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(4 years, 5 months ago)
Grand CommitteeMy Lords, if there is a Division in the Chamber while we are sitting, the Committee will adjourn as soon as the Division Bells are rung and resume after 10 minutes.
Clause 118: Qualifying pensions dashboard service
Amendment 38
My Lords, Amendment 38 in my name endeavours to fulfil the objectives of the pensions dashboard by ensuring people have access to all their pension entitlements. At the moment, they will be able to access entitlements under schemes only in their own name; they will not be able to access information about entitlements they may have because their husband, wife or partner has named them as a beneficiary under another scheme. More and more couples are both at work, and most pension schemes enable a beneficiary to provide for a surviving spouse. My amendment would enable a named beneficiary to access a dashboard where they had an interest. Without that information, that beneficiary will not know whether they have made adequate provision for their old age, which is a primary objective of the dashboard.
There may be other ways of achieving this objective. When a policy is taken out, beneficiaries could be sent a copy; I do not think this happens at the moment. They could be sent an annual statement, as the main policyholder is, or the main policyholder could be given the option of ticking a box so that beneficiaries can access the relevant dashboard with their consent. The point made in the amendment is a simple one: if the dashboard is to give people a complete picture so they can make informed judgments, they need to have access to this relevant information.
Amendment 43, supported by my noble friend Lord Flight, and Amendment 44 have a similar objective in enabling someone to see whether they have made enough provision for their old age by including relevant assets that can provide a pension income on the dashboard. The helpful policy brief says on page 45:
“Putting individuals in control of their data, dashboards should support engagement in pensions and planning for retirement.”
Planning for retirement involves more than pensions. Each Sunday, the Money section of the Sunday Times has a “Fame and Fortune” feature, in which there is a standard question:
“What’s better for retirement—property or pension?”
Yesterday, the Olympic medallist Sharron Davies said “Property.” The question makes the point that, for many people, there is a choice of how to provide for retirement. This amendment is a permissive one, which would enable a pension provider with a dashboard to include information on the equity locked up in someone’s home.
For millions of people, the equity in their home is worth more than their pension pot. Increasingly, that equity can be and is unlocked to provide an income stream in retirement. According to the ONS, we have £14.6 trillion in wealth—perhaps a little less following the slump on the stock exchanges last week—within which private pension wealth makes up 42% of national wealth, while net property wealth is not far behind at 35%. Arguably, equity release should play a higher role in proactive financial planning. Potentially, it is a valuable source of supplementary retirement income, particularly for pensioners on low incomes in homes that they own.
Many pension providers also provide equity release: for example, Aviva, Liverpool Victoria, Scottish Widows and Legal & General. It would make sense for them to be able to include illustrations about equity release alongside the pensions dashboard. Equity release is regulated by the FCA and can be sold only through a financial adviser. It is now one of the most highly regulated financial service products in the UK. In many ways, the decision whether, when and how to access equity release is not unlike the decision to access a pension pot. Independent advice is necessary, taking all considerations into account. I repeat what I said at Second Reading: I do not want to do anything to slow down the introduction of the dashboard, but I want to ensure that, when it is up and running, it can be used by those providing it to give customers a comprehensive view of assets and options, rather than a partial one.
I turn finally to Amendment 45, which deals with the verification process before one is allowed to access the dashboard. This is the weakest link in the chain. The ABI website—incidentally, it still proclaims that the Government’s objective
“is for the service to be available to consumers by 2019”—
says this about verification:
“The process to confirm the identity of users is based on the gov.uk/verify system which has already proved to be a secure portal for people accessing personal information.”
That could be an understatement. So secure is the portal that, as I will come on to in a moment, 56% of those who try to verify that they are who they are fail to do so and hence would be unable to use the dashboard.
There are risks in building the dashboard on the shaky foundations of Verify—one of the Government’s least successful IT initiatives—from which it is hastily disengaging, leaving its future in doubt. The NAO described Verify in March last year as
“intended to be a flagship digital programme to provide identity verification services for the whole of government ... In its 2016 business case, GDS identified the following key targets and expectations for the platform: 25 million people would use Verify by 2020, and 46 government services would be accessible through Verify by March 2018.”
As of 13 February, 22 government services use Verify—fewer than half the number expected by March 2018—and only 5.8 million people have signed up. There is a verification success rate of 44%, against an initial target of 90%. I failed twice to verify who I was.
In July 2018, the Infrastructure and Projects Authority recommended that Verify be closed as quickly as practicable. In a recent report, the NAO concluded:
“Even in the context of GDS’s redefined objectives for the programme, it is difficult to conclude that successive decisions to continue with Verify have been sufficiently justified.”
The Institute for Government’s Whitehall Monitor recently commented that the scheme continued to be “mired in issues”, had fallen short of targets and had
“failed to build its intended user base and it is not delivering the efficiencies that the government sought.”
In October 2018, the Cabinet Office announced that the Government would stop funding the scheme in March 2020. Against the background of the unpromising progress of the scheme, the then Minister for Implementation stated, in words that could have been crafted by the scriptwriter of “Yes Minister”, that it was
“now sufficiently mature to move to the next phase of its development.”—[Official Report, Commons, 9/10/18; col. 3WS.]
The intention is that the private sector will take over responsibility for the scheme, despite the NAO finding that the Government have failed to make the scheme self-funding and the Government failing to convince their own departments to use the scheme. What will the private sector do with the scheme? With no government support, the providers of the service may have to increase the charges to government departments, which the NAO warns may make it unaffordable for them to use. Of the 22 that use it, half have alternative means of accessing the services provided.
This is what the whole dashboard depends on. Will the private sector continue with it? If so, will it be free for consumers, as at the moment? What happens if there is no Verify process? On charges, the policy brief says on page 51:
“Government is clear that accessing basic information via pensions dashboards must be free at the point of use for consumers.”
I ask this in passing: where in the Bill is that commitment legislated for, and what is the point of making it free to access the dashboard if the verification process has a charge? I appreciate that my noble friend the Minister is dependent on the Cabinet Office for support on this issue, as that is where responsibility for Verify rests, but she has an obligation to satisfy the pension industry and pensioners that the system proposed in the Bill is fit for purpose.
Finally, at the moment, many pension providers have websites that customers can access and where they can get information about their individual pension pot. They can not only access that information but top up their pot, withdraw sums and switch investments. But under the Government’s proposals, if that pension provider then provides a dashboard, existing customers will not be able to access it using their usual log-on procedure; they will have to go down the Verify route first. Perhaps the Minister can confirm that that is indeed the case.
So, we have the odd situation where a purely passive site such as the dashboard, which can provide only information and is not interactive—Amendment 39 secures that—has a different and higher standard of security than the pension provider’s site, which is interactive. I do not understand why a pension provider that has satisfied itself about the bona fides of a customer to the extent that it will respond and pay drawdown cannot allow access to a dashboard on its site, which is purely passive, without obliging the customer to go through a cumbersome verification process. Perhaps that could be looked at as well. I beg to move.
My Lords, I support Amendments 43 and 44 in the name of the noble Lord, Lord Young. He made the point that equity release is a growing source of income for people later in life. I would say it more strongly than that: I can imagine it being the biggest source of income for such people in 20 years’ time. I understand that the financial advisers who advise otherwise on pension fund matters are not qualified to advise generally on equity release. That has been substantially cleaned up, as it were, over the past 10 years so it is not a problem, but if the dashboard cannot include equity release, it does not meet its objective of setting out what people have to live on in older age. We do not want to delay wider progress but if equity release is not included quite speedily in the dashboard, it will not do its job.
My Lords, the purpose of Amendment 39 is to contain the delegated powers in the Bill so that they do not provide the power to authorise commercial dashboards to engage in transactional activities. Any authorisation regime to permit transactions should be addressed in a future Bill.
In a previous contribution, I sought to set out the policy still to be settled when the dashboard is focused on enabling individuals to view their pensions information in one place. When functionality is extended to the ability to transact on a commercial dashboard, the challenges and potential risks are even greater; there are multiple ways in which detriment to savers can occur. We should again remind ourselves that the dashboard project can extend to the whole of the UK pension system—public and private—embracing many millions of people. Allowing transactions over dashboards needs separate and clear consideration. It cannot be implicitly tucked into the delegated powers in this Bill.
Issues of private and public good will be impacted by whether the dashboard is fit for purpose when it comes to transactions: private good at the individual level and public good at the whole pension system level. I have yet to see the behavioural outcomes strategy associated with the dashboard. I assume the Government are not agnostic on the matter, given that the state supports the long-term saving system with some £45 billion of tax relief, so they will have a direct interest in knowing that the outcomes are good.
My Lords, I will make a few observations about this suite of amendments. It strikes me that the demands to add even more to the current proposal for the dashboard are fraught with danger from the customer perspective. I agree that, from a strategic, overall macro perspective, if one is looking to plan one’s retirement income, it will be most helpful to have as many sources reflected in any dashboard that will contribute to that income. However, the problem we face in getting this dashboard up and running is that there are so many different types of pension and of scheme that we already face a monumental task in just trying to list people’s pensions and make sure that the dashboard reflects all the elements attached to them over the many decades: the different tax regimes they have been under; whether they have a guaranteed annuity or protected tax-free cash; a guaranteed return of some kind; whether benefits have to be taken at specified ages, otherwise certain things are lost; whether there is any extra insurance in there that might be attached to the pension from old-style schemes; protected rights, and so on. And that is just for defined contribution, before we even get on to the defined benefit records.
Equity release has significant dangers for any consumer who is considering it. My worry is that, if consumers look at this information on a dashboard, they will not understand those dangers and will think that the money is available. Recently I have seen very many cases where individuals or their families have taken out an equity release loan for something like 25% of the value of the equity of their home, with an interest rate rolling up at 6% per annum for 20 or 30 years, meaning not only that, if they were to pass away, no value would be left in the home but, more worryingly, if they needed to sell the home and move to a smaller one—if they took out equity release in their 50s or 60s and, in their 80s, needed to downsize for reasons of care or convenience—they would be unable to do so because there would be no equity left for them to use.
Therefore, I caution significantly against trying to go more broadly. I think that we have enough of a challenge in trying to get pensions alone on to a dashboard. I completely agree that it is important to have the state pension on there and, in that regard and in speaking to amendments in the name of my noble friend Lord Flight to which I have added my name, we want people to be able to see what their projected state pension will be. However, we will need an electronic system so that people can go online to check their state pension. If Verify is not the gateway to that, we will need to develop an alternative secure gateway. We need to make sure that the dashboard has a standardised protocol and standardised systems so that every pension provider has to use the same IT structure that can then be securely fed to a dashboard.
With the state pension, you already get from social services advice on what your pension will be about a year before you draw it, so it strikes me that the state pension information is just sitting there waiting to be used by the dashboard.
I thank my noble friend. Of course, he is absolutely right but the point of the dashboard is that much younger people can plan their future pension income. The current procedure is to encourage people to log on to the state pension checker, where they can verify their future predicted state pension income so that, as they get into their 50s and closer to retirement, they will be able to make more meaningful financial planning. However, as my noble friend Lord Young pointed out, there are significant security concerns with the current gateway system that allows you to find out what your state pension is. Therefore, if we want the state pension to be on the dashboard, we will need a certain level of security.
The aims of the amendments are correct. We want to be able to see the state pension and a comprehensive list of pensions, but I caution against trying to go more broadly. I also caution against commercial dashboards which might use their own IT systems that lock people out of checking their pensions on other providers’ systems and which try to encourage people to merge their pensions. Indeed, we have seen that the systems of some pension providers do not always flag up the guarantees that can be very valuable for individuals. If people are being not advised but merely guided, or if it is merely information and they are not aware of the guarantees, they could lose out and have no comeback.
My Lords, I was not intending to speak to these amendments, but it has been quite an interesting debate to listen to. In some ways, I have changed my mind during the course of the debate. I found the notion of having everything all in one place, as put forward by the noble Lords, Lord Young and Lord Flight, an interesting idea. Of course, it can already be done, but for historic reasons—because I have been self-employed for most of my life, as has my husband, and we have quite a lot of pension schemes around—I am well versed on various different platforms. Yes, I do a lot of mystery shopping, as I call it, on these things. I have loaded up information and practised telling lies as well—putting in overvaluations of my house or saying what other things I have—to see how a platform projects what my income will be, so it is difficult to get right. I wonder about the house valuations that people might be tempted to put in, because there is a tendency to be optimistic when it comes to that.
In this last week, I was looking at one platform, thinking, “Where is the sell-all button for absolutely everything?” I could not do it; I had to go through several times, so I very much take the point made by the noble Baroness, Lady Drake, that you will take the path of least resistance when there is something that you think is urgent. If I can fall for that kind of wanting something to be there, others will too, but when I went through everything and had to think, “Do I really want to sell that or don’t I?”, I made different decisions from those I might have made if I had had a sell-all, transfer-all button. Given that I like to think that I know a thing or two about these things, I would rather err on the side of caution, as the noble Baroness, Lady Drake, pointed out. I do not want to interfere with people’s freedoms, but it has to be good to have a certain number of hurdles to give people a pause to think.
I tend to agree that equity release will have to be a big part of the future, and I wonder whether some of the people already taking out lump sums are thinking that way as well. Perhaps that is safer left until we can more broadly investigate what is going on there and make a rather safer and better environment, though I acknowledge that that there have been improvements that I have not tested yet.
My Lords, I will speak to the three amendments in my name in this group and respond to the others. Amendment 39 in my name, and that of my noble friend Lady Drake, would, as she indicated, prevent the powers granted under the relevant sections of this Bill from being used to extend dashboards into becoming transactional. My first question, therefore, is whether that is necessary: will transactions be permitted? The noble Earl, Lord Howe, said last Wednesday:
“We also intend all dashboards to start with a limited functionality until we better understand how individuals interact with their information. ”—[Official Report, 26/2/20; col. GC 183.]
Does that rule out transaction? I think not specifically. The excellent policy brief from the DWP says this:
“Dashboards will present simple information, without the ability to carry out transactions.”
That seems really clear: no transactions. A bit later on, however, it says:
“In future we expect that dashboards should be able to provide a greater level of functionality and information.”
So here is the rub: does functionality include transactions? Will the Minister tell the Committee plainly: is it the Government’s intention ever to allow transactions at any point on the dashboards? If not, then let us make that clear on the face of the Bill. If they do, then, as my noble friend Lady Drake said, they should have to come back to Parliament and seek further authorisation before going down that road. The reason is simple: we are being asked to authorise the establishment of a service that will be based on the compulsory release of data about the assets of some 22 million people, with no clarity about what is being created.
In the debate on the last group of amendments last week, my noble friend Lady Drake offered the Committee a short list of some of the matters not yet resolved. The Minister—the noble Earl, Lord Howe—said:
“It is not that the policy is not settled but that the implementation of the policy is not settled.”—[Official Report, 26/2/20; col. GC 190.]
Obviously, it depends where one thinks policy stops and implementation begins. If the policy is, “Have at least one dashboard with some pension information on it”, I acknowledge that the policy is settled. If it is much beyond that, we are into murkier water.
Let me add my shortlist of a few things we do not yet know. We do not know how many dashboards there will be. We do not know who will run them. We do not know what information will be provided on them or in what form. We do not know what uses of the information will be permitted. We do not know how the whole system will be governed and regulated. We do not know where liability will lie for each of the links in the chain. Without that, we do not know how complaints about failure and compensation for detriment arising at each point will be handled. We do not even know who will get to make rules for the dashboards, because the regulations provide for that to be literally anyone.
There are so many points in the information and action chain where something could go wrong: data loss or leakage; errors in data being supplied to the dashboard, by either the state, TPR-regulated schemes or FCA-regulated firms; compliance failures in displaying it inappropriately; transactions on or off screen, regulated or unregulated, where the consumer ends up with a poorer outcome than should have been the case.
Last week, the Minister defended the proposed delegated powers, saying to my friend Lady Drake that they were needed to provide momentum to the process of co-operation that would be required to develop the dashboard infrastructure. But the Constitution Committee addresses that specifically in its comments on Part 4 and the use of broad regulation-making powers. It said:
“There is a need for some of these powers in order to commence the work on pensions dashboards and facilitate the sharing of data to make them function. However, the rest of the powers could have been omitted until the policy had been prepared and sample regulations produced for consideration as part of a future bill. We have observed previously that ‘Skeleton bills inhibit parliamentary scrutiny and we find it difficult to envisage any circumstances in which their use is acceptable. The Government must provide an exceptional justification for them’”.
Can the Minister tell us what the exceptional justification is?
The case for not allowing regulations to be made under the Bill to allow transactions is overwhelming. Having thought about it over the weekend, I now think it is even stronger than when we tabled the amendments, because the debate in Committee last week surfaced more information about the Government’s plans for dashboards. We have learned that they are committed to MaPS providing a dashboard service, but we also learned that they are open to anyone who can meet the criteria running a qualifying dashboard and that they have no idea how many people that will be.
We learned that the Government think that having multiple dashboards running right from the launch would actively be a good idea because they think it would increase reach, and we learned that they are relaxed about commercial dashboards being there first and MaPS coming in, if necessary, some time later. If MaPS took a long time to get a dashboard up and running, which is not impossible, there could be years in which the only way the consumer could view the data on her own pension, the release of which the Government had mandated, would be on a commercial dashboard. I asked the Minister last week if the Government think that it is a good thing to have a public dashboard, and if so why. I ask him that again now. If he thinks it is a good thing, why are the Government relaxed about there potentially being a period of years when there is no public dashboard yet the mandated data has been released? I should be interested to hear the answer to that.
