hitachi for the next two stations, she will see that the word “subsidy” is not involved.

Amendment 25 would prohibit the Government from underwriting, or providing in investment contracts, guarantees to cover nuclear construction costs. Let me reassure the House, if there is a concern about construction cost overruns, that such overruns for new nuclear will be borne by the developer. There are two scenarios, however, in which it might be reasonable for certain construction risks to be shared. They include cases involving less mature technologies such as carbon capture and storage, reflecting the high level of uncertainty around those construction costs, and those relating to certain events outside a developer’s control, such as specified change in law events. An example could involve a law that specifically discriminated against nuclear.

More widely, I can assure the House that we will only sign a contract in respect of Hinkley that is fair, affordable and represents clear value for money for consumers. Amendments 26 and 27 would delay the Government’s making CFD regulations relating to nuclear power or signing an investment contract until the National Audit Office had first carried out a value-for-money assessment of nuclear power or the relevant investment contract. It would not be right to hold up the delivery of a major Government programme that is vital for economic growth and jobs across the country until the NAO had undertaken a review. We have already put a significant amount of expert scrutiny into the decision-making process to ensure a robust evidence base, and will be consulting on the draft electricity market reform delivery plan to augment that.

More generally, the major CFD regulations will be consulted on and will be subject to affirmative parliamentary approval. Investment contracts are already subject to close scrutiny by external advisers to ascertain whether they represent value for money. Combined with my earlier commitments and amendments to the Bill, this will ensure transparency of investment contracts.

Joan Walley Portrait Joan Walley
- Hansard - - - Excerpts

Is there not a concern about the role of the National Audit Office in all this? There is no way of achieving transparency during the negotiation process, and unless we accept the amendments proposing a panel to oversee the process, there will be no way of finding out what is being agreed before we are presented with a fait accompli.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

My first answer to the hon. Lady is that there is nothing to prevent the National Audit Office from looking into anything it wants to. The Government cannot control that, and nor can she. Secondly, I have already said that summaries of the advice will be published, and it will be perfectly possible for Committees of this House to look into these matters and satisfy themselves that the appropriate advice has been taken.

Joan Walley Portrait Joan Walley
- Hansard - - - Excerpts

Is not part of the problem the fact that the National Audit Office and the Comptroller and Auditor General do not have statutory powers to scrutinise public spending on behalf of Parliament before the negotiations have been completed?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I am not sure that is wholly right. I think that the NAO has, as I recall, already been looking at High Speed 2—before the contract for it has been placed.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I want to be fair to the hon. Member for Brighton, Pavilion (Caroline Lucas), too, but I give way again to the hon. Member for Stoke-on-Trent North (Joan Walley).

Joan Walley Portrait Joan Walley
- Hansard - - - Excerpts

I am most grateful, but the point is that while the Comptroller and Auditor General might consider doing a review once a negotiation has been struck, at that stage it is too late to understand what has been included. We thus have a situation in which the Minister should perhaps comment on the role of Parliament in scrutinising this issue.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

It is for Ministers to take these decisions and for Ministers to be accountable to Parliament for them. It is for Parliament to scrutinise the decision taken. I am sure the hon. Lady is not suggesting that Parliament itself should take this decision; in the end, it is for the Executive to take their decisions about investment and infrastructure and for those decisions to be fully accountable to, and scrutinised by, Parliament.

Caroline Lucas Portrait Caroline Lucas
- Hansard - - - Excerpts

I reiterate the point that the hon. Lady has just made because the National Audit Office cannot look at the issue at the key point where we need the information. My wider point is this. The Minister keeps saying that nuclear offers value for money, is fair and affordable and so forth, but how can that possibly be the case when this Government envisage locking taxpayers into a 35-year contract to pay around twice the current market price for power, with the money then going to line the coffers of the French nuclear power station operators?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I wonder how the hon. Lady seems to have more information about the final details of the contract than I do, as I would suggest to her that I am a little closer to it than she is. When the details are published, she will find that not everything that has appeared in the newspapers is wholly accurate.

None Portrait Several hon. Members
- Hansard -

rose

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I must be fair to the House and make some progress because I am only halfway through this group of amendments. If I am pressed to give way one more time, I will of course do so.

Martin Horwood Portrait Martin Horwood
- Hansard - - - Excerpts

The Minister is very generous in giving way. I would like to ask him about one aspect, which was raised by Dr Paul Dorfman of the Warwick business school, and University College, London. They have speculated that the contract now being discussed with Electricité de France could be as long as for 40 years. In the spirit of parliamentary openness and scrutiny that the Minister has described, will he clarify whether that is an accurate guess?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

My hon. Friend tempts me, but I am afraid that, much as I would like to do so, I am not able to speculate about the terms currently being negotiated with Electricité de France.

Finally on this group, amendments 28 and 29 seek to stop nuclear and fossil fuel generation from participating in the capacity market, which is designed to ensure the security of future electricity supplies. To ensure the most efficient mix of capacity and to avoid favouring specific technologies, the market needs to be technology neutral and support a range of generation sources, such as from fossil fuels, existing hydroelectric and nuclear plant and the demand-side response. I can confirm, however, that we do not intend to allow plant receiving a contract for difference, including new nuclear plant receiving a CFD, to participate in the capacity market. We do, of course, expect existing nuclear plant to play an important role.

Let me deal with some of the wider issues in this group of amendments, including bill impacts, biomass, liquidity and so forth. Amendments 32 and 33 specifically relate to biomass. I would like to thank my hon. Friend the Member for North Devon (Sir Nick Harvey) for raising this issue. His amendment 32 seeks to define biomass in the Bill. Let me make it clear to him that I see no problem with the definition he has drafted, but I suggest that this would be better left to secondary legislation, which would give us the flexibility to amend the definition over time to reflect changes in technologies or, indeed, in the evidence.

In respect of amendment 33, I would not want to limit the amount of support that an individual biomass generator could receive under a CFD, or to impose a condition that biomass generation greater than 15 megawatts could receive support only if it utilised combined heat and power or carbon capture and storage. That would risk excluding efficient forms of biomass generation or forcing all new generation to include combined heat or power, or carbon capture and storage equipment, which it might not be possible to utilise effectively, and I think that it would have the unintended consequence of increasing costs for consumers.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I will give way, but I must soon make more progress.

Barry Gardiner Portrait Barry Gardiner
- Hansard - - - Excerpts

I am grateful to the Minister, who has been extremely generous in engaging in debate. Will he clarify one point? My understanding was that the definition that had been proposed was already incorporated in primary legislation, in an earlier Act of Parliament, and that the objection that he seems to have to it would therefore not apply.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I should be happy to check that. I suspect that the hon. Gentleman may be right, but I think that some of my objections would still apply. These things change over time, and I should prefer to have them in secondary legislation. However, if I have wrongly suggested that this is a novel approach, I will certainly get back to the hon. Gentleman.

On amendment 94, we need to be sure that independent generators have a fair chance of entering the market. I am sure that my hon. Friend the Member for Rochester and Strood (Mark Reckless), and other Members who have signed his amendment, would support that. Ofgem will shortly be releasing details of its proposed reforms to improve market liquidity, and I welcome that progress. However, it is crucial for the Government to be able to act if Ofgem is unable to deliver ambitious reforms allowing more independent generation in a timely fashion. That is why we need the backstop powers in clause 38.

Amendments 95 to 99, also tabled by the my hon. Friend the Member for Rochester and Strood, would remove the emissions performance standard from the Bill. I know that my hon. Friend is concerned about its impact on coal-fired generation, and suspect that he feels that the carbon price floor provides sufficient market signals to disincentivise such generation, but the Government's objective is to deliver a clear and unambiguous message to investors that coal-fired generation must significantly reduce its emissions to have a long-term role in our energy mix.

The commitment to decarbonisation is delivered through economic signals such as support for the carbon price, through planning policy—which states that new coal-fired power stations should be equipped with carbon capture and storage—and through the EPS, a coalition commitment that places a firm limit on the amount of carbon that can be emitted, regardless of the price of coal or carbon. That commitment to reducing emissions would be undermined by amendments 173 to 175, and I hope that my hon. Friend the Member for Daventry understands why I cannot accept them. In relation to amendment 174, I should point out that the formula in clause 42 was carefully designed to ensure that potential emissions from new coal plant would be at least halved.

Amendment 148, tabled by the hon. Member for Brent North, would apply the EPS to existing coal-fired plant that installed pollution abatement equipment to comply with the industrial emissions directive. I understand his fear that, if the relatively low price of coal continues, it may lead to levels of coal generation that will put our decarbonisation objectives at risk. However, our electricity market reform measures should mitigate the risk of carbon “lock-in” by driving investment in new low-carbon generation which will increasingly displace generation from fossil fuel.

Amendment 150 would reduce by 15 years the period in which the emissions limit for a new plant is “grandfathered”. Grandfathering until 2045 gives investors in new gas plant the regulatory certainty they need that the EPS will not stop them from making a return on their investment, thus assisting the provision of the new plants that we require in order to replace ageing capacity. Let me be clear: we need gas-fired generation in our future energy mix to balance increasing levels of intermittent and inflexible plant coming on to the system. Amendment 150 would deter such investment and thus reduce, not increase, the reliability of our electricity supplies.

17:30
Lastly on the EPS, Opposition Members have tabled amendment 179, which seeks to exempt CCS projects from the EPS during their commissioning period. The House will recall that the draft Bill contained a similar exemption, but was removed following recommendations from the Select Committee on Energy and Climate Change.
Our view is that the best way to manage risks to CCS projects from the EPS is through each project’s funding contract. That provides greater flexibility to manage project risks in one place and on a case-by-case basis. Also, the EPS already provides a degree of flexibility for plant during the commissioning period.
David Mowat Portrait David Mowat (Warrington South) (Con)
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The Minister has referred several times in the last few minutes to CCS technology. What is his core estimate of that being deployable on a commercial basis in the UK?

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I am not able at the moment to give my hon. Friend a precise timetable. Last year, we had a competition, as he will recall, for CCS. We selected the two principal bids and we are continuing to negotiate, but as soon as I have more news on that, I will ensure that he is one of the first to hear.

I must thank the hon. Member for Brent North for amendment 149. He will see that the small error has already been corrected in the version of the Bill that was introduced to the House on 9 May.

My hon. Friends the Members for Daventry and for Waveney (Peter Aldous) have tabled a number of amendments to clause 41 covering the certificate purchase scheme, which is designed to replace the renewables obligation for the last 10 years of its existence. First, let me reassure my hon. Friend the Member for Waveney that the provisions he seeks to remove through amendments 153, 154 and 157 to 159 simply replicate legislation that exists under the renewables obligation. Caps have been set before, such as for bioliquids; exemptions already exist for very small suppliers; and costs of administering the scheme are already recovered from the RO buy-out funds. The powers he wants to remove through amendment 159 would, for example, be needed to revoke any incorrectly issued certificates. These provisions therefore ensure the continued effective operation of the scheme.

On amendments 155 and 156, requiring the immediate recovery of shortfalls in the levy from suppliers would be unnecessarily prescriptive. That may not be necessary if, for instance, the shortfall is very small and can be made up in the next round of regular levy payments.

Amendments 160, 161, 167 and 168 would either remove our ability to change future support levels for the scheme, or add further validation requirements on the underpinning evidence for a change. Although the Government do not intend to make banding changes under the certificate purchase scheme, I would not want to remove our ability to do so. As we have seen, where there is compelling new evidence to change support levels, such as to protect consumers, it is important that the Government can act, and these provisions are important as they set out the controls on any such change.

On the underpinning evidence, we already take a rigorous approach to the assessment of costs and income in banding reviews under the renewables obligation. I can assure the House that we would do so again in any review of support levels under the certificate purchase scheme.

Let me reassure my hon. Friend the Member for Daventry that, in relation to amendment 169, consumer costs will always be an important consideration in banding reviews. New section 32V(4)(e) in clause 41 makes specific provision for that.

That brings me to the last but most important issue in this group: the costs and benefits of electricity market reform to consumers. A number of amendments have been tabled by my hon. Friends the Members for Daventry, for Waveney, for Gainsborough (Mr Leigh) and for Christchurch (Mr Chope), and we must thank the last two of them for providing such excellent chairmanship of the Bill Committee.

First and foremost, let me be clear that electricity market reform—EMR—is good for the consumer. Gas prices are rising and are projected to carry on rising. We need to move to a more diverse energy mix, which breaks our dependency on both gas and fossil fuel generation. The contract for difference provides protection for consumers by ensuring that generators pay back when the market price goes over the strike price, and the price certainty it brings will reduce the cost of financing new power stations, and thus reduce costs to the consumer. EMR also serves the public interest by reducing carbon emissions and ensuring everyone can benefit from reliable electricity supplies. These are important matters, which is why I would not want to accept amendment 162 and make them subordinate matters when the Secretary of State is exercising functions under part 2 of the Bill.

On amendment 151, I would not expect use of the liquidity powers in clause 38 to increase costs for consumers over the lifetime of any intervention. The purpose of these powers is to protect consumers by driving competition and reducing prices. A positive outcome for consumers must be proven before action is taken, and that would be shown through an impact assessment, which would be published when consulting on any proposed use of these powers. On amendment 152, contracts for difference can only be for the purpose of encouraging low-carbon generation, so that change is not necessary.

Both today and tomorrow, we need to work in the best interests of consumers and ensure that energy is cheaper as well as greener. I hope that all Members on both sides of the House can see that EMR represents the cheapest way of securing a diverse, low-carbon and reliable energy mix.

I want finally to turn to the amendments involving tariffs and to speak to the relatively minor Government amendments in that group before addressing the amendments tabled by the hon. Member for Angus. In line with the Prime Minister’s crucial commitment to ensure that people are on the cheapest tariff for their preferences, Government amendments 119 to 133 will align the powers in clause 121 more closely with Ofgem’s retail market review proposals. Government amendments 119, 120, 122 and 123 further clarify that those powers cannot be used for the purpose of imposing price controls by limiting the powers of the Secretary of State to make provisions under clause 121 only to the list set out in subsection (3).

In line with Ofgem’s retail market review proposals, Government amendments 125, 127, 128 and 131 will restrict the power to move customers from one tariff to another only to those customers on tariffs closed to new joiners. Government amendment 126 ensures that suppliers will have at least one core tariff slot that is not prescribed. Government amendment 130 clarifies that the power to prescribe that a supplier offers fixed or variable rate tariffs does not equate to setting the price or term for the tariff. Finally, Government amendments 121, 124, 129, 132 and 133 reword a number of the definitions to ensure that the powers can be exercised in the context of existing requirements placed on suppliers as a condition of their supply licence.

Amendments 21 and 22 were tabled by the hon. Member for Angus and address concerns he raised in Committee. Amendment 21 relates to the proposed Secretary of State power set out in clause 121 to move consumers off poor-value dead tariffs. His amendment would leave the only basis on which people can be moved off poor-value dead tariffs as an opt-out for consumers. Moving customers off such tariffs is a key part of meeting the Prime Minister’s commitment on energy bills. I would like to reassure hon. Members that in the event that Ofgem’s reforms are unduly delayed, we fully intend to make use of the opt-out approach rather than an opt-in. As a result of Ofgem’s review, however, it could become clear that there are certain circumstances in which some consumers could be actively disadvantaged by an opt-out approach, so we consider it prudent to retain the option to pursue an opt-in approach if necessary. Consumers could be disadvantaged should it, for example, transpire that as a result of market changes they would actually be better off staying on specific closed tariffs or that taking an opt-out option means they face contractual difficulties, such as a breach of contract.

Mike Weir Portrait Mr Weir
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I understand what the Minister is saying, but as it stands clause 121 says that there can be a switch to a different supplier or different terms, “unless the customer objects”. The customer can always come back and say, “No, I don’t want to do that”; even though the company is saying, “This is a better tariff for you”, the customer still has the ability to do that. The difficulty with including subsection 3(e)(ii) is that, as the regulatory impact assessment said, very many customers never get round to switching and do not react when they are given offers or told a better deal is available. Leaving that provision in would allow companies simply to offer customers these things but not push them forward.

Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

There may well be consumers who are not aware that they are being left on these tariffs, so we need to be careful about that, too. Ofgem could, however, deal with such matters, and I want to make it absolutely clear that the decision on whether to take an opt-out approach or an opt-in one will be made by the Secretary of State, or by Ofgem acting on his behalf, and not by energy suppliers.

Amendment 22 would add a new power for the Secretary of State in relation to customers with pre-payment meters, and there is a difficulty with it, too. The amendment is in two parts: paragraph (f)(i) specifies that these customers should receive the lowest tariff offered by the supplier, regardless of meter type; and sub-paragraph (ii) specifies that no more than 20% of each of their payments should go toward repaying existing debts.

Clearly, the aim of the amendment is to help out the most vulnerable customers, and I wholeheartedly support that. The Government are keen to see that consumers who use pre-payment meters are not disadvantaged, particularly the 20% of the fuel poor who currently pay for their gas or electricity in this way. Since 2010, there has been a major step forward in the treatment of consumers with pre-payment meters, with all the large energy suppliers choosing to equalise their pre-payment tariffs with standard credit prices.

The second part of the amendment relates to changing the way debt is repaid by customers on pre-payment meters. Customers in this situation currently repay a fixed amount at fixed intervals, for example, each week. The amount repaid is calculated for each consumer on the basis of their personal circumstances and ability to pay. The amendment proposes a limit of no more than 20% of the top-up amount, which in practice would turn most or all repayments from a fixed rate to a proportional one.

There are at least three reasons why we should not legislate in that way, the first of which is the cost to consumers of changing meters to accommodate such a provision. Secondly, let us consider the following: if a family paid a total of £10 a week, with 20% going towards repaying the debt, it would take the family seven years to clear the debt. This plan would also require the family to continue to pay £10 a week or £20 a week during the summer months, when most pre-payment meter customers use very little gas. If they reduce the total weekly payment in that period, the overall repayment period of the debt will, of course, increase again. Thirdly, there are existing obligations on suppliers under their licence to take into account a customer’s ability to repay when setting a repayment schedule. Suppliers are currently obliged to develop individualised repayment plans that take account of ability to pay, but existing pre-payment meters are not designed to allow for debt levels to be deducted on a proportional basis.

Mike Weir Portrait Mr Weir
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I understand what the Minister is saying and I understand his objection, but if he looks at the excellent report on the issue from Citizens Advice he will see that it gives an example of someone who had £7 of every £10 put into the meter taken towards debt. We are trying to introduce a limit—although perhaps 20% is the wrong figure—so that that sort of thing does not happen.

17:45
Michael Fallon Portrait Michael Fallon
- Hansard - - - Excerpts

I will certainly look at that. I understand the purpose behind the hon. Gentleman’s amendment and I share it, but I hope that he will recognise that a percentage cap might not be the best answer. There might be other opportunities to return to the issue as the Bill progresses, and I hope that he understands the risk that setting a percentage limit could encourage suppliers to use that limit as a default position.

I do not think a legislative solution is appropriate, but we are investigating with suppliers what non-legislative action can be taken to improve the situation with prepayment meters. We have also recently announced funding for the big energy saving network, which is a co-ordinated network of voluntary organisations and community groups that will develop and deliver support for vulnerable consumers.

I am grateful to the hon. Gentleman for his continued interest in getting a better deal for consumers. I hope that he has found my explanation on the amendments reassuring and will, on that basis, agree for the moment to withdraw them. I apologise to you, Mr Deputy Speaker, and to the House for taking an inordinate amount of time to respond to the amendments, but the group contains a range of amendments from a large number of hon. Members and I wanted to do justice to each one of them.

Tom Greatrex Portrait Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
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I welcome the Minister to his first parliamentary interaction with the Bill. His predecessor, the right hon. Member for South Holland and The Deepings (Mr Hayes), took the Bill through Committee and we know from our experience today that the Minister can speak—although perhaps in slightly less florid language—for at least as long as his predecessor could on such matters.

A range of issues are covered by this group of amendments, and I am conscious that many Members want to speak about their amendments. I shall do my best to be as brief as possible, but I want to mention a few points both in response to the Minister’s speech and in support of some of the amendments tabled by me and my right hon. and hon. Friends.

I welcome Government amendment 66, which will put in place a five-year review of the emissions performance standard. That is very important. I am sure that my hon. Friend the Member for Brent North (Barry Gardiner) will try to catch your eye, Mr Deputy Speaker, to speak in support of his amendment 150. I hope that the Minister will take that seriously in the context of the length of the grandfathering period—gas investors suggest that their investment is usually over 30 years rather than 45—and give it a degree of consideration.

In relation to the EPS, let me say a few words about amendment 179 on carbon capture and storage. The provisions in chapter 8 on the EPS will have a significant impact on the future development of CCS. The Opposition have consistently and clearly set out our support for developing that technology, which we believe has a vital role to play in our future energy mix alongside other low-carbon technologies. We do not need to go over the same ground again, but I probably first raised with the Minister’s predecessor but one some of the issues about the £1 billion that was supposedly available for capital funding. We know what the Cabinet Office document said was available for this comprehensive spending review period, although I am conscious that the Minister’s Department—or one of his Departments, the Department of Energy and Climate Change—seems to have secured its negotiations with the Treasury on the CSR. I wonder whether the remainder of that £1 billion is part of the savings that have been offered up.

If we do not get the technology developed for CCS, we will face a significant gap in our ability properly to deal with the peaks in our generation requirements. That is why we tabled amendment 179. As the hon. Member for Warrington South (David Mowat) perhaps suggested in his intervention about carbon capture and storage, we are conscious that there have been bumps in the road in moving that technology towards commercial development; I think it is fair to put it in those terms. We are concerned, as are a number of industry bodies, that an unintended consequence of the Bill is that it makes that technology less likely to be developed.

The Minister was right to say that the exemption was in the draft Bill, but was taken out as a result of concerns, expressed by the Select Committee on Energy and Climate Change and others, that it could be a loophole allowing unabated coal generation. The way in which the amendment is framed—it relates to a specific commissioning period—helps to address that sensibly, and to ensure that CCS is given the best chance of developing and being part of the future-generation mix, as many of us wish it to be. I therefore intend to push amendment 179 to a Division.

There are a number of amendments relating to contracts for difference. I am sure that the hon. Member for Brighton, Pavilion (Caroline Lucas) and others will seek to speak to some of them. I wanted to say a word on new schedule 1 and new clause 5, which stand in the name of the hon. Member for Cheltenham (Martin Horwood) and a number of other Members from across the House, on establishing a panel of independent experts to offer advice and guidance to the Government before they enter into a CFD. Although the Minister was not on the Committee, I am sure that he is familiar with the tenor of our debates on the subject; we tabled a number of similar amendments in Committee, and argued strongly for an independent expert panel to offer transparency, expertise and, crucially, protection for consumers. That differs from the Government’s plan to set up a non-statutory panel, and would deal with the concerns that the non-statutory proposals do not go far enough.

I am sure that the Minister will be aware that in Committee we argued that for many people this is still a controversial issue. The best way to ensure confidence in the negotiations that are under way—I think I heard the Minister refer to “when”, rather than “if”, the contract is secured; I am not sure whether that was a Freudian slip—is to ensure transparency around the process. Having that panel is a sensible way of providing scrutiny and transparency. If those Members who tabled the amendment seek to push it to a Division, they will have the support of Labour Members.

On a related issue, amendments 8 and 9, which are in my name and the name of my right hon. Friend the Member for Don Valley (Caroline Flint) and my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), push the Government to be more transparent about agreements with generators through investment contracts. It would be churlish of me not to recognise that the Government have moved on the issue since Committee, and have listened to what the Opposition said in Committee about what information could be restricted. I listened carefully to what the Minister said about the information that is not made available being described. However, I am unconvinced that that goes as far as it could or should. I take the point that it may be appropriate for certain information not to be put in the public domain, particularly when we are dealing with nuclear energy, but that should be the very limited exception, rather than the rule. That is why amendments 8 and 9 make it clear that the exception will be for “trade secrets”, rather than “confidential information”, as the Government could decide what was, or was not, confidential. That is important for transparency and confidence.

The Minister will be aware that the representative of EDF Energy who gave evidence at the start of Committee proceedings was very clear about the importance of transparency. It would be slightly odd if the Government sought to restrict that transparency. We will never have the confidence that we should have in nuclear as part of our generation mix if people are able to gainsay aspects of agreements between the Government and companies. The best way of ensuring that that does not happen is to make all the information available; people can then make their judgments. I am sure that that would not stop some Members from being against nuclear power, but it would give a number of others—and, more importantly, people more widely—confidence that nuclear should continue to be part of our generation mix.

David Mowat Portrait David Mowat
- Hansard - - - Excerpts

I have listened carefully to what the hon. Gentleman said about the need for an expert panel, and all that that implies. Is it the position of the Opposition Front Benchers that the Government should not be able to enter into a binding contract with EDF, after negotiating with it in good faith, without that coming back to Parliament?

Tom Greatrex Portrait Tom Greatrex
- Hansard - - - Excerpts

I understand, from what the Minister said, and what his predecessor said in Committee, that the agreed contract will come before Parliament, and I would expect that to happen, but an expert panel that included consumer representatives could help to bring a degree of rigour and transparency that will be important in ensuring that there is confidence if—or when, to use the Minister’s term—an agreement is reached.

David Mowat Portrait David Mowat
- Hansard - - - Excerpts

Does the hon. Gentleman envisage the Government coming to an agreement with EDF that is subject to ratification by some panel? Would he expect EDF to negotiate on that basis?

Tom Greatrex Portrait Tom Greatrex
- Hansard - - - Excerpts

I expect that EDF would want the Government to be sure that the agreement that they were entering into was safe and sound, and conformed to the best possible degree of scrutiny. An expert panel could bring some of that scrutiny, rigour and analysis. That is, in the end, in the interests of not just the Government and EDF or any other company, but the whole energy sector. That is an important point that we pushed in Committee and will continue to push today.

Martin Horwood Portrait Martin Horwood
- Hansard - - - Excerpts

I thank the hon. Gentleman for his support for my new schedule 1. In answer to the point just made, the schedule does not provide for a veto by Parliament on the contract for difference, but it does expect the Secretary of State to lay before Parliament written reasons why he disagreed with the advice of the expert panel, in the event of such a disagreement. It therefore provides greater assurance of scrutiny and transparency.

Tom Greatrex Portrait Tom Greatrex
- Hansard - - - Excerpts

I am grateful for that clarification. I hope that helps to address the point that the hon. Member for Warrington South sought to make; it also underlines the importance of the measure. It is possible and probable that the Government would come to a conclusion that members of the expert panel did not share, but as long as that was explained, I would not necessarily think that it was a problem. It may well be that the expert panel would come to a conclusion that the hon. Gentleman and others disagreed with and I agreed with, or vice versa. It is important that there is a degree of transparency and rigour in the process. That is why we will support new clause 5 and new schedule 1, if the hon. Member for Cheltenham divides the House on them.

The Minister touched on the capacity market and the amendments in the name of my hon. Friend the Member for Southampton, Test (Dr Whitehead) relating to the strategic reserve. The Minister seemed to use the same defence that we heard in Committee—that introducing a power to have a strategic reserve would send confusing signals. Indeed, his predecessor said:

“The new clause would allow us to have both a strategic reserve and a capacity mechanism. That might be the worst possible option, because it would send a confused signal to investors about the Government’s intentions.”––[Official Report, Energy Public Bill Committee, 24 January 2013; c. 329.]

The Government argued in Committee that it would be wrong to give the Secretary of State the power to introduce a new system or mechanism in future, as it would cause uncertainty. That is very different from the stance taken by the Government in the amendments that we will discuss tomorrow on 2030 decarbonisation, which give the Secretary of State a power to set a target if he so chooses, so the argument does not stand up to scrutiny. There are important points relating to a strategic reserve that I am sure my hon. Friend the Member for Southampton, Test will seek to make. I do not think that having that power in the Bill will necessarily have the impact that the Minister suggests.

A number of amendments relating to biomass have been tabled. It was the Minister’s predecessor who took through Parliament the statutory instrument dealing with the renewables obligation earlier this year. He made a number of commitments in relation to biomass, as I gently remind this Minister, in case they were missed in the comprehensive handover that no doubt took place earlier this year. His predecessor undertook to seek from those using biomass to generate power details about the sourcing of the biomass, and to make that information more widely available.

18:00
At that stage, I believe, the correspondence had been sent out. I am not sure whether it has come back and whether it can be shared, but that would do this debate a service, as it has been characterised by conflicting evidence. It is difficult to make a coherent and comprehensive judgment on biomass and on some of the concerns expressed in the amendments before us without being able to reconcile the discrepancies in the evidence.
The Minister’s predecessor also suggested that he would form an expert group that he said would meet before the end of the month. That month was March. Again, I am not sure whether the expert group has yet met. I would be grateful if the Minister could provide more information about that. The issue has received attention in the recent past because of conflicting information and evidence, and if we want to be sure about the place of sustainable biomass within our generation mix, we need to ensure that the evidence on which those judgments are based is comprehensive and clear. The Government could usefully undertake that task.
The Minister’s predecessor also made a commitment to look at the difference between imported and indigenous biomass supply. Again, I seek further information about that from the Minister.
Dan Byles Portrait Dan Byles (North Warwickshire) (Con)
- Hansard - - - Excerpts

The hon. Gentleman is probably aware that the Energy and Climate Change Committee recently had a one-off session on biomass. We concluded that this is almost certainly an issue that the Select Committee will revisit in more detail because, as he said, there is differing evidence that needs to be thoroughly teased out. Sadly, however, the results will come too late to inform this debate.

Tom Greatrex Portrait Tom Greatrex
- Hansard - - - Excerpts

I thank the hon. Gentleman for his intervention. I am pleased to hear that the Select Committee will be examining the matter further. I should have said that the Committee did the Bill a great service through its pre-legislative scrutiny. We will return to some of the issues on which he, as a member of the Committee, may have supported the conclusions but may not vote in line with them tomorrow. The Committee has done good work on the Bill overall and I am pleased to hear that it will do further work. It is important that we get greater clarity so that the debate is properly informed.

Finally, I shall touch on the clauses relating to tariffs, which have been grouped with the wider electricity market reform amendments. I need not remind the House that it was seven and a half months ago that the Prime Minister stood at the Dispatch Box and announced that the Government would force energy companies by law to put everybody on the cheapest tariff. For the avoidance of doubt, his exact words were:

“I can announce…that we will be legislating so that energy companies have to give the lowest tariff to their customers”—[Official Report, 17 October 2012; Vol. 551, c. 316.]

The Bill in its 200-odd pages contains no provision to put every customer automatically on the cheapest tariff. Indeed, what the Minister said in his remarks and what his ministerial colleague said on the radio at the weekend and in Committee was slightly different—that tariffs would be in line with customers’ preferences.

The intriguing source of Tory energy policy who has been busy entering the world of Twitter today talking about the impact of the measures in the Bill on consumer bills is using a figure which Ofgem suggested would be the case if every person were automatically put on the lowest tariff. If that means that the Minister is suggesting that that is the case, his amendments are deficient because they do not do what the Prime Minister said and what the Prime Minister and others have repeated in the Chamber 12 times since last October. I noticed that the Minister chose his words carefully and said “in line with”. If he is not doing as the Prime Minister said, I anticipate that the Prime Minister may seek to correct the record later in the week when we have the opportunity to ask him about that.

The Bill addresses some aspects of the energy market but there is a huge gap in it, as it does not deal properly with the retail market. We flagged up that gap in Committee and we have been clear and consistent in our stance. We want to see the Bill as the mechanism for ensuring that we get the right level of investment in our energy infrastructure. There are other issues that will be raised in another place, but the heart of the problem is how our energy is bought and sold. That is not addressed properly in the Bill. This sticking plaster attempt to implement what the Prime Minister said in October—he was particularly flustered that afternoon, as I remember it—is patently not achieved by the measures to which the Minister spoke today.

There are real reforms that could and should happen in relation to the retail market. At a time when the Bill seeks to change other aspects of the energy market, it seems odd that we are not dealing properly with the retail market, which would provide greater clarity and transparency going forward.

During the course of the Bill’s passage, we have not opposed for the sake of opposition. We will continue in that vein, as I am sure will others in another place. We have sought to be constructive in the amendments that we tabled to try to improve the framework offered by the Bill. There is a considerable amount of information that is not available to us to scrutinise. I heard the Minister say that information would be published at a later date in secondary legislation, but we are conducting our scrutiny in Committee and on Report without information that would have been appropriate.

The Minister’s predecessor undertook to publish some of that secondary legislation in draft, but that never quite happened. No doubt Members in another place will seek some of that information. Although the Bill sets out the framework for contracts for difference, some of the crucial detail about the operation and the capacity market is not available for us to scrutinise. To be able to make a sound evidence-based and comprehensive judgment of the content of the Bill, we need a degree of detail that is still missing.

Although I accept what the Minister said about the affirmative resolution procedure being used, he is obviously aware that without some of that information it is difficult to test some aspects of the Bill. I am sure other Members who speak in the next 53 minutes will make the same point. We are reliant on the Minister’s words. I have no doubt that he is sincere in his comments about the Bill to the House, but he is the third person to occupy his role in the past eight months, and those in the role have not always said precisely the same thing. The degree of confidence, clarity and certainty needed to transform the Government’s agenda and intentions for the Bill into reality requires a great deal more information to enable us to make that sound judgment. I hope the Minister will provide that information in another place to enable the Bill to address our shared concerns and to ensure that we get security of supply and a reduction in carbon emissions, and the most affordable way of doing those things.

None Portrait Several hon. Members
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rose

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
- Hansard - - - Excerpts

Order. I remind the House that the debate must end at 7 o’clock. Quite a few Members wish to participate in the debate, so I ask each Member to make their contribution briefly so that we can facilitate as many contributions as possible.

Chris Heaton-Harris Portrait Chris Heaton-Harris (Daventry) (Con)
- Hansard - - - Excerpts

I will certainly obey your request, Madam Deputy Speaker, and skate through what I have to say. I should declare an interest at the very beginning, because I run a campaign outside the House. It is a not-for-profit company and I do not take a salary or any expenses, but I declare an interest, in the spirit of the time and in the hope that others pushing amendments may do exactly the same later.

I was pleased to hear the Minister address many of the concerns that I have raised in my amendments. I did not bang on about the thing that most would have expected me to bang on about in my amendments. I believe that the Minister agreed with one of them, and just wanted to check; I am slightly concerned that that might be the case. Alas, it was not the amendment that I really wanted him to agree with—amendment 169, which concerns the costs to consumers of the outcomes of the Bill.

The motivation of my amendments was simple: to include a reference to the consumer interest and force the Secretary of State and the Government to have regard to that, and to require much greater transparency about the contracts created and the costs imposed by the Energy Bill. We all know that the Bill came out of the Government’s electricity market reform process, which began in 2010 and had three elements. The first is the carbon price floor, which has been introduced by the Finance Act 2013 and sets out a path for a minimum carbon price in the UK from the fiscal year 2013-14 from £16 per tonne to £30 by 2020.

There is a new renewable and nuclear subsidy mechanism. The Government will replace the existing regime with a contract for difference mechanism. This new mechanism will very largely transfer the price risk from the developer to the consumer by guaranteeing an achieved power sale price for each power station covered. Unlike the renewables obligation, the new contract for difference mechanism will also provide subsidy support to the developer of new nuclear, about which I know other Members have concerns.

Another strand is that the Government will create a capacity market that will seek to ensure the retention of sufficient existing generation capacity and the building of new capacity. The design of the capacity market is still ongoing, so the exact nature of the market in the future is unclear, and we do not know when it is planned to hold the first capacity auction. I believe that it will potentially be in 2014 for delivery in 2018. Then there are the bits about emission performance standards to talk about.

Realistically, though, there is an overall problem with the Bill, which was highlighted by the Opposition’s general agreement. It is a kind of renationalisation of the power sector—very, very nearly. To deliver their policy goals the Government require utility companies and third-party investors to build assets that are fundamentally not economic, often in technologies that are far from robust or mature. The Government have taken upon themselves the responsibility of deciding which generation technologies are bad, such as coal and unabated gas, and which are good, such as hydro or nuclear or wind perhaps. They have also decided the pace of change, that coal should largely be removed from the power matrix by 2024, and that unabated gas should operate only at peak from 2027. They have decided which future technologies should or should not be developed and are pushing forward with a leap of faith on as yet completely unproven technologies, as we have heard before, including carbon capture and storage.

The Bill will take Government intervention up yet another level. Under the powers granted by the Bill, the Department of Energy and Climate Change will allocate contracts for difference to developers in those technologies and at those locations that DECC favours. It will set the strike price and so determine the revenue of the asset, what the consumer pays and the returns on investment. It is very much a centralising measure. I am not convinced that it gives the opportunities for new sources that bubble up, as we might perhaps say in this case.

Graham Stringer Portrait Graham Stringer (Blackley and Broughton) (Lab)
- Hansard - - - Excerpts

We might have an ideological difference if the Bill was actually nationalising the energy industry, but it is not; it is doing something far worse. It is guaranteeing profits for parts of the energy industry that have been chosen from a limited intellectual base. Does the hon. Gentleman agree that by picking so-called winners, which may be losers, the Bill is squeezing out money that could have been spent on research for better newer technologies?

18:15
Chris Heaton-Harris Portrait Chris Heaton-Harris
- Hansard - - - Excerpts

I do agree. Let us look at what has just happened in America with the advent of shale gas and the development of non-conventional gas and oil exploration in the US. That has essentially destroyed the notion that the world has already hit peak oil or peak gas. If we compare projected gas prices—the Minister mentioned this—with what is happening in markets where unconventional gas is being developed quickly, we see that new developments could come forward if allowed in the future. I fear that we are picking winners on that basis. I know that all Members are concerned about greenhouse emissions and the like. The development of shale gas in the United States has reduced America’s greenhouse emissions. Therefore, there is an interesting benefit from doing these things.

To deliver the Government’s plans in the Bill will be hugely challenging, but they are even more challenging because there is a whole host of factors. If renewable technologies were easy to deploy at the utility scale, the Bill might be helpful, but they are not. If renewable technologies were economic to deploy, the Bill would be very helpful, but as of yet they are not. If nuclear power stations could be built quickly and economically, the Bill would help, but in the UK we struggle with building quickly and economically on that sort of scale. It may have been done overseas, such as in Finland, but, realistically, we cannot do that. If the public were willing to pay any price in their bills to fund this policy—this is my major concern, hence my amendment 169—the Bill might be helpful, but they are not willing to pay huge extra sums. These provisions are placing a huge extra regular contribution on bills, up to an estimated £600 each year by 2020 at the very least.

Brian Binley Portrait Mr Brian Binley (Northampton South) (Con)
- Hansard - - - Excerpts

Was my hon. Friend also surprised at the lack of reference to the impact on business in this country over the next 20 years? The Chancellor wants growth, yet the Bill will impede the ability to get that growth. Will my hon. Friend say a word about that?

Chris Heaton-Harris Portrait Chris Heaton-Harris
- Hansard - - - Excerpts

I dare not say a word about small businesses in the presence of my hon. Friend, the champion of small business in the House. When I used to run my own small business, the power bill was one of the biggest items that could not be avoided, and the Bill will increase that.

The Bill does not help with the core concerns of many in the House about fuel poverty. Reliable estimates of fuel poverty are difficult to come by because the Department has been hedging its bets on publishing any detail. The latest estimates are for 2010 when 3.5 million households in England and 4.75 million across the UK were thought to be in fuel poverty, based on the 2012 poverty statistics released by DECC. The latest dataset used by the House of Commons Library to estimate the impact of changes to prices is for 2009. This suggests that the increased cost of electricity due to the renewables obligation alone may have pushed 100,000 households into fuel poverty. We should be very aware what we are doing when we increase the cost to consumers of their energy. It powers everything from broadband to their heating, and many other things essential to the country’s development, and we should be very aware about how it works.

David Mowat Portrait David Mowat
- Hansard - - - Excerpts

I accept the thrust of what my hon. Friend says on matters such as fuel poverty, but I rise to defend the Bill a little. Does he accept that we have to cut carbon? If so, does he accept that the way set out in the Bill is a path forward towards that?

Chris Heaton-Harris Portrait Chris Heaton-Harris
- Hansard - - - Excerpts

Yes, I accept that we need to be aware of our carbon emissions, and I actually think that being responsible for the environment and trying to deliver the best for it is a Conservative principle. The Bill has some good elements to it, but the centralisation that I mentioned and the increased costs to consumers, businesses and the like are outcomes that we should think more about. I will happily leave my contribution there so that other Members can speak.

Alan Whitehead Portrait Dr Alan Whitehead (Southampton, Test) (Lab)
- Hansard - - - Excerpts

I rise to speak to my amendments 48 to 50, which, as we have heard from Minister, are concerned with the development of a capacity market intended to ensure that we have the range of capacity that we will require over the coming years and decades. Not to put too fine a point on it, it is intended to ensure that the lights stay on and that there is a decent margin between what people demand and what we supply.

A capacity market is a choice. It is not the only option available to secure the necessary capacity for the future. It seems to me that that choice needs to be based not just on whether the right capacity margin can be maintained. We should also ask at what cost it can be done, with what reliability and at what risk. I suggest that the choice of mechanism for maintaining capacity that is being made in the Bill fails on all those counts.

I have not invented that conclusion; the Department itself produced an impact assessment on the two choices that it had considered for securing capacity—a strategic reserve arrangement and a capacity market arrangement. Among other things, that choice is about ensuring that the amount of money that can be obtained through the sale of power into the market at times when capacity is tight stays within reasonable bounds. The impact assessment suggested that, in future, those reasonable bounds might get larger and larger. At the moment there is a maximum of about £1,000 per megawatt-hour, but it could go up as high as £10,000, in which case the consumer would be paying an enormous amount for their electricity under certain circumstances. The whole idea of keeping the costs of the capacity market under control would be completely overthrown.

The question then arises: which method best suits the need both to keep the right capacity and to keep it at a reasonable price and with reasonable reliability? Hon. Members will not be surprised that costs of the capacity market option over the period 2010 to 2030 have been assessed at two and a half times those of the strategic reserve option, and the effect on bills at 11 times higher. At first sight, that is not a good sign of the capacity market’s ability to provide a good deal for consumers.

According to the impact assessment, the reason why the Department eventually chose the capacity market idea was the entirely theoretical one that a reliability market

“limits the scope for generators to receive scarcity rents.”

However, the fact is that by introducing a capacity market and auction system in the way that we are, we will effectively provide guaranteed free money for a long period for people who are building conventional generation that provides capacity.

It may come as a surprise to some hon. Members that by introducing an auction market for capacity, we are ensuring that there is a subsidy across all aspects of energy generation, not just some. There is potential for gaming of that arrangement. The Government will have to decide how tight the capacity is after considering what the market will look like four years ahead, and then they will have to create an auction. That choice will be necessary for the auction to take place at all, and it will determine how much money there is in the auction. If the market is gamed so that the capacity looks much tighter than it is, the amount of money will be larger and the price will be even higher.

It is no coincidence—I think that is the best way I can phrase it—that we already see the capacity market tightening. A large number of gas plants are going into either deep or shallow mothballing in advance of 2014, and the Government’s decision about what capacity will look like will be informed by that mothballing. Were I an energy company operative, I would be rather pleased about that, because I would imagine that I would do rather well out of a capacity market in the future.

Mark Reckless Portrait Mark Reckless (Rochester and Strood) (Con)
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Surely an even more important reason for the tightening of capacity to which the hon. Gentleman refers is the shutting down of several large coal-fired power stations under the relevant EU directive.

Alan Whitehead Portrait Dr Whitehead
- Hansard - - - Excerpts

Yes, indeed. A number of plants are to close down over the next few years, and given how the energy market works, which I have described, one would expect the ability to obtain rents at the margins of the market to encourage the development of new plant. The statement made by the development of a capacity market auction is that that mechanism will not exist, so a permanent underwriting of new plant development needs to be auctioned to allow that to take place.

The strategic reserve option, which works quite well in a number of parts of the world, is that certain plant—perhaps mothballed plant—is taken out of the market and then placed back into it at times of stress on the market. As a result of that action, rents are reduced. Indeed, the fact that there is a strategic reserve that can be put back into the market at stressful points damps down the possibility of rents being obtained. That option comes at a much lower cost and

“should be relatively simple to set up and administer as it is a relatively small intervention in the market”—

not my words but those of the impact assessment. It

“could avoid gaming in the capacity market if there is a plentiful supply of mothballed plant”,

as indeed there is right now. Overall, it

“has the potential to be the smallest intervention in the market and accordingly has least overall policy design and implementation risk associated with it.”

The capacity market, on the other hand,

“has a higher overall level of design risk given the relative complexity of the model…a Capacity Market, if not well designed, could create opportunities for gaming the new capacity auctions; and…is the more costly mechanism to set up and run and it puts a greater administrative burden on businesses who will participate in the capacity market.”

Again, those are not my words but those of the departmental impact assessment of the choice between a strategic reserve and a capacity market.

Yet a capacity market was chosen to underpin the entire energy market reform and the Bill. I imagine—in fact, I am pretty certain—that that is what we will eventually go for. However, I modestly suggest that it might be a good idea to put in the Bill the idea that if that does not work very well, as I also modestly suggest it probably will not, the Minister has the option of moving towards a strategic reserve arrangement. That would keep the costs down and damp down the gaming of the capacity market auctions that may well take place over the next few years. That would be helpful for our ability to run a coherent energy policy over the next few years, and I tabled my amendments in the spirit of that helpfulness and to ensure that, whichever way we decide to go, we do not shut the door on something that is cheap for consumers in the long term, better for the energy market overall, and will keep our energy supplies in good shape for the future.

18:30
Martin Horwood Portrait Martin Horwood
- Hansard - - - Excerpts

First, let me make it clear, particularly to Ministers, that I support the Bill. The attempt to lock investment in low carbon technologies into British energy markets is vital and demands an interventionist approach. In a sense, I agreed with a lot of what the hon. Member for Daventry (Chris Heaton-Harris) said in describing what are in effect subsidies and quite an interventionist approach in the Bill—something I think is justified for renewables and when bringing forward clean, greener technologies to tackle the urgent question of climate change. I also welcome the important Government amendments that try to ensure that consumers enjoy the lowest possible tariffs.

As is obvious from the debate, there is a growing chorus of scepticism about aspects of the Bill, and particularly subsidies that may be unearned. New clause 5 and new schedule 1 seek to address that issue, which is why I will press new clause 5 to a vote. I have managed to gather support for the new clause, and I acknowledge that of Which?, the Royal Society for the Protection of Birds, the Association for the Conservation of Energy, WWF, Friends of the Earth and Greenpeace, as well as my right hon. Friend the Member for Hazel Grove (Andrew Stunell) and the hon. Members for Stoke-on-Trent North (Joan Walley), for Brighton, Pavilion (Caroline Lucas), for Hove (Mike Weatherley), for Angus (Mr Weir) and for Rutherglen and Hamilton West (Tom Greatrex). I am grateful for support across the House, and for the implied support from Members close to the hon. Member for Daventry who are concerned about subsidies in general but include in that their particular concerns about nuclear power.

My worry is principally about nuclear because the subsidies in the Bill contravene the spirit of the coalition agreement. That agreement distinguished between renewables, where it implicitly accepted there was a case for subsidy, and the nuclear industry, for which it specifically ruled out a subsidy. Only a few years ago, the Labour Government line was also that there should be no subsidy for the new generation of nuclear power.

Amendment 23 and others tabled by the hon. Member for Brighton, Pavilion are specifically anti-nuclear, and there is a case to be made for distinguishing between nuclear and renewables, principally because renewables are emerging technologies. In many cases they are highly competitive, and over time they are generally getting cheaper. Nuclear is an old industry—56 years old—and has generally been getting more and more expensive. The latest new reactors at Olkiluoto—I hope hon. Members will excuse my Finnish pronunciation—and Flamanville in France are both many years behind schedule, and from the original estimates of between €3 billion and €4 billion are now heading towards estimates of more than €8 billion each—more than 100% over budget. I gather that the Finns and the French are now in litigation with each other over some of those costs and time overruns.

Mark Reckless Portrait Mark Reckless
- Hansard - - - Excerpts

The hon. Gentleman refers to nuclear energy becoming more expensive, but I am not sure whether, like the hon. Member for Rutherglen and Hamilton West (Tom Greatrex), he caught the Minister’s earlier reference to when the new nuclear contract is signed with EDF. Does he think that reference to when, rather than if, is likely to increase or decrease the price we pay for that electricity?

Martin Horwood Portrait Martin Horwood
- Hansard - - - Excerpts

Perhaps courses in negotiating skills might be recommended for members of the Department of Energy and Climate Change on that front. To be fair, Ministers have made it clear that they do not intend to sign the contract with EDF at any price, but the difficulty is that we in Parliament simply do not know that there has not been adequate scrutiny.

David Mowat Portrait David Mowat
- Hansard - - - Excerpts

Will the hon. Gentleman give way?

Martin Horwood Portrait Martin Horwood
- Hansard - - - Excerpts

I think Madam Deputy Speaker will catch me with her rather steely eye if I give way too many times, so I will move on.

In the UK, the nuclear industry is not very competitive and is overwhelmingly dominated by one nationalised industry supplier—Electricité de France. There are risks that we are in effect organising a massive transfer of funds from British bill payers, if not taxpayers, to a French nationalised industry of dubious profitability. The scale of that possible subsidy has been underlined by former Friends of the Earth directors, including Tom Burke who said:

“At a strike price of £100/MW and a 30-year contract life this would require a subsidy of £1 billion/year above today’s wholesale price for electricity. This would lead to a transfer of £30 billion to EDF from Britain’s householders and businesses. Should the whole of the 16GW of new nuclear anticipated by the Energy Minister be financed on similar terms it would cost householders and businesses £150 billion by 2050.”

That is an enormous commitment that we must scrutinise and ensure that value for money is inserted into the process.

David Mowat Portrait David Mowat
- Hansard - - - Excerpts

Specifically on that point, the hon. Gentleman says that a strike price of 10 is unacceptable. Would he extend that to offshore wind?

Martin Horwood Portrait Martin Horwood
- Hansard - - - Excerpts

I did not say 10, I said 100, and figures as high as 165 have been discussed and contract times as long as 40 years speculated about. The Minister has been unable to reassure us about that in the debate. It is true that high prices are talked about for offshore wind, but that is an emerging and quite competitive technology that deserves support. It is not a 56-year-old technology that has already proved to have a massive record of cost and time overruns. I am happy with supporting offshore wind but unhappy with supporting nuclear.

The effect of new clause 5 and a panel of expert scrutiny would be to ensure that all technologies negotiating contracts for difference were subject to scrutiny, including offshore wind and other renewables. New clause 5 and new schedule 1 are not specifically anti-nuclear, but they are anti-unearned subsidies. The Energy and Climate Change Committee called for that in its report, and Which? addressed it in the drafting of these provisions—I am grateful for that. Such scrutiny and transparency are particularly relevant when, as the Committee pointed out, a mature technology dominated by a single large supplier means there is little competitive pressure and the strike price naturally tends to rise in such a situation—even more so, as the hon. Member for Rochester and Strood (Mark Reckless) pointed out, if one side has almost conceded that it needs to sign the contract at the end of the process.

Alternatives have been discussed, such as scrutiny by the National Audit Office and others, and in a parliamentary debate some months ago it was suggested that the Public Accounts Committee play a role in this kind of scrutiny. The problem with all these suggestions, however, is that they investigate after the event. As I said in my intervention on the Minister, if we are talking about a contract of 20 or 30 years, it is practically useless to investigate whether it is good value after the event because we are locked into it for a whole generation. Right now, negotiations are under way with EDF for this contract.

New clause 5 and new schedule 1 would establish an independent expert panel, which would differ from the expert panel that the Government have already established. As the affordable energy campaign by Which? pointed out:

“A panel of technical experts has been established by the Government to scrutinise the evidence National Grid presents for the setting of CfD strike prices. However this panel does not have a sufficiently broad role. For example, it does not have value for money as part of its remit. The panel must have a clearly defined oversight role set out in the Bill”.

If the Government support the concept of an expert panel, why on earth can they not put it in the Bill, as defined in new clause 5 and new schedule 1? I would have thought they would have absolutely nothing to fear from that.

New clause 5 and new schedule 1 are in the same spirit as amendment 162, although I do not buy everything the hon. Member for Daventry said in support of his proposals. However, energy bills are a major cause for concern among consumers—all hon. Members know that. Whether we are proposing renewables or nuclear, a strong case needs to be made, and transparency and accountability need to be at the forefront. Consumers need a good deal as well as a green deal. The Bill does not guarantee to deliver that, which is why I shall press new clause 5 to a Division.

Caroline Lucas Portrait Caroline Lucas
- Hansard - - - Excerpts

I rise to speak to my proposals and give notice that I will press amendment 24 to a Division.

I am pleased to follow the hon. Member for Cheltenham (Martin Horwood), who made a compelling case, demonstrating that, even if the word “subsidy” does not appear in the document, we are talking about a public subsidy for nuclear, which goes against the coalition agreement. The bulk of my proposals on new nuclear simply seek to return us to the coalition agreement, which said that new nuclear should receive no public subsidy. Many people are hugely disappointed that Ministers are ditching their commitment so shamelessly.

A Government who genuinely want to tackle high electricity bills would not sign taxpayers and bill payers up to a 35 or 40-year contract—we do not know how long the contract will be for, but that is the ballpark figure out there. The contract would also involve paying around twice the current market price for power. As has been said, that money will line the coffers of French nuclear corporations.

If we were serious about tackling fuel poverty, we would not be going down that route, yet that is precisely what the complex mechanisms for providing financial support for nuclear in the Bill do. We should add the liability cap, underwriting, and indirect subsidies such as for decommissioning and for the unsolved waste problem. Essentially, we are writing a blank cheque for an expensive, inflexible old technology that we cannot afford and simply do not need.

A Government who were serious about tackling fuel poverty and high energy costs would instead pursue more effective ways of meeting our energy needs and decarbonising our power sector, namely through renewable energy, energy efficiency, demand reduction, and demand-side measures such as energy storage, genuinely smart grids and interconnectors.

The UK has the potential to be a massive industrial leader in renewables and efficiency—solutions that could deliver huge cost reductions and a substantial boost to the UK economic recovery, manufacturing and jobs, yet the Bill goes in the opposite direction. Moreover, the secrecy of the Department of Energy and Climate Change negotiations with EDF further undermines confidence in the credibility of the Government’s claims that the deal represents value for money for consumers.

Even if hon. Members are happy for the coalition to break its promise of no public subsidy for nuclear, one would hope that they had some interest in the Minister’s claim that any deal reached would be fair, affordable and value for money. Nuclear costs more than the alternatives and does not represent value for money. We have the opportunity to test that via the expert panel, or by giving the National Audit Office a role in ascertaining value for money, which one of my amendments would do, but Ministers do not look favourably on those proposals.

The truth is that nuclear is a mature technology that has enjoyed nearly 60 years of support. Despite that, the price tag keeps going up. The hon. Member for Cheltenham mentioned the price of nuclear in Finland and France. We should compare that with the fact that the costs of renewables are falling across the board. Last month, Citi Investment Research and Analysis highlighted that, in many cases, renewables are at cost parity with established forms of electricity generation. Recent analysis by Bloomberg New Energy Finance found that the levelised cost of onshore wind had fallen dramatically in recent years, that the best onshore wind farms in the world currently produce power as economically as coal, gas and nuclear generators, and that the average onshore wind farm will reach grid parity by 2016.

That is the point of my first three proposals. They are not anti-nuclear; they would simply ensure that Minister’s warm words on cost-effectiveness and value for money for bill payers were kept. They would also introduce transparency to a shockingly opaque process. If nuclear power is as cost-effective as we are told, I can see no reason why hon. Members would not support my proposals to ensure it. Amendment 24, which has cross-party support, would simply ensure that payments under a CFD for nuclear electricity are not greater than payments for any form of renewable generation, in terms of price per megawatt-hour and taking into account the length of the contract provided.

Amendments 26 and 27 deal with transparency and parliamentary scrutiny of investment contracts and CFDs. They are essential if the public and the House are to have any hope of deciding for themselves whether the terms provide anywhere near value for money compared with alternatives. They would require the Secretary of State to ask the NAO and Parliament to examine whether the contracts represent value for money, in line with the motion debated in a Backbench Business Committee debate on 7 February, and a letter sent recently to the NAO by a cross-party group of MPs and academics.

18:45
Amendments 23 and 25 are more far-reaching. They would in effect rule out new nuclear altogether. Having examined the evidence, I am increasingly convinced that we should reject new nuclear for economic and environmental reasons. There are better, cheaper and faster ways to achieve a zero-carbon power sector by 2030 than going down the nuclear route. Moreover, many experts are concerned that Government support for new nuclear power would mean significantly less investment in renewables and energy efficiency. To do the right thing for our economy, for constituents struggling with fuel bills, and for the environment, amendment 23 would rule out payments for new nuclear through CFD mechanisms. Amendment 25 would rule out any public underwriting of construction costs or other public support for new nuclear through investment contracts.
I will be brief because other hon. Members wish to speak. Amendment 29 would rule out handouts for new fossil fuel plants under the capacity mechanism, which means that capacity payments would go to non-fossil fuel ways of ensuring that power supply met demand. The big six energy suppliers are pressing the Government to support gas-fired power, and urging Ministers to go faster on their capacity market plan to encourage investment in new gas-fired power stations, but a dash for gas, as envisaged by the gas strategy, would be completely incompatible with the nation’s legally binding carbon emissions targets. According to the Committee on Climate Change, that should be plan Z. Perpetuating our reliance on expensive and imported gas means perpetuating high fuel bills. Nor is that the golden solution to energy security that lobbyists would like us to believe it is. Alternative solutions, including the construction and use of interconnector routes, electricity storage, and temporarily shifting or reducing demand during peak periods, should be considered instead. Such solutions should be prioritised.
Finally, anyone who is willing to do the maths on climate change should look at how much more carbon can be safely emitted into the atmosphere and compare it with how much carbon is stored in fossil fuel reserves. For the UK to fulfil its repeated commitment to keep climate change below 2°, around 80% of known fossil fuel reserves must stay in the ground. In the context of that unburnable carbon, using the capacity mechanism to encourage a new dash for gas is both dangerous and irresponsible.
Mark Reckless Portrait Mark Reckless
- Hansard - - - Excerpts

I am pleased to follow the hon. Member for Brighton, Pavilion (Caroline Lucas) and to hear that she intends to press amendment 24, a relatively moderate amendment, to a Division. She envisages subsidy for nuclear as long as it is not greater than the subsidy for renewables, but I would prefer a world in which we do not subsidise any energy production. Under this dog’s breakfast of a Bill, we will end up subsidising almost everything.

My worry with nuclear—my hon. Friend the Member for Cheltenham (Martin Horwood) addressed this—is the length of the contract. I do not go all the way with him on the £1 billion a year cost, or the very large sum grossed up over the period of the contract, but my calculations suggest something in the range of £600 million to £700 million a year just for the new Hinkley stations. That is a huge amount of money. Earlier, the Minister seemed unable to get to grips with the idea that the House might express a view on that. The contract is enormous and could put hundreds of pounds on consumers’ bills, and cost billions of pounds over the length of the contract. It would therefore be highly appropriate for the House to consider the matter, and for hon. Members to vote by positive resolution on whether we believe it is the right thing to do with our constituents’ money.

The key problem with the Bill is that it changes the law and puts very large subsidies to different technologies, which Ministers pick as winners in an opaque process, on a contractual basis that cannot realistically later be unpicked. The Chancellor has told us of an increase in the limit from about £2.4 billion to £9.8 billion per year, which is a quadrupling of the amount spent. That will be added to consumers’ bills for those various technologies, but the Bill implements that into contracts that cannot be unpicked. The nuclear contract could be absolutely enormous. I would like far greater concern for our constituents and the bills they pay for electricity.

We used to have the most competitive energy market in the world. I thought that the Minister believed in free markets, yet essentially what we are doing here is almost the final stage of replacing the freest energy market in the world with one that is rigged against consumers. The cost will be far more than the £9.8 billion figure, which ignores the fact that it is not just through the European Union and its directive that we are planning to close existing coal-fired plant, which are the cheapest at producing electricity. Unilaterally, we are banning the construction of new coal-fired power stations, when Germany has several new coal-fired plants under construction.

John Robertson Portrait John Robertson
- Hansard - - - Excerpts

Will the hon. Gentleman clarify something for me? Is he saying that we should not worry or think about our obligations on climate change? If he is not saying that, how does he expect his electorate to pay for what he is suggesting?

Mark Reckless Portrait Mark Reckless
- Hansard - - - Excerpts

I am sorry to hear the hon. Gentleman not focusing on his constituents’ heritage. Climate reduction and the carbon issue should relate to cost. The coal price has collapsed globally largely because of the success of shale gas in the US and its export of coal, and that means that the cost of the proposals is now far larger than it was. Global temperatures rose until 1998 or 2000. Since then, projections of an exponential increase in temperature have not been borne out by recent data. We have cut our emissions by 24% since 1990, which I think is larger than any other country. What we are left with is a complete mess of policy in the Bill, with various subsidies interacting and greatly increasing bills for our consumers, and I am not sure what the effect will be on reducing carbon emissions compared with, say, the US, which has had a big decrease.

We should look at the cost of coal and the extent to which carbon may be reduced by different things. In this country, we have a price of £16 per tonne on carbon. Under the EU emissions trading scheme, it is less than £2. We are making a great unilateral cross that we must bear when other countries in Europe, for example Germany, are constructing more unabated coal. We will have to buy electricity through the interconnectors, which will hurt our balance of payments and increase the cost to our constituents while we shut down our cheap coal plants. At the same time, shale gas has not come on stream due to the moratorium, as well as ownership and other regulatory restrictions. We will end up with some of the most expensive energy in the world and it is not clear what the impact will be on reducing carbon output.

At the same time as we are closing existing power plants because of the EU, we are banning unilaterally the construction of new plants. The cost of how much we are putting up electricity prices for our constituents should be added to the £9.8 billion figure. We would be much better off if we had a proper market in electricity production, rather than a market rigged against consumers. The Minister, through clauses 38 to 40, wants to introduce a huge network of conflicting subsidies that will let the Government, ex-post, change the conditions of someone’s electricity supply contract. All that will do is increase the price of investment to guard against that risk—yet another thing moving us away from the free market in electricity that might drive down prices for consumers who, certainly in my constituency, are finding the costs very difficult to bear. The previous Government’s policies were bad enough, but the Bill will lead to long-term contracts that may be impossible to get out off, and which will force consumers to pay higher prices for energy for years into the future.

Barry Gardiner Portrait Barry Gardiner
- Hansard - - - Excerpts

I rise to speak to amendments 148 and 150 in my name, and to amendment 179 in the names of my right hon. and hon. Friends.

Under the large combustion plant directive, 8 GW of old coal has to close by 2015. Of that, 6 GW has already gone, with the remaining 2 GW being considered for conversion to biomass. That leaves 20 GW of old coal set to stay on the system. Of that, approximately 15 GW is being considered for all options, which means that it could be opted into the integrated emissions directive, investing in air filters for NOx and SOx in order to comply. This plant would then not have to close in 2023, and would naturally seek to maximise its return on that capital cost by continuing to provide base load generation capacity unconstrained by the EPS.

Amendment 148 would ensure that where substantial pollution abatement equipment properly dealing with the oxides of sulphur, nitrogen, heavy metals or particles is fitted to the generating station in such a way that makes it compliant with the EU IED while still emitting above 450 grams per kWh, the plant would then be brought under the EPS framework. Without the amendment, many plants will succeed in circumventing the EPS, which would undermine the EMR, the UK’s carbon budgets, the incentive to invest in CCS and the coalition agreement, which committed the Department of Energy and Climate Change to introducing an EPS as a backstop to unabated coal. Remember, these old coal plants have already recouped their capital costs. Allowing them to avoid the EPS cannot therefore be justified, and I dispute what the Minister said about the importance of not accepting the amendment in order to allow new coal to recoup its costs.

Ian Lavery Portrait Ian Lavery (Wansbeck) (Lab)
- Hansard - - - Excerpts

Does my hon. Friend agree that coal has a huge role to play in the energy mix of this country? It must, however, be on the basis of burning coal cleanly, using carbon capture and storage. The Government must get a move on and provide the finances to ensure that that happens as soon as possible.

Barry Gardiner Portrait Barry Gardiner
- Hansard - - - Excerpts

I am in 100% agreement with my hon. Friend. I am happy to put on the record that coal is the energy of the future for the next 40 years; not necessarily in this country, but around the world. Unless we develop CCS and export it to such countries as China and India, which are going to be using coal, the future will be bleak for all of us. It is imperative to incentivise CCS, which is why amendment 179, in conjunction with amendments 148 and 150, is so important.

The central purpose of the grandfathering provision in the EPS is to enable investors in newly consented plant to recover their costs prior to being forced to fit CCS and/or limit their running hours. The grandfathering date in the Bill as it stands is simply not credible. The EPS currently allows unabated gas to operate as base load until 2045. This is not plausible in a carbon-constrained world in which international commitments to reduce carbon are more likely to increase than otherwise. More to the point, grandfathering to 2045 reduces the policy levers available to government, and is likely to reduce the demand for CCS for coal and seriously undermine the credibility of CCS for gas. The EPS is the backstop; it is a very different policy lever from the decarbonisation target. As such, it should retain flexibility to account for policy failure. I have not sought, therefore, to amend the level of the EPS, because in a situation of extreme policy failure, we might need to continue to use some of the unabated gas into the late 2020s. The inclusion of a 2030 decarbonisation target should reduce that risk significantly, but it would remain a risk, and one for which the EPS would have to account.

Amendment 150 proposes a 15-year window up to 2029 providing an adequate commercial time frame and aligning itself with the 2030 power sector decarbonisation trajectory. It would provide increased investor confidence by being more credible than the current 2045, and by setting a shorter grandfathering period, new gas plant would be incentivised to begin operation sooner, assisting efforts to address energy security concerns in this decade.