Also last week, the Minister said that accessing the information on dashboards will remain free. That is good news, but it means that, as my noble friend Lady Drake said, we need to understand the charging model of commercial dashboards. If they cannot charge you to look at it, why would they do it unless they can make money at it some other way? We need to understand what those other ways are. I do not know; I can only speculate. Are they hoping to find a way to monetise the access to data that the dashboard gives? Would that be allowed? Will they want to use the dashboard to show a consumer her various assets and encourage her to consider a more efficient way of organising them? For example, “Look, it is all spread over here. Would it not be tidier if you brought it all over in this fund over here, which—oh look?—my firm happens to run?” That way, the firm might stand to make money either from transactions or from the scheme itself. What about through advertising? Perhaps when a user logs on to her dashboard, up pops an advert that either encourages her to engage with a firm or asks, “Have you thought about equity release? Would not that be a better way of going about what you do?” Or even, as my noble friend said, there could be careful presentation of the data that seems to privilege some kinds of assets over others, depending on who is running the scheme. This is potentially a really powerful tool and we need to place some firm limits on its use until the market is much clearer.
Amendments 49 and 50, in my name, specify that regulations may require the provision of information on likely retirement income and administrative charges. I put these out as probing amendments to find out what information will be on the dashboard. What will consumers see? Without an estimate of their likely income on retirement, many consumers who do not have the skills and knowledge of the noble Baroness, Lady Bowles, may have no idea of what the size of a fund will mean in terms of an income on retirement, and without some guide they may struggle to understand that. Often, it should be possible to provide that, because for occupational DC schemes that are used for auto-enrolment, trustees must produce a chair’s statement with value-for-money assessments which include illustrations on the likely retirement income. Presumably, if schemes are doing this properly, that data can be uploaded to the dashboard.
There should also be transparency on charges, but the presentation of charges to members often does not distinguish between the many kinds of charges that can be levelled on a fund. This amendment would require the disaggregation of investment and administration charges, so individuals could readily see the administrative charges that they face on the scheme in which their savings are held. Schemes can differ a lot in their administrative efficiency, and consumers should be able to see at a glance which schemes are levying high administrative charges.
Can the Minister confirm that this information—indeed, the requirement to be on the dashboard at all—will not apply to any legacy private schemes or new private pensions not covered by auto-enrolment? That leaves out quite a chunk of the market where transparency would be particularly important because a lot of those old schemes are very inefficient, with very high charges. Do the regulations permit the Government at some point to force those schemes to come on board? If so, do the Government intend to use that power?
I understand that any dashboard developed by MaPS would have a liability model developed alongside it. I asked about the liability model and the Minister said that he would come back to it this week; I cannot remember if he is coming back to it now or later, but I look forward to hearing about it at some point today. That would be marvellous. I would also like him to answer this question: if it is to be developed alongside the MaPS dashboard, and that is delayed, will there none the less be a liability model in place before any dashboard goes live, so that we are not waiting for the public dashboard?
Amendment 57, from the noble Baroness, Lady Altmann, requires that the projected state pension on retirement be available on the dashboard. It is important that people can readily access information on the state pension, which for many of them will be a core part of their retirement income. The challenge is that it will change at different points in their life depending on choices made, working patterns, et cetera, but it seems quite hard for the DWP to mandate everyone else to provide their data, and not do it themselves. It will have to go into that space.
After the comments between the noble Baroness, Lady Altmann, and the noble Lord, Lord Young of Cookham, I am interested to hear the Minister’s response on questions of identity verification. I found his comments on the challenges of some of the services very interesting. I take her point that, if one is to get personal data, some verification process will be needed. His points about beneficiaries are important as well.
I am a little more nervous on the point about equity release. The FCA has just started to look into this market. The noble Lord, Lord Flight, said that it has cleaned itself up, and certainly some practices which were standard 10 years ago, such as negative equity, are no longer standard. However, there are still a lot of questions about this, and a number of people are concerned that we are seeing patterns of commission-driven decisions; these have raised concerns in other markets in the past. Certainly, if any noble Lord has the misfortune to find themselves self-isolating for coronavirus and watching daytime television, they may at some point see advertisements for equity release, because a lot of advertising on this is going out in different forms.
One of the main arguments for having all the bits of pension on the dashboard is that you know where they are. Most people, even if they do not have the expertise of the noble Baroness, Lady Bowles, know where their house is, are reasonably confident that it is there, have some idea of its value and could find out readily if not. I take the point about people wanting to look at the whole of their assets, but, given some of the nervousness around this market, before we dive too firmly into that area I would be interested in the Minister’s view on this—as I am in in his view on all the amendments.
My Lords, I am grateful to all noble Lords who have spoken to this group of amendments. Perhaps I can start by addressing the questions raised by the noble Baroness, Lady Sherlock, in the context of the issues posed by the Constitution Committee. I appreciate the points she and the noble Baroness, Lady Drake, made on this. The Constitution Committee raised the skeletal nature of the provisions in this part of the Bill and sought clarification on how, and by whom, some of the powers might be exercised. Notwithstanding that, as I have pointed out previously, the committee accepts the need for some of the powers, even if in skeletal form. The noble Baroness was kind enough to concede that.
The noble Baroness picked me up on the distinction I made last week between policy and policy implementation. The policy in this area is developed: we are clear about what we want to achieve and what needs to occur for that to happen. There was a full and thorough government consultation. Following that, a government response was published and our policy aims were set out. As we have made clear throughout this process, further work on the technical development must be carried out and in due course, we will bring forward the affirmative regulations that provide much of the detail that noble Lords seek.
I would like to explain why it was necessary to bring the Bill forward at this point. The noble Baroness asked me why we think dashboards are a good thing. In our government consultation, there was overwhelming support across consumer groups, individuals and industry for our proposal to introduce a legislative framework in order to,
“deliver dashboards within a reasonable timeframe”.
Our experience over the past five years of trying to make progress on this matter—a long time, as noted by my noble friend Lord Young—is that without the clarity of our commitment brought by legislation, it would prove impossible to bring together the industry in a way to develop the service that consumers require and have said they want.
We have asked the industry delivery group, under the guidance of the Money and Pensions Service, to develop the infrastructure required to provide dashboards by working with a range of stakeholders, including pension scheme providers. This process will inform the content of the delegated powers. The alternative approach would be to table a Bill once all the technical work has been completed but, as I have just outlined, we would struggle to get industry to engage with us to enable this technical work to complete. We took the view that that course of action would be impractical and simply further increase the time that consumers need to wait for a dashboard service.
I am the first to recognise the Constitution Committee’s reservations about the use of delegated powers but, in this instance, we consider their use to be entirely appropriate and in keeping with the committee’s suggestion that they meet “an exceptional justification”. As to that justification, the reasons for the nature of the delegated powers are fully set out in the delegated powers memorandum. This recognises the need for a degree of flexibility while creating a digital service solution in order to ensure that the service provided remains up-to-date, secure and accurate. Technical requirements and user needs change and the legislative framework needs to be able to adapt at pace to meet those requirements.
The committee also referred to Clause 118 and asked the Government to explain who might be prescribed by the Secretary of State as someone who can publish standards, specifications or technical requirements for a qualifying pensions dashboard service. Pensions dashboards fit with wider government aims to give consumers access to and control over their own data, particularly across financial services. The Government’s approach is therefore to ensure that dashboards are fit for purpose over the long term, which includes recognising that ownership of the dashboard infrastructure and responsibility for the setting of standards may need to change over time, as explained in paragraph 1.364 of the delegated powers memorandum. It is not possible to set out now who might be asked to take on this responsibility in future, nor to state now the mechanisms of accountability to Parliament. That would need to be determined according to the circumstances but, as we have already set out, such changes will occur within the wider legislative framework, which offers multiple layers of consumer protection.
Perhaps I should already know this, but will it be possible, in the additional technical work, for an individual to decline to have the information about his or her pension position put on to a dashboard? If past history is any guide, some people will always prefer not to join such a system. They might feel that they do not need it. Therefore, I express the hope that it will be possible to opt out.
At one level it is entirely up to the consumer, but if somebody hacks into the system or steals their identity, that is not under the control of the consumer.
I will come on to the question of identity in a second when I address the amendment tabled by my noble friend Lord Young. Clearly, we want to do our utmost to ensure that the system is secure and that data can be accessed only by those entitled to access it.
I share the aim of noble Lords to make dashboards as useful as possible to individuals planning for their retirement. To that end, we are considering many of the aspects in these amendments as potential features of pensions dashboards in the future. Having said that, I need to come back to a point that I made earlier. The development of a pensions dashboard service that gives consumers a single point of access to their pensions information is a complex undertaking.
I remind the Committee that there are over 40,000 schemes, around 25 million people with private pensions wealth and a huge amount of state pension information. My noble friend Lady Altmann was absolutely right to stress that. It is why we have asked the industry delivery group to work with representatives from the pensions industry and consumer groups to ensure that the service is accurate, secure and consumer focused. Once again, I underline the word “secure”. I have to sound a cautionary note to noble Lords who want to broaden out the service in short order. Again, my noble friend Lady Altmann is quite right: adding any further complexity at this stage, however well intentioned, risks delaying the delivery of pension dashboard services to individuals.
I am sure we can agree that it is important that the design of this service is consumer focused. It must consider potential risks to the consumer and provide benefits to individuals planning for their retirement. The industry delivery group will undertake further user research and testing to ensure that that is the case. Any additional functionality should be made available only if three conditions are met: a clear consumer need should have been identified; safeguards and protections must be in place; and any functionality must be controlled and tested.
With those thoughts and aims in mind, I turn, first, to the amendments tabled by my noble friend Lord Young. In Amendment 45, he raises the important point of identity verification. This is crucial in giving consumers and pension providers confidence in the security of their data. In order to ensure a consistent consumer experience, the dashboard infrastructure should have one digital identity standard agreed across the industry. The level of identity verification used must be consistent with the internationally recognised standard published by government—the good practice guidance on identity proofing and verification. The good practice guidance is designed to be as inclusive as possible, so that as many people as possible are able to securely access the online services.
The creation of a digitally secure identity is complex. Last year, the Government introduced the digital identity unit, which is now leading work to develop a digital identity solution that can be used across the public and private sectors. The industry delivery group will work with the digital identity unit to enable the delivery of a secure, effective and inclusive identity service for users of the pensions dashboard. I understood what my noble friend said about Verify, and I assure him that the industry delivery group has this issue squarely on its radar. It is being informed by industry experts and consumer groups, and it will carefully consider available options and make recommendations on the best identity solution for pensions dashboards. The solution may not be Verify.
ID verification will have to meet the standards for all parties, including state pension, and that requires a high level above that for an individual scheme. Whatever happens, I can assure my noble friend that dashboards will be free at the point of use for consumers; that includes identity verification. Digital identity remains a priority for government and we are considering ways in which to continue this work with departments across government. We hope to make announcements on that in due course.
On Amendment 38, the Government fully support beneficiaries with entitlements having access to their pension information via dashboards. I can tell my noble friend Lord Young that this clause, as already drafted, enables this to happen. The delivery of this facility will be considered by the industry delivery group. However, his amendment does not distinguish between beneficiaries with entitlements and potential beneficiaries, without current entitlements to the scheme. Creating provision for a person with a potential entitlement introduces considerable legal and technical challenges about data protection and confidentiality in relation to the principal scheme member. The members themselves should have control of the access to such information, and this should happen only with consent. We should be wary of undermining confidence that an individual’s own pensions data will be kept safe, confidential and secure.
On Amendments 43 and 44, the Government recognise that some people will have a range of assets, including their homes, which could be used to form part of an individual’s retirement income. I understand all that my noble friend said in favour of adding to the dashboard in this way. However, I question whether such amendments are either wise or necessary. Many income projection tools are available through independent financial advisers to support individuals with this. The amendments open up the possibility of financial advisers being able to add information and make calculations directly on to a dashboard. This would significantly extend the scope of pensions dashboards, adding more complexity and risk to delivery.
That cautionary note is quite a good segue into Amendment 39 in the name of the noble Baroness, Lady Sherlock, on financial transactions. The document Pensions Dashboards: Government Response to the Consultation sets out that qualifying pensions dashboard services will not initially have the capability to facilitate transactions. They will start with a “find and view” function, allowing only individuals to see their information. Further functionality will be carefully considered, taking into account the potential risks to consumers alongside the potential benefits.
It may reassure the noble Baroness, Lady Drake, that although the Government have been clear that we want to enable consumer-focused innovation in the long term, this does not necessarily lead to transactions on dashboards. I also respectfully remind her of the mantra that we have uttered many times: that the consumers’ interests must come first. We set out in our consultation document three overarching design principles, which underpin the pensions dashboard ecosystem. These are: first, to put the consumer at the heart of the process by giving people access to clear information online; secondly, to ensure that consumers’ data are secure, accurate and simple to understand; and, thirdly, to ensure that the consumer is always in control over who has access to their data.
Perhaps I may put three questions to the Minister in response to his comments. First, he opened by pointing out the overwhelming support for the dashboard that was evident in the consultation; I have no argument with that. Does he accept that the consumer focus groups, taken in the broadest sense, actually lined up behind the Government’s starting with a public-owned dashboard and had quite strong views about proceeding without one? Does he accept that when one disaggregates the responses to the consultation, that is a correct summary? I am quite happy to name the organisations on which I base that view.
Secondly, the Minister actually gave a very good explanation of why one should not run into transactions on the dashboard: not just because of the technical and IT requirements to building a safe dashboard, but because of the whole behavioural market- weakness issues that come into play. However, I do not think I heard him say that, as a result of recognising that, the issue would come back to the Houses of Parliament through another Bill before proceeding to transactions. That was the assurance. I do not think that simply a discussion on regulations would meet Parliament’s need to scrutinise such a big transition. To push again, will he confirm that the Government would need to come back to Parliament before proceeding to transactional activity?
Thirdly, the Minister mentioned delegated access, about which I am deeply concerned. I have no issue with MaPS having delegated access, because it was set up on a certain basis where it was implicit that the dashboard would improve the efficiency of the guidance service. Financial advisers are an issue of some substance. The FCA’s report and actions on the market in financial advice to pensioners is not good reading. Just by September 2018—and the up-to-date figure will be greater—the transfer advice in DB covered assets worth £82.8 billion. In terms of the recommended product, the regulator found 35% were suitable, 24% were unsuitable and 40% were unclear. They produced other reports to express their deep concern. I put a simple question: in the case of Port Talbot, if advisers did not advise those steel-workers well and delegated access to all their pension-pot assets, how great would the detriment have been to those steel-workers? It is not a principle that delegated access may be given to advisers at some point when there is a high level of confidence down stream, but evidence provided by the regulator—not anecdotal evidence from me—says that this market is not working well, which fills it with deep concern.
My Lords, I want to ask a couple of questions so that the Minister does not need to come back to us twice.
My noble friend Lady Drake powerfully picked up the points on transactions that I wanted to make. I heard the Minister say that the Government’s intention is to proceed to transactions at some point—I would be grateful if he could correct that if I misunderstood—but I did not hear him say why they feel that this is a good idea. I heard him say carefully that they would want assurances to protect consumers, but I did not hear anything about the positive driver for doing so that outweighs the risks that manifestly come with it, which my noble friend just articulated.
I apologise; I have two more questions. I should say that I am hugely grateful for the Minister’s thorough response; I appreciate him taking the time to give us that. It may be that, in all that, I missed the answers to a couple of my questions; I apologise if he gave them and I did not pick them up.
First, am I right in understanding that the dashboard will not cover legacy private pensions and new private pensions not covered by auto-enrolment? If so, do the regulations, as they stand, allow those to be included subsequently, and do the Government have any views on whether they were going to do so?
The Minister touched on my second question but did not answer it. On Wednesday, he said that
“we entirely understand the importance of having a dashboard run by a public body without any commercial interest.”—[Official Report, 26/2/20; col. GC 182.]
Why do the Government think that that is a good idea? Why are they not worried that there could be a long period when there are only commercial dashboards and no public dashboard?
My Lords, on the final point made by the noble Baroness, it is fair to say that our debate last Wednesday gave my colleagues and me considerable food for thought as to the scheduling of all this. The strong wish expressed by noble Lords to prioritise a publicly funded and owned dashboard was duly noted. I hope to provide her with further thought on this as we go forward. I will come back to her in writing on her specific question on the inclusion of auto-enrolment schemes and so on.
The noble Baroness, Lady Drake, asked whether the consumer groups expressed a particular preference for the MaPS dashboard coming before any others. I bow to her on that. I will have to check whether that is a fair reading; I do not doubt that it is if she says so. I do not have the specific information to hand. The majority of respondents suggested and supported multiple dashboards, not just one. I can only repeat that the rollout of dashboards will be considered as part of a carefully controlled implementation plan.
I do not believe that I expressed a categorical government intention to include transactions on the dashboard. I said that we would make that incremental step only after the most careful consideration and public consultation, and assessment of all the risks. I freely acknowledge that risks exist in that quarter. If we venture into that sphere relating to dashboards, we must be absolutely certain that the risk of abuse, scams, misleading nudges and so forth is as minimal as it can be. Each incremental step will require further parliamentary scrutiny. The noble Baroness, Lady Drake, believes that this should be through primary legislation. I have to differ with her on that. We have made provision for secondary legislation by affirmative procedure, which provides a good measure of parliamentary scrutiny, preceded by public consultation which will inform parliamentary scrutiny. She and I have to part company in this area.
My Lords, the noble Baroness, Lady Sherlock, talked about the business model of these dashboards. The noble Earl has just talked about multiple commercial dashboards. There must be a reason why people will wish to create these things, and therefore there must be a business model behind them. What is the Government’s vision for that?
The Government’s vision is for consumers to have access to their own information if they wish, and a multiplicity of ways to achieve that. We believe that more is better in this context. That is not to make comparisons between one provider and another, but multiple dashboards will give consumers more choice in where they access their pensions information, and will drive innovation to meet what are bound to be the varied needs of those 25 million people with private pension wealth who are not yet in receipt of their pension.