Amendment 179 would remedy the problem of the Energy Bill’s requiring CCS projects to operate under the EPS regime from day one. The amendment would apply the EPS to CCS projects only once an agreed and clearly defined commissioning and proving window had passed. That approach would remove an unnecessary regulatory burden for project developers and lower the cost for consumers, as the EPS risk would not need to be factored into the CFD strike price, and would achieve the Government’s aim—

17:05
Debate interrupted (Programme Order, this day).
The Deputy Speaker put forthwith the Question already proposed from the Chair (Standing Order No. 83E), That the clause be read a Second time.
Question agreed to.
New clause 8 accordingly read a Second time, and added to the Bill.
The Deputy Speaker then put forthwith the Questions necessary for the disposal of business to be concluded at that time (Standing Order No. 83E).
New Clause 9
Capacity market rules: procedure
‘(1) Before the first exercise by the Secretary of State of the power to make capacity market rules, the Secretary of State must lay a draft of the rules before Parliament.
(2) If, within the 40-day period, either House of Parliament resolves not to approve the draft, the Secretary of State may not take any further steps in relation to the proposed rules.
(3) If no such resolution is made within that period, the Secretary of State may make the rules in the form of the draft.
(4) Subsection (3) does not prevent a new draft of proposed capacity market rules being laid before Parliament.
(5) In this section “40-day period”, in relation to a draft of proposed capacity market rules, means the period of 40 days beginning with the day on which the draft is laid before Parliament (or, if it is not laid before each House of Parliament on the same day, the later of the 2 days on which it is laid).
(6) For the purposes of calculating the 40-day period, no account is to be taken of any period during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than 4 days.
(7) Before any exercise by the Secretary of State of a power to make capacity market rules, the Secretary of State must consult—
(a) the Authority;
(b) any person who is a holder of a licence to supply electricity under section 6(1)(d) of EA 1989;
(c) any person who is a capacity provider;
(d) such other persons as the Secretary of State considers it appropriate to consult.
(8) In relation to any exercise by the Secretary of State or the Authority of a power to make capacity market rules, the person making the rules must, as soon as reasonably practicable after they are made, lay them before Parliament and publish them.’.—(Michael Fallon.)
Brought up, and added to the Bill.
New Clause 10
Capacity market rules: further provision
‘(1) Capacity market rules may—
(a) include incidental, supplementary and consequential provision;
(b) make transitory or transitional provision or savings;
(c) make different provision for different cases or circumstances or for different purposes;
(d) make provision subject to exceptions.
(2) A power to make capacity market rules includes a power to amend, add to or remove capacity market rules (and a person exercising such a power may amend, add to or remove provision in capacity market rules made by another person).
(3) But subsection (2) is subject to provision made by electricity capacity regulations.’.—(Michael Fallon.)
Brought up, and added to the Bill.
New Clause 13
Nuclear regulations: civil liability
‘(1) Nuclear regulations may provide for breach of a relevant nuclear duty to be actionable (whether or not they also provide for it to be an offence).
(2) Except so far as nuclear regulations provide, any such breach does not give rise to a claim for breach of statutory duty.
(3) Nuclear regulations may provide for—
(a) defences in relation to any action for breach of a relevant nuclear duty;
(b) any term of an agreement which purports to exclude or restrict liability for breach of a relevant nuclear duty to be void.
(4) For this purpose “relevant nuclear duty” means a duty imposed by—
(a) nuclear regulations, or
(b) any provision of, or made under, the Nuclear Installations Act 1965 that is a relevant statutory provision.
(5) Nothing in this section affects any right of action or defence which otherwise exists or may be available.’.—(Michael Fallon.)
Brought up, and added to the Bill.
New Clause 14
Civil liability: saving for section 12 of the Nuclear Installations Act 1965
‘Nothing in this Part affects the operation of section 12 of the Nuclear Installations Act 1965 (right to compensation by virtue of certain provisions of that Act).’.—(Michael Fallon.)
Brought up, and added to the Bill.
New Clause 5
Expert panel
‘Schedule [The Expert Panel] has effect.’.—(Martin Horwood.)
Brought up.
Question put, That the clause be added to the Bill:—
19:01

Division 12

Ayes: 232


Labour: 219
Scottish National Party: 4
Conservative: 3
Liberal Democrat: 3
Social Democratic & Labour Party: 1
Plaid Cymru: 1
Green Party: 1

Noes: 287


Conservative: 249
Liberal Democrat: 36
Independent: 1
Labour: 1

Clause 5
General considerations relating to this Part
Amendment made: 52, page 5, line 10, at end insert—
‘(4) The Secretary of State must before 31st December in each year, beginning with 2014, prepare and lay before Parliament a report setting out how the Secretary of State has carried out during the year the functions under this Part of this Act.
(5) The Secretary of State must publish the report and send a copy of it to the Department of Enterprise, Trade and Investment, the Scottish Ministers and the Welsh Ministers.’.—(Michael Fallon.)
Clause 7
Designation of a CFD counterparty
Amendments made: 53, page 6, line 15, at beginning insert
‘The Secretary of State may exercise the power to designate so that’.
Amendment 54, page 6, line 15, leave out ‘may have’ and insert ‘has’.
Amendment 55, page 6, line 15, at end insert
‘, but only if the Secretary of State considers it necessary for the purpose of ensuring that—
(a) liabilities under a CFD are met,
(b) arrangements entered into for purposes connected to a CFD continue to operate, or
(c) directions given to a CFD counterparty continue to have effect.’.
Amendment 56, page 6, line 20, leave out ‘28 days’’ and insert ‘3 months’’.
Amendment 57, page 6, line 29, leave out ‘obligations’ and insert ‘liabilities’.—(Michael Fallon.)
Clause 8
Duties of a CFD counterparty
Amendment made: 58, page 6, line 39, at end insert—
‘(1A) A CFD counterparty must exercise the functions conferred by or by virtue of this Chapter to ensure that it can meet its liabilities under any CFD to which it is a party.’.—(Michael Fallon.)
Clause 9
Supplier obligation
Amendments made: 59, page 7, line 13, at end insert—
‘(2A) In subsection (2)(a) “costs” means costs in connection with the performance of any function conferred by or by virtue of this Chapter.’.
Amendment 60, page 7, line 39, at end insert—
‘(7A) A CFD counterparty may recover from an electricity supplier, as a civil debt due to it, any sum which—
(a) the electricity supplier is required by virtue of regulations to pay to the CFD counterparty, and
(b) has not been paid by the date on which it is required by virtue of regulations to be paid.’.—(Michael Fallon.)
Clause 11
Payments to electricity suppliers
Amendment made: 61, page 8, line 31, at end insert—
‘(1A) Provision made by virtue of this section may—
(a) include provision for a CFD counterparty to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts which are owed by the CFD counterparty;
(b) provide for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.’.—(Michael Fallon.)
Amendment proposed: 24, page 8, line 37, at end insert—
‘(3) Payments offered under a contract for difference relating to the supply of electricity generated by nuclear power must not exceed payments offered under any contract for the supply of electricity from renewable sources.
(4) For the purposes of subsection (3)—
(a) the calculation of payments must include both the strike price and the duration of the contract;
(b) renewable sources are defined in accordance with Article 2 of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources.’.—(Caroline Lucas.)
Question put, That the amendment be made.
19:17

Division 13

Ayes: 20


Labour: 12
Conservative: 3
Liberal Democrat: 2
Scottish National Party: 2
Social Democratic & Labour Party: 1
Green Party: 1

Noes: 503


Conservative: 252
Labour: 208
Liberal Democrat: 41
Independent: 1

Clause 12
Appplication of sums held by a CFD counterparty
Amendments made: 62, page 9, line 2, leave out ‘obligations’ and insert ‘its liabilities’.
Amendment 63, page 9, line 4, leave out ‘obligations’ and insert ‘its liabilities’.
Amendment 64, page 9, line 4, at end insert—
‘(2A) In making provision by virtue of subsection (1) the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts which are owed.’.—(Michael Fallon.)
Clause 15
Regulations: further provision
Amendment made: 65, page 10, line 21, at end insert—
‘(3) Regulations must include such provision as the Secretary of State considers necessary to ensure that a CFD counterparty can meet its liabilities under any CFD to which it is a party.’. —(Michael Fallon.)
Clause 22
Capacity agreements
Amendments made: 101, page 13, line 19, leave out ‘to or’.
Amendment 102, page 13, line 21, leave out ‘to or’.
Amendment 103, in clause 22, page 14, line 6, at end insert—
‘(5A) Provision made by virtue of subsection (4)(f) and (g) may—
(a) include provision for a settlement body to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts which are owed as capacity payments or capacity incentives;
(b) provide for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.’.—(Michael Fallon.)
Clause 24
Settlement body
Amendment made: 104, page 15, line 2, at end insert—
‘(1A) In subsection (1)(a) “costs” means costs in connection with the performance of any function conferred by or by virtue of this Chapter.’.—(Michael Fallon.)
Clause 28
Enforcement and dispute resolution
Amendments made: 105, page 16, line 19, at end insert
‘or by capacity market rules.
‘(1A) Capacity market rules may make provision about the enforcement of any obligation or requirement imposed by the rules.’.
Amendment 106, page 16, line 20, after ‘regulations’ insert
‘or in capacity market rules’.
Amendment 107, page 16, line 25, after ‘regulations’ insert
‘or under capacity market rules’.—(Michael Fallon.)
Clause 42
Duty not to exceed annual carbon dioxide emissions limit
Amendment proposed: 179, page 42, line 35, at end insert—
‘( ) Section 42(1) is not to apply in relation to CCS plant until completion of the commissioning and proving period that shall last no longer than 3 years.’.—(Tom Greatrex.)
Question put, That the amendment be made.
19:34

Division 14

Ayes: 225


Labour: 218
Scottish National Party: 4
Conservative: 1
Social Democratic & Labour Party: 1
Plaid Cymru: 1

Noes: 298


Conservative: 252
Liberal Democrat: 45
Independent: 1

Clause 50
Review of certain provisions of Part 2
Amendment made: 66, page 50, line 23, at end insert—
‘( ) Chapter 8 (emissions performance standard).’.—(Michael Fallon.)
Clause 59
Nuclear regulations: offences
Amendments made: 108, page 56, line 33, after ‘with’ insert
‘, in England and Wales, a fine or, in Scotland or Northern Ireland,’.
Amendment 109, page 57, line 4, after ‘with’ insert ‘—
(i) in England and Wales, a fine (or a fine not exceeding an amount specified, which must not exceed level 4 on the standard scale), or
(ii) in Scotland or Northern Ireland,’.—(Michael Fallon.)
Clause 60
Civil liability for breach of nuclear regulations
Amendment made: 110, in page 57, line 16, leave out Clause 60.—(Michael Fallon.)
Clause 68
Inquiries
Amendment made: 111, page 61, line 29, leave out ‘a fine not exceeding’ and insert ‘—
(a) in England and Wales, a fine (or a fine not exceeding an amount specified, which must not exceed level 4 on the standard scale), or
(b) in Scotland or Northern Ireland, a fine not exceeding the amount specified, which must not exceed’.—(Michael Fallon.)
Clause 80
Power to obtain information
Amendment made: 112, page 67, line 40, after ‘to’ insert ‘—
(i) in England and Wales, a fine, or
(ii) in Scotland or Northern Ireland,’.—(Michael Fallon.)
Clause 82
HMRC power to seize articles etc to facilitate ONR and inspectors
Amendment made: 113, page 68, line 27, after ‘to’ insert ‘—
(i) in England and Wales, a fine, or
(ii) in Scotland or Northern Ireland,’.—(Michael Fallon.)
Clause 85
General duty of employees at work in relation to requirements imposed on others
Amendment made: 114, page 70, line 15, leave out
‘not exceeding the statutory maximum’
and insert
‘(in England and Wales) or a fine not exceeding the statutory maximum (in Scotland or Northern Ireland)’.—(Michael Fallon.)
Clause 86
Duty not to interfere with or misuse certain things provided under statutory requirements
Amendment made: 115, page 71, line 4, leave out ‘not exceeding £20,000’ and insert
‘(in England and Wales) or a fine not exceeding £20,000 (in Scotland or Northern Ireland)’.—(Michael Fallon.)
Clause 87
Duty not to charge employees for certain things
Amendment made: 116, page 71, line 20, after ‘to’ insert ‘—
(i) in England and Wales, a fine, or
(ii) in Scotland or Northern Ireland’.—(Michael Fallon.)
Clause 88
Offences relating to false information and deception
Amendment made: 117, page 72, line 17, leave out ‘not exceeding £20,000,’ and insert
‘(in England and Wales) or a fine not exceeding £20,000 (in Scotland or Northern Ireland),’.—(Michael Fallon.)
Clause 98
Minor and consequential amendments
Amendment made: 118, page 78, line 29, at end insert—
‘(3) The power in subsection (2) includes power to make modifications of—
(a) paragraphs 16 to 25B of Schedule 12 (amendments of the Nuclear Installations Act 1965), or
(b) the provisions of the Nuclear Installations Act 1965 that are amended by those paragraphs.
(4) The power conferred by virtue of subsection (3) is exercisable—
(a) before or after the date on which those paragraphs come into force, and
(b) only for the purpose of making provision corresponding to any amendments of the Nuclear Installations Act 1965 set out in an order made before that date (whether before or after this Act is passed) under section 76 of the Energy Act 2004 (amendments for giving effect to international obligations).’.—(Michael Fallon.)
Clause 120
Consequential provision
Amendment made: 67, page 91, line 14, at end insert—
‘(4) In the 1986 Act—
(a) in section 4AA(7), for “sections 4AB and 4A” substitute “section 4A”;
(b) in section 7B(4), in paragraph (a) omit “, 4AB”;
(c) in section 23D(2)—
(i) at the end of paragraph (b) omit “and”,
(ii) in paragraph (c) for “sections 4AB and” substitute “section”, and
(iii) at the end of paragraph (c) insert “; and
(d) in the performance of its duties under section114(1) and (2) of the Energy Act 2013.”;
(d) in section 28(5), in paragraph (a) omit “, 4AB”;
(e) in section 38(1A), omit “, 4AB”;
(f) in section 41E(6)—
(i) omit paragraph (b), and
(ii) at the end of paragraph (c) insert “; and
(d) any statement for the time being designated as the strategy and policy statement for the purposes of Part 5 of the Energy Act 2013.”
(5) In EA 1989—
(a) in section 3A(7), for “sections 3B and 3C” substitute “section 3C”;
(b) in section 11E(2)—
(i) at the end of paragraph (b) omit “and”,
(ii) in paragraph (c) for “sections 3B and 3C” substitute “section 3C”, and
(iii) at the end of paragraph (c) insert “; and
(d) in the performance of its duties under section114(1) and (2) of the Energy Act 2013.”;
(c) in section 28(2A), omit “, 3B”;
(d) in section 56C(6)—
(i) omit paragraph (b), and
(ii) at the end of paragraph (c) insert “; and
(d) any statement for the time being designated as the strategy and policy statement for the purposes of Part 5 of the Energy Act 2013.”’.—(Michael Fallon.)
Clause 121
Power to modify energy supply licences: domestic supply contracts
Amendments made: 119, page 91, line 30, leave out from beginning to end of line 35 and insert—
‘by making provision of any of the kinds specified in subsection (3).
(3) The kinds of provision mentioned in subsection (1) are—’
Amendment 120, page 91, line 36, after ‘(a)’ insert ‘provision’.
Amendment 121, page 91, line 38, leave out
‘for specifying a limit on’
and insert ‘provision for restricting’.
Amendment 122, page 92, line 1, leave out ‘about discretionary terms (and’ and insert
‘provision about discretionary terms (which’.
Amendment 123, page 92, line 4, after ‘(d)’ insert ‘provision’.
Amendment 124, page 92, line 5, leave out ‘including’ and insert ‘which may include’.
Amendment 125, page 92, line 11, leave out paragraph (e) and insert—
‘(e) provision for requiring a licence holder to change the domestic tariff on which it supplies gas or electricity to a domestic customer who is on a closed tariff by—
(i) switching to a different domestic tariff for the time being offered by the licence holder, unless the customer objects, or
(ii) offering the customer, or inviting the customer to switch to, a different domestic tariff for the time being offered by the licence holder.’.
Amendment 126, page 92, line 17, at end insert—
‘( ) Any limit imposed by virtue of subsection (3)(b) on the number of tariffs, or tariffs of any category, that a licence holder may adopt must be greater than the number of standard domestic tariffs, or (as the case may be) standard domestic tariffs of that category, that the licence holder is required to adopt.’.
Amendment 127, page 92, line 38, at end insert—
‘( ) may make provision for determining when a licence holder is, or is not, to be regarded as offering to supply gas or electricity on a particular tariff (or as offering other terms in connection with domestic supply contracts) for the purpose of a relevant provision;
( ) may make provision for supplies (or proposed supplies) of gas or electricity to be regarded as being on the same tariff or different tariffs for the purpose of a relevant provision;’.
Amendment 128, page 93, line 17, at end insert—
‘“closed tariff” means a domestic tariff on which a licence holder—
(a) supplies gas or electricity to customers under existing domestic supply contracts, but
(b) no longer offers to supply gas or electricity to customers who are not already on the tariff;’.
Amendment 129, page 93, line 25, leave out from ‘tariff”’ to end of line 26 and insert
‘means the set of principal terms of a domestic supply contract (or proposed domestic supply contract);’.
Amendment 130, page 93, line 41, leave out from ‘period’ to end of line 42 and insert
‘to be determined by the licence holder, but
(b) may not include any term setting the amount of a charge or rate or otherwise specifying how it is to be determined.’.
Amendment 131, page 93, line 45, leave out ‘and’ and insert—
‘( ) a domestic customer is on a particular domestic tariff if gas or electricity is supplied to the customer on that tariff, and’.
Amendment 132, page 93, line 47, at end insert
‘(and references to adopting a tariff include references to doing either or both of them).’.
Amendment 133, page 94, line 1, leave out from second ‘of’ to end of line 3 and insert
‘domestic supply contracts which are the principal terms of such contracts.’.—(Michael Fallon.)
Clause 133
Financial provisions
Amendments made: 68, page 102, line 25, after ‘3’ insert ‘of Part 2’.
Amendment 134, page 102, line 26, leave out ‘a person who is’. —(Michael Fallon.)
Clause 134
Extent
Amendment made: 136, page 103, line 19, leave out from ‘(a)’ to ‘to’ in line 20 and insert
‘paragraph 22 (amendment of section 24A of the Nuclear Installations Act 1965 as it has effect in England and Wales and Scotland) extends’.—(Michael Fallon.)
Clause 135
Commencement
Amendment made: 69, page 103, line 41, leave out ‘120(1) (repeals)’ and insert ‘120(1), (4) and (5)’.—(Michael Fallon.)
Schedule 2
Investment Contracts
Amendments made: 71, page 107, line 25, leave out from ‘paragraph 3)’ to the end of line 29.
Amendment 72, page 108, line 15, leave out from ‘paragraph 3)’ to the end of line 19.—(Michael Fallon.)
Amendment proposed: 9, page 108, line 24, at end insert—
‘( ) For the purposes of paragraphs 1 and 2, information is “confidential information” only if it constitutes a trade secret.’. —(Tom Greatrex.)
Question put, That the amendment be made.
19:47

Division 15

Ayes: 227


Labour: 217
Scottish National Party: 4
Conservative: 2
Social Democratic & Labour Party: 1
Plaid Cymru: 1
Green Party: 1
Democratic Unionist Party: 1

Noes: 304


Conservative: 254
Liberal Democrat: 47
Independent: 1

Amendments made: 73, page 109, line 24, leave out ‘may be designated’ and insert ‘is eligible’.
Amendment 74, page 109, line 29, at beginning insert
‘The Secretary of State may exercise the power to designate so that’.
Amendment 75, page 109, line 29, leave out ‘may have’ and insert ‘has’.
Amendment 76, page 109, line 29, at end insert
‘, but only if the Secretary of State considers it necessary for the purpose of ensuring that—
(a) liabilities under an investment contract are met,
(b) arrangements entered into for purposes connected to an investment contract continue to operate, or
(c) directions given to an investment contract counterparty continue to have effect.’.
Amendment 77, page 109, line 34, leave out ‘28 days’’ and insert ‘3 months’’.
Amendment 78, page 109, line 37, leave out ‘obligations’ and insert ‘liabilities’.
Amendment 79, page 110, line 38, at end insert—
‘(3A) In sub-paragraph (3)(a) “costs” means costs in connection with the performance of any function conferred by or by virtue of this Schedule.’.
Amendment 80, page 111, line 27, at end insert—
‘(9) The Secretary of State, an investment contract counterparty or a CFD counterparty may recover from an electricity supplier, as a civil debt due, any sum which—
(a) the electricity supplier is required by virtue of regulations to pay to the Secretary of State, the investment contract counterparty or the CFD counterparty (as the case may be), and
(b) has not been paid by the date on which it is required by virtue of regulations to be paid.’.
Amendment 81, page 111, line 31, at end insert—
‘(2) Provision made by virtue of this paragraph may—
(a) include provision for the person by whom sums are owed to calculate or determine, in accordance with such criteria as may be provided for by or under the regulations, amounts which are owed;
(b) provide for anything which is to be calculated or determined under the regulations to be calculated or determined by such persons, in accordance with such procedure and by reference to such matters and to the opinion of such persons, as may be specified in the regulations.’.
Amendment 82, page 111, line 43, leave out ‘obligations’ and insert ‘liabilities’.
Amendment 83, page 112, line 2, leave out ‘obligations’ and insert ‘liabilities’.
Amendment 84, page 112, line 3, at end insert—
‘(2A) In making provision by virtue of sub-paragraph (1) the Secretary of State must have regard to the principle that sums should be apportioned in proportion to the amounts which are owed.’.
Amendment 85, page 114, line 11, at end insert—
‘(1A) An investment contract counterparty and a CFD counterparty must exercise the functions conferred by or by virtue of this Schedule to ensure that it can meet its liabilities under any investment contract to which it is a party.’.
Amendment 86, page 114, line 30, at end insert—
‘(4) Regulations must include such provision as the Secretary of State considers necessary to ensure that an investment contract counterparty or a CFD counterparty can meet its liabilities under any investment contract to which it is a party.’.
Amendment 87, page 115, line 5, after ‘property,’ insert ‘or designated’.
Amendment 88, page 115, line 16, leave out
‘, to any extent considered appropriate by the Secretary of State,’.
Amendment 89, page 115, line 17, after ‘treated’ insert ‘to any extent’.
Amendment 90, page 115, line 18, at end insert—
‘(2A) Sub-paragraph (2B) applies from the beginning of the first day on which all of the following three conditions are met, namely—
(a) a definition of an “eligible generator” is in force by virtue of section 10(3) or the date is 1st January 2016 or later;
(b) a designation under section 7(1) has effect;
(c) provision required by section 9(1) to be made is in force.
(2B) The Secretary of State must in respect of each investment contract, within such period of time as the Secretary of State considers reasonable—
(a) make a transfer scheme by virtue of sub-paragraph (1)(a) or (c) to ensure the transfer of all rights and liabilities under the investment contract, and
(b) make provision under sub-paragraph (2) for the investment contract to be treated as a CFD for the purposes of all provision made by or by virtue of Chapter 2 of Part 2 of this Act.
(2C) But sub-paragraph (2B) does not apply to the extent that the Secretary of State considers it appropriate in all the circumstances of the case to disapply it.’.—(Michael Fallon.)
Schedule 8
Inspectors
Amendments made: 137, page 139, line 5, leave out ‘not exceeding £20,000,’ and insert
‘(in England and Wales) or a fine not exceeding £20,000 (in Scotland or Northern Ireland),’.
Amendment 138, page 143, line 34, leave out ‘not exceeding £20,000,’ and insert
‘(in England and Wales) or a fine not exceeding £20,000 (in Scotland or Northern Ireland),’.
Amendment 139, page 144, line 5, after ‘to’ insert
‘—in England and Wales, a fine, or in Scotland or Northern Ireland’.
(i) in England and Wales, a fine, or
(ii) in Scotland or Northern Ireland’.
Amendment 140, page 144, line 13, after ‘to’ insert ‘—
(a) in England and Wales, a fine, or
(b) in Scotland or Northern Ireland,’.—(Michael Fallon.)
Schedule 9
Disclosure of information
Amendments made: 141, page 147, line 29, leave out
‘not exceeding the statutory maximum’
and insert
‘(in England and Wales) or a fine not exceeding the statutory maximum (in Scotland or Northern Ireland)’.
Amendment 91, page 149, line 9, at end insert—
( ) the Natural Resources Body for Wales;’.—(Michael Fallon.)
Schedule 10
Provisions relating to offences
Amendment made: 142, page 157, line 42, leave out ‘not exceeding £20,000,’ and insert
‘(in England and Wales) or a fine not exceeding £20,000 (in Scotland or Northern Ireland),’.—(Michael Fallon.)
Schedule 12
Minor and consequential amendments relating to Part 3
Amendments made: 143, page 168, line 17, leave out from beginning to end of line 12 on page 171 and insert—
16 For section 1 substitute—
“1 Restriction of certain nuclear installations to licensed sites
(1) No person may use a site for the purpose of installing or operating—
(a) any nuclear reactor (other than a nuclear reactor comprised in a means of transport, whether by land, water or air), or
(b) any other installation of a prescribed kind,
unless a licence to do so has been granted in respect of the site by the appropriate national authority and is in force.
(2) Such a licence is referred to in this Act as a “nuclear site licence”.
(3) The only kinds of installation that may be prescribed under subsection (1)(b) are installations (other than nuclear reactors) designed or adapted for—
(a) producing or using atomic energy,
(b) any process which—
(i) is preparatory or ancillary to producing or using atomic energy, and
(ii) involves, or is capable of causing, the emission of ionising radiations, or
(c) storing, processing or disposing of—
(i) nuclear fuel, or
(ii) bulk quantities of other radioactive matter which has been produced or irradiated in the course of the production or use of nuclear fuel.
(4) Regulations under subsection (1)(b) may make provision for exempting an installation from subsection (1).
(5) Regulations made by virtue of subsection (4)—
(a) may provide for any exemption to be conditional;
(b) may not result in an installation being exempt from subsection (1) unless the Secretary of State is satisfied that it is not a relevant installation (or, in the case of a conditional exemption, would not be a relevant installation if the prescribed conditions were satisfied).
(6) Before exercising any function under subsection (1)(b), (4) or (5) in or as regards Scotland, the Secretary of State must consult the Scottish Ministers.
(7) Any person who contravenes subsection (1) is guilty of an offence.
(8) A person convicted of an offence under subsection (7) in England and Wales or Scotland is liable—
(a) on conviction on indictment to imprisonment for a term not exceeding 2 years, or a fine, or both;
(b) on summary conviction to imprisonment for a term not exceeding 12 months, or a fine (in England and Wales) or a fine not exceeding £20,000 (in Scotland), or both.
(9) A person convicted of an offence under subsection (7) in Northern Ireland is liable—
(a) on conviction on indictment to imprisonment for a term not exceeding 5 years, or a fine, or both;
(b) on summary conviction to imprisonment for a term not exceeding 3 months, or a fine not exceeding the prescribed sum, or both.
(10) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (general limit on magistrates’ court’s power to imprison), the reference to 12 months in subsection (8)(b), as it has effect in England and Wales, is to be read as a reference to 6 months.
(11) Subsection (1) is subject to section 47 of the Energy Act 2008 (prohibition in England and Wales and Northern Ireland on use of site in absence of approved funded decommissioning programme).”
17 For section 3 substitute—
“3 Grant and variation of nuclear site licences
(1) A nuclear site licence—
(a) may be granted only to a body corporate;
(b) is not transferable.
(2) The appropriate national authority must consult the appropriate environment authority before granting a nuclear site licence.
(3) Two or more installations in the vicinity of one another may, if the appropriate national authority consider appropriate, be treated for the purposes of the grant of a nuclear site licence as being on the same site.
(4) Subject to subsection (8), where an application is made for a nuclear site licence, the appropriate national authority may direct the applicant to serve a notice on any public authority specified in the direction.
(5) For this purpose “public authority” includes—
(a) in relation to a site in England or Wales, a water undertaker;
(b) in relation to a site in Scotland, Scottish Water;
(c) in relation to a site in Northern Ireland, a water undertaker (within the meaning of the Water and Sewerage Services) (Northern Ireland) Order 2006 (S.I. 2006/3336 (N.I. 21)).
(6) Such a notice must—
(a) state that the application has been made,
(b) give such particulars about the proposed use of the site under the licence as may be specified in the direction, and
(c) state that the body on whom it is served may make representations about the application to the appropriate national authority within three months of the date of service.
(7) Where a direction has been given under subsection (4), the appropriate national authority may not grant the licence unless it is satisfied that—
(a) three months have passed since the service of the last of the notices required by the direction, and
(b) the authority has considered any representations made in accordance with any of those notices.
(8) Subsection (4) does not apply in relation to an application in respect of a site for a generating station where—
(a) a consent under section 36 of the Electricity Act 1989 is required for the operation of the station (or would be required but for an order under the Planning Act 2008 granting development consent for the site), or
(b) a consent under Article 39 of the Electricity (Northern Ireland) Order 1992 is required for the operation of the station.
(9) A nuclear site licence may include provision about when section 19(1) is to start to apply in relation to the licensed site.
(10) But, if the licence relates to a site in England, Wales or Scotland, such a provision may be included only with the consent of the Secretary of State.
(11) Where a nuclear site licence includes such a provision, section 19(1) does not apply in relation to the site until—
(a) the time determined in accordance with the provision, or
(b) if earlier, the time when the site is first used for the operation of a nuclear installation after the grant of the licence.
(12) The appropriate national authority may from time to time vary a nuclear site licence by excluding from it any part of the licensed site—
(a) which the licensee no longer needs for any use requiring such a licence, and
(b) with respect to which the appropriate national authority is satisfied that there is no danger from ionising radiations from anything on that part of the site.
(13) The appropriate national authority must consult the appropriate environment authority before varying a nuclear site licence if the variation relates to or affects the creation, accumulation or disposal of radioactive waste.
(14) In subsection (13), “radioactive waste”—
(a) in relation to a site in England or Wales, has the same meaning as in the Environmental Permitting (England and Wales) Regulations 2010 (S.I. 2010/675);
(b) in relation to a site in Scotland or Northern Ireland, has the same meaning as in the Radioactive Substances Act 1993.”
18 For section 4 substitute—
“4 Attachment of conditions to licences
(1) The appropriate national authority—
(a) must, when it grants a nuclear site licence, attach to it such conditions as the authority considers necessary or desirable in the interests of safety, and
(b) may attach such conditions to it at any other time.
(2) For the purposes of subsection (1), “safety” in relation to a nuclear site includes—
(a) safety in normal circumstances, and
(b) safety in the event of any accident or other emergency on the site.
(3) Conditions that may be attached to a licence by virtue of subsection (1) may in particular include provision—
(a) for securing that an efficient system is maintained for detecting and recording the presence and intensity of any ionising radiations from time to time emitted from anything on the site or from anything discharged on or from the site;
(b) with respect to the design, siting, construction, installation, operation, modification and maintenance of any plant or other installation on, or to be installed on, the site;
(c) with respect to preparations for dealing with, and measures to be taken on the happening of, any accident or other emergency on the site;
(d) without prejudice to sections 13 and 16 of the Radioactive Substances Act 1993 or to the Environmental Permitting (England and Wales) Regulations 2010 (S.I. 2010/675), with respect to the discharge of any substance on or from the site.
(4) The appropriate national authority may at any time attach to a nuclear site licence such conditions as the appropriate national authority may consider appropriate with respect to the handling, treatment and disposal of nuclear matter.
(5) The appropriate national authority may at any time vary or revoke any condition for the time being attached to a nuclear site licence by virtue of this section.
(6) The appropriate national authority must consult the appropriate environment authority before—
(a) attaching any condition to a nuclear site licence, or
(b) varying or revoking any condition attached to a nuclear site licence,
if the condition relates to or affects the creation, accumulation or disposal of radioactive waste.
(7) In subsection (6) “radioactive waste”—
(a) in relation to a site in England or Wales, has the same meaning as in the Environmental Permitting (England and Wales) Regulations 2010 (S.I. 2010/675);
(b) in relation to a site in Scotland or Northern Ireland, has the same meaning as in the Radioactive Substances Act 1993.
(8) Any power under this section to attach, vary or revoke a condition is exercisable in writing.
(9) The appropriate national authority must consider any representation which is—
(a) made to it by an organisation representing persons who have duties on a site in respect of which a nuclear site licence is in force, and
(b) relates to the exercise by the authority of any of its powers under this section in relation to the site.
(10) Where a condition attached to a nuclear site licence by virtue of this section is contravened, each of the following is guilty of an offence—
(a) the licensee, and
(b) any person having duties upon the site in question who committed the contravention.
(11) A person convicted of an offence under subsection (10) in England and Wales or Scotland is liable—
(a) on conviction on indictment to imprisonment for a term not exceeding 2 years, or a fine, or both;
(b) on summary conviction to imprisonment for a term not exceeding 12 months, or a fine (in England and Wales) or a fine not exceeding £20,000 (in Scotland), or both.
(12) A person convicted of an offence under subsection (10) in Northern Ireland is liable—
(a) on conviction on indictment to imprisonment for a term not exceeding 5 years, or a fine, or both;
(b) on summary conviction to imprisonment for a term not exceeding 3 months, or a fine not exceeding the prescribed sum, or both.
(13) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (general limit on magistrates’ court’s power to imprison) the reference to 12 months in subsection (11)(b), as it has effect in England and Wales, is to be read as a reference to 6 months.”
19 For section 5 substitute—
“5 Revocation and surrender of licences
(1) A nuclear site licence may at any time be—
(a) revoked by the appropriate national authority, or
(b) surrendered by the licensee.
(2) The appropriate national authority must consult the appropriate environment authority before revoking a nuclear site licence.
(3) Subsections (4) to (6) apply where a nuclear site licence has been revoked or surrendered.
(4) If the appropriate national authority requires it to do so, the licensee must deliver up or account for the licence to such person as the appropriate national authority may direct.
(5) During the remainder of the period of the licensee’s responsibility the appropriate national authority may give the licensee such directions as the authority may consider appropriate for preventing, or giving warning of, any risk of—
(a) injury to any person, or
(b) damage to any property,
by ionising radiations from anything remaining on the site.
(6) A nuclear safety inspector may direct the licensee to ensure that, during the remainder of the period of responsibility, notices indicating the limits of the site are kept posted on the site in the positions specified in the direction.
(7) For this purpose, “nuclear safety inspector” means an inspector appointed—
(a) by the ONR under Schedule 8 to the Energy Act 2013, in the case of a site in England, Wales or Scotland, or
(b) under section 24, in the case of a site in Northern Ireland.
(8) A licensee who contravenes any direction for the time being in force under subsection (5) or (6) is guilty of an offence.
(9) A person who without reasonable cause pulls down, injures or defaces any notice posted under subsection (6) is guilty of an offence.
(10) A person convicted of an offence under subsection (8) in England and Wales or Scotland is liable—
(a) on conviction on indictment to imprisonment for a term not exceeding 2 years, or a fine, or both;
(b) on summary conviction to imprisonment for a term not exceeding 12 months, or a fine (in England and Wales) or a fine not exceeding £20,000 (in Scotland), or both.
(11) A person convicted of an offence under subsection (8) in Northern Ireland is liable—
(a) on conviction on indictment, to imprisonment for a term not exceeding 12 months, or a fine, or both;
(b) on summary conviction, to imprisonment for a term not exceeding 3 months, or a fine not exceeding the prescribed sum, or both.
(12) A person convicted of an offence under subsection (9) is liable on summary conviction—
(a) in England and Wales or Scotland, to a fine not exceeding level 2 on the standard scale;
(b) in Northern Ireland, to a fine not exceeding level 1 on the standard scale.
(13) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (general limit on magistrates’ court’s power to imprison), the reference to 12 months in subsection (10)(b), as it has effect in England and Wales, is to be read as a reference to 6 months.
(14) In this Act, “period of responsibility” in relation to the licensee under a nuclear site licence means, as respects the site in question or any part of it, the period—
(a) beginning with the grant of the licence, and
(b) ending with whichever of the dates in subsection (15) is the earliest,
except that it does not include any period during which section 19(1) does not apply in relation to the site.
(15) Those dates are—
(a) the date when the appropriate national authority gives notice in writing to the licensee that in the authority’s opinion there has ceased to be any danger from ionising radiations from anything on the site or, as the case may be, on the part of it in question;
(b) the date when a new nuclear site licence in respect of a site comprising the site in question or, as the case may be, that part of it, is granted (whether to the same licensee or to some other person);
(c) the date when the following conditions have both become satisfied—
(i) the site in question or, as the case may be, that part of it is used or occupied by or on behalf of the Crown, and
(ii) a nuclear site licence has ceased to be required in respect of that site or part.”
20 For section 6 substitute—
“6 Maintenance of list of licensed sites
(1) The appropriate authority must maintain a list showing every site in respect of which a nuclear site licence has been granted.
(2) The list—
(a) need not show any site or part of a site in the case of which—
(i) no nuclear site licence is for the time being in force; and
(ii) 30 years have passed since the end of the last licensee’s period of responsibility;
(b) must include a map or maps showing the position and limits of each site shown in the list.
(3) The authority must arrange for the list, or a copy of it, to be available for inspection by the public.
(4) In this section “appropriate authority” means—
(a) in relation to England and Wales and Northern Ireland, the Secretary of State;
(b) in relation to Scotland, the Scottish Ministers.”
20A In section 19(1) (special cover for licensee’s liability), for “section 3(5)” substitute “section 3(11)”.
20B For section 22 (reporting of and inquiries into dangerous occurrences) substitute—
“22 Reporting of and inquiries into dangerous occurrences
(1) The provisions of this section apply where any prescribed occurrence happens—
(a) on a licensed site, or
(b) in the course of the carriage of nuclear matter on behalf of any person where a duty with respect to that carriage is imposed on that person by section 7, 10 or 11 of this Act.
(2) The licensee or other person mentioned in subsection (1) must ensure that the occurrence is reported without delay in the prescribed manner—
(a) to the appropriate national authority, and
(b) to such other persons, if any, as may be prescribed in relation to occurrences of that kind.
(3) A person who is required by virtue of subsection (2) to report an occurrence and who fails to do so is guilty of an offence.
(4) A person convicted of an offence under subsection (3) in England and Wales or Scotland is liable—
(a) on conviction on indictment to imprisonment for a term not exceeding 2 years, or a fine, or both;
(b) on summary conviction to imprisonment for a term not exceeding 12 months, or a fine (in England and Wales) or a fine not exceeding £20,000 (in Scotland), or both.
(5) A person convicted of an offence under subsection (3) in Northern Ireland is liable on summary conviction to imprisonment for a term not exceeding 3 months, or a fine not exceeding level 3 on the standard scale, or both.
(6) In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 (general limit on magistrates’ court’s power to imprison), the reference to 12 months in subsection (4)(b), as it has effect in England and Wales, is to be read as a reference to 6 months.
(7) Before exercising any function under subsection (1) or (2) in or as regards Scotland, the Secretary of State must consult the Scottish Ministers.
(8) Subsections (9) to (11) have effect only in relation to a prescribed occurrence which happens in Northern Ireland.
(9) The Secretary of State—
(a) may direct an inspector to make a special report with respect to the occurrence, and
(b) may cause any such report, or so much of it as it is not in the Secretary of State’s opinion inconsistent with the interests of national security to disclose, to be made public at such time and in such manner as the Secretary of State considers appropriate.
(10) The Secretary of State may direct an inquiry to be held into the occurrence and its causes, circumstances and effects.
(11) Any such inquiry must be held—
(a) in accordance with the provisions of Schedule 2 to this Act, and
(b) in public, except where or to the extent that it appears to the Secretary of State expedient in the interests of national security to direct otherwise.”.’.
Amendment 92, page 171, line 35, leave out ‘or Wales’.
Amendment 93, page 171, line 40, at end insert—
(a) in the case of a site in Wales, the Natural Resources Body for Wales;’.
Amendment 144, page 172, line 1, leave out sub-paragraph (3) and insert—
‘( ) Omit the definition of “inspector”.
( ) In the definition of “nuclear site licence” for “section 1(1)” substitute “section 1(2)”.’.
Amendment 145, page 172, leave out line 10 and insert—
‘( ) In the definition of “period of responsibility” for “section 5(3)” substitute “section 5(14)”.
24 In section 27 (Northern Ireland) omit paragraphs (b) and (c) of subsection (1).’.
Amendment 146, page 172, line 13, at end insert—
25A (1) Schedule 2 is amended as follows.
(1) In paragraph 1 for “section 22(5)” substitute “section 22(10)”.
(2) In paragraphs 1, 2, 5 and 6, for “the Minister” in each place where it appears substitute “the Secretary of State”.
(3) In paragraph 7—
(a) for “or, in Scotland, the Court of Session, and the High Court or Court of Session” substitute “and the High Court”;
(b) omit “or, as the case may be, the Court of Session”.
(4) Omit paragraph 8.
(5) For the title substitute “Inquiries under section 22(10) relating to occurrences in Northern Ireland”.
Consequential repeals and revocations
25B In consequence of the amendments made by paragraphs 16 to 25A, the provisions listed in the following Table are repealed or revoked to the extent specified—

Title

Extent of repeal or revocation

Electricity Act 1989 (c. 29)

In Schedule 16, paragraph 11.

Water Act 1989 (c. 15)

In Schedule 25, paragraph 33.

Radioactive Substances Act 1993 (c. 12)

In Schedule 4, paragraph 2.

Environment Act 1995 (c. 25)

In Schedule 22, paragraphs 7 to 9.

Energy Act 2004 (c. 20)

Section 78(1).

Energy Act 2008 (c. 32)

Section 65.

In section 112(3), the words “(other than section 65)”.

Marine and Coastal Access Act 2009 (c. 23)

In Schedule 14, paragraph 6.

The Nuclear Installations Act 1965 etc. (Repeals and Modifications) Regulations 1974 (S.I. 1974/2056)

Schedule 1, except for the entry relating to section 25 of the Nuclear Installations Act 1965.

In Schedule 2, paragraphs 1, 2, 3 and 6.

The Nuclear Installations Act 1965 (Repeal and Modifications) Regulations 1990 (S.I. 1990/1918)

In the Schedule, paragraph 1.

The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc.) Order 1999 (S.I. 1999/1750)

In Schedule 1, in the entry for the Nuclear Installations Act 1965, in column 1, in paragraph (b), the words “6 and”.

In Schedule 3, in the entry for the Nuclear Installations Act 1965, in column 1, the words—(a) “1(1)(b) and (2)”; (b) “and 22(1) and (2),”.

The Water Industry (Scotland) Act 2002 (Consequential Modifications) Order 2004 (S.I. 2004/1822 (S. 3))

In the Schedule, paragraph 5.

The Environmental Permitting (England and Wales) Regulations 2010 (S.I. 2010/675)

In Part 1 of Schedule 26, paragraph 2.

The Natural Resources Body for Wales (Functions) Order 2013 (S.I. 2013/755 (W. 90))

In Part 1 of Schedule 2, paragraph 41.’.

Amendment 147, page 172, line 22, leave out ‘not exceeding £20,000,’ and insert
‘(in England and Wales) or a fine not exceeding £20,000 (in Scotland or Northern Ireland),’.—(Michael Fallon.)
Schedule 14
Consumer redress orders
Luciana Berger Portrait Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
- Hansard - - - Excerpts

I beg to move amendment 2, page 192, line 9, leave out subsection (4).

Baroness Primarolo Portrait Madam Deputy Speaker (Dawn Primarolo)
- Hansard - - - Excerpts

With this it will be convenient to discuss the following:

Amendment 3, page 192, line 18, at end insert

‘unless one or more consumers have suffered loss or damage greater than this value.’.

Amendment 4, page 192, line 24, at end insert

‘unless one or more consumers have suffered loss or damage greater than this value.’.

Amendment 5, page 198, line 31, leave out subsection (4).

Amendment 6, page 198, line 40, at end insert

‘unless one or more consumers have suffered loss or damage greater than this value.’.

Amendment 7, page 198, line 46, at end insert

‘unless one or more consumers have suffered loss or damage greater than this value.’.

Luciana Berger Portrait Luciana Berger
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Forgive me for the delay in getting to my feet, Madam Deputy Speaker. I was expecting the Minister to go first—I am so used to coming after him.

Amendments 2, 3 and 4 to part 1 of schedule 14 relate to gas customers. Amendments 5, 6 and 7 to part 2 cover electricity consumers. We are proposing these changes for a simple reason: we need to do everything we can to protect consumers who lose out when energy suppliers break the rules. I sincerely hope that Members on both sides of the House agree about that. My right hon. Friend the shadow Energy Secretary called for a system to guarantee compensation to customers who have been ripped off as far back as October 2011, which is a year and a half ago now, so it is nice to see that the Government are finally following our advice and doing something to give redress to consumers.

20:00
We therefore welcome the fact that the Bill gives Ofgem powers to compel energy companies to award compensation. At present the regulator can only try to negotiate voluntary agreements with suppliers. We have seen in the past that they do not always deliver the best deal for people who have lost out through no fault of their own. It is good that this wrong is being corrected. However, these new powers do not go far enough.
There are two important aspects of the Bill that need to be addressed. First, it places an arbitrary cap on the amount of compensation that can be paid to customers who have been treated unfairly. Secondly, it contains a crucial loophole.
Mike Weir Portrait Mr Weir
- Hansard - - - Excerpts

On the arbitrary cap, I agree with what the hon. Lady has been saying, but it seems to me that the amendment would mean that a company faced unlimited liability for any consumer redress order that affected more than a single consumer, which could have serious implications, for instance for investment in any infrastructure that might be required. Will she address that point?

Luciana Berger Portrait Luciana Berger
- Hansard - - - Excerpts

I am expecting to hear from the Government about that, and I intend to address the point later. After I have done so, I will be happy to respond to any further questions the hon. Gentleman might have.

As I was saying, the Bill also contains a crucial loophole. The new powers would not apply to current Ofgem investigations. That is why we raised concerns in Committee, and it is why we have brought back amendments addressing the point on Report. Before I address the specific issues, let me remind the Minister why this will matter a great deal to households across the country.

Over the last few years there have been far too many cases of people being mistreated or misled by their energy providers. In April last year EDF agreed to pay £4.5 million after an investigation found it had been mis-selling to customers, and in April this year SSE was given a record fine of £10.5 million for running a sales process where people were given information that simply was not true. There are other ongoing investigations into practices at E.ON, npower and ScottishPower, and overall Ofgem is currently carrying out 15 formal investigations into potential malpractice by energy suppliers. Its enforcement team is also informally reviewing an additional 12 cases.

That is why we agree that schedule 14 represents a step in the right direction. It gives the regulator the power to order companies to compensate customers who have been misled about their energy deal and tariffs and the arrangements by which they are put on those tariffs.

None of those ongoing investigations will be covered by the new powers now being introduced, however. That means that any company found guilty of wrongdoing in any inquiry that begins or concludes today, tomorrow, next week, next month or at any time before this Bill receives Royal Assent will escape the new penalties all together. Also, if in future the regulator finds that there have been other failings by suppliers that took place before the Bill became law, those companies will avoid sanction as well.

I wonder how the Minister can think that that is right. How will it be fair to consumers who have suffered bad practice by their suppliers that they are not to receive due compensation? Amendments 2 and 5 would close this loophole and make all energy firms that break the rules fully accountable both to their customers and the regulator. I hope the Minister will agree that that is the right thing to do and support these changes.

John Robertson Portrait John Robertson
- Hansard - - - Excerpts

Does my hon. Friend agree that we have also not used the current rules properly? The fines that have been imposed of late do not even go back to the people who pay the bills. Does she agree that we should be looking to compensate the people who pay the bills, rather than give that money to the Treasury?

Luciana Berger Portrait Luciana Berger
- Hansard - - - Excerpts

My hon. Friend raises an important point. Currently, the fines that are being raised are going into the Treasury, and many questions have been asked about where that money should go.

If the Minister does not support our amendments, will he tell us what indication he has had from Ofgem as to how many of its current 15 formal investigations will conclude before these new powers are introduced, and how many consumers could miss out on compensation as a result?

Following the discussions we had in Committee, I suspect the Minister might argue that we are proposing retrospective legislation. Let me be very clear about why that is not the case. These amendments do not alter any of the regulations energy companies currently need to abide by. That is the crucial point. We are not seeking to penalise companies for something that was not against the rules at the time. Our proposals would simply ensure that customers whose providers are found to have broken the rules receive appropriate compensation, including for investigations that fall before the Bill receives Royal Assent. I hope the Minister will bear that in mind and support this change.

Turning to our other amendments, we seek to enshrine an important point of principle in the new powers: that customers who have been treated unfairly can, and always should be, fully compensated. As it is currently drafted, schedule 14 places a limit on compensation to 10% of an energy company’s annual turnover. I ask the Minister to explain what would happen if the losses suffered by customers were greater than that. How was that arbitrary figure reached—and why not 11% or 15%?

John Robertson Portrait John Robertson
- Hansard - - - Excerpts

Can my hon. Friend clarify what she means by turnover, as factors such as the central pot and whether generation is included as well make a big difference?

Luciana Berger Portrait Luciana Berger
- Hansard - - - Excerpts

My hon. Friend raises a point we on the Opposition Benches have raised many times before about the challenges we face with our very opaque energy market, where we do not know the true cost of our energy and many of our generators are also our suppliers. We will wait for the secondary legislation to hear exactly what the Government mean by that term, but it is fair to say that we are dealing a lot in this Bill with a broken market, and it is a shame that the Government are not proposing legislation to fix it.

We accept that there is a relatively small chance of a compensation package exceeding 10%, but that is not an impossibility. If a case ever did exceed that amount, it is likely that an enormous number of consumers would have been affected. It would be irresponsible for the Government not to be prepared for that scenario. In Committee, the Minister said that if consumers suffer losses greater than the compensation they receive, they will still be able to seek further redress through the courts, but surely he acknowledges it would be better not to risk that happening in the first place by amending this Bill.

Surely that would be better than abandoning consumers and leaving them to endure a long and protracted court battle to get due recompense. We believe it makes more sense to guarantee that families will always receive pound-for-pound compensation when they have been mistreated, which is why our amendments specify that compensation would be allowed to exceed 10% of turnover if

“one or more consumers have suffered loss or damage greater than this value.”

The Department’s own impact assessment said that such a change would send a powerful signal to energy firms on consumer protection. That is our priority.

This Government claim that they are on the side of consumers and today they have the chance to prove it. Our amendments put consumers first, ensuring that mistreated families will not be short-changed, no matter when they were wronged or how much they are owed. Will the Government stand up for the many? The question for the Minister and his colleagues is simple today: whose side are they on?

Lord Barker of Battle Portrait The Minister of State, Department of Energy and Climate Change (Gregory Barker)
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The Opposition amendments seek to amend schedule 14 by removing restrictions on retrospective and unlimited liability. I understand the concerns and motivations of the Opposition, but I can assure them that this coalition is also committed not only to helping hard-working families and, indeed, all consumers with the rising cost of living, but to empowering consumers and protecting hard-working families from rip-offs and scams. So although I have some sympathy with the aim of amendments 2 and 5, which are intended to allow Ofgem to compel energy companies to pay redress for events that happened prior to the enactment of this Bill, I am troubled by the effect of setting a precedent by retrospectively applying powers in the energy market and by the impact that that would have on all consumers. There is a general principle that powers should not be applied by this House retrospectively. Beyond that principle, there is potential for very real, negative impacts on consumers.

The Government are committed to encouraging competitive pressure on the big energy market players, but the regulatory uncertainty these amendments would introduce would be likely to lead to an increase in the cost of capital for energy companies, and that, in turn, could push up bills for everyone. Furthermore, it could create investor uncertainty at the very time we are trying to encourage the necessary private sector investment required to move to a low-carbon economy and renew our energy infrastructure. More expensive finance would most heavily hit the smaller companies that are also covered by this legislation—the very small companies and entrepreneurs we want to attract into the sector. Under the previous Labour Government, competition in the electricity sector shrank to leave just six big supply companies dominating it. The last thing we want to do is accept amendments that could hinder new entrants to the market.

The amendments may also lead to increases in the cost of insurance premiums for companies, in order to cover the extension of liability for events that took place prior to the enactment of this legislation—again, that is likely to be proportionately higher for smaller energy companies. All these factors could push up the cost of living for hard-working families, at a time when, as we know, many can ill afford it. I understand the intention behind the amendments, but the unintended consequences could end up hitting the very people we are trying to protect, and so we cannot accept them.

Again, I have some sympathy with the intention of Opposition amendments 3, 4, 6 and 7, which seek to ensure that the amount of compensation that can be required through a consumer redress order is not limited. As I said at the outset, the coalition Government are absolutely committed to providing a fair deal to consumers. So when considering these amendments, we should look to balance the need for a redress mechanism that allows consumers timely and proportionate compensation, with an appeal mechanism that is proportionate to the potential liability faced by energy companies.

Under existing arrangements, consumers can obtain redress through the courts, but we recognise that the legal process is lengthier and does not offer a typically quick remedy for consumers who have been badly served or ripped off. That is largely because the courts offer recourse for consumers in cases where compensation may exceed the 10% limit set in this legislation. The legal process is necessarily equal to the potential sums at stake. The powers set out in schedule 14, however, contain appeal mechanisms, proportionate to the potential penalty, limited to 10% of an energy company’s annual turnover.

20:15
John Robertson Portrait John Robertson
- Hansard - - - Excerpts

I ask the Minister the same question I asked my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger): what is classified as turnover? Does it just include retail or does it also include generation?

Lord Barker of Battle Portrait Gregory Barker
- Hansard - - - Excerpts

I will correct myself if I am wrong, but I believe we are talking about global turnover—we are talking about very significant sums. [Interruption.] This relates to the turnover of the company under investigation. [Interruption.] That was very helpful.

John Robertson Portrait John Robertson
- Hansard - - - Excerpts

Just for clarification, is “the company under investigation” the mother company as well as the subsidiary company, or does it include all the companies that that company is part of?

Lord Barker of Battle Portrait Gregory Barker
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The hon. Gentleman asks a fascinating and timely question, one which deserves a proper answer. He may have misheard me, because when I said “global turnover” what I actually meant was UK turnover. Nevertheless, that is clearly a very significant amount.

Our approach would allow for a relatively straightforward resolution of relatively simple cases. Accepting amendments to remove the cap would require us to make changes to the appeal mechanism, which could deny consumers access to the timely compensation they are due, as it could result in a far lengthier resolution of cases if the stakes are much higher. In considering whether such a trade-off is justifiable, we should take into account just how unlikely it would be for consumers to lose out on this scale. Exceeding a 10% cap of annual turnover would mean penalties and compensation of over a £1 billion for the very largest domestic energy supplier. The largest penalty imposed to date by Ofgem has been £15 million and under our legislation the cap for the largest would be set at £1 billion. A cap on redress is therefore unlikely to hinder Ofgem’s ability to impose appropriate redress orders.

In addition, there are unintended consequences of removing the 10% cap on penalty and redress, as that could also increase the costs of capital and insurance premiums for energy companies. Again, that would particularly affect the smaller companies—the very ones we are trying to attract into the sector—with all the adverse impacts on consumer bills that I mentioned earlier.

Energy companies should be in no doubt, however, that these powers are designed to ensure that consumers receive appropriate compensation. The combined 10% cap on penalties and redress will apply to each separate regulatory breach. If companies flout the rules on a number of occasions, they will therefore face correspondingly larger payouts. For the reasons I have set out, I hope that hon. Members will, on balance, agree not to press their amendments to a Division.

Mike Weir Portrait Mr Weir
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I find myself in the unusual position of agreeing with a lot of what those on both Front Benches have said. I have a lot of sympathy with the amendments and, unlike the Minister, I do not find any difficulties with amendments 2 and 5. If a company has been doing over consumers, whether it has been doing it the day before the Act comes into force or the day after does not seem to make any difference. If we are seriously considering making such companies pay such large sums for their misdemeanours, I would be happy to support those two amendments. That would send a clear message that we are fed up with some of the things that have been coming to light in recent years and with how the consumer has been mistreated, taken for granted and, frankly, milked, by some companies.

My hon. Friend the Member for Glasgow North West (John Robertson), if I may call him that, made very good points about turnover.

Lord Barker of Battle Portrait Gregory Barker
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I am grateful to the hon. Gentleman for giving way, particularly as I have only just sat down. Let me be absolutely clear on this important point. For investigations by Ofgem that are already under way, Ofgem will continue to negotiate compensation on behalf of affected consumers. Companies that fail to negotiate and agree satisfactory redress can expect Ofgem to reflect that lack of co-operation in the penalty it sets.

Mike Weir Portrait Mr Weir
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I accept that, and I understand what the Minister is saying, but he said in his speech that the maximum penalty to date had been £15 million. Under the Bill he is talking about £1 billion. There is a massive difference between the two and my point stands: if consumers have been ripped off, it does not matter whether it happened just before the new system was introduced or just after that. The same should apply, in my view, and I do not have any great problem with that proposal.

However, I have a big problem with amendments 3, 4, 6 and 7. As I said in an intervention on the hon. Member for Liverpool, Wavertree (Luciana Berger), I have a worry—the same sort of worry as the Minister—about the effect that the amendments would have on the company. It seems that one aspect of the Bill is about trying to get investment into the energy industry. For far too long there has been insufficient investment; a lot of modernisation and new investment is needed to get our energy system up to scratch. The figure is 10% of the turnover, whatever that turnover will be—I am still not clear what the word covers. That takes me back to the days when I served on the Select Committee on Energy and Climate Change with my hon. Friend the Member for Glasgow North West and we had the big six in one day and asked them about their profits. We asked whether they had made their profits selling to the consumer and they replied, “Oh no, we didn’t do that.” We asked whether they made them through generation, and heard, “Oh no, we didn’t make it from that.” We asked, “Where did you make those profits? You have large profits,” and no one could answer the question. There is great difficulty in pinning down what is meant by profit and turnover. In a time when we have six big energy companies, five of which are effectively multinational companies—we have seen in recent weeks what happens with the tax of multinational companies—we need a bit more clarity about what is meant by turnover.

Although the sums involved in 10% of turnover are significant, my bigger worry is that a company could be under investigation for an alleged breach for a considerable time. If there is a set limit, whether it is 10%, 20% or whatever, anyone thinking of lending that company money for infrastructure projects—most of them borrow from large financial institutions or other lenders—will know the contingent liability and what they are dealing with. I grant that if the liability is absolutely unlimited the sums involved are unlikely greatly to affect the big companies, given their size, but the uncertainty might well affect them. As we all know, those lending sums of money of such magnitude will consider the state of the company. A potential unlimited liability going into many billions of pounds, if there has been such an incident, could seriously undermine the company’s ability to borrow the money for much-needed infrastructure in our energy supply system.

I have a great deal of sympathy with those four amendments and understand what the hon. Member for Liverpool, Wavertree is trying to do, but I have a difficulty with them. Perhaps when she winds up she could expand on them and reassure me on the points I have made.

We must also remember that the provision would affect not only the big six energy companies but all regulated persons. If I understand correctly, that would include the small companies that are trying to get into the market. The Government say that they want to bring new entrants into the market, including the smaller companies that are beginning to nibble away at the edges of the big companies. If they were faced with such a penalty—let us hope that none of them would be—it would be the death knell for them.

John Robertson Portrait John Robertson
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The hon. Gentleman makes a very good argument and I had not thought of going down that road. Does he accept that those small companies could, through no fault of their own, follow what the large companies are doing and get themselves into bother that they did not really think about when they first started doing whatever it was that they did?

Mike Weir Portrait Mr Weir
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My hon. Friend makes an excellent point. Whereas the big six would be able to take that financial hit, many of the smaller companies would not be able to do so. These proposals would take us down a road that could have serious repercussions. Many small companies are beginning to break into the market. Many of them are particularly strong in renewables, for example, and that is one way in which much of our renewables investment might be generated in the future.

I ask the shadow Minister to think about my points. I have sympathy with the amendments and understand what they want to do. We all want to ensure that any energy company that has been mistreating consumers is dealt with severely. There are two sides to this, however, so let us not rush into doing something that could have profound and unforeseen results.

John Robertson Portrait John Robertson
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It is a pleasure to follow the hon. Member for Angus (Mr Weir). He was an excellent member of the Energy and Climate Change Committee when it was first put together and I am very sorry that he is not still a part of it—but there is time for him yet, as they say.

I agree with a lot of what the Minister said—I do not pick holes in things just for the sake of it—but it is not my place to worry about whether the big six have financial difficulties or whatever else. Personally, I could not give one jot about any of those companies. They are big enough to look after themselves and they certainly know the rules, because they know how to break them and get away with it.

I support every one of the amendments tabled by my colleagues on the Front Bench. I have no problems with them whatsoever. The only thing I have to say to the Minister is that I was slightly disappointed by his speech. He talked about hard-working families and, yes, I believe that hard-working families should always be looked at and looked after as best we can. My constituency has more than its fair share of elderly people and it has the highest percentage of single women in any constituency in the country, which probably means that most of them will be elderly. That means that they might have some difficulties that other people do not have. There are also quite a number of people who are disabled. We have found over the years that those are the people who do not complain, because they are frightened to, and who do not get the help they probably should get. Once again, we are getting to a stage when people think that their biggest bill is their electricity bill, their gas bill or both. According to some newspaper articles, people will be more worried about how they pay their fuel bills than how they pay their mortgage.

I do not worry about the big six, because they are making plenty of money, but we have to nail down what we mean by profit and turnover. Let us take EDF, a large multinational company that is to build a new nuclear power station, from which it will make a lot of money. It also has other power stations in the United Kingdom on which it makes money, and of course it is involved in retail as well, where it says it makes 2% profit. It makes some 17% to 19% profit from generation. It puts that 19% alongside the 2% when it comes to giving shareholders a dividend, but it tells Government that it is making only 2% profit. The company may therefore put up its prices—SSE did so only last October—yet these same companies are making enormous profits. They are telling people, “Invest in our company because you can get a return for your money.” That is not right.

20:30
That brings me to the point that I really want to make about being in default. The Bill is the end or start of a process. The Minister said that 19 cases are going on. Some of them will continue beyond the introduction of the Bill. Will they be judged under the old system, or will there be a “get out of jail free” card as the new Bill takes over? Will there be two different kinds of penalties running side by side?
Lord Barker of Battle Portrait Gregory Barker
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I absolutely assure the hon. Gentleman that there will be no “get out of jail free” card.

John Robertson Portrait John Robertson
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That is a very good answer, but the Minister gave an answer earlier that was found to be wrong, so I will wait for a note to come over to him.

Barry Gardiner Portrait Barry Gardiner
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I have listened carefully to the debate. Is there not in my hon. Friend’s mind, as there is in mine, a concern that we are putting on companies a financial penalty that will ultimately be borne by consumers? Should we not instead address the real problem, which is directors’ liability? It was noticeable in the recent SSE case that no criminal prosecution for fraud was brought, even though the maximum penalty was imposed. Would it not be better to impose a strict liability on the directors of the companies, so that it is not the consumer who ends up paying the fines?

John Robertson Portrait John Robertson
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My hon. Friend makes a very good point, which brings me to the next issue that I wanted to raise: what happens to the money? If we get £1 billion off a company—not that that is likely, because it would be a lot more than we get at present—or even £100 million, surely that company should have to pay that back to its consumers. It should not give it to the Treasury to spend, though I am sure it would spend it in a very nice manner. It should go towards what it was designed for: paying for electricity. That £100 million or £1 billion should go back to the customers of that company. I ask the Minister to look at that.

The Bill is a great deal better than it was when we scrutinised it on the Select Committee. Everything else about the Bill has been rushed. Look at the number of amendments tabled today, and the number of things that we are not being told—the strike price and so on. We are basically being given a promise that it will be all right on the night. We need to know what the Bill is. The Select Committee had five weeks’ scrutiny of the Bill, when normally the period is 12 weeks. Then we waited an inordinate amount of time for the Bill to come back to us. When we got it, we sent it back to the Minister and told him that it was a dog’s breakfast; it was terrible. We then got something else. It has been through Committee, and we have improved it. I implore the Minister to consider the amendments that hon. Members on both sides of the House are putting forward, and seriously look at using the best bits to improve the Bill further, because this is an okay Bill, but that is all it is; it is not good. It is probably slightly better than what we had at the start, but we still have a long way to go. I ask the Minister to consider that.

I also ask the Minister to look at the issue of people paying their taxes. We see that npower has admitted that it does not pay corporation tax. Another three of the major companies say that they do not pay much corporation tax. I am pleased to say that the two companies with Scottish links say that they do pay their corporation tax, although I would still like to look at the books.

There lies the biggest problem that we have with energy: looking at the books. What are the books? I have talked to Ofgem and to the Minister. What do the books cover? That goes back to the definition of cost and the definition of turnover. Where does the generation element come in and where does the retail element end? What happens to all the money that is made on either side of the box in the middle? That is a real problem. When billions of pounds of profit are made on one side and appear not to be counted, and billions of pounds are missing on the other side so the companies put the prices up, they keep making money but the consumers—the poor, the elderly, the disabled, the hard-working families that the Minister likes to talk about—are all suffering, and it appears that our Government do not care.

We should be doing more. We have even got to the stage where HMRC hired a gentleman called Volker Beckers, who was the chief executive of RWE npower. I bet he knows how to deal with tax for those energy companies. I hope he uses the same skill as he used for RWE not to pay corporation tax to get the same money out of the same company for HMRC.

There is much that is good in the Bill. I hope the Minister will consider the amendments moved by my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) and listen to what my friend the hon. Member for Angus said. Between us all, we will make the Bill better, but we must remember that at the end of the day it is the people who put us here that we should be looking after.

Luciana Berger Portrait Luciana Berger
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I have been listening carefully for almost an hour to the debate, and I listened carefully to what the Minister said. We on the Opposition Benches still intend to divide the House on amendments 2 and 3. Let me explain why.

I reiterate the point that I made about the number of investigations currently under way. Ofgem is carrying out 15 formal investigations into potential malpractice by energy suppliers, and its enforcement team is informally reviewing an additional 12 cases. On that basis we consider it crucial that consumer redress orders be issued in respect of contraventions that might occur before the Bill comes into force. I reiterate that that is not retrospective legislation; it just means that consumers can get the redress they deserve.

Amendment 3 protects an important point of principle. Instead of a cap on the amount of compensation that consumers can receive, customers who have been treated poorly should be entitled to receive what they are rightly due. If the Government are convinced, as I heard the Minister say, that the level of compensation would never reach 10% of turnover, whatever that definition of turnover might be, the amendments should not present much difficulty. They would take effect only if the harm to consumers was above the 10% threshold. If it is unlikely ever to reach that threshold, the cost of that risk would be relatively small, and if the level of damages were to exceed that level, surely the Government would want to ensure that customers who had been treated unfairly were properly protected.

Question put, That the amendment be made.

20:38

Division 16

Ayes: 217


Labour: 208
Scottish National Party: 4
Social Democratic & Labour Party: 1
Plaid Cymru: 1
Green Party: 1
Conservative: 1
Democratic Unionist Party: 1

Noes: 276


Conservative: 228
Liberal Democrat: 48

Amendment proposed: 3, page 192, line 18, at end insert
‘unless one or more consumers have suffered loss or damage greater than this value.’.—(Luciana Berger.)
Question put, That the amendment be made.
20:50

Division 17

Ayes: 213


Labour: 210
Social Democratic & Labour Party: 1
Green Party: 1
Democratic Unionist Party: 1

Noes: 280


Conservative: 231
Liberal Democrat: 49

Bill to be further considered tomorrow.

Business without Debate

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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delegated legislation

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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Motion made, and Question put forthwith (Standing Order No. 118(6)),
Employment and Training
That the draft Industrial Training Levy (Engineering Construction Industry Training Board) Order 2013, which was laid before this House on 25 March, in the previous Session of Parliament, be approved.—(Greg Hands.)
Question agreed to.

petition

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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21:02
Tim Loughton Portrait Tim Loughton (East Worthing and Shoreham) (Con)
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I present a petition on behalf of the residents of Lancing, West Sussex, who declare their concern about the Government’s proposals for pensions in the new White Paper on pension reform, “The single-tier pension: a simple foundation for saving”.

The petition states:

The Petition of residents of Lancing, West Sussex,

Declares that the Petitioners are appalled by the Governments proposals for pensions in the 'New White Paper on Pension Reform' - The single tier pension: a simple foundation for saving; further that the Petitioners believe it is unfair to give a pension of £144.00 to a pensioner who retires in 2017 with 35 years National Insurance Credit when pensioners today will have to remain on their current lower pension rate, many of whom will have accumulated Working National Insurance Credits of over 40 years or more; further that anyone who has drawn their state pension before 2017 will not be included in these plans and that will be a disadvantage to millions of older women who currently get less than £144.00 a week.

The Petitioners therefore request that the House of Commons urge the Government to discuss the matter of pensions for at least another 12 months and address any equality and discriminatory issues in the Pensions White Paper.

And the Petitioners remain, as in duty bound, will ever pray.

[P001182]

Timeshare Contracts

Monday 3rd June 2013

(10 years, 11 months ago)

Commons Chamber
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Motion made, and Question proposed, That this House do now adjourn.—(Greg Hands.)
21:03
Fiona O'Donnell Portrait Fiona O'Donnell (East Lothian) (Lab)
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I am grateful for the opportunity to debate the regulation of the timeshare industry. I want to start with a list of thank yous. It is appropriate that we are speaking about timeshare: I thank Ministers from the Department of Energy and Climate Change for disposing of their business so quickly that they have managed to share the time this evening more evenly. I thank the Minister and her officials for the interest they have taken in this issue. I look forward to working with them in the hope that we can find a way to solve the problems faced by the people I will be speaking about. I thank the various consumer organisations that have been supportive: Citizens Advice Scotland, Which? and the trade body of the sector, the Resort Development Organisation. Most of all, however, I would like to thank The Sunday Post, which has run a really effective campaign on the issue. That newspaper is often the subject of urban myths—according to one that does the rounds in Scotland, when the Titanic sank, its headline was “Titanic sinks. Govan man feared drowned”—but this campaign shows that those urban myths are a thing of the past.

For most people, owning a holiday home is little more than a dream, but a solution was apparently found back in the 1960s, with the birth of timeshare. Holidaymakers keen for their own slice of paradise without the full cost of owning a place abroad—something they could not afford—turned to this option. Under a timeshare agreement, individuals and families own not a whole property but the right to occupy a property for a specific period each year. Timeshares are binding, contractual agreements between owners and the company that owns and manages the property, with the owner paying a one-off fee and ongoing maintenance costs. The legal rights and obligations binding the company and owner are detailed in a timeshare agreement.

Timeshares were meant to offer families certainty and security. By investing in a property held in trust for mutual benefit, families could enjoy regular holidays in accommodation of a higher quality than that which they could otherwise have afforded. The idea of timeshare became popular, and recent figures from a European timeshare industry report show that more than 500,000 Britons own timeshares. It is a huge sector in the UK, therefore, and although much progress has been made in terms of regulation and better practice, there is still room for improvement because for many that holiday dream has turned into a nightmare.

During the boom years of the ’80s and ’90s, timeshares were often sold aggressively to tourists who were on holiday and without access to legal advice. Many contracts were not in English and deals were agreed in currencies other than sterling, meaning that maintenance fees have risen as the pound has weakened. Many timeshare owners unwittingly signed contracts that locked them and—it now transpires—their children in for life, because timeshare agreements regularly included an “in perpetuity” clause, extending the right to a property beyond the owner’s death. The only way for these timeshare owners to escape their timeshare is to sell it on, but there is little demand for second-hand timeshares, and many owners have been forced to use unscrupulous middlemen to find a buyer. Often, these issues are not reported, but they affect many families across the UK. This debate follows on the heels of scams awareness month, and it seemed an appropriate time to raise it in this place.

The Timeshare Act 1992 and the Timeshare Regulations 1997 were repealed by the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010, which came into force in February 2011. The 2010 regulations were introduced to transpose EU directive 2008/122/EC—on the protection of consumers in respect of certain aspects of timeshare, long-term holiday products, and resale and exchange contracts—which had been adopted on 14 January 2009. The directive aimed to enhance consumer rights, especially through stronger rules on the information that companies had to provide to consumers, including on the consumer’s right of withdrawal. Under the new rules, a private individual considering the purchase of a timeshare must be made aware of key information in their own language and in the standardised form. Buyers are also given rights of withdrawal, so that they can cancel a contract during a cooling-off period.

In short, new timeshares with contracts of more than a year must be sold with a 14-day cooling-off period, giving buyers a right to cancel. The seller cannot ask for any money within the 14 days, and if they do not inform the buyer about the cooling-off period, it can be extended to one year and 14 days. This is a great improvement on the previous situation, when there was a cooling-off period only if the timeshare agreement was for at least three years. Afterwards, the buyer can cancel the timeshare if the timeshare allows for it, although they may have to use a timeshare or resale company, which usually charges commission, in order to secure this.

The 2010 regulations sought to address a number of problems by extending protection to holiday products similar to timeshares, including holiday clubs, and improving consumer confidence by ensuring that important information is provided to individuals before they commit to timeshare purchases or resales. The Office of Fair Trading and trading standards officers are responsible for enforcing the regulations, which were broadly welcomed. Consumer bodies such as Which? had lobbied for increased protections. However, the regulations address problems with only certain aspects of timeshare agreements—for example, consumer rights when entering the contract. Meanwhile, issues such as termination of contracts and inheritance of rights and obligations remain regulated by national laws of European Union member states.

The EU Commission will review the application of the directive and report to the European Parliament and the European Council in 2014. I will be interested to hear whether the Minister thinks there might be an opportunity in that review to extend the remit of the regulations. The 2010 regulations indicate that policy makers recognised a need to reform the timeshare market, but protections did not address in-perpetuity contracts, which continue to affect countless timeshare owners. If the timeshare company is a member of the trade body, the Resort Development Organisation, owners can escalate complaints through an internal reconciliation process, although this may prevent future court action. There are also several bodies offering advice to timeshare owners. In addition to the 2010 regulations, the Unfair Terms in Consumer Contracts Regulations 1999 may be relevant in determining the legality of a timeshare agreement. It would be for the OFT to decide whether to investigate.

As I have looked further into this issue, it has become clear that there is uncertainty in many areas of regulation. Other than the 2010 regulations, legal protection for timeshare owners is rather ad hoc. Indeed, Citizens Advice Scotland has said:

“The Citizens Advice Service in Scotland advised consumers on more than 300 queries about timeshares in 2012/13…Citizens Advice Scotland is concerned that many consumers are still…ripped off despite recent policy improvements around timeshares.”

Although there has been a fall in complaints about timeshare companies, Citizens Advice, consumer champions Which? and BBC’s “Watchdog” have all raised concerns about timeshare agreements in recent years. As the 2010 regulations were not backdated, many timeshare owners have been left to traverse the tangled web of contract law and property rights, sometimes in the UK and sometimes overseas. Some companies allow owners to terminate timeshare agreements on request, while others provide this option only to the sick or elderly. Owners should check, with the assistance of a legal adviser or Citizens Advice, whether provision exists in their agreement.

Margaret Kaney from Bridge of Allan contacted The Sunday Post about her timeshare. She is 70 years old and bought a timeshare in Scotland with her husband in 1994. They paid £6,600 for their timeshare, and maintenance fees have risen to £1,100 annually. Mrs Kaney’s husband died over seven years ago and then she suffered a stroke, which made travel difficult. Mrs Kaney has had her timeshare up for sale for two years. Following an intervention by The Sunday Post, she was released from her timeshare and the RDO promised that most of its members allowed owners who were over 70 to leave. The Sunday Post has informed me that, despite that assurance, other owners who have asked to end their contract have been met with refusal.

The Trading Standards Institute represents trading standards officials in the UK. An official from the Trading Standards Institute commented in general terms that if a person can prove that they can no longer afford their timeshare or if the conditions under which the contract was signed have changed, they may be able to dissolve it. In practice, timeshare holders can sometimes relinquish their timeshare in exchange—for example—for one year’s maintenance fees.

Myra Murray, aged 63 and from Wishaw, inherited a two-week timeshare with her husband, Alan, from his mother, who had had it for 30 years. They continued to pay maintenance costs for 20 years, and spent £3,500 on a further week’s worth of timeshare. The annual maintenance fee is now more than £1,000. Mr and Mrs Murray used the timeshare annually, but Mr Murray died in 2011. Mrs Murray now fears years of never-ending maintenance fees. She is trapped by an in-perpetuity clause, but the company has said that the contract could be brought to an end in three years’ time if she paid £5,400 up front. Mrs Murray feels that that offer is extremely unreasonable. She is also concerned about passing the debts on to her children. Her situation is simply intolerable. However, the TSI official has said that if a timeshare owner cannot come to an arrangement and is not in financial difficulties, it is their responsibility to sell the timeshare. Until a buyer is found, they are legally bound to pay maintenance fees.

Catherine and Peter Ross from Carluke spent £5,500 on a timeshare at Moness Country Club, but were not told that they would need to save two years worth of points to get one weekend in Florida. They ended up paying over £2,500 more to get a one-week timeshare, and they currently pay £500 annually in maintenance fees. They are trapped by an in-perpetuity clause and are allowed to advertise the timeshare for sale only on the company’s website.

In addition, bogus resale companies have proliferated. A recent EU directive tightened the rules on reselling and the charges that can be levied, but The Observer newspaper revealed last year that some people who had previously used bogus resale agents were now being targeted by bogus compensation companies claiming to be able to recoup money that had been lost. That was clearly a case of double scamming. Some companies offer buy-out schemes to enable owners to terminate their agreements, but the Minister’s own Department has warned against using those schemes.

The Department for Business, Innovation and Skills has stated that consumers experiencing problems with their timeshare should be cautious before committing to sell to, or seek the help of, any company without first seeking legal advice. The Department has said that it receives reports and complaints about the trading activities of some resale companies that offer a marketing service for an up-front fee. Sales seldom take place, and additional fees are charged. I hope that the Minister will be able to tell the House this evening what action she is planning to take in response to the information that her Department has gathered.

A Member of the House of Commons, my hon. Friend the Member for Ogmore (Huw Irranca-Davies) has played a part in exposing some of these scams. In October 2010, he took part in a BBC “Watchdog” exercise to highlight the dubious business practices and aggressive selling techniques of those resale companies. He was subjected to pressure selling, and three lawyers confirmed that the company involved had broken several laws.

In-perpetuity contracts lock timeshare owners in for life. After an owner’s death, the contractual obligations may pass to their children or to another beneficiary in their will. There has been conflicting advice over the enforceability of in-perpetuity clauses, and timeshare owners would like clarity. We are hoping for some clarity from the Minister tonight, or at least for an indication of the direction of travel that she is taking on this matter.

I should like to thank the House of Commons Library for providing me with further information on the timeshare sector in the UK and overseas. It informs me that if a timeshare is jointly owned with the right of survivorship, the surviving owner should automatically become the full owner. However, if the deed reflects sole ownership, the property may be handed down to another party according to the terms of the deceased’s will, trust or other legal document that specifies who will inherit his or her estate. In effect, a person could inherit a timeshare that they do not want and cannot afford. The beneficiary can formally disclaim the timeshare if they do not want it. That allows the executor to take charge of the property instead. They may then be able to sell or donate the timeshare. The owner of an unwanted timeshare might be better off disposing of it now, rather than leaving it as a problem for his or her executors.

The Sunday Post heard from a Lothians couple who bought a timeshare in 1997—a great year—for £3,800. They have a disabled son in his 20s and they worry about his future. They would like to start saving for his care, but are faced with annual maintenance fees of £530. They say the timeshare was sold to them as an investment for their children, but it is fast becoming a frightening burden as they are again trapped by an in-perpetuity clause. Meanwhile, the newspaper heard from a lady aged 79 from South Lanarkshire who bought a timeshare from Macdonald hotels in 1990 for £7,800. She insists that the timeshare was mis-sold to her. She is struggling to pay maintenance fees of £554 on her state and small occupational pensions. In addition, she has a grown-up disabled son who lives with her. They are unable to use the timeshare; they last used it seven years ago. She asked Macdonald if she could sell it back in 2010, but it suggested letting it out. This raised only £143.

An official from the UK European Consumer Centre, which provides impartial advice for UK consumers, agreed that in-perpetuity clauses are unfair as they pass responsibilities on to people who may not want them. The ECC gets complaints from time to time from people who have inherited a timeshare and have been told that they must continue to pay the maintenance fees or legal action will be taken against them. This is despite the timeshare itself being in someone else’s name. As far as the ECC is aware, no timeshare company has actually taken legal action against a consumer and been successful, although it can rely only on the information provided to them by consumers, and it may be the case that consumers have simply not informed it. The difficulty for UK consumers is that they can argue that the contracts are unfair, but in order to get a confirmed ruling, they have to go via a court and get a judgment, which can be both time-consuming and costly.

I have been informed by an official at the UK ECC that in Spain contracts for longer than 50 years, including contracts in perpetuity, are unenforceable as they are deemed unfair. Although this ruling is beneficial to UK consumers who have agreements with Spanish companies, could the UK Government not look at adopting such a rule in the UK? I look forward to hearing the Minister’s response on that.

With the launch of their draft consumer rights Bill, the Government claim to be acting in the best interests of consumers, but owners of unwanted and costly timeshares do not see any resolution of their worries in the near future. While recent regulations have improved the standing of people purchasing timeshares, those who already own timeshares have been left to fight for their contractual rights in the courts or through industry-run reconciliation processes.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - - - Excerpts

Does the hon. Lady feel that a way forward for those who have timeshares that they cannot get out of would be for the travel companies to purchase them or adopt a system for renting them out? The hon. Lady mentioned a rental system. We all know the pitfalls of such a system, but if a company was able to do it, it might be a way of enabling some people at least to get some benefit from the timeshares they cannot get out of?

Fiona O'Donnell Portrait Fiona O'Donnell
- Hansard - - - Excerpts

I am grateful to the hon. Gentleman for his intervention. I think that is an option that needs to be looked at. The sector needs to be more responsive, creative and imaginative, but the concern in the case with the Macdonald hotels that I quoted is that it brought in only £143. It was £143 rather than nothing, but perhaps companies need to get better at advertising and pushing the sector if additional rental capacity results from an agreement with an owner. The Minister may like to respond to the hon. Gentleman’s intervention as well as to my speech.