My apologies: my question was not clear. I was asking specifically about the business model behind this. What is the incentive for commercial providers to create these things? Is it advertising? We have talked about transactions, et cetera. If we are going to have this multiplicity of them, there must be a multiplicity of reasons. Do the Government have a view on the best model and controls around that, whether it might be advertising, transactions or charges to funds?
Scheme providers have been absolutely clear that they are keen for this to happen, mainly because the more exposure that the information has to the particular consumer, the more opportunities there may be for a dialogue between the consumer and the scheme provider—“Are you saving enough? Can we do more for you?”, that sort of thing. They see marketing opportunities in this, but that is very distinct from allowing the dashboard to enable them to enter into transactions. I hope that I have already covered that point satisfactorily.
My Lords, is there not the point that, with people having on average 11 different jobs during their career and potentially 11 different pension pots, particularly those they were part of when they were younger, many of them have no information at all about it. They do not even know who the manager or the provider is. Already, the amount of unclaimed financial assets in this country is colossal. Without what is happening under this legislation, the problem will get worse, and we urgently need to sort out the ownership of lesser pension schemes, going back a long time.
My Lords, this has been a long debate, and I do not propose to lengthen it much more. I am grateful to all noble Lords who have taken part, in particular my noble friend Lord Howe, who gave a very full response to the many issues raised. I was particularly encouraged by what he said a few moments ago—that the debate we had last Wednesday, and the view of the Committee that it would be best if the MaPS scheme was up and running before the other ones, had made some impact. I noted that he said that he hoped to come back to us with more news on that in the future.
I will say just a word on Amendment 39, in the name of the noble Baroness, Lady Drake. I read page 56 of the policy brief, which says:
“Dashboards will present simple information, without the ability to carry out transactions.”
As I understand it from what my noble friend said, that has been qualified and, subject to all the reservations and safeguards that he mentioned, it may be that under this existing legislation, transactions could be provided—I think that is where we ended up. In that case, the wording in the policy brief, if it is by any chance ever reprinted, might be qualified. At the moment it is quite stark:
“Dashboards will present simple information, without the ability to carry out transactions.”
I am being given a look; I am not quite clear what it means, but I will move on.
I was grateful to my noble friend Lord Flight for the support he gave to my amendment on equity release. However, I take the overall view that, while it makes sense at some point to have the opportunity to take a picture of all the assets available that can form a pension income stream, perhaps using the pensions board to do it up front is not the right place. I was reassured by what my noble friend Lord Howe said—that in future, we could consider some embellishments to the scheme, but the top priority was to move ahead as currently planned.
I am afraid that my concerns have not been satisfied at all on Verify. I was grateful to my noble friend for the assurances, first, that there would be no charge for accessing any pensions dashboard; and, secondly, that there would not be a charge for accessing the verification process. The Government have spent hundreds of millions of pounds and many years developing Verify, so I was slightly surprised when he said that the identification process for the pensions dashboard may not be Verify. If it will not be Verify, what will it be? There is no other game in town at the moment. As of yesterday, the Government lost all leverage over Verify by stopping any funding, so its development is now entirely in the hands of the providers. Given that the providers have now heard that Verify may not be the scheme for the pensions dashboard, that may weaken even further their incentive to develop it. What is the business model for Verify if you cannot charge the people who are having themselves verified?
There is therefore still a huge question mark over how we will get access to the pensions dashboard if there is some doubt, as I explained a few moments ago, about Verify, and no clarity at all about what this alternative system might be, which is not Verify and which will unlock the key to the dashboard. Having said that, I do not want to sound at all mealy-mouthed to my noble friend, who did a heroic job dealing with all the other amendments, but I still have some lingering doubts on that one. However, I beg leave to withdraw Amendment 38.
My Lords, the amendments in this group stand in my name and those of my noble friend Lord Flight, the noble Baroness, Lady Sherlock, and the noble Lords, Lord McKenzie and Lord Hutton. A number of us have tabled amendments in this group on similar themes. I will leave other noble Lords to talk specifically to their amendments but the main concern that we are trying to address is that there should be proper protection for consumers when using these dashboards. What is proposed in different formats is that the Financial Conduct Authority should oversee any dashboards—particularly the commercial ones—as a regulated activity. We have not seen that specified in the Bill and feel that clear regulatory protection for any consumers using a pensions dashboard needs to be on the face of the Bill.
Obviously there are different ways in which the FCA may impose regulatory protection. However, if this is meant to be an activity that benefits consumers, then, given all the experience that we have had in pensions and the issues that have arisen for consumers from time to time when there is an asymmetry of information and pension providers, and providers of different products are able to take advantage of the fact that consumers are not always totally au fait with the information on their pensions that they are presented with, it is really important, for example, that the FCA makes sure that the information is clear and that there is a recognised standard for a dashboard so that it cannot be misleading for consumers in some way, as might sometimes be the case. Sometimes providers do not intentionally try to mislead consumers but the language that they use every day is natural vernacular for them, although it does not mean a thing to a consumer. A provider might think that they have explained something very clearly for anyone who knows all about pensions but, on reading it, the customer might get totally the wrong idea or not understand what is being presented and perhaps take an incorrect conclusion from it.
Amendment 68 suggests that the provider of a pensions dashboard should have a fiduciary duty to the user of the dashboard. There is merit in our considering that as an extra layer of protection so that, once again, the provider of the dashboard is required to consider what the consumer might understand and need, and the provider therefore has a duty to help them rather than take advantage of them in some way, whether intentionally or not.
I am not sure that I need to take up the time of the Committee any further. That is the thrust of the intent behind these amendments, and I look forward to hearing from other noble Lords on this issue.
My Lords, the point that I want to make is that there are four cases where the FCA is the regulator but no reference is made to where the Pensions Regulator will provide the regulatory task. It might be readily understood by the industry why regulation is divided but there is a question mark over whether citizens will automatically know to go to the FCA for certain things and to go to the Pensions Regulator for others. I am sure that there are sound reasons for it but I would be interested to hear the Government’s view on what the regulatory model should be.
My Lords, I shall speak briefly to Amendment 68. I put my name to it and raised the issue at Second Reading in the Chamber. We have had a long debate this afternoon, and I think most of us are pretty clear that pension dashboard services are going to provide a significant service to pension scheme members. We might be able to track down £20 billion-worth of lost pension scheme assets, and we might be able to encourage more people to save for their retirement if it becomes clear to them through accessing a pensions dashboard that they may not be in possession of all the means they might wish to have in their retirement. However, we must not lose sight of one very important risk, which is that although I hope that pension dashboard services will bring significant advantages, they could also be the route through which potential harm is done to pension scheme members by bad or sharp commercial practice or whatever else. It is particularly important that we consider ensuring that a safety-first approach is adopted when it comes to the establishment of these new services.
I cannot think of anything more fundamental—this is what I think Amendment 68 is trying to flush out—or more important than to place on the shoulders of those responsible for running these schemes a duty to act in the best interest of pension scheme members. I am sure that through these regulations and other provisions a welter of regulation will bear down on to the shoulders of those services, but the idea is that they have a direct legal responsibility to pension scheme members to act in their interests when they are accessing data on the pensions dashboard. A very clear line of legal responsibility will go a very long way in establishing the right overall governance and attitude of mind that should be at work when these schemes come into operation. Those who are running pension schemes have similar fiduciary duties and therefore it is entirely appropriate. If this amendment is not accepted, there may be some other more effective approach. I hope the Government will give some consideration to how this further level of accountability and aid to the good governance of these new services is best advanced.
My Lords, the six amendments in this group in my name and that of my noble friend Lord McKenzie of Luton are probing amendments designed to get Ministers to reassure the Committee that there is a robust system of regulation and supervision for those involved in the dashboards. Rather than go through them one at a time, as there are overlapping amendments from other noble Lords, it might be easier if I simply ask the Minister to clarify some of the key aspects of the supervision and regulatory regimes which the Government have in mind.
I was delighted last week when the Minister indicated that the Government have acceded to the request from my noble friend Lady Drake and many others around the Committee:
“we shall be introducing a new regulated activity under the Financial Services and Markets Act 2000 to reflect the provision of dashboard services.”
Hurrah, say I. That is marvellous. The Minister continued with only very slightly less certainty:
“Clause 118 provides the power to set out detailed requirements ‘for qualifying pensions dashboards’. It is also likely that this will be linked to the new regulated activity outlined by the Financial Conduct Authority.”—[Official Report, 26/02/20; col. GC 183.]
I think we are being told that this means providing a dashboard service will be added to the regulated activity order. I am assuming that is what that means.
Those requirements in Clause 118 may include
“what … information is to be provided”
and
“how the ... dashboard service is to be … operated.”
They may also,
“require a dashboard service to comply with standards, specifications or technical requirements published … by ... the Secretary of State ... The Money and Pensions Service”
or another specified person. Crucially they may,
“require the provider of the pensions dashboard service to be a person approved … by … the Secretary of State … the Money and Pensions Service”
or another specified person. The last of those is crucial.
If running a dashboard service is to be an FCA-regulated activity, should that not mean that those running it have to be approved by the FCA—in which case, ought that not to be made clear? It could be another body, but the bodies named do not include the FCA. If the activity is on the ROA, does that mean that the FCA will then be able to use its full range of FiSMA powers of supervision and regulation on anyone providing dashboard services? Can the Minister further confirm that that would mean that complaints about anything to do with the dashboard could be made to the Financial Ombudsman Service?
This is the train I am trying to establish. It is great that the activities are regulated by the FCA. Will the people running it have to be FCA approved and therefore subject to the full range of FiSMA powers? It seems that that is where the real firepower is located. Alternatively, are the Government envisaging that a dashboard service might be run by an organisation that was not FCA approved, supervised or regulated? Would there be a real risk of consumer detriment if the FCA cannot use its full range of powers on anyone using a commercial dashboard?
Provision of information to a dashboard also needs to be subject to a scheme of regulation and compliance. Information will come from various sources. Will the provision of information from trust-based schemes to a dashboard be regulated by the TPR? What about the information provided from contract schemes? Will that come from via the FCA? Will it be directly under FCA supervision or by the fact that they regulate the firms providing the information? Who will oversee the provision of information from the state and make sure it is accurate? Where does the consumer go to complain about their data? At the moment, if a bank misuses your data, the ICO will deal with the bank, but the consumer will go to the Financial Ombudsman Service to deal with detriment. What will happen here?
My biggest concern is what will be done with data provided on dashboards and the potential for mis-selling. Amendment 68 would require that those providing dashboard services would have to act in the fiduciary interest of savers. My noble friend Lord Hutton just made a compelling case for that. Our argument is that this is a special situation where the state has mandated that consumers’ data should all be gathered together in one place. That is helpful, but it is a little like saying, “Rather than having them wandering freely across the hillside, all the lambs have been gathered into one pen”. In that case, you want to be pretty sure that there is a good lock on the gate and that anyone coming along pretending to be a shepherd can be spotted early and—“Stop. Enough of this analogy. Ed.” I think the point is made.
Because of this higher challenge, there should be a higher duty of care to the consumer. If an organisation running a dashboard service is regulated by the FCA, it will be subject to the “treating customers fairly” FCA standard, but this goes higher. It becomes even more important if it is possible that any of those people will not be subject to the full range of FCA supervision and regulation powers. There should be a duty of care to the consumer. We can see the benefit of gathering information/lambs in one place, but it of course makes the information/lambs much easier to access. Can the Minister give us some reassurance on those points?
My Lords, the amendments in this group are designed to ensure that consumers are placed at the heart of dashboards and that the Financial Conduct Authority is given responsibility for certain aspects of that. I say straightaway that I wholeheartedly agree with this aim. What I cannot agree with is the way of achieving it proposed in the amendments.
The Government are persuaded that a strong regulatory regime is key to maintaining public confidence in dashboards. There are existing powers which we will use to introduce a new regulated activity for dashboard providers. We can do this by amending the regulated activities order set out in Section 22 of the Financial Services and Markets Act 2000. This will bring the provision of a qualifying dashboard service within the regulatory and supervisory the remit of the FCA. There is no need for the new dashboard-specific regulated activity to be in the Bill.
We are working with Her Majesty’s Treasury and the FCA to agree the nature and scope of the changes. Legislation amending the order will be brought forward in due course. I can also confirm that the Financial Services and Markets Act covers Northern Ireland, meaning that any new regulated activity would also extend to Northern Ireland. It is important to note that the new regulated activity will apply only to dashboard providers. Pension scheme trustees and operators are already within the regulatory remit of either the Pensions Regulator or the FCA. The requirement on pension schemes relating to the provision of information via dashboards will be set out in regulations and FCA rules pursuant to this Bill.
The noble Baroness, Lady Sherlock, asked whether the FCA will be able to use its full range of powers; yes, it will. All the FCA’s existing powers will be available where a dashboard provider must be FCA-authorised. To answer the noble Lord, Lord Hutton, the Financial Conduct Authority has an existing framework to ensure that authorised firms take the interests of customers into account. The Government will again set out in regulations the conditions that a dashboard will have to meet. This will be supported by new, dashboard-specific regulated activity, as I have just explained.
Strong consumer representation on the industry delivery group, alongside new regulations and a new, dashboard-specific regulated activity, will ensure that the design is in the interests of consumers and that they are protected. The regulatory framework for the new regulated activity will be proposed in the FCA’s consultation on the corresponding handbook rules and guidance.
I hear what the Minister is saying and am very grateful for the thoroughness with which he is responding to these issues, but will pension scheme members have any direct legal redress against a dashboard services operator should things go wrong? As I am hearing him, most of the remedies seem to lie in the hands of regulators or others, but if my data is misused or I feel that some problem has occurred as the result of the inappropriate organisation of a pensions dashboard service, where do I stand?
Consumers will have various modes of redress available to them if they are not served legally or properly by their scheme provider or the dashboard provider. Our response to the consultation on dashboards highlighted the need for a clear liability model for the whole dashboard system. The objective is to enable users to identify easily where to raise a complaint or a dispute if a dashboard fails to work, or if they fail to receive their pension information. We have asked the Money and Pensions Service, through the industry delivery group, to consider how this might operate and to make recommendations. The Pensions Regulator and the FCA will regulate compliance by pension schemes and the Information Commissioner will have a role in ensuring that the disclosure of pension information takes place in accordance with data protection legislation. Only FCA-approved bodies can provide a qualifying dashboard. Only qualifying dashboards can connect to the infrastructure, and they will fall under the full regulatory regime.
New Section 238G, introduced by Clause 119, ensures that the regulator will be able to monitor and enforce compliance with the new requirements, in keeping with the existing regulatory regime. The FCA also has the power to enforce rules that it will make under this legislation. Part 14 of the Financial Services and Markets Act 2000 allows the FCA to enforce any requirement on authorised persons, including those setting up or operating a personal stakeholder pension.
I thank my noble friend for his very thorough response to this group of amendments. Is it not possible that without a comprehensive, overarching regulatory framework for all dashboard activities, consumers could fall between different cracks, and the provider of the dashboard that has provided them with misleading or incorrect information could then say, “Well, it was the person who gave us the data who was misleading: it wasn’t us. We are just providing information.”? Or could this activity in some way be related to unregulated lead generation, which is part of the pensions landscape and has been so damaging to consumers? Therefore, what I hoped we might achieve with my amendment was an overarching regulated activity for anybody participating in or providing data to the dashboard and for the dashboard provider providing the data to a customer.
We come back to the question of a liability model. I might as well deal with that now. We set out in the consultation response that we expect the industry delivery group to make recommendations on a robust liability model that ensures that there are clear roles and responsibilities and a clear process for dealing with complaints. The point made by my noble friend that there is a risk that something might fall through the cracks is a very good one. The best that I can do at the moment is to say that, as the service is developed, the detail of where liability exists will emerge. She will agree with me that we are not dealing with new data or with new financial transactions, but yes, potential service risks might emerge. The IDG will, as I have said, recommend robust liability models, and the framework of any new liability arrangements will be set out in regulations. That is one of the reasons why we need delegated powers in this area.
I think that the industry delivery group is the best forum to build a liability model to which all parties are signed up and that takes into account good practice and lessons learned from open banking. While I realise that there are many differences, there are certainly lessons that we can draw from that sphere.
My Lords, is not the big issue in this territory that when people have discovered that they have four, five, six or seven different pension funds, they will want advice as to what to do with them? There is the whole problem of who can give advice, guidance or help in that area, but unless arrangements are determined about how to deal with this question, I can see all sorts of regulatory issues arising.
The liability model has not been settled. That is perfectly understandable; I do not rush to criticise it because there is a lot to do. All I would say, because I cannot resist doing so, is that it goes to the argument that one should start with a public dashboard. My question follows on from that asked by my noble friend Lord Hutton. On reading Clause 118, clearly powers are given to certain parties to set requirements—with the exclusion of the Secretary of State, who is in a totally different position. Can the Minister confirm that no such powers under Clause 118 can override the FCA’s existing powers? He may not be able to answer that yet but it would give clarity.
On a related point, I tried hard to listen to what the Minister said because I am particularly interested in whether somebody can run a dashboard service if they are not FCA-authorised. I heard him say that the full range of FiSMA powers could be used, so a dashboard must be FCA-authorised, but I think I heard him say also that only FCA-approved bodies can run dashboard services. Is that right?
Excellent. In that case, I am trying to relate that to New Section 238A(5)(c), to be introduced by Clause 118(2), on page 105 of the Bill. It states that requirements prescribed under subsection (2) may, in particular,
“require the provider of the pensions dashboard service to be a person approved from time to time by—
(i) the Secretary of State,
(ii) the Money and Pensions Service, or
(iii) a person specified or of a description specified in the regulations”.
If, as the Minister just said, the FCA must authorise someone to run a dashboard, does it not make more sense for a government amendment to come forward to make that clear in the regulations, rather than naming two bodies—neither of which is the FCA—and having a catch-all for the third?
While I am on my feet—hey, why waste an opportunity?—and the Minister reflects a little more on that point, I want to ask about the duty of care and the fiduciary duty. I take the Minister’s point about the wording there, but are the Government resistant to the underlying point made by my noble friend Lord Hutton and me: that, in these particular circumstances, there should be a higher duty of care to the consumer on the part of the organisation running the dashboard services than would be the case in the general mêlée of the FCA? Treating customers fairly and related things may suit that generic environment but this is a very particular circumstance; the Government have initiated this and put all this information in one place and mandated its release. If it were more felicitously worded, would the Government resist the notion of a higher duty of care in this circumstance than the one that prevails generally in FCA supervision?
I will certainly go away and consider that point, even if “fiduciary” is not the appropriate word, and look in conjunction with my officials at whether there is a mechanism that would achieve that aim without inventing some new legal status. I am grateful to the noble Baroness and the noble Lord, Lord Hutton, for their points.
The question posed by the noble Baroness, Lady Drake, boils down to this: if MaPS or another specified person sets the data standards, how will they be accountable to Parliament? As I said, the regulations enable parliamentary scrutiny and debate on any specific future proposal as they come forward.
We need to ensure that dashboards are fit for purpose over the longer term. That cannot happen in a summary way. Delegating the ability to set and update standards and technical specifications support through secondary legislation will, in our view, ensure that dashboards remain beneficial and relevant to consumers.
Our approach recognises that ownership of the dashboard infrastructure and the responsibilities for the setting of standards may need to change over time, but I reiterate that, taking into account the good practice that exists, the industry delivery group will develop and make recommendations on a robust liability model to ensure that there are clear roles and responsibilities in the event of a breach. That includes a clear consumer redress mechanism. In answer to the noble Baroness, Lady Sherlock, the policy intent is that the FCA should authorise dashboard providers and that this should be achieved by order.
The FCA takes seriously the need to consult the public. It has a general duty to consult the public by publishing draft rules. This duty will apply equally in this case. The FCA will also consult the Secretary of State and Her Majesty’s Treasury prior to public consultation on draft rules. That will ensure that the rules have regard to the regulations that place obligations on trust-based schemes, which will provide a consistent and coherent approach.
We have covered quite a lot of ground, but I hope that I have effectively explained the role of the FCA in protecting consumers and provided the assurance that noble Lords are seeking that we will bring dashboard services within the FCA’s scope. If I have not covered all the ground, I hope that I can rely on meetings with noble Lords following Committee so that, by Report stage, I am able to come up with any further and better particulars that they seek. With that, I hope that for the time being the noble Baroness will feel comfortable in withdrawing the amendment.
I thank my noble friend for his detailed response and the broadness of his willingness to consider the points that we have made on this important issue. I am delighted that he agrees that we all seem to have the same aim, which is to protect the consumer. However, I would be grateful if he went back to the department and perhaps wrote to me and other interested noble Lords about this. We all aim to have consumer protection but, if that is to be put in via a series of regulations with a liability model that we do not yet quite have, would there be any specific harm in putting in the Bill the regulatory framework and the requirement for FCA authorisation and protection for consumers, so that there is a comprehensive, overarching framework?
My concern is that, although this is portrayed as an information dashboard, we know that the provision of guidance and information has no consumer protection whatever—it is a matter of caveat emptor. If, for example, those dashboards carry advertisements that may be perceived as enticing people to buy products but they do not fall under such a regulation in FCA terms, we might be well advised at this stage to place an overriding emphasis from the consumer perspective on regulatory protection and authorisation for the entire framework, rather than relying on liability being proven later and redress being provided to the customer after a problem has occurred. For the moment, however, I beg leave to withdraw the amendment.
My Lords, I am conscious that, in the two groups we have already discussed, we have touched quite thoroughly on the background that inspired my amendment. The Minister has explained several times that it is the intention that this legislation is flexible, that because of the ability to make regulations it can develop over time and that many of the things that noble Lords have already been pressing for are potentially in the mind of government. There was a similar discussion at an all-Peers meeting a couple of weeks ago, which several noble Lords—in particular, the noble Baroness, Lady Sherlock—were at and which inspired this probing omnibus amendment that puts together all the things we discussed in that meeting and a few more. I do not see that it in any way competes with the amendments about the content of regulations or the SCA being the dashboard regulator.
The purpose of this amendment is to discuss how to make certain that there will be joined-up, end-to-end coverage by the regulator and the regulations—or in supervision, as the noble Baroness, Lady Sherlock, expressed it. Again, I am sure that it is the intention for a lot of this to happen—there are certainly enough powers in the Bill to do it—but there is nothing yet in the Bill to make it certain. I acknowledge that things have been said but that is not the same as having something in the Bill.
It has been said that a lot of these things might develop as a result of consultations with industry groups. If industry groups decide that they do not want some of this, what happens? There needs to be a basic obligation that these things will be covered—in particular, as my amendment envisages, if we are getting to the point where we have commercial dashboards. If these things are not resolved by the time we get them—it looks as if we might be getting them anyway, not after a delay—I do not think that it is satisfactory to have nothing in the Bill.
To ensure end-to-end regulatory coverage for the process of loading information on to dashboards to the dashboard itself and for any consequential actions arising from the dashboard, my wish list, or probing list, covers: dashboard operation; information; data; advertising and revenue generation; redress mechanisms; fraud mitigation, which the Minister has already mentioned; content; presentation; assumptions; valuations; projections; risk; comparison; third-party revenue charges; and commissions and their effect on projections.
Noble Lords said on the previous group that it is difficult to have information about charges because they are done in different ways and are the be-all and end-all. That in particular is why I have said that the effect of the charges should be given because that is where you can assess them. If there are lots of different mechanisms and they can make things weaselly wordy or look wrong, they should not be able to disguise the cash effect of the charges that can be extracted. That is probably more important than saying what the charges are. I do not think that this is in conflict with anything else that has been said today.
However, what happens if there is a data breach? That might be a matter for the Information Commissioner. It might be automatic or a matter for redress by the financial ombudsman. These mechanisms are all out there. How will they join up? We want to know for certain that they will. Nothing in my amendment suggests how this must be done; it just says that it must be done.
While mentioning the FCA, we need to be clear that unless it is told categorically in legislation or regulations that something is regulated, it will not consider it as within the regulatory perimeter. As I have said previously, it regards that as a matter for government and Parliament to authorise. An example is that although the FCA covers conduct in banks—which, as we well know, are also heavily regulated by the Prudential Regulation Authority—banks can do quite a lot that, although they have that heavy regulation, falls outside the regulatory perimeter for conduct. Commercial lending is one example. People tend to trust regulated entities but then do not realise that things that do not have that supervisory and conduct backing can be done. It is necessary to dot the “i”s and cross the “t”s here.
For example, it might be that the phrase “Click here to transfer your pension” would be covered, but as the noble Baroness, Lady Altmann, hinted in her previous suggestions, would it be against the regulations to say, “Click here and buy a Maserati”? It was once suggested that that might happen with pensions freedoms. What about equity release for double glazing and conservatories, which feature heavily in the advertising about equity release? If we do not cover advertising and the FCA does not, who does? It must be covered. It cannot be left open. My amendment aims to draw attention to these matters through my list. I will obviously be interested to hear the reply.
However, when it comes to drafting regulations—again, this has relevance because the Minister has already mentioned it—there should not be too much left to the regulatory rules. They can create holes, especially after the regulator has consulted the people it is attempting to regulate. I touched on that in a debate last week, when I explained how regulators’ rules—FCA rules, to be precise—had watered down the generality of “fit and proper” as a test for behaviour. It is by no means the all-encompassing test that was originally intended; it was narrowed down by the rules of the regulator.
When it comes to pensions, I therefore want a belt-and -braces approach. As I said, I have attempted to draft something that sweeps together all the concerns in a probing, omnibus-type way; I will not go through the list because quite a lot of it has already featured in our debate today on previous amendments. I do not aim to say how it is to be done but I suggest that when there is to be a commercial dashboard, the regulations must be done for all these things. I believe that that is what the Government say they will do, but it is better to have it on a piece of paper inside the Bill. I beg to move.
My Lords, my noble friend’s amendment, among other things, speaks about advertising. The underlying question about advertising, however, is surely why allow it at all? That was touched upon by the noble Lord, Lord Vaux, and the noble Baroness, Lady Altmann. You can see the benefit, obviously, to commercial dashboard providers: another revenue stream and/or the cross-selling of their products. However, it is hard to see why the customer would want yet another advertising channel while there are already thousands—perhaps tens of thousands—of advertising channels. What really is the benefit to the consumer; or perhaps more accurately, what really is the risk-benefit balance for the consumer created by the existence of advertising on commercial dashboards? What assessment have the Government made of this risk-benefit balance? If the answer is none, perhaps they should consider doing exactly that. I am curious about whether the Government have, in fact, indicated to potential commercial dashboard providers that they will be able to run ads on their dashboards. Is there some implicit quid pro quo going on here?
My Lords, I have some sympathy with the noble Baroness’s amendment in wanting to set out in regulation, rather than rely on regulatory rules, some of the things that will be required to make the dashboard function well. I suspect that there are three drivers behind that sentiment. One is that, in this market, the providers are particularly dominant: there is not an equality of arms when it comes to seeking people’s opinion or influencing government policy. Secondly, the FCA itself recognises that it is very difficult to get a functioning market and that it needs to think more and more about intruding in controlling providers’ supply-side behaviour. Thirdly, although the Government understandably want to rely on consultation, those consultations can be dominated by the providers in this market.
Very often, some of the raw consumer issues somehow do not come to the surface and the consumer groups often do not have sufficient resources to do the kind of detailed analysis that a submission requires to pull out some of the fault lines when these things are looked at through a consumer perspective. Members of the public are not going to participate because they simply do not understand what the issues are in relation to their interests until they experience them. I therefore have a lot of sympathy, leaving aside the precise wording of this amendment. The Government need to understand that sense of those three sentiments that often drive many of these amendments: the providers are over-dominant; even the FCA recognises the need for greater intrusion on providers in the supply-side; and consultation is often not an effective remedy for sufficiently capturing the consumers’ interests. Therefore, the more that is put in regulation, the better.
My Lords, I am grateful to the noble Baroness, Lady Bowles, for having opened up this territory. She is a creative inventor of amendments: she has drawn out here a good selection of the kind of things that regulations would need to cover. Will the Minister tell the Committee—whether or not he wants to accept this amendment—whether it is the Government’s intention to cover those matters within regulation? Are any of these items on the list matters that the Government think are inappropriate for regulations to cover them?
The noble Baroness also made a strong case in general for end-to-end regulation. The Minister has described the process that the Government are going through to develop a liability map. I presume that in this, there will also be a similar kind of regulatory map. There also needs to be a redress map to ensure that there are no gaps down the middle of all of those things. It is also particularly important that there is not a regulatory gap. In terms of redress, it is important that there are no gaps; if things overlap, that does not matter so much. For example, there are times when a pension complaint could go either to the Pensions Ombudsman or the Financial Ombudsman service. They judge things by slightly different criteria and in different ways: fair or reasonable versus the legal position. However, it does matter that nothing falls down the cracks. If a complaint is submitted to an organisation such as the Financial Ombudsman Service and there is any possibility that it is out of scope, firms will, and do, regularly take them to court to try to stop the complaint being heard, and exactly the same thing will happen with the regulators.
Therefore, it is really important that somebody has gone through the regulatory map incredibly carefully and made sure that either the regulator already has all the powers and the full scope necessary to cover all these matters or that it will be granted them. I am sure that that is already happening but it would be helpful if the Minister could reassure us about it.
My noble friend Lady Drake made a very strong point about both the drivers of the need for this change and the inequality of arms. The latter is also very strong on the advocacy side. Many times I have seen that there has been a lot of money behind those advocating on behalf of the firms but very little resource behind those advocating on behalf of the consumer. Therefore, it will be very important to make sure that one amplifies the voices that speak up for the consumer interest as well as those that speak for the provider interest.
My Lords, I fully appreciate that the noble Baroness is trying to ensure that consumers are properly protected and have confidence in the dashboard infrastructure. Indeed, an aspect of this is the need for robust supervision, and I share her belief that it is important to make clear who will be responsible for oversight of the different aspects of the infrastructure. I do not think that much divides the noble Baroness and me on the objective to be achieved.
I recognise the need for a strong supervisory and regulatory regime for dashboard providers. I also agree with the thoughts expressed by many noble Lords at Second Reading about a new regulated activity being key to maintaining public confidence in dashboards. As I explained earlier, we intend to do this by amending the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.This will bring the provision of a qualifying dashboard service within the regulatory remit of the Financial Conduct Authority. Unauthorised firms will neither be able to connect to the supporting infrastructure nor be able to provide a dashboard service.
Once the amendment to the order has been made, the regulatory framework for the activity will be proposed in the FCA’s public consultation on the corresponding handbook rules and guidance. This will allow the public and the industry a chance to comment. The FCA must have regard to any representations made to it during the consultation period. This framework can be used to set out any expectations regarding the behaviour of dashboard providers and, in this way, will supplement any conditions imposed on dashboard providers set out in regulations. I would argue that this is where we dot the “i”s and cross the “t”s, as the noble Baroness put it.
I note that the amendment also refers to revenue generated by both dashboard providers and third parties. It might not be necessary for me to do so but I want to reassure the Committee that all qualifying dashboard services, like the dashboard provided by the Money and Pension Service, will not be allowed to charge simply for consumers to see their own information. The provision of financial services and products by firms that are dashboard providers will remain subject to FCA regulation. Fundamentally, our aim in allowing multiple dashboards is only to give customers more options in accessing their information, not different information.
The mention of information should remind us that pension information is the lifeblood of a sustainable dashboard. Dashboards will work within the existing framework established by the general data protection regulation and the Data Protection Act 2018. Dashboard providers will be subject to penalties under these laws should they fail to meet required standards of consumer and data protection. One of the key principles in the design of the dashboard is that the individual will always be in control over who has access to their data. Qualifying dashboard service providers will not be able to see information about the individual’s pension rights.
The responsibility for the provision of accurate data falls on pension schemes. The Pensions Regulator will be responsible for ensuring occupational pension schemes’ compliance with requirements. The FCA will regulate personal and stakeholder pension schemes. Enforcement options, including fines, will be among the tools available to the regulators if requirements are not met.
The role of these regulators will be complemented by the Money and Pensions Service, which will establish and maintain the dashboard infrastructure. While it will not act as a regulator, it will work with the regulators to enable their compliance activity. It is also obliged, as part of its consumer protection function under the Financial Guidance and Claims Act, to report to the FCA where regulated persons are behaving in a manner detrimental to customers.
That leads me to the issue of redress. If an individual wishes to seek redress, any queries around possible incorrect information should be directed to the scheme in the first instance. Schemes are already required to have dispute resolution processes. To come back to a question asked earlier by the noble Baroness, Lady Sherlock, if people are not satisfied with the outcome of the internal dispute resolution procedure, they can take their case to the relevant ombudsman.
The amendment covers the need for regulations around assumptions, projections and comparison of costs and charges. I reiterate that we expect that the initial information provided on dashboards will be simple in the first phase. Adding further information, such as projected pension income and costs and charges, requires consideration on the delivery and consumer protection aspects of these proposals, as we have discussed. I am not ruling out the possibility of including such information, but the industry delivery group should be allowed to consider the implications fully and make its recommendations. To commit to regulations around possible assumptions and comparisons before then would be premature.
Of course, as the noble Baroness will be aware, individuals can already access information on costs and charges. The DWP has consulted on simpler annual benefits statements; the noble Baroness may like to know that it will publish a response on that subject in the spring. The consultation looks at the presentation of costs and charges and how projections are calculated. It acknowledged the crucial need for simpler statements to be consistent with the work on dashboards. We will consider how insights from the consultation can be incorporated into dashboards.
The noble Baronesses, Lady Drake and Lady Sherlock, emphasised the need for adequate consumer representation. The Money and Pensions Service has brought together an industry delivery group whose job it is to ensure that the design of pensions dashboards is informed by industry experts and consumer groups. Membership of its steering group was announced in September last year. It includes a strong representation of consumer groups, including representation from Which? and an independent representative with significant experience in consumer protection. There will also be opportunities for other consumer representatives to take part in working groups, which will help to ensure that the final design is on what information and features consumers value.
The noble Lord, Lord Sharkey, asked specifically about the need to include advertising on a dashboard. I can do no other than refer back to my earlier points. Rules on advertising are as those around any other incremental addition to the dashboard, and rules on the parameters around the use of data will be looked at very carefully. They will be developed by the Government in conjunction with the FCA, which will work with industry and consumer representatives on the delivery group to make sure that if we go down that path, it is with our eyes open and with the risks minimised. We will of course consult on any rules surrounding that issue.
I hope that I have given sufficient reassurance around consumer protection to show that the dashboard infrastructure will build on existing regulatory frameworks. That, with the need to keep dashboards simple, means that while I understand the rationale of the amendment, I consider it unnecessary. I hope that, on reflection, the noble Baroness will feel that she is comfortable in withdrawing her amendment.
My Lords, I thank the Minister for his response. As I said, this is a probing amendment but also an attempt to indicate a framework that could be constructive, perhaps in particular around some of those issues on which all noble Lords have spoken. It covers things such as advertising; it may be that the regulation that one would want around advertising is that there cannot be any of it, but that would still be a regulation to prohibit. I feel that there is a need for an explanation of this vision, somehow all in one place. Yes, a lot of it could be extracted from today’s debate and the reassurances that have been given. However, it would be much better at the very least if it was all put together, perhaps in an Explanatory Memorandum. I still tend to think that there should be something in the Bill, even if more dilute than what I have proposed.