The contracts that formed the basis of these legal disputes were signed often unwittingly and over 20 years ago, with the timeshare owners often now elderly, ill and vulnerable. They feel they have no choice but to continue paying crippling maintenance fees. I appeal to the Minister to think about these real people I have spoken about this evening and about the hardship they have been caused. Surely there has to be a way to help them. I know that the Government are not fond of regulation if they can avoid it, but we are talking about often very vulnerable people who are coming to the end of their lives and who want some peace and security; they want to know that they will not have to pass on burdens to their children. I look forward to hearing the Minister’s response.

21:24
Jo Swinson Portrait The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
- Hansard - - - Excerpts

I congratulate the hon. Member for East Lothian (Fiona O'Donnell) on securing the debate and on raising this issue. It is clear that many consumers such as those to whom she has referred are experiencing real problems. As she said, that esteemed publication The Sunday Post has been conducting a campaign. She made a small jest about the way in which some people have characterised The Sunday Post, but I would describe is as a fine publication that does a lot of great campaigning. I know that it is read by many of my constituents, and I am sure that it is read by many of hers as well.

The hon. Lady rightly pointed out that the issue involves real people, and that a number of them are clearly in an incredibly difficult position. I do not think that anyone could be unmoved by the case of Mrs Kaney, the elderly lady who was still being forced to pay £1,100 a year long after ceasing to benefit from a product that she had bought a long time ago when her husband was still alive, or by the plight of people who feel pressured into paying hundreds of pounds a year or else face a one-off cost of more than £5,000 to buy themselves out. Such costs can impose a huge burden and a huge worry on many families, particularly in these difficult times and, indeed, at any time.

I think it fair to say that the timeshare industry and service providers associated with timeshares and other long-term holiday products have had a pretty poor reputation for a long time. When I was preparing for the debate I spoke about it to some of my colleagues, and a common refrain was “Are timeshares still around?” Of course, given perpetuity contracts, they certainly are still around. Historically, companies in the sector have behaved abominably, pressurising people while they are supposed to be on holiday and trying to persuade them to buy products that they do not really want or even understand at the time. That has left a legacy of difficult issues for some timeshare owners.

Not only do timeshare contracts generally impose an annual obligation to pay maintenance fees in respect of the properties, but they can be very long-lasting. Although nowadays it is possibly more usual for timeshare agreements to specify a set period such as 10 years, and although people may indeed expect to be happy to visit a certain destination throughout the following decade, it is more difficult to predict whether in a few decades’ time a longer-term contract will still be desirable, and whether people will still be willing to accept the obligation that it involves.

No doubt when the timeshares were originally sold to people, they were assured that they would have an opportunity to sell on the contracts and that they would be worth a significant amount, but I suspect that those promises have not come to much when people have tried to sell. Some timeshare owners now find themselves with liabilities which, for one reason or another—age, altered preferences or a change of circumstances—no longer provide them with any actual benefit.

It is important to see the position in a balanced way. It is true that many thousands of timeshare owners in the United Kingdom, elsewhere in Europe, and indeed worldwide are very happy with the product and the opportunities that it provides, and it is true that, when properly sold and constructed, the product in itself need not be problematic and can be enjoyed by many people. At its best, the timeshare industry can deliver an attractive, high-end product that matches its customers’ requirements extremely well. However, it is not a product that is suitable for everyone. That is why the Department for Business, Innovation and Skills continues to recommend, despite the improved protections that have existed since 2011, that any prospective customer should always seek legal advice before accepting any kind of long-term contract that involves an ongoing financial commitment, including timeshare contracts.

I welcome the hon. Lady’s recognition that significant improvements have been made, and I shall say more about those improvements later. I think it important to note that, although the regulations came into force in 2011 under the present Government, they were formalised in 2010, and were the result of a great deal of work by the last Government and by European partners. This is not a party political issue. We all want better rights for consumers and I am always delighted to work with people across parties who are keen to achieve that, so I welcome the spirit in which the hon. Lady made her remarks. I would be happy to work with her on this.

I sympathise with the concerns that the hon. Lady raised about contracts in perpetuity or contracts that last for an incredibly long time which people no longer wish to have. Perhaps when the contracts were entered into, for many people, the idea of passing on the timeshare to family members was quite attractive but, with the elapsing of time, some consumers no longer wish to be involved in those contracts. The only way they can come out of the situation with any certainty is by pursuing the matter through the courts, which as we all understand is not necessarily an easy option or one that many people have the resources to pursue; or by negotiating with the resort operators, which can lead to wildly varying responses, as has been outlined.

The hon. Lady mentioned the UK ECC. When people inherit a timeshare and are told that they must pay the maintenance fees or legal action will be taken—despite the fact that the contract is in someone else’s name; it seems a bizarre obligation under general contract law— it is important to reiterate the point she made, which is that, as far as that organisation is aware, no timeshare company has successfully taken legal action against a consumer and won the case. That is something that many consumers who find themselves in this situation may be interested to know.

The hon. Lady mentioned the law in Spain, where many UK customers have timeshare contracts and where any contract longer than 50 years is unenforceable on the basis that it is unfair. The UK could look at such issues. In normal circumstances, we try not to intervene in individual contractual matters between two parties who can come to an arrangement that suits them. Instead we try to create a framework where the conditions under which fair and honest trading takes place are set out clearly and any imbalance in knowledge between trader and consumer can be addressed. The aim is to create a situation where consumers can make properly informed choices when they buy products and services.

The sale of timeshares, timeshare-related services and other long-term holiday contracts is an area where European-level legislation is considered necessary. We now have a wider range of protections in place. If significant evidence arises that there is general unfairness on an ongoing basis, that is something that the Government can keep under review. The evidence and the cases that the hon. Lady has presented help with that. I encourage consumer groups that have been campaigning on the issue to be prepared to put those cases together and to collect the evidence, particularly when it comes to the review in 2014, which I will come to as she asked for my views on that.

To return to what can be done to help the people who are having problems now— current timeshare owners—the trade body representing the sector across Europe, the Resort Development Organisation, makes it clear that its members recognise the damage that these legacy issues continue to inflict on an industry that is focused on moving on, developing and improving its customer service offer. They clearly have an interest in trying to improve the reputation of timeshare contracts, particularly because, often, the newer types of contract, as a result of the protections that are in place, bear little resemblance to those that were offered in the past. As a result, that organisation and its members are willing to engage with timeshare owners to try to resolve matters when ownership is impractical or unwanted, although, as the hon. Lady pointed out, that is not universally the case.

One element has not been touched on in the debate but is important. What might be the perfect solution for an individual timeshare owner who is stuck with a contract that they do not want, might have knock-on effects for people who own the other weeks of the year of the timeshare, or other properties in the resort. That is where the nub of some of the problems lies. Because the way the contracts are structured is such that there is a collective obligation to fund the maintenance and upkeep of the resort, if individual owners rescind the contracts or hand them back without them being sold to somebody else, the members who remain generally have to bear the increased costs and the burden of the lost revenues unless a new owner can be found. That might not be difficult for popular weeks, such as in the school holidays, but it can present difficulties for less attractive contracts. Many timeshare contract owners have already found that reselling is not straightforward. This is where some of the issues of individuals’ rights can rub up against one another. A huge extra burden can be placed on others without their having had the opportunity to do anything about it.

There is a body representing the interests of timeshare owners and owners’ committees which also says it is ready to assist and advise timeshare owners in difficulty who want to get rid of their timeshare contract: the Timeshare Association, also known as TATOC. It publishes a broad range of consumer guides, including a guide on timeshare disposal. It says that it is happy to engage with individuals to discuss their particular problems, and it has a track record of working with resort owners and managers to try to resolve some of the difficult issues.

I want to touch on one group that the hon. Member for East Lothian named: Macdonald resorts. At least one of the cases she mentioned was to do with Macdonald. The Scottish highlands is one of the places in the UK with a lot of timeshare resorts, and those of us who have been to conferences up in Aviemore will be very familiar with Macdonald hotels. Macdonald resorts is aware that significant concerns have been raised. The Timeshare Association has also been trying to engage the company in the issue, and I understand that a way forward has been identified for those who do not want to continue with their timeshares.

It is worth pointing out that Macdonald manages its resorts on behalf of the owners’ committees, and in these cases the owners’ committees had instructed Macdonald to take action against those who no longer wanted to pay the maintenance fees, because the remaining owners would be picking up the tab. It is important that sensitive negotiations to try to resolve such issues take place through organisations including TATOC, as competing interests are involved.

Fiona O'Donnell Portrait Fiona O'Donnell
- Hansard - - - Excerpts

Has the Minister considered a model along the lines of what we have in the travel sector, where a levy is made on companies, which is then a pooled resource that can be used when these situations arise?

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

The hon. Lady makes one suggestion about how these issues could be addressed. Clearly in addressing possible ways forward, a proper assessment would have to be made of the benefits against the cost to businesses, including businesses where these models were not being used, where there were not particular problems, or where they had been managing to resolve any issues in a much more consensual way. Without making any firm commitments, I agree that that suggestion might well need to be looked at as part of a broad range of potential solutions. It may well end up being a disproportionate response to the particular problem that needs to be addressed, but I certainly think it is worth considering.

Fiona O'Donnell Portrait Fiona O'Donnell
- Hansard - - - Excerpts

Has the Minister looked at the Spanish example and how they have managed to come to terms with that conflict of interests?

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

In the Spanish example, they also have the 50-year contract unfair term, where the contracts become unenforceable. We are dealing with different legal systems, of course, and different economic circumstances, but it is definitely worth looking to see whether any lessons can be learned from how fellow European countries have dealt with some of these issues. Also, as the directive will be up for review three years after it came into force, that presents an ideal opportunity to consider how it has been implemented both here in the UK and in other countries, and whether there is some best practice that can be shared.

Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

On the Timeshare Association, the Minister mentioned that alternatives and other options had been found for people who have timeshares. Will she elaborate on that? What is the success rate? What are those options? If they were on hand, perhaps that would help people to identify some way forward.

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

I would not want to paraphrase the entire guide to timeshare disposal, which the TA produced and which could probably say it better than I could. I can recommend that publication to the hon. Gentleman, as it would be useful for him to have a look at it. In general terms, buyers can be found for the contracts in some cases, whereas in others resort owners have a points system in a second-hand market. For example, where the owner of a timeshare contract is no longer able to access the benefits of the contract, perhaps because the location is a long distance away and they can no longer travel far because of age or infirmity, they might be able to swap the contract, through that points market, changing to a different property or a different resort much closer to home. Sometimes people are just seeking variety, because they do not want to go to the same place they have been going to for 15 years, and that can provide a helpful option to individuals in this situation. A wide range of avenues can be explored. Of course I am also looking at the issues arising from some cases where, because of age or a particular medical reason, there clearly will not be any benefit to the individual. In some of those cases resort owners have also been able to show flexibility in taking back those contracts. So a range of different routes can be explored but I certainly encourage anyone who finds themselves in that situation to make contact, because each individual case will be different and getting specific tailored advice would be helpful.

Another issue that has been raised is that of bogus resellers and, indeed, bogus compensators—we end up rolling our eyes, thinking that there will always be people who want to rip other people off. It is a sad state of affairs that we get the bogus compensators as well as the bogus resellers. It is positive to be able to report that the Office of Fair Trading has taken proceedings in the High Court in relation to some of the sales and marketing practices of Incentive Leisure Group Ltd, Personal Travel Group Ltd and others, and that legislation is already in place to tackle bogus resellers. The enforcers, who include not only the OFT, but trading standards, can obtain enforcement orders against companies under the Enterprise Act 2002. Let me give an example of how that can be used. Final enforcement orders were obtained in March 2012 against seven individuals and the companies concerned. Among other things, those orders prohibit the companies and individuals from engaging in misleading sales practices when dealing with people who want to dispose of their timeshares, and the orders require customers to be given cancellation rights in certain circumstances. So legislation and protection is in place, and it can be, will be and is enforced. That can provide reassurance, in any event.

Long-standing timeshare owners can pursue solutions through a range of avenues, even though before 2011 they did not have the revised cover of the new European directive on timeshare products. I agree with the hon. Lady that these issues can be very distressing and difficult for the people in the situation she describes. On a positive note, however, these issues should increasingly become a thing of the past, because of the new rules that are in place, to which I referred.

The agreement of the new timeshare directive in 2009 brought with it a raft of new protections to provide consumers with the tools they need properly to assess the value and detail of not only timeshare contracts, but timeshare exchange contracts and, most importantly, contracts for other long-term holiday products. Although “other long-term holiday products” is a clumsy phrase, it had to be designed because when the first directive tightened the conditions under which timeshare contracts could be sold, effectively outlawing the worst of the timeshare sales practices that were so prevalent in the ‘70s and ‘80s, these other products suddenly emerged to circumvent that directive.

The new directive was implemented in the UK by the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010, and I will give the House a few examples of how we saw the rules tightened significantly. For example, much more information needs to be provided to consumers about how the contract can be terminated, the methods by which future costs, such as maintenance charges, will be calculated, the degree to which timeshare owners have a role in decisions about future costs and detailed information about precisely what rights are provided under the contract. All that information is considered to be part of the contract. Importantly, the directive also provides the consumer with 14 days in which to consider the decision and withdraw from the contract if they decide it is not for them after all. No money can be taken from the consumer until that 14 days has elapsed.

The regime is generally recognised as a success. As the hon. Member for East Lothian said, complaints about timeshare sales have decreased markedly and the industry reports provisions such as the perpetuity clauses she mentions as such a problem are increasingly rare. I am sure she welcomes that fact. She asked about the review in 2014 and, as with any directives that are implemented, we are looking at how the provisions are working.

It is important that when there is evidence of problems in the industry, it is properly gathered together. Of course, the UK Government are in a position to communicate with the Commission on any problems that have been found. Obviously, whether any changes are needed will ultimately be for European agreement, so I encourage those campaigning on the issue not only to pull together the evidence and the case but to consider what is happening in some of the other countries in the EU in order to see whether any links can be forged with those campaigns.

For those products that do not fall under the timeshare directive, other EU legislation provides for contractual rights on the sale of services and withdrawal rights in the case of off-premises sales. Those rights still apply. Irrespective of the extra coverage provided by the timeshare regime, the EU legislation outlawing unfair contract terms and misleading and aggressive commercial practices also applies, as it does to all consumer sales.

I acknowledge that there might be no easy answers for those who have timeshare contracts—agreed, in some cases, a long time ago—in which they have discovered that provisions that did not seem to have significant consequences at the time are now a significant burden and a worry. Aside from encouraging those affected to continue to engage with the contracting parties and associations that might be able to help, I hope that I have been able to reassure the House and the hon. Lady in particular that there are now far more robust protections for consumers in the sector. The signs are positive that the new protections are working. Unfortunately, there will always be some in the market who attempt to operate outside the law, as there are in other markets, but the new regime seems in the main to be robust enough to ensure that the issues that the hon. Lady has so understandably raised tonight should not arise in the future.

Fiona O'Donnell Portrait Fiona O'Donnell
- Hansard - - - Excerpts

I sense that the Minister is drawing her remarks to a conclusion, and I wonder whether she thinks it is good enough that there should be such a diversity of response from the different companies when people seek to end the contracts in perpetuity. Is that really good enough? Should there not be one standard throughout the sector?

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

The hon. Lady makes her point very strongly. By raising the issue in the House this evening, she has done a great service in raising its profile. I am sure that the resort owners and companies involved in timeshare contracts will be following proceedings in the House with great interest. As she pointed out, in some cases resort owners were moved to, let us say, more speedy and helpful action for customers when The Sunday Post got involved and drew attention to the issues. There can be great power in highlighting to the public eye cases in which companies are not acting how people would wish them to. The reputational impact of that can be a powerful motivator.

I know that the hon. Lady is an assiduous campaigner and I am quite sure that the debate is not the end of the matter for her. I wish her well with continuing to raise the issue and am happy to engage with her and with others campaigning on the issue in the future.

Question put and agreed to.

21:48
House adjourned.

Petitions

Monday 3rd June 2013

(10 years, 11 months ago)

Petitions
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Monday 3 June 2013

Closure of Rhyl Crown Post Office

Monday 3rd June 2013

(10 years, 11 months ago)

Petitions
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The Petition of those concerned about the proposed closure of Rhyl Crown Post Office,
Declares that Rhyl Crown Post Office should remain within the Crown Network and not become a franchise. The Petitioners believe that the proposal for a franchise will severely damage the provision of services in Rhyl.
The Petitioners therefore request that the House of Commons urges the Minister of State for Business and Enterprise to protect much-loved public services.
And the Petitioners remain, etc.—[Presented by Chris Ruane, Official Report, 21 May 2013; Vol. 563, c. 1200.]
[P001180]
Observations from the Secretary of State for Business, Innovation and Skills, received on 29 May 2013.
The Government note the views of customers who access Post Office services at Rhyl Post Office branch, which is currently directly operated by Post Office Ltd, and is known as a Crown branch.
The Government note that the implementation of the Crown Transformation Programme is an operational matter which is the responsibility of senior management at Post Office Ltd. The Government, as shareholder, do not play any role in decisions relating to individual post office branches. In considering the future provision of Post Office services in Rhyl, it is important to note the wider context of Post Office Ltd’s proposals to franchise 70 Crown post offices and to merge or relocate a small number of other Crown branches.
The Government note that the 2010 Spending Review contained a clear commitment to modernising the post office network and safeguarding its future, and allocated a £1.34 billion funding package to provide for significant investment across the post office network. A condition of this funding package requires Post Office Ltd to continue to maintain a network of at least 11,500 branches, to comply fully with the access criteria, and with no programme of branch closures.
The Government note that the 373 branches of the Crown network have incurred heavy and historic losses, totalling £46 million in 2011-12. Eliminating these Crown losses is a key element of Post Office Ltd’s strategy to provide for the long-term sustainable future of the network, and the Government support the business in delivering that strategy.
The Government note that the current losses incurred by the Crown network contribute to a third of the losses sustained by the network as a whole and this is not sustainable. No business, including the Post Office, can continue with a situation where some of its high street branches cost substantially more to run than they generate in revenues. In the case of the Rhyl Crown branch, it costs £1.61 to generate every £1 of income.
The Government note that within its broader strategy for eliminating these unsustainable losses and achieving break even for the Crown network by 2015, Post Office Ltd has identified a group of branches where it sees no prospect of eliminating the losses at a local level under the current operating and cost structure. The precise reasons will vary from location to location but commonly include factors such as high property costs and sub-optimal location to attract the necessary increase in custom and business to make them profitable.
The Government note that Post Office Ltd has however made clear that, under each franchise proposal, the full range of post office services would continue to be available in close proximity to the existing Crown branch; and, in the event that a suitable new retail partner cannot be found. Post Office Ltd has given a commitment that a post office service will be retained within the area. Furthermore, before any changes are made to the existing service provision in Rhyl, there will be a six-week local public consultation under the terms of a Code of Practice agreed between the Post Office Ltd and Consumer Focus. The public consultation focuses on specific and detailed proposals for relocating the service provision, including such matters as ease of access, and responses are carefully considered by Post Office Ltd before a final decision is reached.

Decision of the Medical Practitioners Tribunal Service

Monday 3rd June 2013

(10 years, 11 months ago)

Petitions
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The Petition of the patients and community of Northallerton,
Declares that the Petitioners are outraged by the decision made by the Medical Practitioners Tribunal Service to ban Doctor Derek Keilloh from practising medicine; further that Doctor Keilloh is a much admired, respected and caring professional and has served the Community of Northallerton for almost 10 years with dedication, humility and humanity.
As new statutory rules governing the MPTS procedures are expected to be approved by Parliament in 2013, we call into question the MPTS (GMC) policy of being able to erase a Doctor on probability and supposed public interest rather than any clinical failing, and suggest the support this Petition has received shows otherwise. The Petition was originally addressed to the Medical Practitioners Tribunal and achieved 1034 signatures and we trust that this shows enough public opinion to interest the House.
The Petitioners therefore request that the House of Commons acknowledge and investigate a sanction which they believe was too harsh.
And the Petitioners remain, etc.—[Presented on 21 May 2013; Official Report, Vol. 563, c. P5-P6.]
[P001181]
Observations from the Secretary of State for Health:
The General Medical Council is an independent statutory body, directly accountable to Parliament. The Department or its Ministers cannot become involved in individual cases. Doctors have a right of appeal to the High Court (Court of Session in Scotland) against any decision by a panel to restrict or remove their registration.
The General Medical Council is seeking to improve and modernise its fitness to practise adjudication processes, to enhance independence of adjudication whilst continuing to protect patients and the public. This includes the establishment of the Medical Practitioners Tribunal Service, to run the CMC’s fitness to practise hearings.
The Department is developing the legislation to formally set up the MPTS in co-production with the GMC. The legislation will make the necessary changes to the Medical Act 1983, through an Order under s60 of the Health Act 1999. This will be debated in both the Commons and the Lords.

Bedroom Tax

Monday 3rd June 2013

(10 years, 11 months ago)

Petitions
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The Petition of residents of the UK,
Declares that the Petitioners believe that the spare room subsidy or 'bedroom tax' is an unjust and immoral tax on the most vulnerable in society.
The Petitioners therefore request that the House of Commons urges the Government to abolish this tax.
And the Petitioners remain, etc.—[Presented by Nic Dakin, Official Report, 20 May 2013; Vol. 563, c. 1022.]
[P001178]
Observations from the Secretary of State for Work and Pensions:
The Government believe that those on Housing Benefit in the social rented sector should face the same choices about where to live as those living in the private rented sector. That is why we have removed the spare room subsidy in the social rented sector by restricting the amount of Housing Benefit paid to working age social sector tenants who live in a property that is too large for their needs. This is not a tax on bedrooms, but rather a reduction in the level of state support for housing costs for those who under occupy.
The Housing Benefit bill must be brought under control. It has increased by around 50% in real terms over the last decade and in 2012-13 expenditure was estimated at around £24 billion. The Government cannot expect taxpayers to continue to underwrite people’s housing costs regardless of the size of their accommodation. People receiving Housing Benefit who wish to remain in accommodation that is larger than their household requires need to fund part of the cost themselves.
The Government believe that it is neither affordable nor fair that there are approaching 1 million extra rooms being paid for by working age Housing Benefit at a time when almost quarter of a million people are living in overcrowded accommodation and there are approaching 2 million on social housing waiting lists in England alone. Over time the removal of the spare room subsidy will encourage more effective use of social housing stock and a more strategic approach in both the allocation of property and, in the longer term, building programmes, ensuring more appropriately sized accommodation for demand. It is in the interests of both social landlords and tenants to ensure a better match between housing need and the size of accommodation provided.
The Government have already trebled funding for Discretionary Housing Payments and from 2013-14 has added a further £25 million specifically aimed at disabled people under-occupying significantly adapted accommodation in the social rented sector. We believe this to be a more flexible and cost-effective approach which will enable local authorities to provide additional support, such as allowing extra time for vulnerable people to find suitable alternative accommodation as well as providing longer term support for those living in significantly adapted accommodation.
The Government have no plans to change the removal of the spare room subsidy.

Written Ministerial Statements

Monday 3rd June 2013

(10 years, 11 months ago)

Written Statements
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Monday 3 June 2013

ECOFIN

Monday 3rd June 2013

(10 years, 11 months ago)

Written Statements
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George Osborne Portrait The Chancellor of the Exchequer (Mr George Osborne)
- Hansard - - - Excerpts

A meeting of the Economic and Financial Affairs Council was held in Brussels on 14 May 2013. Ministers discussed the following items:

Banking Recovery and Resolution

There was a state of play discussion on the banking recovery and resolution directive proposal, focusing in particular on the design of the bail-in tool.

Current legislative proposals

The presidency updated Ministers on the revised rules for markets in financial instruments directive/regulation (MiFID/MiFIR); the market abuse directive; the transparency directive; the mortgage credit directive; banking supervision; the capital requirements directive IV; and the anti-money laundering directive.

Draft Amending Budget No 2 to the General Budget 2013

ECOFIN reached a political agreement on the draft amending budget No 2 to the general budget 2013, on the basis of a proposal from the Irish presidency. ECOFIN agreed in principle to a first stage budget amendment and to consider a second stage amendment later in the year. ECOFIN declared to formally adopt its position on the draft amending budget at a later stage in parallel with the conclusion of talks on the EU’s multi-annual financial framework (MFF) for 2014-20. The UK, along with Denmark, Finland, the Netherlands and Sweden, opposed the amendment and statement, expressing dissatisfaction at the Commission’s unjustified request for substantial additional resources.

Savings taxation and mandate for negotiations of amendments to the Savings Taxation agreements with third countries

ECOFIN adopted a mandate for the Commission to negotiate amendments to the savings taxation agreements with third countries. ECOFIN also discussed a proposal for a Council directive amending the EU savings directive which will be further discussed at the May European Council.

Council Conclusions on tax evasion and fraud

ECOFIN adopted a set of Council conclusions on the Commission’s action plan to tackle tax fraud and evasion and accompanying two recommendations on good governance in tax matters in third countries and on aggressive tax planning. The conclusions support efforts at national, EU, G8, G20, OECD and global levels on automatic exchange of information and on improving the implementation and enforcement of standards of beneficial ownership information.

G5 Pilot Facility on automatic exchange of information in the area of taxation

The UK, on behalf of the other members of the G5 (France, Germany, Italy and Spain) presented to Council on the G5 pilot multilateral automatic exchange of information facility. The UK, along with 16 other member states submitted a joint minute statement, strongly supporting the initiative for a pilot of multilateral automatic information exchange based on agreements with the US, and requesting the Commission to support and promote the work of the OECD, G8, and G20 in developing a single global standard for automatic exchange of information, with a view to its quick implementation also at EU level.

Macro-economic Imbalances Procedure: In-Depth Reviews

ECOFIN adopted Council conclusions on the results of the UK and 12 other member states’ macro-economic imbalances procedure: in-depth reviews. The UK does not have an excessive imbalance and does not need to take further action under the macro-economic imbalances procedure. The UK supports the macro-economic imbalances procedure as a means of strengthening European economic governance, particularly in the euro area.

Towards a deep and genuine Economic and Monetary Union: Commission communications

The Commission presented the two communications on a deep and genuine economic and monetary union which were published on 20 March. These cover the introduction of a convergence and competitiveness instrument and ex ante co-ordination of plans for major economic policy reforms.

Follow-up to the G20 Finance Ministers and Governors (18-19 April) and IMF/World Bank (19-21 April) 2013 Spring meetings in Washington. USA

The presidency and the Commission debriefed Ministers on the main outcomes of the G20 Finance Ministers and Governors and IMF/World Bank spring meetings.

Departmental Work Whitsun Recess

Monday 3rd June 2013

(10 years, 11 months ago)

Written Statements
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Lord Pickles Portrait The Secretary of State for Communities and Local Government (Mr Eric Pickles)
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I would like to update hon. Members on the main items of business undertaken by my Department since the House rose on 21 May 2013.

Getting Britain building

When the coalition Government came to power we inherited a paralysed housing market where house building had collapsed. Three years later we are now seeing signs of steady improvement, with housing supply now at its highest since the end of the unsustainable housing boom in 2008 and the numbers of first-time buyers are at a five-year high.

This Government are determined to get Britain building and make better use of existing land. In last year’s autumn statement, we outlined the delivery of at least 50,000 new homes in large, locally supported housing programmes. We are making strong progress.

On 22 May, my Department announced £32 million funding for the new town of Sherford, near Plymouth, that will bring forward the delivery of 5,500 new homes and help create 5,000 local jobs. Over the next 15 years the development will deliver a powerful boost to the local economy, generate £1 billion of construction investment and inject a further £2 billion into the local area.

The investment in Sherford will bring the total number of homes unlocked through the programme to 41,000. This intervention builds on the deals made for a 6,300 home site at Cranbrook near Exeter, a 6,000 home site at Fairfield near Milton Keynes, and a site for over 22,000 homes at the Eastern Quarry development near Ebbsfleet in Kent. A further £234,000 of funding for the Cranbrook development was also announced today, to help local partners deliver the project.

Backing locally supported projects is in strong contrast to the last Administration’s failed top-down eco-town programme which failed to build a single home.

The Government are also taking other steps to bring more developed land into use. It has already sold enough formerly used surplus public sector land to deliver 33,000 new homes.

Promoting local growth through Enterprise Zones

On 29 May, together with the Mayor of London, I unveiled details of a £1 billion deal that will turn London’s Royal Dock enterprise zone into the capital’s next business district, forging new trade links with China and other economies in the Asia-Pacific region and securing billions of pounds of inward investment in the UK economy.

Historically the trading heartland of the capital, the deal will reinstate the Royal Docks as a commercial and trading centre for the 21st century, delivering around 20,000 full-time jobs and boosting local employment in Newham by 30%. When complete the site will become London’s third business district and, according to initial projections, be worth £6 billion to the British economy, generating £23 million in business rates annually and acting as a catalyst for further development in the area.

In addition to this five enterprise zones are also receiving £24 million to tackle traffic bottlenecks and road congestion near their site through Department for Transport funding.

Across the country, enterprise zones are stimulating job creation and economic growth in different parts of the country with their special package of incentives to attractive new business ventures. They have already generated 105,000 square metres of new commercial floor space and secured almost £229 million of extra private sector investment.

New rights for park homes residents

On 27 May, my Department marked new laws to give park home residents the protection they need from unscrupulous site owners. The new rights will remove site owners from the park home buying and selling process, meaning that residents cannot be forced to sell, or be prevented from selling, their park homes to fill the landlord’s pocket and it will also be harder to impose unexpected charges or changes of rules.

We have also given more power to local authorities to enforce breaches, making it easier to prosecute a site owner who harasses residents. My Department has also launched a new national helpline, operated by the Leasehold Advisory Service for residents to get advice on their rights when selling or gifting their home.

Making the planning system more responsive

On 3 June, my Department published new measures to make the planning process work better. They simplify the requirements around design and access statements, and remove the need for councils to list their reasons for granting planning permission on decision notices. These new measures will come into force on 25 June.

We also published further details of our plans to help speed up planning decisions with the small number of councils consistently failing to meet their statutory requirements. Planning is a quasi-judicial process, and justice delayed is justice denied.

As already announced, recess marked the commencement of our change of use planning reforms which will make it easier for empty and redundant buildings to be brought back into public use.

Love your Local Market

The Government are committed to helping high streets regenerate and thrive, and as part of our response to Mary Portas’ high street review we worked with the industry to set up the “Love Your Local Market” campaign.

Over a period of two weeks from 13 May to 27 May over 3,500 events were held across England by nearly 700 different markets, offering opportunities for around 2,800 aspiring traders. Love Your Local Market 2013 also offered an opportunity for young people to get onto their local market to try out their business ideas and over 200 entrepreneurs traded through the National Market Traders Federation’s “First Pitch” scheme over the fortnight. Of these, 100 will be helped to trade for a further 12 months—offering a real legacy from this year’s event.

Challenging extremism

Following the tragic and chilling events in Woolwich, I outlined my views and approach in an article in The Sunday Telegraph. A copy has been placed in the Library of the House.

The only way is Wessex

In April, my Department formally acknowledged the continuing role of England’s traditional counties in English public life. Previously, many parts of Whitehall and municipal officialdom have shunned these counties, many of which date back over a thousand years of English history. On 25 May, my Department flew the flag of Wessex as part of our broader programme of recognising and celebrating the traditional institutions of England.

Flags are a symbol of local and national pride and heritage and we have already amended the law to make it easier to fly flags without a permit from the council. I was pleased to see that misjudged decisions by Radstock town council in Somerset and the Places for People social landlord in Preston to ban the St George’s flag have been reversed.

Recent events remind us that we are stronger as a society when we celebrate the ties that bind us together and we challenge the politics of division. Whatever one’s class, colour or creed, we should have pride in Britain’s local and national identities.

Copies of the associated documents and press notices for all these announcements have been placed in the Library of the House.

General Affairs Council

Monday 3rd June 2013

(10 years, 11 months ago)

Written Statements
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David Lidington Portrait The Minister for Europe (Mr David Lidington)
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I attended the General Affairs Council (GAC) on 21 May in Brussels. The GAC was chaired by Eamon Gilmore, Foreign Minister for the Republic of Ireland. The focus of the GAC was the multi-annual financial framework (MFF), the preparation for the 22 May European Council and the preparation of the 27 and 28 June European Council, as well as short discussion on the follow-up to previous European Councils.

Multi-annual Financial Framework (MFF), Draft Amending Budgets

The Irish presidency gave a presentation on the progress made in the “trilogue negotiations” following an informal meeting which took place on Monday 13 May. This part of the General Affairs Council has been recorded and posted on the European Council’s website http://www.consilium.europa.eu/council/open-sessions/related-documents?debateid=1976&lang=en.

The Irish presidency informed the GAC that despite securing agreement for an amendment to the annual budget for 2013, which would allow an increase of €7.3 billion, this deal had been rejected by the European Parliament. The agreement was for the “Draft Amending Budget 2”, part of a package of amendments to the European Union budget which enable the Commission to move money within the ceilings to meet reprioritisation needs. The Chancellor of the Exchequer opposed the €7.3 billion deal as there has been insufficient evidence provided that these funds are required. The connection of this issue to the negotiations of the multi-annual financial framework (MFF) has slowed progress towards the final agreement of the MFF which could have implications on member states budgeting and financial planning for 2014, when the next MFF is due to commence.

I made it clear that these delays, are now putting pressure on the timetable for finalisation of the MFF. We are very keen for the European Parliament to agree to the deal reached at the February European Council, but we are not prepared to pay any price. The inconsistent demands of the European Parliament have led to an erosion of trust and as such our position is becoming less, not more, flexible. This view was echoed by others around the table and there is clear consensus on the need for the European Parliament to take the negotiations seriously and to make requests that are consistent with the clear boundaries of what the Council is able to accept, outlined in the February European Council conclusions.

22 May European Council preparation

The focus of the 22 May European Council was on tax evasion and avoidance, and energy. There was additionally a discussion on Syria.

I welcomed the forthcoming discussion by leaders on tax given the focus on this subject by the G8, of which we currently hold the presidency. I emphasised that such a global problem requires a global solution which would be of enormous benefit to the EU; there was no point in addressing evasion and avoidance at EU level if the problem simply moved to third countries.

The EU however could play a leading role in supporting a single global standard of automatic exchange of information. Agreeing the amended savings directive would be a signal of the European Union’s intent. Other Ministers outlined their priorities for areas of work that should be given the greatest focus, but overall there was a consensus for work to be advanced in this area and the ground was laid for a constructive discussion at leaders’ level at the European Council on 22 May.

On energy, a number of member states, with varying degrees of ambition, wanted a greater emphasis on the ending of energy isolation and stronger interconnections. We argued that the answer at the EU level should be to ensure the right conditions are in place for competitive, liquid markets through full implementation of single market legislation. We also need a sensible policy framework to enable investment.

27-28 June European Council preparation

The presidency introduced the annotated draft agenda for the June European Council, which will focus on economic and monetary union (EMU) and economic growth. The General Affairs Council will return to more detailed preparations of this at its meeting in June.

Report on the Implementation of European Council conclusions

The Irish presidency presented a report on the follow-up and implementation of European Council conclusions. In part this was due to previous requests I have made for the General Affairs Council to play a greater role in the follow-up of European Council conclusions. The UK has been pushing an ambitious EU reform agenda and greater oversight by the General Affairs Council helps to enable us to keep up the momentum on this work.

Post-2015 Development Framework

Monday 3rd June 2013

(10 years, 11 months ago)

Written Statements
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Justine Greening Portrait The Secretary of State for International Development (Justine Greening)
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In May 2012 the Prime Minister was invited by the UN Secretary-General to co-chair the high-level panel on the post-2015 development agenda, alongside the Presidents of Indonesia and Liberia. The panel was tasked with providing recommendations on successor goals to the millennium development goals (MDGs).

The high-level panel concluded its work last week and I represented the Prime Minister at the final meeting in New York. The 27-member panel included representatives from Government, business and civil society from all regions of the world. Their bold and optimistic report states clearly that we can and must eliminate extreme poverty by 2030. The Prime Minister helped steer the panel to a consensus on the five transformational shifts required to achieve this visionary aim:

1) Leave No One Behind—The MDGs aimed to halve extreme poverty (defined as people earning less than $1.25 a day). The high-level panel report proposes ending poverty by 2030. It also proposes eliminating preventable infant deaths and reducing maternal mortality even further.

2) Put Sustainable Development at the Core—For decades, the environmental and development agendas have been separate. The report brings them together. This means tackling climate change, and making patterns of consumption and production more sustainable.

3) Transform economies for jobs and inclusive growth—Growth is the only long-term solution to end poverty, meaning a much greater focus on promoting jobs through business and entrepreneurship, infrastructure, education and skills, and trade.

4) Build peace and effective, open and accountable institutions for all—Peace and good governance are not optional extras. Responsive and legitimate institutions should encourage the rule of law, property rights, freedom of speech and the media, open political choice and access to justice.

5) Forge a new Global Partnership—Poverty eradication is not just about national Governments. Businesses, community groups, donors, local governments and others all need to work together to see the eradication of extreme poverty.

The panel proposed 12 measurable goals and 54 targets for the international community to rally around to implement these five big ideas.

The final set of post-2015 goals will be negotiated between Governments in the UN over the next two years. The high-level panel’s report provides a bold and practical illustration of how an ambitious and wide-ranging agenda can be brought together in a simple and compelling set of goals. The UK will work with others to ensure that the messages contained in the high-level panel report are reflected in the final set of UN development goals for post-2015, and have a lasting impact for the poorest people in the world.

For the convenience of Members, I am depositing a copy of the report in the Libraries of both Houses.

Grand Committee

Monday 3rd June 2013

(10 years, 11 months ago)

Grand Committee
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Monday, 3 June 2013.
15:30

Licensing Act 2003 (Descriptions of Entertainment) (Amendment) Order 2013

Monday 3rd June 2013

(10 years, 11 months ago)

Grand Committee
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Considered in Grand Committee
Moved by
Lord Gardiner of Kimble Portrait Lord Gardiner of Kimble
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That the Grand Committee do report to the House that it has considered the Licensing Act 2003 (Descriptions of Entertainment) (Amendment) Order 2013.

Relevant document: 1st Report from the Joint Committee on Statutory Instruments.

Lord Gardiner of Kimble Portrait Lord Gardiner of Kimble
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My Lords, in 2011 the Government launched a consultation that examined the regulatory regime for entertainment licensing under the Licensing Act 2003. The consultation looked at removing any regulation that unnecessarily restricted creativity, community expression, sporting participation and economic growth. The Government listened carefully to the views received through the consultation and we announced our new policy in the other place on 7 January this year and in this House on 8 January, taking information received through the consultation into careful account.

The order before us today provides the first element of the reform package, which has been widely welcomed by the creative, community and charitable sectors. It addresses reforms to the areas of performance of plays, exhibitions of dance and indoor sport.

In the Government’s response to the consultation, we explained that there was a general consensus that these three areas could be deregulated as there was nothing intrinsic to these activities that required regulation that is not already adequately dealt with through other legislation. The Government listened carefully to the views in the consultation that asked for an end point to performance and that large events were not deregulated. These two key points have been addressed in the new policy and were set out in the Written Statement of 7 and 8 January.

The order before us is therefore relatively straightforward. It removes the need between 8 am and 11 pm for licences for public performances of plays, exhibitions of dance and indoor sport up to a reasonable audience cap of 500 people for plays and dance and 1,000 people for indoor sport. Where any of these activities involve the supply of alcohol, licensing requirements for such sales will continue to apply.

We see no reason why plays, dance and indoor sport, which are so often run by local community groups or charities, should need a licence. The Government have received many representations about harmless public performances that have been needlessly disrupted under the 2003 Act. For instance, Punch and Judy shows have been regarded as a performance of a play and therefore subjected to unnecessary bureaucracy, school plays have been cancelled and community dance performances have been hindered. This order will help to bring common sense to the licensing framework for local events and should remove some of the costs and bureaucracy that sap the will of volunteers and soak up often scarce financial resources.

It is interesting that the Voluntary Arts Network said of the proposed measures:

“The … burden of entertainment licensing … has in recent years been a major obstacle to voluntary arts groups putting on small local events and performances. The complexity and cost of regulation intended for much larger-scale events has had a detrimental effect on the tens of thousands of volunteers who give up their own free time for the benefit of their communities”.

Arts Council England said:

“As a result of de-regulation, small companies and artists will be better placed to develop and present their work ... Small venues will also be more disposed to support plays”.

The Government chose the limit of 500 people for plays and dance performances as the existing limit for temporary event notices is 499 under the 2003 Act. This limit has for many years had no mechanism for additional controls on events and, indeed, very few problems have occurred. For indoor sports a higher audience cap of 1,000 people was chosen, as most venues that host public sports activities are held in purpose-built arenas and the events are usually developed in partnership with the local authorities.

Many licensing authorities told us that their only action on indoor sport was to regulate swimming galas held in local council swimming pools, which are already clearly regulated by, and subject to, ongoing risk assessment under health and safety law. This is clearly a case of regulating the same subject twice.

This order also clarifies that where a contest or exhibition combines boxing or wrestling, which will remain licensable, with one or more martial arts to create a combined fighting sport, this activity is licensable as a boxing or wrestling activity. The Government wanted absolute clarity on this point in the context of removing regulation on indoor sporting events. It is right that boxing and wrestling activities should stay regulated, and responses to the Government’s consultation were fully in support of this policy.

This is a sensible deregulation of activities that should not have been caught by the Licensing Act. The Government’s view is that safeguards put in place under alcohol controls, planning law, fire, health and safety and other legislation such as the Theatres Act means that it makes sense to remove these activities from regulation. The removal of this cost and bureaucracy from community life will play a part in helping to sustain cultural and sporting activities in England and Wales.

Lord Clement-Jones Portrait Lord Clement-Jones
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I thank my noble friend the Minister for that introduction to the SI. As he will be aware, I am in general a strong supporter of arts and entertainment deregulation. A little over a year ago we were celebrating the success of a five-year campaign to deregulate the performance of live music in small venues under the Licensing Act, dating back to the recommendations of the Live Music Forum of 2007 with the passing of the Live Music Act. That success was a tribute to a great many individuals, and not least to the strong co-operation between the DCMS itself and Ministers and officials.

UK Music, which with help from the Musicians’ Union and others helped to push through the Live Music Act, believes that the new legislation has the potential to create a major economic impact, with thousands of musicians who can add to the £1.5 billion currently earned by the live music sector. I was delighted that the MU published a live music kit when the Act came into force that is a comprehensive guide to hosting and promoting live music.

The key now is to ensure that there is an accurate way to measure the economic and creative impact of the new Act. Research commissioned by UK Music will help to provide some of these answers. The creative and artistic benefits of the new Act will take time to work through the system, but I hope that in a year or so no one who loves music, and live music in particular, will be able to argue that deregulating the performance of live music has been anything but good for the grass-roots scene, and indeed for the community as a whole. I very much hope, therefore, that the same will be true in other areas of deregulation of entertainment.

While the Live Music Bill was going through, as the Minister has explained the Government themselves published their own deregulation proposals in September 2011. The proposal was to deregulate all regulated entertainment of a similar description to live music, recorded music or dance and entertainment before audiences of over 5,000, except boxing, wrestling and adult entertainment. That meant that between 8 am and 11 pm most performances of a play, exhibitions of a film, indoor sporting events and so on would be exempt from Licensing Act regulation. The aim of the proposals, in the words of the consultation, was to,

“improve the quality of life for all through cultural and sporting activities, support the pursuit of excellence, and champion the tourism, creative and leisure industries”.

Those are all extremely important aims.

In seeking to reduce the overall burden of regulation faced by smaller organisations, the Government also wished to encourage the performance of music, dance and sport and to encourage community creativity and expression—all much to be desired. In most cases, as the Minister said today, the consultation rightly asserted that adequate protections against potential problems were already provided by existing legislation, such as the Environmental Protection Act 1990, the Anti-social Behaviour Act 2003 and the Noise Act 1996. As the Minister also stated, licence conditions would still apply and be used for premises licensed to sell alcohol. The threat and use of review powers under the Licensing Act 2003 will provide sufficient protection to communities.

The consultation sought views on the proposed regulation of capacity under 500, but mentioned that the police preferred a 499 limit. We all recognised that these were, to say the least, very radical deregulatory proposals. If implemented they would have had a significant effect and in some cases unintended consequences. Although I am in favour generally of deregulation, I am glad to say that rather less radical views prevailed. Following the end of the consultation, as my noble friend said, the Government, in January 2013, published their response and proposals. They proposed deregulating these events between 8 am and 11 pm for those hosted by local authorities and educational establishments, and for others, in the case of an audience of up to 500, except for indoor sporting events, where the audience is limited to 1,000, and films, where partial regulation will continue to ensure age classification.

As the Minister described, I am delighted that we now have before us the draft SI, which implements that proposal, which I wholly support. However, clearly the DCMS is still not a boxing, martial arts or wrestling fan—they remain regulated. Greco-Roman wrestling at first was going to be exempt but now seems caught up in continuing regulation. Is that correct? Can the Minister give the Committee some explanatory background to this distinction?

The consultation response in January also said that the audience limit for exemptions under the Live Music Act will be raised to 500, which was great news. I hope my noble friend can tell us when we can expect that change to be introduced and what mechanism will be used to effect the change in the provisions of the Live Music Act. What other consequential changes arising from the policy announcement in January will need to be made and by what mechanism will they be made? I look forward to the Minister’s reply.

Baroness Jones of Whitchurch Portrait Baroness Jones of Whitchurch
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My Lords, I thank the Minister for his very helpful explanation of the background to this order. I also make it clear from the outset that we very much support the intention set out in the order. The local licensing of community arts, sports and music events has been too complicated for far too long. That is why we were also pleased to support the Private Member’s Bill of the noble Lord, Lord Clement-Jones. I am pleased to be able to commend him in person on his move.

There is no doubt at all that the Live Music Act sent a strong message of encouragement to local artists and musicians who were finding it impossible to find a venue to perform in and that it has gone a great way to alleviate that problem. However, that highlights the fact that this order tackles only a small part of a complicated local licensing arrangement that has made life difficult for performers and community organisations alike.

Obviously, by its very nature, secondary legislation tends to be implemented on a rather piecemeal basis, but it would be helpful to know how this fits into the grander plan to update the licensing laws and the rules governing local live performances, building perhaps on the question asked by the noble Lord, Lord Clement-Jones. Can the Minister shed a little more light on the review of film performances, which are not included in this order but which I understand are still under consideration? In other words, can the Minister clarify what further measures will be presented before this House in due course as part of the bigger review of the licensing arrangements and where the details of that can be found?

15:45
Having said that, within the limits of their scope we believe that the proposals strike the right balance between facilitating more live community arts performance on the one hand and wider public safeguarding and protection on the other. We believe that the timeframe of 8 am to 11 pm is about right, as is the size limit of 500 people. This should more than adequately cover the attendance expectations of most local events, particularly those organised by volunteers, who found the existing licensing rules particularly onerous.
The impact assessment quite rightly identifies the main areas of risk as public safety and noise pollution, and these cannot be ignored. In particular, outside events featuring overamplified live music could become a real noise nuisance to local residents, so local councils and the police will need to be alive to the separate regulations already governing noise complaints. It is not clear from the changes how the police and local councils would receive early warning of a proposed event if the licensing laws are changed in the way that we have been discussing. Without prior knowledge, it is hard to know how they would be aware that an event is taking place so that they could police it rather than waiting for complaints to come in after the event. Perhaps the Minister will shed more light on this.
I accept the premise of the impact assessment that the worst culprits are likely to be events selling alcohol, which remain unaffected by the relaxation of these rules. That is why we welcome the intention to review the implementation of the regulations and pick up any unintended consequences within a sensible timeframe.
The rules regarding community events can be unexpectedly fraught and contentious. I have no doubt that previous Governments thought that they were addressing real local issues when they introduced the licensing Acts in the first place. It is not a perfect science, and we need to keep the arrangements under review, but it is right that we support these changes at this time, and I hope that they will provide new opportunities for local culture to thrive.
Lord Gardiner of Kimble Portrait Lord Gardiner of Kimble
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My Lords, we have had a short but excellent debate on the value of this order and the issues involved. Before I address the points that have been made, I want to place on record the Government’s thanks to all those who responded to the consultation on this issue, which contributed extremely positively to the order we are discussing.

I am most grateful for the support expressed by the noble Baroness, Lady Jones of Whitchurch, and my noble friend Lord Clement-Jones, because common sense has prevailed and we have removed needless bureaucracy. The noble Baroness mentioned a grander plan and a bigger review. This is part of the beginning of a phase. There will be three phases. In January this year, the Government published a full government response to the consultation on regulated entertainment reform. Copies of the document with the full details of the proposed policies can be found on the YouGov website and are available in the Libraries of both Houses.

Today is the first phase. There will be a second phase with a range of exemptions around music and community premises—schools, for instance. In answer to the question asked by my noble friend Lord Clement-Jones, we think that the second phase of consideration is the best place to deregulate the low-risk Olympic disciplines of freestyle and Greco-Roman wrestling. The third phase relates to film, and the Government intend to consult on measures to aid film exhibition in community venues in the near future. I am told that I can say that this consultation will be in “coming months”, so I hope we will make good progress on it.

The other point made by the noble Baroness, Lady Jones of Whitchurch, was about receiving an early warning. The key feature of the events proposed for deregulation is that we do not believe that their low risk would cause a problem. We fully expect events organisers to work closely with local authorities and we think that a formal notification process is not proportionate for such events. We will be keeping those matters monitored.

I shall also deal with the points raised by my noble friend Lord Clement-Jones, but before doing so it is appropriate that I again place a tribute on record. My noble friend generously mentioned many others who helped in the successful passage of the Live Music Act, but he has been and continues to be a staunch proponent of the creative industries. He rightly mentioned the deregulation of other areas while at the same time protecting communities. If there are any outstanding points that I have not covered, I will of course write to noble Lords, but in the mean time I commend the Motion.

Motion agreed.

EUC Report: EU External Action Service

Monday 3rd June 2013

(10 years, 11 months ago)

Grand Committee
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Motion to Take Note
15:52
Lord Teverson Portrait Lord Teverson
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Moved by

That the Grand Committee takes note of the report of the European Union Committee on the EU’s External Action Service.

Lord Teverson Portrait Lord Teverson
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My Lords, since I have been chair of the External Affairs Committee and its predecessors, we have been concerned that the committee should look at things that are practical and where we can make a difference. I, and I am sure my fellow committee members, like to think that we made a difference in our report on Afghanistan EUPOL and on Somali piracy, and perhaps even in our larger report about relations between the EU and China. We took on as our most recent subject the European External Action Service, which is coming up to its two-year review later this year—I think it is expected to take off in July, the month after next—because we wanted to ensure as a House, as one of the key institutions that looks at European affairs in the United Kingdom, let alone as part of this Parliament, that we could put our opinions into that process. That is why we foreshortened our report and issued it relatively quickly to the Government: so that it could be part of those discussions. Having said that, it is probably one of our more politically charged reports and one in which there was a greater diversity of opinion within the sub-committee. That, I am sure—and I welcome it—will come out in the debate this afternoon.

The External Action Service is quite a difficult area for discussion. It is only two years old. Sources vary over the question of when it was started; some say it was December 2010 and others January 2011. In many ways it was invented out of the Kissinger question, “Who do I phone for Europe?”. The whole debate about a unified voice for Europe is one reason why it was in the Lisbon treaty, but by that time it was not the European Foreign Ministry that it was perhaps originally meant to be; rather, it became the high representative and an institution to support her in her work. I will come back to that.

The noble Baroness, Lady Ashton of Upholland, who was appointed to the EAS, is well respected and liked within the House but was hardly known throughout Europe and therefore had a very low-profile start. Being British, or at least being a British commissioner because she has that hat as well, has perhaps made her position even more nuanced and difficult in certain areas. At its start, the EAS was trying to give Europe its true voice all around, in Europe and in the much broader world. Then the eurozone crisis came along and, however good and unified we wanted to make Europe sound, the real noise at the forefront was around Europe’s failures in many ways to make decisions about its own currency and economy. Then there is the vagueness of the task. Nothing in the Lisbon treaty really says what the External Action Service should do except be of assistance to the high representative, and even there the job description is somewhat vague.

How do we describe the External Action Service? It is not an official institution; it is not really a part of the Council, certainly not part of the Commission and absolutely not part of the European Parliament. Then we come to the question of whether Europe really has a foreign policy worth the name. My own view is—and the work that we did on looking at that demonstrates—that it very much does. The European Union makes pronouncements on foreign policy that are often joined by 11 other nation states around Europe that combine with the European member states to make policy decisions. We have to agree, though, that on occasions, and in some of the most important areas such as the Middle East perhaps, Europe does not agree at all.

To all this we have to add a number of other areas. There is the question of large versus small state; not only Germany but France and the United Kingdom stride the globe with our hundreds of years of diplomatic experience, and we are very jealous of that, particularly in France and the UK. Yet we also have small member states that have perhaps only 40 embassies abroad at all, many of those within the European Union. It is questionable whether they even have a foreign policy at all.

To all this we add the fact that the EAS was being set up while it was being run; that there were three cultures among the staff who came from the Commission, from the Council and from national diplomatic corps, which inevitably caused turf wars, let alone culture wars; and that the high representative’s job is often seen as being impossible as they wear three hats: the hat of the high representative, the hat of the vice-president of the Commission and the hat of the chair of the Foreign Affairs Council.

We come down to the fundamental question which this report does not really answer. At some point someone might have to make up their mind about this. Is the External Action Service supposed to be a world-class foreign office and diplomatic corps of a supranational quasi-state called Europe, or is it there just to add diplomatic value to the traditional Commission tasks of trade and development? I leave Members to make their own choice, but in the longer term that is what will drive not this review but reviews in the future.

I shall give the Committee one or two facts. The EAS budget is €500 million—nothing to be sniffed at, but that is only 0.4%, or in effect one-third of 1%, of the European Union’s budget. The EAS has 141 delegations abroad; it started with 136 but has combined some and opened others in places such as South Sudan, which I am sure we would agree with in that instance. It has about 3,400 staff altogether.

This organisation is significant and important, but what are the headlines in relation to what should happen in this review? I shall go through them very quickly because other noble Lords will go through them in detail in their speeches. Budget neutrality was supposed to be achieved, and in times of economic difficulty in Europe we believe that that should be maintained. The only way that can be done is by prioritising, but that is very difficult with such a large agenda. It should concern the emerging powers such as China, India and perhaps Brazil, and it should concern our local neighbourhood in the east and the south. A lot of the EAS’s time has been taken up by the Arab spring and neighbourhood questions. It should also perhaps be a priority in crisis management. We have seen examples of that in Somalia, the Horn of Africa and Mali.

The turf war between the Commission’s and the External Action Service’s core staff, the diplomatic staff, must end. We believe that that situation is much better, but it has to improve and be resolved in the near future. We need to think anew. We should not be bound by the geographical locations of existing missions. We have to think about the future rather than the inheritance of the past. We believe that as foreign policy is primarily intergovernmental, the EAS’s annual report should be presented to each of the national parliaments. Clearly, that has to be done in a sensible way so that we can formally respond to the External Action Service’s work each year and feed back into it as an intergovernmental area of EU policy.

Over the next few years, it is fundamental that the EAS concentrates on adding diplomatic value to the strong work undertaken in trade and development. At the end of the day, one of the key issues that we in Britain have to look at is the large versus small state issue. Three ambassadors of smaller member states—Lithuania, Slovenia and Slovakia—were witnesses, and in those states there was a completely different view from perhaps that of French parliamentarians about the role of the EAS. The small member states—this was confirmed to me when I was in Estonia last week—see the EAS as part of the European deal, part of their membership, part of what they are, and they expect it to respond to their needs. They do not have the resources for a worldwide presence, and they see the External Action Service as a way of having that. In a Europe where the United Kingdom, and perhaps France these days, has to look for strong allies among all states, I say to our Government that this is one area where they have to take care in their views about the External Action Service in the future. It is easier for us with larger budgets and a larger presence to see the EAS as something that perhaps threatens certain national representation abroad, but to smaller member states it is a way forward and a way to a global and much more visible presence abroad. We need to find a way to drive both of those agendas forward. I beg to move.

16:03
Lord Lamont of Lerwick Portrait Lord Lamont of Lerwick
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My Lords, I thank the noble Lord, Lord Teverson not just for the way in which he chaired our inquiry into the European External Action Service but for all the work that he has done for the committee. He has been a very open-minded but firm chairman, and we had some extremely interesting sessions thanks to his very firm leadership.

I also thank our clerk, Kathryn Colvin, and researchers, Roshani Palamakumbura and Edward Bolton, for all their hard work.

I was a little confused about who would reply for the Government in this debate. I read in the newspaper that my noble friend Lady Warsi had escaped from the entertainment in the Chamber and so I was not surprised to find her name on the list here, but now she seems to have been replaced, not just in the Chamber but in this Room, by the noble Lord, Lord Wallace of Saltaire. If what I read in the newspapers was correct, the noble Lord had some nostalgic recollections over the weekend, as I think he sang at the Queen’s coronation over the road. Anyway, we are delighted that he is answering on behalf of the Government today.

I am not sure that it is appropriate that I should be the first representative of the committee to speak after the chairman. Mind you, not many members of the committee are present at this moment. I was hesitant about being the first because, although I think I was the first person to suggest an inquiry into this subject, I do not think that my views in the committee were representative of the committee as a whole. I was certainly sceptical about the EAS at the beginning of the inquiry, and I have to say that after all the discussions and all the evidence that we had I remain very sceptical about it.

I say that without in any way implying any criticism of the noble Baroness, Lady Ashton, who I think has been in a difficult situation and has done a very good job. Nor do I imply any criticism or make any attempt to diminish the importance of the aid work that goes on through the legations and the embassies. The focus of my scepticism and criticism is much more on the network of offices and embassies throughout the world. It seems to me to be a bureaucracy that has been brought into being before anyone has decided precisely what it is meant to do.

An awful lot of the evidence that appeared before the committee seemed to be self-justification. I should not speak for other members of the committee, but listening to some of their questions I got the impression that some of them could not work out what the EAS was meant to be doing either. That, I think, is reflected in our conclusion on page 1 of the report, that,

“the EEAS encountered uncertainties about what the Member States wanted it to do”.

On page 2, the report states:

“Member States should clarify what they want the EEAS to do”.

I suggest that it would have been rather better, before we decided to spend around €500 million a year, to have decided what we wanted it to do. As I say, a number of witnesses who appeared before the committee out of choice seemed astonishingly unable to define what the EAS was for or what it was meant to do.

The basic problem, of course, is that there is no single foreign policy of the EU as such. On Iraq, Syria, Libya, Cuba, Kosovo, and trade and energy issues with Russia, despite the achievements of the noble Baroness, Lady Ashton, in recent weeks, there is no agreed line. One or two witnesses attempted to imply that Europe had been a major actor in what had happened in Egypt. Well, it spent a lot of money in Egypt and made a number of representations, but I have met no one from Egypt who believes that the European Union has had a big impact there. I also followed up on claims that were made for the extraordinary influence of the EAS in the Yemen by asking various Yemeni people I met whether they were aware of it. I found little awareness, if any. Where in European foreign policy there is an agreed line, I cannot see why that cannot be communicated diplomatically, if it needs to be, through the embassies of Germany, France, Italy and other countries. I cannot see what the European embassies can do on the ground that cannot be done by the national embassies, certainly of the major countries.

In a previous EU committee session, we had evidence from the prospective EU ambassador to China. I asked him what he thought he could do that could not be done by the German embassy, the French embassy or the Italian embassy. He said, “We, much more than them, are going to major on human rights and place all the emphasis on those rights”. I do not think that will get him a long way in raising the profile of the EU in China.

Under the Lisbon treaty, foreign policy remains largely under the control of member states. Having looked at this, and presumably thought about it, the committee’s recommendation, on page 10, was that it should remain so. Also on page 10, the report states:

“The EEAS should not … seek to project its own foreign policy”.

In that sense, the question “What is the telephone number for Europe?” is not the right one. There are telephone numbers for the different major actors, and it is unreal to think that there should be a single telephone number on all questions for Europe.

On page 31, following the logic that foreign policy is the prerogative of member states, the report states:

“The scrutiny role of the European Parliament should not go beyond its current level”.

Members of the committee who went on the visit to the European Parliament and heard Elmar Brok speaking on this subject there have no doubt that it is the ambition of Mr Brok and other members of the European Parliament that it should play a major role in directing European foreign policy.

There are 141 delegations around the world. At the time of our report there were 1,922 EAS staff plus 3,514 commission staff, making a total of 5,436 people around the world. There is quite generous staffing in places. There are 44 people in Barbados, 32 in Mozambique and 30 in Uruguay. The EU is represented in 11 Pacific island countries, including the Cook Islands, Micronesia, Fiji, Kiribati, the Marshall Islands and lots of others. A point made very clearly in the report and echoed by the noble Lord, Lord Teverson, in his speech was that the location of offices ought to be determined not by history but by what is in the best interests of the European Union and what is likely to contribute most to the solution of real problems. What the noble Lord and the report say about reviewing the offices and their location makes a lot of sense.

The report was, if anything, rather lenient on the failure of the EAS to achieve budget neutrality. It is not an excuse to say that it is a young organisation. It was set up on the strict condition that there should be budget neutrality—you take money from one pot, and you put it in another—but we have had a litany of all the familiar excuses, which will be familiar to anyone who has ever been in the Treasury, about what had been inherited and the difficulty of the current climate. In the current climate, in which austerity and budget cuts have been in place all over the EU, it is very regrettable that there was a failure to achieve budget neutrality, and I strongly endorse the report’s conclusion that there should be zero real increases in expenditure in future.

It was unfortunate that the report did not go further into salaries. We had a firm statement from Mr Shorter of the office of the Minister for Europe that salaries are very high by national standards. Another witness described them as outrageous profligacy, and another as a ridiculous amount of money. Certainly, they seem to be higher than national salaries. In the report, the argument was made that it is difficult to make precise comparisons, but it would have been better had we looked at this rather earlier in our inquiry and gone somewhat deeper.

Particularly singled out for criticism were the salaries of the 11 special representatives dealing with certain crisis areas and certain geographical areas of crisis. It was said to us that several of those special representatives have salaries higher than that of the Secretary-General of the United Nations. It was argued that high salaries were necessary in order to get figures of genuine international standing, but I think that only three out of the 11 special representatives have actually gone to people who were not former officials. Only three have gone to people who are former Ministers, for example. We have a lot of distinguished people here. Perhaps they could be considered for some of the special representatives in future.

Again, I emphasise that my criticism is largely directed at the physical network. We heard several witnesses, and one extremely senior one in private, say that the delegations in Brazil and in India, the so-called strategic partners, have had no impact on that relationship or on changing it. The lady witness from the WTO said that the EAS had no noticeable impact on trade negotiations and that the cards and the brass plates on the tables had changed but the method of working and the negotiations methods had not changed at all.

One justification that was put forward for the network of offices was that one needed to see trade in a political context. I remain sceptical about that. Of course one needs to know the political motivation and the local context in which people have a particular view on a particular trade issue. However, that is easily ascertainable through national embassies, or indeed through reading newspapers. One has to distinguish between trade policy and trade promotion. Sometimes in the arguments that were put forward, trade promotion was confused with trade policy. In trade policy, the EU definitely has a valuable role: in trade promotion, I would say hardly at all, although I do not think that that was clear in all the statements that were made before the committee.

The EAS exists, and we have to make the best of it. I agree with the points that the noble Lord, Lord Teverson, made about training and secondment. I have to say that I was somewhat disappointed by the Government’s reply to the report, and I wonder whether it really said what the people in the Foreign Office actually say in their heart of hearts about the EAS. It does not explain away the number of ambassadors—I shall not name them—who, late at night over a glass of whisky, have asked me “What does this thing actually do? What is its purpose? What is it for?”. It seems to me that the logic that we are going with is that we should actually start considering closing down some British embassies just as we start expanding the EAS network, but of course the Foreign Office would never dream of agreeing to that.

16:18
Baroness Coussins Portrait Baroness Coussins
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My Lords, I am one of those soon to have the privilege of joining Sub-Committee C, and I read this report with great interest. My observations and comments focus on two of my particular interests: relations between the EU and Latin America, or Europe and Latin America, and languages.

First, it struck me that some of the report’s recommendations are a good fit with the active and strategic approach that Her Majesty’s Government have demonstrated in relation to Latin America. I hope that the Government can be proactive in promoting a similar sense and level of engagement with Latin America through its membership of the EU and through the EAS in particular. The Foreign Secretary himself has said that Latin America is a region,

“which nobody can afford to ignore”,

and that it is,

“playing a central role in tackling pressing international issues from climate change to the economic crisis, and from the Arab Spring to international development”.

Forging closer links with Latin America is also important for the UK’s own economic growth. I struggled to find any reference to Latin America in the report other than Brazil. I found one fleeting reference to Guatemala but I think that was it. It is important to remember that Latin America is not only Brazil. For example, Peru recorded growth of 6.2% last year and in the last month has become the latest signatory to the EU-Andean free trade agreement, so when the report recommends, and the Government agree in their official response, that the EAS should prioritise relations with emerging powers, I urge all concerned to remember that that term should include Latin America as a whole and should not be focused only on Africa, Asia and the Middle East.

This would not only be in the interests of trade, where, as the report says, the EAS can add value with an overall strategic role to bring a diplomatic perspective, but it is also highly relevant to the recommendation in the report about furthering the EU’s human rights principles. Several Latin American countries—I highlight Colombia—are in post-conflict periods where the leadership of the UK and the EU in promoting human rights’ values in both civilian and corporate life could make a critical difference in areas ranging from the treatment of indigenous communities to the ending of the normalisation of sexual violence against women. Does the Minister agree that the EU needs to be in strategic partnership with more countries in the Latin American region than Brazil alone, and what might the UK Government do to encourage this through the EAS?

As to my second interest, part of the necessary wherewithal to build relationships in Latin America and with most other places on the planet is the linguistic competence to make contacts, build bridges, understand other cultures, participate and earn respect. English, of course, is absolutely vital, and we are very lucky to be native English speakers, but it is not enough in a world where, surprisingly, only 6% of people are native English speakers and 75% of the people on planet Earth speak no English at all.

The report makes the important recommendation that greater attention be given to training for EAS staff, including in languages, and it notes in particular that more Arabic speakers are needed. Professor Whitman of the University of Kent, in his evidence to the committee, put it more strongly still, saying that languages and regional competencies were crucial issues in training. I want to ensure that this recommendation does not get lost or overlooked as a small administrative detail, overshadowed by the bigger picture of emerging powers, security and human rights, because language skills are crucial to securing progress in all these matters.

The report tells us that the EAS says that UK nationals are strongly represented on the EAS staff at all levels. However, on looking at the numbers, I am not sure that that claim is very convincing. The proportion of UK nationals certainly does not reflect the UK population as a proportion of the EU. There may be many reasons for this but one significant contributory factor is the lack of language skills. The Foreign and Commonwealth Office has noted that a shortage of British staff in international institutions is detrimental to the national interest and undermines our policy influence.

UK nationals make up only 5% of the European Civil Service, although we account for more than 12% of the population. In 2011, a mere 2.6% of applicants were from the UK, fewer than any other member state. A key reason for this was that English-speaking applicants must offer either French or German as a second language. I appreciate that the Foreign Office is now trying harder than ever before to turn this around and has already recognised the importance of languages in diplomacy by increasing its budget for language training and the number of posts for which languages are now deemed to be an absolute requirement.

The Government’s response to the committee’s report agrees that EAS staff should be given what they call “hard language training”. I am not sure whether that means difficult training or training in difficult languages, but either way I ask the Minister, in the light of this new commitment to languages, how the Government might directly assist the EAS in achieving its language training needs in ways that could be defined as “in kind support”, rather than further direct budgetary contributions, which both the report and the Government’s response agree must be avoided.

The government response says that they are working to promote the EAS as a career option for talented UK officials. I would like to know how language training plays a part in that effort. In particular, there is no doubt that we need significantly to increase the number of UK nationals who can offer Arabic and Mandarin. The few we have are like gold dust. As I have heard anecdotally from officials at DG Translation in London and Brussels, these few are subject to being ruthlessly poached from agency to agency all the time, which might well add to the turf-war mentality identified in the report, which certainly needs to be overcome if all the relevant agencies are to be able to work and achieve to their full potential.

It can be taken as read from my earlier remarks that the importance of Spanish and Portuguese should also be taken on board by any would-be EAS staff, and indeed any businesses with an export eye on Latin America. Thinking about the supply chain for linguists and practical ways in which the Government could help to implement the recommendations of the committee’s report, will the Minister discuss with ministerial colleagues responsible for higher education in BIS to see what more can be done to halt the decline of applications to university for language degrees, whether in hard or soft languages, and to encourage more of those who graduate as linguists, or as anything else with a language, to consider careers in the EAS and related institutions?

16:26
Lord Bishop of Derby Portrait The Lord Bishop of Derby
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My Lords, I add my thanks to the noble Lord, Lord Teverson, and his colleagues for producing this report. One of the subtexts of this is: what is the report about, and what are we trying to achieve?

I am fascinated by language, particularly some of the language developed in this world such as “High Representative”. I know about high priests, but high representative is a very interesting concept. Perhaps that is something to be pursued, although I do not want to do that now.

The main language point that I want to pursue now is the word “action” in the title of the External Action Service. The Committee might know that when the UK was thinking about a closer relationship with Europe all those years ago, the matter was discussed in the General Synod of the Church of England. People were in favour of a more formal relationship, but only if it meant that Europe would be outward-looking. Rather than a club just to preserve its own well-being, because of historical links and commitments it would be outward-facing to Latin America and to all kinds of other Commonwealth contacts. That is one of the agenda issues for which presumably the EAS was created: to help Europe to be outward-looking in an effective way.

The question is: is the EAS the right vehicle for that, and how well is it performing? From the report, it is clear that there have been some massive challenges. It talks about China, the Arab spring and Brazil. The report is full of the organisational issues, as the noble Lord, Lord Lamont, has said, and questions about its identity—what it is and how it works—rather than action going outward. Given that this identity crisis and all the debates about budget and salaries coincide with the economic pressures within Europe, I suspect that there is an enormous temptation for this particular animal to become more and more inward-looking and to take action to order and organise itself and get its salaries right, whereas what Europe desperately needs is a proper structure for looking outward. The report raises the question of whether the EAS is the right one.

I want to talk about one area where Europe needs to look outward with real urgency in our present context, and I invite the Committee and the Minister to comment on how best to achieve this and whether the EAS is the right vehicle for this: the area of human rights and religious freedom. The noble Baroness, Lady Ashton, who is the high representative, recognises that human rights should be like a silver thread going through the work of the service. Members probably know from the background papers that 75% of the world’s population now live in countries where the expression of their religious beliefs is subject to abuse, intimidation and sometimes imprisonment. The threat to religious freedom is becoming more and more of a common feature in all kinds of societies.

Europe has something really powerful in its DNA: religious freedom and human rights. Religious belief is a litmus test for how human beings understand identity, aspiration, relationships with others and all the things that form citizens and help citizens to shape their countries, and it helps countries to relate to each other.

There are three things in the DNA of Europe that we need to turn outwards and offer through diplomacy and foreign policy, which other parts of the world still have much to learn from. The first point about our DNA is this amazing commitment to discussion that came from the Greeks and the Romans. European history has been marked by very radical levels of discussion. Sometimes it gets out of hand and people fight wars, trying to short-circuit discussion. This very institution is part of a movement, after a war that happened because the discussion got out of hand, whereby we can have a forum to discuss things better and in a more mature way. That is deep in the DNA of Europe and I think it is one of the things that binds us.

From that Greek and Roman Christian heritage, that discussion has allowed us to identify differences and to look at them together. That is how our politics works and how it works in much of Europe. It is a model of which we should be proud and want to turn out and offer to others. The extent to which we fail to do that means that many countries look at models other than western democracy for their hope and their shaping, whether it is Chinese authoritarian capitalism or whatever. It is very important for us to own what is in our DNA and to seek to turn it out and to offer it in our foreign policy, in our diplomacy and in our trade agreements.

Our DNA is about discussion, a discussion that highlights differences. However, the third thing in our DNA is an amazing tradition of trying to develop together, whether it was the alliances among the Greek city states, the amazing Roman empire that held all those different cultures together, or Christendom across the medieval world, with all those different nations and churches trying to develop together, through discussion.

Those things are very precious to the identity of the European peoples; I think they are in our DNA: discussion, owning the difference and development together. Safeguarding religious freedom allows people to continue to work and Europe needs to get its act together to reflect on and to see how best we can make a common witness through those things and to bat for them through diplomacy and foreign policy and through the various influences that we can have across the globe. We might be losing the initiative of standing for the things that people recognise are good and taking up other alternatives, but I think that would be to the detriment of the human race.

I want to make a plea for what Europe has to offer by an outward turn. The question is: is this the right animal to do that? Could it be shaped and revised in order to give it a high priority, as the noble Baroness, Lady Ashton, implies with her commitment to human rights, or do we have to be bold and try to engage and find another way of making that witness?

I remind fellow Peers that we have that heritage and that DNA, so it is key now that we hang on to it and do not lose our nerve. If we lose our nerve, Europe will become more marginalised and what we hold as precious in our political and religious work will become marginalised too.

16:34
Lord Jopling Portrait Lord Jopling
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My Lords, I begin by following my noble friend Lord Lamont in his tribute to the noble Lord, Lord Teverson, and to our staff for this report. It is a good report. I particularity want to thank publicly my noble friend Lord Teverson, who has been a very distinguished chairman of the committee. I particularly applaud his initiative in introducing, at most of our sittings, maybe an hour when people come and brief us from the Foreign Office and beyond. It has been a most advantageous innovation and I congratulate him on that.

My noble friend Lord Lamont said that he was the first of the members of Sub-Committee C to speak. I suppose, looking at the list, that I am the last, because after that we come—I hope they will forgive me—to the “heavies”, who will tell us about their previous Brussels experience. Having thanked the noble Lord, Lord Teverson, I think that all of us on the committee are glad to see my noble friend Lord Tugendhat, who has such good experience with Brussels. I suppose he is another of the heavies. He will be a very worthy successor to the noble Lord, Lord Teverson, and we all welcome him on to the committee. I was not aware that the noble Baroness was going to join our committee until she got up. I am sure we will all welcome her in due course, maybe in three days’ time. If she contributes as she has contributed this afternoon, we have good things in store. It was good to have heard what she had to say.