I very much thank the noble Baroness, Lady Drake. This inequality of arms is extremely important. When it comes to FCA consultations, how many members of the public respond? I am not sure whether I am a member of the public, but I have done it from time to time, and I can tell your Lordships that, even for somebody like myself who is well used to this kind of thing, the way it is composed and constructive can be jolly difficult to get your head around. It can be difficult to get yourself organised to put it in, unless you happen to be an industry specialist who does these kinds of things all the time. I therefore very much doubt that you get members of the public responding; you may get some of the consumer organisations, but again, I doubt that they have the familiarity that is necessary always to be able to nail the point.
As was also suggested, there is a tendency with consultations to weigh the responses: X% says this, and Y% says that, and the ones who struggle and have difficulty, which is always on the consumer side, are outweighed. An awful lot of people with a financial interest from the industry side will respond. There needs to be a better mechanism for communicating with, if you like, the public and their representatives. One thing that could be done is for the FCA to obligingly inform Parliament when it is coming out with its consultations. I do not camp on the FCA’s website, looking for its consultations, and if I do not, I do not know how many members of the public will. This is a work in progress. I have to come back again on the costs.
My Lords, I rise to speak to Amendments 54 and 65, both of which are on the same topic. I beg the Committee’s indulgence. This is such an important issue that I want to expand on some of the areas involved and my reasons for tabling these amendments.
Accurate and complete member data is surely an essential prerequisite for the success of any pensions dashboard. I was struck by the Minister remarking that pension information is the lifeblood of the dashboard, which is absolutely right. These are probing amendments; I do not claim that they are the perfect answer to the issues that I am raising, but I have tried to insert into the Bill specific requirements that must be imposed on trustees, managers and administrators of occupational pension schemes to ensure that the information submitted to the dashboard has been checked regularly for accuracy. I have suggested that errors must be corrected within six months. That may not be a reasonable timeframe, but it is a start. That is Amendment 54.
Amendment 65 seeks to do the same kind of thing for personal and stakeholder pensions which Amendment 54 is seeking to do for occupational schemes. I am not sure whether I need to mention this each time I speak in Committee, but I draw noble Lords’ attention to my interests as set out in the register. Auto-enrolment has been a great success as all UK employers have set up pension schemes for their staff. Workers will be building towards a better retirement, which is a force for good, but it cannot be right that there are currently no formalised requirements that data records are verified as accurate regularly.
In the past, pensions have been plagued by data problems. Recently a number of pensioners have had to repay some of their pensions and face future pension cuts as they have been told that past errors in their pension entitlement have been discovered, many decades later in some cases. Records were not regularly updated or corrected. In the past there was manual record-keeping, which was prone to human error, and failure to ensure robust data reconciliation had been regularly carried out meant that errors were not discovered promptly, and they persisted over time without people knowing.
For any dashboard initiative to work, consumers have to be able to trust that their pension contribution records are accurate. This is a particular problem because the complexity of pension rules makes it almost impossible for individuals, especially workers enrolled in auto-enrolment schemes, to know whether the amounts being paid in on their behalf are correct. The complex calculations must calculate the employee contribution, the employer contribution, the tax relief, and potentially the national insurance relief as well. The member would naturally assume that their employer or their pension provider was ensuring that the amounts being recorded on their behalf were accurate, but unfortunately this has not been the case in the past and it is still not the case for new pension schemes. For example, a study I was involved in last year which analysed data representing more than 1 million contributions from more than 100,000 schemes—these were small employers —showed that the data had a 50% initial error rate. Some 50% of some aspects of the information was incorrect and had to be sent back for correction. Those error rates did not persist, but the data was not necessarily checked as thoroughly as it could have been.
Pension administration is the Cinderella of pensions. It is the low-margin end. It is not the sexy end. It is under cost pressure, and administrators seem to have been expected to absorb often very complex changes. Sometimes pension providers change their data requirements and their payroll software is not updated to reflect the latest version, so administrators then manually adjust spreadsheets to try to make sure that they have some data recorded. Data includes incorrect contribution amounts, contributions made for workers who did not belong to the scheme or who had already opted out, wrong identifiers for the pension scheme, inaccurate postcodes, incorrect pay period dates and so on and, for example, incorrectly believing that a pension scheme operates on a relief at source basis when it is net pay or the other way around so the amounts are simply not right.
Unfortunately there are no regulatory checks to ensure that data is verified for accuracy. What we have seen in legacy schemes is the detriment that this can cause to pensioner members, and if we have a pensions dashboard that people are relying upon to make their retirement plans, it is not good enough that administrators will just to try to make sure that by the time people reach retirement and get their pension all the errors are corrected because people will need that all along. For example, the auto-enrolment declaration of compliance does not have accuracy checks built in. Employers are asked to confirm that they have paid the right amount but nobody ensures that that is the case.
If they want to check, many pension providers currently do not collect the information that they need to verify because they are not getting the pensionable pay data sent over to them; they just get an amount of money and are told that it is correct, and that is that. We are in the middle of pensions master trust authorisation. Again, there is a risk of records being incorrect but the authorisation does not entail robust checks on data accuracy or proof that proper processes are in place to discover and correct errors.
I was trying to put into the Bill a mechanism whereby we can draw a line at a point in time and make sure that the pensions dashboard data has been through a process of cleansing and verification as a requirement for submitting the data. I am not saying that this will be simple or easy, but as more schemes emerge it will be more difficult to go back and try to reconcile past records. We have an opportunity now to put that sort of requirement into the Bill.
I quote from the Pensions Administration Standards Association, a body that oversees pensions administration and has been directly involved in some of these areas:
“Data cleansing is costly, so in low margin operations there is little appetite to invest in either clean data or in digitisation which depends on the quality of data. There is no incentive to do better than your competitor, as you are all in the same boat. Customers do not demand improvements and where they do trustees choose to ignore the calls either because of cost, resource constraints or other priorities for the scheme.”
It goes on:
“There is an expectation that introducing mandatory data provision as part of the dashboard project will act as an incentive to schemes and providers to clean up data that has been in a poor state for decades … The uncomfortable truth is that while compulsion will encourage some clean up, it will only be to the minimum level needed to show some data in a field, which essentially means that the presence of a data item will take precedence over the accuracy of it. Schemes already report 90% compliance with common data standards set by the Pensions Regulator. This should mean 90% of schemes will be able to present data that identifies an individual, but of course we know this is not reality, because it has been self-reported and not robustly checked.”
We have an opportunity to recognise the poor quality of data. This is not a blame game; it is about trying to put into the legislation a mechanism through which providers and everyone involved in the dashboard know that they can no longer rely on other people not correcting their data and no longer not attend to this themselves.
Of course, it will never be possible to ensure 100% accuracy, but having processes in place that constantly check and which allow errors to be corrected promptly is urgently required. Random regulatory checks, mystery shopping and systematic accuracy verification by an independent body would be of value and is surely a vital ingredient of any dashboard on which consumers are expected to rely.
As I said, I am not suggesting that the wording of the amendments is appropriate, in the right place or expressed correctly, but I hope that my noble friend the Minister can give us some information on and consideration of whether this could be built into a dashboard requirement. I beg to move.
The noble Baroness paints a bleak picture; I do not doubt that she is absolutely right.
Is there not a role in all this for the auditors, and a body whose feet can be held to the flames for not doing its job and not checking the systems, for example? It would not be a solution, but presumably it would contribute to an improvement.
The noble Lord raises an important point which highlights that I have not necessarily covered all the areas to be dealt with on this. Including auditors and having a requirement for them to verify the accuracy of data is indeed another way of approaching the issue. I went to trustees and scheme managers widely, but auditors are another area which might be considered.
My Lords, I do not want to say very much, but I have a couple of questions on the back of what the noble Baroness, Lady Altmann, has said.
Can the Minister tell the Committee a little about what the regulators and the Government are doing to ensure that companies are ready to clean up data ready for transferring to the dashboard? Is there any intention for providers to check that members recognise the accuracy of the data at any point? Regarding what the noble Baroness described, if data had been wrong for decades, perhaps the member would not have known the details, but they might have known if they were not in a scheme, were in a different one, or if the basics were different.
The Cheviot Trust said that it was concerned that deferred members’ data would be less accurate. Is this on the DWP’s horizon? If so, what is being done about it?
My Lords, I completely appreciate my noble friend’s desire to ensure that the information on the dashboard is accurate and secure. I absolutely agree that accurate information is essential to the effectiveness of a pensions dashboard. The answer ultimately must lie with appropriate regulations and sanctions. The Government believe that these protections are in existing regulations, and that the relevant regulators have the powers to intervene if compliance is not maintained. Having said that, I shall explain in a minute what work is going on in relation to this set of proposals.
In relation to personal and stakeholder pensions, rule 9.1.1 in the FCA’s senior management arrangements systems and controls sourcebook requires pension providers to
“arrange for orderly records to be kept of its business and internal organisation, including all services and transactions undertaken by it, which must be sufficient to enable the FCA … to monitor the firm’s compliance”.
If a scheme fails to meet these requirements, the FCA will select the most appropriate regulatory tool in the circumstances. Responses are proportionate and could include supervisory intervention.
Where enforcement action is deemed appropriate, the FCA aims to ensure that the sanction is sufficient to deter the firm or individual from reoffending and deter others from offending. Where it takes disciplinary action against a firm or an individual, it will consider all its available sanctions, redress and restitution powers, including public censure, financial penalty, prohibition, suspension or restriction orders; it has quite an armoury.
Regarding occupational pension schemes, trustees and managers are also required under existing legislation to put processes in place to ensure that the data they hold is accurate. Section 249A of the Pensions Act 2004 and the internal controls regulations 2005 require occupational pension scheme trustees to establish and operate internal controls that are adequate to ensure that the scheme is administered and managed in accordance with scheme rules and the law.
If a pension scheme fails to administer the scheme to a sufficient standard, or to comply with any other aspect of pensions legislation, the Pensions Regulator is able to issue an improvement notice. Where trustees fail to comply with an improvement notice, the regulator can issue a fine of up to £5,000 in the case of an individual or £50,000 in other cases.
My noble friend and the noble Baroness, Lady Sherlock, stressed the importance of promoting data quality on dashboards to scheme providers. Pension trustees and providers have been aware of our intention to introduce dashboards for some time now. We have been clear that they should start preparing their data now. The Pensions Regulator has increased its scrutiny of scheme records in recent years, and launched a specific targeted initiative in October 2019. It will take time to resolve data issues, which have in some cases been ongoing for decades, but the regulator is seeing good results from its engagement. There is still work to do, as my noble friend will be the first to agree.
An in-depth understanding of the challenges that pension schemes and providers will face in complying with compulsion is essential. The industry delivery group has therefore commissioned specialist independent and qualitative research. This will be conducted on a completely anonymous basis and will explore the challenges of meeting the requirements on data through deep-dive interviews with sample pension providers and schemes. This builds on the Pension Regulator’s insight. It will inform the delivery group’s recommendations for data requirements, taking into account the needs of different scheme types. It may be helpful to my noble friend if I note that, as part of the delivery group’s activity, a priority is to consider these specific items of people’s pensions data, which pension providers and schemes should supply for dashboard displays.
Experiences from other countries with dashboards indicate the importance of agreeing data standards with all industry stakeholders and the benefits of using the widest possible consumer research. The industry delivery group, working with its steering group, is developing a data-scope paper, which will highlight its latest thinking on dashboards’ data across the whole pensions industry. The IDG plans to publish this paper in due course, asking industry for feedback and, in particular, its provision of additional evidence where it exists.
The first iteration of the industry working group on data will effectively involve the whole industry before a small, focused working group will then refine this data thinking as we move on through the spring. I therefore hope that my noble friend can be reassured that the process that we have in mind has several stages to it, that they are logical stages, and that they should tease out the issues that she has very rightly drawn attention to in her remarks.
I hope that I have illustrated that the current obligations placed on schemes by the FCA and TPR, together with the enforcement powers which both regulators have, combined with the work that I have just described, are sufficient to ensure that the schemes will provide accurate data to the dashboard. I hope, therefore, that my noble friend will feel able to withdraw her amendment at this stage.
I thank my noble friend very much for his response. I said that this was a probing amendment, and I recognise that, in theory, such powers appear to exist. In practice, they do not seem to be used and there seems to be rather a reliance on self-reporting, which clearly has not produced the accuracy that one might wish. I am delighted that our honourable friend the Pensions Minister has been raising the issue of the need for accurate contributions. We need to encourage pension schemes to get going on cleansing the data. They do not need to wait for any regulations or legislation. If they already have the duty, perhaps they should just get going.
I also accept, and am delighted to hear, that the industry delivery group is working on some qualitative research and data standards. I have to express my concern that in 2015, there was an agreed data standard practice; unfortunately, the industry decided not to adopt it. I hope that there will be a different attitude this time to the importance of pension scheme data.
I beg leave to withdraw the amendment but I hope that this debate has at least raised the issue. Perhaps it may encourage some schemes to get on with data cleansing and have the regulators looking more closely at it.
My Lords, Amendment 72 would require the Secretary of State to lay an impact assessment before Parliament, once the Bill becomes an Act, setting out the expected costs of our pension dashboard proposals for businesses, government and not-for-profit organisations. I envisage the assessment covering business pensions, civil service pensions—of which I am lucky enough to be a beneficiary—and other government unfunded schemes such as the old-age pension, which we were discussing, along with funded government schemes, such as the universities pension scheme, and the pensions of non-governmental bodies: charities such as Oxfam or small not-for-profits such as Red Tractor, which I chair.
I start by thanking the Minister for the helpful briefing that she arranged with the Bill manager and the DWP team on the Pension Schemes Bill 2020 impact assessment. They have tried hard to respect the spirit of impact assessment, which allows Ministers and Parliament to address costs alongside the case for new legislation. The page numbering is confusing, but I found the document, particularly the section on dashboards, which is more than half way through, timely and informative. That is not always the case with the legislation that we scrutinise, so well done.
My concern today is that not enough attention is being given in our discussions to the costs of the new dashboards and that all the debates so far in this Committee—everything stretching from the climate change provisions debated last week to the long list in Amendment 46 in the name of the noble Baroness, Lady Bowles—are likely to increase them further.
I certainly agree with the spirit behind the amendment—that transparency is a good thing and that the costs should be known—but I just hesitate over how the costs are looked at. One would think from some of the debates that I have participated in that I am reluctant to harness financial technology, but that is absolutely not the case. I am very pro it; I just want it done well.
I spoke at an industry event the other day. I will not name the person but it was the first time I had heard the CEO of a major financial organisation say, absolutely correctly, that a single piece of public policy—auto-enrolment—brought billions of pounds into the financial services industry which providers themselves did not achieve. I am conscious that the industry is very aware of its costs but it benefited hugely from a simple piece of public policy, and I found it quite rewarding that there was recognition of that. I have often said that all this money is coming in because the state took the decision to use the private sector to deliver a second-tier pension and therefore it has a wider responsibility for delivering a big piece of public policy.
I am not saying how one should do it, but it would be wrong not to attribute to the cost of the pension dashboard costs that should be incurred anyway. Where you start in looking at costs influences what they aggregate to. Getting the data accurate in order for the dashboard to work has to be done anyway. You cannot make a profit on inaccurate data. I know that that has been the model for a long time but it is not the correct model; it is a dysfunction in the market. On the trust-based side, the Pensions Regulator is driving, and is required to drive that occupational trust-based schemes and master trusts increase the accuracy of their data. If you are auto-enrolling somebody into a product, the least you should do is provide them with accurate data about what they have accrued. I would not want to attribute to the costs of the dashboard something that the industry and pension schemes should be doing anyway, which is getting their data accurate. It is indefensible to say, “It’s an unacceptable cost to require us to get our data accurate.” If they were told, “You’ve got to get it 100% as opposed to 99.9% accurate,” that might be unreasonable within the timescale, but that should be at the heart of providing pensions, whether contractually, by trust or whatever.
Also, the sector has a duty to harness what is available in financial technology so that people can access more easily what is available. I agree that there should be this visibility, but I make a plea. Some of these things required by the dashboard should be done anyway, and some are being driven to be done by regulators. We must not overstate the costs attributable to the dashboard when they would be incurred anyway to meet other government priorities or the efficient operating of pension schemes or market providers. That is my only hesitation.
I am a big supporter of auto-enrolment, which has been transformative and helps with this long-term problem of providing for old age. The cleaning of data is not a big aspect of the impact assessment I read, although I am sure that we will be advised on that by the department. A lot of it is setting the things up. It is good that data is gradually being tidied up. We must ensure that the system is clean for the future.
I am staggered by the numbers on the cost of doing this that are bandied around. As far as I can see, the main work here is formatting data into a consistent format so that it can be uploaded to whichever platform it needs to be uploaded to. Frankly, the creation of a platform is pretty trivial stuff. It is not dramatically different to what happened with open banking in that respect; that was a question of formatting data and ensuring that it was in a consistent format. Do we have any idea of the open banking process costs so that we can compare them—and, if they are dramatically different, ask why?
I echo the words of the noble Baroness, Lady Drake. A number of elements of the expense shown in the impact assessment are elements that one would have hoped that the industry would take upon itself in any case. I sometimes need to remind providers that automatic enrolment has been an absolute gift to them. It has brought them 10 million new customers on a plate, with all the associated tax relief money. Surely they need to take an obligation upon themselves to modernise their processes and bring their IT into the 21st century. The standard answer is: “It’ll cost too much”, or, “We’ve got our own system, we don’t want to change to a new one”, but in Australia, the Government mandated a particular system that everybody had to adopt so that there was a common standard. It worked very well. My noble friend suggested that the industry delivery group is working on such a potential procedure, which would be excellent. It would incur costs but it would set the industry up for much more business in future on a long-term, sustainable basis.
I am grateful to my noble friend for raising this important issue.