I was particularly glad that the Government—the Foreign Office—gave broad agreement to the report in their response. There are not many things that they demur from, which is a good thing. It is not our job to follow the government line, and I do not think that any of us on the committee want to do that, but it is good to know, after our deliberations, that the Government find themselves in broad agreement with it. This all rather contrasts with the swathing criticism that came upon the head of the EAS from the European Parliament, which was extremely critical of the service. Reading the European Parliament’s report, I just wondered whether it was not too much coloured by a personality conflict with the noble Baroness, Lady Ashton. Some of its criticism was not justified.

We have to realise that the service is only two years old. However, it is urgent that, at this time, it comes in for a degree of reassessment and regrouping. I am sure we shall find that coming from the current review. Indeed, the timing of our report was very much based on producing it in the early or middle stages of the review of the service, so that our views could be taken into account by those who are carrying out the current review. I hope they will ask all the right questions. My noble friend Lord Lamont raised a good many of those questions, as did the chairman.

In this context, I always remember the question that our old friend Lord Peyton used to ask. I think a number of noble Lords here will remember Lord Peyton of Yeovil, who was a somewhat abrasive character. I worked with John Peyton in opposition many, many years ago. He used to go around places and say to people who were doing various jobs, “Tell me, what do you do, and who benefits?”. I hope that the review will ask those sorts of questions and come to the sort of conclusions, which my noble friend Lord Lamont referred to, about what we want the External Action Service to do. I hope that they will take note in the review of what we have had to say.

Clearly, the noble Baroness, Lady Ashton has been hugely overstretched and it is an achievement to have got the EAS up and running within these first two years. However, I wonder whether the architects of the service, who put together the Lisbon treaty, realised what a massive task it was and what huge, varied responsibilities were to be put upon its head. Years ago, the noble Lord, Lord Williamson, and I were on this committee when the service was originally mooted. The noble Lord, Lord Maclennan, also had a good deal to do with this many years ago. I remember the noble Lord, Lord Williamson—I hope he will not mind me quoting him—pointing out what a massive and wide responsibility was being proposed. Therefore, it is not surprising that the noble Baroness, Lady Ashton has been massively overfaced with the responsibilities that she has had. The pressure on her must be addressed.

In the United Kingdom we are familiar with the position of junior Ministers operating within departments under the responsibility of their political heads. In 2014, when the new Commission is appointed and the new responsibilities are apportioned, it would be wise at the same time to appoint deputies. These should not be the people who, as the European Parliament has described, sit representing the noble Baroness, Lady Ashton “like lemons”. They need to be there as deputies, with proper powers to represent the high representative and vice-president of the Commission. The more I think about this the more I think it needs a structure that is not dissimilar to the ministerial structure that we enjoy in Whitehall.

As I said, there is much to be done. The salary rates need to be reviewed and made comparable with other diplomats’. I noticed in the European Parliament report—I quote from the Daily Telegraph—that more than 100 European Union diplomats working in the Brussels-based Diplomatic Service earn more than William Hague, the British Foreign Secretary, and at least 50 senior officials pocket higher salaries than David Cameron’s prime ministerial annual salary of £142,500. The rates clearly need to be addressed, and we have put that in our report.

Missions need to be closed where they are not effective or where responsibilities are duplicated. All that should lead, hopefully, to better co-operation with member states’ missions in the countries concerned. There are too many of the alleged “turf wars” going on, a point to which the noble Baroness, Lady Coussins, referred. We must try to get a better understanding so that these turf wars do not exist.

There is one point in the report on which I have had second thoughts. Of course I recognise that the EEAS can provide representation in some countries where smaller European states have no presence. This especially concerns consulate services. We say in our report that if the EEAS were to provide consular services for some smaller states, those small states should be asked to pay for them. On reflection, though, that was a dangerous thing to open the door to. The service, as we say in our report, has no consular expertise at all, and to start trying to provide it could easily lead to tears. In all states around the world where there is an EEAS presence, there are other embassies that provide consular services, and it would be far better if those smaller countries that seek a consular presence in those countries sought to provide it through the consular services of existing embassies and high commissions rather than trying to start from scratch within the EEAS.

In conclusion, I am bound to say that it is almost as difficult to say EEAS as it is to talk about the atomic energy authority in Vienna, whose name I cannot remember.

16:46
Lord Hannay of Chiswick Portrait Lord Hannay of Chiswick
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My Lords, trying to judge the performance of the European External Action Service less than three years after it was first set up, a period during which a massive amount of time and effort necessarily went into the administrative complexities of that teething process, given the impossibility of doing more in advance planning while the Lisbon treaty was going through its rather agonising ratification process, is not an exact science, nor can it lead to any very definitive conclusions. Nevertheless, we owe a debt of gratitude to the noble Lord, Lord Teverson, and his colleagues for this last in a number of really excellent reports that the committee has brought forward in the years that he has chaired it. It is a genuinely valuable account of a work still very much in progress.

The report is timely, as the noble Lord recalled, as a first review of the EEAS is now under way in Brussels and because—this is a point made by the noble Lord, Lord Jopling—in 2014 the process of appointing a new Commission, including a new president, a new high representative for common foreign and security policy and a new president of the European Council, creates an opportunity, if it is taken, to address some of the problems that have arisen in the early years of the EAS’s existence.

If I may be tempted by the noble Lord, Lord Jopling, to a bit of anecdotage, I reminisce, and I find it astonishing, how that wizard of modern diplomacy, Henry Kissinger, managed to fix the whole debate, practically for ever it sometimes seems to me, with his remark about which telephone number he had to ring. That was an extraordinary piece of chutzpah, if that is an adequate word for it, since, even when Henry Kissinger himself managed for the only time in American history—and it will probably remain the only time—to combine the offices of Secretary of State and National Security Adviser, you still needed more than one telephone number to find out what American foreign policy was: probably more than 20 or 30. It is a pity that he somehow fixed the debate, and we should not allow ourselves to be mesmerised by that objective of producing someone at the end of a single telephone number. I doubt whether it is achievable, and it certainly will not be achieved in the short term.

To add to the Kissinger stories, I add his unhappy initiative that he called the “Year of Europe”, which caused a good deal of fracas in Brussels at the time when he launched it. When he asked the man who I worked for at the time, Christopher Soames, former Leader of this House, why everyone was so upset, Christopher said to him: “Well Henry, how would you have liked it if I had made a speech saying that next year is the year of the United States?”. That brought the conversation to a short and rapid conclusion, and the year of Europe came to a conclusion rather soon after that.

I will address three main issues. First, there is the question which the noble Lord, Lord Jopling, with whom I agreed 100% on this, spoke about: the overload on the person holding the job of vice-president and high representative. This really cannot be in doubt and it is likely to get worse as the EAS and common foreign and security policy become more a part of the international scene. It is not only that the high representative cannot be in two places at once, particularly when those places are often separated by thousands of miles, but that the number and complexity of the policy issues needing to be handled exceed the capacity of one person to do so. Because the crucial work of co-ordination in Brussels at a political level cannot be effectively achieved by someone who is often absent from that city, the present situation is absurd. Even Foreign Ministers of small member states often have political deputies to share the load. However, the Commission, where there are now 28 commissioners from 1 July onwards, which far exceeds the number of meaningful separate tasks to be performed, cannot seem to contemplate a system of a deputy or deputies for its vice-president.

Alternative ways of addressing the overload problem, such as turning back to the rotating presidency to plug a gap, would seem to me a cure that is worse than the disease, risking recreating the confusion and dispersal of effort that the high representative was established to remedy. It should surely be a high priority for the 2014 process of EU appointments and the allocation of responsibilities to address this problem.

Secondly, there is the problem of policy coherence. The European Union of 2013 has a wide range of policies and policy instruments that impact on the world outside its borders, such as enlargement, neighbourhood policy, development aid, trade, environment, transport and immigration, to name only the most obvious ones. However, is it achieving the sort of coherence in the operation of those policies that will maximise their impact and maximise, too, the European Union’s influence in an increasingly interdependent and multipolar world? The honest answer is that it is not. One need look no further than the way in which both Russia and China are able to divide and rule among the member states when there is no meaningful overall policy approach towards those two countries, or at the contradictions between the Union’s agricultural policy and its development policy, or those built into the handling of Turkey’s and Macedonia’s applications for membership. The best diplomatic service in the world cannot itself compensate for, or gloss over, such a lack of policy coherence. If the EAS is to be more effective, that lacuna in policy coherence needs to be filled.

Thirdly, there is the issue of turf fighting, both within and between the various institutions in Brussels, between the Commission, the EAS, the Council, the Parliament, and the member states. If there was a gold medal for turf fighting, Europe would surely have won it quite a lot of times. One of the principle objectives with the establishment of the EAS was to reduce that turf fighting. Has it succeeded in doing so? I rather doubt it. Those who work within the Brussels machinery tell me that while there have been some improvements in the operations, such as the operation of the Political and Security Committee and the Situation Centre, there are plenty of other examples of time and resource-wasting infighting. There are some member states—the UK, I fear, prominent among them—whose lip service of support for the EAS is in sharp contrast to the resources they devote to the task of policing the lonely frontiers of competence creep, biting the ankles of the EAS whenever any transgression, however minor, is perceived.

There are plenty of other areas that need to be addressed before the EEAS can confidently demonstrate a degree of professional excellence equal to that of the best among its member states, which have, after all, been in the business for an awful lot longer. Better language skills, as my noble friend Lady Coussins said, greater effectiveness at public diplomacy, the avoidance of cronyism in the making of senior appointments and better co-ordination between the work of special representatives and the EEAS heads of mission on the spot all need to be addressed in the period ahead. Above all, the EU and the EEAS need to spend more time and effort influencing the policymaking of the rest of the world and less time arguing among themselves about the precise formulation of EU positions, whose shelf life is inevitably limited. This is work not just for three years but for as many decades. Meanwhile, I would be grateful if the Minister replying to this debate could give the Government’s views on the three priority issues I have identified—deputisation, policy coherence and turf fighting—and say what steps the Government intend to take to make the most of the opportunities of 2013 and 2014 and the general post appointments next year to address those problems.

16:56
Lord Maclennan of Rogart Portrait Lord Maclennan of Rogart
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My Lords, from my external position, I would like to say how very much I appreciated the work of the committee and the Chairman in producing this thought-provoking report. It is extremely timely, and bringing it forward in time to feed into the review being undertaken by the vice-president and high representative is a very skilful move. I cannot believe that there will be another contribution from a national parliament that will have more thought-provoking recommendations with the possibility of enabling the new group of European leaders who will emerge in 2014 to get to grips with this.

It is a very short time since the External Action Service was set up. It is consequently right to be cautious about it and to learn from the experience of the past two-plus years. The noble Baroness, Lady Ashton, deserves very high commendation for the work that she has done, not only in shaping the structure of the institution, which is not an institution but an agency, but in her response to crises that were not predictable when the agency came into being. In particular, I wish to record our admiration for the work that has been done between Kosovo and Serbia. The European Union Select Committee heard from Serbian parliamentarians not very long ago, who made it plain that they were going to find it exceedingly difficult to come to any agreement with Kosovo other than through the agency of the European Union.

I take the view that there is some urgency in continuing this work. It is quite clear that the global powers, the BRICs, will develop very rapidly over the next decade, and if the European Union is to exercise its influence, and even to protect itself, it must speak with a single voice on many of the issues that confront us. During these early years of a common foreign and security policy, it is evident that that has not always been so. Our relationships with Russia have been notably very different, Germany has spoken for itself very often in these matters, and the Libyan intervention was not supported by Germany. We need to treat these issues with greater coherence than has to date been achieved.

We can be very effective, I do not doubt, if we bring our foreign stances together. We must not seek to do this only in areas of self-centred need. We must recognise that it is a continent of 500 million people with a huge underlying economy. We are in a position to assist other less developed countries that have, as the right reverend Prelate said, less adherence and commitment to western European balance, democracy and human rights. We have to recognise that these matters can be effectively addressed if we come together with a common voice. We have used sanctions as a pressure in this period and they have been effective—indeed, the committee recognised that—but persuasion is also important.

Despite the fact that France and the United Kingdom have a long history of extensive global participation, we ought to recognise that that is going to diminish and that there is no way in which we can continue to be or should wish to be an imperial power. This brings me to an issue that was clearly discussed in the drawing together of this valuable report: the extent to which we in the United Kingdom should hold our own role, not only in terms of our own interest but in terms of our Diplomatic Service. There are places in which it is quite clear that the United Kingdom is less influential than it was. In some countries in west Africa, for example, we do not have the kind of representation that would carry weight. That is partly a function of prioritisation, which of course was a theme of this report. However, as these developments occur, the continent of Europe, with its 500 million people, should be able to have a view about global issues right across the world and we should not back out and deal only with matters of crisis.

The transference of power to the European Union, of course, cannot be accomplished without a greater democratisation of the institutions. It cannot be achieved overnight. That is a subject for further reflection, but that we should have the ambition to do this seems to me to be beyond dispute.

I noted with interest the committee’s comments on development, trade and climate change. Those issues are all important. It is right that at the beginning of this process of developing a foreign service—for that in effect is what it is—we should not expect too much to be taken off. However, these matters are interlinked, and I think the noble Baroness, Lady Ashton, was explicit in and has been successful in indicating how important political understanding is when we are making contributions to trade issues. Here I somewhat disagree with the noble Lord, Lord Lamont, and his remarks about China. We have to recognise—I have to declare an interest in regard to China—that we cannot turn a blind eye to matters such as the denial of human rights, even if we are seeking to extend our intimacy in the area of trade.

This report ought to be considered very carefully by the Council in formulating its new views, by the Commission in recognising what a valuable role there is for this service, and by the European Parliament. The criticisms made by some of those European parliamentarians about the lack of political will were justified, but what a splendid beginning has been made in these two and a half years.

17:08
Lord Williamson of Horton Portrait Lord Williamson of Horton
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My Lords, I declare an interest in that I spent a good part of my career on European affairs in the United Kingdom Civil Service and in the European Commission. I join others in thanking the European Union Committee for this valuable report on the European Union’s External Action Service which I hope I shall continue to call the EEAS for the rest of this speech, unless I get confused with the initials. This is just the sort of report that we need to keep us informed about what is happening within the European Union following the Lisbon treaty. The analysis of evidence and the 49 conclusions and recommendations are very full indeed, although some of that is necessarily provisional and speculative because the EEAS, in its present form, is a new creation, having been formally launched in January 2011, and being due for review in mid-2013, which is critical timing.

I am a notoriously quick reader and often complete a book in an evening. However, this report took a little longer to digest and I therefore decided to select only a few points for comment. First, we need always to keep in mind that the EEAS is a genuinely new and significant initiative. It is quite different from the extensive network of external delegations—of which I had some experience—which, before the Lisbon treaty, were under the direct control of the Commission. The EEAS, on the contrary, is an information resource on external affairs for the member states and, of course, for the EU as a whole. The common foreign and security policy is now a core part of the work of the European Union, but its control and management is quite different from most aspects of the EU’s work, because the Commission does not have the sole right of initiative. Policy decisions are reached by consensus in the Council. They do not require the consent of the European Parliament, although it may try to achieve some influence on them, and are not, for the most part, within the jurisdiction of the European Court of Justice. Some very important consequences stem from this, most notably that the key basis for action is the capacity of the member states in the Council to reach agreement and, if there is no agreement, the diplomatic handling of the situation. We have seen this markedly recently in a number of crises, for example in Libya and Syria, to which we have already heard references.

There are some important areas for which the European Commission continues to have the major responsibility, notably international trade and the EU’s humanitarian assistance. Under the common foreign and security policy, the member states rule. It follows from that that I strongly endorse some conclusions in the report. First, there is conclusion 167:

“The EEAS should not … seek to project its own foreign policy. The Common and Foreign Security Policy should remain under the control of the Member States”.

In the same line of argument, I endorse conclusion 189, as referred to by another noble Lord, which says that the,

“annual report to the European Parliament on … staffing and budget”

for the high representative and vice-president should also be submitted “to national parliaments”, because of,

“the intergovernmental nature of the CFSP”.

I come now to the key element of our report, namely the judgment of the performance and value of the EEAS in the first two years. The committee’s view, although subject to conditions, is favourable. Conclusion 215 states that,

“we believe that the EEAS has made a good start in its first two years”.

In conclusion 193, the committee cites example areas such as,

“the relations between Serbia and Kosovo”,

where, in the committee’s opinion, there has been a “noticeable impact” and an enhancement of the European Union’s ability to speak with one voice.

We have set ourselves on this course for the EEAS and we need to maximise the value of this substantial resource. For me, that is the underlying point that we have to build on in the coming period. There are 3,400 staff, to which we have also committed national diplomats—I recall that national diplomats represent 40% of the delegations—with a view to providing extra advantages for the diplomacy and influence of the United Kingdom, the other member states and the EU. However, I might be a little more cautious than the committee in trying to draw conclusions before the review. I have some sympathy with the comment of Mr Mats Persson from Open Europe, summarised at paragraph 104 as saying that,

“he believed that the jury was out on the value which the EEAS added”.

I think we need to be a bit careful about that, but I believe that the potential of the EEAS is great. We need to be careful where we stand now.

The European Union Committee has also examined in detail a number of practical and administrative arrangements that may affect the operation of the EEAS. It is not surprising that there is still work to be done in bringing together the three staff components from the Council secretariat, the Commission and the member states’ diplomatic services, and the relationship between the EU special representatives and the heads of delegations should be clarified. The comments of the EU Select Committee on the organisation and co-ordination within the EEAS should be taken into account—they are useful for that—by the Council, the Commission and the noble Baroness, Lady Ashton, in the imminent review.

In the Moses Room, far from the EEAS working environment, it is not too easy to take a definitive view on some of these recommendations. For example, in principle, I am in favour of a single set of budgets and accounts for delegations, as recommended in the report, but we need to be careful that there are no unintended consequences, which sometimes happen, that could affect the Commission’s excellent record on administrative expenditure, which has received a favourable opinion from the Court of Auditors year after year, most recently a few months ago when the court stated that revenue and payments were free from material error and that the examined supervisory and control systems were effective.

Finally, where the European Commission has prime responsibility for the European Union’s humanitarian aid and international trade, the EEAS may sometimes be able to bring a new perspective but in no way can it substitute for the Commission. In international trade, the Commission has made an outstanding contribution to the EU’s status as one of the largest consumer markets in the world and also one of the most open, including such initiatives as duty-and-quota-free access for all exports other than arms from least-developed countries, the almost complete reversal of the original common agricultural policy and the almost complete removal of EU export subsidies. This report will certainly contribute very useful material for the review. It is well timed and should be taken into account seriously in the review. I hope that it will be seriously studied and that a little later in the history of the EEAS we can claim that we have influenced the way in which it is going to develop.

17:18
Lord Kerr of Kinlochard Portrait Lord Kerr of Kinlochard
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My Lords, speaking as a non-member of the committee that produced this report, I join those who have paid tribute to its chairman, the noble Lord, Lord Teverson. He has been famous for some time for his skill in chairmanship. I had not quite grasped how skilful he is until I heard the terms in which the noble Lord, Lord Lamont of Lerwick, supported his report. I detected a slight element of dissent here and there, yet, looking at the report, I discover it is unanimous. I congratulate the chairman on his skill.

I also congratulate him on and join with him in what he said about the noble Baroness, Lady Ashton of Upholland. That tribute is very well deserved. What she has done on reconciliation between Kosovo and Serbia is quite remarkable and puts her up in the pantheon of those Members of this House who have made a real contribution to reconciliation and peacemaking in the Balkans. One could mention the noble Lords, Lord Carrington, Lord Owen and, particularly, perhaps, Lord Ashdown. We should note that what looked like a hospital pass has resulted in scoring a rather brilliant try. The game is not over, it is not even half-time, but she is doing extremely well.

So one has to ask oneself: is the European Parliament correct in its criticism? Are those who carp about the External Action Service and about the noble Baroness, Lady Ashton, right? I think that they need to ask themselves: in what situations is the Union prepared to allow the high representative to take the lead? First, there has to be a degree of common policy among the member states. For example, in Libya or Mali, she could not take the lead. The Germans even abstained in the General Assembly on the resolution. The Union was not united. The same, I fear, applies now in Syria.

The report is slightly Panglossian when it suggests that the External Action Service should focus particularly on the places that are of most importance to us in economic and security terms. Suppose that the noble Baroness tried to take the lead on China. The noble Lord, Lord Lamont, is right that the member states would not be prepared to allow her to do so. On the other hand, I think that the noble Lord is wrong when he says that there is no role for EU diplomacy, as distinct from member state diplomacy, on human rights. Sometimes, people find that there is safety in numbers. When one is dealing with, say, China or Russia, as we see, receiving the Dalai Lama can have consequences and criticising the murder of Litvinenko in London can have consequences. Sometimes, member states feel braver about speaking up for human rights if they are speaking up collectively. There may well be a role for the noble Baroness, Lady Ashton, there. Basically, the tasks that the Council tends to entrust to her are the ones that it thinks are too difficult. It is no accident that she plays a leading and very successful role on the P3+3 process with Iran. That was seen to be too difficult for any one of us to tackle on our own. We were very happy to put her in charge, and we were not all rushing forward saying, “We will handle Serbia and Kosovo”. When one accuses the service and its head of not yet having done a great deal, one should remember the constraints that we impose and the subjects that we pick for her.

I agree with a lot of things in this report. Unfortunately, on a couple of things with which I wish to disagree, my fox has just been shot by the noble Lord, Lord Jopling. He is entirely correct about consular work.

Lord Jopling Portrait Lord Jopling
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I hope that the noble Lord understands that I would never dream of shooting a fox.

Lord Kerr of Kinlochard Portrait Lord Kerr of Kinlochard
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A dull, grey metaphorical fox, not a beautiful red one.

The treaty is quite clear. Any citizen of the Union may seek consular assistance from the embassy of any Union member state. Of course, a financial transaction will properly follow. Suppose that an independent Scotland required consular services provided from the Foreign Office in its posts abroad, the bill might be quite substantial. The noble Lord, Lord Jopling, is right, and I think that the report is wrong. The Government agree with the noble Lord, Lord Jopling; perhaps they always do, perhaps it is the noble Lord who moves the Government on these matters.

On the central problem of overload addressed in the report, I think that the committee got it completely right. It is not the case that there was no thinking about how it would work. There was a lot of thinking and worry in the original Convention in which the noble Lord, Lord Maclennan of Rogart, served with such distinction. There was a text on the External Action Service produced by the Convention which was deliberately not put into the treaty so that it would not be subjected to the delays of ratification but people could start planning and building the External Action Service so that it was ready to go on day one. Unfortunately, they did not. However, that text did some of the thinking about what the External Action Service should do and what it is for.

As for the job of high representative, all of us in the Convention assumed that there would be two political deputies. The noble Lord, Lord Jopling, is right that they are needed. We assumed that there would be a political deputy whose job would be to chair the Council when the high representative was on a mission, to undertake some missions for the high representative and, particularly, to maintain contact with national Parliaments. The report is slightly pusillanimous on the relationship with national Parliaments. At paragraph 85 we are told that:

“The scrutiny role of the European Parliament should not go beyond its current level, as foreign policy is primarily inter-governmental and scrutiny should therefore be performed at the national parliamentary level”.

Yes, by national Parliaments. Physician, heal thyself. We need to devise a way of doing it. There also has to be a docking point. There has to be someone at the other end who is ready to talk to us. That is the political deputy high representative.

The problem is even greater inside the Commission. We all assumed that there would be another commissioner who would co-ordinate external relations dossiers, working to the vice-president external relations, which is the other title of the noble Baroness, Lady Ashton. That has not happened. We could not put it into the treaty because the definition as well as the allocation of commissioner portfolios is the prerogative of the incoming President of the Commission. However, we all assumed that it would happen, and I am very puzzled that it has not. I hope that in the next Commission it will happen. If people remember that the high representative is also the vice-president of the Commission, and if she is helped to do what used to be done by the Relex group of external relations commissioners—this is where the overload has shown most—the situation will improve considerably. I hope that will happen.

I should like to pick up on the question asked by the noble Lord, Lord Lamont, about the purpose of the External Action Service. I was a convert to it before I worked for the Convention. When the noble Lord, Lord Patten of Barnes, was commissioner in charge of external relations, he made a good appointment to head the Commission’s office in Washington. He appointed an Irish ex-Prime Minister, John Bruton, and John handled the job in a way that no one had done previously. It had been seen as a great job for a trade policy expert, trade policy being seen as an Eleusinian mystery, with high priests working with incense in darkened rooms.

Trade policy is hugely political. The point about trade policy, particularly in a place such as Washington, is to be known on the Hill and to be up there all the time, to be good on television and to be on television often, all the things that John Bruton was extremely good at. I am very sorry that his successor was not another political appointee. However, the External Action Service is supposed to be about producing secondees or breeding its own talent, people who do not only know about the subject but have the communication, diplomatic and lobbying skills which made Bruton so successful.

When Javier Solana, a distinguished Foreign Minister and Secretary-General of NATO, moved from NATO to do the job of high representative, he told me that he discovered that he was entitled when abroad to the assistance of a small council office in New York, a council office in Geneva and nothing more. The Commission sent out an instruction to all its delegations around the world that no assistance was to be provided to the high representative as he worked for the member states and was nothing to do with it. When he went to Washington, Javier Solana would go to call on member states’ ambassadors, but he had to book his own hotel. That is why dual-hatting—and it may seem eccentric—makes sense. Bringing together the two jobs of the high representative and the vice president in charge of the external dossiers of the Commission is, in principle, a good idea if it is put into practice. All these budgetary problems disappear. The noble Lord, Lord Williamson of Horton, is right, and I agree with him. There is no need to have this nonsense because the person responsible for these posts abroad is a vice president in the Commission as well as being a high representative.

I do not think there is such a thing as a purely technical mission. I think this report flirts with error when it suggests that the EAS should have no role in purely technical missions and should back off from where they are all trade, aid or humanitarian aid. I do not think so at all. What matters for effective trade or development policy is adequate access to heads of state and Governments and the ability to project what we are trying to do in the country in ways that are understandable—languages matter very much, as the noble Baroness said—and acceptable to the country. We need a more professional External Action Service, but we should not regard any of the jobs of any of the delegations around the world as unsuitable to be done by, or at least to be done under the guidance of, that service.

It is a pity that our Government still take such a defensive approach to the build up of this service. I hope that that will improve. I share the doubts of the noble Lord, Lord Hannay of Chiswick, about whether it is always wise to be so ferocious, usually on our own, while 26 others take a different view, on every last detail on the frontiers of competence.

I hope that the dual-hatted job will be built up still more and the External Action Service will bed down. The record so far, though patchy, is one on which the noble Baroness, Lady Ashton, deserves all our congratulations.

17:32
Lord Liddle Portrait Lord Liddle
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My Lords, I must apologise to the Grand Committee because, for unavoidable personal reasons, I probably have to commit the unpardonable sin of leaving the Committee before the Minister has concluded. I am very sorry about that, but I cannot avoid it. I will be very brief. First, I thank the noble Lord, Lord Teverson, for the work that he has done and for the many reports that this Committee has produced. This again shows the value of the work that our Select Committee does.

Secondly, I join the tributes to the noble Baroness, Lady Ashton, for the role that she has played in helping partly to settle the Serbia-Kosovo dispute. I would like to make clear, on behalf of the Labour Party, that we support the External Action Service and that we want to see its role developed, obviously as a supplement to British foreign policy and to magnify that policy’s impact.

The fact is, as the noble Lord, Lord Kerr, has explained, that what went before was dysfunctional, and the EAS is a great improvement. There is one point that I would like to ask the Minister about, and that is the role of Britain in this service. I agree with the comments of the noble Lords, Lord Hannay and Lord Kerr, about the hope that the Government would not be so reserved in their approach. One of the real worries that I have is about the proportion of British officials working in the EAS. The noble Baroness, Lady Coussins, raised this point. The service gave me figures showing that only 7.6% of the people working in the service are British, as opposed to our 12.5% share of the population. This is particularly true of member state diplomats: British diplomats make up only 2.3% of the numbers in the service as opposed to 4% for France. As a lot of the national diplomats occupy senior positions in policymaking in the service in Brussels, this is a demonstration of a lack of adequate British influence that I would like the Minister to address in his reply.

17:35
Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire
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My Lords, I should explain that it was a simple mistake that my noble friend Lady Warsi was put down on today’s list of speakers instead of me. I volunteered some weeks ago to take this debate because I had just made a speech at a conference for the Foreign Office on the development of the External Action Service, had done a considerable amount of work, had had briefings from officials and had talked to people in Brussels. It seemed rather idiotic that, my having put in that effort, she should then have to do the same and duplicate that work. This happens to be one of the few subjects on which I am mildly well informed, and I find this much more comfortable than answering questions on South Sudan, North Korea or other things that one occasionally has to do. I also thank the noble Lord, Lord Lamont, for his reference to the Coronation. I was indeed rehearsing in the Abbey this morning for the very small role that I will be playing in tomorrow’s service, but I shall be singing rather more deeply than I did some 60 years ago.

The Government are extremely grateful to the committee for this report, particularly for the speed at which it was completed so that it could feed in to the discussion at the informal Foreign Affairs Council in March. That helps very much to ensure that informed British views carry. We all know, and I have certainly experienced this many times in Brussels and Strasbourg, that reports from this committee are widely read and respected.

The Foreign Secretary has set out the Government’s position on the review in a recent letter to the noble Baroness, Lady Ashton, which has been shared with Parliament. In it, he welcomed the fact that the noble Baroness has set up from scratch a service that has now moved beyond the initial institutional issues to focus on a number of key foreign policy priorities. Like many of those who have spoken in this debate, the Government look forward to the EEAS continuing to focus on those areas where it can really add value by complementing and supplementing the work of member states’ diplomatic services.

Mention has been made of the valuable work on Iran. I add to what has been said in this debate that the value of the EU is sometimes that it appears to be slightly more neutral than individual states. In those parts of the world, particularly the Middle East, where there is sensitivity about the imperial past, and where echoes of the imperial past carry against Britain, France and sometimes others, the collective weight of the EU can therefore sometimes be more helpful. That is also true, to some extent, of the western Balkans.

I also noted the point made in the report about the collective weight of the European Union’s multilateral institutions. There are now some 28 states working together, with Croatia joining, plus a number of others often voting with them, which amplifies the weight of states like the UK when we all agree. The work of the E3+3, in which the noble Baroness, Lady Ashton, has been playing a collective role for the smaller states, has been very valuable in a number of ways. I note the subtle distinction between what I read in the American press about the P5+1 and in the British press about the E3+3. I am sure that the Committee understands the subtle distinctions in those descriptions of the same process.

I was quite surprised not to hear Members picking up the issue of the comprehensive approach. The issue of trying to build a much more comprehensive approach using the different levers of EU policy is part of what this has all been about. We note that the Americans, in some ways, envied the European Union in its ability to bring together aid, humanitarian intervention and a number of military instruments in the way that NATO cannot. Trying to bring together the EU-wide levers of influence, aid instruments, trade access and sanctions is very much part of what we are all attempting to do.

The noble Lord, Lord Hannay, asked me how this would help to promote policy coherence, to which one has to say that there are a number of aspects to this. The rivalry between different directorates-general in the Commission and between different Commissioners is a problem, but the extent to which domestic lobbies in different countries and their collective representatives in Brussels do their utmost to resist the policy coherence that he and I would love to have—for example, in trade policy toward north Africa and west Africa—so that trade policy does not cut across what we are trying to do in terms of development policy is something that we are stuck with as a problem of our domestic politics.

A number of noble Lords also spoke about the budgets. We have worked very hard to promote budget neutrality. We note the issue of high salaries. From anecdotal conversations that I have had, particularly with a number of people in the newer member states, I am conscious that if you come from a poorer state which is a net beneficiary of the EU budget, these issues may seem rather less important than they do to the net contributors. For those who have struggled away in national politics for some time, the thought of being appointed to an international post that will pay them far more than they are paid in their national Government has a real appeal. However, Her Majesty’s Government will continue to battle away on this front.

A number of people have also spoken about British representation in the institutions. We are very concerned to promote a high level of British representation in this new institution from the Commission, from direct recruitment and from secondees. Of course, there are problems with languages. The last time I was in Brussels I was talking with a senior official in UKREP about how we could encourage more British applicants to go through the concours to join the Commission and to gain the language skills needed. He said that by far the best way was to get them to marry someone from another country so that they will then acquire the language and, furthermore, they will agree that it is easier to live in Brussels than either of their home countries. Perhaps that is the gospel of despair. I say to the noble Baroness, Lady Coussins, that we all recognise that have a great deal to do in this country on languages. The international languages, such as French, particularly for Africa, Spanish, particularly for Latin America, Arabic and Mandarin are extremely important and that requires a concentrated effort in schools as well as in universities. The noble Baroness knows as well as I do that applications to study languages at universities have been going down in recent years and that is one of the reasons why language departments in universities have been shrinking. That is all part of what we need to reverse.

A number of noble Lords also spoke about turf wars. The other day I heard from someone about the current tour of the head of the World Bank and the United Nations Secretary General to Congo. The remark by this international civil servant was that this was the first time they had managed to do something on such a good note between these traditionally deeply suspicious and uncooperative institutions. Rivalry among institutions, sadly, is a mark of international bodies. It helps that the new American head of the World Bank speaks Korean as his own language and the current Secretary General of the UN is a Korean. We have to work to reduce these turf wars.

That takes me into the question of deputies and competencies because, as the noble Lord, Lord Kerr, mentioned, the idea was that we would have clusters of commissioners and that the Relex group of commissioners would meet regularly. I regret, and the British Government regret, that the Relex group of commissioners has not met as regularly in the current Commission as it did in the previous Commission. Now that there are 28 commissioners, Her Majesty’s Government would very much like to move in the next Commission to a much greater dependence on clusters of commissioners, with vice-presidents, in effect, as their chair, and it seems to us entirely appropriate as part of that that one of the clusters should be an active group of external commissioners working more closely together. That would also help to reduce the element of turf wars with different commissioners and their different directorates-general promoting nuances of difference against each other. It would certainly reduce some of the weight which overloads the current high representative.

The noble Lord, Lord Teverson, spoke about the importance of understanding the difference between large state interests and small state interests, which is fundamental to all this. It is quite clear that for small states the EEAS is a tremendous boon. It gives them knowledge and representation in states which they had not covered before. For large states, that is less essential, although, as the squeeze on our budgets persists and as the number of member states in the UN expands beyond 190, it is not possible for all of us to be represented in all those places. Indeed, there are a number of places where the EEAS is represented where the UK is not.

Pooling and sharing is part of what we are moving towards in this area as in the common security and defence policy. We are now co-located with the Germans in Antananarivo in Madagascar as part of moving the British back into resident representation there, and also in Quito, Pyongyang and Reykjavik. I have visited the building the British and Germans have in Reykjavik on several occasions over the past 10 years. We are co-located with the French in Chisinau and Valetta, with the Dutch and the Danes in Baghdad and Beirut, with the European Union, the Germans and the Dutch for some years now in Dar-es-Salaam and with the EU, the French and the Germans in Bishkek and in Astana, a new national capital, jointly with the EU, the French, the Germans, the Italians, the Dutch and the Austrians. We are working together practically where we can and it provides greater coherence. As I have travelled around, I have experienced generally extremely favourable comments from British ambassadors about the utility of EU delegations on the spot, particularly in countries some distance from the EU, and the way in which EU embassies—often only a few EU embassies—and the resident EU delegation have learnt to work together. There is common political reporting—of course, you cannot say everything because, in a group of 28 member states, not everyone has the same attitude to confidentiality and so sometimes you cannot put everything into a joint telegram that will be circulated around all 28 members—common intelligence and common representation to the host Government.

We have some problems with the way the EEAS was set up. As the noble Lord, Lord Lamont, said, and I had some sympathy with his speech, it was brought into being before its purposes had been entirely agreed. It is not the first time that has happened with an international organisation or a European institution. I am not at all sure people knew what the International Labour Organisation was going to do when it was created after the First World War. That is one of the reasons why we have some of these problems with the institutions. However, now that the EEAS is there, we have to make the best of it, and we certainly need to have as coherent a policy as we can in all of those areas where member states can agree a common policy.

Perhaps the committee will now move on to look at the question of whether we can agree a revision of the European security strategy for next December’s meeting of the European Council, which will focus on the common security and defence policy. It may be impossible to agree on a common EU security strategy again because we have not yet reached a sufficiently shared approach. That is why national Parliaments and committees meeting together for a more coherent dialogue on foreign policy and defence, and a common approach between national Parliaments, is what we need to encourage. I am glad to hear that that is developing more effectively through COSAC and other areas.

The noble Baroness, Lady Coussins, asked about more engagement with Latin America. I am glad to be able to tell her that the new head of the European delegation in Bolivia will be a British national—who, I assume, must have absolutely fluent Spanish—on secondment to EEAS. There is a clear recognition that the EU has to be in partnership with many other South American states apart from Brazil.

I have discussed the question of language. I hope that I have answered the questions of the right reverend Prelate the Bishop of Derby about structure. We need not only the right structures but a more coherent approach. That requires active dialogue among political elites and others in various countries to agree a common approach, which is often lacking. Those in the south look naturally to north Africa, those in the east look naturally to their eastern neighbourhood, and we have different sets of priorities and assumptions.

The right reverend Prelate talked about commitment to human rights and a values-based approach to foreign policy. Her Majesty’s Government were being criticised in Brussels the other week for having what others regard as a rather transactional approach to the European Union. I look forward to hearing the Church of England collectively demanding that we have a much more positive approach to European Union co-operation because we share values with our neighbours across the continent, something that the Daily Mail is not always willing to accept. I have also answered the question on the clusters of commissioners and touched on the question of the role of national Parliaments in promoting dialogue.

I think that that enables me to say that I have answered the three points raised by the noble Lord, Lord Hannay, on deputisation, turf-fighting and policy coherence. Let me therefore end by saying that the Government believe that the European External Action Service should focus on priorities agreed by member states in the Council. It should complement the member states’ diplomatic services, not replace them. Where there is no agreement among member states, we cannot expect the EEAS to bring coherence that reflects the nature of EU common foreign and security policy, but I hope that your Lordships agree that our current Foreign Secretary has been extremely active in working, above all, with our French and German partners and the other large, active diplomatic states to promote common positions where possible and, as far as we can, to carry the other, smaller member states with us in common policies toward our eastern neighbourhood, the deeply disturbed Middle East and the many weak states of Africa in which we have been active.

We look forward to the noble Baroness, Lady Ashton, issuing her review of the EEAS in the summer. We very much welcome this constructive input into the debate. Her Majesty’s Government will respond to the review of the noble Baroness, Lady Ashton, when it is completed. I thank all those who have contributed to this debate. The committee is extremely valuable and I look forward to the many future reports it will produce under its new chairman, who was once my boss and with whom I once wrote a short book on the future of British foreign policy in the 1990s.

17:54
Lord Teverson Portrait Lord Teverson
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My Lords, I am not sure that that declaration of interest should not have been made at the beginning of the speech, rather than at the end. I thank all noble Lords for their contributions. I thank my noble friend Lord Wallace for stepping in. Goodness knows what would happen if the Government always put forward the person who knew about the subject rather than the one they would put in otherwise. That might really do something to change the way we work.

I am going to comment on only one statement, which was made by my noble friend Lord Lamont, whose contribution to this report was truly excellent. He mentioned that he had spoken to our ambassadors about the EAS and that they had been somewhat disparaging about it. Funnily enough, I do the same and get exactly the opposite reaction, which shows how good our diplomats are at giving us the message that they know we want to receive. The EAS should perhaps learn from that example.

I am not going to say anything more about the report. It has all been said. However, I do want to say to members of the committee who are here, and past members, that I found it a great honour and privilege to be chair of the committee over four Sessions. Thanks to everybody’s contribution, it has been the best job you could ever have in this House, with no disrespect to anybody else or any other office. I particularly want to thank the clerk of the committee who served the whole of that time, Kathryn Colvin, who was excellent in the innovations in her report writing and in the way she supported the committee. I also want to thank Roshani Palamakumbura; her predecessor, Oliver Fox; Ed Bolton of the secretariat; and his predecessor, Bina Sudra. My noble friend Lord Tugendhat, who I am delighted has now taken over the chairmanship of the sub-committee, has great topics to look forward to and a great committee to lead and chair. It has been a great privilege for me.

Motion agreed.

EUC Report: EU Sugar Regime

Monday 3rd June 2013

(10 years, 11 months ago)

Grand Committee
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Motion to Take Note
17:59
Moved by
Lord Carter of Coles Portrait Lord Carter of Coles
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That the Grand Committee takes note of the report of the European Union Committee, Leaving a Bitter Taste?: The EU Sugar Regime.

Lord Carter of Coles Portrait Lord Carter of Coles
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My Lords, I chaired Sub-Committee D—the sub-committee on agriculture, fisheries, environment and energy—when this report was produced last year. Sadly I have now stepped down from that position, but happily I have passed the baton to the very able hands of the noble Baroness, Lady Scott of Needham Market.

Before moving on to the detail of our report, I want to deal with a procedural matter. We published our report in September last year. A response was received quite promptly from the European Commission in March. Despite repeated prompting, though, we received a response from the Government only last Wednesday, almost seven months late, and I suspect it may only have been the pressure of today’s debate that produced it at all. Members will know that receipt of a government response three working days before a debate, and during recess, does not provide ample time for preparation for a parliamentary debate.

We recognise the challenges of the last few months, which have seen the parameters of this debate shifting on a regular basis as the common agricultural policy negotiations have progressed, but the lack of communication from the Government during that process has been lamentable. We trust that there will be no repeat of this disregard of Parliament in future.

I turn to the substance of today’s debate. The EU sugar regime might sound like a very niche, distinct and rather arcane area. However, it has widespread implications. The first is that sugar remains one of the most protected sectors under a CAP that in other respects has slowly made progress towards a more liberal regime. Secondly, like it or not, we all consume sugar and it is our contention that we, as consumers, pay more than we should as a direct result of EU policy. Thirdly, the regime also has significant implications for developing countries, and I shall come back to that point.

At the time of most of the reform of the sugar regime in 2005, we undertook an inquiry and welcomed that reform as a necessary step, although even then we regretted that more extensive proposals had not been pursued. Since then there have been critical reviews of the regime, not least by the EU’s Court of Auditors. Indeed, in 2011 the European Commission tried to identify some of these shortcomings in its proposals to reform the common agricultural policy. For that reason, we decided to undertake a short inquiry into this subject last spring as part of our contribution to the debate on the reform of the CAP, knowing that the future of the EU’s sugar regime would be a closely fought tussle in those negotiations. We were also keen to ensure continuity and follow up on our earlier report.

I turn first to quotas. The EU’s sugar policy is not something of which we can be proud—in fact, it is not sweet, it is rather bitter. It is still a policy that restricts both the production of beet sugar in the EU and the import of cane sugar from third countries into the EU. Changes made in 2006 have ensured that the EU’s minimum price is there, yet we do not have a guaranteed minimum price. That is a rather contradictory position.

There was a clear division of opinion among our witnesses as to when, and even if, production quotas should be abolished. Some argued for an extension of the system until 2020 in order to allow the sugar beet industry to restructure further and prepare itself for the onset of the world market. Others—quite logically, those on the receiving end of an uncompetitive market—argued for the immediate end to quotas. This included the industrial users of sugar, such as manufacturers and producers of confectionery products and the like.

However, that final grouping also included the importers of raw cane into the EU for refining, specifically Tate & Lyle. Their position was that either they should be protected against the market or both the beet and cane sectors should be liberalised—a logical position. We took the view that neither the cane nor the beet sectors should continue to be protected and that this would involve both the abolition of production quotas and the easing of import tariffs on raw cane sugar. We acknowledged the difficulties of negotiating this, but suggested that in the event that production quotas could not be phased out by 2020, they should certainly end at some point between 2015 and 2020.

It is pleasing to note in the Minister’s response that the Council’s negotiating mandate extends quotas only until 2017, although that has to be negotiated finally with the European Parliament, which itself favours 2020. I would very much appreciate it if the Minister could share any further intelligence with us, including how the Government are working to ensure a positive outcome in this respect.

We also recommended that, as part of a package to assist with the negotiation over the ending of quotas, support should be available to remove inefficient production. Interestingly, the Government disagree, noting that there is no justification for the spending of such money. Let me be clear: we supported the use of such funding only as part of a compromise package. It is unclear to me, frankly, how the Minister expects to be able to negotiate the 2017 date without some form of financial compensation. I would welcome clarity on that subject.

I turn to the issue of price and competition. One consequence of the protected sugar industry is that costs to the consumer are higher than they should be. We were struck by the findings of the EU’s own auditors, the European Court of Auditors, which concluded in 2010 that changes in the EU market price for sugar were not passed on to the consumer. Between 2006 and 2012, the average price of a kilo of granulated sugar in the UK rose by one-third, while the market price increased by only 16%. Clearly there is a widening of margins somewhere.

We concluded that the consumer is the missing stakeholder from the debate on EU sugar policy. The Commission refuted that argument in its response to us, noting that:

“Consumers are consulted in the framework of the High Level Forum for a Better Functioning Food Supply Chain”.

That seems hardly a very consumer-focused body to us, so it is no surprise that we remain unconvinced about this.

The Government say that they have used every opportunity to raise awareness of the impact of this policy on consumers. I should be grateful if the Minister could tell us whether the Government’s work has influenced the course of negotiations on sugar, and indeed generally on the future of the common agricultural policy in any way.

We noted that this is a highly concentrated industry; as we heard, only six companies account for almost 80% of sugar production quotas. The European Competition Network, a network of national competition authorities and the European Commission, has been very critical of the concentrated nature of the industry. The Government confirm that the sector is in the spotlight and that the European Commission undertook an unannounced inspection on 23 April at the premises of companies active in the sugar industry in several member states.

The Commission noted in its response to us that it is conducting its own study into price transmission in the sugar sector, which I understand should be available imminently, and we are keen to see what it says. We are pleased to note that the UK’s Office of Fair Trading is assisting the Commission in its work. I urge the OFT and the Government to be very vigilant in this area.

Another issue that we are keen to see explored is risk management. We observed that most sugar producers are a risk-averse group, which is why they have a strong preference for continuing the protection available under the current regime. The reformed CAP contains some support for risk management, including support to help farms and groups of farms manage their own risk, making use of private sector insurance mechanisms. This is important; it is trying to make industries use the private sector instead of always relying on the state to somehow mutualise the risks that they face. This is a theme that we have referred to many times in our reports.

The Government are imprecise in their response about their preferences regarding risk management. I would welcome an update from the Minister on the state of play of risk management in the CAP negotiations and what the UK’s current priorities are for that aspect of the negotiation.

I want to focus on the importance to beet growers, in terms of managing their risk and in the light of the concentrated nature of the industry, of clarifying the relationship between beet producers—that is, the farmers—and processors such as British Sugar, Nordzucker, Suedzucker and all those big organisations. The proposals to reform the CAP insist that this relationship be covered by a written agreement but do not set out what should be included, which is in fact a step back from the status quo. The Commission insisted in its response that such detail can be set out later in secondary legislation. I would welcome an update from the Minister on where that debate has reached.

One of the recurring themes on our committee has been that of research. We emphasised in this case the importance of basic and applied research in sugar, supported by adequate knowledge transfer: that is, getting the research from the lab into the hands of farmers. We recommended that the Government assess whether research efforts in this industry are in line with the needs of consumers. The Government appear content that all necessary basic and applied research is being undertaken and is sufficiently funded. Sadly, we do not share the Government’s confidence on that matter. While we agree that the industry is particularly well placed to identify its needs, at least in terms of applied research, it is important that science is able to feed in basic research and to be financially supported in its efforts. It is only through this sort of research that we will maintain in Europe the lead in technology that we need to maintain our position in the world and in trade. There will inevitably be a tendency by industry to focus on low-hanging fruit, but I urge the Government to take a greater interest in this important part of the chain.

The African, Caribbean and Pacific bloc and the so-called least developed countries, the LDCs, have had preferential access to the EU’s sugar market and were therefore negatively affected by the reduction in the EU’s sugar price after the 2006 reform. A helpful package of transitional measures was put together, known by the lengthy name of Accompanying Measures for Sugar Protocol countries funding. We heard that almost €1.2 billion had been allocated to this, yet much of it had not reached the intended beneficiaries. This was due in part to insufficient resourcing in the Commission’s offices in those countries. It is very sad that the money was available but we could not find a way to spend it. That is clearly an issue for the Commission to address. I am glad that the Government similarly recognise the problem and that they will seek assurances from the Commission that local offices will be sufficiently resourced.

In evidence to us, we were favourably struck by the Minister’s condemnation of the plan for further reform, which in his view almost entirely ignored the needs of developing countries. He emphasised that the Government have an obligation to find ways to support them, and we support that.

It was surprising to note from the Government’s response that some progress had been made in negotiations on the European Development Fund. The response indicates that funding available to many of the sugar-producing developing countries will support interventions that have the most impact on the critical areas of poverty reduction, job creation and economic growth.

These developments are helpful and important, but I would caution against any complacency. We have had seven years of little action on this, and I urge the Government to ensure that they are assiduous in their work with the Commission on monitoring the effect of the new reform and ensuring that the money that has been allocated gets spent.

I have spoken today on behalf of the committee and I pay tribute to its members, whose engagement with this subject gave our inquiry both energy and effect. I also pay tribute to our clerk of the committee, Kate Meanwell, and to Alistair Dillon, our researcher, both of whose endeavours on our behalf made us better informed and better able to produce this report.

The common agricultural policy continues to be reformed, albeit slowly. It is extremely disappointing that there are sectors within it, such as sugar, that proceed at such a glacial pace along that path. Certain industrial concerns dominate while the interests of consumers and developing countries are virtually ignored. This is not a situation that we should tolerate, and I look forward to hearing from the Minister how the Government’s attempts to promote reform are bearing fruit in Brussels. I beg to move.

18:14
Baroness Byford Portrait Baroness Byford
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My Lords, I thank the noble Lord, Lord Carter of Coles, for introducing the debate. I thank him for having chaired our committee for several Sessions. As he said, he is now handing over to the noble Baroness, Lady Scott of Needham Market, and we welcome her. The noble Lord has done a wonderful job for us on several reports.

My family’s farming interests meant that I had to withdraw from—or, I would rather say, did not take part in—this report. On our farm in Suffolk we grow about 100 acres of sugar beet. I therefore felt that it was not correct to take part in the report. I have not had the advantage of listening to the evidence given, so I am looking at this from a slightly different point of view. However, I was shadow Minister at the time when we debated the earlier reports, and I re-emphasise the frustration that the noble Lord, Lord Carter, has described that things move very slowly with regard to sugar reform. It reminded me of the occasions when we had reports from EU Sub-Committee D on fisheries. We were talking constantly about discards but for month after month and year after year nothing seemed to be done. However, to encourage us, at least that has now made a start and I hope that today’s debate will move things forward. To some extent, I have read the report from an outsider’s point of view, but before I go further I apologise to Members of the Committee if my words take them over a trail they have already travelled.

The report, Leaving a bitter taste?, was published in response to the many questions raised by the 2006 report. If it had been a direct response to the plight of the least developed countries to which the noble Lord has spoken, particularly those in the Caribbean, I would have applauded it even more than I am able to applaud it today. I share the frustration. For many years we have looked at what we could do to help our colleagues in those countries but, as we have heard, not much progress has been made.

The figures from the FOA quoted two weeks ago in the “Food Programme” on the radio showed that white sugar consumption per head per annum averages 12 kilograms in China, 27 kilograms in the UK, 33 kilograms across Europe and 25 kilograms globally. Assuming that we are moving towards a world population of 7 billion, that means that a world white sugar market of 175 million tonnes is likely in the future. Clearly we want to free up this market so that it can fulfil its role.

I am a little disappointed that we still have problems some seven years after the 2006 changes. These were highlighted in paragraph 12 of the report and were driven by the WTO ruling that the EU was subsidising its sugar exports by guaranteeing producers prices above world levels. As the noble Lord, Lord Carter, said, it is the most protective regime in existence.

Paragraph 13 summarises the effects that the regime change has across Europe. Here in the UK, prices for sugar beet fell, production was reduced and a number of processing factories have closed. The anticipated rise in raw sugar imports for refining did not happen. The beet processors built refining capacity, and I understand that Mauritius has started a refining industry. The outcome is a UK refining industry reportedly running at 60% capacity. The EU reference price has been brought down but the current market price for white sugar is some 16% higher than it was in July 2006. As a consumer, my observation of local shops is that the price is a further 13% or so above the market price in those days.

Surely the combination of sugar beet production quotas and the tariffs charged on raw cane and refined sugar can only be acting to keep the consumer price up, which I am sure we do not want to see. If you take another view, that might not be a bad thing in the light of the research findings on the damage done to our health by sugar consumption. I wish, however, that the arguments for the retention of tariffs and quotas were not put in a way that makes me think of the protection of EU income coming from the former and the benefits to France and Germany from the latter.

Having said that, however, I remember that Janet Young on many occasions introduced dinner debates in the House on the way in which we could help the ACP and less developed countries. She continually drew our attention to those former Commonwealth countries whose livelihoods depend almost entirely on raw cane, coconut and bananas. Following on from the questions of the noble Lord, Lord Carter, in that context, I would like to ask the Minister which countries have received transitional assistance, whether it has all been dispersed, and whether he is able to tell us how it has been spent. The noble Lord mentioned that there were not enough personnel to make this happen, but I wonder whether there is a broader picture to follow here.

In the event that further assistance is required, I am convinced that, whatever happens in the future, there must be a time limit on sugar quotas and a date set now to help prevent the manipulation of the market in future.

Surely China’s per-head consumption will continue to rise over the next decade, and the question has to be how the ACP countries and the less developed country producers could be helped to take advantage of the situation while making clear that this will be a short-term help and that they will have to stand on their own in future years. I am not quite clear from the report, not having heard the evidence, what it really is that is stopping the ACP countries from being able to process and develop, or whether they are continuing just to export their raw materials. If that is so, what steps could be put in place to help them to add value to their initial crop?

Here in the UK, farmers have grown beet for many years, with 50% of the sugar that we use coming from sugar beet that we have produced. With the CAP negotiations well under way, I would like to add to what the noble Lord, Lord Carter, has mentioned, that the CAP is looking at ways in which farmers will be encouraged to spread their crop production—in other words, not just wheat, rape and barley. In fact, for many farmers sugar beet is a good crop break because it puts goodness back into the ground, so from a cereal farmer’s point of view it is an important break. At the end of the day, however, it will be important that whoever produces the sugar, whether beet or cane, can make sufficient money out of it or they will not continue to grow it. In this country and in Europe, they will grow something else. Again, though, that is not a possibility for the ACP countries.

I understand that the market price for white sugar is something like €710, which is roughly £600 per tonne or 60p per kilo. Prices paid to farmers vary, but somewhere between £28 or £30 per tonne should be possible to obtain. That is 3p per kilo, and my observed off-the-shelf price to the consumer is about 79p per kilo. Does this perhaps ring a similarity with what happens with our dairy farmers across Europe? The question has to be: what is the reason for the price rising so much for the consumer while the actual producers of the cane and sugar beet have not grown? Changes to bagging and distribution and to the retail technology should surely have managed to counterbalance some of the rises that will have occurred, especially perhaps within fuel. Maybe the Minister can throw some light on the situation.

Both the report and the Government’s response make reference to inefficient production. That makes my mind wonder what is inefficient. Is it the growers, the producers or the people at the other end? Perhaps the Minister can tell us a little more about that—whether it is on the growing, the refining or the processing side, and which countries it occurs in the most, because we are looking across the whole of Europe.

I endorse the committee’s recommendation as laid out in paragraph 33, although I do not put out too much hope for an agreement in recognising the changes that were made before 2006 being taken forward.

The report is very worthy and goes into quite a bit of detail. However, to me, there are three real issues: first, the whole question of quotas and import restrictions; secondly, the ACP countries; and, thirdly, the CAP and where we are going in future years. I have had briefings, as perhaps have other noble Lords, from the UK Industrial Sugar Users Group, which has highlighted the need for wide-ranging reform of the EU sugar regime without delay. It goes on to suggest in that briefing:

“The competitiveness of manufacturers of products containing sugar is severely impacted by existing EU sugar policy”.

We should bear in mind that this is a huge sector that employs about 70,000 people, with a turnover of more than £12.3 billion, accounting for about 70% of the sugar usage in the UK. A little further on, it says:

“The mistake is graver because the maintenance of sugar quotas will not benefit European farmers and the EU sugar sector overall either: shortage of domestic supply, growing global demand and rising world prices are opportunities that European farmers and sugar processors can exploit if the production and export restrictions that the quota system imposes are removed”.

I have tried not to view it from a producer’s point of view but there are clearly things that the report identified very specifically, which I would like to highlight and reflect in this short contribution. I thank the noble Lord, Lord Carter, again for initiating the debate.

18:26
Earl of Caithness Portrait The Earl of Caithness
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My Lords, I, too, thank the noble Lord, Lord Carter, for introducing this debate, which is very timely considering the negotiations that are going on with the reform of the common agricultural policy in Brussels and elsewhere. I have found it a huge privilege to serve on the committee for a number of years. My time is up and I have now moved on, but it has been a great pleasure working under the noble Lord’s chairmanship. His fairness both to us as members of the committee and to those whom we interviewed became one of his hallmarks.

One of the other hallmarks of his chairmanship was the noticeable improvement in Defra’s communication with the committee, which has now come to a grinding halt with this report. It is extraordinary that I received notification that the government reply had finally been received, after numerous requests from our clerk and endless telephone conversations, when I was in Romania last week. It is a wonderful place. It used to be a communist country and grows its own sugar. I managed to ask some of the farmers there what they considered would be an appropriate response, and I can tell my noble friend Lord De Mauley that his officials would all get promoted under the communist regime. The farmers felt that the bureaucratic system that they endured was nothing compared to what we are enduring in this country at the moment.

I really hope that my noble friend will get a grip on his officials. It is treating Parliament and the committee with contempt that we did not get a reply for nine months. Even the European Commission got its reply in during March. Perhaps my noble friend will take the message back to his department and ask his Secretary of State to write to the Leader of the House and apologise for what has happened.

Much that I wanted to say has already been said, which is a great relief and one of the advantages of talking in the House of Lords. I will concentrate on two points. One is paragraph 31 in our report, where we rowed behind the UK Government’s position that quotas must be abolished in 2015 and import tariffs on raw cane sugar eased. However, the game has changed. The Government have already agreed, as I understand it, to support the Commission in relaxing the date for the abolition of quotas from 2015 to 2017. Why did the Government do that? Why did my noble friend’s department move the goalposts in the middle of the CAP negotiations? What did we get for it? There has been a huge protectionist influence on the sugar regime, as was pointed out by the noble Lord, Lord Carter, and my noble friend Lady Byford, and yet we have already given way on this. It seems ludicrous to me; if there is a good explanation perhaps my noble friend could tell us.

On the points raised by the noble Lord, Lord Carter, on consumers, I thought that the Commission’s reply from Vice-President Šefcovic was perhaps a little arrogant, complacent and offhand towards the work of the committee. He was very dismissive of some of the suggestions that we put forward for the Commission. The noble Lord quite rightly highlighted the fact that precious little had been done on working with consumers, who, at the end of the day, are the ones who pay the bills. Have the results that were expected in February 2013 on the EEC study come in yet, and what are they?

In his letter, the vice-president states that the EU will undertake that in future, when the regime continues, the EU sugar growers and the EU sugar undertakings should have mandatory written contracts. I would be grateful if my noble friend could comment on that, on whether the Government find that acceptable and in what form those contracts will be.

The presence of my noble friend Lady Byford was hugely missed on the committee. It is one of the sadnesses of the ways in which some of our rules are interpreted that she could not take part. Her knowledge as a farmer and beet grower would have been immensely useful. She highlighted the briefing that we have received from the UK Industrial Sugar Users Group. I found that particularly interesting because it updates the graph in our report at figure 1 on page 11. It highlights how, since 2006, the EU sugar regime has failed. In July 2006, the EU average price for white sugar was 75% above the world market price in London and for a brief period in 2010 and 2011 they were about level. Then there was a coming and a going, but the work that had been undertaken and the falls that occurred started to work.

Since then, things have gone seriously wrong and the gap between the world sugar price and the EU reference price has increased from 75% to about 90%. That surely underlines the need for comprehensive reform of the sugar market. Unfortunately, it is already clear that that will not happen. The protectionist elements in Europe—other member states—are winning the battle. Employment opportunities in this country that are currently available will be in jeopardy unless significant reforms are undertaken. The industrial sugar market accounts for 70,000 people, with a turnover of about £12.3 billion, and that accounts for 70% of the sugar usage in the UK. It must be to our farmers’ advantage, to our employment advantage and more particularly to the consumer’s advantage that sugar is moved forward. Instead of it being a bitter pill, it should become a sweet pill.

18:34
Baroness Parminter Portrait Baroness Parminter
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My Lords, I am another member of the sub-committee which co-authored the report, and I, too, thank the noble Lord, Lord Carter of Coles, for introducing this debate and for being such an excellent chairman. When I came into the House, less than three years ago, I was pretty much a new girl in the committee. The noble Lord was nothing other than welcoming to me and ensured that all of us had our voices heard—those of us who are producers and those of us who are concerned about consumers and animal welfare. He has had a fantastic manner throughout, which has been to the benefit of the committee and its work. I am grateful to have the opportunity to put my thanks for that in Hansard. We welcome Ros but I am very grateful to Patrick.

A key outcome of any sugar reform should be to ensure that consumers pay a fair price. That is, fair in there being good reason to justify any product support—in this case, by the CAP—that they pay through their taxes; fair in terms of the price at the till; and fair in pricing and the externalities of the product, which in sugar’s case is its impact on human health.

I commend our chairman for the timely production of the report, if not the Government for their less than timely response. The report contributes to the debate on the reform of the common agricultural policy and, in so doing, addresses the first two of those issues about fairness of price. It supports, as do the Government, a vision of a more market-oriented agriculture where taxpayers’ money, distributed through the CAP, is used for rural development and environmental outcomes which help to build resilience to the impact of climate change and halt biodiversity loss.

It concludes that past reforms failed to bring the price down for the consumer at the supermarket and that there are insufficient good reasons to continue sugar production support. Following past reforms, as fellow committee members have highlighted, the EU price of sugar fell, but savings did not get into consumers’ pockets. That is unacceptable, but nothing in the current reform process looks as though that is set to change.

Like the noble Lord, Lord Carter of Coles, I would like to hear the Minister’s current assessment of the likelihood of the sugar quota slithering on, as the Secretary of State so eloquently put it when he addressed our committee on 15 May. What are the chances of a reasonable timeframe in which to abolish it being adopted, or will it be dragged, aided by the European Parliament, into the next round of CAP reform?

That failure to deliver lower costs for consumers in a market with few significant operators needs a spotlight shone on it. I therefore endorse the report’s call for an investigation by the Office of Fair Trading, in collaboration with competition regulators in other EU member states, to assess the extent to which sugar consumers are getting a fair deal. In the Government’s reply to the report, they highlight what the EU competition authorities and the OFT have been doing about suspected anti-competitive practices. I look forward to hearing from my noble friend whether he thinks that what they are doing is enough or whether he supports the report’s call for a full investigation of the sector.

The report reflects the strong views from the health sector that sugar is a health hazard for consumers, particularly for children, but it concludes—rightly, I think—that the control of sugar consumption on health grounds should be achieved by member state taxation and regulation policies rather than justifying EU-level continuation of market distortion.

In the face of the growing obesity challenge that this country faces, “nudging” consumers to adopt healthier lifestyles cannot deliver the pace of change required. The idea of the Government intervening to change people’s behaviour will often be controversial, but it should not be discounted when failure to do so is having adverse societal and environmental impacts and when there is clear evidence to show that such measures could work. The House of Lords Science and Technology Committee report on behavioural change in 2011 made that case very strongly.

Taxing foodstuffs such as sugar, which can cause health problems by contributing to our rising obesity epidemic—which is particularly alarming among young people—should now be actively looked at as a means to help consumers to make more positive food and drink choices. Taxing foodstuffs has become more prevalent in fellow European states over recent years. France, for example, has introduced a tax on sugary drinks.

Current CAP reform discussions show that the Government may not be able to secure support for the recommendations of the report, but it is within their power to launch a consultation on fiscal incentives and their potential to promote healthier lifestyles. Do the Government intend to do so and to ensure that consumers pay a truly fair price for sugar?

18:39
Lord Palmer Portrait Lord Palmer
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My Lords, I rise to speak very briefly in the gap. Having served in several Sessions on Sub-Committee D, I re-emphasise the point made by the noble Lord, Lord Carter: it really is a scandal that this report has taken so long to be debated. I feel very strongly that it is an insult to the members of the committee, knowing how much they have to work, read papers and so on. There was one such occasion when I was on the sub-committee when it was more than a year after our report was published that it was finally debated. I want to put this on the record. I think it is a scandal.

18:40
Lord Knight of Weymouth Portrait Lord Knight of Weymouth
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My Lords, I, too, congratulate my noble friend Lord Carter on introducing this debate. I think that I am the first to speak in this debate who is not a member of the committee, so I congratulate the committee as a whole on an excellent and concise report, which has been mirrored by this debate. I, too, aspire to be both excellent and concise in making my comments now, though I feel somewhat more confident in one than the other. I will leave it up to the Committee to judge which.

The EU sugar regime is impossible to defend, and I am pleased that no one has sought to do so today. Coming to this fresh, it is difficult for me to think of a worse example of the problems of the common agricultural policy and the need rapidly to reform away from the legacy policy enshrined in this regime.

In trying to understand EU matters, it is always easy to get bogged down in jargon. When I read the response from the vice-president to the committee, I was reminded of some of those problems. The noble Baroness, Lady Byford, read out a particularly interesting section on how consumers might be able to engage with the High Level Forum for a Better Functioning Food Supply Chain. It goes on,

“In this context, consumer organisations have supported the work done under the B2B platform of the High Level Forum”—

blah blah; it is a lot of euro-babble. I would therefore like to think how I would explain it to a lay person. What would I say? This is an attempt, based on my efforts to understand the regime.

It was established 45 years ago as a Common Market organisation to protect producers of sugar. It does so, as I understand it, by using taxpayers’ money to pay a direct subsidy to producers and by setting a minimum price paid to producers by sugar factories. At the same time, we are also subsidising some of these farmers through rural development grants—and this is to produce a product that we know is unhealthy, leading to obesity and with some links to cancer.

Having then interfered with the market once, we are then locked into a spiral of constant, costly market interference. To prevent overproduction in response to the generous price, and to in some way control the cost, there are then quotas to set a limit on production. Production in excess of the quota is known as out-of-quota sugar and strict rules then govern its use. It can be exported up to another limit, sold for biofuel or other industrial non-food uses, or be counted against the following year’s quota of sugar. The quotas can be varied to try to keep up with changes in the amount of sugar that people want to buy.

So far so good, in terms of the story, but of course it does not end there, because some of the poorest countries in the world grow sugar cane. Although we know that those countries would be better off if they refined it themselves, we like to import it and refine it here. Indeed, when our beet production was limited, some of our refiners adapted to refine cane sugar themselves as well. So, we give free access to preferred poorer countries to fill the gap between what we allow ourselves to produce and what we need. Fair enough— as the noble Baroness, Lady Byford, reminds us, these countries need the help—but they get it on our terms.

However, it seems that the Commission is very bad at giving extra money to help those countries produce the cane sugar we need, so we have to make up the shortfall, which we do by importing from other countries, rather than, say, allowing ourselves to produce some more. We sometimes pay our beet producers to store some sugar so we can release it on to the market to make up for shortfall, but we are normally too slow to do this because the Commission is not proving that good at responding quickly.

I may have misunderstood some of the detail but that appears to be the story from my reading today. It is a story that could have been written by the most swivel-eyed of Eurosceptics. It is madness and needs to change. At no point are consumers accounted for and, despite all this public money, consumers are paying a lot more for sugar, as the noble Baroness, Lady Byford, set out so well.

Of course, it is easier to say what is wrong with the system than how we get from where we are now to a market-based system. I welcome the committee’s report, which is sensible and discusses the risks for ACP and LDC countries as well as others in the industry of changing too fast. I also welcome the Government’s response, although I note the comments of my noble friend Lord Carter and others who have spoken on the unacceptable lateness of that response. I also agree that the response on research appears a little complacent. However, we are all broadly in agreement.

My position on the main specific issues is that quotas are outdated measures that create artificial shortages on the EU market, do not deliver supply to meet demand, drive prices up, affect consumers heavily, limit the functioning of the market and hinder farmers from adapting to market signals. They also hamper efficient producers and stop new entrants from joining the industry and helping to develop it. Therefore, as we have heard from the noble Earl, Lord Caithness, they should be abolished as soon as possible. I hope that the Government will find some friends on the Council and reject the Parliament’s proposal to delay from 2017 to 2020. I suspect that they will end up compromising on 2018. If so, I guess that I can live with that, provided that it is adhered to with no concessions to being subject to progress and such like, as argued by some MEPs.

On cane refiners, regardless of whether the quotas stay or are abolished, beet growers and cane refiners must be treated fairly. A mechanism could be introduced so that when it is clear that a refiner’s raw material needs cannot be supplied from the preferential countries or topped up from beet production, raw cane sugar from other sources would be made available at low or no import duty.

On developing countries, through the European Parliamentary Labour Party we are pushing the Commission to ensure measures to help mitigate the effects of abolition of the quotas, such as increasing competitiveness and diversifying production. We must move away from a costly system that fails to stabilise the market, is doing little to serve producers and is certainly not serving consumers.

We would do well to recycle some of the savings from abolition into education about the health effects of consuming too much sugar. However, I agree with the committee that health is no reason to continue with the barmy EU sugar regime. I am, incidentally, unpersuaded as yet by the argument for using tax in this area, as the noble Baroness, Lady Parminter, argued, given the comments that we have already made about consumer pricing.

We would do well to ensure that assistance to preferred suppliers works and assist others to follow the Mauritius example and those supported by the Fair Trade Foundation to process more sugar domestically.

Most of all, we must get on with regime change. My one question to the Minister—I promised him only one question—is to ask how likely it is that we will get agreement, as planned, by the end of this month, and whether the Government will stick to their determination to phase out quotas before 2020.

18:48
Lord De Mauley Portrait The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley)
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My Lords, I am grateful to the noble Lord, Lord Carter, for instigating the debate, to all noble Lords who have spoken today and to the entire committee for its work on this report.

In responding to the noble Lord, Lord Carter, and others, perhaps I may begin with an abject apology for the delay in sending the Government’s response to the committee. My honourable friend David Heath has written to the noble Lord, Lord Carter, and to my noble friend Lord Boswell. However, I would like to make clear that the delay was unsatisfactory and that we need to do better in future. I should also emphasise that this episode in no way reflects on the Government’s appreciation of the committee’s work or of the report. Indeed, I find myself in the happy position of being able to say that the Government agree with the vast majority of the report’s recommendations.

It has, of course, been, as noble Lords have said, some time since the report was published. In the mean time, the common agricultural policy reform negotiations have continued, albeit slowly, and it may help if I recap the main developments.

The Commission’s proposal in October 2011 included very little on sugar. This reflected the intention not to re-enact quotas when they expire under current legislation in 2015. In fact, there was very little discussion on sugar for the first year of the negotiations. When the EU Council of Agriculture Ministers and the European Parliament concluded their separate discussions on the issue in March this year, the focus was very much on the future of beet quotas, and two different visions of the future emerged. As the noble Lord, Lord Carter, said, the Council took the view that quotas should be extended to 2017 but no further. This reflected a compromise between two broad groups. In the main, those member states that currently have a beet quota wanted to retain it, while those without a quota supported the early abolition of quotas. The European Parliament, too, had internal divisions, but eventually concluded that beet quotas should be extended until 2020.

The noble Lord, Lord Carter, and my noble friends Lady Parminter and Lady Byford asked about our view on the timing of the end of quotas, as did the noble Lord, Lord Knight, in his final question. The Council mandate is for quotas to end in 2017, and the European Parliament has voted to keep quotas to 2020. Those two dates represent the starting point for the negotiations, and we remain optimistic about which end of the range we will end up at.

The noble Lord, Lord Carter, asked how influential we have been in the negotiations on the CAP. Our support was key in ensuring that the Council reached agreement on a 2017 end date. More widely, we have seen successes in stopping excessive coupled payments and in allowing the four parts of the United Kingdom to make their own decisions on implementing the agreement.

The next step in the process is the so-called trilogue negotiations between the Irish presidency, on behalf of the Council, the European Parliament and the Commission. Those negotiations are ongoing and any agreement between the parties on sugar is now likely to occur in the context of an overall agreement on CAP reform. As the committee heard when the Secretary of State appeared before it on 15 May, much remains to be done to secure that agreement. However, we are still optimistic that, under the able chairmanship of the Irish Agriculture Minister, Simon Coveney, a deal will be struck by the end of June.

For our part, the UK Government have done, and will continue to do, all that we can to promote the liberalisation of the EU sugar regime in respect of both beet and cane, and I thank the committee again for its report as adding weight with the Commission to that argument. We do so for good reason. EU market prices have consistently been at least 50% above world market prices for the past few years, a level of distortion not seen in any other CAP regime. That distortion arises from both production quotas for EU beet and very high tariffs on imports of cane. As a result, wholesale sugar prices for EU food and drink manufacturers have been inflated by around 35%, while EU consumers have suffered a 1% increase in the overall cost of the average food basket. At the same time, producers in many poorer countries find it difficult to market their sugar in Europe, as the noble Lord, Lord Knight, mentioned. That hinders their economic development, and undermines to some extent the EU’s own aid programmes to these countries.

Abolishing beet quotas would be an important step towards removing current market distortions. It is disappointing, therefore, that the Council could not agree with the Commission’s proposal in this respect. We do not wish to see any further delay beyond 2017. However, even more disappointing is that neither the Council nor the European Parliament has addressed the need for additional measures on cane imports. The very high tariffs that apply have an even greater distorting effect on the market than beet quotas. The exemptions from those tariffs for African, Caribbean and Pacific states and less developed countries are valuable, but the supply from those sources is less than was anticipated at the time of the last reform. That has left the market with a shortage of sugar and idle capacity in EU refineries, which is putting their future viability under threat.