The Government published impact assessments for each measure in the Bill at its introduction. As is usual practice, we will publish updated impact assessments when the Bill is enacted, setting out the impacts of any material amendments to the Bill. I assure my noble friend that for measures where regulations that are subject to consultation are required, we will publish impact assessments when those regulations are brought forward. This must be the most beneficial time to revisit the impacts, when further policy detail is set out and we are able to apply that element of further insight to our estimates of costs and benefits. I suggest that adding another impact assessment between Royal Assent and the laying of the regulations would not provide any further transparency.
Turning to dashboards specifically, the Government are well aware of the additional costs necessary to support the set-up and maintenance of pensions dashboards. As my noble friend knows, when we published an impact assessment that accompanied the Bill, we set out initial estimates of the possible costs. However, we should recognise that many schemes already provide similar levels of information directly to their consumer through annual benefit statements or digital platforms, so not all schemes will necessarily incur significant additional costs.
As I said right at the beginning, I value the work that the department has already done on this matter and the thought that it has given to it. I very much agree about the value of the single pension finder which reduces multiple costs. On climate change, I was not really commenting on the Government’s amendment as much as on the additional amendments that have been suggested and on many amendments on different areas. The point I am making is that often things seem a very good idea, but when they are added together, they bring cost and complexity. I feel that the spirit of this discussion is that we should avoid that to the extent that we can and bring in a simple system in a staged way. As noble Lords know, I always worry about small businesses, small operators and small charities because they find these things very difficult. I am delighted to hear that the Government have brought in outside advice from PwC. We will be looking at that in terms of what might be done and how it might be sequenced. If the Minister would like any assistance, I have a lot of experience of difficult tales from small businesses. I thank my noble friend, and I beg leave to withdraw the amendment.
My Lords, Amendment 77 seeks to extend the scope of Clause 124 to include transfers from unfunded public sector schemes: those where the pension promised is underwritten by the Exchequer. This amendment ensures parity of protection for those members of unfunded public service schemes.
Clause 124 relates to cash equivalent transfer rights and amends Section 95 of the Pension Schemes Act 1993. It provides the Secretary of State with a power to make regulations that can place new conditions on a member’s statutory right to transfer their pension rights to another scheme. This amendment seeks to ensure that members of unfunded public sector schemes can exercise their statutory right to transfer only once the conditions to be specified in the regulations made under this clause are satisfied. The intention is to apply the same conditions to transfers from unfunded pension schemes as will be applied to transfers from other pension schemes. These conditions can include the member providing evidence or information about their employment link with a pension scheme or their residency overseas.
Pension transfers from unfunded public sector schemes are rare. No concerns in relation to scams were raised during the 2016 government consultation, so transfers from unfunded pension schemes were not included in the original draft clause. The Department for Work and Pensions has since been made aware of criminals trying to set up a scheme that can receive unfunded pension transfers, so we believe this amendment is necessary to safeguard members of unfunded schemes from fraud. Amendment 99 mirrors the provision for Northern Ireland in paragraph 12 of Schedule 11. It is essential to provide the same protection when transferring savings to members of unfunded public sector schemes as those saving in other pension arrangements. For these reasons, I beg to move Amendment 77 standing in my name.
My Lords, I support my noble friend’s amendment and will speak to my Amendment 78, which is grouped here. I fully agree with her that it is important to protect members’ pensions on transfer, whether they come from one type of scheme or another. I am delighted to see the government amendment and its intent.
My amendment would do something that I have sought for a time, and I wondered whether we might be able to get it into the Bill. It relates to partners of pension scheme members who transfer their pension from one scheme to another. One hears so often of a divorced couple where the wife has no pension of her own and has sometimes even had a pension-sharing order. However, when the member’s pension is transferred as a cash-equivalent transfer value, there is currently no mechanism to ensure that the spouse, who clearly has an interest in potentially half that amount, is made aware that that is happening. Of course, once the money has been transferred, should the previous partner have ill intent, it is possible that the spouse—usually the wife—will be left pensionless when in fact she had expected to share the partner’s pension.
This is a probing amendment. I support my noble friend’s amendments and would be grateful to hear whether any other Members of the Committee are interested in this type of protection, which we might be able to request be inserted in the Bill, so that if somebody calls up to transfer their pension, some procedure is in place before that is done to ensure that anyone else with an interest in the pension has given their consent or has at least been informed, which does not always happen.
I have some amendments which we will come to later concerning similar issues. I very much support this amendment. The briefing that we had from the ABI gave us quite an insight into the way that women suffer as a result of not having a proper pension settlement. I very much welcome Amendment 78, which seeks to get the spouse’s permission for the transfer of a pension.
My Lords, there are three amendments in this group. Amendment 78, in the name of the noble Baroness, Lady Altmann, focuses on the evidence of a member’s spouse’s consent when a transfer is to be made. We believe that this amendment has considerable merit and are supportive of it. Quite what the technicalities that come to confront us might be remain to be seen, but certainly we should seek to make progress on it.
Regarding the other two amendments in this group, Amendment 99 is simply the Northern Ireland equivalent of Amendment 77, which, as we have heard, deals with unfunded public service DB schemes. I am alarmed to hear that without this amendment they would be attacked by some source. That is rather worrying. Regarding the prescribed conditions that must be satisfied for the purposes of the provision, can the Minister outline what those might contain?
I thank my noble friend Lady Altmann for tabling her Amendment 78, which introduces further conditions to the right to transfer. It would require the consent of a current or ex-spouse or civil partner of the member before a trustee or scheme manager could transfer a member’s savings. This condition would apply where the member was getting divorced or dissolving their civil partnership or might do so in the future. It would therefore apply to all members who might seek to transfer and are married or in a civil partnership.
The amendment would introduce unnecessary and onerous conditions into new legislation. Options already exist for those who seek a financial settlement on divorce or the dissolution of a civil partnership. The law identifies when pensions should be taken into account as part of a financial settlement on divorce or dissolution of a civil partnership, and the courts will make the final decision if there is no agreed settlement.
Where a couple are negotiating a financial settlement on divorce or dissolution of a civil partnership, they are obliged to disclose all assets, including pensions. The process includes provisions to compel disclosure where the court is concerned that the financial disclosure might not be honest or complete. The amendment introduces a radical precedent where someone other than the member will determine the final use of their financial asset without a court order or notice being in place. It is not a requirement for individuals to seek their spouse or civil partner’s consent in respect of other financial assets, such as sole name bank accounts. Why then would we include such a requirement in pension legislation?
In addition, the amendment would place additional burdens on trustees to verify that the spouse or civil partner consents to the transfer. In doing so, it risks causing a conflict with the trustee or manager’s fiduciary duty to act in the best interests of members.
The noble Lord, Lord McKenzie, asked about types of pension and the name of the scheme, and said that people might lose out in a divorce settlement. Both persons in a couple are obliged to declare assets when coming to a financial settlement in the context of the dissolution of their relationship.
My question related to Amendment 77 and unfunded public service DB schemes where there is a requirement for prescribed conditions to be satisfied before trustees or managers can use the cash equivalent. I sought to determine what those prescribed conditions might be.
In the circumstances, I will write to the noble Lord if he will allow me.
In conclusion, for the reasons I have outlined, I ask the noble Baroness, Lady Altmann, to withdraw her amendment.
This has become more problematic because of pension freedom. Before that, you could not quickly rush to play Gauguin in Tahiti and disappear, taking all your money with you, because you could not get it out in that way. At the age of 55, you can now do that if the taxman can chase you for the marginal rate of tax. There were partners, particularly women, who had certain protections in DB. In DC, at least the requirement to annuitise left some mechanism to temper this problem, although it did not deal exclusively with it. Pension freedom has transformed that.
I know that we will come later to the issue of gender and pensions—where I suspect that we will come back to this issue, among others—but there is a real issue here for partners, particularly women. If the person with the pension chooses simply to take the cash and go, once that has happened, it is very difficult for the partner to protect themselves or do anything about it. That is the underlying tension.
My Lords, I want to ask a question before the Minister comes back on this. In her reply, she gave a rather forceful defence of the current situation and directed the Committee’s attention to the courts as a means of settling this. However, she made the point that an agreement on pension sharing may already be in place. The problem is that this allows an agreement that had previously been reached to be frustrated by someone taking advantage of the pension freedoms. If the Minister does not like the way that this is being is sold, will she go back to the department and ask for some advice on whether there is a problem here? Then, when we come back on Wednesday, we can at least have a conversation about whether we agree that there is a problem here, and then we can think about the best way to address it.
The suggestion made by the noble Baroness, Lady Sherlock, is very helpful. I would be happy to do that before we come back to this on Wednesday.
I thank my noble friend for her reply, which does not come as a surprise to me. I also thank noble Lords for their useful contributions.
I believe that there may be an issue here. I hope that the department will consider it. As the noble Baroness, Lady Drake, specifically said, things are different now with pension freedoms, whether for DB or DC. If there is a pension-sharing order and a member transfers out of their DB scheme and takes a cash equivalent transfer value when their spouse had relied on a guaranteed pension income from half of that defined benefit pension, now that we have the freedoms, that pension could be dissipated. Certainly, a cash-equivalent transfer value, in terms of buying an annuity with an inflation protection to replace the income that could be lost, is not likely to be financially feasible. I accept that this would be an extra burden and that it would need careful consideration. I echo the request from the noble Baroness, Lady Sherlock, that the department considers this and sees whether there is a way of protecting these women. I beg leave to withdraw my amendment.
My Lords, many of the problems faced by our pensions system are to do with drawdown and transfer, some of which we have just discussed. This amendment would introduce a cooling-off period to help to reduce these problems and increase the frequency of taking independent financial advice and Pension Wise guidance.
The FCA recently surveyed our pensions landscape in its excellent Sector Views, published two weeks ago. The introduction noted:
“Key issues causing consumer harm include unsuitable advice, the sale of unsuitable products, poor value across the value chain and pension scams.”
The gravity of these things led the regulator to conclude:
“From a wider perspective, the prospect that consumers may not get a retirement income that meets their needs or expectations remains the central challenge.”
This is entirely appropriate, given the scale of consumer harm.
The review estimates that unsuitable transfers out of DB schemes could collectively result in losses of up to £20 billion-worth of guarantees over five years, that consumers making unsuitable product choices in retirement could also collectively lose £20 billion from unsuitable investment strategies over five years, and that more than 15 million consumers of NWP pensions and retirement income products could be affected by poor value pension products. The compound effect of high charges could lead to consumer benefits being reduced by more than £40 billion over five years.
All this is worrying enough, but on top of this, there are the scams. Consumers who are scammed lose, on average, 22 years’ worth of pension savings. That is around £82,000 each. There are also warnings for the future from Australia’s more mature DC market. There we see that economies of scale are not being passed on to consumers and that poorly governed investments in alternative asset classes are leading to lower returns. There are also higher costs associated with the proliferation of small pots, created each time a worker moves jobs.
All these factors are at play now in the UK, and we have special factors of our own to contend with. For example, the FCA has found that 29% of pension transfer advice was unsuitable and that 23% was unclear— or, to put that another way, more than 50% of transfer advice was unsatisfactory. The FCA planned to write to 1,841 financial advisers about potential harm in their DB transfer advice. That is 76% of all advising firms—a truly alarming development and an unacceptably large number.
The problem with bad advice is a present and clear danger; so is the problem with unadvised and unguided drawdowns and transfers. Since we last addressed this problem in the Financial Guidance and Claims Bill, FCA data suggests that more than 645,000 people have accessed their pensions. Of these, only a tiny 15% are believed to have had a Pension Wise appointment before accessing their benefits. More than half of the pensions accessed by savers for the first time between April 2018 and March 2019 saw the saver withdraw the maximum amount. Perhaps even more worryingly, the FCA’s latest data shows that for retirees taking a regular income from their pensions, 40% were taking out cash at an unsustainably high withdrawal rate of 8%-plus. This 40% rises to 63% for those with funds of less than £50,000. That is the road to destitution.
My Lords, I have added my name to this amendment, which is a very important amendment in the context of consumer protection. As the noble Lord, Lord Sharkey, has so excellently explained, the amendment is an attempt to ensure protection, particularly against scams. What we tried and succeeded in doing during the passage of the Financial Guidance and Claims Act was to pass an amendment that would automatically see people before they transfer money out of a pension—or withdraw money from a pension—receiving at least the independent, impartial guidance that was originally intended to accompany the pension freedoms. When they were introduced, the aim was for everybody to be able to have this impartial guidance so they did not do the wrong thing and understood the risks of taking money out too quickly. This is another line of defence for the consumer given that that amendment, which was passed in the Lords, did not make it into the Bill. It was taken out in the Commons.
One line of defence would obviously be if someone has an authorised adviser or can demonstrate that they have received independent advice. A second line of defence would be the providers themselves asking a few very basic, approved questions: “Are you asking to transfer out because of an unsolicited communication of some kind?”, and, “Do you know anything about the scheme you are transferring into?”. The provider could ask two or three basic questions; should those questions raise red flags, there would be an opportunity to protect the member before they transferred out. Other than that, there is a 60-day limit because, again, scams normally require you to transfer your money very quickly.
I hope that there may be some consideration of the importance of this protection and the use of Pension Wise in the way that it was originally intended. As we look to introduce a new Pension Schemes Act, we might find ways in which we can enhance the consumer protection that I know my noble friend understands is so important.
My Lords, this amendment goes to the heart of protecting people’s pensions. We have touched upon a number of issues surrounding the same sort of concepts during debate on the Bill and in other legislation, such as financial guidance provisions. We should see whether we cannot get together a comprehensive note of how these things are covered. I am bound to say I am unclear as to what is and is not covered in all circumstances, so it seems that would be beneficial.
Concerning the specifics of the amendment, we clearly give it broad support. It raises practical issues, as I am sure the noble Lord, Lord Sharkey, would identify, particularly on responding to approved questions. I am not sure who is on hand when the questions are being asked. We have seen what happened with taxi licences and such things in the past. The provision could give rise to challenges but the thrust is right: it is another attempt to make sure that people are aware of the consequences of what they do, to the fullest extent possible. As I say, I am not sure whether we have a comprehensive arrangement yet across all pensions and circumstances. It seems that it would be worth some effort to try to get that into place. With those words, I am happy to it give broad support. When the Minister replies, I am sure there will be some stumbling blocks in it but if we do not keep pushing and shoving, we are not going to make progress on this.
My Lords, I am grateful to the noble Lord, Lord Sharkey, and my noble friend Lady Altmann for tabling this amendment because it provides me with an opportunity to update the Committee on the progress that the Department for Work and Pensions, the Financial Conduct Authority and the Money and Pensions Service have made on delivering the stronger nudge to pensions guidance. As noble Lords are aware, this is a requirement of Sections 18 and 19 of the Financial Guidance and Claims Act 2018.
Before that, however, I would like to talk briefly about the take-up of Pension Wise guidance, which is a very positive story. The service is on target to exceed 200,000 guidance sessions this financial year, more than tripling those in its first year of operation. Recent Financial Conduct Authority data suggests that 52% of personal and stakeholder pensions accessed for the first time in 2018-19 received either regulated advice or Pension Wise guidance. That clearly demonstrates that the work the Money and Pensions Service, Government and the industry are already doing to promote both Pension Wise guidance and regulated financial advice is working.
I would like to talk about the measures in the Financial Guidance and Claims Act 2018 which were designed to further increase the take-up of Pension Wise guidance. Sections 18 and 19 require the Government to deliver a stronger nudge to pensions guidance. As the Committee is aware, MaPS is testing options for the best way to do that, in a way that complements the suggestions made by the noble Lord, Lord Sharkey, during the passage of the Act that his amendment was
“designed to be a nudge, rather than any kind of probably unenforceable or counterproductive compulsion.”—[Official Report, 31/10/17; col. 1294.]
As noble Lords are also aware, the drafting of Sections 18 and 19 was influenced by the Work and Pensions Select Committee. Following trials, those sections will deliver a final nudge to consumers to consider taking guidance prior to accessing their pension.
The Government firmly believe that, to effectively prompt more people to take guidance before accessing their pension where it is appropriate, we need to understand the impact of the nudge, and ensure that we avoid creating perverse incentives. We do not disagree with the principles of the amendment—work is already under way to establish how best to ensure that people thinking about accessing their pensions are encouraged to take guidance. We believe it is essential to use the evidence base that the trials on a stronger nudge will provide, and to consult before implementing the primary legislation in the Act. We would welcome the thoughts of the noble Lord and my noble friend on the proposals in the consultation.
The trials to test the most effective way to deliver on Sections 18 and 19 are due to conclude shortly, and an evaluation report is expected to be published by MaPS this summer. We are working to deliver on the requirements of the Act as quickly as possible, and as such we are already preparing for a public consultation this year. The Financial Conduct Authority will also consult on rules that have regard to these regulations, to make sure that there is consistency between occupational pensions and personal and stakeholder pensions.
The noble Lord seeks to require a member to provide responses to questions before a transfer can proceed. The effect of the amendment is that trustees would have the power to refuse a transfer should members’ responses not meet the conditions which the amendment proposes should be set in regulations. I assure him that the Government are already introducing conditions that seek to safeguard members against the risk of being defrauded. That change will strengthen trustees’ discretion in respect of transfers. Transfers were discussed in the earlier debate on Clause 124. The Government are amending members’ statutory right to transfer, to allow conditions to be imposed for transfers between schemes. That is aimed at ensuring that transfers are made to safe destinations. Non-statutory transfers can still take place, if the scheme rules allow. However, the amendment puts responsibility on members, not trustees, to assess the appropriateness of the receiving scheme. If the questions to be asked of members are specified in regulations, as proposed new subsection (1)(c) requires, an unintended consequence could be that fraudsters will be enabled to game the system. Members could be coached to provide answers that lead to transfers that should have been refused.
As noble Lords will recall, we have banned cold calling on pensions in legislation and established Project Bloom: a joint task force between government, regulators and law enforcement to share intelligence, raise awareness of scams through communications campaigns, and take enforcement action when appropriate. The FCA and the Pensions Regulator launched the latest ScamSmart advertising campaign on 1 July 2019, which has targeted those approaching retirement, as they were identified as being most at risk from scammers. There is also an FCA warning list, an online tool that helps investors check if a firm is operating with the right authorisation and find out more about risks associated with investment.
The noble Lord raised a specific concern about transferring out of DB schemes. Since January 2018, following its work on the British Steel pension scheme, the FCA has been working closely with both the Pensions Regulator and the Money and Pensions Service to ensure that it monitors pension transfer activity in DB pension schemes that might be subject to increased transfer activity. Also since January 2018, the FCA has issued tripartite letters to over 50 defined benefit pension scheme trustees. The tripartite letter reminds scheme trustees of their responsibilities when issuing transfer values to members and requests them to provide data that allows it to monitor scheme activity. On 21 January 2019, the FCA published a new protocol for how the three organisations—the FCA, TPR and MaPS—will work together to share information and work with pension scheme trustees, and that protocol addresses many of the recommendations made in the Rookes report.
I want to touch on one other point raised briefly by the noble Lord, Lord Sharkey. He suggested that the new pension freedoms might be encouraging people to draw down savings too fast, putting them at risk of scams. In fact, the Financial Conduct Authority’s Retirement Outcomes Review did not find significant evidence of consumers drawing down their savings too fast. The study’s findings, published in June 2018, found that most of those withdrawing had some other form of retirement income or wealth.
Clearly, it is of the utmost importance that information and guidance are available to people and that they are aware of it. That is why there are now more opportunities for people to access guidance earlier in the pensions journey. Alongside the stronger final nudge trials, Pension Wise continues to run successful advertising campaigns across multiple channels, as well as working with employers nationally and locally to encourage them to engage with their employees at their place of work. The Financial Conduct Authority’s “wake-up” packs also encourage people to think about their pension options and include signposting to Pension Wise.
I reassure noble Lords that we are very aware of the importance of the need to make progress with implementing the requirements placed on government, the Money and Pensions Service and the Financial Conduct Authority, as set out in the Act. Our aim is to find an effective and proportionate way to do this.
To conclude, I accept that this work might not have progressed as quickly as perhaps noble Lords would like, but that is for a good reason. I believe it is very important to get this right and ensure that the policy is developed based on evidence. We always talk about evidence-based policy and this is a classic example of that. The trials will conclude very shortly and will be followed by an evaluation report. We will consult this year and will seek to lay regulations as soon as possible after that, alongside the rules that will be made by the Financial Conduct Authority.
For the reasons I have explained, I hope that the noble Lord will feel able to withdraw the amendment.
I am very grateful to the Minister for that very comprehensive answer. There are one or two observations that I would like to make about components of the answer. We seem to disagree about quite what the reach of Pension Wise is. The Minister quoted a composite figure of, I think, about 52% in Pension Wise and other advice. The figure that I had was, as I said earlier, about 15% using Pension Wise.
I was also interested in the comment about whether the current drawdown rate was sustainable. The Minister might recall that in the original discussions on the pension freedoms Bill, the foreseen sustainable drawdown rate was 3%. Now, it is running at 6% and 8% for pots under £50,000. Although I admit that I might be mistaken about this, I think that the FCA may in fact have said that 6% was not sustainable in the longer term either. Therefore, I think that there are warning signs about the rate of drawdown.
I had one other question about the nudge programme. I know that two schemes are being tested against each other, in an absolute sense as well, but when this programme was designed, did it incorporate a level of success at which a rollout would be justified? I would be interested to know if that were the case—I think it should be—and what the number was for these schemes. What would trigger a rollout nationally of these two small tests? I mentioned the FCA and the investment pathways initiative. Can the Minister write to me with more detail of what is happening with investment pathways; that sounded a very promising way of coming at the problem.
Finally, there is the question of timing. Timing is behind a lot of what I was saying. It is a long time since we started on the Financial Guidance and Claims Bill and debated all this thoroughly here and in the other place. We are still not in a position to do as much as we wanted about providing guidance or advice at drawdown. A very long time has elapsed, and I have demonstrated the harms being done to consumers in the meantime by ill-judged drawdowns or transfers. I continue to worry that these timetables will slip and the harms will continue. I am reassured by the Minister expecting a result from the nudges in summer—which I take to be ending in September—and then to move as quickly as we can to implement it, if it is a success. Perhaps he and I can have a conversation later; I would be interested to know what plan B is, because it is possible that neither of those nudge trials produces what is needed. Having said all that, I beg leave to withdraw the amendment.
(4 years, 5 months ago)
Lords ChamberTo ask Her Majesty’s Government what steps they are taking to ensure that United Kingdom creators of artistic content have the same level of copyright protection as those working in the European Union.
My Lords, UK copyright works, such as books, films and music, will continue to be protected in both the EU and the UK because of the UK’s participation in the international treaties on copyright.
My Lords, in contrast to the Government’s present intention not to implement the copyright directive, the Culture Minister, Nigel Adams, said in January:
“It is imperative that we do everything possible to protect our brilliant creators”.—[Official Report, Commons, 21/1/20; col. 56WH.]
Does the Minister recognise that creative workers are crucial to the success of the UK’s creative industries; that many rely on payments related to copyright to sustain their careers; and that the new rights in the copyright directive, for which they fought hard to be included, are absolutely essential? These include transparency, contract adjustment and, of course, fair remuneration. Should these not now be introduced in UK law?
As the noble Lord will be aware, the UK has now left the EU and the transition period will end on 31 December. This means that the UK is not required to implement the copyright directive, but the UK has one of the strongest copyright protection frameworks in the world. Many of these are subject to international treaties, which we will continue to be members of. We will continue to value the creative sector; of course its work should be recognised.
My Lords, the creative industries will face major problems when we finally leave Europe. Is the Minister working with the industry to do something about visas, which are a particular problem for travelling artists?
The visa system will be the subject of negotiation. The UK is about to implement a new immigration system, but we will, of course, want to continue to co-operate closely with our friends in the EU on these matters. Artists will continue to want to transfer backwards and forwards for their work.
My Lords, with respect to the Question, will culture, media and arts services be included in future trade deals with the US, with which we already have a close cultural relationship in the performing arts?
As the noble Earl will be aware, most trade deals contain a number of paragraphs on cultural exchanges and creative industries. I am sure that that will be the case with the EU agreement and with the US agreement.
My Lords, with the onward march of the digital revolution and our pre-eminence in artistic areas such as music and arts, copyright is becoming ever more important. Can the Minister give us an assurance that intellectual property has a high priority in policy-making for this Government? However we attack that in any particular trade deal, the overall point is to protect our artistic success and endeavour everywhere.
Of course, my noble friend makes a very important point. As I said earlier, we have one of the strongest copyright protection frameworks in the world. Many of these are subject to international agreements, such as the TRIPS agreement. We will continue to engage in international fora and make sure that artists and creators have protection for their works.
My Lords, a number of different ministries have commented on this, as my noble friend pointed out, including BEIS and DCMS. Am I to conclude from the fact that the noble Lord, Lord Callanan, is speaking to this that BEIS will be accountable for this and will be the ministry that makes sure that people—including, I should say, people in my family—who work in this industry get paid? If they do not, they need to know who is accountable.
Yes, BEIS is responsible for intellectual property and copyright, but of course there is considerable input from DCMS concerning the creative industries. DCMS is taking forward a creative industries forum and various round tables with content providers and social media platforms, et cetera. So it lies across the two departments.
Does the Minister agree that unless Article 17 or an equivalent measure is introduced, creative personnel in this country are going to be disadvantaged relative to how they would have been had we stayed in the EU, and certainly in comparison with their counterparts in the EU, which was the basis of the Question? Is this not a case of cutting off your nose to spite your face? Why would we not want to make sure that those who are earning benefits from the cultural industries for this country and for themselves are able to earn, and that their copyrights are not being ripped off by the tech giants, as is currently happening?
We will continue to advocate for the rights of the creative industries. We shall see how the copyright directive is implemented and how the various enforcement regimes within it will work, but of course it is not possible for us to remain part of it, because we will not accept the jurisdiction of the CJEU in these matters. We will see how it works and will continue to keep the matter under review. It is of course a matter for this Parliament to determine how our copyright protection framework goes forward.
My Lords, at a time when royalties are being cut at almost every level—I include the BBC in this—it is more essential than ever that the creators of intellectual property are able to reap some sort of reward. What alarmed me slightly about the Minister’s replies was that he kept using words such as “hope” and “expect”. That is not so good for those of us who have to know that we can pay our bills.
We should be proud in this country: we have one of the strongest copyright protection frameworks in the world, as I said earlier. Many of these matters, as the noble Lord will be aware, are the subject of international agreements and we will continue to engage in those fora to make sure that creators get the value of their works.
(4 years, 5 months ago)
Lords ChamberTo ask Her Majesty’s Government, further to the response by Lord Ahmad of Wimbledon on 23 January (HL Deb, col 1148), whether the proposed United Kingdom autonomous global human rights Magnitsky-style sanctions regime will apply to persons engaged in (1) illegal organ trafficking, or (2) obtaining organs for transplant without consent.
My Lords, we will soon lay secondary legislation for the UK’s first autonomous sanctions regime under the Sanctions and Anti-Money Laundering Act 2018. The work is complex, and it is important to take the time to get this right. This sanctions regime will allow us to impose sanctions in response to serious human rights violations or abuses around the world. As it is not yet in force, it would be inappropriate to comment on the specific aspects of the scope.
My Lords, I welcome what the Minister has said and the action that is being taken to introduce the sanctions regime he has referred to, but he will know that I have recently been sent a report from the World Organization to Investigate the Persecution of Falun Gong which shows that over 7,000 doctors in China are involved in the systematic killing of prisoners through the horrific enforced body harvesting trade in that country. Could he assure me that, notwithstanding what he has just said, the Government will none the less look sympathetically at taking action under these new provisions in order that these doctors are brought to book?
My Lords, I note and pay tribute to the noble Lord’s work on this. I assure all noble Lords that the whole purpose of the scope of the sanctions regime is to ensure that we hold individuals who abuse human rights to account for their actions, whatever the basis of those human rights—indeed, I remember many a debate in your Lordships’ House on this legislation—and whatever the abuse.
My Lords, the China Tribunal has concluded that China’s forced organ harvesting constitutes a crime against humanity. I know the noble Lord takes his responsibilities as Minister for Human Rights seriously. Has he read the China Tribunal’s report? A draft was out about six months ago, and it has now been finalised. If he has, does he agree with it? I note that he did not raise this issue at the Human Rights Council the other day.
My Lords, on that final point, as the noble Baroness will know from her own experience as a Minister, when you are at international fora you are very much time-limited on all the issues, and the exclusion of a particular issue does not mean that there is not a focus or priority attached to it. She will know that the final report was issued yesterday; it is 562 pages long. I have not yet read it, but we are considering it and I will respond to her in detail once we have done so more fully.
My Lords, in his reply to the noble Lord, Lord Hunt, the Minister said that he would not make a preliminary decision, yet in a letter to me on 25 February the Government said that, having consulted the World Health Organization and Beijing, their view is that China is implementing
“an ethical, voluntary organ transplant system”.
How does that square with the China Tribunal’s findings that organised butchery of living people compares to
“the worst atrocities committed in conflicts of the 20th century”,
including the gassing of Jews by the Nazis and the Khmer Rouge massacres in Cambodia? Will he revisit the full report referred to by the noble Baroness, Lady Northover, published this weekend, a copy of which I sent to him, and look at the inquiries and investigations carried out by one of the Sunday newspapers published yesterday, which I have also sent him and which detail these horrendous crimes committed against both Falun Gong practitioners and Uighur Muslims?
My Lords, my Sunday afternoons would not be the same without emails from the noble Lord. I assure him that I have underlined my commitment and the commitment of Her Majesty’s Government to the important issues raised in relation to the Falun Gong. As I said to the noble Baroness, Lady Northover, we will respond once we have fully considered the details of the report. The noble Lord rightly raises those details and the details of other reports, one of which was issued today on human rights issues and the plight, particularly, of Uighurs in China. We raise this in multilateral fora and the Uighurs issue was mentioned in my contribution at the Human Rights Council last Tuesday.
My Lords, the Government have had powers to make Magnitsky-style regulations—visa bans and asset freezes—since the passage of the Criminal Finances Act 2017 and Sanctions and the Anti-Money Laundering Act 2018. Why the delay? It cannot be EU membership, as other EU members such as Lithuania and Latvia have Magnitsky-style regulations.
My Lords, there is no sense of a lack of priority. I assure the noble Lord that we are very committed to this sanctions regime. Indeed, my right honourable friend the Foreign Secretary has made it a personal priority. The noble Lord points to issues and the use of other restrictions. We have had those levers at our disposal. Only last week, when answering a Question on another country—the Kingdom of Saudi Arabia—I reassured noble Lords that we have used levers at our disposal, including visa restrictions.
My Lords, last July I had the opportunity to ask the Minister a question precisely on the WHO and its definition of whether what is going on in China is ethical. He replied that the Chinese are saying that. Last July, he undertook to raise with the WHO our concern about the farming of organs and this continuing atrocity. What has happened since July? Have we continued to put pressure on the WHO?
The short answer to the noble Lord is yes; we have taken up direct conversations and consultations with the World Health Organization. I put on record again that the allegations that have been raised in various reports, including the final report conducted by Sir Geoffrey Nice, raise questions that need to be answered in the context of that report. I know the noble Lord is aware that the view of the World Health Organization remains that China is implementing an ethical, voluntary organ transplant system, in accordance with international standards, although it has now raised concerns about transparency. I assure the noble Lord that we will continue to prioritise this issue and that of human rights within the context of China.
My Lords, I thank the Minister for his commitment to consider the report, as his department develops the regime. While he does, will he have in mind the standards that we implement through the Human Tissue Act 2004? It puts consent as the fundamental principle underpinning lawful storage and use of body parts—organ and tissue? This is the level of consent we expect of international standards for an organ transplant system.
It is always a challenge when a former Health Minister asks you a pointed and specific question, but the answer to my noble friend is yes. Across the piece, the United Kingdom prides itself on the standards it sets. Those standards also determine how we prioritise particular issues and human rights concerns on the world stage.
My Lords, there have been some confused reports on human rights in the media over the weekend. They seem to have confused the European Court of Justice with the European Court of Human Rights. Will the Minister confirm that it is still the intention of the Government to play a full, constructive and positive role in the European Court of Human Rights, to continue to adhere to the European Convention on Human Rights and to participate fully in the work of the Council of Europe?
In all those respects, the Government’s position is clear. We continue to uphold the issue of human rights, not just in a European context, but globally. On the final question, we remain very much committed to the Council of Europe, and I was pleased recently to see the Prime Minister approving the new nominations to it.
(4 years, 5 months ago)
Lords ChamberTo ask Her Majesty’s Government what plans they have for the Port of Holyhead.
On behalf of my noble friend Lord Roberts of Llandudno and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.
My Lords, the UK and Welsh Governments have committed £240 million of joint funding to the north Wales growth deal. The UK Government are working to bring greater investment growth and job opportunities to communities across Wales. The north Wales growth deal represents real progress in achieving those aims.
I thank the Minister for that reply. The Northern Ireland protocol signed by the Prime Minister in October establishes a border in the Irish Sea. According to the boss of Stena Line,
“there’s a border, and the border requires checks”.
The assumption is that these checks would be carried out in British ports, including Holyhead. If the Government do not intend to renege on the agreement, what plans do they have to provide new infrastructure at ports and how will this be financed?
My Lords, the Government are engaging with the Welsh Government and local partners to understand not only their plans, constraints and opportunities, but how best to support the planning for operational readiness. The ports that are best prepared on 31 December will have a competitive advantage.
My Lords, post Brexit, we are told that the Government will create 10 superports. The Humber ports are not merely an alternative to Dover but a driver for the northern powerhouse. They can provide a quicker, cheaper and greener solution to trading logistics. When will a decision be made on those ports?
I thank my noble friend for asking me about the free ports because they could be a great way of boosting trade, attracting inward investment and driving productivity. The Government have published a consultation document. We will be looking for up to 10 national hubs to work as trade, innovation and commerce centres. A consultation process is under way and we look forward to being able to announce the results soon.
My Lords, is the Minister aware of the recent decision by Stena Line to re-register its new boat, the “Stena Estrid”, which was originally registered in Cardiff, in Limassol, with significant implications for those working in the Port of Holyhead? If she does not have the answer to this at hand, will she write to me with any details she can find?
I thank the noble Lord for his question. I was very prepared to respond to questions about ports but not on ships today, so I will have to write to him.
My Lords, the noble Baroness, Lady Humphreys, referred to the creation of a border in the Irish Sea, and there has been a great deal of speculation about this. Will the Government permit such a border or not?
My Lords, that is a long and complex question with a long and complex answer. As noble Lords will know, arrangements for borders in the Irish Sea or elsewhere are currently under discussion.
My Lords, the infrastructure in Holyhead, like the infrastructure in many ports around the UK, does not include the ability for ships, particularly ferries in the case of Holyhead, to plug in and go on to shore power. Consequently, when they are berthed alongside, they have to run their diesel generators all the time, which has a huge impact on the environment. Is there is any intention to make sure that the ports around our nation have shoreside electrical supplies so that we can cut this huge spike in diesel emissions?
I agree with the noble Lord that that has to be a concern. As I mentioned in my opening Answer, the Government and the Welsh Government have committed £240 million to the north Wales growth deal. One of the projects within that deal will involve enormous changes for the better at Holyhead. I will endeavour to find out whether facilities to plug into shore supplies will be available.