The abolition of beet quotas would ease the supply shortage, but would also increase the risks to the viability of the refining sector, as market prices are expected to drop while the cost of their raw material remains high. Losing the refining industry would reduce competition and introduce food security risks to the EU market. It would also lead to job losses, including at the Tate & Lyle factory in London, and threaten the livelihood of growers of cane in developing countries that currently supply EU refineries.

The Government will therefore continue to seek fair treatment for cane refineries as the CAP reform negotiations progress. The focus in the negotiations on beet quotas has also meant that there has been relatively little discussion on inter-professional agreements, or IPAs. As touched on during the debate, IPAs govern the contractual relationship between beet processors and growers and have traditionally been valued by both parties.

The Commission’s proposals contain different wording to that in current legislation and, as indicated in the debate today, this has caused some concern whether the intention is to change the ground rules. We hope that the Commission’s own response to the committee’s report will provide some reassurance that there is no agenda to weaken the negotiating position of growers. However, this is something that we will pay close attention to as detailed rules are drawn up.

I will now answer noble Lords’ questions to the best of my ability. To start with, in response to the noble Lord, Lord Carter, as the Secretary of State explained when he appeared before the committee, a great deal of effort has been put into developing relationships and building alliances. Noble Lords would not expect me to go into detail about our negotiating tactics, but every opportunity is being used to build on that groundwork so as to make the case for further liberalisation while accommodating other views where possible. That approach bore fruit in securing the agreement to a 2017 end date for quotas as part of the council mandate, and we should be defending that agreement very strongly for the remainder of the negotiations.

The noble Lord, Lord Carter, asked how we could achieve 2017 without financial compensation. We have strong support from some in the Council for the end of quotas. We are optimistic that the agreement will stick. We have not seen requests for compensation from other member states, and do not see a case for that. Compensation for less developed countries is another matter, and measures can be considered within the context of the European Development Fund.

The noble Lord, Lord Carter, and my noble friend Lady Parminter asked about work by the competition authorities. As indicated in the Government’s response, the EU competition authorities, supported by the OFT, are undertaking an investigation and we would prefer to see that completed before considering further reviews.

My noble friend Lord Caithness suggested that we have relaxed our demand for an end date for quotas to 2017. We argued strongly for 2015 but there was very little support in Council. In a negotiation with 26 other member states some compromise has to be made and, with Germany, France and others pushing for 2020, an end date of 2017 was a relative negotiation success.

The noble Lord, Lord Carter, asked for an update on the state of play on risk management discussions in the CAP negotiations. The past 18 months have been very challenging for farmers, with some difficult weather conditions such as late snow, even as recently as Easter, as noble Lords will know. The Government are therefore considering how best to support farmers to manage risks. The rural development regulation offers opportunities for supporting risk management. For instance, the proposed risk management toolkit, if used, could provide subsidies for agri-insurance and mutual funds. However, consideration should be given as to whether subsidies in this area are permanent or temporary and to what degree these sorts of products are needed by farmers in the United Kingdom. As the toolkit is in Pillar 2, using it would mean there would be less money available of course for other Pillar 2 activities and priorities.

The UK is opposed to the income stabilisation tool proposed by the Commission. We are concerned that it is unstable and unpredictable. In any case, the countries that use such tools, such as Canada, have them instead of direct payments, not in addition. We should not focus solely on the risk management tools set out in the Commission’s proposals that directly address risk management in the rural development regulation. There are other activities enabled by the rural development regulation that can be used to support farmers to manage their risks, for example by enabling them to make investments in physical assets which help to mitigate some of the risks that they may face. The development of the next English rural development programme is under way and Defra is building an evidence base. We will be considering the objectives and priorities for funding through the next programme based on that evidence and the objectives for rural development set out in the draft EU rural development regulation.

The use of tools available under the rural development regulation is only one of several options. We are working with industry, the financial sector and charities to consider what might be done. We will meet again with their representatives in July to look at the impact of recent bad weather on farming cash flows. There is a frost insurance scheme and a private sector scheme for sugar beet. There is a market for such schemes without public money.

My noble friend Lady Byford asked how the ACP and less developed countries could be helped to stand on their own two feet. There are a number of factors holding less developed countries back, including economies of scale, infrastructure and skills at both farm and processing level. Solutions need to be tailored to the specific national problems, which is being done under the accompanying measures for the last reform, albeit too slowly. My noble friend asked which countries have received assistance and how it is being disbursed. I think the noble Lord, Lord Carter, asked about that too. The main beneficiaries have been Kenya, Mozambique, Ivory Coast, Swaziland and Tanzania. My understanding is that of the £1.2 billion intended for accompanying measures, some £0.95 billion has been awarded, of which £0.5 billion has actually been paid. My colleagues in the Department for International Development are pressing the Commission on that slow disbursement.

My noble friend Lady Byford and the noble Lord, Lord Carter, also asked why, if sugar prices have declined for the producer, consumers are paying more in real terms. Available data suggest that retail prices did not fall in line with the cut in EU prices following the last reform. Sugar users contend that this is attributable to generally rising costs within the supply chain, for example, energy and labour. However, others have questioned the extent to which sugar users have been able to capture the price cuts and not pass them on to consumers. As indicated in the government response, the European Commission authorities are making inquiries into alleged anti-competitive practices, which may throw some light on this area.

My noble friend also asked whether the use of the term “inefficient” to describe the production systems in some countries is a reference from a grower’s or a refiner’s viewpoint. It is generally meant to refer to those countries or regions whose growers have the lowest yields.

My noble friend Lord Caithness asked whether the EU study results expected in February have come in yet and what they are. I am afraid that the results of this study have not yet been published. We are as keen as your Lordships to read it and engage with the Commission on how any conclusions can be taken forward. We will ensure that the committee is made aware of the study’s results when they are published.

My noble friend Lord Caithness also asked about mandatory written contracts. The Government are sympathetic to the concerns that he referred to in the context of interprofessional agreements. The issue, as I understand it, is not so much about what is in the Commission’s proposals but about what might be introduced in the detailed rules that will follow. While wishing to see normal competition principles apply as far as possible, the Government are also mindful of the need not to unbalance the legal framework governing the relationship between growers and processors. When it comes to negotiations on the Commission’s detailed rules in due course, the Committee may be assured that we will consult all interested parties to identify whether any issues arise in practice.

My noble friend Lady Parminter asked whether the Government have any plans to look at the role that fiscal incentives can play in shaping positive food choices. We keep all evidence on the impact of taxation on promoting healthier food choices under review. We believe that the voluntary action that we have put in place through the public health responsibility deal is delivering results; 33 companies have signed up to pledge to help the population reduce their calorie consumption. I argue that this is the right way forward, but I emphasise that we are not complacent and we are clear that this is something for all food businesses, not just some. If we do not get continued progress, we will have to consider alternative approaches.

In conclusion, there is much that the Government and the committee can agree upon, including support for genuine CAP reform that removes distortions from the market and delivers real benefit to consumers and producers, a desire to see strong, competitive beet processing and cane refining industries in the United Kingdom and appropriate safeguards for producers, both in the UK and in developing countries. We will continue to make the case for that vision in EU and other international negotiations. The committee’s continued interest and contribution to the debate would be most welcome.

19:07
Lord Carter of Coles Portrait Lord Carter of Coles
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I thank all noble Lords for their contributions. We have had an interesting debate that, as the noble Earl, Lord Caithness, said, has come at a crucial time. The critical thing about these reports is to be able to make the point while the negotiations are taking place.

We have all sensed the great loss that we all felt because the noble Baroness, Lady Byford, could not contribute, and in this debate her incisiveness and her fact-packed contribution brought evidence of that. In my experience the noble Earl, Lord Caithness, always seems to have the knack of zeroing in on a key issue and then helping us along a little with a reminiscence of somewhere such as Romania, which is always very much appreciated. The balanced view of the noble Baroness, Lady Parminter, of the needs of consumers in terms of price but also in terms of welfare and health was a perfectly fine contribution to this debate. I very much welcome the intervention from the noble Lord, Lord Palmer, who made his point so strongly.

I thank the noble Lord, Lord De Mauley, for setting out the views of the Government. It is nice that we are all in so much agreement on what needs to be done, and we appreciate how difficult it is for the Government to exercise their point of view in these very difficult negotiations. I speak for us all in saying that we are grateful for the fulsome apology that he was able to make on the late response.

We should hope that the Government are now successful in their attempts to work with EU partners to renegotiate the sugar terms. Clearly, the position of the French and Germans—the great barons of the industry, if you like—makes it very difficult, and we should offer every support that we can to ensure that the next seven years, in terms of everything that we want to see happen, are somewhat more productive than the previous seven.

Turning to my chairmanship of sub-committee D, I have done this for the past four Sessions. For me, at least, it has been a delight. We have had some really focused and productive times, and generally I believe that they have been happy. That has been a hallmark of our committee. That has been wholly due to the committee’s members, and we have been extraordinarily fortunate in the composition of our committee. I also record our thanks to our successive clerks: Paul Bristow, Kate Meanwell and Aaron Speer. Running through it, we have been fortunate to have the same golden thread of our researcher, Alistair Dillon, who has been absolutely tremendous.

A further delight to me is that the noble Baroness, Lady Scott of Needham Market, has taken over as the chair of the committee. I have no doubt that it will be as fulfilling for her as it has been for me. I beg to move.

Motion agreed.
Committee adjourned at 7.10 pm.

House of Lords

Monday 3rd June 2013

(10 years, 11 months ago)

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Monday, 3 June 2013.
14:30
Prayers—read by the Lord Bishop of Derby.

Message from the Queen

Monday 3rd June 2013

(10 years, 11 months ago)

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14:29
Earl Peel Portrait The Lord Chamberlain (Earl Peel)
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My Lords, I have the honour to present to your Lordships a message from Her Majesty the Queen, signed by her own hand. The message is as follows:

“I have received with great satisfaction the dutiful and loyal expression of your thanks for the Speech with which I opened the present Session of Parliament”.

Deaths of Members

Monday 3rd June 2013

(10 years, 11 months ago)

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Announcement
14:37
Baroness D'Souza Portrait The Lord Speaker (Baroness D'Souza)
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My Lords, I regret to inform the House of the deaths of the noble Lord, Lord Northfield, on 18 April, and of the noble Lord, Lord Gilbert, on 2 June. On behalf of the House I extend our condolences to the noble Lords’ families and friends.

Education: Student Loans

Monday 3rd June 2013

(10 years, 11 months ago)

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Question
14:37
Asked by
Lord Naseby Portrait Lord Naseby
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To ask Her Majesty’s Government whether they have any proposals to privatise or reorganise the handling and repayment of student loans.

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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My Lords, the Government continue to explore options for monetising student loans and launched a sale of the remaining mortgage-style student loans in March. Any future sale of income-contingent repayment student loans would take place only if it reduced the Government’s risk exposure to the loan book, represented value for money for the taxpayer and ensured protection of borrowers.

Lord Naseby Portrait Lord Naseby
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My Lords, is my noble friend aware that the selling-off of the earlier mortgage book is greatly welcomed? However, the current loan book now stands at close to an estimated £40 million and no fewer than 22% of students from overseas are either not paying or have disappeared, and that involves a figure of no less than £50 million. What are the Government doing about this failure to repay by students who have taken loans, not least because if no further action is taken, that figure of £50 million will rise well into the hundreds of millions due to the recent increase in student loans?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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My Lords, the Government are investigating ways of making repayments from overseas easier and of clamping down on those who evade their responsibilities, and we will introduce measures as soon as we can. It might be worth pointing out that of the total amounts of student loans, only 3% to 4% go to EU students.

Lord Howarth of Newport Portrait Lord Howarth of Newport
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My Lords, is the Minister aware that student loans in the USA, publicly subsidised but largely unregulated, are a means for the enrichment of banks and poor-quality higher education institutions that are permitted to make profits, whereas in the United Kingdom, the student loans system—designed by the Government and administered by the Student Loans Company, which the Government control—has, notwithstanding some flaws, been a source of fairness for society as a whole?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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Yes indeed, my Lords, and I can only be grateful that I am not standing here answering on behalf of the United States’ system—because I do not have a brief about that. The system was set up to be as fair as possible to the students whom we wish to encourage to go into higher education if they have the potential and aspiration to do it.

Lord Forsyth of Drumlean Portrait Lord Forsyth of Drumlean
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My Lords, does my noble friend think that enough is done to make students aware that although they do not have to repay these loans until they have employment above a certain salary, the interest accumulates immediately? Many of them find themselves facing much larger bills than they imagined.

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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One of the really important things, which my noble friend touches on, is that no student has to pay these fees immediately. They start being payable once the students graduate and are in a job where they are earning sufficient money to pay them back, and the payments are then proportionate to their income. However, my noble friend is right that we need to do as much as we can to make sure that students are fully clear about the undertakings they are taking on.

Lord Bilimoria Portrait Lord Bilimoria
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My Lords, have the Government done a survey regarding one effect of student loans—the fact that students will be burdened with a long-term debt of up £40,000 after they graduate? Has it deterred children from going to university, particularly those from family backgrounds where no one has been to university before? Are the Government comfortable that we have student loans of this magnitude while in Scotland undergraduates still do not have to pay any fees at all?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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The noble Lord mentions the burdensome debt that students are accruing, but I would again stress that they will begin to contribute back for what they have gained from their university education only after they graduate and are earning a salary. We will be monitoring the effect on students from disadvantaged backgrounds. I would also point out that there are very generous forms of mean-tested grants for students, while many universities have instituted all sorts of bursaries to try to make absolutely sure that no student feels disadvantaged because they come from a low-income family.

Lord Stevenson of Balmacara Portrait Lord Stevenson of Balmacara
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My Lords, students who took out loans under the previous Government pay interest based on the base rate plus 1%—so it is currently 1.5%—whereas those who have taken out loans since 2012 will pay RPI plus 3%, currently amounting 6.3%. Does the Minister agree with the recent HEFCE report which suggests that the new financial system contributed to a 12% reduction in students entering HE last autumn?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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Those figures are not holding up as the noble Lord says, because substantial numbers of students are still applying for university. There was of course an increase last year when people applied early, ahead of the new scheme, but the figures we are getting back from the higher education authorities show that the numbers going into higher education are still holding up. We very much hope that the new fee structure will not be a deterrent; in fact, it may well help many of the students whom we most wish to attract to higher education.

Baroness Brinton Portrait Baroness Brinton
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My Lords, given that the calculations for the new student loans scheme under the progressive tuition-fee scheme show that it would take a minimum of two to three years before the payments start to come in and therefore balance the system out, what plans do the Government have to review the new arrangements to make sure that they are on track?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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My noble friend makes a valid point. We are constantly monitoring and reviewing the system to make sure that it is providing a good deal, that it is fair and accessible for students and that it is a good deal for the taxpayer. We shall be monitoring it at regular intervals to make sure that it is still doing what we hope it will.

Lord Christopher Portrait Lord Christopher
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My Lords, in the event that there is a sale of these debts, will there be an embargo on the use of bailiffs?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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My Lords, it is not the company but the loan book which was launched in March; the sale of mortgage-style loans is currently out for tender and we do not know how it will result. I can assure the noble Lord that we shall be looking very carefully to ensure that any company that purchases these loans provides protection for the borrowers as well as a financial repayment.

Lord Flight Portrait Lord Flight
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My Lords, a paper in the Library produced by the Government forecasts a major increase in defaults on student loans to 40% of the total. The two main causes appear to be non-payment by people from overseas—certainly not just Europe—and, more particularly, students not earning enough to meet the requirement to repay. Will the Government consider two options to address these problems? First, it is quite difficult to set up banking arrangements to repay from overseas. If there were standard arrangements such that someone earning dollars could automatically have a standing order to convert dollars into sterling and repay, it would make the admin easier. Secondly, could more attention be given to vocational training after which people’s pay is often higher and they get jobs more easily?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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The answer to my noble friend’s last point is yes. However, his point on vocational training is slightly wide of the Question that we are discussing. Most of the loans from the Student Loans Company go to UK-based students or students from other EU countries. We have set up much more effective systems for ensuring that payments come through from bank systems and other assurances. He is absolutely right that most of the people who do not repay are those who go into very low-paid jobs. However, the percentage of students who do not entirely repay their loans tends to be higher than the percentage of the total value of the loans repaid. The cost to government will still be less than if the same money were given in the form of a grant.

Education: Part-Time University Study

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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Question
14:46
Asked by
Baroness Bakewell Portrait Baroness Bakewell
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To ask Her Majesty’s Government whether they are taking any action to address the decline in the numbers of those opting for part-time university study.

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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My Lords, to encourage new part-time undergraduates, the coalition Government introduced non-means-tested tuition fee loans for the first time in 2012. We have asked HEFCE to continue monitoring changes in part-time demand and supply, and we are working with Universities UK on its review of part-time study, which will identify barriers to participation by prospective part-time students and offer practical advice. Our communications activity for 2013-14, including our student finance tour, will include activities specifically targeted at part-time applicants.

Baroness Bakewell Portrait Baroness Bakewell
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I thank the Minister for that Answer. I declare an interest as the president of Birkbeck. The increase of university fees in 2012 led to a dramatic downturn in part-time studies, which creates real problems. As part-time study is clearly a way forward in education, with benefits to employers, individuals and the economy, will the Government guarantee that they will implement the findings of the Universities UK review when it is published in the autumn?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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First, I congratulate the noble Baroness on her appointment as president of Birkbeck. Of course, Birkbeck is one of the tremendous organisations, along with the Open University, that provide the major part of opportunities for part-time students. Certainly, we are hoping that with the introduction of loans for part-time students for the first time, that message will get through and encourage more part-timers to study. Although I cannot stand here hand on heart and agree that the Government will implement every last dot and comma of the Universities UK report, I assure her that we will take it very seriously and keep talking to Birkbeck and the OU about what more can be done.

Lord Storey Portrait Lord Storey
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My Lords, as my noble friend the Minister has just said, it was this Government who introduced loans for part-time students for the first time, as the noble Baroness, Lady Bakewell, will be aware. Will the Minister tell the House what the Government are doing to increase awareness of the availability of income-contingent loans among part-time students, many of whom are much more cautious with their money?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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My noble friend is right. I have just mentioned the student tour. We also know that the Student Room has dedicated information on finance for part-time students, and we hope that the messages that go out to the different universities and institutions that particularly look after part-time students will encourage them to take advantage of the finances that are available. He is quite right that the older students may well be more cautious, but of course most of the part-time students will also be earning in some capacity or another and therefore may feel that this is a good use of their money.

Lord Morgan Portrait Lord Morgan
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My Lords, the number of part-time students has gone down by 40% since 2010. Since it is known that many of them come from more disadvantaged backgrounds and ethnic minorities, is this policy not a serious blow to not only our universities but the prospects of greater social mobility and equality in this country?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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I agree with the noble Lord that part-time study is an incredible asset in social mobility and a benefit to the community and individuals as well. With the measures that we are taking on student loans and in trying to get the message across to encourage people to study, we hope that we will be able to build on the ideas coming out of the Universities UK review.

Lord Foulkes of Cumnock Portrait Lord Foulkes of Cumnock
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My Lords, when did the Minister or one of her colleagues meet with Michael Russell, the Education Minister in Scotland, to discuss this matter and other matters of mutual interest? Can she tell us what matters were discussed at these meetings?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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I am afraid that I personally have not met the Minister; that would be for somebody above my level of responsibility. However, I am quite sure that my colleagues at the Department for Education are regularly in contact with the devolved Administrations. We have a great deal to learn from each other in working together on these matters. Perhaps I will write to the noble Lord.

Baroness McIntosh of Hudnall Portrait Baroness McIntosh of Hudnall
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Does the Minister have any data on the proportions of men and women who go into part-time higher education? Are the Government aware of any particular obstacles; for example, for women with young children who would like to go back into education?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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I do not have those data readily to hand. Of course, anecdotally, one is aware that part-time education very often appeals to women with children, to help keep their brains active when their bodies are more than active with small children. If we have data, I will write to the noble Baroness. We would hope that there would be no additional barriers to either men or women going into part-time study.

Lord Bates Portrait Lord Bates
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My Lords, given that part-time study represents a significant investment by people in their own future for the benefit of society and for themselves, would it not be right to consider that those fees should be tax-deductible?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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Again, my Lords, that is for another Question and another day. The noble Lord makes a valid point, but it is not directly relevant to this Question.

Lord Bilimoria Portrait Lord Bilimoria
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My Lords, in the previous Question I asked the Minister about the difference between England, Wales and Scotland with regard to part-time students. Can the Minister answer, please?

Baroness Garden of Frognal Portrait Baroness Garden of Frognal
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As I say, I do not have breakdowns of the numbers of part-time students in the devolved Administrations, but we are in constant dialogue with the devolved Administrations to try to ensure that we can learn from best practice. However, as the noble Lord well knows, there are different systems in different parts of the UK.

Legal Aid

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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Question
14:53
Asked by
Baroness Deech Portrait Baroness Deech
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To ask Her Majesty’s Government what consideration they have given to the impact of cuts in legal aid on access to justice.

Baroness Deech Portrait Baroness Deech
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My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I declare an interest as a regulator of the Bar, but not its representative.

Lord McNally Portrait The Minister of State, Ministry of Justice (Lord McNally)
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My Lords, these matters were assessed as part of the impact assessments which were published alongside the Legal Aid, Sentencing and Punishment of Offenders Act 2012, and our current consultation on further reforms to legal aid, Transforming Legal Aid: Delivering a More Credible and Efficient System.

Baroness Deech Portrait Baroness Deech
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Does the Minister acknowledge that it is widely regarded that the Ministry’s own impact assessment on that consultation paper does not adequately address the threat to the vulnerable and to minorities? Has he calculated the extra costs to the justice system of the longer trials and appeals which will inevitably result from inadequate representation, inexperienced advocates and self-representing litigants? Does he agree that the delays and miscarriages of justice that are likely to result will more than swallow up all the estimated savings?

Lord McNally Portrait Lord McNally
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No, my Lords. The noble Baroness puts forward a worst-case scenario in almost every aspect—one which I do not recognise.

Lord Bishop of Exeter Portrait The Lord Bishop of Exeter
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My Lords, is the Minister aware of the findings of the Centre for Human Rights in Practice at Warwick University that cuts to legal aid are likely to fall disproportionately on already disadvantaged groups, such as those in rural areas, children, those with disabilities and those who are otherwise already vulnerable or marginalised? What assurances can Her Majesty’s Government give that there will be a level playing field of legal aid availability?

Lord McNally Portrait Lord McNally
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My Lords, when I first answered Questions on legal aid more than three years ago, the first point I made was that legal aid was a system devised to help the poorest and most vulnerable in our society. It follows that if you cut legal aid, those are the sections of society that are likely to be affected. Economic circumstances have forced cuts on my department and we are trying to make the reforms to legal aid as focused and effective as possible, while still protecting the vulnerable in our society.

Lord Pannick Portrait Lord Pannick
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My Lords, I declare an interest as someone regulated by the noble Baroness, Lady Deech. Does the Minister share the widespread concern that the Government’s proposal to introduce competitive tendering for criminal legal aid services will remove choice for the consumer, remove the incentive for the provider to maintain quality and inevitably result in the destruction of hundreds of small to medium-sized solicitors businesses up and down the country?

Lord McNally Portrait Lord McNally
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My Lords, I am greatly reassured that somebody is regulating the noble Lord, Lord Pannick. Again, in response to this consultation, we have heard various parts of the legal profession harping on about the worst-case scenario, which we simply do not accept. We are in consultation and have put forward proposals about legal aid contracts. However, the legal professions are facing a number of changes, irrespective of what we are proposing on legal aid—a point I have made before from the Dispatch Box—and they will have to adjust to the new circumstances if they are going to survive. We are consulting with the Law Society and Bar Council, and with other bodies and individuals. We are listening and we hope to get a solution that will reflect what the Government can afford to pay on legal aid at the moment but that will also leave us with the protections for our legal aid system that many of us have taken pride in.

Lord Hamilton of Epsom Portrait Lord Hamilton of Epsom
- Hansard - - - Excerpts

My Lords, can my noble friend tell the House what the rise in the cost of legal aid has actually been in this country? Is it not inevitable, if we have to find savings in the public sector, that legal aid should find savings like anywhere else?

Lord McNally Portrait Lord McNally
- Hansard - - - Excerpts

That is no more than the blunt truth. In 2010, when we came in, a spending review took place that asked for 23% cuts across the board in my department, which at the time was spending £10 billion a year on prisons, the probation service, legal aid, courts services and staff. All five of those have had to take the burden and brunt of the cuts. It is very difficult to make decisions at this time, but we have consulted and listened and are continuing to do so to try to make sure that we end up with a legal profession able to help the most vulnerable in our society through the legal aid fund.

Lord Marks of Henley-on-Thames Portrait Lord Marks of Henley-on-Thames
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My Lords, I know that my noble friend is aware of the widespread view expressed during the consultation on criminal legal aid that competitive tendering on price will prove unworkable and that the proposed changes are being introduced too fast and with too little preparation. In the light of the consultation, will his department consider introducing the changes more gradually and trialling or piloting them before their more general introduction? I declare a similar interest to that declared by the noble Lord, Lord Pannick.

Lord McNally Portrait Lord McNally
- Hansard - - - Excerpts

My Lords, it is about 10 years since the Carter report had a look at this matter. It is more than three years since the previous Labour Government made cuts to criminal legal aid. The Labour Party, in its 2010 manifesto, was the only party to say that it would look for further cuts in legal aid. In that time there have been changes—alternative business structures and other changes—to the legal profession, yet we are still told that this has come as a surprise. Instead of asking for more time and putting forward arguments that are mainly scare stories, it would be good if the legal profession responded to this consultation with a productive dialogue that could put legal aid on a sustainable and lasting footing.

Lord Woolf Portrait Lord Woolf
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Will the Minister assist the House by indicating the steps he is proposing to take, or has taken, in order to monitor the impact of the changes that are being made?

Lord McNally Portrait Lord McNally
- Hansard - - - Excerpts

Of course we continuously monitor this. Some of these proposals are consultations; they are not in place at the moment. We are suggesting that the legal profession keeps in close contact with us, and also that barristers and solicitors start thinking about how best to organise themselves to function in circumstances in which money may be a little tighter than it once was. These are circumstances that many other professions and many other areas of our society have to face.

Violent Extremism

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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Question
15:01
Asked by
Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch
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To ask Her Majesty’s Government whether they will encourage an international conference of Muslim leaders to address the issue of violent extremism within that religion.

Baroness Warsi Portrait The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi)
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My Lords, before I answer the noble Lord’s Question, I am sure that I speak for the whole House in offering our condolences to the family and friends of Drummer Rigby. They have handled this horrific tragedy with great dignity and resolve, and our thoughts and prayers are with them.

None Portrait Noble Lords
- Hansard -

Hear, hear.

Baroness Warsi Portrait Baroness Warsi
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My Lords, this country is resolute in its stand against violent extremism. As the Prime Minister has made clear, there is no religious justification for these acts, and he has stressed that al-Qaeda-inspired terrorism has taken more Muslim lives than any others. We are working with international partners and religious leaders worldwide to combat violent extremism.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch
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My Lords, I thank the noble Baroness for that fairly helpful Answer. I would have thought that, as a Muslim, she is well placed to lead such an initiative. As we think of Drummer Rigby, I ask if the Government are aware that there have been many thousands of fatal Islamist attacks worldwide since 9/11, and that most of the victims have been Muslims? I will put the evidence for that in the Library. Secondly, if Islam is a religion of peace, could not a gathering of grand muftis and others agree to issue a fatwa against the jihadists, so that they are cast out of Islam and are no longer Muslim?

Baroness Warsi Portrait Baroness Warsi
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My Lords, I take the noble Lord’s point that more Muslims than members of any other community have died at the hands of violent extremism. However, I take issue with some of the noble Lord’s views. I am familiar with his views on Islam and Muslims. He premised the question by saying, “If Islam is a peaceful religion”; the Prime Minister made it abundantly clear that Islam is a religion of peace.

None Portrait Noble Lords
- Hansard -

Hear, hear.

Baroness Warsi Portrait Baroness Warsi
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I can speak as someone who led the community response to the tragic killing of Drummer Rigby, when Muslims in this country came out vociferously and with a single voice said, “This was not done in the name of our faith. This was not done in our name”.

Baroness Hussein-Ece Portrait Baroness Hussein-Ece
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My Lords, is it not the case that people of all faiths and backgrounds have deplored the barbaric murder of Lee Rigby on the streets of Woolwich? Is there not a risk of demonising Muslims, including the 3 million Muslims in the UK, which is not the answer? Does the Minister think that it is appropriate for decent voices of moderation to be drowned out by radicals such as Anjem Choudary— discredited people—who are given a media platform on the BBC and Channel 4? Drowning out other voices does more harm than good. Does the Minister agree with the Deputy Prime Minister, who said at a cross-party interfaith event last week, “Terrorism has no religion”?

Baroness Warsi Portrait Baroness Warsi
- Hansard - - - Excerpts

I absolutely add my voice to the words of the Deputy Prime Minister. I agree with my noble friend that one of the positives to come out of this tragedy is the way in which communities of all faiths have stood united and said that we will not be divided by the extremists who conduct these horrific acts in the way that they have.

Lord Lea of Crondall Portrait Lord Lea of Crondall
- Hansard - - - Excerpts

Does the Minister recognise the importance of encouraging Christian-Islamic dialogue at all possible levels, nationally and globally? Is it not the case that the justification of jihad in the Koran could be paralleled by similar blood-curdling references in the Bible if one wanted to interpret them in that way? Therefore, dialogue should be on the basis that both sides have issues to discuss with each other.

Baroness Warsi Portrait Baroness Warsi
- Hansard - - - Excerpts

My Lords, one of the worst things that politicians often say is, “I made a speech on this”—but I made a speech on this. It was on unpicking the arguments between religion and reason. I absolutely agree that a literal interpretation of any faith can lead to perverse results. However, I can also assure the noble Lord that, both domestically and internationally, we are engaged in a whole series of interfaith projects, which bring people from different religions, and indeed people of no religion, together to create the space and the dialogue that create better understanding.

Lord Bishop of Derby Portrait The Lord Bishop of Derby
- Hansard - - - Excerpts

My Lords, from these Benches we extend our sympathy and prayers to Drummer Rigby’s family and pray for his soul. Until recently, I was co-chair of the Inter Faith Network for the UK. My fellow co-chair was a very distinguished Muslim scholar and leader. I ask the Minister two things. First, as we have heard, violent religious extremism is not simply an issue for Muslims. In the Inter Faith Network we were constantly reminded, through other faiths across the world, that millions of people suffer from violent extremism, often for political purposes and not religious ones. Secondly, does the Minister agree that, while there is of course a responsibility on those of us who lead religious and political organisations, there are other factors, such as how foreign policy is perceived, that send signals and triggers to people that it is very difficult for leadership on its own to deal with? Therefore, there has to be a partnership between religious and political leaders and those who form our culture for peacefulness and a common stand against violent extremism.

Baroness Warsi Portrait Baroness Warsi
- Hansard - - - Excerpts

I would draw a distinction between legitimate discussion of foreign policy and, on the other hand, what is clearly violent extremism. The latter cannot be justified in any way in terms of the former. I completely agree with the right reverend Prelate’s view that every religion has its extremists. I have colloquially referred to them as “nutters”. Pastor Jones is no more representative of Christianity than Anjem Choudary is of Islam.

Local Transport Act 2008 (Traffic Commissioners) (Consequential Amendments) Order 2013

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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Motion to Approve
15:07
Moved by
Lord Popat Portrait Lord Popat
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That the draft order laid before the House on 25 March be approved.

Relevant document: 23rd Report from the Joint Committee on Statutory Instruments, Session 2012–13, considered in Grand Committee on 21 May

Motion agreed.

Business

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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15:08
Lord Hill of Oareford Portrait The Chancellor of the Duchy of Lancaster (Lord Hill of Oareford)
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My Lords, the whole House will have been disturbed and dismayed by the reports in the press over the weekend and today, relating to the alleged misconduct of particular Members of our House. Therefore, I thought I should tell the House that the Sub-Committee on Lords’ Conduct agreed earlier today to a request from the House of Lords Commissioner for Standards, Mr Paul Kernaghan, that he proceed to investigate the three Members of the House against whom allegations have been made. Independent external investigation of these allegations is therefore in hand.

To one extent, thanks to the Leader of the Opposition when she was Leader of the House, we are in a better position than in the past. For the past three years we have had in place a clear code of conduct to regulate our behaviour as Members of this House and we have had an independent Commissioner for Standards, whose task it is to investigate whether there has been a breach of that code. I am pleased that the necessary preliminary steps to secure a proper investigation have already been taken. From this point, it is now over to the commissioner, who will make his report on each case to the Sub-Committee on Lords’ Conduct.

The allegations made at the weekend are very serious and distressing to us all. I know that I speak for the leaders of all the parties and the Convenor when I say that they do not reflect the House that we know, or the Members who work here out a sense of public service and a desire to hold the Government to account and revise legislation—work to which I suggest we now turn.

Marriage (Same Sex Couples) Bill

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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Second Reading
15:10
Moved by
Baroness Stowell of Beeston Portrait Baroness Stowell of Beeston
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That the Bill be read a second time.

Baroness Stowell of Beeston Portrait Baroness Stowell of Beeston
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My Lords, it is a huge privilege to be leading on this important Bill, which will make marriage of same-sex couples lawful in England and Wales. I will go into detail shortly, but I want to be clear from the outset that this Bill is not just about allowing same-sex couples to marry; it is also about protecting and promoting religious freedom. It is not often that we get to debate and decide legislation that affects people’s lives so directly. This Bill addresses things that matter to all of us: our personal freedoms, our faith in what we believe, and the acceptance of who we are and who we love. Perhaps I should declare from the outset that I am not married, and as long as George Clooney is still available I am prepared to wait. But even though I am single—and I of all people understand that not everyone wants to get married—I believe in the institution of marriage.

Like many other people, whether married or not, I believe marriage to be one of the fundamental building blocks of a strong society because of the stability, continuity and security that it promotes. I admire couples who make the big decision to marry. Marriage remains, as it has for centuries, the way in which most people choose to declare their commitment publicly and permanently to the person they love. When we hear two people exchange their marriage vows, whether in a place of worship or at a register office, we know that we are witnessing a couple commit to the kind of values that we associate with the special enterprise of shared endeavour—loyalty, trust, honesty and forgiveness. We know that through marriage existing families are extended, as is their commitment and support to new family members. We think that is a good thing, and any of us can choose to do this—unless, of course, we happen to love someone of the same sex. This Government think that is wrong, and we want to put it right. So much do we believe in marriage and its importance to our society, we want all couples, whether gay or straight, who are prepared to affirm publicly their commitment to each other and all the responsibility and joy that comes with it, to be free to marry.

Some people argue that civil partnerships have provided same-sex couples with equality already, and allowing them to marry is not needed. They are right that civil partnerships provided equivalent legal rights. Indeed, the progress made by the last Labour Government in advancing gay rights was massive, and I salute them for all that they achieved. I am grateful to the Labour Front Bench for supporting this Bill. But in 2004, Parliament did not provide same-sex couples with the equal opportunity to marriage itself; back then, we could not conceive that society would allow it. So instead a separate legal regime was established just for same-sex couples. Marriage, the exchange of vows, and all that that means, remained available only to men and women prepared to make that commitment to each other. Less than 10 years on, independent polling, all of which is included in the House of Commons Library research paper on the Bill, shows that the majority of people in this country are now ready to open up marriage to everyone. Indeed, support is growing all the time, and we are not alone; change is happening around the world.

As to my own party’s position, in 2006, at the first Conservative Party conference after he became leader, David Cameron voiced his support for marriage and equated the commitment of same-sex couples with that of opposite-sex couples. In 2010, the Conservative Party made it clear that it would consider the case for equal marriage in its document A Contract for Equalities, which was published alongside the election manifesto. In 2011, David Cameron said, to wide applause at the Conservative Party conference, that he supported same-sex marriage because he is a Conservative. This coalition Government think that now is the right time to make this change.

The Government have decided to take this step to allow same-sex couples to marry because we believe that doing so really matters. Gay and lesbian couples being allowed to marry—to join the institution that they, too, recognise as important—matters because it marks the final acceptance of who they are. Allowing same-sex couples to marry and not separating them out from the rest of society matters to families. For parents especially, it means peace of mind. A gay son or daughter will be able to aspire to the same things as their straight brother or sister and be recognised and respected equally.

Allowing same-sex couples to marry also matters to all of us who believe in the institution of marriage. Marriage, this vital element of our social fabric, stands a much safer chance of remaining important to future generations if we make sure that it reflects modern society. We believe that marriage will become nothing but stronger if we open the doors to couples who are currently excluded only because they happen to love someone of the same sex.

The Bill provides a new freedom for same-sex couples to marry, but theirs is not the only freedom that concerns us. The Bill also protects and promotes religious freedom. That is why, as well as allowing same-sex couples to marry in civil ceremonies—in register offices and approved premises such as hotels—the Bill takes an entirely permissive approach to religious marriage ceremonies. It will be for religious organisations to decide for themselves whether they wish to marry same-sex couples according to their rites. Some have already said that they will; these include the liberal Jews, the Quakers and the Unitarians. In this way, the religious freedom of these organisations and perhaps others in the future is promoted by this Bill. Equally, no religious organisation or individual can be forced to conduct or participate in a religious marriage ceremony of a same-sex couple. The religious freedom of those organisations and individuals is protected. The Government’s public consultation in 2012, which prompted nearly 230,000 responses and became the largest of its kind ever, was important in informing our approach. Since we published our proposals in December last year, we have discussed this permissive approach with a wide range of religious organisations, and I am pleased to report that they are generally content with the protection provided in the Bill.

The Bill has been carefully crafted to contain each element of the quadruple lock which the Government committed to last December and which I outlined to this House when I repeated the Statement by my right honourable friend the Secretary of State at the time. Because it is so important, I will explain the quadruple lock again. First, it ensures that the Bill states explicitly that no religious organisation or individual minister can be compelled to marry same-sex couples or to permit such a marriage to take place on their premises; it provides an opt-in system for religious organisations which wish to conduct marriages for same-sex couples; it amends the Equality Act 2010 so that it is not unlawful discrimination for a religious organisation or individual minister to refuse to marry a same-sex couple; it ensures that the duty on the clergy of the Church of England and the Church in Wales to marry parishioners will not extend to same-sex couples, and that Anglican canon law, which says that marriage is a union for life of one man with one woman, is unaffected.

I turn now to other rights that we all have and will continue to have because they are not affected by the Bill, most specifically the right to freedom of expression. Some people are concerned that the Bill will impact on freedom of speech and that people such as teachers—or, indeed, anyone while at work—will not be able to criticise same-sex marriage. I can reassure the House that this Bill does not in any way affect the perfectly legitimate expression of the perfectly legitimate belief that marriage should only be between a man and a woman. Teachers will be expected to teach the factual and legal position when teaching about marriage, as with any area of the curriculum, but they will not be expected to promote or endorse views that go against their own beliefs. It will be unlawful to dismiss a teacher purely for doing so.

That said, and as noble Lords would expect, the expression of personal beliefs should be done in a professional way and not in a way that would be inappropriate or insensitive to pupils, some of whom may be gay, transgender or the children of a same-sex couple. We are clear that the existing protections for teachers are sound. However, we are, of course, aware that these concerns exist. As the Minister for Sport and Tourism explained in the other place, we are continuing to discuss those concerns further with religious groups to ensure that we have done all we can to put the position beyond doubt. The same is true for employees generally and what they say about same-sex marriage, whether at work or not.

Freedom to express beliefs about marriage is not affected by this Bill. Discriminating against someone because they believe, or express the view, that marriage should be between a man and a woman only is unlawful under the Equality Act 2010. Article 9 of the European Convention on Human Rights also guarantees the right to freedom of thought, conscience and religion. At the same time, I must make it equally clear that it is not acceptable for an employee to act in an offensive or discriminatory way because of someone’s sexual orientation. It is wholly wrong to persecute someone for being gay, lesbian, bisexual or transgender. It is not wrong for someone to say that they do not believe in same-sex marriage. Some people have also expressed concerns that the religious protections in the Bill could be successfully challenged, whether before domestic courts or the European Court of Human Rights. We are confident that the protections are robust and effective, but rather than my talking about this in detail now, other noble Lords far more expert than I in these legal matters will no doubt wish to offer their views during the debate.

I turn to other aspects of the Bill and to some of the changes already made during its passage in response to our engagement with religious organisations and others. Part 1 allows same-sex couples to marry and provides the religious freedoms and protections I have already mentioned. Part 2 enables an individual to change their legal gender without having to end their marriage. Part 2 also contains an important new clause—Clause 14—added during Commons Report stage by a government amendment. This requires the Secretary of State to arrange for a review of the options and future of civil partnerships in England and Wales. With the Government’s agreement, this clause was amended to require that the review will begin as soon as practicable and will include a full public consultation. I am pleased to tell the House that the Government are already preparing for this review and will publish its terms of reference before Committee.

Other changes made by the Government in response to issues raised include fine-tuning the religious protections in specific areas, such as to protect the position of chaplains employed by secular organisations and the Church of England’s ecclesiastical law. We have clarified the arrangements concerning Scotland and Northern Ireland and made changes to improve fairness—for example, in relation to pension rights where a married partner has changed legal gender. Even though the Government have already made changes to the Bill, we continue to listen to concerns and are, of course, willing to consider further changes if necessary to make the protections clearer. Indeed, I should say that I, along with my noble and learned friend Lord Wallace of Tankerness, my noble friend Lady Northover and the Bill team officials, with all of whom I have the pleasure of working, will be glad to listen to the concerns of Peers and others with an interest in the Bill.

I speak in support of same-sex couples who want the opportunity to marry because, very simply, this Government consider their love and commitment to be no different from that of opposite-sex couples. We believe that same-sex couples should be able to marry if they want to, and that extending that choice is the right thing to do for them and for the future of marriage. If we want future generations to support marriage, we need the institution to reflect our modern inclusive society. I know that many noble Lords will also speak in support of the Bill today and I am grateful to them, but I also respect those who disagree with me. I understand that many who do not support same-sex marriage do so on the grounds of religious principle. To them, I would point to the religious freedoms which the Bill protects and promotes and say this: no religion or faith will be required to change its doctrines or practices because of the Bill if it chooses not to.

I also understand that some noble Lords are unsure whether to support this measure for a range of reasons personal to them. We all have the right to move at different paces when faced with change, but to those who feel unsure let me say this: same-sex marriage is new and different from what we have known up to now and I am not trying to say it is not. However, this change—allowing same-sex couples to marry—will not affect the nature or quality of existing marriages or new marriages between men and women. The Bill simply extends the opportunity for that same quality to be shared by all couples who honour the institution and desire it for themselves.

The Bill is a force for good and I commend it to the House. I beg to move.

Amendment to the Motion

Moved by
Lord Dear Portrait Lord Dear
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To leave out from “that” to the end and insert “this House declines to give the Bill a Second Reading”.

15:25
Lord Dear Portrait Lord Dear
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My Lords, I should like to thank the Minister for setting out the Government’s position on what is, by any stretch of the imagination, a contentious Bill.

“I don’t know what you mean by ‘glory’, Alice said. Humpty Dumpty smiled contemptuously. Of course you don’t—till I tell you. I meant ‘there’s a nice knock-down argument for you!’ But ‘glory’ doesn't mean ‘a nice knock-down argument’, Alice objected. When I use a word, Humpty Dumpty said, in rather a scornful tone, it means just what I choose it to mean—neither more nor less”.

I would suggest that if we substitute the word “marriage” for “glory” we get somewhere very close to the essence of today’s debate. As Humpty Dumpty might have said: “There’s a nice knock-down argument for you. Marriage means just what I choose it to mean—neither more nor less”.

If we move away from Lewis Carroll’s Alice and back through the looking glass, we find ourselves in a world where an ill considered Bill seeks to overturn centuries of tradition, heedless of public opinion and the views of religious leaders and blind to the laws of unintended consequences. It seeks to alter totally the concept of marriage as we have always known it, it seeks to divide a nation with an argument that hides behind the concept of equality when in reality it is about sameness, and it stands on its head all considerations of electoral mandate.

I am conscious that around 90 speakers await their turn to speak today and tomorrow so I will deal only very briefly with the essential elements of the arguments against the Bill but take, in turn, four things: the concept of the rule of the majority; the impact of the Bill on society; the flawed process that it has undergone so far; and, last but by no means least, the question of whether it is proper or appropriate to vote the Bill down at Second Reading.

First, I refer to the question of the extent to which a civilised society should accede to the wishes or the desires of a very small minority in its midst. In the debate on the humble Address on 9 May this year, an impassioned reference was made to the plight of homosexuals in Uganda and in other repressive regimes. This seemed to suggest that, if we were to defeat the Bill, this country could quickly regress to a state something approaching that in Uganda and elsewhere where homophobia is prevalent. Nothing could be more fanciful and nothing could be further from the truth. Like many other Members of your Lordships’ House, I have, for many years, championed the extension and the protection of minority rights, including homosexual rights and equality, and I have seen and applauded this country’s change of attitude towards homosexuality, from thinly veiled intolerance 50 years or so ago to a position of understanding and acceptance today.

With the introduction of civil partnerships, we have seen the legal rights of homosexual couples put on a par with those in a conventional marriage, with all the financial benefits available to both groupings. Indeed, those in a homosexual civil partnership are significantly better off in that respect than family members who live together without the benefits of such a partnership. Doubtless, we shall hear more of that as the debate progresses—more about the two sisters living together or the elderly parent and the unmarried daughter in the same household. All those are of course unable to enjoy the same financial benefits available to those in civil partnerships. In that respect, homosexual equality has outstripped equality for those in family relationships.

However, this part of the argument is much more about the lengths to which a society should go in order to embrace the demands from very small minorities. The utilitarian approach of Jeremy Bentham—the greatest good for the greatest number, where a simple majority carries the day—was challenged first by John Stuart Mill and then by other theological and jurisprudential writers in the 19th century. Very sensibly, it has been moderated over the years to a point where any society wishing to be thought of as civilised, tolerant and mature is judged by the degree to which it can accept minority views, even when those views fail to accord absolutely to the norms and views of the majority. However, there must come a point when, provided full equality for all under the law is guaranteed—this, I suggest, is perhaps the nub of this argument—the majority view should prevail, especially when the minority is tiny and the overwhelming majority is affronted. It is all a question of balance, wisely, and not least sensitively, applied.

The present danger of redefining marriage could well turn out to be counterproductive because tolerance can be overstretched. Look to contemporary France for an example. The similarities with this country are numerous. France has much the same population as our own, is still coming to terms with a revised role in the world, has an old and enduring national religion, has financial problems, and its leadership is questioned. Same-sex marriage has recently been forced through the French parliamentary process, with the result that mass demonstrations, and occasionally riots, have taken place in major cities in that country. Worse, the incidence of serious homophobic violence has markedly increased. I do not foresee violent street demonstrations in this country but I fear that the Bill, should it become law, could well create such opposition to homosexuals in general that the climate of tolerance and acceptance in this country that we have all championed, supported and seen flourish over the years could well be set back by decades—certainly for a long time.

Let me move on. In headline form only, let me pose a question or two. What is the impact of the proposed legislation on society? A change in the law would herald uncertainty in a number of areas, rather than certainty, and I will touch only briefly on those aspects now, confident that the other 90 or so speakers who follow me will explore some of these issues in much greater depth. Marriage between a man and a woman has been a part of life for centuries, predating nation, church and law. The lifelong commitment of a man and a woman is part of our history and culture. Evidence abroad, for example in Spain, shows that a redefinition of marriage actually undermines support for marriage in the wider society. There, marriage rates have plummeted. Noble Lords may advance their own theories as to why this has occurred in Spain and elsewhere but the facts are there for all to see and it is reasonable to conclude that redefining marriage is a contributory factor.

In the field of education very real fears exist that teachers who fail to endorse same-sex marriage could be dismissed. The Minister touched on this and other similar issues. Government reassurances that this will not be the case have been challenged as naive by leading counsel. Parents will not have a legal right to withdraw children from lessons that endorse same-sex marriage in the curriculum. The effect on schools will undoubtedly be divisive, and we should reflect on the fact that calls have already been made for children to act out gay weddings in class. I have to hand an opinion by leading counsel, prominent in employment law, who concludes that the Bill would create a duty to promote or endorse and not just to explain the new definition of marriage in sex education. Furthermore, he advises that schools could discipline teachers for failing to teach positively about same-sex marriage alongside opposite sex marriage.

Employment law is not likely to protect those who, as a matter of conscience, refuse to endorse the new law. Some noble Lords from the legal profession will want to expand their opinions on this at length. The fact that matters such as this are so strongly disputed, with leading counsel on both sides of the argument, must show that there is legitimate concern that cannot be shrugged off by mere rhetoric.

The well-being of children within marriage is a matter of very serious concern, certainly for those who accept the view that the best family grouping in which to grow up is a stable environment with two married parents, one of each sex. These and other major factors will be hotly debated today and tomorrow and they will highlight the sharp divisions that exist on almost every aspect of this Bill.

So if divisions exist—and they do—we should ask to what extent the Government have considered the totality of the problem. In a matter as fundamentally important and potentially so contentious as this, one could reasonably have expected any Government with pretentions at governing by consensus to have conducted deep and thoughtful research before drafting legislation. This Bill is hallmarked by the very lack of such an approach. A royal commission, or other similar learned group, might have been expected to call on the very best minds from the fields of theology, philosophy, sociology, jurisprudence and finance in order to take a long look at all the implications, to identify the pros and cons and to make mature recommendations. The Government did nothing of the sort. Instead, they seem to have relied on old, often partial, research and opinion that give only a fragmentary picture of the problem. There was no royal commission; no committee of inquiry; no mention of the Bill in any party manifesto prior to the last general election; no report from any parliamentary Select Committee. The Leader of the Conservative Party, questioned on Sky television only three days before the general election, declared that he had no plans for such a Bill. There was no Green Paper, no White Paper and no pre-legislative scrutiny. It was not included in the Queen’s Speech either last year or this year. However, after its introduction a few months ago, the results in the recent local elections were catastrophic. Around 450 seats were lost by the coalition parties, with all the analysis showing that the Bill was a significant factor in the swing of voters away from the main parties.

The Bill’s progress through the House of Commons was inauspicious. Back-Bench contributions at Second Reading were limited to only four minutes. The Government then delegated the Bill to a committee of 19 hand-picked MPs rather than to a Committee of the Whole House. Its membership was stacked 15 to four in favour of the Bill and not a single amendment was accepted by the Government. Committee debates were limited to only five days, in contrast to the Hunting Bill, when the Standing Committee lasted for 14 days.

The main parties announced a free vote, but there is a question mark over the freedom of that vote. In a letter signed by 15 MPs and circulated on 15 May, serious doubts were cast, citing,

“varying degrees of coercion, with threats made, for example, to an MP’s future political career or withdrawal of party support at future elections”.

Therefore, the apparent solid majority for the Bill in the other place must be considered, in part, at least, in that light.

The Government’s consultation exercise was about how to introduce the changes and not whether to do so. To put it bluntly, the results were rigged. The figures given by the Government indicated a total of 228,000 responses, with 53% said to be in agreement with the Bill and 46% against it—about even, tilting slightly towards approval for the Bill. However, that ignored two critical facts. First, the responses in favour were largely collected on the internet—anonymously, with no check as to whether the respondents were resident in the UK and no check on multiple entries from single respondents. Secondly, the Government accepted a signed petition collected by the Coalition for Marriage and arbitrarily counted it as one vote, deliberately ignoring the fact that it contained 509,000 verifiable signatures. That petition has now grown, I am told, to 660,000 signatures, although at the time of its closure there were, as I said, 509,000 verifiable signatures. Had that number of 509,000 been included, as it clearly should have been, it would have shown 83% of respondents against the Bill. That considerable public opposition is borne out by many reliable opinion polls. Some polls of course suggest the opposite but many have failed to make clear the existence of civil partnerships in posing the question to those being polled.

At this stage, I should say that since my name became linked in public with opposition to the Bill and I became something of a lightning conductor in public for all these issues, the number of communications I have received on the matter by e-mail and in my postbag falls just short of 1,000, of which 38—I counted them this morning—are in favour of the Bill and the remaining almost 1,000 are against it. I think that many noble Lords have had very similar results, if not in those numbers, then certainly in proportion.

Opposition from formal religious groups divides on the same lines. Quakers, Unitarians and Liberal Jews of course support the Bill but we should remember that together they represent less than 1% of the religious community. The largest bodies—the Church of England, Roman Catholics, Sikhs, Muslims and others—all adamantly oppose it.

Lastly, I turn to the vote at Second Reading. Understandably, some noble Lords have queried whether it is proper to challenge a Bill in this way at Second Reading in your Lordships’ House. I fully understand that question and I recognise and support the proud and long-standing tradition in this House to take particular care over every aspect of any Bill and to give it a full and fair examination before voting. However, that holds good only in normal circumstances, and the circumstances that we face today are abnormal. I am advised by the clerks that it is perfectly proper to vote on Second Reading. The 2006 Joint Committee on Conventions affirmed that the House of Lords retains the power to reject government Bills in free-vote situations. Votes against a Bill at Second Reading are unusual but they are not unknown. Examples that closely parallel these present circumstances are the War Crimes Bill and the Sexual Offences (Amendment) Bill, both of which occurred just over 10 years ago but both were free-vote issues without a mandate from a manifesto. The Health and Social Care Bill in October two years ago is the most recent and reliable example.

So if we can do it, and have done it, why oppose the Bill at this stage? Quite simply, I contend that the Bill is in a mess. It is ill thought-through, lacks support in the population as a whole and is likely to antagonise, or even inflame, public opinion. It has nothing to do with equality, which is already in place with civil partnerships, and it attempts to dignify an admittedly very small minority of partnerships with the description “marriage”—a term that has been understood differently for centuries.

If that were not enough, there is more. This House is asked to debate and examine a Bill that has not yet come anywhere near identifying all the consequences of change. The official government estimate of the numbers of amendments to existing legislation that would follow should the Bill become law is, in their words, at least 8,000 and they are still counting. It is no good telling me that there is provision in the Bill to take care of that, because the experience in Argentina, where similar legislation was passed in 2010, is chilling. In a paper provided by Dr Ursula Basset for the Pontificia Universidad Católica Argentina, she explains the changes now being debated in that country, which passed legislation similar to that which is on the table in front of us, in order to establish a redefined civil code. She said:

“It quickly became clear that legalising same-sex marriage required a revolution to our internal law. It impacted laws regulating public order, identity, gender, rules of kinship, filiation, marriage, names, marital property arrangements, divorce, alimony, parental rights, succession, domestic violence, adoption, artificial reproductive techniques, surrogate motherhood, liberty of conscience, criminal law, tax law and employment law, among other topics. All of these subjects would need to be attuned to the gender-neutral paradigm ... same sex marriage law in Argentina has turned the law upside down—no stone has remained unturned”.

That is what we face. Were we to consider the Bill in Committee, on Report and at Third Reading without at least some of that information at hand, it would frankly be like wandering into the dark blindfold. Hard on the heels of the procedure today at Second Reading, it looks as if we may be denied the chance of properly considering the Bill in Committee, since, to date, only two days have been allocated by the usual channels.

Even worse than that, we know that as the Bill left the House of Commons on the last day before the recess the Government announced their intention to conduct an immediate review of the whole issue of heterosexual civil partnerships. That is in Clause 14, which was introduced as a manuscript amendment. How can we be expected to consider turning the law of marriage on its head without taking full account of the implications of heterosexual civil partnerships as well? If we must consider changing marriage, let it be with all the facts at our disposal, all the consequences identified, all the financial implications worked out, all the social advantages and disadvantages known, and not blunder into a legal, theological, moral and sociological minefield.

I ask that this Bill should be defeated now, and not allowed to take up valuable parliamentary time in the later stages, when so many other pressing matters demand our attention. It should be defeated. The concept should be sent back to the drawing board because this is too serious and too important a matter to be introduced on a whim and handled in such cavalier fashion. The House of Lords is the final check, perhaps the only check, on the power of the Executive. It should use that power sparingly, but, on this occasion, use it positively. I beg to move.

15:48
Baroness Royall of Blaisdon Portrait Baroness Royall of Blaisdon
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My Lords, we live in a civilised and tolerant society, not in Alice’s Wonderland. I am proud to open this Second Reading debate on behalf of the opposition Benches. I know that a small minority of my noble friends are against this Bill, and, naturally, I respect their views, but the majority on my Benches, alongside the shadow Cabinet, Labour’s National Policy Forum and the Labour Party conference, warmly support both the Bill and the debate, which will enable us to recognise and affirm the loving and lasting commitment of couples who love each other. They must include the noble and learned Lord, Lord Brown of Eaton-under-Heywood, who with his wife is today celebrating their golden wedding anniversary. I am sure that the whole House will join me in sending them our heartiest congratulations.

I pay tribute to my right honourable and honourable friends and to those of all parties in the other place who have enabled the Bill’s safe passage. Many of them have shown considerable political courage. This is a hugely important milestone for equality, respect and dignity in our society, which rightly values stable relationships within the framework of marriage. I also thank the noble Baroness, Lady Stowell of Beeston, for an excellent introduction to the Bill—I hope that George Clooney was listening, of course—and for making herself available at all times to discuss concerns and answer questions. From experience, I know that it is particularly challenging for a Whip to take responsibility for a controversial piece of legislation, and I know that she will do a terrific job.

In an ever-changing world where turmoil and instability are too often the norm, it is a cause for celebration when two people of either the same or the opposite sex wish to commit their lives to each other through marriage. I am the product of a happy marriage and I had the good fortune to enjoy nearly 30 years of marriage. Our aim, like that of so many other couples, was to grow old together and to support each other in sickness and in health. We had our ups and downs, but the fact that we were married increased our resolve to make our relationship work, and it was the framework within which we wanted to raise our children. Of course, I have friends who are single and who are great parents, and friends who have lived together for many years and who are wonderful parents, such as my noble friend the Chief Whip—although I am delighted to say that on Saturday, he and his partner Jill are going to be married. I celebrate that and I would like to be able to celebrate the marriage of gay friends, with or without children.

Last week, I thought a lot about marriage: not just because of the Bill, but because I was choosing a wedding dress with my daughter, Charlie. We talked about marriage, which she described as an important ritual that would enable her to make a commitment to the man she loves in front of family, friends and our community. If Charlie wanted to marry Katherine instead of Kane, would I feel any different? No, I would not, and I would want other parents to have the same joy as I in celebrating the marriage of their children, whether they love people of the same or the opposite sex.

Some people ask why the Bill is necessary when we already have civil partnerships—often, I have to say, the same people who opposed those partnerships when we introduced them in 2004. Civil partnerships were a fantastic step forward and continue to be a great source of joy and security, but some people wish to choose marriage. It has a special status in our society, both historically and symbolically, and it represents a very particular value that the state has placed on the relationship. I well understand that this Bill has caused anguish for some people of faith who have concerns either because of the impact of the Bill on their faith or on the grounds of faith. I respect all genuine concerns—although clearly not those that are rooted in homophobia—and I am sure that our consideration of this Bill will be conducted with our usual tolerance, respecting our differences. I have to say, however, that I simply do not understand those who say that equal marriage can harm or undermine marriage between a man and a woman. Surely if we value and cherish marriage, we should want all those who wish to marry to be able to do so, and we should welcome the fact that marriage would be strengthened by opening it up to more couples. Surely we should be encouraging our young people, who see the love and strength their parents draw from their marriage, to aspire to the same commitment regardless of whether it is with another man or another woman.

There has been much discussion about whether there are sufficient protections for religious organisations. Just like equality, freedom of religion is central to a human rights-based society. That is why it is vital that the Bill does not impose an obligation on any faith group to conduct same-sex marriages. The Minister has spoken in detail about the quadruple lock and we are satisfied that the protections the Government have put in place in the Bill are sufficient to ensure that no faith group will be at risk of a human rights challenge for refusing to solemnise same-sex marriage. Naturally, this House will carefully scrutinise the protections contained in the Bill for religious freedom. I welcome that, and I look forward to the contributions of the noble Lord, Lord Pannick, and my noble friend Baroness Kennedy, who were crystal clear in their evidence to the Public Bill Committee.

I look forward also to the contribution of the most reverend Primate to this debate. I know that the Church of England has rightly been working closely with the Government and I am pleased that there is agreement that the safeguarding of the position of canon law has been achieved and that the quadruple locks offer the necessary protection. I know that the Bishops now warmly support civil partnerships and I have read of the Bishop of Salisbury’s endorsement of same-sex marriage. Both are matters to be celebrated. I have also had excellent discussions with some right reverend Prelates in which we agreed that, from their perspective, the Bill would not result in the sky falling in or family life falling apart, while from my perspective it would not be a panacea for relationships, be they gay or straight. I also take this opportunity to send our best wishes to the most reverend Primate the Archbishop of York for a speedy recovery.

Naturally, I am glad that the Government have listened to the concerns of the Church in Wales that were raised by my colleagues in another place, which resulted in an amendment to ensure that the Lord Chancellor will have no power of veto over the church’s decision, should it wish in future to provide for same sex marriages. The position of the Quakers and Unitarians, and of Reform Judaism, is absolutely clear, and I am delighted that the Bill will enable them to opt in to performing same sex marriage according to their religious rites.

Last week, while thinking about the Second Reading, I watched “The Times of Harvey Milk”. I wept at what one might call a chilling reminder of the pain and suffering that gays and lesbians endured a few short years ago—their lives blighted by society’s attitude towards their sexuality. That was 1970s America, but in the 1960s in this country people were locked up or punished for loving someone of the same sex. The Conservative Government introduced Section 28 in 1988 and it was not repealed until the Labour Government came to power. We had a proud record in making progress against discrimination and in favour of equality, and I am grateful for the generous comments of the noble Baroness. As well as civil partnerships, we equalised the age of consent, ended the ban on LGBT people serving in our Armed Forces, made homophobia a hate crime, outlawed discrimination in the workplace and in goods and services, and did much more. The measures were controversial at the time but now have widespread support.

We have come a long way, but there still needs to be a cultural shift. The Bill is not only hugely important for same-sex couples who wish to marry, and for transgender people who are in a marriage; it can play a critical role in driving attitudinal change. As noble Lords are aware, 20,000 homophobic crimes are still committed in this country every year, and many children suffer homophobic bullying. They are not just children who may be growing up to be gay, but those with lesbian or gay parents. Ninety-five per cent of secondary-school teachers have reported hearing anti-gay language in their schools. The Marriage (Same Sex Couples) Bill will be a useful tool in tackling these attitudes. It will not just ensure legal equality in the eyes of the state but encourage society to celebrate the identity, relationships, commitment and love that lesbian and gay people share.

There are some outstanding issues in relation to the Bill that were raised in the other place and have not been resolved. First, pension rights are the subject of considerable debate. Currently, the Bill provides for less generous pension rights for same-sex married couples than for those of opposite sexes in respect of survivor benefits. In the Commons we called on the Government to come forward with an immediate review into the implications of equalising pension rights, and we will urge them to do this in the course of the Bill.

Secondly, our Front Bench supported amendments to allow couples to have humanist marriages in England and Wales, as almost 3,000 already choose to do in Scotland. On Report in the other place, the Attorney-General raised new concerns about the amendments’ compatibility with the Human Rights Act. However, we hope to resolve these issues in Committee in this House.

Thirdly, on transgender issues, the Bill will enable individuals to change their legal gender without having to end their marriage, righting a big injustice in our society. We welcome these amendments brought forward by the Government on Report in another place to protect pension rights for spouses who change their legal gender, as a result of issues raised by my colleagues and others during the Public Bill Committee. However, we will look carefully at further amendments that may be brought forward in relation to transgender marital issues.

With regard to heterosexual civil partnerships, a matter of much debate in the Commons, we are pleased that the Government have now committed to an immediate review of the introduction of such partnerships. I welcome the fact that the terms of reference for this review will be available before Committee. There were long debates on the issues of teachers and registrars. Our views on this are clear, but it is right that these issues of great importance should be debated fully in your Lordships’ House.

I am grateful to the Government for giving extra time for this Second Reading debate and ensuring that the vote will take place at a proper time. Some in this House will vote in favour of the amendment tabled by the noble Lord, Lord Dear, and against the Bill. I respectfully remind him that proposals to fragment our National Health Service did not appear in any of the party manifestos, nor in the coalition agreement. Perhaps more importantly, I refute the noble Lord’s suggestions about support for the Bill. The latest YouGov polling shows that 71% of people support same-sex marriage, including three out of five people of faith. The noble Lord also alleged that the Bill would affect divorce rates. It is true that divorce rates in Spain increased, but that was because it liberalised its divorce laws at exactly the same time as introducing same-sex marriage.

In respect of the composition of the Public Bill Committee and the allegations that its membership was stacked, the only reason that the committee was thus constituted is that the same MPs had previously insisted on a free vote across the Commons. This meant that the committee’s membership represented the very heavy Commons vote in favour of the Bill at Second Reading. In terms of e-mails and postbags, I am sure that those who are against the Bill wrote to the noble Lord, Lord Dear, while those who are in favour of the Bill wrote to me. To that extent we should question the comments made by the noble Lord.

However, all in all, I trust that following the detailed and careful scrutiny that this House will give, noble Lords will be convinced both by the safeguards in terms of religious faith and the arguments in terms of removing discrimination and extending the dignity and joy of marriage to same-sex couples. I firmly believe that our society will be strengthened when more couples are able to choose to make a lifetime commitment to each other, and when all members of our communities are able to celebrate their identity and relationship within the institution of marriage.

00:00
Baroness Barker Portrait Baroness Barker
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My Lords, I declare an interest. Many years ago, I had the great good fortune to meet someone. She and I have loved each other ever since—that is, apart from the occasional spectacular argument, usually about driving or DIY. As the slogans on the T-shirts used to say, it happens in the best of families. It was therefore with great relief that I read the letter from the Bishop of Salisbury to the noble Lord, Lord Alli, in which he said:

“Whilst marriage is robust and enduring, what is meant by marriage has developed and changed significantly”.

There have been many changes to what constitutes marriage over the years. In 1836, there was the change that allowed civil marriage. In 1949, there was the change that made 16 the minimum age for marriage. Those changes came about because of campaigns that were run by minorities and resisted by majorities for a very long time, but they are not changes that would now be overturned.

What we are doing today does not undermine any existing or future marriage. It extends the status of marriage to gay men and lesbians who want to make a public commitment in the presence of their families and friends, and sometimes their co-religionists. It reflects the wishes of those people who today do not want just to tolerate lesbians and gay men; they want to celebrate and support them as people in their own right.

Some noble Lords say that allowing gay people to get married is unfair because it leaves other sorts of relationships, such as those of siblings, without the same legal rights as those who choose a marital status. If enabling gay marriage will be unfair to another relationship, such as that of two sisters, then existing marriage laws are unfair. I think we all understand that relationships which adults enter into voluntarily are wholly distinct from relationships which are determined by consanguinity. If family members could become civil partners, it would be really easy for a bullying parent or sibling to force a member of their family into a relationship simply in order to protect property. I do not think that any of us want to legislate for that.

A great deal has been made about the issue of a conscience clause for registrars and other public servants. I grew up in a time and a place when discrimination in public services on the grounds of religion was not uncommon. It caused resentment and divided communities. The idea that public servants should decide, according to their personal beliefs, who does and does not receive a public service is just wrong. Taxes are levied on a non-discriminatory basis and services should be provided on a non-discriminatory basis.

Some opponents of this Bill say that we should not be addressing this—not when we have these huge economic difficulties. I disagree. Discrimination always comes with a price tag. In the United States, hundreds of employers—some very small; some of the biggest in the world, such as Nike and Microsoft—are assisting legal cases in support of gay marriage. These employers need to recruit and retain the most productive staff to make their businesses competitive—and that includes LGBT staff. These businesses want their gay employees to be able to focus on their jobs, not to be dealing with the inequality that means that they and their families always have to sit at the back of the bus. If those businesses have figured out that same-sex marriage is good for business, so should we.

This is a Bill about religious freedom. As somebody who was raised a Methodist, that is something that has been important to me all my life. No religion will be compelled to offer a same-sex marriage. On the same basis, it would be wrong to deny the rights of those religious organisations that wish to extend their fellowship to gay people and their families.

There is no impediment which would prevent this House from doing its job and subjecting this Bill to the high standards of scrutiny that it would apply to any other. In doing so, Members of your Lordships’ House will think long and hard, as they always do, about what is right and in the best interests of our society.

I and many of my colleagues on these Benches look forward to joining with noble Lords from all parts of the House to ensure that gay people and their families are afforded the dignity and respect that others take for granted, and that families, faiths and communities can grow stronger together as a result.

16:06
Lord Archbishop of Canterbury Portrait The Archbishop of Canterbury
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My Lords, the initial proposals published at the end of the autumn have needed much work to get them into today’s form. Much of that work has been done through detailed legal effort and discussion. I am deeply grateful to the DCMS teams and especially to the Secretary of State for the thoughtful way in which she has listened and the degree to which she has been willing to make changes in order to arrive at the stage we have reached today.

We all know, and it has been said, that this is a divisive issue. In general, the majority of faith groups remain very strongly against the Bill, and have expressed that view in a large number of public statements. The House of Bishops of the Church of England has also expressed a very clear majority view—although not unanimous, as has been seen by the strong and welcome contribution by the Bishop of Salisbury.

The so-called quadruple lock may have some chance of withstanding legal scrutiny in Europe, and we are grateful for it, although other faith groups and Christian denominations that have written to me remain very hesitant. There have been useful discussions about the position of schools with a religious character and the issues of freedom of conscience. I have noted the undertaking of the Minister on those subjects and am grateful for what she has said. The Minister has put forward all her views today with great courtesy and persuasive effect. I join in the remarks of the noble Baroness, Lady Royall, in appreciation of that. I have to say that personally I regret the necessity of having to deal with the possibility of a Division at this stage on a Bill passed by a free vote in the other place.

I was particularly grateful to hear the speech of the noble Baroness, Lady Royall, and agree with the proud record that was established in this area by the previous Government during the years in which they held office. If I may, I will pass on her comments with gratitude to my colleague the most reverend Primate the Archbishop of York.

It is clearly essential that stable and faithful same-sex relationships should, where those involved want it, be recognised and supported with as much dignity and the same legal effect as marriage. Although the majority of Bishops who voted during the whole passage of the Civil Partnership Act through your Lordships’ House were in favour of civil partnerships a few years ago, it is also absolutely true that the church has often not served the LGBT communities in the way it should. I express my sadness and sorrow for that considerable failure. There have been notable exceptions, such as my predecessor, the late Archbishop Ramsey, who vigorously supported decriminalisation in the 1960s. It is also necessary to express, as has been done already, total rejection of homophobic language, which is wrong and, more than that, sickening.

However, I and many of my colleagues retain considerable hesitations about the Bill. My predecessor, the noble and right reverend Lord, Lord Williams of Oystermouth, showed clearly last summer in evidence to the consultation that it contains a series of category errors. It confuses marriage and weddings. It assumes that the rightful desire for equality, to which I have referred supportively, must mean uniformity, failing to understand that two things may be equal but different. As a result, it does not do what it sets out to do. Schedule 4 distinguishes clearly between same-gender and opposite-gender marriage, thus not achieving true equality.

The result is confusion. Marriage is abolished, redefined and recreated, being different and unequal for different categories. The new marriage of the Bill is an awkward shape, with same-gender and different-gender categories scrunched into it, neither fitting well. The concept of marriage as a normative place for procreation is lost. The idea of marriage as a covenant is diminished. The family in its normal sense, predating the state and as our base community of society, as we have already heard, is weakened. I am sure that these points will be expanded on by others in the debate, including those from these Benches.

For these and many other reasons, those of us in the churches and faith groups who are extremely hesitant about this Bill in many cases hold that view because we think that traditional marriage is a cornerstone of society, and rather than adding a new and valued institution alongside it for same-gender relationships, which I would personally strongly support to strengthen us all, the Bill weakens what exists and replaces it with a less good option that is neither equal nor effective. This is not a faith issue, although we are deeply grateful for the attention that the Government and the other place have paid to issues of religious freedom. However, it is not at heart a faith issue. It is about the general social good. Therefore, with much regret—but entire conviction—I cannot support the Bill as it stands.

16:12
Lord Fowler Portrait Lord Fowler
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My Lords, I will be brief. First, I congratulate the most reverend Primate on his speech. It was, as we might have guessed, impressive, well argued and, above all, compassionate. I thank him for that, but fear that I disagree with his conclusion.

Before I get to that, perhaps I could deal first with the amendment of the noble Lord, Lord Dear. I have a deep respect for this House. I do not share the dismissive and, frankly, offensive views of the noble Lord, Lord Oakeshott, on the “Today” programme, which was the first interview I heard on flying in from Washington just in time for this debate. I accept and recognise that this is an appointed House, and it is an enormous privilege to be appointed to it. However, with that privilege come limitations on what we can do. Of course we can question legislation and seek to improve it. However, in my view, we cannot defeat at Second Reading the declared will of the House of Commons when, on a free vote, it has voted by over two to one to pass this legislation.

The noble Lord, Lord Dear, expressed doubts about the voting. I was in the Commons for 31 years and the allegations he repeated sound very much like the consistent complaint made by those who have been defeated in a free vote. No party and no set of Whips would respect someone who could be persuaded by pressure to change his view on a free vote. That part of the noble Lord’s speech is frankly nonsense. I believe MPs have the authority that comes from their election and which they retain as long as they are MPs. Much is said about public opinion, and we have heard it already, but we should recognise that they and they alone are answerable to the public on this issue and not us in this House. We cannot take over that role; that is not our position. I thought that this was exactly the case some of us were putting a few months ago to avoid the prospect of two elected Houses standing side by side.

We would be profoundly wrong, if not politically suicidal, to vote against a Second Reading. However, I do not argue the case purely on those grounds—I also strongly believe in the Bill itself. Parliament should value people equally in the law and enabling same-sex marriage removes a current inequity. I believe that there are many gay and lesbian couples who want more than civil partnership, although it is something of a wonder to me to see how civil partnerships have suddenly become so popular among those I do not remember supporting them up until now. We should recognise that there are many deeply religious gay and lesbian couples, including people in the church, who want the commitment that marriage offers. This Bill, rather than weakening the institution of marriage, strengthens it, and our purpose as a Parliament should be to encourage the stability it can bring.

Just before I left Washington I had a meeting with a senior doctor who happens to be gay. Washington DC already has a law enabling equal marriage, as do other American states and they appear to have managed perfectly well. As it happens, he had not pushed for the change but he said that, quite apart from the rights of the individual, it sent out a much wider message for gays and lesbians that, in his words: “We are like everyone else”. That was the point and the message that was being put out. An obvious fact, you might say, but one that is denied by many countries around the world. It is denied by their Governments and their people and sometimes, I regret to say, by their churches. Over the past few months I have travelled to some of those countries and have seen the prejudice. I acknowledge freely the profound impact that that has had on me, which very much affects my attitude this afternoon.

I say to the noble Lord, Lord Dear, that this is my argument regarding the foreign experience and not the travesty of it which he sought to set out. I have seen equality fiercely denied in eastern Europe; in a country such as Ukraine, which he mentioned, too often politicians show their contempt for gay people and violence against them is the result. I have particularly seen equality denied in countries in sub-Saharan Africa such as Uganda. For several years there was a popular paper there whose sole purpose was to expose gay people, photograph them, give their addresses and invite the violence against them that followed. Homosexuality is a criminal offence there and of course the British first made it one, as we have in other African countries.

I am not optimistic enough to believe that our decision here tomorrow will break down the persecution, hostility and discrimination. However, it will show decisively how this country has changed, and the value we place on gay and lesbian people in our society. I believe that it will show support for the persecuted minorities around the world—and make no mistake, they exist. At home, I believe it will show the gay and lesbian community our belief in equality—I thought that the noble Lord, Lord Dear, was a little complacent about the position on that—and, above all, their right to expect what we all expect; nothing more, but certainly nothing less. For some of us, that is a fundamental moral issue.

16:20
Baroness Kennedy of Shaws Portrait Baroness Kennedy of The Shaws
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My Lords, this issue raises a great deal of passion because it touches on things that we all care about: equality, human rights and our religious beliefs. The noble Lord, Lord Pannick, and I were invited before the committee that examined this Bill before its passage through the House of Commons. We were asked to present a legal view on the likely success of any challenge to the special protections being given to religious organisations—the churches and so on—in the Bill. We both took the opportunity to speak to legal organisations, to colleagues in the law and to people who often took different positions and different sides on many issues concerning rights. We were both firmly of the view that the protections provided by the Bill to churches, religious organisations and church ministers are strong and should reassure this House that there is no real risk of a successful challenge.

There is no obligation whatever on religious organisations to host gay marriages if they do not wish to do so. The legal position is that it is permissible but absolutely not required in law. Any requirement on a church, religious organisation or minister to conduct same-sex marriage contrary to the religious convictions of its members would violate Article 9 of the European Convention on Human Rights. The protections of that article are very strong and any analysis of the jurisprudence will show that the desire to maintain those protections is strong. The case brought by the Muslim community against the Bulgarian Government, which went all the way to the European Court of Human Rights, laid down an important principle: the autonomous exercise of religious freedoms, and that exercise by religious communities, is indispensable for pluralism in a democratic society.

Why, then, is this Bill going through? It is going through because over my lifetime as a practitioner in the law we have seen a huge change in the position of gay people in our communities. It is interesting to note in this House, where the average age is above 60, that people above the age of 60 express the greatest concern about any change in the law. People under the age of 60 by and large favour this change. You have to ask yourself why that might be. I think it is because of the growing tolerance in our society and the desire to see people treated as equals regardless of race, sexuality or gender. That is something that we should cherish and see as an enormous achievement for our society.

The claim is that marriage is a union between a man and a woman by tradition, custom and practice. The noble Lord, Lord Dear, articulated it at the beginning of the debate. Of course, initially the idea was that marriage was about protecting property and making claims on children, and its purpose was to produce and provide a framework for the protection of property and in which children could be raised in a decent and wholesome way. That conception of marriage came into being before we knew as much as we now do about the human condition. We have now separated out the sexual act for the purposes of procreation from the sexual act as a source of sexual fulfilment. Even the churches would acknowledge that.

A woman or man can nowadays know for sure that they cannot conceive a child, but none of us would expect that to reduce in any way their entitlement to marry. A couple may decide to marry and enjoy what they see marriage as providing for their relationship, even if they know that they will not have children. We know those—there are many in this House—who, on the death of their partner, have gone on to marry again after the age at which they would ever have children or provide the framework for the conventional family. They do so because they want to create a special commitment to the person whom they choose to marry.

We have to ask ourselves whether some of the reasons and rationales for maintaining something are not disguising other concerns. We have changed the meaning of marriage. We have changed it intentionally to be inclusive and to make it possible for people who want to make a commitment in love to another to be able to enter into this public declaration in the way that we do. We must also remind ourselves what it is touching upon. It is touching upon the desire in most human beings to love and be loved. It is part of the whole nature of our humanity. That people, gay or straight, should want to do that—to declare it in the presence of those they consider to be their community and to be part of the whole that is our society—is surely an advance on marriage as it is currently constructed. It means that, in fact, we are enhancing rather then diminishing the meaning of marriage.

Therefore, as I close these few comments I say that, having reviewed the law, Article 9 of the European convention—which protects religions—is about the needs of community and society, and how they have to be balanced with individual needs. In doing that, the churches can have the protection that they have so earnestly sought from the Secretary of State. However, we are also strengthening our society by giving the right to marry to those who earnestly want it and want to be able to live openly and publicly in a declaration of love. I submit to the House that that has to be something that the law should support.

16:28
Baroness Brinton Portrait Baroness Brinton
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My Lords, last month it was wonderful to hear the general acclamation in the House for the First Reading of the Alan Turing (Statutory Pardon) Bill. It was the first time in my brief two and a half years in your Lordships’ Chamber that I have heard such a response to the First Reading of a Bill. It demonstrates how societal attitudes towards homosexuality have moved on over the past 60 years. It was brought home to me five years ago when my husband and I celebrated our silver wedding anniversary and two close gay friends invited us to their civil partnership, with a date chosen to mark 25 years of their private commitment to one another. Over that 25-year period they have been harassed and attacked, and are so cautious still that they would rather that I did not mention them by name. That ceremony was a moving event, but it was not marriage; it was a legal arrangement that helped provide them with certain protections, but it was not the commitment that you have with marriage. I support civil partnerships but believe that marriage should be available to those who want to make that greater commitment.

The core of marriage to me as a Christian—and, by the by, as a member of the Church of England—is that the commitment made by two people of their undying love to each other, through good times and bad, through sickness and health, stable and faithful, as the most reverend Primate the Archbishop mentioned, is a building block of our society. I respect those for whom the theological arguments are core to their beliefs and practice but, frankly, I struggle to find those arguments expressed by Jesus himself in the New Testament. I also want to quote from the letter of the Bishop of Salisbury, who I suspect will be quoted frequently today. He says:

“The desire for the public acknowledgment and support of stable, faithful, adult, loving same sex sexual relationships is not addressed by the six Biblical passages about homosexuality which are concerned with sexual immorality, promiscuity, idolatry, exploitation and abuse. The theological debate is properly located in the Biblical accounts of marriage, which is why so many Christians see marriage as essentially heterosexual. However, Christian morality comes from the mix of Bible, Christian tradition and our reasoned experience. Sometimes Christians have had to rethink the priorities of the Gospel in the light of experience”.

He goes on to cite slavery and the apartheid system in South Africa. I would add to that the church’s view, and that of society, about contraception early in the 20th century. My noble kinswoman Baroness Stocks was roundly and publicly harassed for working alongside Marie Stopes for early contraception. Society today would be horrified if that were to be repeated.

There are other faith groups that agree that same- sex marriage is important. I briefly quote from Rabbi Lea Mühlstein, from the progressive West London Synagogue, who says:

“Judaism holds that every person was created in the image of God. It is clear to me that the divine image in all of us demands from each of us that we be treated equally before the law. As such, I am divinely obligated to respect the needs and wishes of my congregants—whether they be straight or gay, lesbian or bisexual”.

The Quakers, as ever, set the pace on this. In 1963, in their paper, Towards a Quaker View of Sex, they said:

“Surely it is the nature and quality of a relationship that matters; one must not judge by its outward appearance but by its inner worth … We see no reason why the physical nature of a sexual act should be the criterion by which the question whether or not it is moral should be decided. An act which expresses true affection between two individuals and gives pleasure to them both, does not seem to us to be sinful by reason alone of the fact that it is homosexual”.

The Quakers see God in everyone, and all commitments to relationships as of equal worth. So I am pleased that the Quakers have said publicly that they will opt into the registration arrangements and carry out equal marriage with enthusiasm.

The quadruple lock protects and facilitates same-sex marriage for religious groups. Speaking as a member of the Church of England, I hope that we might begin a debate that acknowledges the breadth of views within our church, even if the noise from those opposed to equal marriage is louder than that made by those of us who believe that love and marriage is God-given to all.

Very briefly, I turn to Clause 12 in Part 2, which rights a dreadful wrong faced by transgender people in a marriage. It has caused immense distress to those already facing the turmoil of major changes in their lives. I am delighted that these proposals now accept that changed gender status should not imperil an existing marriage.

I, like others, am concerned about voting at Second Reading. My point is that as Peers we should not be voting on whether we like or dislike the Bill. It is important that we give this House the chance to debate and amend as we see fit—a strength that this House has shown to another place on many occasions.

Our society has moved on even in the eight years since the introduction of civil partnerships. Surveys show that a majority of people welcome same-sex marriage—including, as has already been mentioned, three out of five of those with faith. It is important that we move forward to hearing that public voice. Now is the time for equal marriage. Please do not let my friends have to wait another 20 years, until their golden anniversary, before they can choose to marry.

16:35
Lord Waddington Portrait Lord Waddington
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My Lords, surely the noble Lord, Lord Dear, was correct to start his speech by saying, in graphic language, that this Bill is about imposing an entirely new meaning on a term as familiar and fundamental as “marriage”. Throughout history, in all countries and cultures, marriage has been the union of a man and a woman; and although not every married couple have or want children, the core function of the union has always been the procreation and joint care of children. Over the years, of course, there have been changes in marriage law, but throughout history there has been no change in the essential nature of the institution—the union of a man with a woman.

It has never been a matter of gays being banned from marrying. It was never even thought remotely possible that the term could be applied to two people of the same sex. Now we are told that it is unjust to treat same-sex and opposite-sex relationships differently, but surely it is no disrespect to anyone, just common sense, to point out that we are talking of two types of union which are indeed different—entirely different. From the obligation to care for any children, and to consummate the marriage or face a decree of nullity, to the commitment to sexual fidelity, with the threat of divorce on the grounds of adultery, there is no way in which the union of a man and a woman, with all these serious implications, can be compared with the wish of a couple to see their partnership publicly recognised.

I remind your Lordships of something that may have been forgotten. On 11 February 2004, the noble Lord, Lord Filkin, speaking for the then Labour Government, declared from the Dispatch Box—unchallenged by any Member of the House—that,

“marriage should be possible only between people of opposite gender”.—[Official Report, 11/2/04; cols. 1093.]

He went on to say:

“The concept of same-sex marriage is a contradiction in terms, which is why our position is utterly clear: we are against it, and do not intend to promote it or allow it to take place”.—[Official Report, 11/2/04; cols. 1094-95.]

What on earth has happened to turn what was out of the question those few years ago into a great national priority? Is it because of a change in the law in other countries? If that is the case, we should look at what has happened in Spain, Holland and Scandinavia, where, since same-sex marriage has been allowed, the decline in heterosexual marriage has been precipitous.

Finally, this Bill is not just about enlarging the rights of same-sex couples; it will have a dramatic effect on others. With the Deputy Prime Minister calling opponents of the Bill bigots, with Lynne Featherstone saying they are,

“fanning the flames of homophobia”,

and with traditional marriage being likened to apartheid and slavery, there is already a nasty whiff of intolerance about, directed at those who support traditional marriage, and with freedom of conscience and freedom of speech threatened.

Let us not forget that our courts have already ruled in a number of cases, including the celebrated case of the Catholic adoption society, that the demands of equality are more important than the right of people to observe the dictates of their faith. So woe betide those working in the public service who express the view that marriage is the union of a man and a woman. Each will, if not threatened with dismissal, have a torrid time being treated as bigots. Ordinary people with deep feelings about the sanctity of marriage will also be demonised as homophobic and will be very lucky if they do not finish up accused of hate crime.

For this, Mr Cameron thought it was worth picking a fight with his best supporters. It was a big mistake.

16:40
Lord Pannick Portrait Lord Pannick
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My Lords, I warmly welcome the Bill for the reasons stated by the Minister and the noble Baroness, Lady Royall, in their admirable speeches opening the debate.

I much regret that the noble Lord, Lord Dear, should think it appropriate to seek to deny a Second Reading to a Bill which has received overwhelming support in the other place on a free vote. The noble Lord emphasised what he described as the majority view in the country at large. I have to tell him and others who share his views that the world out there has moved on and that for most people, particularly those under 60, the sexuality of their neighbours is neither a concern nor a threat, as the noble Baroness, Lady Kennedy, said. It bemuses people that any element of unequal treatment should remain in our society simply by reference to people’s sexual orientation.

Many people outside the House listening to the debate or reading it in Hansard in due course will wonder why the noble Lord, Lord Dear, and his supporters, all of whom rightly value the institution of marriage, seek to deny the same happiness, fulfilment and status to other people simply by reference to their sexual orientation. I am a paid-up member of the married club and glad to be so. It is precisely because of the value of marriage that it should not be denied to same-sex couples. There is no question of the Bill being introduced on a whim, as the noble Lord suggested. It is being introduced on a fundamental question of principle to address a wrong that needs to be addressed.

I wish to comment on a theme which appears to drive the Bill’s opponents. The noble Lord, Lord Dear, referred to what he described as centuries of tradition and the concept of marriage as we have always known it, and the noble Lord, Lord Waddington, made similar points. This is to treat the law of marriage like the law of the Medes and the Persians which, according to the Book of Daniel, chapter 6, verse 8—the devil can quote scripture—“altereth not”. The reality is that the law of marriage in this country has altereth a lot. It has altereth a lot from time to time according to changes in social conditions and social attitudes. The noble Baroness, Lady Barker, made this point in her powerful contribution to the debate.

Prior to legislation in 1907, a man could not marry his deceased wife’s sister. Prior to 1921, a man could not marry his deceased brother’s widow. Other prohibited degrees were removed in 1931. All of this information is in the valuable Halsbury’s Laws of England edited by the noble and learned Lord, Lord Mackay of Clashfern. The Gender Recognition Act 2004 allowed a transsexual to marry in his or her acquired sex even though, I remind the noble Lord, Lord Waddington, procreation is plainly not possible in such circumstances. The minimum age for marriage has been altered from time to time; the law related to the validity of non-Anglican marriages has developed over time; the law of divorce has been amended from time to time; other incidents of marriage have been the subject of change. Until case law in the 1990s when the first judgment in the modern era was given by the noble and learned Lord, Lord Brown of Eaton-under-Heywood, the law proceeded on the basis that a husband could not be criminally liable for raping his wife if he had sexual intercourse with her without her consent.

It is, therefore, simply unsustainable for critics of the Bill to suggest that there is anything unprincipled in Parliament amending the law of marriage in a fundamental manner to recognise social developments and to do it in accordance with basic principle.

I will make one other point if I may. I have provoked the noble Lord.

Lord Dear Portrait Lord Dear
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As we are both Benchers of Gray’s Inn, the noble Lord would have to go a long way to provoke me. Before we go any further, may I ask the noble Lord if he has taken notice of the fact that at no stage in my address did I say that because the law and custom of marriage were well established we should continue in the same vein? The main thrust of my address was that sufficient research has not been carried out into the laws of unintended consequences. Could he address that?

Lord Pannick Portrait Lord Pannick
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I cannot address every point made by the noble Lord. If he fails, as I hope he does, to prevent the House from debating the detail and the arguments in Committee and on Report, I very much hope that the House will address every point made by him. I focused on his completely unsustainable suggestion that there are “centuries of tradition” and that the concept of marriage as we have always known it is being removed. I am quite happy to try to deal with every point if noble Lords want me to make a speech of 30 or 40 minutes but I will not trespass on the tolerance of the House to do so.

I do not accept that there are unintended consequences. I will deal finally with just one suggestion of an unintended consequence made by the noble Lord and other critics—that the Bill is going to force religious bodies to conduct same-sex marriages contrary to their religious principles. The noble Baroness, Lady Kennedy, mentioned that we both gave oral evidence on this subject to the House of Commons Public Bill Committee. I explained my view that there was no realistic possibility whatever that any court, domestic or European, would compel a church or other religious body to conduct a same-sex marriage ceremony contrary to the doctrines of that religious faith. The reason is very simple: under this Bill, a same-sex couple will be able to enter into a civil marriage. Their only reason for wanting a religious ceremony would be to gain a religious benefit. All, and I mean all, case law confirms that courts will leave religious bodies to decide on the allocation of religious benefits. None of the other legal concerns raised by the opponents of the Bill seems to have any basis whatever.

I am confident that this House will give a Second Reading to the Bill tomorrow and I very much look forward to a reasoned debate in Committee on all questions of detail.

16:50
Lord Bishop of Leicester Portrait The Lord Bishop of Leicester
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My Lords, having conducted some 400 weddings as a parish priest, making the journey with couples as they anticipate a lifelong commitment has been one of the great privileges of the ordained life. I have witnessed personally the stability, fulfilment and anchor for life for so many, which has been transformational. However, I have also observed that the open and public recognition of gay relationships that civil partnerships now provide displays many of the very qualities for which marriage itself is so highly celebrated. I speak as one whose respect for and appreciation of gay clergy is deep and who recognises in them sacrificial lives and fruitful ministries. I also recognise the need for some humility at this moment in speaking on matters of equality from these Benches. I add my appreciation to that of the most reverend Primate for the way in which the Secretary of State and her colleagues have tried to accommodate the Church of England’s concerns at every point in this process. I entirely endorse what the noble Baroness, Lady Kennedy, and others have said about the need to continue to make progress on the inclusion of gay people in our society, and I entirely accept what the noble Lord, Lord Pannick, has said about change and development in our understanding of the institution of marriage.

Yet I cannot support the Bill and, from the post bags of those of us on these Benches, the reasons why are shared by many who do not hold the Christian faith and by the great majority of the leaders of the other world faith traditions. I want to highlight three reasons.

First, this legislation does not resolve the decades-old debate about when undeniable differences between men and women matter and when they do not. Modern political discourse tends to recognise as public goods only things that can be equally appropriated by any given individual, regardless of difference. This involves a difficulty in entertaining notions of public rights and obligations that might pertain to one sex rather than the other, or to one sexual orientation rather than another. As Professor John Milbank has written in a paper for the ResPublica think tank:

“The risk of this exclusive focus on individual rights is that the needs and capacities of people in their specific differences, which may be either naturally given or the result of cultural association, tend to be overridden. And so it is that injustice can arise in the name of justice”.

I could not help noticing in the debate in this House on International Women’s Day the underlying assumption that women bring a special quality to the public square and that the complementarity of men and women is what enriches and stabilises society. Yet, in the realm of public discourse, assertion of sexual difference in relation to marriage has become practically unspeakable, in spite of the fact that it is implicitly assumed by most people in the course of everyday life. Equal marriage will bring to an end the one major social institution that enshrines that complementarity.

Secondly, the Bill, introduced in haste, has not allowed enough time for a weighing of gains and losses to the well-being of society. Do the gains of meeting the need of many LGBT people for the dignity and equality that identifying their partnerships as marriage gives outweigh the loss entailed as society moves away from a clear understanding of marriage as a desirable setting within which children are conceived and raised? In traditional Christian societies, the price you pay for getting married is, in principle, a heavy one—sexual fidelity till death us do part and, for some, a responsibility for the socialising and educating of children. As the ResPublica paper on this subject pointed out:

“As people become more and more reluctant to pay that price, so do weddings become more and more provisional, and the distinction between the socially endorsed union and the merely private arrangement becomes less and less absolute and less and less secure”.

As sociologists regularly observe, this gain in freedom for one generation may imply a loss for the next. Regardless of the best intentions of advocates of equality, if we detach the procreation of children as being one of the core purposes of marriage, then no social institution enshrines that purpose for the generations ahead. This is not, of course, to say that those who cannot or do not wish to have children are any less married.

Thirdly, as others have said, there is a difficulty here in the use of language. Put simply, there are two competing ideas of marriage at play in this debate. The first is perhaps traditional and conjugal, and extends beyond the individuals who marry to the children they hope to create and to the society they wish to shape. The second is more privative, and is to do with a relationship abstracted from the wider concern that marriage was originally designed to speak to. As the most reverend Primate has pointed out, this category error lies at the heart of this Bill as drafted.

In deciding whether to give this Bill a Second Reading, I have to ask myself several questions. Is it clear that it will produce public goods for our society that outweigh the loss of understanding of marriage as we have known it? Has the debate in the country and in Parliament been conducted in a way that will enable our society to adapt wisely to a fundamental social change? At a time of extreme social pressure, is this innovation likely to create a more cohesive, settled and unified society? Lastly, at this stage, is it appropriate to frustrate the clear will of the Commons on this Bill?

I have concluded that the answer to all these questions must be no and therefore, if it is the unusual intention of this House to divide at Second Reading, I shall have no alternative but to abstain.

16:57
Lord Jenkin of Roding Portrait Lord Jenkin of Roding
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My Lords, I shall come back to the speech of the right reverend Prelate at the end of my remarks. Like all of us, I have had a very large amount of correspondence on this subject, much of it by e-mail. Thanks to the Whitsun Recess, I have been able to reply to a great many of these—not all, but most.

My own starting point is something that I learnt many years ago as an undergraduate faced with what was, for me, a new involvement with people who were not heterosexual. I asked my grandfather, who was an extremely wise lecturer at the Edinburgh medical school, all about it. He said, “My dear boy, it is as foolish to condemn those who have homosexual proclivities as it is to condemn them for having red hair”. I have lived with that all my life and I have always opposed discrimination against homosexuals.

In the exchanges I have had through e-mail and other communications, I have identified three clear lines of argument against the Bill. The first I can deal with very briefly. There have been references to homophobia: I am afraid that some of the messages I have received actually reek of homophobia. I was reminded of some of the arguments advanced when Parliament abolished the criminal liability for homosexual conduct between consenting adults. There were those same dreadful arguments, deeply shaming, and I am very sorry that they still exist.

The second argument is one that has been referred to several times in this debate so far. The question is: does the Bill redefine marriage? It was put to me by one correspondent that:

“The Government’s plans will redefine the marriages of the 24 million married people without their consent”.

Other people have referred to their anniversaries. Last year, my wife and I celebrated our diamond wedding, and I have to say that it has been a marriage with mutual comfort and support. Is this Bill going to redefine that marriage? I cannot see how that could possibly happen. I was grateful to my noble friend on the Front Bench for confirming that nothing in this Bill will redefine our marriage or indeed those of the other 24 million married people in this country. One has to regard that argument as really quite misconceived. As others have said, it is not irrelevant that there is a great deal more support for the Bill among young people who are facing marriage, are about to get married or hope to get married than there is among the population generally. They do not see it like that. One has only to think of the possibility of the following happening. A young man poses the question to his intended, “Will you marry me?” and she replies, “Oh no. This Bill has made it all totally different. It’s for gays and lesbians—I can’t possibly marry you”. That is pure fantasy and I do not think we should pay too much attention to it.

The other argument that I have been rather more impressed by, and which again has been mentioned, is the question of the potential liability and difficulties for people, particularly in the public service, who find themselves, in a sense, implementing the provisions of the Bill in one way or another. A number of people, including some of those who have expressed support for the Bill, have voiced these concerns to me, and that is something that this House will need to look at quite carefully. I was very much comforted by the assurance given to us by my noble friend on the Front Bench that Ministers are considering what more might be done to allay those anxieties. I regard that as very important.

Finally, I return to the right reverend Prelate the Bishop of Leicester. I hope that he will not feel it is unfair if I call him my “old friend”, as indeed he is. I have come to the firm conclusion that there is nothing to fear in gay marriage and that, indeed, it will be a positive good not just for same-gender unions but for the institution of marriage generally. The effect will be to put right at the centre of marriage the concept of a stable, loving relationship. As a practising Christian, perhaps I may make the point to the Bishops’ Benches, including to the most reverend Primate, that there is every reason why, in time, the Anglican Church should come to accept that, although I recognise that it may take some time. The character of love which marriage reflects—that it is faithful, stable, tough, unselfish and unconditional—is the same character that most Christians see in the love of God. Marriage is therefore holy, not because it is ordained by God, but because it reflects that most important central truth of our religion: the love of God for all of us.

17:03
Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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My Lords, some tend to label anyone who opposes this Bill as part of a group of homophobic bigots. Once that is said, the argument has stopped. As a Labour Peer, I wholly dismiss that—I find it insulting. I note, for example, that some key elements of the homosexual lobby, including Stonewall, have come to support same-sex marriage only in the fairly recent past. For me, there is a clear distinction between anti-discrimination, which I support, and seeking an absolute equality, which I oppose. I recall that as a young barrister I was saddened to see before the courts a trail of men whose lives and careers had been ruined by the then law. I am also glad that the legal discrimination which existed has been removed by the Civil Partnership Act. If there are deficiencies, they can be met by amendments of the Act itself to further protect same-sex couples.

Today, proponents of the Bill appear to argue on the basis of equality, but equality is not an absolute good. I am not a Roman Catholic, but saw this same false reasoning employed against Roman Catholic adoption agencies. Reasonable compromises were cast aside by zealots in the name of equality. The juggernaut rolled on. The result was that children lost out, as those caring agencies were forced to close.

In this case, the good in question is the institution of marriage, which has never yet been changed. Of course there have been changes in the law of marriage, but nothing as fundamental as this change to the institution. Marriage as traditionally defined is the union between a man and a woman. A bedrock principle, it relates to the rights of children and their need to know their identity, and is a generational bridge between the past and the future. Its fundamental position in our law is well illustrated by the number of statutes that will have to be changed if the law is now passed. The Bill seeks to make equal that which is not equal. The relationship between a man and a woman is unique. Same-sex relationships are different. Perhaps we should seek to find another name for them, if same-sex couples seek dignity. Thus there is the problem with this Bill of dealing with first, adultery, and secondly, non-consummation. In the Bill, same-sex couples are not required to take account of these criteria, but are still deemed to be married.

Some argue, as we have just heard from the noble Lord, that love between any two people is a decisive consideration: “amor vincit omnia”. However, love is not everything. The law of marriage discriminates on grounds of age and affinity: you cannot marry a parent, sibling or child, or marry someone who is already married. Why exclude these categories in the new definition? Hence, in the Netherlands, a court has endorsed a three-way cohabiting contract. In Brazil a three-way union has been allowed. Today, the borders are clear. Where, then, are the new borders as one sets out on this path? There will be increased pressures for polygamy. In short, marriage should surely not be available for everyone, even if they love one another. The state cannot lightly modify the meaning of words that have stood the test of time, as with Orwellian Newspeak.

The Government announced their proposals in March last year. There was no manifesto commitment, Green Paper or White Paper, and very inadequate consultation on the “how” and not the “whether”. There is no evidence of substantial demand, although there would be some pent-up demand at first. There is no evidence of claims that the change would strengthen the family or the institution of marriage. There is no evidence that the Government, in their haste, have examined the effects of the change in other countries. There is no evidence, either, of any serious attempt to protect conscientious objectors, teachers, social workers, registrars, foster parents, or churches which use public halls for worship.

Why the hurry? If the Government were so attached to the principle of equality, they would have changed both institutions—marriage and civil partnership—from the outset, and would not have been forced into a messy last-minute deal to ensure the passage of the Bill. This is not the way to deal with a hallowed institution that has been fundamental to civilised societies from time immemorial. A French philosopher, who was a disciple of Rousseau, once observed that our Parliament can do anything save change a man into a woman. This Government appear to think otherwise—or at least that Parliament can change traditional gender relationships.

We know that Mr Cameron likes consulting the people in referendums. Indeed, not only has he promised an “in or out” referendum on EU membership in 2017, he has enacted already for a referendum whenever there is a transfer of power to Brussels. Surely this proposed change is far more fundamental to our society than any transfer of power to Brussels. Therefore, I challenge him to call a referendum. He and his friends will put their case for yes, while many of us—Labour, Conservative and Cross-Bench—will be on the other side. Let the people decide.

17:09
Baroness Cumberlege Portrait Baroness Cumberlege
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My Lords, I refer noble Lords to my interests as set out in the Register of Lords’ Interests. Many erudite Members have already spoken in the debate and I know that many more will contribute later on today and tomorrow. They will discuss what is right and what is wrong with this Bill. I start from the premise that all people have a contribution to make to society, each in their different way. I respect them all as individuals and I respect their partnerships.

I am very fortunate in that I have never felt any discrimination in being a woman. When I started in public life nearly 50 years ago, it was actually an advantage to be a woman. When I entered your Lordships’ House, only 5% of Members were women. When I told my husband that I was one in a million, which I was, he was unimpressed. Also—perhaps I should not tell your Lordships this—when I first came here I received more Valentine cards than I ever had as a teenager. I do not ask for or want equality; I value being different. I do not want to be called a man or treated as a man because women are different. As the right reverend Prelate the Bishop of Leicester said, sometimes we bring something new to politics, to business, to discussions and to life.

As your Lordships may be aware, I have a particular interest in health and medical issues, where I have seen new specialties emerge. Initially, they were part of an existing institution or a royal college. After a while, they felt confident enough to establish and create their own specialty, as with the Royal College of General Practitioners and the anaesthetists. These royal colleges are now accepted and are respected institutions in their own right.

“Marriage” is the word that means a union of a man and a woman. Same-sex couples have a yearning for equality. Initially, they want to attach their union to an existing institution and use existing words. Marriage between a man and a woman is different from a union between two women or two men. I believe that the lesbian, gay, bisexual and transgender communities should have the confidence to establish their own institution. What they lack is the lexicology to establish and name their own institution, which will be respected and accepted. I believe that, in time, LGBT people will regret attaching their unions to heterosexual marriage. Soon they will say, “No, we are different. We want be different and we need to create our own institution”. Like a flag, a motto or a name, they need to find their own terminology, their own symbols to express their rights and their different contribution to society—acknowledgment and respect for their own institution of partnership. I urge these people to be bold, to be confident and eschew the institutions of others, to build their own and be themselves. It might be sensible to negotiate with LGBT organisations to see if a solution can be found.

I do not think there is any need to be overly influenced by what is happening in other countries. We need to look at our own situation differently. It should be for LGBT communities to kick over the traces and be innovative. They should not seek to attach themselves to the institution of marriage. Their rights are assured and their love is acknowledged. Adopting an ancient word in the belief that same-sex marriage is the same as heterosexual marriage is false; it is patently different. This false premise on which the Bill is founded undermines its rationale. We should reject this flawed Bill and have a rethink.

17:14
Lord Bishop of Oxford Portrait Lord Harries of Pentregarth
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My Lords, I understand very well the unease that many of your Lordships feel about this Bill. I was brought up in a world where homosexuality was whispered about in dark corners and any hint of its expression resulted in expulsion. Our understanding of homosexuality is undoubtedly the biggest social change of my lifetime.

My own change and understanding came about when I realised—for example, through reading the biographies of gay people—that often, from a very early age, they had found themselves predominantly attracted to members of their own sex, not just physically but as whole persons. While some people are bisexual and there is a degree of fluidity in the sexuality of others, we know that for a significant minority their sexuality is not a matter of choice but as fundamental to their identity as being male or female. That is a fact that must bring about a decisive shift in our understanding.

The question arises as to how the church and society should respond to this. Both have an interest in helping people live stable lives in committed relationships. For this reason, many of us warmly welcome civil partnerships, not just because of the legal protections that they rightly afford to those who enter into them but because they offer the opportunity for people to commit themselves to one another publicly. Personally, I take a high view of civil partnerships. The idea of a lifelong partnership is a beautiful one. I deeply regret that the Church of England has not yet found a way of publicly affirming civil partnerships in a Christian context. I wish that it had warmly welcomed them from the first and provided a liturgical service in which the couple could commit themselves to one another before God and ask for God’s blessing upon their life together. If only the church had made it clear that although these relationships might be different in some respects from the union of a man and woman, they are equally valid in the eyes of the church and, more importantly, in the eyes of God.

Sadly, too many who now say that they accept civil partnerships have done so only slowly, reluctantly and through gritted teeth. Today we are not in a situation where civil partnerships are regarded as different but equal to marriage. Rightly or wrongly, the impression is inevitably created that one form of relationship is inferior to the other, and people believe that marriage is a profounder and richer form of relationship than a civil partnership.

Most importantly, many gay and lesbian people believe this and want to enter not just into a civil partnership but a marriage: a lifelong commitment of love and fidelity, for better, for worse, for richer, for poorer, in sickness and in health. Marriage affords legal advantages that are denied to civil partnerships, such as their legal status in many countries, but that is not the main point. The point is that those who wish to enter into this most fundamental of human relationships should be able to do so legally. I am aware that this involves a significant change in our understanding of marriage, but marriage has never had a fixed character. The noble Lord, Lord Pannick, eloquently pointed out that its legal meaning has changed over the years; and no less significantly, its social meaning has changed.

For most of history, among the upper classes, marriage was primarily a way of controlling titles and wealth. Among all classes, it involved the radical subservience of women. Often it went along with a very lax attitude—by males, not females—to relationships outside marriage. Contraception was forbidden and this resulted in many children, and as often as not the wife dying young. Only in the 18th century did we get a growth in emphasis on the quality of the relationship of the couple. Now, this mutual society, help and comfort that the one ought to have with the other, in prosperity and adversity, is rightly stressed. This is equally valued by all people, whatever their sexuality.

I really do not underestimate the linguistic dissonance set up by this Bill and the consequent unease felt by many but, for those reasons that I have briefly outlined, I warmly welcome it. I believe in marriage. I believe, with the Jewish rabbi of old, that in the love of a couple there dwells the shekinah—the divine presence; or, to put it in Christian terms, that which reflects the mutual love of Christ and his church. I believe in the institution of marriage and I want it to be available to same-sex couples as well as to males and females.

Woolwich and the EU Council

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
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Statement
17:20
Lord Hill of Oareford Portrait The Chancellor of the Duchy of Lancaster (Lord Hill of Oareford)
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My Lords, with the leave of the House I will now repeat a Statement made by my right honourable friend the Prime Minister in another place. The Statement is as follows.

“With permission, Mr Speaker, I would like to make a Statement on the recent European Council and also update the House on the dreadful events in Woolwich.

The European Council was called specifically to discuss energy policy and tax evasion. We also discussed the situation in Syria, prior to the lifting of the arms embargo agreed at the Foreign Affairs Council last week.

On energy policy, we agreed to continue our efforts to complete the single market in energy so that we drive competition between suppliers and force prices down. We also put down a marker to get rid of unnecessary regulation in making the most of indigenous resources such as shale gas. Europe has three-quarters as much shale as the United States, yet while the Americans are drilling 10,000 wells a year we in Europe are drilling fewer than 100. We must extract shale in a safe and sustainable manner but we have to do more to ensure that old rules designed for different technologies do not hold us back today.

On tax, to crack down on tax evasion you need proper exchange of tax information. In Europe, this has been stalled for decades because of the selfish actions of a minority of countries. I made tackling tax evasion a headline priority for our chairmanship of the G8. This has enabled us to ramp up the pressure and make some real progress. So at the European Council we agreed that there should be a new international standard of automatic information exchange between tax authorities and proper information on who really owns and controls each and every company.

On Syria, the situation continues to deteriorate. There is a humanitarian crisis so Britain is leading the way with humanitarian support. We need diplomatic pressure to force all sides to come to the table; and in recent weeks I have held talks with Presidents Putin and Obama to help try to bring that about. But we have to be clear: unless we do more to support the opposition, the humanitarian crisis will continue, the political transition will not happen and the extremists will flourish. That is why it is right to lift the EU arms embargo on the Syrian opposition. There needs to be a clear sense that Assad cannot fight his way to victory, nor use the talks to buy more time to slaughter Syrians in their own homes and on their own streets.

I regret to say that the EU arms embargo served the extremists on both sides. It did not stop Assad massacring his people, it did not stop the Russians sending him arms and it did not stop Islamist extremists getting their hands on weapons either. It just sent a signal that for all its words, the EU had no real ability to support the responsible opposition that could be the basis of an inclusive transition. That is why the Foreign Secretary and the French Foreign Minister secured agreement to lift the arms embargo in Brussels last week.

We should also be clear about the Syrian national coalition. They have declared their support for democracy, human rights and an inclusive future for all minorities, and we—not just in Britain but across the EU—have recognised them as legitimate representatives of the Syrian people. The EU has agreed a common framework for those who, in the future, may decide to supply them with military equipment and there are clear safeguards to ensure that any such equipment would be supplied only for the protection of civilians and in accordance with international law.

This does not mean that we in the UK have made any decision to send arms, but we do now have the flexibility to respond if the situation continues to deteriorate. However, with 80,000 killed, 5 million having fled from their homes, rising extremism and major regional instability, those who argue for inaction must realise that that has its consequences too.

Let me turn to the dreadful events in Woolwich. I am sure the whole House will join me in sending our deepest condolences to the friends and family of Drummer Lee Rigby. What happened on the streets of Woolwich shocked and sickened us all. It was a despicable attack on a British soldier who stood for our country and our way of life. And it was a betrayal of Islam and of the Muslim communities who give so much to our country.

There is nothing in Islam that justifies acts of terror, and I welcome the spontaneous condemnation of this attack from mosques and Muslim community organisations right across our country. We will not be cowed by terror and terrorists who seek to divide us will only make us stronger and more united in our resolve to defeat them.

Let me update the House on the latest developments in this investigation, on the role of the Intelligence and Security Committee and on the next steps in our ongoing efforts to fight extremism in all its forms.

While the criminal investigation is ongoing, there remains a limit on what I can say. Two men, Michael Adebowale and Michael Adebolajo, have been charged with the murder of Drummer Lee Rigby. Both are appearing in court today. There have now been 10 further arrests as part of the ongoing investigation. Two women have been released without charge, and eight men have been released on bail. The police and security services will not rest until they have brought all of those responsible to justice.

I am sure the whole House will join me in paying tribute to the work of our police and security services for all they do to keep us safe from violent extremists. Already this year there have been three major counterterror trials in which 18 people were found guilty and sentenced to a total of 150 years in prison. Much more of the work of our security services necessarily goes unreported. They are Britain's silent heroes and heroines and the whole country owes them an enormous debt of gratitude.

It is important that we learn the lessons of what happened in Woolwich. This Government strengthened the Intelligence and Security Committee and gave it additional powers to investigate the activities of the intelligence agencies. I have agreed with my right honourable friend the Member for Kensington this morning that his committee will investigate how the suspects were radicalised; what we knew about them; whether any more could have been done to stop them; and the lessons we must learn. The committee hopes to conclude its work around the end of the year.

To tackle the threat of extremism we must understand its root causes. Those who carried out this callous and abhorrent crime sought to justify their actions by an extremist ideology that perverts and warps Islam to create a culture of victimhood and justify violence. We must confront this ideology in all its forms.

Since coming into government we have made sure the Prevent strategy focuses on all forms of extremism, not just violent extremism. We have closed down more websites and intervened to help many more people vulnerable to radicalisation. Since 2011 the Home Secretary has excluded more preachers of hate from this country than ever before through our Prevent work; 5,700 items of terrorist material have been taken down from the internet; and almost 1,000 more items have been blocked where they are hosted overseas. But it is clear that we need to do more.

When young men born and bred in this country are radicalised and turned into killers we have to ask some tough questions about what is happening in our country. It is as if for some young people there is a conveyor belt to radicalisation that has poisoned their minds with sick and perverted ideas. We need to dismantle this process at every stage: in schools, in colleges, in universities, in our prisons, on the internet—wherever it is taking place.

This morning I chaired the first meeting of the Government's new task force on tackling extremism and radicalisation. I want the task force to ask serious questions about whether the rules on charities are too lax and allow extremists to prosper; whether we are doing enough to disrupt groups that incite hatred, violence or criminal damage; whether we are doing enough to deal with radicalisation in our university campuses, on the internet and in our prisons; how we can work with informal education centres, such as madrassas, to prevent radicalisation; and whether we do enough to help mosques expel extremists and recruit imams who understand Britain.

We will also look at new ways to support communities as they come together and take a united stand against all forms of extremism. Just as we will not stand for those who pervert Islam to preach extremism, neither will we stand for groups like the English Defence League who try to demonise Islam and stoke up anti-Muslim hatred by bringing disorder and violence to our towns and cities.

Let us be clear: the responsibility for this horrific murder lies with those who committed it. But we should do all we can to tackle the poisonous ideology that is perverting young minds. That is not just a job for the security services and the police, it is work for us all. I commend this Statement to the House”.

17:30
Baroness Royall of Blaisdon Portrait Baroness Royall of Blaisdon
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My Lords, I am grateful to the noble Lord the Leader of the House for repeating the Statement given earlier in the other place by the Prime Minister. I welcome the Statement he has given.

I start where the Statement did, with the EU summit and the conclusions on tax avoidance. We need international agreement on transparency, transfer pricing, tax havens and other issues, so we welcome the steps forward on transparency. However, do the Government agree that we need proposals for fundamental reform of the corporate tax system to prevent profits being shifted from one country to another? Seeking international agreement is clearly the right way forward but there are measures, including measures on transparency, which could still be introduced if agreement were not reached. Will the Leader of the House confirm that Britain will act if we cannot get international consensus?

I turn next to the devastating violence in Syria, which continues unabated. I share the deep concern set out in the Statement about what is happening. The number of Syrian refugees who have fled the conflict has now reached 1.5 million, half of whom are children. As so often happens, the most vulnerable continue to pay the price for war. This is a situation where there are no good options. The question is: which is the least worst option? Despite the enormous obstacles, we believe that a comprehensive peace deal still remains Syria’s best chance of ending the two years of violence, and support American and Russian efforts to bring Syria’s warring parties around the negotiating table this month in Geneva. The peace conference is due to take place in the coming weeks but the Statement did not refer to it. I would be grateful if the Leader of the House could explain why, or perhaps give a few more details.

As the conference remains the best—indeed, at present, the only—immediate hope of limiting the violence and achieving an inclusive political settlement, its success must not be put at risk. In light of this, can the Leader of the House explain the Government’s view of the risks that lifting the EU arms embargo may pose to the prospect of any peace talks? The Government say that there are safeguards on the use of those weapons. Can the noble Lord therefore set out to the House what those safeguards are? However well motivated, is not the danger of this course of action that it will lead to further escalation, as has been illustrated by Russia’s response?

The Government are right: the international community cannot continue to stand by while innocent lives are lost. However, I am sure that the Leader of the House will agree that in the action we must take, our primary aim must be to ensure a reduction in the violence. The Government tell us that the lifting of the arms embargo has provided flexibility. Given the concern in this House and beyond, can he assure us that he will come back to this House before any decision by the British Government is made to arm the opposition in Syria?

I turn to the vile murder of Drummer Lee Rigby. I join the Leader of the House, the Prime Minister, this House and, I believe, the whole country in expressing our total revulsion at this appalling act. Lee Rigby served his country with the utmost bravery and was killed in an act of the utmost cowardice. All of our thoughts are with his family and friends, and with our troops who serve with incredible courage all around the world and have seen one of their own murdered. I join the Leader of the House and the Prime Minister in singling out for special praise members of the public, and I would include Ingrid Loyau-Kennett, who intervened so bravely to try to protect Lee Rigby. We should also praise the quiet determination of local leaders and residents in Woolwich who are not allowing their community to be consumed by division and hate.

Over the past 10 days we have seen attempts by some to use this evil crime as justification to further their own hate-filled agenda, as the Leader of the House said, attempting to ignite violence by pitting community against community. However, they will fail because the British people know that this attack did not represent the true values of any community, including Muslim communities who contribute so much to our country.

Governments must do three things after such an attack, and we will support the Government on all three. The first is to bring the perpetrators to justice. We welcome the swift court appearance of the suspects. The second is to seek to bring people together in the face of attempts to divide us. The third is to learn the lessons of this attack. We welcome the Intelligence and Security Committee investigation.

We also welcome the task force on extremism. I agree with the Government that the task force should look again at issues around radicalisation and helping communities to take a stand against extremism—issues covered in the original Prevent strategy. Can the Leader of the House confirm whether the task force will be looking into earlier intervention to prevent young people being radicalised? Will he also confirm whether the task force will heed the calls from youth workers to look more carefully at the links between violent extremism and gang-related activity—something which was raised with my party by community leaders in Woolwich last week? Specifically on legislation, and in the light of recent events, can the Leader of the House update the House on the Government’s current view on the need for legislation on communications data?

Whatever the origin, and whatever the motive of the terrorists, our response will and must be the same: the British people will never be intimidated. Across every faith, across every community, this is a country united, not divided, in abhorrence at the murder of Lee Rigby. We have seen people try to divide us with acts like this before. They have failed, and they will always fail.

17:35
Lord Hill of Oareford Portrait Lord Hill of Oareford
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My Lords, I am very grateful to the noble Baroness for her overall welcome, and I associate myself very much with many of the points that she made, particularly about the awful situation in Woolwich.

On the noble Baroness’s specific questions on the Statement and the proposals on tax, our view—and it may be hers as well—is that it is best if this is done on an international basis. We can use the G8—as my right honourable friend the Prime Minister is doing—the G20 and the OECD to drive that agenda forward. We need to take action. It is a global problem and it is best to address it in that way.

I agree very much with the noble Baroness’s comments about the overall situation in Syria. I think she said that there are no good options and that we are talking about the least bad option, and I very much take that point.

On Geneva 2, the Prime Minister and the Foreign Secretary—the Government—have always been clear that we are very much in favour of a negotiated political solution, so we welcome the fact that the Russian/American talks will be taking place. That is why my right honourable friend the Prime Minister himself has had talks with Presidents Putin and Obama to try to bring about diplomatic pressure, so that all sides will come to the table.

As for the risks of lifting the EU arms embargo, as the Statement made clear, it would be wrong to deny that there are risks with all courses of action. However, the risks of inaction are also clear to see. As the noble Baroness made clear in her comments about the numbers of those already displaced and suffering and the numbers who have been killed, the price of doing nothing is extraordinarily high.

As for the safeguards on the use of weapons, the framework agreed at the Council made it clear that any provision of arms would be only to the Syrian national coalition, and it has to be intended for the protection of civilians. There are safeguards to ensure that delivery goes to the right hands, and confirmation that existing obligations on arms exports remain in place.

As for the flexibility of the embargo, the Foreign Secretary regularly updates the House of Commons on developments. I know that he will continue to do so. Things can move fast and he needs to be able to reflect and respond to that.

On Woolwich, I associate myself with the noble Baroness’s praise for the local leaders. I agree with her about the three things she set out that we, all of us together, need to do—to bring the perpetrators to justice, to bring people together and to learn the lessons. I am grateful to her for her welcome for the new task force on extremism and, indeed, for the role that the ISC will be carrying out. She made a number of practical suggestions on points to do with earlier intervention and with violent extremism and gangs and the link between them. They are very sensible points. There is no monopoly of wisdom here and we should be open to all kinds of sensible, intelligent suggestions from people who know, and try to take those into account.

As for communications data and legislation, my right honourable friend the Prime Minister earlier this afternoon made clear that we need to have a frank debate about this issue. There is a problem—we know that 95% of serious crimes involve the use of communications data—but it needs to be addressed in a sensitive and careful way. If we can find a way of getting cross-party support to take this forward that would be desirable.

Overall, I am grateful to the noble Baroness for the support she gave for the steps that the Government have taken specifically on Woolwich, and I associate myself with the tributes that she paid to the people involved in that situation.

Earl Attlee Portrait Earl Attlee
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My Lords, perhaps I may remind the House of the benefit of short questions for my noble friend the Leader so that he can answer as many questions as possible.

17:41
Lord Campbell-Savours Portrait Lord Campbell-Savours
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My Lords, the Leader of the House referred to the Cameron/Rifkind discussions on the role of the ISC. Can we be assured that the ISC will not be prevented in any way from carrying out a full inquiry to report by December as a result of what the Leader referred to as the ongoing inquiries being carried out by the police? Can we be assured that the police inquiry will not stop the ISC inquiry from taking place?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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My Lords, following the conversation that the Prime Minister had with the right honourable Member for Kensington this morning, I know that the ISC is able to go wherever it needs to go to carry out its inquiry. The timetable of reporting by the end of the year is the one to which it is working. If there is further information I can get to amplify that, I will come back to the noble Lord. My understanding is that the terms of reference, as it were, of the ISC have been agreed and the very clear view is that it should be able to carry out its inquiry and do its work in whatever way it thinks it needs to in order to look into the matters properly so we can all see and learn the lessons.

Lord Dholakia Portrait Lord Dholakia
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My Lords, I thank the Leader for repeating the Statement. Before I ask a couple of brief questions, I want to express my sentiments and those of this side of the House, as the Prime Minister did, to the family and friends of Drummer Lee Rigby. I was delighted that the noble Baroness, Lady Warsi, from the Front Bench, was so forthright in her condemnation of what happened in Woolwich.

We fully endorse the need for transparency on tax matters and welcome the exchange of information between tax authorities internationally. Does my noble friend agree that it is time that law-abiding taxpayers are made aware of those who are involved in tax evasion? What arrangements are in hand to ensure that tax loopholes will be closed by legislation? With regard to the task force, it would be so nice to see representatives from minority ethnic communities being brought into it so that their contribution in trying to tackle the problem of radicalisation and terrorism could also be recognised.

Lord Hill of Oareford Portrait Lord Hill of Oareford
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My Lords, on the last point, I agree that it is important that we should draw on the widest possible experience and expertise in the way that my noble friend suggests. I am very grateful for his remarks and I know that he and his Benches share the feelings of the whole House about what happened in Woolwich. He is absolutely right to say what he said about that. With regard to transparency on tax matters, that is one of the main issues that my right honourable friend the Prime Minister will be pursing at the G8. He has made it one of the three legs he is pursuing in terms of the agenda at that summit meeting. My noble friend is right that we need to keep pursuing that but in a way that recognises that this is a global problem and we need to try to tackle it across the board.

Lord Lea of Crondall Portrait Lord Lea of Crondall
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My Lords, a couple of points arise. On taxation, does this not demonstrate that, far from the European Union involvement getting in the way of global agreement, as some people might argue, points (a) to (e) in the Council’s statement demonstrate that these are very good building blocks for the G8 and that the EU’s role is very helpful. On Syria, I echo the thrust of one of the questions from my noble friend Lady Royall. The country is swimming in arms—coming from this side and indeed an escalation tit-for-tat from Moscow. How is the option of sending more arms and that degree of armed support potential for the Syrian National Coalition squaring and compatible with us wishing to be seen as an honest broker at the conference in Geneva? Maybe there is a simple answer. I would be very glad to hear it.

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I am not sure I will be able to give as simple an answer as the noble Lord would like. On his first point though, he and I may be in agreement. The EU can certainly help to play a part in this, as can the G8, the G20, the OECD and all the rest. With regard to arms for Syria, I emphasise again that no decision has been taken to send arms into the conflict. As I said to the noble Baroness, Lady Royall, it is clearly the case that the Government’s desired outcome, as it must be everyone’s, is that there should be a negotiated, peaceful, diplomatic solution. Lifting the embargo, we would argue, gives the Governments of EU member states the flexibility to bring pressure to bear on Assad to realise that the negotiated route is the way forward he needs to take. I agree with the noble Lord that if it is at all possible to secure that outcome that is the one we would all prefer.

Lord Archbishop of Canterbury Portrait The Archbishop of Canterbury
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My Lords, I welcome the Statement from the Leader. Obviously we join in our sense of grief with the family of Lee Rigby. In the same way as the whole country will have been shocked and felt a loss of trust in human nature at this atrocious event, I am sure that, as the noble Baroness said, we will also be reassured and have a renewed sense of trust when we see the support that has come out from all sectors of the community for the family and also the courage of those such as Ingrid Loyau-Kennett. Does the noble Lord agree that preventing future atrocities like this in the UK requires international action to improve dialogue, especially where there is widespread violence in the name of faith, which tends to slide over into our own country, often with impunity, and also supporting those resisting attacks in the name of faith or suffering such violence themselves in places such as west Africa and elsewhere?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I very much agree that there are multiple levels and stages of this. There are people born and bred in our own country who have been radicalised and we need to do what we can to address that problem. That is the focus of the work that the task force that was set up and had its first meeting today will address. We should also seek to encourage what can be done more broadly internationally to bring pressure to bear and to debate these issues.

Lord Kilclooney Portrait Lord Kilclooney
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My Lords, religion is much more important in many parts of the world than it is in England. The message that the West is against Islam is presented to the Islamic community across the world, and this is succeeding by default. Does the Leader of the House recall that British troops rescued Muslims from a secular regime which invaded Kuwait, from Orthodox Christians in Kosovo and from attacks by Orthodox Christians on Roman Catholic Christians in Croatia? Is it not about time that Her Majesty’s Government began to say, loud and clear, that on many occasions we have come to aid and support our Muslim neighbours?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I obviously agree that Britain and other western countries have made a contribution and that it is important that that message is communicated. It needs to be done in such a way that the message will have resonance. By the same token, it is extremely important that all members of local communities, whether they are Muslims, Christians or whoever, work in the way that the noble Lord suggests. They must make it clear that the fear that some people perhaps have is not based in reality, given the behaviour of this country and the West towards Islam.

Baroness Farrington of Ribbleton Portrait Baroness Farrington of Ribbleton
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My Lords, will the Minister give an assurance that the Government, in looking at tax evasion and capital being moved around, will also look at the rights of workers, many of whom are being abused by the very companies that evade taxation and then criticise our income support projects, which are there to make up those companies’ shortfalls? Secondly, will he join me in saying that not only are extreme forms of Islamophobia unacceptable, but that parents, teachers and youth workers should listen very carefully for those children who, because of what they hear at home, or because of prejudice or for other reasons, can be heard using the phrase “You’re a Muslim” as a term of abuse? It is low-level abuse but it is a problem. I remember the head of a school in Lancashire many years ago saying, “We don’t have to deal with this because we don’t have any of those children here”. However, that low-level abuse can lead to an atmosphere of hostility. I hope that the Leader will agree with me on that.

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I certainly agree with the common-sense point that the noble Baroness makes, and I am sure that everyone would agree. On her first point, the particular Council meeting talked about tax, but I will make sure that my colleagues who deal with these things day to day have heard the noble Baroness’s remarks about employment rights and the rest of it.

Lord Carlile of Berriew Portrait Lord Carlile of Berriew
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My Lords, as part of our memorial to the late Drummer Rigby, will my noble friend assure the House that the Government remain committed to the “Prevent” strand of counterterrorism policy, and that they will ensure that it is not deprived of funding, as it has been in the past two years? Further, will he give an assurance on behalf of the whole Government that the communications data issue will be reconsidered on the merits, on the evidence and on a multipartisan basis, and on no other foundation?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I am aware of my noble friend’s strong views on the communications data point. As my right honourable friend the Prime Minister said this afternoon, we need to look at these issues extremely carefully, in a sensitive way but bearing in mind those facts of the sort to which my noble friend refers. On his first point, it is clearly the case that the “Prevent” strand of work that the Government carry out is extremely important. It has been successful in many ways. We will step up the focus of the Government’s work on addressing radicalisation, and we will obviously need to make sure that the agencies charged with that work are adequately funded.

Lord Anderson of Swansea Portrait Lord Anderson of Swansea
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My Lords, one feature that is common to the outrage in Woolwich, the attack on the French soldier at La Défense in Paris and 7/7 is not often remarked upon. The perpetrators of those acts, or at least some of them, were recent converts to Islam. Will the task force look at this phenomenon? Obviously, it needs to work closely with the responsible leaders of the Muslim community, who stand to lose the most from any increase in such racial tension as the Government, properly, try to drain the swamp. Will the Minister also look at schools, on which he is an expert, and at what is being done in some of the Saudi-financed schools and the effect on the young people there?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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The noble Lord raises two very pertinent points, both in terms of schools—madrassahs—and universities, where there are clearly issues. It is right that the task force set up will want to talk to community leaders about these things, and I am sure that it will want to look into the kind of broad issues to which the noble Lord, Lord Anderson, refers.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch
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The Statement says that the murder of Drummer Rigby was a “betrayal of Islam”, and that there is nothing in Islam which justifies acts of terror. However, since 9/11 some 107,000 people have been killed and some 174,000 injured, most of them Muslim, in many thousands of attacks, the perpetrators of which claim Islam and the Koran as their inspiration. In my Oral Question this afternoon, therefore, I asked the Government whether they would encourage a gathering of great Islamic clerics—the grand muftis and the ulema—to agree to issue a fatwa against the jihadists, to cast them out of Islam and to declare that they are no longer Muslim. I regret to say that the Minister, the noble Baroness, Lady Warsi, failed to answer that Question. Would the Leader of the House now care to do so? Surely this huge problem can be cured only from within the Muslim community.

Lord Hill of Oareford Portrait Lord Hill of Oareford
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It is clearly the case, as the noble Lord says, that the Muslim community needs to be very closely involved in everything we do to address this problem. In many of these cases, particularly in the recent case of poor Lee Rigby, it is encouraging that the Muslim community has been very clear in its condemnation of what happened. I am not sure that it is within my gift, powerful though the Leader of the House is in theory, to convene a global gathering of muftis. I find it hard enough to convene a gathering of three or four Peers in your Lordships’ House. However, I am sure that my noble friend Lady Warsi will have heard the noble Lord’s point again.

Baroness Hamwee Portrait Baroness Hamwee
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My Lords, in Northern Ireland we made progress when our Governments were prepared to talk to people who engaged in violence. In order, as the Prime Minister said, to,

“tackle the threat of extremism”,

and “understand its root causes”, should we not be prepared to have conversations with those whose actions in this country, part of the UK, we in no way condone? Talking to perpetrators does not amount to endorsing their views or their actions, but we can learn.

Lord Hill of Oareford Portrait Lord Hill of Oareford
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My right honourable friend the Prime Minister has made clear that in trying to address this issue he is keen to learn from a range of people. The Government already do that; they challenge people and can learn from that. However, I am not able to say whether we will be able to go as far as my noble friend specifically suggests.

Lord Davies of Stamford Portrait Lord Davies of Stamford
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My Lords, the noble Lord said that lifting the EU arms embargo in Syria has provided the basis for individual member states to exercise some influence as and when they decide to sell arms. However, was not the lifting of the EU embargo itself potentially a major instrument of influence on both sides in the Syrian civil war? Would it not have been more sensible to have made lifting that embargo contingent on the behaviour of both parties, for example at the forthcoming Geneva talks? Have we not thrown away a particularly valuable diplomatic instrument rather prematurely?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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As I said in reply to an earlier question, clearly the Geneva talks are extremely important and we all want them to go as well as they possibly can. The argument in favour of the step that the French, British and other member states took last week was that the decision gives them greater flexibility. They and we are not saying that we want to take this step, but it gives us greater flexibility. We hope that that will lead to the kind of pressure to which the noble Lord refers, and to a sensible outcome at the Geneva 2 talks.

Lord Selkirk of Douglas Portrait Lord Selkirk of Douglas
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Will my noble friend confirm that, with regard to the future, there is a clear distinction to be drawn between freedom of speech and incitement to commit crimes of violence that results in such crimes, and that the latter can most certainly be proceeded against?

Lord Hill of Oareford Portrait Lord Hill of Oareford
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I agree with both points that my noble friend has made. Freedom of expression is important and we are always keen to hold on to that vital principle in our country. However, by the same token, we must be able to act against people who step across the line and incite violent extremist behaviour, and that is what the Government want to do.

Marriage (Same Sex Couples) Bill

Monday 3rd June 2013

(10 years, 11 months ago)

Lords Chamber
Read Full debate Read Hansard Text
Second Reading (Continued)
18:01
Viscount Astor Portrait Viscount Astor
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My Lords, we come back to the Bill. This is a Bill that divides friends, families, political parties, different faiths and, indeed, the Church of England. The problem seems to be that there are different views on what the word marriage means and what it stands for. To many it is an adjective that describes an event—not necessarily a religious event—that takes place in a register office, on a lawn, on a beach, in a hotel or, I am told, even in a swimming pool. Sometimes it is a religious event in a church. Sometimes it is the only occasion on which the couple actually go to church. Sometimes the couple already have children or have been married before or are of different religious faiths. Thus the word marriage is used by many different people to describe many different types of event.

There are also those who believe that marriage is a sacred religious ceremony and that marriage must be between a man and a woman for the procreation of children. Therefore, we have different groups of people using the same word in different contexts. That is the fundamental issue that divides us and causes us concern today.

It is a difficult issue. Was there a huge clamour for the Bill? No, it came only from a few. Most affected seemed happy with civil partnerships. Was it sensible to introduce it as a government Bill? That will be debated, I suspect, for many months. However, we have a Bill that has gone through another place and arrived in this House, and we have to deal with it.

I understand those who have strong feelings against the Bill, but I will make one important point. I understand and sympathise with those who want to get married but feel excluded by their church. It happened to me. Some 37 years ago I went to see our local vicar to arrange my marriage. I told him that my future wife was a Roman Catholic. He said that that did not matter and that we could go ahead. Then I then told him that she had been married before and had two small children. He immediately withdrew his offer of marriage and rather reluctantly offered a service of blessing. I felt upset and excluded. The Roman Catholic Church offered my wife an annulment, and said that it would then be happy to conduct the marriage. It seemed odd to have an annulment when one already had two children. Luckily, the Church of Scotland came to our rescue and we were duly married. Now the Church of England has changed its rules so that divorcees can marry. The church has evolved. It has changed its view on this and on many other issues. We now have women priests, and perhaps one day we will have women bishops.

Where do I stand in this debate? To many the Bill is welcome. We must not forget that there are a substantial number of children living with same-sex couples who want their parents to have the full recognition of marriage and the protection that that gives the family. Then we have the contrary view. To many, this Bill is divisive and unnecessary. As a Conservative, I believe in freedom and tolerance—two aspects not always very relevant in many marriages. “Compromise” might be the term most popular in my marriage, as I always seem to be the one who is compromising.

The churches and other faiths should be able to decide whether or not they want to have same-sex marriage ceremonies in their church. It should be up to them. It should not be imposed by the state. If they do not wish to conduct the ceremony, they should not be forced to. The strong and clear clauses in the Bill provide for that protection. I have listened to those who claim that the European Court of Human Rights might overrule British law. If it does, I would be delighted, as then we could all agree to leave this outdated and flawed institution that has allowed so many dangerous terrorists to remain in this country.

Therefore, I support the Second Reading of the Bill. More importantly, it would be quite wrong and highly damaging to the reputation of the House not to allow the Bill to proceed to Committee, where all the arguments for and against can be fully debated. We are a revising Chamber. We have an absolute right to send an amended Bill back to another place—but after debate, Report and Third Reading. The noble Lord, Lord Dear, said the Bill would, “take up valuable time”. I say to the noble Lord that we have the time, and I am sorry that he has not got the time to deal with the many complex clauses and issues in the Bill.

To reject a Bill on Second Reading that has been passed by another place—however strong the opinions—would have a grave knock-on effect on the relationship between the two Houses. Rejection at Second Reading has occurred occasionally, but it is against the traditions of the House and has happened very rarely. We must give the Bill a Second Reading. If we do not, we would be seen as undemocratic and not as the guardian of democracy, which is how we are now often seen. If we did not accept the Bill, we would hasten the threatened changes to the nature and composition of the House, against which so many of us have fought for so long.

18:06
Lord Brooke of Alverthorpe Portrait Lord Brooke of Alverthorpe
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I will continue in a similar vein. Regrettably, the noble Lord, Lord Dear, is not with us. I had a number of letters from him seeking to persuade me to his view, that I should vote for what I now see as his wrecking amendment to the Bill, even though the Bill had been adopted by a very sizeable majority in the elected Chamber and, unusually, on a cross-party basis and without the normal, formal whipping taking place.

It is true that there was not any mention of this legislation in any of the parties’ manifestos, but that is not necessarily unusual. After all, as the noble Lord, Lord Dear, pointed out, we recently dealt with a major piece of legislation relating to the National Health Service and social care. There was no mention of that in anybody’s manifesto, but such a major change none the less came through to us. In many respects the changes emanating from that may have an even greater effect on society at the moment than what will emanate from the legislation before us today.

I suspect also that many of the people who may be tempted to vote with the noble Lord, Lord Dear, voted for legislation—the Care Bill—that had not been in any manifesto. I hope that they will weigh those issues up in their heads before they decide whether they move forward. Also, had the House of Lords Reform Bill come up from the Commons, even though such an attempt to move towards a more democratic Chamber had been in all the parties’ manifestos, I rather suspect that there would have been a majority of noble Lords still opposing it. Overall, we should be prepared to dismiss the argument that this is undemocratic and has not gone through the proper procedures, and move on to Committee and start to examine it.

I will be brief because such magnificent speeches have been made already from different points of view, but particularly in support of the Bill. I am generally in favour of it. I have been married for nearly 47 years—sometimes on a rollercoaster, but protected from strain on the journey together mainly because I was in a marriage. I am strongly in favour if it—and in favour of it for all, regardless of gender. I believe that there should be equal treatment before the law and, even more importantly, equal treatment before God.

On the general social good side, to which the most reverend Primate referred, research shows that marriage encourages and strengthens lifelong relationships and makes for a better society—it is particularly important for this. It is better for families and for individuals. If we accept that, surely we should do everything that we can to encourage more marriage, as the noble Baroness, Lady Kennedy of The Shaws, argued, rather than oppose this extension of marriage, and possibly create different groupings within it, which may bring difficulties.

I accept that equal marriage will change marriage to a degree. We would be misleading ourselves if we thought that everything would be precisely the same in future. It will not—it will change. But as the noble Lord, Lord Pannick, so ably demonstrated in his contribution, there have been many changes to marriage over the generations, and this is just one on the route as we move forward. Overall, it will have a positive impact on society, and it will strengthen and encourage lifelong relationships and commitments.

The noble Lord, Lord Jenkin of Roding, listed what he believed were the ingredients for a successful marriage. I boiled down the items he listed to two major ones. Love and tolerance are the essence, as I see it, of a successful marriage—to which, from my own experience, I would add faith. I was interested to hear the most reverend Primate say at the beginning that this is not a faith issue but concerns general social good. I would argue that that is not so and that the principal churches in the country are holding back in an area where they should be moving forward. I trust that in due course they will move forward to embrace the totality of the population who come under God’s guidance and leadership.

We should have faith that we can get this Bill right—and faith, too, that the changes will make for a better society in future. As I prayed with my wife this morning, I asked what Jesus Christ would do. If he was here today, which way would he vote, and would he cast the first stone?

18:13
Lord Browne of Belmont Portrait Lord Browne of Belmont
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My Lords, as I have studied the development of this Bill thus far, I have been profoundly alarmed by the violations of constitutional due process that seem to have accompanied it at every turn. I firmly believe, given the four recent precedents for this House rejecting a Bill approved in another place on a free vote—the two war crimes Bills, the sexual offence Bill and Criminal Justice (Mode of Trial) (No. 2) Bill)—which were backed by the 2006 Joint Committee on Conventions report, that it is both consistent with our role as a revising Chamber and indeed an established expression of it for us to support the Motion proposed by the noble Lord, Lord Dear, today.

In my brief contribution, I would like to focus on three particular points. First, I would like to highlight how no Member of the other place has an electoral mandate to redefine marriage. Secondly, I will consider the shameful consultation which the Government conducted on this issue. Thirdly, I will look at how the Bill so far has not received effective scrutiny.

No Member of the other place has an electoral mandate to redefine marriage. I do not doubt the sincerity of the Prime Minister and of many Members of the other place in supporting the redefinition of marriage, but the fact is that no member of the Conservative Party, Liberal Democrats or Labour Party has any mandate to introduce this change. There was no Green Paper; there was no White Paper. It was not in the Queen’s Speech; it was not in any party’s manifesto. In certain cases, if the change is minor, uncontroversial or in response to an unanticipated security crisis, it may possibly be appropriate to bring forward a legislative change without a mandate. That, patently, is not the case with the Bill before us today, which proposes changing a key social definition at the heart of our society that has been defined one way for millennia. It is quite extraordinary to me that any Government should ever dream of making such a change without a manifesto mandate, the denial of which demonstrates no regard for the electorate.

Regardless of our views on same-sex marriage, I think that we would all agree that the consultation on the introduction of same-sex marriage has been seriously deficient. Initially, the Government said that the consultation was about how to redefine marriage rather than whether or not it was actually a good idea to do so. However, the consultation did eventually include a “whether” question after an outcry from opponents of the proposals. When the Government agreed to include the whether question, the Coalition for Marriage asked whether petition signatories could be counted as submissions to the consultation, as endorsement of the petition had the effect of answering question 1 of the consultation. It was told yes, and on this basis opponents of redefinition were not advised that they needed to make a separate submission to the consultation, and on this basis many thousands did not do so.

When the Government published their response to the consultation, they said that, while of course they would have regard for the petition, they would not count it as part of the consultation, enabling them to claim a narrow majority in favour of redefining marriage. The fact that the Government thereby excluded the views of half a million people despite the assurance that had been given has been a cause of real fury, completely alienating many people from the political process. I find it remarkable that the Government thought that it was acceptable to exclude those people from the consultation, which would have found that more than 80% of submissions were opposed to the plan, if they had been included.

It is also important to highlight the fact that the Government were absolutely firm in the consultation document that same-sex weddings would not be allowed on religious premises. Those who actually managed to get a response registered to the consultation, relying in good faith on the Government’s assurances about religious premises, found that the Government’s final proposals were radically different from those on which they had consulted. Shortly before Christmas, the Government announced a major policy U-turn: same-sex ceremonies will after all be introduced in churches as well as in civil settings.

Next, we must have regard for what happened in the other place. The Government ensured that the Marriage (Same Sex Couples) Bill was committed to a Public Bill Committee, even though the serious and contentious issues involved in this Bill warranted a Committee on the Floor of the House. The Public Bill Committee was made up of 15 MPs who had voted for the legislation at Second Reading and only four who had voted against. After about 10 hours of evidence sessions, MPs went on to consider the details of the Bill for just less than 20 hours. In contrast, the Hunting Bill was considered for more than 80 hours in the Public Bill Committee. This included recommittal to a Standing Committee after one day of Report. One could go on and on about the time given to debate. At the conclusion of its Commons stages, the Marriage (Same Sex Couples) Bill had received approximately 49 hours of consideration. By contrast, the 2002-03 hunting legislation received twice as much scrutiny, being debated for 97 hours altogether. It seems clear to me that the Marriage (Same Sex Couples) Bill simply has not received the level of scrutiny in the House of Commons that is appropriate for such contentious legislation.

Finally, much more could be said about the lack of respect for constitutional due process that has accompanied this Bill on its journey so far. However, now that the Bill has reached your Lordships’ House—a Chamber that, happily, the Executive do not control to quite the same extent—there is an opportunity for things to take a different course. I firmly believe that the only failing to date was the failing to have a manifesto mandate, and it is our responsibility as a revising Chamber, in line with recent precedent and the Joint Committee on Conventions ruling, to vote no today and ask the Government to think again. Those parties committed to redefining marriage can place this commitment in their 2015 manifestos and proceed in the usual manner, if they receive the appropriate mandate.

I encourage all Members of this House to support the noble Lord, Lord Dear, not in the interest of being for or against a particular definition of marriage but in the interest of upholding and protecting constitutional due process.

18:20
Baroness Knight of Collingtree Portrait Baroness Knight of Collingtree
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My Lords, we have been told by many speakers in this debate that the Bill is all about equality. People must be treated equally and Parliament must ensure it. The first statement is reasonable; the second is not. Certainly we are all equal before the law, but a far higher authority than even anyone here has already decided that people are not equal. Some are stronger, cleverer, lazier, plainer or better-looking than others. Some people can see, while others are blind. If anyone brings a Bill to this House to change that, I will be the first in the Lobby to vote for it; but no Bill can change that.

This Bill ignores a fact well understood for centuries: marriage is not just about love. Of course, homosexuals are often very delightful, artistic and loving people. No one doubts that for one single moment. However, marriage is not just about love. It is about a man and a woman, themselves created to produce children, producing children. A man can no more bear a child than a woman can produce sperm. No law on earth can change that. This is not a homophobic view. It may be sad, it may be unequal, but it is true. This Bill is either trying to pretend that it can change men into women, or vice versa, or telling us that children do not need a father and a mother and that a secure framework for children to be brought up in is not really important any more.

There is more mischief here. A free and just country must allow its people to live according to their consciences. We may not agree with their views—that does not matter at all—but they have a right to follow them and live by them. Year by year in Britain, this right is being eroded. The Government assure us that no church and no person will be forced to act against their conscience by this Bill. Did nobody notice, in earlier debates in the other place, that the Government disallowed any amendment that would protect the right to a conscience? It was all going to be fine and dandy because nobody would be forced to do anything that they did not want to do. However, promises of this kind have been made and broken so many times that we know they are false. It is not fine and dandy. These promises cannot be alone in all the promises that have been made over all the years and proved to be false.

As long ago as 1967, nurses and doctors were told that those against terminations would not be forced to do abortions. Then what happened? They could not get a job. Only last month there were press reports of a court case brought by midwives, still fighting after nearly 50 years for the rights that they were promised and never received. Christian teachers now tell us that this Bill will force them to teach homosexuality, entirely against their conscience. Registrars will be forced to conduct same-sex marriages; in fact, several of them have been sacked already because they have said that their conscience was against doing so. That no longer seems to matter. However, to me, it matters a very great deal.

You have to close your bed and breakfast if you will not accept gay couples, although pubs can refuse to serve customers—I do not understand that. You will be sacked from your job if you wear a cross—even a teeny-weeny one. Catholic adoption agencies, as has been mentioned today, have all been closed because they no longer have the right to follow their teaching, despite earlier assurances that they would be allowed to do so. We should watch how much the law of conscience, and each person having a right to it, has been quietly, piece by piece, disappearing. This is a bad Bill, built on lies, and I shall vote against it.

18:26
Lord Craig of Radley Portrait Lord Craig of Radley
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My Lords, first, I take this opportunity to thank the very many members of the public who have taken the trouble to write to me on this topic. Clearly there is much to be said on both sides of the argument. Feelings and emotions are very strong in both directions. To those I have not been able to respond to by now, I apologise. However, their correspondence has prompted me to speak, as well as vote, even though so many of your Lordships are also down to participate.

Do I support the amendment moved by the noble Lord, Lord Dear? The degree of change envisaged in the Bill to the concepts of marriage—both contemporary and historical concepts—is far more than a mere expansion of meaning on the grounds of equality of treatment. Supportive and caring relationships between two individuals may well be as similar in same-sex as in opposite-sex unions and, of course, are to be welcomed. However, there the similarity or equality ends. Part of the traditional meaning of marriage embraces its consequences—the consequences of sexual intercourse and of procreation, to say nothing of the concepts of adultery or non-consummation. Marriage is far more than a wedding day, an exchange of vows, the honeymoon and mutual support. I know; I have been married happily for 58 years and have children and grandchildren. So I think it is a travesty of interpretation to claim that marriage under this Bill and traditional marriage are so similar as to be categorised and recorded by lexicon as the same.

What has had less emphasis in much of the discussion of this Bill is the issue of unintended consequences if it were to pass into law. Marriage rights have been abused, for example, by foreigners who seek to gain permanent right of abode in this country by contracting a sham heterosexual marriage with a resident. Is there anything in this Bill to prevent same-sex individuals from abusing these proposed new arrangements in this way, or a priest from offering his services for payment or being bribed to enable a same-sex couple to obtain a marriage, a union of convenience and thus to gain residence for both in England or Wales?

How soon might we see an individual claiming that his human rights are being denied because being married to a man does not allow him the same conjugal rights as if he were married to a woman? Therefore, he might argue, why should he not be allowed to be married both to another man and also—not alternatively—to a woman? It might not be a much greater step beyond that for individuals to argue that a threesome or foursome union would more suit their shared and mutual feelings of love and commitment. Could that, too, be called a marriage?

How much further away from the canon laws that prohibit near relatives from marriages between opposite sexes will the proposals for same-sex unions be compared and allowed to depart? Will the canon laws themselves, in turn, be challenged? Such laws do not have the same rationale in same-sex unions. Where is the equality in that? What would be the financial implications of such extensions to marriage so far as the Treasury is concerned?

Should not all of these and many more unintended consequences of this rushed and, I fear, ill conceived Bill give this House pause for thought and sound reason to discard it now? I strongly endorse the amendment of the noble Lord, Lord Dear.

18:30
Lord Black of Brentwood Portrait Lord Black of Brentwood
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My Lords, I am a passionate supporter of the Bill. I support it because I believe in the institution of marriage, which is the bedrock of society and should be open to all. I support it because I believe in the values of the family, and the Bill will, in my view, strengthen them. I support it because I am a Conservative. Respect for individual liberty is at the core of my being and this is a Bill that will add to the sum of human freedom. I support it because I am a Christian and I believe we are all equal in the eyes of God, and should be so under man’s laws. I support it because I am one of those people who I fear were rather glibly derided by the noble Lord, Lord Dear, as being part of a tiny minority and, I think, were praised by my noble friend Lady Knight as being delightful, in that I am gay. I am in a civil partnership with somebody with whom I have been together for nearly a quarter of a century. I love him very much and nothing would give me greater pride than to marry him. I hope noble Lords will forgive that personal pronouncement, but it seems to me that my experience goes to the heart of this debate.

Of course, there are strong views on both sides which I respect and the debate today has illustrated them, but by far the most important aspect of this debate are the thousands of our fellow citizens, of whom I am one, who are not yet fully equal. The Bill is about human beings, not ideology. Although some noble Lords may disagree with me when I talk about the press, I assure noble Lords that in the main I really am exactly the same as them, except that I happen to love a man. Why should I be barred from taking part in a special institution that all the rest of you can enjoy? It seems to me that that is the nub of the matter. The speech of the noble Lord, Lord Dear, contained throughout words such as “tolerate” and “toleration”. Goodness me, this is 2013. Gay people do not want to be tolerated in this society; they want to be equal in it. My noble friend Lady Cumberlege, for whom I have most enormous respect, not least for her Trojan work on osteoporosis, talks about gay people setting up different institutions. We do not want different institutions; we want the same institutions. Provided it passes, this law will accord me, for the first time in my life, complete equality and respect regardless of my sexuality for what the noble Lord, Lord Jenkin, in an incredibly powerful speech, described as the character of love that I feel able to give. I hope so much that this House, which has always valued the sanctity of the individual, will allow that to happen.

My personal experience aside, there are two strong reasons of principle why I support the Bill. First, as a Conservative, I believe in human liberty. Some words of the great liberal thinker, J S Mill, with which I concur, are deeply relevant to this debate. He stated that,

“the sole end for which mankind are warranted, individually or collectively, in interfering with the liberty of action of any of their number, is self-protection”.

The state should interfere in people’s lives only where it is preventing harm; for example, banning smoking in public places or criminalising drugs. Marriage between two men or two women who love each other does not produce social harm. It is not endangering anyone. Why should the state actively stop it? That point was echoed in a recent interview in the New York Times with the daughter of that great Conservative icon, President Reagan, who was one of my heroes. As we know, he was a social conservative to his core, but he also respected individual liberty and, according to his daughter, would have supported equal marriage. Why would he have done so? He would have done so because of his,

“distaste for government intrusion into private lives”.

Patti Davis said that he and Nancy brought up their children to understand that there was absolutely nothing wrong with the idea that,

“some men are born wanting to love another man”.

That is quite right. If we respect individuality, the structure of our legal institutions must reflect that and it does not. The Bill puts that right by removing value judgments by the state, making the law neutral and allowing all those who want to make a lifelong, loving commitment to each other to marry.

The second reason I support the Bill is because of the power of legislation to change attitudes, something we have heard a little about. When I started in politics in the late 1980s, I learnt at the feet of the noble Lord, Lord Tebbit, for whom I have the most extraordinary respect. At that time, most gay men had little choice but to hide their sexuality. Noble Lords should understand how souls destroying it can be to cover up an aspect of your life. The reason that young people can mostly live openly gay lives today is because legislation from this House and the House of Commons led opinion. The bold reforms of John Major’s Government, the repeal of Section 28 and the introduction of civil partnerships by the Labour Government were all in advance of mainstream opinion but have created a more inclusive, more liberal society by being so. This measure will have the same impact. Young gay people at school or university, battling with their consciences as well as, still too often, prejudice, will look to Parliament and see that in the eyes of the UK’s lawmakers they are treated with respect, dignity and equality. As the Prime Minister rightly put it, they will stand taller as a result of our actions. I pay tribute to his huge courage in bringing forward the Bill in the face of much prejudice and misinformation.

I conclude with this thought. The day my partner and I entered a civil partnership in 2006 was immensely special. It produced a tangible strengthening and deepening of our relationship in a way that I did not believe was possible. People sometimes ask me, “Isn’t that enough?”, and we have heard echoes of that today. Why cannot gay people be happy with what we have already been granted? My answer is that it was the experience of civil partnership which convinced me of the need to go further. If a civil ceremony can produce such a deep change in the relationship between two people, imagine what a proper marriage, morally equal in the eyes of one’s family and friends, could do. That is why I can put my hand on my heart and tell noble Lords that this measure will not undermine marriage, it will strengthen it. It will not undermine the family, it will strengthen it. I know that to be true because I have felt it. That is why I beseech noble Lords to join me tomorrow in voting to give the Bill a Second Reading.

18:37
Lord Campbell-Savours Portrait Lord Campbell-Savours
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My Lords, that is a very moving speech to follow. I have great difficulty with the Bill, over which I have anguished. However, for the constitutional reason set out by the noble Lord, Lord Fowler, I shall vote for its Second Reading and for it to go into Committee.

The truth is that I cannot get my head round two people of the same sex being in a relationship defined as a marriage, however much they love each other. I hold to a simple traditional view that the word “marriage” can apply only in heterosexual relationships. I need to make it absolutely clear that, as a Labour Peer, I have always supported equality for gay men and women. I have voted repeatedly and consistently over 30 years for the developing gay agenda. I have a whole file of letters from Stonewall and others thanking me for my support as each and every measure has been brought before Parliament. I have huge admiration for Peter Tatchell’s drive and courage, and will never forget the experience of knocking on doors in the Bermondsey by-election some 30 years ago when he was the subject of a vitriolic gay-bashing campaign run by the then Liberal Party. We have come a long way since then.

My problem is over the use of the word “marriage”. I see it as distinct from civil partnership. I have no problem with the union between two persons of the same sex being given full recognition before God and being blessed in church or wherever. I have no problem with pension-splitting, inheritance tax management or anything that seeks equality with heterosexual couples, provided that we have safeguards against abuse just as we have under current marriage arrangements. Furthermore, I do not want to test the patience of the House by repeating arguments that have already been made on the need to maintain a distinction between marriage and civil partnership.

However, I need to call in aid speeches made by two Members of the other House, both leading gay rights campaigners, during the passage of the Civil Partnership Bill in 2004. The first was by Alan Duncan MP, who stated from the Conservative Front Bench, when defining the distinction between marriage and civil partnership, that,

“the two institutions are designed on similar lines, but they are designed on parallel lines; and parallel lines, as we all know, never meet. They are separate institutions for different groups of people. Gay men and lesbians are different precisely because of who they love, so the formal recognition of that love will itself create differences”.—[Official Report, Commons, 12/10/04; col. 184.]

He went on to argue further that,

“the clear distinction between a civil … partnership and the institution of marriage will, in my view, be preserved”.—[Official Report, Commons, 12/10/04; col. 185.]

So when he was considering that Bill he recognised the validity of the distinction that I believe in.

Then we have the comments of Chris Bryant MP in the same debate, who said:

“I do not want same-sex relationships to ape marriage in any sense—several people have used the offensive phrase—because they are different. Although the two share similar elements, they do not have to be identical, so the legal provisions should be distinct”.—[Official Report, Commons, 12/10/04; col. 228.]

Later, on Report, Chris Bryant, who has led the campaign on these matters in the other House, made himself absolutely clear when he stated that,

“I believe that marriage should be only between a man and a woman”.—[Official Report, Commons, 9/11/04; col. 810.]

For some reason, he has changed his mind over the past eight years but his position then is my position now. We are arguing over the use of a word—an argument that we thought was settled in 2004 when we approved the Civil Partnership Bill. Some of us want to retain the word for heterosexual unions, maintaining the distinction. Others want to fuse the two and end the distinction. The noble Lord, Lord Filkin, was quoted by the noble Lord, Lord Waddington, earlier.

I will support the Bill going into Committee. The Bill is not a manifesto Bill but a free-vote Bill, and was carried by an overwhelming majority in the House of Commons. Two-thirds of the House of Commons voted for it, one of the biggest majorities in years. It was sent to us to be scrutinised—not blocked or destroyed. It would be a complete betrayal of our responsibilities if this unelected House, where we all sit by way of patronage, was to block a Bill carried on a free vote in the elected House of Commons on the scale that it was a month ago. Our role is to revise Bills, not kill Bills, and I appeal to the noble Lord, Lord Dear, not to push his amendment to the vote.

18:44
Lord Smith of Finsbury Portrait Lord Smith of Finsbury
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My Lords, I happen to be gay. I was made this way. It is something I share with hundreds of thousands of our fellow citizens who are worthwhile, virtuous, hard-working, responsible, loving members of society. It is also, incidentally, why I am the honorary vice-president of the Campaign for Homosexual Equality. I am also a Christian and I believe in a loving, accepting, generous God who wants to include people, not reject them. I was in a civil partnership and I know that civil partnership confers nearly all the shared rights and responsibilities that marriage does, but it is not the same. It is not equality: it does not carry the same significance or symbolism and it still labels lesbian and gay relationships as somehow just a little second-class.

The noble Lord, Lord Campbell-Savours, spoke about the speeches made by Alan Duncan and Chris Bryant when civil partnership legislation passed through the House of Commons. Yes, some people—many people—have changed their minds since then. They have done so because of two things. First, it is because society has moved and changed. The attitude from an overwhelming range of our society, especially among young people, has moved on even since eight years ago. Secondly, the success of civil partnerships themselves has demonstrated that where loving commitment can be made and recognised it is to be celebrated and welcomed by society. Some of the things that have been said in the course of public discussion by some—though certainly by no means all—opponents of this Bill have, I fear, been mistaken, misguided and, sometimes, rather hurtful. This has reinforced my view that this change is sorely needed.

I want to make three brief points. First, quite simply, this is about love, commitment and mutual respect. It is about two people wanting to commit themselves to each other and to demonstrate the strength of that commitment to the world. This is something to celebrate, surely, not to reject; to welcome and endorse, not to sideline. To vote against the Bill is, effectively, to say that two people, two members of our human family, cannot be allowed the full flowering of the expression of their love for each other. I ask those arguing against the Bill to think for just a moment about the hurtfulness of what they are doing by saying that.

Secondly, the Bill respects the rights of religious organisations and faiths to opt out, if they wish, of any endorsement of lesbian or gay marriage. I regret that some faith organisations take this view but I would not dream for a moment of imposing on them a requirement to conduct or celebrate something they genuinely believe to be contrary to their faith. However, I beseech them in turn: please do not dare, by voting down this Bill, to impose on me the impossibility of celebrating a commitment in the fullest way that society recognises. Deny yourselves the obligation by all means, but do not deny me the opportunity.

Thirdly, this Bill is, at heart, about a simple principle of equality and equal access to the recognition of love and the standing of loving relationships. I was proud to be part of the Government who brought in so many changes for the better for lesbians and gay men and eliminated so many discriminations and inequalities. Some hurdles remain, however, and this is the highest of them. Voting for the Bill will right a long-standing wrong. It will recognise the equal dignity and worth of all our lesbian and gay citizens. It will challenge the prejudice that is still all too prevalent in our society. It will say, quite simply, that love matters and equally so for everyone. I urge noble Lords to support the Bill.

18:50
Lord Cormack Portrait Lord Cormack
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My Lords, we have heard some very powerful and moving speeches this afternoon. I heard every one of them and I found this to be a rather emotionally draining debate. I greatly respect the noble Lord, Lord Smith of Finsbury, and my noble friend Lord Black of Brentwood, and nobody could have listened to their powerful pleas without being moved by them. It is therefore all the more difficult to take a different line. I find myself very much in sympathy with much of what the noble Lords, Lord Campbell-Savours and Lord Anderson, said and, above all, with much of what the most reverend Primate the Archbishop of Canterbury said.

There is a fundamental flaw in the Bill that arises from the manner of its introduction. Great social changes such as the abolition of the death penalty or the Bill of the noble Lord, Lord Steel, on abortion have generally come about as a result of public campaigns and Private Members’ Bills in another place that have attracted the support of government. This Bill has been imposed from on high and in a way that has caused a degree of grief and anguish—I say this directly to the noble Lord, Lord Smith, who also feels grief and anguish—for many of those who believe fundamentally and sincerely that marriage is a relationship between a man and a woman. That is not to denigrate or degrade in any way other human relationships.

I admit to your Lordships that I was one of the very few people who voted on Third Reading in another place against civil partnerships. I did so because I wanted them to be extended according to the so-called “sisters amendment” because I believed that any two people who were in a loving relationship, whether sexual or otherwise, should be able to have the benefits that civil partnerships brought to lesbian and gay people. I have moved since those days and completely accept that civil partnerships have proved to be a good thing. I welcome that, and no one could fail to be touched by what my noble friend Lord Black said about his civil partnership.

However, true equality in a free society is an equality that protects and asserts difference. Yes, as my noble friend Lady Knight said, we are all equal under the law—but we are different. Acts of Parliament—again I quote her—cannot enable a man to bear a child or a blind man to see. There are things that we therefore have to recognise as being different. What we have to aspire to is a society in which all, whether they are different by the colour of their skin, religious beliefs or sexual orientation, are not only equal in the eyes of the law and in the sight of God, as they are, but are not discriminated against in any way for those differences. That is the state in which I wish to see our country.

I was much taken by the powerful speech of my noble friend Lady Cumberlege, who said that you cannot, without changing marriage beyond recognition, have marriage between same-sex partners, but you surely can have an institution that is the equivalent in every sense. I take the point made by my noble friend Lord Black that civil partnerships perhaps do not quite reach that point at the moment. As a Christian who was at one stage opposed, I would welcome the blessing of a union in the church—in my church, the Anglican Church. The most reverend Primate did not go quite so far in his speech as to specifically advocate that, but its logical conclusion was that that is something to which we could and, I believe, should aspire.

If we change the institution of marriage as it is at the moment, we are not making those of the same sex who become married members of an equal institution, because they cannot be. They cannot produce children. I do not say that in any critical sense but merely as an acceptance of the fact. There is a danger that because we sympathise, as we rightly do, and because we want to see the dignity of every human being on an equal footing, we are likely to vote for something that is not in the best interests of society. As a pamphlet I received put it, this is one of the most profound pieces of social engineering ever to be put before Parliament. The changing of the definition of marriage in this way should not happen without a popular mandate. The noble Lord, Lord Anderson, talked about having a referendum on whether people want that change. There some logic in that plea. Certainly, there has not been any manifesto commitment, and although some brush that aside, it is a real point.

I shall vote with the noble Lord, Lord Dear, tomorrow—although I have some misgivings about having a vote—because of the plea that many of us received from colleagues in another place who said that there had not been adequate preparation and that the free vote was questionable. I know that for a fact from many who have spoken to me personally, who were rather anguished about it. I therefore will vote for the amendment tomorrow—with, as I say, some misgivings—and if the Bill is carried I will try and play a constructive part in improving it. The most reverend Primate said, just before he sat down and with much regret, that this was not a Bill that he could support. Nor can I.

18:57
Lord Blair of Boughton Portrait Lord Blair of Boughton
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My Lords, I begin by expressing my respect for the speakers who have taken different stances on the Bill, and particularly for those with whom I disagree. I accept that there are many valid reasons for Members of your Lordships’ House to put forward objections to the Bill, but I am positive that the tide of history is against the objections.

It is rather odd that I am speaking between the speeches of the noble Lord, Lord Cormack, and the right reverend Prelate the Bishop of Chester. Nearly 50 years ago, I sat in a room in Chester Cathedral taking my common entrance exam in order to go to Wrekin College, where the noble Lord, Lord Cormack, was a teacher. We are in a different country to that of 1965. No Member of your Lordships’ House could then have made the speeches that we have heard today about being gay. When I took that exam, abortion was illegal, capital punishment was on the statute books, homosexual acts in private were matters for criminal law, and there was no race relations legislation whatever. We are in a much better country, and the tide of history is running in only one direction.

The Bill represents a great and noble cause—what the noble Lord, Lord Fowler, described as a moral cause. I suggest that, for a non-elected House to object to the Bill in this way, particularly after the events of this last weekend, would damage the reputation of this House.

My last point relates to the quadruple lock. I received many letters—as did all noble Lords—one of which I have one in my hand. It is from a young Christian gay man and it is in ink, so I cannot imagine that he sent it to 850 people, though some other noble Lords may have had it. In it he wrote that he was unable to reconcile his Christianity with his sexuality, and the fact that the Bill was being considered at all was helping him combine those two facets.

St Paul wrote to the Galatians that in Jesus Christ there is neither male or female, gentile or Jew, slave or free. I do not think that that was a coded message that everybody was okay except gays. It was an inclusive statement. As a member of the Anglican world, I hope that one day, before I die, I will see the Anglican Church unlock that quadruple lock from the inside.

19:01
Lord Bishop of Chester Portrait The Lord Bishop of Chester
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My Lords, I associate myself closely with the previous speeches from these Benches but want to develop the discussion in a slightly different direction. I should emphasise that I am speaking in my personal capacity as a bishop and not, in any formal sense, on behalf of the wider Church of England.

I want to focus on the potential impact on the relationship between the Church of England and the state. As I listened to the noble Lord, Lord Dear, with his great list of implications for Argentina, I wanted to leap up and say, “And we have the Church of England to think about as well, on top of all that lot”. It was an issue that did not receive much attention in the debate in the other place—hardly any at all. I say at the outset that the Church of England has no right simply to maintain the status quo in our relationship with the state; nor do we necessarily wish to do so. However, the argument that there has been change, as there has been, in church-state relationships is no argument for any particular change. The weakness in the powerful speech of the noble Lord, Lord Pannick, was that all the changes in marriage that he listed were, in themselves, no argument for the particular change that we are discussing now.

The relationship between church and state has evolved and is remarkably different now from how it was in earlier ages. Often changes happen best when they happen almost naturally, in an evolutionary sort of way—that is very much how the British constitution has developed over the years. In that process, it is always important to check that the baby is not thrown out with the bathwater when a particularly striking change is being made and in this Bill, something fundamental and foundational is changing. I enjoyed the speech of the noble Lord, Lord Brooke of Alverthorpe, but I thought he underplayed somewhat the depth of the change that we are talking about.

To me, the clue is in Clause 1(3) of the Bill to which very little attention has been paid. I believe it is unprecedented in statute law. The Submission of the Clergy Act 1533 provides that the church must not promulgate canons that are contrary to what the Explanatory Notes to the present Bill call “general law”. Arguably, the 1533 Act also lays a certain obligation on the state not to pass laws which are contrary to the received canon laws of the Church of England. That is how establishment has worked, because to do so would put the Church of England in a very difficult position. That is why Clause 1(3), on marriage, exempts our canons from the scope of the Submission of the Clergy Act. In effect, it creates an amendment to the Act without quite saying so and therefore legally permits statute law and canon law on marriage to be diametrically opposed in future on the very basic point of who can be married to whom.

In the government documents there is an attempt to draw a parallel with divorce, although that hardly applies at all because the canons of the Church of England have never forbidden divorce. There has always been a legal permission to divorce under the canons of the Church of England, and so the changes that have happened in divorce law have never come into conflict with the canons—for the very good reason that it was always permitted in statute law. It is also there in the Old and the New Testament. Therefore, this clause is unprecedented in our legislative history.

This helps us to understand why people feel so strongly, although this is one of the questions that we have not really asked. Of course, the easy answer is that they are homophobic. That is an easy dismissal than can be made, and who am I to say that this is not sometimes part of it? I cannot say that. However, I think the reason why people feel so strongly lies elsewhere. There are two roots to it. One is that marriage is given for the conception, nurture and upbringing of children—that is what it is naturally there for, as other speakers have said. I accept that other family arrangements can successfully bring up children, but there is something naturally given about marriage in relation to children. Our society has broken that connection in many ways, partly through contraception, but to break it in this radical way needs some thought.

The other reason why people feel strongly is because, in the Bible, the marriage relationship is the primary metaphor for how God relates to the world. That is in the Old and New Testament, particularly in the Old, and that is why it is a view also held strongly by Jews and Muslims, for whom the Old Testament is a sacred book. The noble and right reverend Lord, Lord Harries, who is not in his place, alluded to this, but did not pick up on the obvious fact that the relationship between God and the world is not symmetrical. It is not a relationship of sameness, but of difference within a deep bond of love. That is why, in that metaphor, if you try to take away the difference between man and woman, it does not work any more. It is partly why people of faith feel so strongly about this matter. There is something about “vive la différence”, which the noble Baroness, Lady Cumberlege, touched on so brilliantly in her speech. There is something basic about it, something visceral, which people feel is being undermined and changed, and that is why they react as they do, even if they do not quite know how to articulate it.

How should we proceed? I have come to the view that a more radical reconstruction of the law on marriage would be the right way forward. I think it would meet a lot of the issues raised in the powerful speeches that have been made. We should consider going some way towards the continental version, which has a legal, contractual relationship that is the same for everyone, absolutely without question. Then we could develop different religious understandings on top of that. That may be a bridge too far: the Government thought so when they drew up this rather rushed legislation. Several Members in the other place drew attention to this as the logical outcome of what we should be doing. Much of what we have heard today would potentially be satisfied, amid our society’s many differences, if we separated the legal contract of marriage, which the state establishes as being the same for everyone, and the religious side. I fully accept that that would have implications for establishment but there are unintended consequences of this Bill, as the noble Lord, Lord Dear, said, and that is just one of them. It has not been thought out and if we commit this Bill to a Committee, we are almost saying that the Bill can be improved by tinkering: it cannot. What is wrong with it is just too basic. That is why, with the same regrets that the noble Lord, Lord Cormack, mentioned, I shall be with the noble Lord, Lord Dear, in the Division Lobby.

19:09
Lord Naseby Portrait Lord Naseby
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My Lords, I have been in Parliament for 39 years and I cannot remember an occasion when so many individuals have sent me personal letters or e-mails so strongly opposing a particular Bill.

In my brief contribution, I want to address and focus on the constitutional position. I do so from a background of five years as the 58th Chairman of Ways and Means in another place, handling an equally controversial Bill of four clauses, which took 25 days, including three or four nights, but at least on that occasion every Member had their voice—indeed, I ended up with a vote of no confidence—but thankfully it was carried with a large majority. That is what should have happened with this Bill. This is equally controversial and it should have been handled in another place on the Floor of the House so that all Members could contribute. Sadly, that route was denied them and they ended up with what I would term as a stark Chamber-type Committee, which I think is a tragedy.

Some of us are told that we should not vote on Second Reading in the upper House. I went through the whole of Erskine May but could find no reference there as to why we should not. Furthermore, we had it confirmed by the Constitution Committee here in 2006 that, where there is a free vote, we can, if we so wish, vote against Second Reading, and that is equally acceptable where there is no mandate for the Government.

I then looked as dispassionately as is possible for a parliamentarian at how much work had been done in preparing the Bill. There has been no Green Paper, no White Paper and no royal commission. Much has been done on a whim, sadly, and that is not a good start for any controversial piece of legislation. It is made even sadder by the fact that three days before the election one of the candidates for Prime Minister stated that he was “not planning” to introduce same-sex marriage.

I therefore look now at the implications of there being a Second Reading. How many of us are aware of the thousands of pieces of legislation that will have to be amended by both Houses or of the hours that will be taken up with some further primary legislation and a huge amount of secondary legislation? We all know—do we not?—in our hearts how much attention is given to secondary legislation in either the other place or here. There will not be any real debate on those parts of the legislation.

Is that fair and just to the people of this country? Personally, I do not think so, and I say that based on my parliamentary experience. We must not forget that this House is part of the bicameral Parliament and is normally there to act as a revising Chamber. However, ultimately, in my view, it is there as a safeguard to Parliament and democracy as a whole and it carries out that role for all the people of the UK. Safeguards are not met by quadruple locks. Locks can be undone by any fiendishly good legislator anywhere in the world, and there are numerous examples of that happening.

Therefore, tomorrow I shall vote against the Second Reading. I thank the noble Lord, Lord Dear, for the considered manner in which he put forward his amendment and for the clarity and courage that he showed in doing so. As I sat here this afternoon, I said a quiet, short prayer to myself: I prayed that someone somewhere was listening to the many words of wisdom that will be spoken over these two days.

19:13
Lord Young of Norwood Green Portrait Lord Young of Norwood Green
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My Lords, I support the Bill and oppose the amendment, and I congratulate the Government on having the courage to come forward with this legislation.

I listened carefully to what the noble Lord, Lord Dear, said in moving his amendment and I could not understand his justification for wishing to deny the Bill any Committee discussion. If there are problems with the Bill, surely the obvious place to sort them out is through rigorous examination in Committee.

This has been a fascinating debate with some very powerful and emotional contributions. I cannot attempt to engage in a theological debate with the right reverend Prelates—I fear that as a non-practising Jewish atheist that is probably beyond me. However, treating the matter seriously, as I do, I was interested in the idea that marriage is just one specific type of union between a man and a women and that it is for procreation, if I may paraphrase slightly. I cannot help feeling that the noble Lord, Lord Pannick, was right in saying that the nature of marriage has changed fundamentally since being an institution that discriminated abominably against women, giving them few or no rights whatever when it came to inheritance and even no rights over their children.

I cannot help but reflect that it has changed in relation to my own experience. I have enjoyed marriage so much that I have done it twice—and for the last time, I hope. On the second occasion, my wife wanted our marriage to take place in church and I wanted to respect her views. On that occasion in 1985, I met the rector and he was a very pleasant individual, but he said, “I’m really sorry but I cannot marry you in church because you have been divorced”. I now notice that that is no longer the case with the Church of England; it has changed its views. Fortunately, we now live in a very different society from the one that existed when marriage was first conceived. The way that society regards homosexual relationships has changed fundamentally, and we have heard some very powerful contributions about that. As I listened to the speech of the noble Lord, Lord Black, I doubted whether anyone in this Chamber would have been able to make such a contribution 10 years ago. Going back further in time, Oscar Wilde—a particular favourite of mine—while in jail reflected on the temerity of being forced to admit the nature of his relationship.

I have some sympathy with the right reverend Prelates and I would not want the Bill to undermine their right to determine who gets married in church. However, they seem to have great difficulty in determining some of their attitudes, whether on homosexuality or on whether a woman should be a bishop. They are still agonising over that with different wings of the church, but their attitudes will no doubt change over time. I think that we have now reached a point in our society where same-sex marriage is right and I do not believe that it will undermine the relationship of marriage. That is the bit of the argument that I do not understand, and I could not put it any better than the noble Lord, Lord Jenkin. I usually find myself in opposition to him but on this occasion—I am sorry that he is not in the Chamber—I could not have put it any better than he did.

There has also been a lot of talk about children in marriage. I need to remind people that things are changing all the time. We now have gay couples with children—something that, again, a few years ago we would not have thought of as being a likely occurrence. Therefore, I do not believe that this legislation is going to undermine the nature of marriage, although it will not be right for every person. I have a brother who is gay. He has been in a long-term relationship over a number of years and has never expressed to me any desire to change the nature of that relationship. Therefore, marriage will not be for every gay couple, but for some it will be and the question is whether we should deny them the opportunity. I do not believe that we should. There are genuine concerns and we should ensure that we have the right to take the Bill through its Committee stage to examine very carefully whether what has been referred to as the quadruple lock will cover every eventuality. The noble Lord, Lord Pannick, and my noble friend Lady Kennedy say that they have looked at that very carefully, and I tend—initially, at least—to respect their view, although there may of course be other views. Therefore, I support the Bill. I am opposed to the amendment and I look forward to Committee.

19:19
Baroness Neuberger Portrait Baroness Neuberger
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My Lords, I rise to support the Bill. I want to make three discrete points in this debate, which has had so many speakers and such high-running emotion. First, despite many views to the contrary, marriage is in fact a social construct. It was not always one man and one woman. Indeed, polygamy was widespread in the ancient world, and its reasons were many. To quote from the Hebrew bible, as we call the Old Testament, Solomon was reputed to have a thousand wives. I do not know how he managed. Many people will also know the story of Jacob and how he got the wrong wife first, with Rachel and Leah.

I also want to give a bit of history, which your Lordships may not know. There was a great rabbi, Rabbenu Gershom of Mainz, who in around 1000 CE, which we call AD, was responsible for what is known as a takkanah, a legal pronouncement which is technically valid for 1,000 years. The takkanah of his that concerns us prohibited polygamy. It applied only to Ashkenazi Jews, those in Germany, Poland and Russia and so on. The Sephardi Jews—North African, Spanish and Portuguese—continued to practise polygamy in some areas, and that continued among Yemeni Jews until the 1950s and 1960s. So for us, marriage was not always just between one man and one woman, nor was it always for the procreation of children. When Rabbenu Gershom’s takkanah ran out in around 2000, 13 years ago, you might have expected a wild rush of Ashkenazi Jewish men seeking second, third and fourth wives, but because marriage is a social construct as much as a legal one, curiously that did not happen, and we would not have wanted it to.

These days we believe in marriage between two people, not more, although serial monogamy is commonplace. Marriage has changed dramatically over the millennia and over recent centuries. Divorce, which we Jews have always accepted, has become widely accepted and no longer a disgrace; married women now have property rights, although that took its time; infertility is no longer blamed only on women—it used to be a reason for divorce in Judaism after 10 childless years; and so on. Why, then, can we not change this social construct once again, while still maintaining respect for those for whom marriage is about sacrament, but cannot accept such a change? I think it is important that we do.

Secondly, I want to say something about numbers. In my congregation at the West London Synagogue—the oldest reform synagogue in the UK—where I am senior rabbi, we have about 3,000 members. We also have around 30 gay couples, most—but not all—in civil partnerships now, waiting for the day when they can marry under the chuppah, the wedding canopy, with their parents under that canopy, witnessing them make their vows. For me and my fellow reform and liberal Jews, like the Unitarians and the Quakers, this is about parity of esteem. We see no reason why gay people should not marry as heterosexual people do. We see all human beings as made in the image of God. That means gay and straight. We also believe that human beings are created with the need to seek out and look for a helpmeet in life. That person could be of the same sex, or not. Whichever it is, they deserve the right to be able to create a life together permanently and to celebrate it in marriage.

Thirdly, as several noble Lords have said, this is about righting a wrong. It is about accepting that social conditions and attitudes change and have changed. I hope that noble Lords will accept that that is true. We have heard that no court of any kind, domestic or European, would force a religious organisation to perform such marriages against their will. But those of us in religious organisations which are in favour of equal marriage are longing for the day. I expect the first days after it becomes law, as I hope it does, to consist of marriage after marriage in my synagogue, bringing joy, equality and renewed commitment to people who, until this point, have been denied it. It needs to happen soon. It is a moral imperative to right this wrong.

19:23
Lord Garel-Jones Portrait Lord Garel-Jones
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My Lords, social change is often contentious and, indeed, even controversial. Looking back over the past century, I have been struck by how frequently matters that aroused heated passions when debated faded into consensus once those matters were approved, as I hope this measure will be. In other words, society was ready for the change. Perhaps I may give the House a few examples.

The death penalty was abolished in 1969. In the 1970s, it was a question that lingered on in the Conservative Party—indeed, Conservative Party selection committees generally asked a question about it. One of my former colleagues in another place even offered his services as hangman. The Sexual Offences Act 1967 caused enormous controversy at the time. Even as recently as the Equality Act, some church leaders argued for exemptions that would have allowed homosexuals to be turned away from soup kitchens and hospices.

The 1928 equal franchise Act gave women equal voting rights with men. At this distance it is a little odd to look back at some of the arguments advanced at the time, in all seriousness, against that measure. I give the House but two examples:

“women have a vast indirect influence through their menfolk”;

and:

“Woman Suffrage tends to establish competitive relations which will destroy chivalrous considerations”.

I trust that many noble Baronesses still experience chivalrous consideration from your Lordships but would venture to suggest that this can hardly be put forward as an argument for repeal of the equal franchise Act. Indeed, I know of no serious organisation today which advocates withdrawing the vote from women, making sexual relationships between people of the same sex a criminal offence or, indeed, restoring the death penalty.

I accept, of course, the sincerity with which some Christian organisations oppose this measure. It is right that the Bill should not oblige any church to carry out same-sex marriages. However, as we have just heard from the noble Baroness, there is not complete agreement on this matter among religious groups. Quakers, liberal Jews and Unitarians support the measure, and my noble friend Lord Deben, in a characteristically thoughtful article in the Tablet, reminded his fellow Roman Catholics that for over a century it has been accepted that the state has had a role in marriage and that it could and would make its own secular rules for its citizens.

The Bill has been a useful vehicle for opening a discussion on humanist marriage. An amendment on the matter was introduced in another place but was withdrawn as the Attorney-General advised that, as drafted, it was incompatible with the Human Rights Act. I understand that subsequent discussions have ensued with the British Humanist Association, and other issues relating, for example, to the definition of premises need to be resolved. I suspect that it would probably add to the challenges before us on this Bill to attempt to address those issues now. However, I hope that the Minister will assure the House that the dialogue with the British humanists will continue in the hope that this too may be addressed at some point in the future.

Finally, some quarters have criticised the Prime Minister for his personal support of this measure. They say that it is being raised at a time when the country faces huge challenges. Frankly, I find it rather refreshing that a Prime Minister beset, as Prime Ministers are wont to be, by the great political issues of the day is willing to stand up personally and be counted on a moral issue in which he believes and where there is no obvious political payoff.

I rejoice in the fact that this measure enjoys the support of all three party leaders. I confidently expect that, if it is approved, today’s controversy will rapidly become tomorrow’s consensus.

19:28
Baroness Richardson of Calow Portrait Baroness Richardson of Calow
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My Lords, as speaker 31 of 94 I am already beginning to feel that most points have been made; forgive me if I repeat some of them. I am a Methodist minister, and I have the privilege of leading many couples through their vows and in a great celebration, in a liturgical way, in church. I believe in marriage. I believe that marriage is the bedrock of our society and brings stability to our communities. I believe that marriage is the best place where children can be nurtured. It is for those reasons that I support this Bill.

Like all of us, I have had many letters and e-mails on the Bill. Some have suggested that of course I will agree to support traditional marriage based on biblical principles. To one of them I am afraid I replied that I hoped he would start at the beginning of the Bible at Genesis and try to find one man and one woman in a committed relationship that had been freely chosen. He would have had an awfully long read.

There has always been the suggestion that biblical principles have been used on occasion to support the subjugation of women and the primacy of men. These are things that we have had to contend with. When the Christian church began to look at its societies and move beyond Jerusalem, it had to come to terms with the fact that it was moving into different cultures. There was always the question of whether to challenge the culture or whether to adapt the faith you have received in order to cope with the culture into which you have moved.

Today, as many have said, we are moving into a different culture and we cannot rely on the old ways, simply saying that we will remain faithful to what we once knew. Equality and freedom, life expectancy, control of reproduction and a deeper understanding of sexual orientation have all affected our understanding of what marriage truly is, as have the negative principles of marital breakdown and broken relationships.

Although I would like to do so, I cannot speak on behalf of the Methodist church because it is still considering what its response will be if the Bill becomes law. However, the Methodist church has always based its moral and ethical values on the fourfold foundation of scripture, tradition, reason and experience. Twenty years ago, the Methodist church committed itself to listening attentively to the experience of those for whom a committed heterosexual relationship would not be possible. I think that we must listen attentively to the experience of today, listen to those for whom a lifelong, loving, faithful, joyful and sacrificial relationship can be achieved only in a same-sex partnership. We also have to listen to the responses that some of us have received from those who bear witness, from childcare and adoption agencies, to the value of same-sex partnerships in the bringing up of children and the overwhelmingly positive signs of good relationships.

We have to listen to the experiences of people and bring to bear our scriptural understanding to the experience which is equally valid under God. The depth and quality of relationships that have already been achieved in civil partnerships shows us that they are almost indistinguishable from the relationships experienced in heterosexual marriage. We have to bear witness to that. But we ask: why is it necessary to change if this is already provided for in our society? The one thing that is often missing is a deep acceptance that these relationships are equally valid and fruitful, and that they, too, form the bedrock of our society. They help to build up our communities. That is often missing. If it cannot be called marriage, it is seen to be a second-class relationship; we must address that. I also believe that if this is addressed in society, it may be the encouragement that the churches need in order to move into a different relationship. I long for and look forward to the time when these relationships can be celebrated within our liturgies and in our church life. I hope profoundly that it will become a reality in my lifetime. For all these reasons, I hope that the Bill progresses to further discussion and that it is passed.

19:34
Lord Edmiston Portrait Lord Edmiston
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My Lords, I share many of the concerns of the noble Lord, Lord Dear, although I have to confess that I have spent many a sleepless night agonising over this subject: what is the right position to take? I, too, am a committed Christian and so I have looked for inspiration as to what marriage really is. The earliest reference I can find is in Genesis, chapter 2, which is often used in wedding ceremonies today:

“Therefore shall a man leave his father and his mother, and shall cleave unto his wife: and they shall be one flesh”.

One flesh involves a physical and spiritual union: the joining together of the reproductive organs of a man and a woman; the potential for creating new flesh in the form of a child. Non-consummation annuls a marriage and therefore marriage is, and can only be, between a man and a woman. Marriage in the Jewish tradition was considered to be a blood covenant. They used to keep the bed sheets as proof that the covenant had been satisfied. It is a physical impossibility in a same-sex relationship for the reproductive organs to be joined together, and therefore whatever we seek to call it, it cannot be a marriage in the traditional sense. In fact, it changes the nature and meaning of marriage.

The concept of marriage was not really established by the state; it existed well before our parliamentary democracy and is an internationally recognised institution that crosses borders, religions and millennia. I do not think that we should seek to change it. If this Bill were to pass, in due course we would end up having to create a new vocabulary for words like “father”, “mother”, “husband” and “wife”. This has already been flagged in other countries.

The proposed criterion for marriage is that two people love each other. The word “love” does not appear in the official words that are used in the wedding ceremony. If we accept that love is the sole criterion, then why cannot three people love each other? In fact, some countries already accept polygamy. This question has been asked in Canada, while in the Netherlands and Brazil judges have legalised what they call a polyamorous relationship, a cohabitation agreement with multiple sexual partners.

The reason marriage is limited to one man and one woman is that it takes no more and no less to produce children. If we were to accept that love is the precondition for marriage, why should we restrict it? If there is no possibility of genetic offspring or indeed no requirement for consummation, why should not close relatives get married? If that were to happen, I can see all sorts of interesting possibilities for inheritance tax planning. We would open a Pandora’s Box. I do not believe we have looked closely enough at the unintended consequences.

Despite all the assurances that religious bodies have been given, the European courts can eventually overturn them. I am unconvinced by some of the assurances about the locks that are to be put in place. In any event, a new Government could always remove them. Equalities legislation has already seen many Christians in court, and this legislation will see many more. This Bill will also jeopardise employment and possibly criminalise those with traditional views of marriage. We have already seen cases where individuals have lost their jobs over their beliefs. There must be room for conscience. Otherwise this purported equality for the few comes at the expense of freedom of belief for the many with strongly held convictions.

The Bill purports to address a remaining apparent inequality, but it creates many other inequalities for both sexes and for homosexual couples. Couples of the same sex will have the option of civil partnership or marriage, while at the moment heterosexuals can have only marriage. I know that the Government have announced a consultation on this, despite initially blocking it because of the £4 billion price tag. Will the granting of civil partnerships to heterosexual couples strengthen marriage? I suspect that it will not. Same sex will have no definition of “consummation”. Heterosexuals do. Same sex will have no definition of “adultery”. Heterosexuals do. Same sex will not be allowed to marry in Northern Ireland. Heterosexuals can. Same sex couples will have limited countries in which they will be accepted and you cannot conduct marriages in those countries without their permission. Same sex couples cannot get married in the Church of England, but heterosexuals can. Instead of equality we will have created a whole raft of inequalities.

If this Bill is passed we will have changed the meaning of marriage to some fuzzy institution without any clear definition and in the process weakened it. It does not have public support. I am not convinced by some of the surveys that have taken place. We have all seen our mail boxes and the number of people who have written to us opposing the Bill. The public consultation took account of 100,000 comments of dubious origin and ignored 650,000 from uniquely identified individuals within the UK. We have seen that 500 imams wrote letters to the Daily Telegraph, and a group of Asian and black church leaders, representing more than 1 million people, have also written. All these comments have been ignored.

The committee in the House of Commons was skewed 70% in favour of the Bill and no amendments were accepted. Amendments made on Report did not address the concerns of the opponents of the Bill, in particular in the area of conscience and employment.

This Bill fails because it weakens marriage and creates a new institution, albeit with the same name. It will limit freedom of speech and room for conscience. It will eventually redefine roles within a family. It will have unwelcome consequences for all faiths and damaging ones for employment. It also creates new inequalities. It was not in the party manifesto and was expressly ruled out by the Prime Minister at the time of the election. The public consultation was a sham and for a change of this importance insufficient time has been given to consider public opinion and the potential consequences. We can reverse most laws that we pass in this place. This one we cannot reverse. Therefore we should take time to consider our approach carefully.

19:42
Lord McAvoy Portrait Lord McAvoy
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My Lords, I come to this debate with a traditional, basic approach that marriage is between a man and a woman. I am also informed by my life experience of having witnessed over the years the treatment of homosexual people in society, with adult men in jail, persecution, and all sorts of real bigotry—not just verbal bigotry and hurtful language—against such people. This really was persecution. Recently, I met a young gay Catholic man who was in turmoil about his sexuality, but he still opposed what is wrongly called “equal marriage”; it is same-sex marriage. Hurtful language is a two-way street. To be called a homophobic bigot because you take a traditional point of view is also wrong.

When I was in an elected House and despite not having the luxury of being in an unelected one, I voted for an equal age of consent for young men of 16; and I voted for civil partnerships, again on a free vote. It was my decision and my point of view. This was in the elected House. Perhaps it is not free and easy now, but there has been a big change in society and I welcome that change. I have always supported initiatives to make sure that all people get equality under the law. I maintain strongly that my record of voting for that while I was in the other House indicates that I do not have to defend myself too much.

The Government are responsible for rushing this Bill. As the noble Lord, Lord Cormack, mentioned, it is not on the back of a great a wave of support for changing the agreed definition of marriage. Surely, cultural and social change in this country comes about when the mass of the public takes the point of view that it is time for change. Over a number of years the public has shown that it is time for a change in the way in which society regards homosexual people. They have been treated disgracefully for centuries and it is time that it stopped.

A number of people—more than I would have thought—have said to me that they support the principle of same-sex marriage. I also accept that there is an element of generation in this as well. It seems that younger people are the more open they are to same-sex marriage. I like to think that the moves taken by the Labour Government, supported by many Conservatives, changed society so that it is now acceptable. Peter Tatchell has been mentioned. We are a long way from the Bermondsey by-election, but I will not take lectures from small-l liberals or even large-L Liberals, even if I have a traditional point of view. I also took part in the pressure to get rid of Section 28.

These moves reflect a society that was ready for change, wanted it and had tacit support for it. Frankly, I do not broadly find that tacit support in the society that I mix in. That is where the Government bear a responsibility. They have created divisions. They have exacerbated the feelings of those who feel that this has been forced on them as a way of exorcising Section 28 from Conservative Party history. The comments and pledges made by the Prime Minister have been mentioned. My main support for society is still there.

I will not vote for the Second Reading of the Bill. I will not vote for the amendment either, because that challenges the revising nature of the House of Lords and will put at risk the future basis for us, as a House, to intervene in, revise and improve legislation. I do not believe that the protections promised to the religious organisations are valid, because I see words like “inconceivable” and “almost impossible”. No one from the Government will give the absolute guarantee that the Roman Catholic Church, for instance, will not be prosecuted—that someone will not take a case to the European Court and win it. Where is the guarantee? During the passage of this Bill, if it gets approved and goes into Committee, we will look for amendments—not wishy-washy words, but a definite guarantee that churches will not be forced to take part in this and will not be subject to prosecution.

19:48
Lord Berkeley of Knighton Portrait Lord Berkeley of Knighton
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My Lords, I have been moved and very humbled by the intensity of the letters that I have received on this subject, on both sides of the debate. I have huge respect for the conflicting and deeply felt views. I have enjoyed some excellent speeches today. The contributions of those such as the noble Lord, Lord Fowler, are the best possible response to alleged mistakes by some Members of this Chamber, and to our critics.

I have also been surprised. Two of my closest friends, who are gay, are very uncomfortable with the idea of marriage. Many more, though, feel deeply insulted that they cannot share in the full rights of partnership that are accorded to heterosexual couples, and that they are somehow treated as second-class citizens. Equally, it makes little sense that a man and a woman cannot enter into a civil partnership, but that argument should not derail the express train that is currently racing through Parliament—and sometimes we all look forward to the arrival of an express train.

In my recent maiden speech, I mentioned the centenary of my godfather, Benjamin Britten, Lord Britten of Aldeburgh. When I think of his wonderful relationship with the tenor Peter Pears and, if I may put it like this, the musical children that resulted from it—works such as “Peter Grimes”, “Billy Budd” and the “Serenade”—I cannot but recall that theirs was for many years an illegal, criminal relationship, if in every other conceivable way a marvellous and inspiring marriage. Mercifully, times have changed.

In the other place, we heard dire warnings that this is only the beginning of homosexual aspiration. To many loving couples it is the beginning of the end—the beginning of the end of an inequality that they feel does not accord their love the same profound dignity as is given to men and women. Since many men and women who get married have no intention of creating children, to see marriage as instituted purely for procreation, wonderful though that is, is to take a somewhat narrow and blinkered view of where we now are in our society. This House, and indeed Parliament, must now be visionary. In 50 years’ time, probably much less, I suspect that we will look back and see gay marriage as having been as inevitable as the abolition of slavery, the emancipation of women and the decriminalising of homosexual acts between consenting adults.

Among your Lordships, I would probably be among the last to have a direct line to the thinking of the Almighty, but I imagine that the love of human beings for each other would shine out radiantly as a presiding desire—transcending, and regardless of, gender or the semantics and legalese of how those attachments are formulated in contract. Finally, having admitted that I do not have a hotline to the Almighty, I now feel slightly more that I resemble a parrot because this has been said many times before. However, I must end with it. The vote in the other place was a free vote and that means, if I understand it correctly, that it has a democratic mandate that this House normally feels it must bow before. For that reason, and the others I have mentioned, I will very happily support the Bill.

19:53
Lord Dobbs Portrait Lord Dobbs
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My Lords, this is a fine debate and worthy of this House. It is a pleasure to follow the noble Lord, Lord Berkeley, and to have listened to so many fine speeches. Like so many others, my postbag has overflowed. Most of the letters on paper are against the Bill, while the vast majority of those sent by e-mail and Twitter are in favour. So there we have it: an older generation versus the new.

The “anti” mail is clearly organised, but there is no harm in that. It does not make the views expressed any less relevant. Putting aside those letters that are clearly homophobic and written with green ink in the margin, the overriding message is the appeal to support “the traditional approach to marriage”. As a Conservative, I am rather fond of tradition but I must admit that I am at a loss to understand precisely what is meant by “traditional marriage”. How traditional do you want? As traditional, perhaps, as that well known fan of marriage, Henry VIII; or as traditional as the approach that once decreed that marriage had to be for life, no matter the outrages involved; or the more recent traditional approach that denied a divorced person the privilege of remarrying in a church. There is no traditional approach to marriage. It is an institution that has always changed over time and does not stand frozen in a single moment of morality. It moves; it adapts.

I would not have introduced this Bill at this time. There has been no great public outcry for it, not after the successful introduction of civil partnerships. It seems to me that the differences between a civil partnership and a marriage are so fine as to be almost transparent and cast no great shadow. Yet the Bill is here—the pebble in the shoe—and it has to be dealt with before we can move on. I know that it was not in any manifesto or in the Queen’s Speech, which was perhaps a pity, but this issue must be dealt with on its merits and not judged by how it got here.

What should I, as a Conservative, feel about gay marriage? I do not believe in equality—I leave that rather charming nostrum to our friends on the Labour Benches—but in equal opportunity. That is getting closer to it. At the heart of this matter is that we are all born unique and different, while at the heart of my conservatism is that no one should be discriminated against because of how they were born. I do not know any man or woman who has found it easy being born gay. I have not met a single one who would have actively chosen that route, with all its discrimination and denigration, and with the embarrassments, injustices and outright hatreds that were and still are put in the way. However, we are what we are—what we have been born—and I will not look a gay man or woman in the eye and say, “You are inferior just because you were born different to me”, any more than I would do that to someone who was black or brown, or a woman or blind. We are surely way beyond that, so despite the fact that I believe that this Bill needs more work I will be supporting its principle and doing so as a Conservative.

This brings me to my final point, on the amendment of the noble Lord, Lord Dear. I have sincere personal regard for the noble Lord but on this issue I differ with him completely. It would do great damage to this place and to the legitimacy of this House if we were to destroy a Bill that has been given such an overwhelming majority on a free vote in the House of Commons. It would make this unelected House look out of touch, irrelevant and obsolete. It would bring back from the dead all those silly and shallow things that the Deputy Prime Minister keeps muttering about us. Our duty in this House is to revise, not to ruin, and to improve rather than oppose to the point of destruction. We have fought so hard in recent months to secure the future of this House and for that reason, above all others, it would be folly to accept his amendment.

19:58
Lord Singh of Wimbledon Portrait Lord Singh of Wimbledon
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My Lords, concern for social justice and human rights are basic to Sikh teaching, and I was delighted when the homosexual community was given full protection and dignity under the law through civil partnerships. It is, however, important to remember that social equality and respect for difference is quite different from the pursuit of uniformity and sameness and the deliberate masking of difference by changing the accepted meaning of language—in this case, the accepted meaning of marriage. In this, I share the concerns of the noble Lord, Lord Campbell-Savours.

The one fact of life is that we are all different. We all differ in our physical and mental attributes, and in our dislikes and preferences. Most people form opposite-sex partnerships, giving birth to children and nurturing them in the family unit. This type of relationship, defined by the parameters of declared commitment, consummation of the relationship and social commitment for the nurture and care of the family, has long been defined as marriage. Difference should be respected. While same-sex partnerships are primarily for adult companionship, they do not share the same social responsibilities and parameters that define “marriage” in so many different religions and cultures. What I fail to understand is the pretence that marriage, with its clearly defined parameters and attached responsibilities, is the same as same-sex adult companionship when everyone outside Westminster knows there is a world of difference.

There is no evidence of majority support for this measure, even in the gay community. In an article in the Daily Mail, the well known columnist Andrew Pierce writes that he is a gay man who opposes gay marriage. Alan Duncan, the International Development Minister, who is in a civil partnership, is implacably opposed to gay marriage. David Starkey, the openly gay historian, is also opposed to the concept of gay marriage. The Labour MP Ben Bradshaw, who was the first Cabinet Minister to enter into a civil partnership, has openly criticised the idea of gay marriage, saying that the move to smash centuries of church teaching is “pure politics” and not wanted by the gay community, which has already won equality through civil partnerships.

There is no end of statistics which show that children’s life chances are linked to stable relationships to natural parents. If marriage is diluted to become no more than adult companionship, this will simply add to a growing focus on adult happiness to the inevitable neglect of our children, with more and more being taken into what we call care. If a committed relationship is all-important, where is the logic in not extending this to bigamous relationships? After all, there are more Muslims in this country than gays. Why discriminate against this particular religious community? Blind pursuit of unthinking equality can have unforeseen consequences. In mathematics, if you want to see where an equation is heading, you tend to take it towards infinity—look further down the line. Here we desperately need to look further down the line.

Much has been made of the so-called consultation process. Along with other members of the Inter Faith Network, I was invited to a consultation meeting and told that government policy would not be affected by our views. We are back to the world of Alice in Wonderland: sentence first, verdict after. The 87% majority against the measure has not only been ignored but turned round to claim a 57% vote in favour of the measure.

Government assurances that their lawyers see little likelihood of European human rights legislation being used to force people to act against their consciences inspire little confidence when we remember that the same lawyers said that there would be no problem deporting a certain Muslim cleric. It is in reality a measure that could well force many with sincerely held religious and ethical beliefs to either compromise those beliefs or lose their jobs. This has already happened to people like Adrian Smith, who was demoted and had his pay cut by 40% for saying—on his personal Facebook, in his own time—that gay marriages in churches would be an equality too far.

This is an ill thought-through measure that seeks to destroy a basic fundamental institution of society without any understanding or consideration of the consequences. It is a measure that has not been consulted on with the public at all and it has no mandate. For these reasons, I fully support the amendment of the noble Lord, Lord Dear.

20:04
Marquess of Lothian Portrait The Marquess of Lothian
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My Lords, it is a pleasure to follow the noble Lord, Lord Singh. I totally endorse his conclusion and I will come to the reasons for that. As the 38th speaker, it is very difficult to make a constructive speech one way or the other on this issue, because all the arguments have been made not just once but many times.

What I would like to do, therefore, as briefly as I can, is to share one or two thoughts and concerns with your Lordships. Unlike my noble friends Lord Black— whose speech moved me—and Lord Dobbs, who said that they were voting the way they were because they were Conservatives, I oppose this Bill not despite being a Conservative but because I am a Conservative. There are thousands of Conservatives around the country who take precisely that view.

I am a Conservative who came into politics initially at the time of Harold Macmillan. Harold Macmillan believed that the duty of a Conservative was to conserve and protect that which was good and to replace and mend only that which had had its day or was broken. This Bill defies that principle. It is profoundly un-Conservative. Marriage is not broken. I have not heard anybody today suggest that it is. It is good and we should be seeking to conserve and protect it. Instead, this Bill seeks fundamentally to alter it.

Undeniably, throughout history marriage has changed. The noble Lord, Lord Pannick, set out a whole row of ways in which the process of marriage has altered over the past 200 years. I can add to that. I am a Scottish lawyer. When I was called to the Bar in Scotland you could get married across an anvil at Gretna Green. You could also get married to what was known as your bidie-in, your long-term partner; if you had been living with them long enough you could go to the law and say, “Can you please now pronounce us man and wife?”. That was all that had to be done. Those are gone now. The form of marriage has altered.

However, one fundamental thing has never altered: marriage is between a man and a woman. Even when we heard talk about polygamous marriages, the sexual relations within those marriages were between a man and woman. That is what is fundamentally being destroyed in this Bill. It seeks within our law profoundly to alter the meaning of marriage.

Let me make one thing aggressively clear. I am not in any way anti-gay. Nobody who knows me would ever accuse me of being so. I have attended wonderful celebrations of civil partnerships where same-sex couples who are my friends have expressed their love and commitment to each other and I have rejoiced in being able to rejoice with them. This Bill is not about being pro- or anti- gay. That is a dishonest argument by those who make it, and does them absolutely no credit.

Rather—and this is my main concern—this Bill is highly offensive to many decent, tolerant and moderate Christians and to many decent, tolerant and moderate Muslims, and indeed to many others, including people of no religion at all, who see it understandably as an attack on something they hold very special and very dear and which has been held so for many years before them. They are angered by the fact that they were not consulted about this. They were not asked about it before the previous election. The consultations that have taken place have not even asked them whether they agreed with it; they were asked only whether they agreed with the way it was going to be taken forward. They quite rightly feel they have been excluded from something which matters desperately to them—not because they are bigoted or swivel-eyed, but because they are part of a culture, as am I, that believes that marriage is between a man and a woman.

This Bill does not create the much vaunted equality in marriage. It establishes two different sorts of marriage: statutory gay marriage on the one hand and what I believe will become known as real or traditional marriage on the other. When I talk about real marriage, I am talking about the marriage that people instinctively believe is between a man and a woman. Of course, Parliament is sovereign. Within its own jurisdiction it can change the legal definition of marriage. I have to accept that. This Bill may well do so. But for all its sovereignty, what Parliament cannot do is change the fundamental meaning of marriage any more than King Canute, for all his sovereignty, could order and change the running of the tide—and that indeed was the point he was trying to make when he placed his chair in the sea as the tide came in.

As a result, this un-thought-out Bill, which has not tested its own principles of equality and has not looked at all the anomalies it is creating, is going to divide our society rather than unite it; far from equalising, it is going to create discriminations. We will come on to some of those when we get to Committee. Some of those discriminations are very real indeed. Far from achieving understanding, it is already creating confusion. Far from building harmony, it will create disharmony, anger and long-lasting hurt. For that reason I will be voting for the amendment tomorrow.

Lord Martin of Springburn Portrait Lord Martin of Springburn
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I share a great many views that the noble Marquess has expressed. However, he and I came from the House of Commons. Does he not feel that when the other House passes legislation, it is perhaps wrong for us to reject it at Second Reading, and that we should go into Committee and discuss how the matter can be looked at?

Marquess of Lothian Portrait The Marquess of Lothian
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I understand where the noble Lord is coming from. I say to him that, in looking at the Bill, I personally do not think that the arguments that I have made today can be cured in Committee. If they are going to be cured, we will have to start again with a new Bill, from the beginning, and get it right. For that reason, very unusually, I will be voting with the noble Lord, Lord Dear, tomorrow.

20:10
Baroness Morgan of Ely Portrait Baroness Morgan of Ely
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My Lords, I was anxious to participate in this debate. I will start by telling your Lordships what marriage means to me. I was married more than 17 years ago in the beautiful cathedral of St Davids in Pembrokeshire. I am a committed Christian, an active member of the Church in Wales and the daughter of a much-loved priest who worked his whole life in a deprived parish called Ely in Cardiff. When I married my GP husband, I did not have the slightest inkling that, to my astonishment and delight, I would become the wife of a clergyman; my husband will be ordained into the Church in Wales in just a few weeks’ time.

Since then, we have brought two children into the world to respect the faith in which I am immersed. My marriage and family are the most important things in my life, and if they are under threat I will do all I can to protect them. Like all parents, we want the very best for our children. We want them to enjoy every possible happiness and hope that one day they will meet their life partner and get married.

When we were married, the words of the service began like this:

“God calls men and women to the married state so that their love may be made holy in lifelong union; that they may bring up their children to grow in grace and learn to love him; and that they may honour, help and comfort one another both in prosperity and in adversity”.

We believe that this sacred contract offers the best outcomes for our children and the best place for them to raise their families, and I believe that marriage is the best place for them to do this. I want this for my children, whether they are gay or straight. In speaking for equal marriage, then, let me be clear. I believe equal marriage is in the best interests of my family and of marriage in general. I believe equal marriage is in the best interests of my faith. I believe that equal marriage is in the best interests of my children and everyone else’s children.

Some have said that allowing same-sex couples to marry will threaten the institution of marriage and rock the foundations of our society, but I suggest that the opposite is the case. We risk making marriage into a stone idol, rather than a living, life-enhancing experience, by denying it to same-sex couples. With a few exceptions, I have been deeply disappointed by the contributions to the debate from the leaders of my faith. They seem to dwell on the concept of the institution of marriage. Institutions are often dark, dull, dusty places and none can survive without being revisited and refreshed; maybe your Lordships’ House is an example of that.

I look back at the words of the preface to the Welsh marriage service, where it says:

“God calls men and women to the married state”.

Marriage is a vocation, a response to a divine call rather than a set of dusty, ancient rules. For those who celebrate their Christian faith, marriage is far more than a legal contract. Marriage is a response to God’s call to love, and I see no reason why that should be limited to being between women and men. I believe the preface of the Welsh marriage service teaches correctly. God calls men and women to the married state, and that call, if it is between two men or two women, is equally sacred, is equally a marriage and deserves to be recognised in law.

I share with the most reverend Primate the Archbishop of Canterbury his experience of gay families when he says:

“You see gay relationships that are just stunning in the quality of the relationship”.

However, the failure of his and my church to recognise the vocation of these “stunning” couples as marriage is deeply troubling to many faithful Anglicans here in the United Kingdom. The response of the church to this issue reminds us of a shameful time, only recently passed, when women with stunning vocations to the priesthood were told they could not have this vocation.

I share with many in this House and in the House of Commons a growing sadness at the discrimination that the church continues to practise because of the exemptions it has secured from law. It is becoming increasingly disturbing for me to think that my faith cannot survive in our society without the need for special protection, and has become the last bastion of social conservatism. I am pleased to see that there is a correction to the original Bill that recognises the Church in Wales as a disestablished church. There is now a provision which allows the Governing Body of the Church in Wales to introduce same-sex marriage if it should wish. I hope that the more progressive forces within the Church in Wales will win this argument and that Wales will lead the way for the Anglican Church of England.

My gay friends are not beating down my door demanding that we recognise their “stunning” relationships as marriage. It is people like me—mothers, sisters, friends—who look at their relationships and recognise the vocation of marriage when we see it, and are demanding that we should recognise and celebrate their calling and not try to hide it in some dark corner by calling it something else.

This Bill has passed all its stages elsewhere. It is the will of the people that same-sex couples should have their marriage relationships recognised in law. Surveys have shown that 80% of adults of my generation or younger now support same-sex legislation, including three in five people like me, who have faith. I am deeply saddened by the thought that if my children grow up to love someone of the same gender they cannot have their love affirmed and celebrated by the church to which they belong.

20:17
Lord Dannatt Portrait Lord Dannatt
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My Lords, time is short and there are many speakers in this debate. Therefore, like others, I will aim to be concise. I have four comments to make about the Bill. In my opinion the process of the Bill is and has been flawed; the purpose of the Bill is misleading; the premise of the Bill is worrying; and the atmosphere created by the tabling of the Bill is potentially divisive, and I regret that.

Allow me to substantiate those four assertions. First, the process of the Bill is flawed. Little I can say here is new, but the facts speak for themselves and are important and bear repetition. A Bill such as this did not feature explicitly in any of three major parties’ manifestos at the general election. It did not appear in either of the previous two Queen’s Speeches. The formal consultation process, as we have heard, was purely on the basis of how this redefinition of marriage was to be conducted, not whether it should be conducted. At least that was how it was initially. Moreover the consultation counted only as one view the consolidated views of between half and two-thirds of a million citizens who signed the Coalition for Marriage petition, each giving a verifiable address. Only a short period was allocated for debate in the other place, where there are also doubts—and they have been expressed today—as to how free the supposed free vote in the other place was, not to mention the composition of the committee that gave cursory consideration to the Bill.

Secondly, I suggest that the purpose of the Bill is misleading. It is supposed to redefine marriage so it becomes as equal an institution between same-sex couples as it is between a man and woman. This purpose is a contradiction in terms. A redefinition of marriage cannot bring equality. The defining process of marriage is consummation, which is for the entirely practical purpose of bringing children into the world—the creation of families which have been the building block of society for centuries. The marriage of two men or two women cannot naturally bring about the purpose of marriage; legally perhaps, but naturally not.

Thirdly, I believe the premise of the Bill is worrying. It is supposed to promote the rights of a minority within our population by affording that minority a supposed equality in marriage. I have already argued that that cannot be so, but in the erroneous pursuit of that supposed equality, a Bill that is designed to promote the interests of a minority itself becomes a powerful piece of legislation that threatens the traditional interests of a majority of our population. The supposed safeguards being written into the Bill to protect the rights of many sections of our society to express the traditional view of marriage in private and in public will not be worth the paper they are written on. The inexorable march of litigation will frustrate over time whatever Parliament may, or may not, have intended.

Fourthly, I fear that the atmosphere created by the tabling of the Bill is potentially divisive. For decades there have been vigorous debates about the acceptability of homosexual orientation and lifestyles. Tempers have been raised and emotions have flowed, but whatever individuals thought about homosexual or heterosexual lifestyles, an atmosphere of acceptance and tolerance has been established in all but the most narrow-minded circles. The tabling of the Bill runs the risk of driving a cart and horses through that atmosphere, which has been carefully built up, of acceptance building on previous tolerance. In 2008, I became the first chief of staff of any of the three armed services to give the opening address at the Armed Forces annual LGBT conference. My theme in that address focused on one of the Army’s six core values—respect for others. I may not personally have understood or approved the circumstances of those who were members of the Armed Forces LGBT community but I had an obligation to respect them as individuals. Such respect and tolerance are being severely challenged by this ill-thought-through Bill.

In conclusion, I soundly oppose this Bill for the four reasons I have given but if I had to pick one of them as my principal ground of objection and why I shall vote with the noble Lord, Lord Dear, tomorrow, it is the first one. I believe that the process of this Bill has, to date, been tantamount to an abuse of process which, as a member of the mother of Parliaments, I am deeply uncomfortable about. Following due democratic process and procedure is a principle that I spent the 40 years of my professional life as a soldier upholding. We fought for the ballot box against the Armalite for 38 years in Northern Ireland; we stood for democracy against communism for 44 years in Europe; we stood for the democratic right of self-determination in the Falklands in 1982 and still do; and now as a parliamentarian I am asked to accept an abuse of the democratic process, and I will not do it.

This Bill is of historic importance and in my view history will judge us poorly if this issue was thought to have been fast-tracked to the statute book without due regard to the established democratic and parliamentary processes.

20:23
Lord Mawhinney Portrait Lord Mawhinney
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My Lords, it an honour to follow the noble Lord, Lord Dannatt, and I particularly want to thank him for what he said about respect. I say to my noble friend Lady Stowell how very much I appreciated not just her speech, to which I will return in a moment, but her joke and tell her that if she can maintain that tradition in her political life, particularly in a Chamber where everybody is uptight about something else, then she has a very bright future ahead of her.

My noble friend said that she respected those in the faith community who took a different view from this Bill. The noble Baroness, Lady Royall, said the same thing. I was initially warmed until I thought about it. I have been enormously privileged to spend 36 years in this building, man and boy, and I cannot count how many times I have been told I have been respected when the Minister meant that I was about to be ignored. If the Government really respected the faith community, as they say they do, then this Bill would not be here today. It was interesting that the religious freedom focus was on the 1% and not on the 99%, whereas if faith was going to be respected, the focus would have been on the 99% and not on the 1%.

My noble friend Lord Dobbs gave us a very enjoyable piece about not understanding what traditional marriage is. That got me thinking, although I have done no survey, that most of the Members of your Lordships’ House will have been married, probably most in church. Therefore we will all have acquiesced to a priest, pastor or vicar saying something to the effect that what we were going through was one man, one woman, and for this reason you leave father and mother to become one being, exclusively for life, and for procreation. Not everybody gets it right, but that is what was defined as the traditional marriage. The words are the words of Jesus, and when Jesus used them, they were the words of creation. Therefore, as a practicing Christian, I have a problem with this legislation, because I do not believe that it respects faith and the sincerely held views of those in the faith community.

It is also hard to have respect for this Bill politically. In May 2010 the Prime Minister said that there would not be any legislation. Seventeen months later he was cheered to the rafters by a Conservative Party conference when he told them that he was in favour of same-sex marriage because he was a Conservative. I will tell you something—he will not try that again in 2013. It will not happen. It is hard to have political respect and hard to have it off the back of what passed for a public consultation. Those in this House who know me well will not be surprised if I say that I was brought up on gospel stories. When I saw the public consultation I was rather irreverently reminded of Jesus turning water into wine. This Government turned half a million votes into one vote in order to get 53% in favour when actually 87% were against. Forgive me, but I cannot have respect for that sort of behaviour.

I want to say to the noble Lord, Lord McAvoy, something which he will never have expected me to say, and he will be encouraged to know that I am as shocked to hear myself saying it as he will be to hear me say it, for he and I go back a long way. But he was right. Major social change comes when the majority demands it. Major social and cultural change is not a product of the minority. If it is to be successful, it will be a product of the majority.

I have used up my time. For 40 years my life has been driven by Christian and Conservative convictions, and now I am led to believe that because I continue to hold those values and principles I am a swivel-eyed loon. I want to raise a flag for swivel-eyed loons, because at the very heart of our country and our party is a commitment to time-tested values and principles. It is easy to lose respect. If you lose respect you lose trust, and if you lose trust you are in big trouble—and remember, I was the party chairman in 1997, so I know whereof I speak. This Government need to focus on respect, and if they are going to do that they need to start by taking this Bill away and producing something an awful lot better.

00:00
Lord Quirk Portrait Lord Quirk
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My Lords, I shall be brief. I echo what the noble Lord, Lord Mawhinney, has just said. However, let us agree that the Bill has the noblest of aims: advancing the cause of fairness and equality to a minority absurdly disparaged and cruelly treated, not only in centuries past but in many societies even today. However, the Bill’s aims must be addressed with forethought and wisdom, of which it shows an embarrassing deficiency at present. I, too, urge the Government to withdraw this current muddled and flawed attempt. The equality that it purports to seek is a cheapened version of spurious uniformity in glaring defiance of reality. Our gay community, talented and caring, deserves better and can have it.

I wondered when I first looked at the Bill, whether amendments could bring it up to scratch. In places, they clearly might. In Clause 9(7), for example, the Bill enables the conversion of civil partnerships to marriage, but permits such conversion to have an effective date that would be several years before the relevant form of marriage became legally possible. There, surely, is an absurd anomaly that could be rectified by amendment.

However, as I read further and, of course, before having heard the devastating critique of the noble Lord, Lord Dear, today, it became obvious that only a thorough reworking of the Bill, with a root-and-branch rethink of its proposals and their implications, could do the job. This is perhaps especially manifest in the 60-page document, laughably called Explanatory Notes, which has several explanations such as this one on page 29, which states that,

“‘husband’ here will include a man or a woman in a same sex marriage … In a similar way, ‘wife’ will include … a man married to a man”.

Such linguistic acrobatics, distorting the marital bed into a Procrustean one, are inherent in the Bill at present. They smack, not so much of Humpty Dumpty’s world—as the noble Lord, Lord Dear, implied this morning—as of the dystopias of Jonathan Swift and George Orwell. After all, Lewis Carroll was only joking; Swift and Orwell were deadly serious.

20:33
Lord Stoddart of Swindon Portrait Lord Stoddart of Swindon
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My Lords, I think by now most things have been said about the Bill. Nevertheless, I will repeat some of them because I want my views to be on record. The first thing I want to say is that the Bill is an outrage to democracy. No political party had the guts to include this measure in its manifesto. It is a measure that undermines the concept of marriage that has lasted for centuries. The Bill, as we have heard, was rushed through the House of Commons, ignoring the generally accepted rule that Bills with constitutional implications should be discussed on the Floor of the House rather than in Committee. That point was previously raised by the noble Lord, Lord Naseby. Under this circumstance, this House has not only the right to return the Bill to the Commons but the duty to do so, because it does not have the wholehearted consent of the House of Commons or, indeed, of this place or the country as a whole. I want it returned to the Commons because I believe that it should reconsider its position and either delay the Bill until the next election, when it can be included in the various parties’ manifestos, or hold a referendum on the matter later this year or early next year.

Some noble Lords have said that this House does not have the right to return the Bill to the House of Commons and no right not to give it a Second Reading, but it has every right to do so—and, as I have said, it has the duty to do so, so that the whole matter can be reconsidered. The noble Lord, Lord Dobbs, said that there would be bad consequences for this House if we ignored a Commons Bill in this way. I have been here for 33 years and, whenever anything like this has come up, we have heard the same threat, but we are still here—and we will probably be here for a very long time yet.

Like other noble Lords, I have been inundated with letters and e-mails about the Bill, and the overwhelming majority of them have urged me to oppose it, which indeed I shall do by supporting the amendment tabled by the noble Lord, Lord Dear. We have heard claims that the public are all for this Bill; we have heard all sorts of figures bandied around. My postbag and e-mails do not show that. Indeed, I well remember being told that an overwhelming number of people in the country supported AV and that it was more democratic. However, when we had a referendum on it, only about one-quarter of them thought it was a good thing. We had the same problem over regional government; when that was put to the vote, after it had been lauded by the then Government, who presumably believed that the people were for it, in the Prime Minister’s own constituency they voted against it by 3.5 to one. Therefore, we should be very careful about the claim that is being made that a large majority of the country is in favour of this legislation.

Those who have written to me find themselves in a situation where they feel that they cannot be heard. Indeed, I have to say that when the three parties agree to anything we lose our democracy. We are, in fact, in respect of this Bill, living in a one-party state, because the electorate can do nothing about it. Bills are rushed through. The major political parties believe, cynically, that since they are all in favour of it, at the next election people opposed to it will have nowhere else to go—that all the parties are in favour of it, so people cannot vote for an alternative. Of course, they can do other things, such as abstaining or voting against all those parties and all the MPs who supported the Bill. They cannot vote against Peers, of course. I will have great pleasure tomorrow in supporting the amendment of the noble Lord, Lord Dear, and I thank him for moving it.

20:39
Lord Tebbit Portrait Lord Tebbit
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My Lords, this Bill is promoted as a measure to end a discrimination against homosexuals, but the present law of marriage does not discriminate against homosexuals. The rights of a homosexual man are identical to mine. Subject to the laws on incest and bigamy, we are each free to marry a woman. Neither he nor I may marry another man. Our positions are identical. If it were to be held that the wish of a homosexual man to marry another man being thwarted by law was proof of discrimination, then the law forbidding polygamy would equally be proof of discrimination. Therefore, undoubtedly, we should move, on the basis of the arguments that have been put forward in favour of this Bill, towards making lawful the marriage of one man with two or more women, or a woman with more than one man.

It does not end there. The claim that the Bill merely undoes an act of discrimination is false; it is worthless and deserves no credibility. Those who support this Bill must find some other reason for it than that. If the Bill were to be enacted, it would introduce a real and novel form of discrimination. I understand that there is no definition of how a same-sex marriage would be consummated, or of what would be regarded as adultery in a same-sex marriage. Therefore, a heterosexual marriage would stand liable to annulment because of non-consummation but a homosexual marriage would not. Similarly, a heterosexual husband or wife might be found to have committed adultery, whereas a homosexual could not be found to have committed adultery. That is real discrimination. Then, of course, we would have to change the law for heterosexual marriage to bring it into line with homosexual marriage and abolish adultery and non-consummation. That would be madness.

Then there is the matter of the law of succession and its interaction with this Bill. There is, I believe, no bar to a lesbian succeeding to the Throne. It may happen. It probably will, at some stage. What, then, if she marries and her partner bears a child by an anonymous sperm donor? Is that child the heir to the Throne? If the Queen herself subsequently bore a child by an anonymous donor, which child then, if either, would inherit the Throne? The possibilities must have been discussed in the deep consideration of this Bill in government, so the Minister must know the answer. If she does not know it immediately, I am sure that her officials will be able to give it to her, because it has all been discussed thoroughly.

Finally, I must express my concern for those employed in schools and churches. Would their jobs be at risk should they question the new orthodoxy? Section 28 of the Education Act prohibited teachers from promoting homosexuality and was denounced by the liberal establishment. This Bill seems to require teachers to promote marriage between homosexuals. What will the liberal establishment say then? There must be some explanation for that.

We know already that a voluntary chaplain to Strathclyde police force has been dismissed for supporting real marriage. No doubt noble Lords have received a letter, as I have, from Ormerods Solicitors, setting out the concerns of many people over the impact of the Bill on those in the church and the teaching profession. Marriage exists not just for the convenience of couples but to stabilise society. It seems to me that this House would be wise to refuse a Second Reading for the Bill until all these concerns have been met. I underline again what has already been mentioned this evening in quoting page 29 of the Explanatory Notes to the Bill. It states:

“This means that ‘husband’ here will include a man or a woman in a same sex marriage, as well as a man married to a woman. In a similar way, ‘wife’ will include a woman married to another woman”.

Does that sound like gobbledegook to any noble Lord? It sounds not merely like gobbledegook but the reversal of the natural and normal meaning of words. It is no good my noble friend waving his hand in that peculiar gesture. That is what it says in the Explanatory Notes to the Bill that he supports. I will support the amendment of the noble Lord, Lord Dear, tomorrow night.

20:46
Lord Davies of Stamford Portrait Lord Davies of Stamford
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My Lords, the noble Lord, Lord Tebbit, asked some very ingenious and challenging questions, and I know that I am not alone in looking forward very much to the Minister’s response to them.

Irrespective of my views on this subject, to which I will come in a moment, I congratulate the noble Lord, Lord Dear, on taking time and trouble, and displaying considerable courage, in bringing forward the amendment and arguing for it extremely well. By doing so, he has, at the very least, ensured that today’s debate is a great deal more serious and intense than it would have been if the result had been a foregone conclusion.

I may be the first speaker who has deliberately refrained from taking a decision on how I will vote tomorrow until I have heard the debate. Incidentally, I share the view that the Government’s conduct on this Bill has been pretty unedifying. In my view, it should have been brought in as a Private Member’s Bill. It has nothing to do with party politics or the governance of the state and was not mentioned in any manifesto. The consultation exercise was clearly perfunctory, to say the least, and may have been dishonest and falsified if it is true—I pray that it is not—that a petition of half a million people was counted as the expression of one view. That is the sort of legalistic trickery one normally associates with Putin’s Russia, and it would be very deplorable if it has happened here. Nevertheless, these are not the essential points on which we will vote.

I shall certainly vote as I do not believe in abstention. I am minded to vote for the Bill on the basis of two principles by which I always try to be guided. One is the liberty principle, first explicitly formulated by Mill, which was referred to by the noble Lord, Lord Dear, in his introductory speech. It states that in a free society the state does not attempt to constrain the liberty of the citizen beyond the minimum point required to defend the liberty of others. Therefore, if you have two potential partners to a marriage or any other ceremony and someone willing to perform the ceremony, be he or she a priest, a minister of religion, a registrar or whoever, what right does the state have to prevent that taking place? That is a very pertinent and relevant consideration.

The other principle that I always try to be guided by is the Pareto principle, which says that in any structure of social relationships, whether or not enshrined in the law, if a change can be made such that even just one person is happier and no one is made less happy, that change should automatically be made. It seems to me that if we enact this Bill, we will make an awful lot of people very happy. Some say that it will make some people unhappy, but I do not accept that that is the equivalent emotion. The noble Lord, Lord Tebbit, and some other distinguished noble Lords who have spoken this evening, disapprove of what is going on, but disapproval is not quite the same thing. Their own particular liberties, their own interests and their own utility are not impacted, so I do not think that that is relevant.

I am minded, broadly speaking, to vote for this Bill, but I have two very serious reservations that I will put to the Minister. One of these, thank God, has been raised by many noble Lords this evening, and I will add to the list of those who have emphasised it. The other has not been mentioned at all. The one that has been mentioned is the fate of people who might lose their jobs as a result of this Bill being enacted. We should all be extremely concerned about that. What about registrars, whom no one has mentioned? As I read the Bill, registrars, unlike priests and ministers of religion, will not have the opportunity to opt out. Are they all going to be fired? Are they going to be compensated? Is a decent effort going to be made to find them another decent job? We need to know. We cannot possibly allow this Bill to go on the statute book without having an answer to those questions.

What about teachers? I also read the legal counsel’s opinion to which the noble Lord, Lord Dear, referred, so I need not summarise it. It states, very persuasively, that there is all too great a danger that teachers will lose their jobs if they continue to express the view that the proper concept of marriage is the traditional one, as we understand it. The noble Baroness, Lady Stowell, went a long way to meeting me—and, indeed, the House—on this in her remarks from the Front Bench when she said that the Government intended that there should be effective protections and were prepared to strengthen the Bill to make sure that those protections were more effective. The Government were not prepared to accept amendments in the other place, but I took it that there would be a greater degree of flexibility, perhaps as a result of this debate and of the reaction in the country. If that is the case, I welcome it. If the Bill goes forward, I shall certainly refer to the earlier assurance from the noble Baroness, Lady Stowell, which will be very relevant to proceedings in Committee and on Report.

The other reservation and concern on which I must be satisfied if I am going to vote against the amendment and for Second Reading relates to the issue of legal blackmail. It is all too possible that, even if the law is totally robust, a teacher or a priest who has tried to opt out, or somebody else who is, or should be, protected under the Bill, may be attacked at law by a possibly aggressive gay rights organisation. The case may go up through the courts to the Supreme Court, even to the European Court of Human Rights in Strasbourg, where ultimately the protections will prove to be robust and effective. However, how can a poor individual citizen possibly face a movement with millions of pounds to spend on lawyers who would certainly not, in this case, be working on a contingency or conditional fee basis? This thing could go on for years, running up millions of pounds and totally disrupting the life of the plaintiff—or defendant, depending on whether it was a civil or criminal action, though from a practical point of view the result would be very similar. We must be assured that would not happen. Who would pay the legal fees in the case of a priest in the Church of England or another church? Churches’ money should not be spent on defending a person finding himself in that position. Someone earning £15,000 a year cannot be expected to find millions of pounds to pursue his own defence. I would need a robust answer to that question before I would be prepared to support the Bill.

20:53
Lord Alderdice Portrait Lord Alderdice
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My Lords, when the civil partnership legislation came to your Lordships’ House, I spoke strongly in favour of it. If it came again because there was a need for further protections or development of the legislation, I would continue to speak very strongly and passionately for it. However, I am not speaking from the place I normally sit as Convenor because my views about this legislation vary from those of the overwhelming majority of my colleagues on these Benches. It is right to make it clear that I take a different view and that I am not persuaded of the virtues of this piece of legislation.

I am hesitant to speak because many of those who have spoken, and many outside, feel very passionately and sensitively about these things, and I have listened carefully to my noble friend Lady Barker, the noble Lords, Lord Smith of Finsbury and Lord Black of Brentwood, and others who have spoken strongly of their personal experience and their strong feelings and sense of hurt at times. However, others have spoken crisply and I have been sent e-mails by leaders of some campaigns advising me that any opposition to the Bill can be based only on homophobia. That is as unhelpful and unfortunate as extremism on the other side.

It is important for us to consider what is being proposed. No one disputes that it is a major change, and it is for the proponents of change to make their argument persuasively, not the reverse. I am not opposed to change, and the noble Baroness, Lady Neuberger, pointed out that there have been many changes in the institution of marriage over the years. At other times, she said, polygamy was possible. She could also have said, “and currently in other places”. In our part of the world it is illegal. The age of consent for marriage has not been the same at all times, nor has it always moved in one direction.

The noble Lord, Lord Blair of Boughton, was not correct when he said that the tide of history flows always in one direction—would that it were so. In many parts of the world it is flowing in a very different direction and that is one of the great dangers of which we must be aware when we espouse social change of a major order. My noble friend Lord Lothian made the point—and I share many of his concerns about conflict in various parts of the world—that if one does not take the people with one in a social change, one can actually provoke reaction against it. I give one example: I am a member of the Presbyterian Church in Ireland and it is clear that there is a stream against continuing with the ordination of women, which we have had since 1927. It is not at all impossible that it might be reversed; it was reversed some years ago in the Presbyterian Church in Australia. Therefore, the tide of history does not always flow in one direction, and it can be greatly disadvantageous.

The question is: what does the community want? The electorate are often much more fickle, saying one thing now and a very different thing a little while later. Have the Government made the argument? My noble friend Lady Stowell of Beeston made a thoughtful speech. I noted that she said, near the end, that quite simply the love and relationship are the same and therefore should be included in marriage. I had not even finished noting it down before she said that of course the relationships were different. Both statements cannot be entirely true. In a way, her jest—sometimes the truth is spoken in jest, and she mentioned George Clooney—said a lot because it pointed out that the thought of marriage is for many people about merely a sense of attraction, the wish to be with a person and the wish for that to be permanent. There was not much sense of looking at the other components of marriage that are also important but are not necessarily a part of civil partnership. The bringing into being of children, nurturing them and bringing them up are not things of little importance.

It is therefore important to persuade, and I am not persuaded that the talk of equality is not being mistaken for sameness in the minds of some people. Yet the truth is that equality is about recognising difference, diversity and treating people fairly, not trying to ensure that everyone fits into the same institution. The Bill will not achieve what it is said to achieve for gay Christians who wish to solemnise their marriage in churches. It will not happen unless what happens is similar to what the noble Lord, Lord Smith of Finsbury, referred to when he talked about those who had spoken in favour of civil partnerships having changed their minds about whether they were going to press for same-sex marriage. Could it be that we find ourselves returning to this issue again in this House in debate and in legislation because, once achieved, there would be unhappiness that all the main churches were still not prepared to accept this matter? Unless one was a Quaker, liberal Jew or Unitarian, it still would not be possible to solemnise a marriage in a church. Would we return to the issue? I fear that we would do so again and again. The arguments must be clear, thoughtful and robust. This is not the only issue of equality whereby the notions of sameness and uniformity seem to have grasped people and they no longer understand equality in any other way.

My time has gone—those who know me well know that I can speak at substantial length on anything I care passionately about. I speak not as one who is unpersuadable, nor as one who stands in the way of change if it is clearly thought through and reflected upon, but as one who genuinely feels that sometimes what appears to be a progressive move can trigger quite the opposite. We must tread carefully, thoughtfully and reflectively to ensure that we make real progress for all concerned and for our society as a whole. A lot has been said about individuals but this is a social institution for society as a whole and it must be thought through in that context.

I shall continue to listen and to think. I suspect that I shall not feel able to support the Bill, but neither shall I feel able to support the amendment of the noble Lord, Lord Dear, because I believe that, the elected House having spoken, it is our job to consider, reflect and debate upon the Bill in public where our society may see it, and in that way contribute to the further discussion of the Bill.

21:00
Lord Browne of Madingley Portrait Lord Browne of Madingley
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My Lords, to my mind, the evidence is quite clear. Marriage is a human construct and the romantic idea of marriage as a beacon of stability does not stand up to scrutiny. Rather, as views about what is socially acceptable have changed, so have the boundaries and parameters of marriage.

The freedom to marry in the United Kingdom used to be confined to Anglicans. Over the centuries, it has been extended to Catholics, Jews and Quakers, to all other religions, and to those of no religion at all. Divorce no longer requires an Act of Parliament and women now have equal status in a marriage.

More than 80% of people in Britain now agree that homosexuality is a way of life that should be accepted by society. What should be, and always has been, the yardstick when it comes to marriage is what is socially desirable; we should then decide what the function of marriage should be—not the other way round. That is one of the many reasons why I support this Bill. I want to offer two more.

The first is a practical argument, based on my long time in business. In 2007, I resigned as CEO of BP because of the lengths I went to in order to hide my sexuality. I thought that coming out might threaten the company’s commercial relationships and my career. I will never know if those fears were justified, but they are no way to do business. People are happier, more productive and make more money for their company when they feel included and they can be themselves. As a business leader, I want people to focus all their energies on their job, not on hiding part of who they are. Inclusiveness makes good business sense and giving gay couples the freedom to marry will eliminate one more barrier to inclusion. If it helps them to be themselves in the workplace, it will represent another step towards the meritocracy to which we all aspire. Gay marriage is a matter of strategic importance for British business.

The second reason comes from my personal experience. I grew up in a climate of fear, where homosexuality was illegal. My mother was an Auschwitz survivor and advised me never to trust anyone with my secrets. I avoided discrimination by simply keeping quiet. Young gay people today live in a different, more tolerant world but they still worry about discrimination, marginalisation and how their families and friends will react. One of the most effective ways to dispel this stigma is through the provision of role models. If I had seen gay men in legally recognised public relationships of the sort my parents were in, I would have found it easier to come out and I would have been a much happier person.

We must not lose the plot. The Bill enables same-sex couples to be married by civil and—only if they provide their consent—religious authorities. At critical points in history, this House has recognised the need to adapt to changes in society. That is the source of its strength and the reason for its longevity. I intend to vote against the noble Lord’s amendment.

21:05
Lord Framlingham Portrait Lord Framlingham
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My Lords, the first thing I must say is that I have absolutely no choice about how I vote on this issue. The principle of marriage being a union between a man and a woman for life is sacred, and the role that it plays in binding together families and nurturing children is an indispensable part of the fabric of our country. That has always been one of my core beliefs and I cannot desert it now. I really do believe that if this Bill were to become law, untold and unforeseen damage would be done to our country and to how we see ourselves.

This issue is not like a debate and a vote on the National Health Service, on our nation’s defence or even on the structure of your Lordships’ House, important though those matters undoubtedly are. As far as I am concerned, this is a change that we should not even be contemplating or debating. The fact that we are is a very sad indicator of just how far our country has lost its moral compass or perhaps of just how wide now has grown the gulf between the people and those who govern them. I feel sure that millions of people share my beliefs and concerns to a greater or lesser extent and that, if this measure goes through, their belief in what their country stands for and the role of your Lordships’ House will be severely damaged.

If this proposal has genuine merit, what harm can voting against its Second Reading at this time honestly do? The worst that can happen is that the Bill will be delayed, giving time for government, all the political parties and the people in the country to think the matter through carefully. It can then be put forward again properly in a fair and honest way at the next general election, which is now not very far away. That is the worst that could happen.

But what is the worst that could happen if we allowed the Bill to pass its Second Reading without having thought carefully about all its ramifications, and without a proper political and national debate, which of necessity must be thorough and will take some time? I say that that would prove to be a disastrous course of action and one that we must set our faces against.

I beg noble Lords not to be bamboozled or seduced by the argument that says, “Just vote for the Second Reading and all your concerns will be ironed out at the Committee stage”. Once your Lordships have agreed to a Second Reading, the game is lost; they have sold the pass. A question of principle becomes a war of attrition in which the Government almost always prevail. Noble Lords should remember that they will constantly be told, “Well, you voted for it at Second Reading”.

The role of this House, and its legitimacy and relevance in the world today, are constantly being questioned—not, I hasten to add, by me. I have the utmost faith that this House will always do the right thing at the right time. However, these questions still hang over us.

Let us be honest: there is no desire or support for this Bill in the country. This is surely the moment to demonstrate our relevance, our understanding and our purpose in a way that will earn the undying gratitude of many immediately and, I believe, the vast majority of the British people when they come to understand what really was at stake. I will certainly support the amendment of the noble Lord, Lord Dear, tomorrow.

21:10
Lord Carey of Clifton Portrait Lord Carey of Clifton
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My Lords, we have heard some stirring speeches today. No one doubts their sincerity and commitment. I particularly want to thank the Minister for the way she contributed to the debate in her opening speech, and the tone she set. That tone has been followed throughout the day. I also want to thank the noble Lords, Lord Black and Lord Smith, for their personal testimony of what it means to be homosexual, and the noble Lord, Lord Browne, as well. We need to hear those kinds of stories and take them into our system, so that we can think more about them in the days ahead.

In three weeks’ time my wife and I will celebrate our 53rd wedding anniversary. I know that some Members of this House can claim to have served longer in the marital stakes than we have, but whether we have been married for just a few months, for as long as I have or for longer—perhaps the noble Lord, Lord Tebbit, has the edge on me—all of us can say that along with the joy, the difficulties and some tragedies that happen to us on the way, marriage is at the heart of human love and society.

Those of us who were married according to the Book of Common Prayer will recall the preface to the wedding service:

“And therefore is not by any to be enterprised, nor taken in hand, unadvisedly, lightly or wantonly”.

Although addressed to the couple, the words can bear the broader meaning that nobody should take marriage lightly or indifferently. It is the view of many people that, sadly, this has happened and is happening. The noble Lord, Lord Dear, in his brave speech, gave voice to that. We are treating it all too lightly.

The Conservative Party knows that if the intention to widen marriage to include same-sex couples had been put in its manifesto, it would not have been in a position to form a coalition. Discussion of this fundamental building block of society—we have all described it as that—has been thwarted at every turn. There has not been a proper debate, and the consultative process has been a shambles because, right from the outset, the Government have made it clear that the consultation has never been about whether same sex couples should marry, but how it might be achieved.

That is now behind us, but there is a proper question that has come through our debate today, and it is one that I have heard from same-sex couples. They ask, “When you talk about celebrating married love, why can't it be for us as well?” That is a very important question that we need to face up to. Those proposing change usually argue, as they have done today, in terms of equality. But with respect, we are told that those in same-sex relationships already have parity with marriage through civil partnerships, which give them equal rights. Equality is hardly the right term to use when comparing same-sex couples with those who are married, not least because marriage is not, and has never been, viewed in terms of sameness, as the right reverend Prelate the Bishop of Chester mentioned earlier, but of difference—the difference of male and female, which creates and nourishes life.

Of course, marriage does not have to include children, but in the majority of cases it does. It is a procreative institution. This is the major and crucial difference between marriage and civil partnerships. This point has not come across as powerfully as it should. Those of us who are resisting change are not doing so because we are cussed or bigoted, but because of the fundamental principle that marriage can only be between a man and a woman. We should not fall into a trap. We have heard once or twice that morality is on only one side of this debate; it is not. Those of us who disagree are morally concerned about the issue as well.

I will end by making this point. I have no doubt whatever that should this Bill pass, marriage as we know it will be weakened and diminished. I do not believe that redefining marriage to include same-sex couples will strengthen it, as the Home Secretary has declared on several occasions. Recent research in countries where the marriage of same-sex couples is already a reality shows the collapse of traditional marriages alongside same-sex marriages. When we vote on the Bill tomorrow, we need to bear this evidence in mind. We shall all follow our consciences, of course, but I shall keep faith with the institution of marriage as I have experienced it and as I have taught it. Therefore, I will vote for the amendment moved by the noble Lord, Lord Dear.

21:15
Lord Deben Portrait Lord Deben
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My Lords, it seems to me that one of the difficulties we have when faced with something that appears to be so new is that we cannot quite imagine what it must have been like when something like this happened in the past. However, there is a direct 19th-century parallel to the debate we are having here. It was the argument about the right of a man to marry his deceased wife’s sister. That battle was horrendous. The Table of Kindred and Affinity, that schoolboy refuge from boring sermons, specifically forbids such a union. It is the same chapter of Leviticus that condemns gay sex, and it called marriage with your dead wife’s sister an abomination. On that basis, your Lordships’ House stopped reform from 1835 right up to 1907. Last week, I reread the arguments of those who scuppered the reform, and I fear that I have heard them all again today. Your Lordships then complained about rushed legislation. They said that it would be the end of marriage and that it would encourage incest. They hinted at polygamy. They said in particular that for 2,000 years such an outrageous thing had never been contemplated, and yet, once passed, that most controversial of Acts was wholly accepted. The Church of England revised the Table of Kindred and Affinity so that what was once an abomination is now holy matrimony.

It was the science that did it. Once we understood consanguinity, we distinguished between relationships that were genetically dangerous and those which were simply culturally arguable, and so it is with gay marriage. Once we understand scientifically that some people are solely attracted to their own sex, we realise that homosexual practice is not heterosexuals behaving badly, but gay people behaving naturally. That automatically means that the state can no longer exclude this minority. As a result, in my lifetime we have moved from criminalisation almost to equality. Today, we have the chance to complete that journey, to accept the science, and to allow civil marriage for all.

This is civil marriage. State marriage has diverged from church teaching for more than 150 years; some would even say since Henry VIII rigged the rules to his own advantage, but that would be an embarrassment to some Members of this noble House. As a convert Catholic, I have chosen to accept that Christian marriage is about procreation, that it is indissoluble, and that there is no such thing as divorce. Yet, as a parliamentarian, I cannot demand that non-Catholics should accept that definition. As the noble and right reverend Lord, Lord Carey, has reminded us on other occasions, marriage is owned neither by church nor state. Otherwise, I have to say to the noble and right reverend Lord that I am worried about the basis of his theology. It seems to be stuck in an earlier age. There are no echoes of René Girard, one of the greatest theologians of our time. There is no word from Dom Sebastian Moore, not a touch of James Alison. It remains a theology that has not come to terms with Freud. In that it is a precise parallel with the 19th-century bishops who spoke here in that debate and who, like Samuel Wilberforce, had a theology that could not admit of Darwin.

There are, of course, those who say, “Why can’t these homosexuals make do with civil partnerships?” That is entirely to miss the point. Civil partnership is a means of protecting legal rights. Marriage is a public affirmation of love. The noble and right reverend Lord, Lord Carey, says that marriage is at the heart of love. He is saying that this House should say to homosexuals that they may not express their love in that way. Married for 37 years, I find that offensive. As a parliamentarian, I cannot say that to fellow citizens. I cannot accept a society that will not go that far.

Lord Carey of Clifton Portrait Lord Carey of Clifton
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I wonder whether the noble Lord would allow me to say that my argument was built on a very unsatisfactory Bill. We need to send it back to the country so that we can have a proper debate on it. The noble Lord talks about the changes to marriage. Of course there have been many changes, but there has not been a change to the fundamental fact about male and female. I think that all the theologians, stretching back, would agree with me.

Lord Deben Portrait Lord Deben
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All I would say to the noble and right reverend Lord is that he is asking for us to go back to have a debate that he has already concluded. He has said that it cannot change this basic fact. I am suggesting that we have to accept that major social changes do not happen when the majority have aligned themselves. Major social changes have almost always happened when a minority have stood up for what they believe to be right and put it to the public, and in the end have proved that they are right.

I suggest that many of those who talk about civil partnerships were not terribly notable for their support of them at the time. I voted against civil partnerships because I thought that they were a fraud. The Government told gay people that it was marriage and straight people that it was not. I can now, in good conscience, vote for a truthful statement of a necessary reform and for a Prime Minister brave enough to promote it. I hope that this House will not repeat its 19th-century error. I hope that understanding will break through our misgivings and Christian charity through our doubts, and that the House will have the strength to say yes to this Bill.

21:23
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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My Lords, this Bill is about human rights and, as one citizen wrote to me, the creation of a society,

“where citizens are equal both in rights and responsibilities”.

In other words, this means equal citizenship for lesbian, gay and transgender couples. In the words of an LGBT carer, cited by Barnado’s, which supports this Bill in the interests of children, despite the fears expressed by a number of noble Lords,

“this is an opportunity to take away yet another barrier to equality, removing something that makes our families different to straight families”.

I would like to cite and pay tribute to a colleague of mine at Loughborough University, who has been at the forefront of the battle for equal marriage, Professor Sue Wilkinson, and to her partner, a former colleague of mine, Professor Celia Kitzinger. They married in Canada when Professor Wilkinson was based there, only for their marriage to be automatically deemed a civil partnership in this country when she returned. That for them was not equality. The noble Lord, Lord Deben, has explained extremely well why it was not equivalent. They wrote:

“As long as marriage is open only to heterosexuals, and civil partnerships only to lesbians and gay men, the British government is maintaining a symbolic separation of straights and gays, and sending out the clear message that our relationships are of less value to society than heterosexual ones. This is insulting, demeaning and profoundly discriminatory: an affront to social justice and human rights”.

I thus congratulate the Government on legislating to remove this affront.

In doing so, however, the Government risk creating a new source of injustice: the denial of the right of access to civil partnerships for same-sex couples. The announcement of an early review of civil partnerships is therefore welcome. I very much hope that that review will lead to their extension to same-sex couples, not their abolition. The Government Equalities Office published a document challenging some of the myths around the Bill. It states:

“MYTH: There is no difference between civil partnership and marriage. REALITY: There are some small legal differences … But for many people there are important differences in the perception of and responsibilities associated with these separate institutions”.

In the interests of those same-sex and opposite-sex couples alike for whom these differences matter, it would be a backwards step to do away with civil partnerships.

When the Joint Committee on Human Rights, of which I am a member, questioned Ministers, the Secretary of State had some trouble in understanding why some straight couples might prefer a civil partnership over marriage. The noble Lord, Lord Faulks, who is not in his place, explained:

“There are a number of people, particularly women, who do not perhaps share your enthusiasm for marriage and think that marriage oppresses women. None the less, they would like the benefits of a civil partnership and find it rather peculiar that they would not be able to have the benefit of this relationship when same-sex couples can”.

I have to confess that I was one of those women who chose not to enter what I saw as a patriarchal institution, even if the likes of George Clooney were available, which of course he was not. However, I might well have welcomed the possibility of a civil partnership—particularly with Mr Clooney. The committee also questioned Ministers about the costs argument that they had advanced. The Minister for Pensions cited a figure of £3 billion to £4 billion, but later indicated that this figure referred to the cost of total equality in public service pension schemes. Of course, the Bill does not end discrimination in pension schemes, an issue that was raised in the Commons. Could the Minister now provide a more accurate and focused estimate of the cost of extending civil partnerships to opposite-sex couples?

In the time available, it has not been possible to go into the Bill’s details or raise issues such as the legal recognition of humanist weddings, which I would support in principle. To finish where I began, I believe that this Bill represents an important step for human rights and equal citizenship. I therefore hope that your Lordships’ House will support its basic principles when we come to vote tomorrow.

00:00
Lord Hylton Portrait Lord Hylton
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My Lords, I regret that I cannot wholly follow or agree with the noble Baroness. Many speakers today have pointed to the social changes of the past 50 or more years. I do not, however, believe that progress is either automatic or linear. I agree with the noble Lord, Lord Alderdice, that the proponents of change must justify their case to the full.

I regret very much that the fine old English and French word “gay” has, in my lifetime, been appropriated by a small but vocal minority of the population. The result is that it can no longer be used in its original and rather delightful meaning. Now, under the pretext of securing equality, Her Majesty’s Government are proposing to change the meaning of marriage. It is surprising that the leaders of the Conservative Party, who might be expected to uphold traditional values, should lend themselves to this attempt. My noble friend Lord Dear and others have pointed out the constitutional and procedural defects of this Bill, so I will not repeat them. I do however agree with those who have identified unintended and unanticipated consequences.

After these criticisms, I will try to be constructive. Civil partnerships are already recognised in and defined by law. Surely the whole country should regard them as being an honourable status not to be entered into lightly but rather with the intention of permanence, as several noble Lords have already argued. Why should civil partnership be considered a second-best choice or a “make do”, as the noble Lord, Lord Deben, put it, which somehow must be promoted to equality with marriage? Those who are in or who propose to enter civil partnerships have a responsibility to live in such a way that their status deserves as much respect as that of married couples.

I conclude that the whole matter has not been adequately considered. It urgently needs further and deeper thought. We should not be rushed off our feet just because some other countries have already legislated for same-sex marriage or because the Bill may be needed to cement the coalition. There is ample evidence that public opinion, including medical opinion, is against the Bill. I therefore support my noble friend Lord Dear and will vote for his amendment. I commend his courage and thoroughness.

21:31
Lord James of Blackheath Portrait Lord James of Blackheath
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My Lords, I got a phone call last week from a former colleague of mine, whom I had not heard from or seen for some time, asking if I would come to his same-sex wedding. I said, “Yes, when is it?”. He said, “As soon as you lot have passed the Bill”. I said, “We might not pass it”. He said, “Well, you’ll vote for it won’t you?”. I said, “No, I won’t”. He said, “Well, you can’t come to the wedding then”. I said, “You’ve just exercised extreme prejudice against me. Why are you doing that? You’re pleading that you want this in order not to have prejudice, and now you’re prejudiced against me because I’m saying that I’m going to vote against it”. Then he said, “It’s not you we want, anyway, it’s your wife—she’ll really make the party rock. Can she come instead?”. I said, “Yes, of course she can. You had better write and ask her. She’ll agree”. They did and she is going.

I said, “By the way, is this anybody I know?”. I thought it might be another member of the team. “No”, he said, “We’ve been together for eight years, but he’s someone you don’t know”. I said, “Good luck”. He then said, “Tell me, really, why you aren’t in favour of this”. I said, “I’m not in favour of it because you’re going to create a series of new minority sectors in the community. You think that you’ve been underprivileged and that you can now get to a point of parity, but you’re going to be like the animals at the end of George Orwell’s Animal Farm. You’re all going to be equal, but some of you will be much more equal than others. And what are you going to ask for next? This is the way it’s going”. He said, “It’s very unfair”. I said, “Look, my concern here is that this is introducing a new division and a new disturbance into British society at exactly a moment when we ought to be putting all of that behind us and getting on with being one nation, trying to sort out the dreadful problems we’ve got without worrying about creating new sub-divisions—and you are a sub-division that will cause a major rift in society”.

I base that view on the fact that I have had a vast number of letters, as my noble friend Lord Naseby said. I think I have had 393 and only three of them have been in favour of this Bill. One of them, which I thought was very sweet, was from a lesbian Christian society. Another, which was absolutely amazing, was from a major research organisation, stating that homosexuality was good because it was an essential part of the evolutionary process for the human psyche. I am still trying to work that one out. As for the rest, everything has been a heartfelt expression of the anxieties that people have over what this will mean for them.

I live in West Sussex, where we have a very strange situation. On the border of the diocese of Chichester, we have two villages called Eartham and Slindon. They are a case study in how the British public reacts. Eartham is a Catholic community and Slindon is Protestant. On one day each in the past 450 years, the populations of those two villages have got up, presumably had a good breakfast and gone out with the express intention of massacring the entire population of the other. They both failed, but they had a very good go at it. The point is that two villages can hate each other to that extent on religious principle and do it for so long.

We have now at last got it sorted out. The tragedy of Slindon and Eartham is the first thing that strikes you when you walk into them: there are no war memorials for the First World War. That is serious. If you do not have a war memorial in a village, it means one of two things. It usually means that somebody in that village was executed for desertion and, therefore, the village is suffering from shame and shock and will not put up a war memorial. In Slindon and Eartham there are no war memorials, but not for that reason. The reason is that when you look at the names of the people who died there—a lot died at the first Ypres—the same names appear on the Catholic and Protestant registers. They are not the same people. They are brothers divided by their religion, which is shocking. That they can live together, go to war together and die together, but not be remembered together, is an outrage. I hope that the right reverend Prelates in front of me will give some serious thought to the possibility that there is a wonderful opportunity for the Church of England to commemorate the outbreak of the First World War next year by setting about a systematic correction of all the missing war memorials in the country to include the 304,000 people who were led out by Protestant priests to face the firing squad. It would be a very nice gesture after this interval of time, and it is way overdue.

We have here an extremely unquiet and disturbed community, which is expressing grave anxiety over what it has. We have heard today that there are real reasons why we have not thought about this long and hard enough. I will wholly support the noble Lord, Lord Dear, in his vote tomorrow, and hope that we will get down to some serious thinking to put it right.

The one word I have not heard enough of today is “marginalisation”. There is a real prospect of marginalisation coming in here. I am particularly unimpressed by the story of the Australian sexual equality board, which received a complaint from the two opening batsmen of the Australian women’s cricket team saying that they had been dropped because they were the only two non-lesbians on the team. They wished to complain, whereupon the board wrote back and said, “If you think that this board exists to look after the interests of a couple of straights like you, you have got another think coming. We exist only for the sake of looking after the gays”. That is marginalisation. The board then rather spoilt the argument by saying, “In any event, ladies, neither of you scored enough runs to be worth bothering with”.

21:37
Lord Kerr of Kinlochard Portrait Lord Kerr of Kinlochard
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My Lords, seven years ago, this House considered the late Lord Joffe’s Bill on assisted dying for the terminally ill. I had been here only a couple of years and found it quite hard to make up my mind. I could see that the key was whether the safeguards were sufficient or whether, in the urge to be copper-bottomed, they had become too complex. I looked forward to Second Reading, because I expected the arguments for and against, and the merits and inadequacies of the various safeguards to be brought out fully. I was shocked when this House refused a Second Reading. It seemed to me that we had refused to do our job. That is how I feel about the amendment of the noble Lord, Lord Dear, as he knows; he was kind enough to tell me in advance of his intent, and I told him that I could not support it.

As this debate has very eloquently shown, the Bill arouses strong feelings on all sides of this House, as did the assisted dying Bill. I believe that there is a majority in this country in favour of this Bill, though a much smaller majority than was in favour of the assisted dying Bill. I believe that on assisted dying, the majority is now greater than it then was. I hope that when the noble and learned Lord, Lord Falconer, presents his Bill, we will not make the mistake we made seven years ago.

However, there is a big difference between the two Bills. This is a government Bill that has passed through the House of Commons. In his eloquent speech, the noble Lord, Lord Dear, made four arguments to support his thesis that the procedures so far have been undemocratic. First, he said that the Bill had been in nobody’s manifesto and was not in the coalition agreement. What new doctrine is this? Would we have abolished capital punishment if it had been a requirement that it should first be in somebody’s manifesto? Would Lord Jenkins, in his remarkable tenure at the Home Office, have introduced the society-changing reforms—wholly to the benefit of society, in my view—if they had first to be in the Labour manifesto? They were not in the Labour Party’s manifesto. I do not think absence of a reference in a manifesto proves that this is undemocratic and I would be surprised if students of Burke were to think that.

Secondly, the noble Lord, Lord Dear, argued that the Public Bill Committee was skewed in its membership and that its discussions were curtailed. Possibly—I do not know—but it seems a very odd reaction to such a criticism to say that we should be denied any Committee stage. If the Committee stage was too short in the Commons, let us put that right in this place. Thirdly, he argued that the public consultation was inadequate or in some way defective. I do not know about that but let us explore that in our detailed discussions on this Bill. Fourthly, he said that Members of Parliament were under pressure from the party hierarchies and therefore it was not truly a free vote, to which I can say only that Members of Parliament, like Members of this House, are grown-ups. They make up their own minds.

Let us remember that in the other place they face the electorate back in their constituencies and if they are thought to have got it wrong they may pay for that and realising that may affect how they vote. It comes pretty oddly from this place, where we are not exactly paragons of democratic accountability, to accuse the other place of an undemocratic procedure in this case. I very much hope that the noble Lord, Lord Dear, will withdraw his amendment or, if he does not, that the House will not support it.

21:42
Earl of Shrewsbury Portrait The Earl of Shrewsbury
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My Lords, like many of your Lordships, I am thoroughly unhappy with this Bill. Bearing in mind the large number of speakers on this matter, I shall be brief. In my 32 years in your Lordships’ House—I am sure I do not look that old—I have never experienced such a large mailbag as I have had on this Bill, not even for the Hunting Bill. I have had only nine letters in favour of this Bill but those letters were written with sincerity—I have no doubt in believing that. Each one was completely different and had a balanced and lucid argument. The letters against the Bill were nearly all virtually identical.

I really have struggled with this issue. At first I would have followed the noble Lord, Lord Dear, into the Lobby, should he press his amendment to a vote, but two further matters occurred to me. First, your Lordships sit here in this highly privileged position to hold the Government to account, to look at legislation and to improve it where necessary, bearing in mind always that the convention is that the elected House—the other place—should prevail over the unelected Chamber. This is a matter of considerable constitutional importance. It is the way in which we make democratic decisions. I have personal experience of wrecking two Bills at Second Reading—it was enormous fun—the Boxing Bill and the late Lord Diamond’s Peerage Bill, but they were both Private Members’ Bills and they were fair game. This is a major government Bill. We should at least give it a Second Reading. If we do not, we will deserve to be targeted by the critics and opponents of our very existence and that of this House. Our task is to improve this Bill, no matter how imperfect and unsatisfactory we believe it to be, by amendment and balanced argument on its passage through this House.

Secondly, I have listened to the views of many young people, the majority of whom I believe do not consider this Bill to be an issue. On the television programme “Question Time” recently, support for this Bill by young people was clearly demonstrated. Those young people are the next generation. We should listen to them and take their views into account. They have a completely different view of homosexuality and a high degree of toleration for what to many of my age is the elephant in the room. I can quite understand homosexuality as a fact of everyday life, but I find it extremely difficult to accept it as the norm. That is the way that I think—that is me. However, an awful lot of water has flowed under the bridge in the many years that I have been privileged to spend in your Lordships’ House, and things in society have changed vastly over that time. All these matters will continue to change. That is life—that is the way that things go on.

In opposing this Bill, I believe that I should be legislating for the lives of those of a younger generation who will have to live with the consequences of my actions, and I do not feel comfortable with that. However, when the Prime Minister and Mr Clegg refer to this Bill as being a move to create equality, I really object. Heterosexual couples who choose not to be married to one another for their own reasons should be able to join in a civil partnership, should they so wish, and as civil partners they should be able to enjoy all the same financial and legal benefits as those in same-sex civil partnerships or, should this Bill become law, same-sex marriages. That would be equality.

Finally, I have the utmost respect for the noble Lord, Lord Dear, and I congratulate him on his tenacity. However, I can neither support nor oppose him, and I shall abstain on his amendment.

21:46
Baroness Mallalieu Portrait Baroness Mallalieu
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My Lords, to be given one of the dog watch slots—number 57—in a debate in this House is usually some form of Whip’s punishment. However, tonight it has been a privilege and a pleasure to listen to superb speeches from all sides of the House and on both sides of the debate, and to arguments that cross parties, religion, and sometimes confound pre-held expectations of allegiance. I suspect the reason for that unpredictability is that every one of us in this House has formed a very personal view of both marriage and homosexuality, forged sometimes by religious beliefs or by upbringing, but certainly by our own personal experiences.

We have lived through some quite extraordinary times. The way our society treats homosexual people has changed dramatically in the course of one generation, from being a crime to be punished with hard labour in prison; through discrimination, social ostracism, victimisation and, most recently, ridicule; to a point today where—I think the noble Earl, Lord Shrewsbury, put his finger on it—to the next generation homosexuals are not branded as “queers” but are seen as people who simply have one natural variant of the human condition. It is not surprising that many of those who have lived through such rapid change are a little “off the pace”, as they say in horseracing. Bringing up the rear at present, I am sorry to say, is the Church of England.

Attitudes to marriage, too, have changed rapidly, and not always with consequences for the worst. Like it or not, today many people choose to live together and have children without it. Yet when did we last hear a child described as “illegitimate”, as always used to be the case in my mother’s generation? That must be a good thing. Like other noble Lords, I have had many e-mails urging me not to support this Bill, as it will change or even destroy marriage as we know it. However, it has changed and is changing, even in the Church of England. Indeed, it has to change to meet the needs of a changing society or it will simply become an irrelevance to more and more people.

Surely what is important is that our society is strengthened by more stable and loving relationships and the children brought up in them, who have the best start in life. Almost every relationship, unless you are incredibly fortunate, will hit choppy water or even the odd rock at some point. Marriage provides the strongest glue there is to hold two people together when that happens. Surely those couples who care enough to want to marry should be allowed to do so whatever their sex. Why should they not be permitted to use the strongest glue there is—the superglue—rather than being told to make do with the paste and water of a civil partnership? As the noble and right reverend Lord, Lord Harries of Pentregarth, said, marriage is in effect regarded as the gold standard and at the moment we deny it to a section of our people.

To those who say that it was not properly scrutinised in the other place, my answer is: so what is new? If we rejected every Bill in that category almost no legislation would pass through this House. It will get proper scrutiny here. If there are concerns, for example, about people who may lose their jobs, they will be explored and, I hope, corrected if that worry is correct. Some of the letters I have had say that it is not fair on the children. I seem to remember the same argument was once applied to mixed-race marriages and to Catholics marrying Protestants and Jews marrying outside their faith—but no longer. The next generation has adapted to change and to variations on the traditional two married parents of opposite sex model.

I have had people say in letters, e-mails and, indeed, in this House that homosexuals cannot consummate a marriage; marriage is meant for the creation of children; homosexuals cannot commit adultery. Those are the strains of objections voiced by a number of your Lordships, including the noble Lord, Lord Tebbit. We do not stop women over childbearing age or some disabled people from marrying, or those who cannot have or do not want children—of course not. As the right reverend Prelate the Bishop of Leicester conceded, such people are no less married—so why not homosexuals?

It is said that there is no demand for the Bill. It is true that its provisions will affect a relatively small number of our total population, but it corrects an unfairness for those people and rights a wrong that has gone on for too long. Frankly, whether it is two or 2 million who are involved, it matters not if it is the right thing to do. I believe that this Bill reflects a change in social attitudes whose time has come. I pay tribute to our much criticised Prime Minister, who has stuck to his guns on the Bill when it must have been very politically difficult for him. I am particularly sorry to have to oppose the noble Lord, Lord Dear, who has led us to some famous victories in the House. I regret that on this one, I believe that he is wrong.

Nobody is going to be forced by the Bill to contract, conduct or argue the case for a same-sex marriage. If an invitation should come through the door, any of your Lordships is free to reply, “Thank you but no thank you”. It is time to give homosexuals the same choices as heterosexuals and the same benefits in relation to civil marriage. It is time for us to stop putting them in a separate category and tolerating them. They deserve equality because they are equal. In five years’ time, I believe we will look back on this debate with incredulity at the objections that were raised and regard the time when homosexuals were not permitted to marry in the same way as today we view that long-gone time when—no doubt well meaning—teachers used a ruler to slap the left wrist of the left-handed child learning to write.

21:53
Lord Cobbold Portrait Lord Cobbold
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My Lords, marriage between a man and a woman has been the bedrock of society over the centuries and has proved to be a tried and trusted way of living and rearing children. The Bill that we are debating threatens the sanctity of marriage by the forced acceptance of same-sex couples. There are basically two levels to the traditional definition of marriage: the secular civil partnership and the religious commitment. The civil partnership is the practical relationship between two individuals who have decided that they wish to live together. The religious and spiritual part of the marriage contract is defined by the particular religion that is involved.

The civil partnership element of marriage rights is readily available to same-sex couples. The question underlying this debate is whether the state has the right to require religions to accept same-sex couples. The Bill before us, in its 52 pages, argues that it does—but I am one of the many speakers in this debate who do not accept that the Government have the automatic right, and who therefore believe that the Bill should be rejected. I therefore will be supporting the amendment proposed by the noble Lord, Lord Dear.

21:55
Baroness Berridge Portrait Baroness Berridge
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My Lords, this legislation brings into sharp focus the role of another important institution in our society—the state. It is an actor on this stage, promoting a view of marriage, so it has a high duty to get the statutory framework correct so that it preserves or actually encourages dissenting views in the national and local public square. For many years, the public square did not allow debate on immigration; any dissenters were racists and shut out. Such silence brings, at best, outward conformity, and led, I think, to more people walking past my flat on Saturday for the EDL than would have done if there had been a free debate. Any Member’s inbox will show how divisive this issue has become, and how strongly held the views are, but the public square is again in danger of being shut down. Dissenters are often automatically bigots or homophobic—or like the state of Alabama making Rosa Parks give up her seat on the bus. That is a false analogy—and that racism label again, but in a way that it would take more than a soundbite to distinguish.

Many gay people do not support same sex marriage. Are they homophobic? It is interesting to look at the exchanges in the other place between two highly respected Members of Parliament, Mr Burrowes and Mr Lammy, with Mr Lammy using a slave owner analogy and the ultimately mild-mannered Mr Burrowes saying that this argument was pernicious, offensive and playing the race card. Clearly, we cannot leave the average bobby to police this on our streets without further guidance, so this House will need to consider carefully amendments on free speech that the Government conceded were needed in the other place. Until these concessions, the Government argued that this Bill merely concerns the conduct of the ceremony itself. But legislation affects culture, debate and even atmosphere. Section 28 of the Local Government Act reflected a state view on marriage, and the gay community complained that the effect went much further than the words of the statute—and so it could be with this statute.

The state should have a view, but not a required orthodoxy. Healthy societies have pluralistic public spaces, and I have yet to come across a gay person who disagrees with this. We need to disagree without being disagreeable. Whether this statute adequately protects religious freedoms brings up some of the interesting legal questions at the cutting edge of jurisprudence, and lawyers are lining up on either side of this debate. The protections must work, because religious people are not going away. I hope that I have been wrong in detecting something of an attitude that soon the Church of England and other religious groups will get with the programme and soon just join in with all the Bill. As the noble Lord, Lord Alderdice, so eloquently stated, we cannot often predict the winds of change. This may well prove to be a moment when we look back and see that the Anglican Church put its stake in the sand in relation to marriage, and we do not know where the views will end up in 40 years’ time. I want to put on public record that I appreciate the stance that the Church of England has taken.

It is interesting to note that western Europe has been out of step over the past 50 years with the rest of the globe. The rest of the globe got seriously more religious. If South Korea can go from about 0% Christians to more than 50% Christians in 100 years, and I look at the renewed leadership of the Anglican Church, I am optimistic. But even if the noble Lord, Lord Pannick, is correct that the Strasbourg court will not compel a religious organisation to conduct a same-sex marriage, is that all religious groups can hope for—mere non-compulsion? If a small temple is denied local authority grants for its youth group due to its views on same-sex marriage, it should switch money from the food bank to legal fees to sue for direct or indirect discrimination. No, my Lords. This House should put in the Bill the onus on the state not to treat people detrimentally or less favourably and not leave it to the citizen or charities to have to go to court.

Finally, I will speak about my role here today. The complaint that this Bill was not in a manifesto has caused me to remember that the public did not vote for me; and at this moment I am actually grateful, standing as a Conservative, for that fact. I cannot be held to account by those who support the Bill. The people’s representatives in the other place had a free vote and voted overwhelmingly for this Bill. It badly needs amending. It needs this Chamber to do what it does best and improve and scrutinise legislation. The religious groups are not, I am afraid, generally content with this Bill, as my noble friend the Minister stated. The Catholics, black-led churches and other faiths, who believe that now they could be in an even more vulnerable position than the Anglican Church, need us to do our job. If this vote defeats the Bill, it will probably return next year, and we risk the Commons using the Parliament Act. In those circumstances this flawed Bill, as it stands now, would become law. Do I want to vote against this Bill? Yes. Should I? No.

22:01
Lord Bishop of Exeter Portrait The Lord Bishop of Exeter
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My Lords, the noble Lord, Lord Jenkin, observed that, from a Christian perspective, God can be present in every true love. I absolutely agree. But marriage is about more than love. Then we are told that the issues at stake here are equal rights, justice and social inclusion. Certainly, these are things about which Governments may legislate. Indeed, if they wish to support particular kinds of relationship by according them tax and pension benefits, that must be a matter for normal political debate. However, in this Bill the Government have chosen to proceed not by addressing real, material or legal inequalities but by redefining the key concept of marriage and its meaning.

When Parliament legislated for civil partnerships, society gave legal and institutional expression to what many hold to be true—that gay and lesbian people should have the same rights to formalise their commitment to each other and enjoy the social and legal benefits that opposite-sex couples have. If there are matters in that legal provision that are inadequate or missing, rights that have not been conferred or legitimate aspirations not recognised, then that Act should be amended, and that would have my general support. However, the battleground that the Government have chosen is not material but conceptual. The argument is driven by emotional rather than logical considerations, which is why it is so difficult to debate. No matter how loud the protestations to the contrary, at stake is a shared and common understanding of the concept of marriage, together with the consequences—intended and unintended—to which they may lead.

We are told that the scope of marriage has evolved. It has, but “scope”, my Lords, not fundamental nature. The scope, as shown by the noble Lord, Lord Pannick, has been varied through history with regard to age of consent, number of permitted spouses, termination, what is allowed or prohibited and restrictions on members of the same family group. What has remained constant in all times and all cultures until very recently is an understanding of marriage founded on the premise of sexual differentiation and the resulting generic potential for procreation. It is with this unchanging basis that marriage has taken otherwise different forms.

The Christian tradition, in an understanding that has hitherto also informed English law, speaks of sexual union, the sharing of worldly goods, the help and comfort of one for the other, and the procreation and nurture of children. On their own, none has been understood to constitute marriage. Indeed, each of these worthy objectives may be found embodied in other legal arrangements. An agreement to share goods may be a valid contract, but it is not marriage; nor does sexual union of itself constitute marriage. Family units with children exist and have always existed outside the bonds that are recognised as marriage. There are many forms of human relationship for the support and encouragement of mutual love and comfort that are not marriage. Yet now, a commitment to love and be loved, arbitrarily confined to just two non-related human beings, is to be the sole basis for the married state.

Many of those advocating this development have sought to portray any opposition to it as a faith issue. It is not; it is a societal one. Shorn of the element of complementarity of genders, all marriage will be redefined, with consequences for all. Until now, common to the definition of marriage accepted by church and state has been an understanding that a marriage is not completed in the marriage ceremony, wherever that may take place. Marriage must also be consummated—completed—in the sexual union of male and female, and is voidable if it has not been consummated. However, with the marriage of two people of the same sex, the proposed law says that these provisions do not apply. Where is the equality in that?

Similarly, the current definition of adultery will remain unchanged—sexual intercourse outside marriage with a person of another sex—which, again, does not apply to marriages between those of the same sex. Where is the equality in that? Therefore, a Bill predicated on the claim that marriage should be equal and gender is irrelevant has to recognise that this logic breaks down when confronted by the reality of marriage as hitherto universally understood. However, the proposals contain their own logic, which is that over time the historic understanding of marriage must in law cease to exist. Despite this huge difficulty, I have still tried to understand the motivation for this radical reform. Why was civil partnership insufficient? Such partnerships already allow couples to share the legal benefits of marriage and, if there are remaining differences, it is easy to amend the law. I struggle to hear what is missing. I do not underestimate the power of law to change attitudes, but the question is, which law, and what is missing that would make such a difference? A civil partnership is an act of registration, simply recording in law what is already deemed to exist, whereas marriage, in law, is seen as a “performative act”. It brings something new into being, something that until the exchange of vows and consummation did not exist. A desire for such a performative act, a ritual, and an opportunity publicly to commit to mutual love seemed to be aspirations which I could appreciate, and so the law on civil partnership could be changed without depriving marriage of its single, central meaning.

However, Clause 9 of the Bill provides for an existing civil partnership to be transformed into a “marriage” simply by signing a register. If one marriage is simply a matter of civil registration without vows, performative acts or criteria for consummation, no provision concerning adultery, or presumption of parenthood, and if the word “marriage” is to have a single coherent meaning, then for every other marriage it must be the same. Marriage is now civil partnership by another name. A basic understanding of marriage, in law, will have irrevocably changed, and with one reality now bearing two different labels; or we will have legislated into being two very different realities, but confusingly bearing the same name. If that happens, it raises huge issues about social cohesion, and a move away from common shared values. I remain profoundly uncertain about the legal position not just as regards the personal views of teachers but as regards what may be taught in church schools. Are they to be allowed to teach a traditional understanding of marriage, one which until now church and state have shared, while in non-church schools a different understanding is to be taught? If so, what will be the implications for social cohesion as a result? Or will church schools be forced by law to conform to a new understanding which has no roots in the doctrines of any of the major faith communities, which then sets an extraordinary precedent for the state’s power to determine articles of faith, unparalleled outside the experience in history of repressive ideological states of the extreme right and left?

Further, what is to prevent other multiple understandings, including recognition of polyamorous, polygamous and polyandrous relationships, being legislated for in due course? That is the internal logic of tackling a legitimate issue of inclusion through the redefinition of concepts rather than addressing any real inequalities that may exist.

There is a quotation from Margaret Thatcher in Charles Moore’s biography:

“Equity is a very much better principle than equality”.

In conformity with that principle, my hope is that the Government will withdraw the Bill, full of so many seen and unforeseen consequences for the fabric of our society, and start again to produce something which truly does address the really important issues that have been raised in this debate.

22:10
Lady Saltoun of Abernethy Portrait Lady Saltoun of Abernethy
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My Lords, 60 years ago, when I was 12 years old, I was prepared for confirmation. In those days, confirmation was taken very seriously. We had to learn the whole catechism by heart and be able to answer the questions in it correctly, in the words of the Book of Common Prayer, not just in our own words. We learnt about the sacraments and what a sacrament was: an outward and visible sign of an inward and spiritual grace. We learned that the two most important sacraments necessary for salvation, ordained by Christ himself, were baptism and holy communion. However, there were five other sacraments, not mentioned in the catechism but listed in article 25 of the 39 articles of religion, of which the church seems to have forgotten the existence. They are: confirmation, penance, holy orders, holy matrimony and unction. All these five visible ceremonies have a spiritual dimension.

I contend that it is not within the remit of government or of the European Union to interfere with the spiritual concerns of the church. I bounced these beliefs off my friendly local bishop and he agreed with me, but I am not sure whether the right reverend Prelates in your Lordships’ House do or not.

22:12
Earl of Courtown Portrait The Earl of Courtown
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As many noble Lords have pointed out, the marriage Bill is highly emotive and induces strong feelings. I make no attempt to synthesize the varying views of this House; I rise to make one simple point. By voting in favour of the Bill we would be gaining something while losing nothing. That is to say, it would be a net gain.

What would we be losing? I urge noble Lords to consider, for a moment, the proposition that some who oppose the Bill have put forward. They say that the institution of marriage would be undermined. They say that by allowing two gay people to marry marriage would somehow no longer be sacrosanct. They infer that their marriage would no longer mean what it once did. I ask noble Lords to consider how their marriage would be undermined, subverted or devalued simply by allowing two members of the same sex the privilege that they themselves enjoy. I have come to the conclusion that my marriage would be just as special the day before this Bill is passed as it would be on the day after it was passed. I suggest that as I was married in the eyes of the Lord, I would remain thus. To reiterate the point, those of us married in traditional marriages would not lose anything at all.

I would like to consider what the country would gain by passing the Bill. As a Conservative, I believe passionately in the institution of marriage. Would we not want to encourage as many people as possible to enter into such a stable institution? Bruce Anderson, on Conservative Home, describes the family as “social penicillin” and an establishment that can,

“cure so many social diseases”.

In a crude comparison of married people and their single counterparts, we can see lower levels of disease, morbidity and mortality, healthier lifestyle choices and lower levels of crime and anti-social behaviour. The more people who seek to take this social penicillin, straight or gay, the better. Put simply, gay people would gain something that was previously denied them, and society would lose nothing.

I will conclude on a point made by my friend Daniel Hannan. He reminds us of the issues that have come before this House over the past 20 years: Section 28, lowering the age of consent, gay adoption and civil partnerships, among others. These issues, bitterly opposed by some at the time, have become widely accepted today. At those difficult moments, we as a House recognised the need for change. We accepted that our understandings of tradition no longer resonated with the modern world. We therefore voted to change those understandings to better reflect the generations growing up beneath us. As we did so, the new settlement became the new tradition. That is to say, the necessities of one generation became the traditions of the next.

It is right that we pay particular attention to what is being said outside this Chamber. We should listen especially to the young, the next generation. We should listen to their opinions and views about same-sex marriage. The young support the Bill in overwhelming numbers. I urge noble Lords to bear this in mind in the Division Lobbies tomorrow and allow the next generation not to reject the traditions of yesteryear but to build the traditions of the future. In doing so, we would be voting to allow the gay community—here I echo the Prime Minister—to walk that little bit taller in the world.

22:17
Baroness Gould of Potternewton Portrait Baroness Gould of Potternewton
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My Lords, I support noble Lords who have spoken in favour of the Bill, but I wish to speak about the small section of it that affects trans people, which has not been covered sufficiently this evening. I should declare an interest as chair of the parliamentary group on transgender issues.

Transgender people suffer not homophobia but transphobia, which in many ways is more insidious and difficult to deal with than homophobia. I will give a devastating example: the case of Lucy Meadows, a trans primary school teacher who committed suicide after being pilloried and told by some of the parents and the press in particular that because she had transed she was not fit to be a teacher. The coroner told the gathered reporters, “And to you the press, I say, ‘Shame, shame on all of you’”. He was absolutely right.

However, that is only one example of the discrimination that many trans people experience because of the fear of supposed difference and the bigotry expressed against a person who should be recognised and treated respectfully and equally. Two aspects of the Bill correct some of the current anomalies and accept that recognition. It is welcome that the legislation provides for married trans people who wish to apply for gender recognition. It removes the requirement for them to be single at the point of gender recognition and thereby removes the obligation to dissolve their existing marriage or civil partnership. Equally welcome is the Government’s concession on spouse’s survivor pensions, which will ensure that no ongoing financial penalty will be incurred should a trans person in an existing marriage gain gender recognition.

There are, however, other fundamental issues that continue to present major concerns for trans people in existing marriages. Schedule 5 to the Bill is designed to amend the Gender Recognition Act 2004, so that the requirement for an applicant to have dissolved any existing marriage is removed. The effect is that that the trans person’s spouse must grant consent for the trans person’s gender recognition. If that spouse refuses to give that consent or cannot be contacted, the trans person cannot gain gender recognition without ending the marriage. That seems unfair and surely a discrimination that has to be removed. It has been said that that is not a veto. One might not use that word but, to me, it is a way of saying no. I am not quite sure what the difference between “veto” and “no” is. It has also been said that it only happens very rarely, but if it only happens to one person, it is wrong.

Many events can fundamentally alter a marriage, including domestic arrangements such as buying a new home, having children, applying for distant jobs or medical issues. None of these requires formal spousal consent before they can commence. The Government argue that it would be unfair to remove the right of every non-trans spouse to have a say in the future of their marriage before gender recognition takes place. However, as Mike Freer, a Conservative MP, said in the Commons,

“it is bizarre that a man or woman who is transitioning can have surgery and change their name but cannot have a gender realignment certificate without spousal approval”.—[Official Report, Commons, 21/5/13; col. 1127.]

A Bill designed to allow same-sex marriages and to treat them in the same way as other marriages is, in these cases, maintaining a difference between opposite-sex and same-sex marriages. This anomaly will, I am sure, be discussed in more detail in Committee.

Another anomaly which we should discuss further relates to Section 12(h) of the Matrimonial Causes Act 1973, which allows for the annulment of a marriage if someone discovers that their spouse has a gender recognition certificate but did not tell them beforehand. The response to the suggestion that this should be removed is, “Get out of the marriage quickly and at low cost”. Unfortunately, it is not that simple. The courts would have to rely on one person’s word against another’s and, as the section applies only to those who already have a gender recognition certificate, the outcome could be that someone could decide not to apply for one, with the consequences that follow from not doing so. These are two anomalies which we need to sort out when we come to Committee.

Overall, however, allowing same-sex couples to marry will remove yet another distinction between lesbian, gay, bisexual and transgender people and those who are straight. This will reduce stigma and take another step forward on the road towards LGBT people receiving their full rights. I am proud that I have been able to play some part in this in the past and I shall certainly vote for the Bill.

22:23
Lord Elton Portrait Lord Elton
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My Lords, like all noble Lords, I have received a vast amount of mail on this Bill and, because I sit on this side of the House, it is heavily skewed against the Bill. I suspect that the other side of the House has been fed vast numbers of letters in favour of the Bill. Why should it be that people preach to those whom they believe are already converted? Surely we ought to swap our mail to get a proper view of what public opinion is. I have had some mail and some e-mails in favour of the Bill. I would say to my noble friend Lord Dobbs that I recognise the age distinction, but the number of e-mails that I received for and against was very nearly even, so I think that there are some at least middle-aged people who share my views.

I am wasting time; what I want to come to is this. I was convinced by those letters and e-mails of the genuineness of the hurt felt by the homosexual minority in our society—a hurt which I understand is real. Of course, being a minority always generates tensions between the minority and the surrounding majority in both directions. The Government have a policy of social cohesion. Despite that, they went to their unsuspected ivory tower, looked out of the window, saw the great misty plain of social, political and religious affairs and said, “There is trouble there”. They then went back in again and disappeared from our view, and we imagined that they were making a strategic plan to solve the problem. Very soon afterwards, they emerged from the door at the bottom of the tower and said, “We’re going to do something about this”, and hope sprang in our breasts. The task before them was to reconcile the minority and the majority so that there should be equal and mutual trust, confidence and respect between the majority and the minority—between homosexuals and heterosexuals.

However, every single thing that the leaders have done since then seems to have been very cleverly calculated to stoke up the anxieties and mistrust on both sides. From that misty view from which they deduced that there was a problem to solve, did they then go out and inquire or have committees inquire into the situation as it really was and produce reports before they started to legislate? No; they came out with a Bill. There was predictable uproar because there was no consultation. My noble friend Lord Mawhinney dealt very ably with that, so I need not repeat it, but I should like to add one grace note to it. In the consultation that they have had, they have studiously avoided certain groups, as I understand from the director of the One People Commission of minority churches. He says:

“We note with sadness that not a single black or Asian representative was invited to give evidence to the Commons Committee that looked at the Bill”.

Even at that late stage, they had not woken up to the need to allay the fears of the people whose fears it is their business to allay. As a result, having started with one offended and anxious minority, they finished up with several dozen simply by ignoring the others.

Your Lordships have had plenty of theology this evening and do not need any more. We have heard it from real theologians and I have to say that I am carried and persuaded by them, but what really infuriates me is that the Bill has been brought forward in a way that has almost certainly doomed it to failure. The legislation may go into place but suspicions and anxieties have been stoked up and increased by the way in which all this has been done. There is a way in which we can go back to the beginning, as the right reverend Prelate the Bishop of Exeter suggested we should, and look for another route, and that is to follow the noble Lord, Lord Dear, into the Content Lobby on his amendment. That may well trigger the Parliament Act but the result would be that in the next Session the Bill would come back to us and it would be open to us either to reject it or to pass it and take it through Committee. We would thus give the Government the time in between to do some real research and real diplomacy. They could make some real progress towards a harmonious solution and perhaps give the Church of England and other churches time to move a little as well. I am with the noble Lord.

22:30
Lord Phillips of Sudbury Portrait Lord Phillips of Sudbury
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My Lords, I am pathetically open-minded about many aspects of this Bill. I have studied with great care the arguments put forward on both sides of the debate, although you cannot really talk in terms of a single debate with such a complex measure. I have been immensely impressed, as I am sure we all have, by the quality of today’s debate, and the sincerity of the contributions made by all who have spoken. I have been particularly touched and moved, intellectually and emotionally, by the personal testimonies of my noble friend Lady Barker and the noble Lords, Lord Smith of Finsbury, Lord Browne of Madingley and Lord Black of Brentwood. I confess that my contribution tonight is not going to be sharp-edged and decisive, although I do have one proposal to make. I am going to speak very much in the hope that there may be reactions from your Lordships to it.

First, however, I have to join others in saying that although the Prime Minister has shown real courage in bringing forward this Bill, the way in which it has been brought forward and the conduct so far have been woefully inadequate. If there was ever a measure in which the general public should have felt part of our debates and our deliberations, this is it. This is not our issue. This is pre-eminently an issue for all the people of this country, whatever their views, whatever their background, wherever they live, whatever they do. There has been a lamentable failure to engage them. As the noble Lord, Lord Dear, said in his opening speech, the way in which responses have been measured, with petitions, however large—he mentioned one of half a million signatories—being treated as a single contribution really beggars belief, and one wonders why it was done.

In the same way, the gauging of public opinion by opinion polls is not sufficient. We have not had a deliberative document, a Green Paper—call it what you will—that can be distributed far and wide in order to elicit the mature views of our fellow citizens. I am a little suspicious of the figures that have emerged through the opinion polls, although I accept—and indeed it is my point—that most young people tend to think that this is a no-brainer, that of course those of the same sex should be able to marry; but it is possible to say that young people are not so much tolerant as indifferent to some of these issues. The sexual mores of our very young adults and late teenagers are staggeringly different from those which prevailed when most of us were their age. I suspect that many of those young people would say off the top of their heads, “Of course, marriage for everybody”. When they actually become married themselves they will mature into a different mindset, but that is by the bye.

I have to say to the noble Lord, Lord Dear, that I cannot accept his proposal, particularly in terms of the constitutional arrangements with the other place. I do not think it would be right for us to seek to jettison this Bill at this stage. However, if we proceed as we are presently doing, there is the risk of a backlash. My noble friend Lord Alderdice has referred to this. There is a real risk that of the very many—I would say millions—of our fellow citizens who feel strongly about this measure, most of them feel strongly against the change. One cannot judge this by one’s own mailbag, but from the comments made in the debate, it seems that most noble Lords have received a disproportionately large number of letters and e-mails from those who are very concerned about what we are up to.

I do not want that. I would rather we emerge at the end of this process with an Act of Parliament that has general consent and does not risk a backlash in the manner seen in France or anywhere else. It should heal and reconcile the differences of opinion and, in particular, the extremes of opinion. There is some homophobia in our society, although thank goodness it is vastly less than we experienced in our youth. At the other end there is, I fear, a sort of phobia against those who do not take a totally liberal view of the homosexual position.

I put forward my proposal tentatively and in a genuine spirit of reconciliation. We should think of using a different word or title for a homosexual union from that of a heterosexual union; in effect, not to call the union of a same-sex couple a marriage but, I suggest—it is only a suggestion—an espousal. The noun that derives from that word is spouse, which is gender-neutral. I think that it would lance a boil in the public mind as to what we are seeking to do, bearing in mind that everything else in the Bill will remain unchanged. All the rights will be the same.

I am tempted to say that those who talk about equality of esteem, as I do—my goodness, if there is one thing that I live by in my politics, it is the equal worth of every human being and the equal esteem in which they have the right to be held—that to some extent it is a misnomer to talk about a same-sex union in exactly the same way as that of a different-sex union. That is because of two fundamental, factual, inescapable and ineluctable differences which have been referred to by other noble Lords. The first is the nature of the union and the second is the procreative potential. It is no good saying that lots of people who get married are too old to have children, do not want children or whatever. The fact of the matter is that most people who marry seek to have children and do so. Same-sex couples in their civil marriages cannot have children except, of course, through adoption, surrogacy or whatever. That is fundamentally different. It is not better or worse but it is fundamentally different. I do not see why we should not face that. It is a form of honesty that would inure to the benefit of same-sex couples in the long run.

That is my late-night thought. I hope that noble Lords will give me some of theirs before Committee so that I can decide whether or not to table an amendment.

22:38
Lord Flight Portrait Lord Flight
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My Lords, I feel honoured to have drawn the short straw of being the last speaker this evening, and I thank all noble Lords who are still here for being still here. I did not intend to speak because it seemed that virtually everything there is to be said was being said or was going to be said by someone else. However, I was faced with an enormous volume of letters and e-mails, which I spent a good part of the weekend reading through. I picked up from them some thoughts about the territory which I had not focused on before, and some rather important points were raised.

If there is one single point on which I think this Bill should not proceed, it is that the nation is absolutely divided. I do not know whether it is 70% one way or the other or if it is 50/50, but it is clear that, in the main, the senior part of the country believes in the traditional role of marriage and wishes to keep it, while a lot of younger people think that it is all a load of hooey and ask, basically, why anyone should get married. There is an absolute divide, and in this sort of territory I believe that it is a mistake to push through legislation until there is some form of consensus.

My noble friend Lord Deben referred amusingly to the Gilbert and Sullivan line:

“He shall prick that annual blister,

Marriage with deceased wife’s sister”.

I am not suggesting that it should take 50 years, but it has been a sensible British tradition in social matters to legislate and change gradually, and so keep up with public opinion. In 20 years’ time, when many of us are dead and gone, there may be some form of consensus in the majority of the country—or even before then. It is a great mistake to railroad this extremely unsatisfactory legislation through. The right reverend Prelate the Bishop of Exeter brilliantly pointed out a lot of what is wrong with it. There are other issues that are profoundly wrong and the consultation process was also clearly less than satisfactory.

This is classic territory where it is not unreasonable for the House of Lords to exercise its reserve powers in delaying such legislation. Our job is to scrutinise and occasionally, when necessary, to be the upholder of public opinion. Public opinion is not at all happy with this legislation as it presently stands. Many have made the point that there was no electoral mandate, but it was rather the reverse: the Prime Minister actually stated in a pre-election television interview that he would not be introducing same-sex marriage, and so gave a commitment to the contrary.

As others have pointed out, I regret this issue of a 500,000-name petition being treated as a single vote. It was telling that there was not a single black or Asian representative invited to give evidence to the Commons committee, and their communities are often among the most religious in the country. Many may have noticed over the weekend that all the faiths came together—not just the Anglican church, but the Catholic, Muslim, Jewish, Hindu, Sikh and Buddhist faiths sent a letter with 53 signatures to the Prime Minister urging caution and that he should think again before he pushed through this legislation to rewrite the meaning of marriage. In the world of faith, this is not just an Anglican issue; it is fundamental for all faiths, going back into the mists of history, that whether one likes it or not marriage is essentially about a man and woman getting together to have children and to bring them up as securely as possible. Just redefining, like that, what marriage means will understandably upset a large number of people.

The knock-on effects of the Bill have also not been adequately considered. If the Bill proceeds, the legal status of gay marriage will be different from that of heterosexual marriage, as the most reverend Primate the Archbishop of Canterbury and the right reverend Prelate the Bishop of Exeter have pointed out. It is also extraordinary that the proposed legislation will not give equality to heterosexual couples wanting a civil partnership, as many others have pointed out.

Today’s debate has made it clear that the Bill needs more robust protection of religious liberty. The Adrian Smith Trafford Housing Trust case was a disgrace, but it illustrated what could happen if the Bill becomes law, particularly for those in the public sector and the area of teaching. John Bowers QC has opined that the Bill, combined with the existing law on sex and relationships and the public sector duty, would create a duty to promote and endorse such a new definition of marriage, and that those who expressed their religious views to the contrary would be put on the wrong side of the law. Moreover, a teacher declining to teach same-sex marriage could be disciplined. This is entirely unsatisfactory and not an adequate protection of religious liberty.

Where has all this come from? The impetus for redefining the meaning of marriage is not largely from the gay community, many of whom are perfectly happy with civil partnership as crafted a few years ago. It does not come from those with great social concerns either. I think it is the political agenda to abolish all legal differences between the sexes. I challenge the desirability of this agenda, as a point of principle.

Many in this House may remember that back in 2004, when civil partnerships were introduced, the noble Lord, Lord Filkin, as spokesman for the Labour Government’s then Department of Constitutional Affairs, summarised that Government’s position. He said that the “concept” of homosexual marriage,

“is a contradiction in terms, which is why our position is utterly clear: we are against it, and do not intend to promote it or allow it to take place”.—[Official Report, 11/2/04; col. 1094-95.]

I believe that that remains the view of at least half the country and, as I have said, to railroad through the legislation as it stands, with its legal imperfections, would be exceedingly unwise. For that reason, I will be supporting the Motion of the noble Lord, Lord Dear.

Debate adjourned until tomorrow.
House adjourned at 10.46 pm.