My Lords, the Minister suggested that it is up to ports to be prepared but, while it is of course for the Government to give a signal on borders and potential borders in the Irish Sea, the uncertainty of the situation in respect of Holyhead is having very serious implications. At what point in the negotiations with the EU over the coming months do the Government expect to discuss and finalise the border arrangements between Northern Ireland and Great Britain?
As the noble Baroness, Lady Randerson, will know, I cannot possibly answer that question at this time because those sorts of things are still being finalised. However, we have been talking about this for a very long time now. An enormous amount of planning has already gone on, particularly around the previous exit date of 31 October. The Border Delivery Group has been up and running for a long time and we are working with local partners to understand what needs to be done. We have already looked at any potential disruption and what could be done to mitigate it—work is well under way.
My Lords, is the noble Baroness confident that the new infrastructure at Holyhead will be completed by the end of this year?
In terms of border checks, I hope so because as I said in a previous answer, the best-prepared ports will have a competitive advantage. I very much hope that Holyhead will be at the forefront.
My Lords, Holyhead relies on seamless trade both across the Irish border and through UK ports. Does the Minister share my concern that border checks could lead to Wales being bypassed completely in favour of alternative routes that facilitate seamless trade across the EU, with devastating consequences for trade and the economy?
My Lords, we want trade to be as frictionless as possible, and are therefore in discussions with ports to understand exactly what they will be doing to make the checks that will be needed. There will be new checks, but for traders that are ready there will be little or no delay in getting through the port.
My Lords, the question from the noble Lord, Lord West, prompts me to ask my noble friend about the paucity of charging points for the much-vaunted electric cars.
I so thank my noble friend for that question. I believe there will be a debate fairly soon about charging points for electric vehicles. It is obviously a huge priority for the Government. We are making great investments through the plug-in car grant for people who want to buy electric vehicles, and are matching that investment for charging points.
(4 years, 5 months ago)
Lords ChamberTo ask Her Majesty’s Government what assessment they have made of (1) the debt levels, (2) the mental health, and (3) the ability to work, of people in receipt of Universal Credit.
The noble Baroness’s Question recognises issues experienced by many people in our society. The department has made no official assessment of universal credit’s effect in these three specific areas. We often find that people experience debt and mental health issues that existed prior to claiming universal credit. We think that attempting to make an accurate assessment could be difficult—but not impossible.
I thank the Minister for her Answer. She is very straightforward, and I know she will want to get this right. I know too that the majority of people in this House agree that individuals are better in work—better for themselves, their families and the broader society—and benefits need to be simplified. However, we are spending billions of pounds of public money here. Theory is one thing, but practice is another. I ask the Minister to attempt again to persuade the Government to conduct an assessment, so that we can see whether there are any unintended consequences for mental health well-being, work mobility and indebtedness, and that we can properly debate this issue and recommend any changes and improvements where needed.
I am so glad that we agree on the principle that people should be, and in the majority of cases are, better off in work. I like the noble Baroness’s idea, and I am touched that she thinks my powers of persuasion are so good. In order that I can deploy them to the maximum, let us meet prior to me going back to work the magic. I would like to go with the best case possible to see if we can do this, to get the information that helps us help people more.
Are the Government aware that a number of the people sleeping rough on our streets at the moment have fallen through the universal credit net? Would the Minister like to comment on that?
Like all noble Lords in the House, I am only too well aware of the size of the problem of homelessness and people sleeping on the streets. I normally agree with the noble Lord, and I do agree that universal credit may have added to some people’s anxiety and their issues. Many of them have had issues for a long time that we have not done what we should have done to deal with—but I do not think they are 100% attributable to universal credit.
My Lords, is the Minister aware that a large body of evidence supports the case that benefits sanctions have a devastating effect on claimants’ mental health and could even result in suicides? In the light of last week’s report in the Lancet, when will the Government conduct a comprehensive assessment of the impact of benefits sanctions on claimants, as the DWP pledged to do in 2013?
I have read the report in the Lancet, and the Government’s response is that we have no concerns surrounding the general thrust of the methodology. However, it is difficult, in that it says it would not have caused the issue but would have contributed to it—a point I tried to make in answering the prior question. I am not aware of the commitment the Government made then, but that will be down to me, not them. However, if the noble Baroness agrees, I will go back to the department, get an answer to that question and write to her.
My Lords, could the Minister update the House on what the Government are doing to support those with mental health issues in accessing universal credit seamlessly, so that those issues are not exacerbated, and to help them get into work, which, as we all know, can sometimes help with mental health and well-being?
I thank my noble friend for that question. Mental health is a major issue for people on universal credit, and in other walks of life. At present, we are introducing health model offices in 11 jobcentres. These focus on claimants with health conditions. Blackburn jobcentre has agreed a new initiative, “advance to ausome”, for people with autism. Another jobcentre, in north London, is running quiet sessions for people who cannot cope with coming in.
This is what I would like noble Lords to go away with today. A young man came to the jobcentre who was working full-time, had mental health issues and did not know how he was going to keep his job. He was in a bad way. Our work coaches worked with him and, through the Access to Work mental health support programme, he is now back at work and working towards a promotion. None of that would have been possible without that support. We are doing everything we can—and there is more to be done—to help people with these issues.
My Lords, may I ask the Minister something quite specific? What plans does DWP have to deal with the outbreak of coronavirus? For example, can people on zero-hours contracts who cannot go to work get universal credit to support them if they have to isolate themselves at home and are unable to work? In a similar vein, can she guarantee that those on universal credit will not be sanctioned if they cannot go to a job interview, to the jobcentre or fulfil their commitments because they are isolating themselves at home? Will the Government suspend sanctions and advertise universal credit for those affected by isolation patterns?
I was not prepared for that one, that is for sure. I know that the Permanent Secretary has a plan to make sure that people get paid and get the help they need. However, I will be really upset if people are sanctioned because of this. I will go back to the department and write to the noble Baroness, to make sure that the issue is understood.
Does the Minister understand the correlation between new attendants at food banks and universal credit sanctions? What are the Government going to do about that? Almost all new sign-ups to food banks are caused by delays. Not only is that bad for your health, it is bad for your mental health.
The issue of food bank usage and the reasons for it came up during a Question I took recently. I have no doubt that, as I have agreed before, universal credit has contributed to the increased use of food banks, but that is not everything. However, claimants will only ever be sanctioned where, without good reason, they fail to meet the reasonable requirements agreed in their claimant commitment.
(4 years, 5 months ago)
Lords ChamberTo ask Her Majesty’s Government what is their assessment of the impact of the UK withdrawing from participation in the European Arrest Warrant, membership of Europol and membership of Eurojust.
My Lords, the UK stands ready to discuss an agreement on law enforcement and judicial co-operation in criminal matters. An agreement in this area should support data exchange for law enforcement, operational co-operation between law enforcement authorities and judicial co-operation in criminal matters. This agreement should equip operational partners on both sides with capabilities that help protect citizens and bring criminals to justice, promoting the security of all our citizens.
My Lords, the Minister has not even attempted to answer the Question. Not being a member of Europol or Eurojust relegates the UK to observer status, rather than driving and directing pan-European law enforcement operations and intelligence sharing. The Government say that they want a similar agreement to that reached by Norway and Iceland to replace the European arrest warrant, but that agreement took 13 years to negotiate and implement and does not allow extradition of an EU member state’s own nationals. Is it not inevitable that the UK will be less safe and less secure if we withdraw from these arrangements?
The first thing to say is that the Norway-Iceland agreement might have taken 13 years but the initial agreement took very little time at all; it was the commencement that seemed to take so long. It did not take very long to get agreement on this. The agreement we are negotiating should provide for co-operation between the UK and Europol and Eurojust to facilitate multilateral law enforcement and criminal justice co-operation. The agreement with Europol should go beyond existing precedent, given the scale and nature of co-operation between the UK and Europol. For example, the UK was the highest contributor of data to Europol for strategic, thematic and operational analysis in 2018.
My Lords, will the Minister set out for the House who she believes are the beneficiaries of this decision other than criminals seeking to evade justice? How will she ensure that fugitives in Europe will not just laugh at us for failing to bring them to justice?
My Lords, the beneficiaries of this should be the people of the UK. It seeks to replicate many of the operational capabilities in the European arrest warrant, while containing safeguards.
My Lords, is it not the case that not all European arrest warrants are the same? A European arrest warrant from France or Germany, with whom we share the same respect for the rule of law, is one thing, but a European arrest warrant from one or two other countries—here I particularly mention Romania—is not the same because often political interference has taken place in the judicial system.
My noble friend makes a very good point about political interference. In fact, that is one of the safeguards within what we are seeking. He is right to make the point that not all EU states are the same.
My Lords, will the situation after withdrawal be as effective as it is at present?
My Lords, this seems the most bizarre decision. Perhaps the Minister can tell me whether it is that the Prime Minister’s hard-right colleagues in the Cabinet do not like anything with the word “Euro” in it.
Not that I have heard. The agreement we are negotiating should provide for co-operation. But we will have left the EU.
My noble friend talks about political interference. This, to many of us, smacks of political interference: fixing something that is not broken. Time and again in the last two or three years, Ministers on the Front Bench have indicated the value of these arrangements. Why are we walking away from them?
My Lords, there are areas in which we will attempt to have very similar arrangements to those we have now with the EU. As I said, this will be very similar operationally to the EAW, but with enhanced safeguards.
My Lords, further to the question from the noble Lord, Lord Cormack, how is it that we have come to this pass when, time and again, before our departure from the EU, we were promised from those on the Front Bench that we would work towards replicating the arrangements for the European arrest warrant, Europol and Eurojust? We now appear to be negotiating something inferior and different.
My Lords, I would not say it is inferior, but I agree that it is different. The Norway-Iceland arrangements seem to work perfectly well with those enhanced safeguards.
My Lords, back when we were discussing the European withdrawal agreement six months ago, it was frequently said that nothing is agreed until everything is agreed. Can the noble Baroness confirm that the same rules apply as we go forward towards the new agreement that we are now negotiating? If we do not manage to agree everything, what position will we be left in with respect to these aspects of criminal justice?
We obviously want an agreement across all areas of law enforcement co-operation—I cannot hypothecate what the noble Baroness says—because we want to keep our citizens safe.
My Lords, how will the Government extradite criminals from Germany given that, constitutionally, they are not allowed to do so unless it is within the European Union?
My Lords, arrangements will have to be in place that allow the system or the arrangements to take part in that country.
My Lords, I wonder whether the Minister remembers what the head of the Police Service of Northern Ireland said about the loss of the European arrest warrant. It was one of his highest concerns about Brexit. How much was he consulted in this decision and how much has the relationship between the north of Ireland and Ireland been considered in this decision?
As the noble Baroness will know, and as I have said on several occasions, we have engaged with the devolved authorities on all things, particularly in the area of law enforcement.
My Lords, is it not the case that the European arrest warrant has one enormous advantage among many in that countries that do not normally extradite their people, do so under the EAW? What assurance have we that, in future, this will hold good? Many signals have come from European countries saying that they will not do so in the future. Does that not make us as a country weaker and more vulnerable to criminality?
I think it would mean that those states will try in their own countries—I have talked about the enhanced safeguards—but I do not think that will make this country less safe.
My Lords, is this one of the areas in which the Permanent Secretary advised the Secretary of State of the dangers of going ahead, and which the Secretary of State paid no attention to and shouted?
My Lords, one thing I cannot comment on is private conversations between Secretaries of State and their officials—
Given the continued controversy with regard to the treaty on extradition between the United Kingdom and the United States, and that the bars in each country are different—“reasonable suspicion” in Britain and “probable cause” in the United States—which of these standards will Her Majesty’s Government insist upon when they enter any new extradition treaties?
The noble Lord asks a question which I do not think I can answer in terms of the level, but I can get back to him. I would be making it up if I were to give an answer.
My Lords, one of the problems of the European arrest warrant was that, if there was a crime in the country that was trying to extradite but not in the country that the person was being demanded from, we used to have difficulty. I seem to remember there being an issue over xenophobia in one of the European countries and there was also a problem with plane spotters who took photographs of airplanes. Presumably, these issues will disappear under the new negotiations.
This will come under what we call “dual criminality”. If the issue at hand was not a crime in this country, it would not be applicable. We would add some of those more difficult cases where the crime was not a crime in our country.
(4 years, 5 months ago)
Lords ChamberMy Lords, it seems that whenever we start a fisheries discussion there is rather a lack of sustainability among our Members. One of the useful things between Second Reading and Committee is that we can reflect on the arguments and the Bill until we get into the discussion of amendments. One thing that struck me very strongly after Second Reading, on looking through the Bill again, is that it has hardly any ambition whatever. The withdrawal Act effectively makes us an independent coastal state, which we will be after the transition period, but, apart from that, all the Bill does is provide an administrative framework to keep the status quo.
I do not think that the status quo is good enough for the fishing industry. For instance, there is no provision for new entrants into the industry, which is important. There is no improvement in sustainability methods for fisheries. In fact, the Bill fudges sustainability even more than when we were in the common fisheries policy. There is no particular help for the small under-10 fleet. Because of that, there is no specific help for coastal communities either.
That is why I tabled this amendment, which goes to the fundamental matter of who fish stocks belong to, because the Bill does nothing to change that. At the moment, we have a situation where half of English stocks are owned by companies that are effectively owned by Iceland, Holland or Spain. In Scotland, a vast majority of the industry is owned by a very small number of people. It is a very efficient operation and I certainly have nothing against that, but we have an industry that has become quite fossilised and significantly foreign owned, with no apparent appetite to change that.
We will come on to a number of those issues as we go through the Bill and the amendments, but we are trying to state the completely obvious: if fish stocks belong to anyone while they are in the UK EEZ, they should belong to the nation. That is simply what the amendment says: they are not the everlasting property of a vessel, an individual, a company or even a public body such as the one we have in Cornwall that buys up quota for the local fishing industry. They do not belong to them for eternity; they belong to the nation.
I do not understand how anybody could argue against this concept, but it is really important, since it is fully in line with the ideals of Brexit, becoming an independent coastal state, and Parliament and the nation having control, that we notice and mark that these fish stocks belong to the nation. That does not mean that there should not be, through the Secretary of State or the devolved authorities, a way that those fish stocks—
I wholeheartedly agree with the noble Lord about the fish stocks in the zone belonging to the nation. Presumably that could never have occurred had we remained a member of the European Union. Will he confirm that?
Absolutely. I agree with that. That is what I am saying. Given the new opportunity that we have, we should take advantage of being an independent coastal state. The Bill does nothing to change the status quo in any way. This is one thing we can do—lay down a marker on the ownership of those stocks. As to how those stocks are distributed, the amendment does not prevent them being leased for a period, rented or allocated without charge. We are trying to make the point that, at the end of the day, these stocks belong to the nation and not to any individual.
Coming back to the point made by the noble Lord, 17 million people voted for Brexit and for taking control of our own resources. They did not vote for—in relation to fishing—a profitable industry keeping all the advantages that it has at the moment. They were thinking more of the smaller fleets and the fact that those fishing stocks should belong to us rather than to individuals and perhaps, if you would like to call them that, to the elite of the fishing industry at the moment. I beg to move.
My Lords, I support the amendment. At the beginning of last year, in Committee in the Commons on the earlier incarnation of the Bill, the Minister—who is now Secretary of State—George Eustice MP, said:
“I do not believe we need a statement that fisheries resources are a national asset or public property, because that is self-evidently the case and our common law has always held as much.”—[Official Report, Commons, Fisheries Bill Committee, 13/12/18; col. 285.]
At the time I took that as gospel. I admire his legal confidence—I say that in a “Yes Minister” context—because I am not certain that the legal confidence is supported by all involved in the industry. There is a famous case where Justice Cranston suggested that there was a type of property right attributed to a fixed quota allocation and that owners would probably need to be given in the region of seven years’ notice of the intention to move away from those FQA units as a type of property right. Such a legal hitch—this is important—might hamper the Government’s intention to move away from relative stability to zonal allocation.
The point I am making is that if the Government believe that quota and marine stocks belong to the nation as a whole, it cannot possibly do any harm to make that clear in the Bill right at the start, so there is absolutely no doubt throughout the industry; and, more importantly, that in any future court case, trying to prove the opposite will founder on the rock of this legislation, set out in 2020, at the start of a new fishing era by the express will of Parliament.
My Lords, I declare an interest at this stage as a director of a company that is in a partnership with another agency among whose clients is UK Fisheries. I put that on record. I will not repeat it every time I intervene in Committee, but I hope noble Lords will be aware of that interest.
This amendment is not grouped with anything else, because if we were to include it in the Bill it would not change any other part of it; it would simply be a statement at the outset. As the noble Lord suggested, it is a statement of the obvious and of fact. In my view it is not the purpose of legislation to state pre-existing facts. It is not necessary in legislation always to state the obvious for the facts to be true. Were this amendment to be included in the Bill, people would say that it had to be included in the Bill, otherwise it would not be true. I am trying to work out in what sense it could not be true that would give rise to it being included in the Bill, which would then give a court a reason to try to interpret it.
I then got into trouble because I am looking at it saying, “the nation”. If the amendment were to be included in the Bill in the form in which it exists, it would drive a coach and horses through the devolution settlement. The Bill very carefully establishes the rights of, for example, the Scottish Fisheries Administration to determine the allocation of quota in relation to Scotland. The noble Lord, Lord Cameron, spoke about moving away from relative stability. Indeed, we could, if we wished to, under this legislation change the fixed quota allocations, although it is not the Government’s present intention to do so, as I understand it. To that extent, it is evident that the Government could change the allocation of and access to fish stocks. They can do so because they effectively own the fish stocks. The Bill has, as we will discover, a sophisticated mechanism for planning how this will be done, how it will be consulted on and how it will be managed between the devolved Administrations. This amendment, in my view, would frustrate all of that at the outset, and for that reason I do not support it.
My Lords, I rise to support what my noble friend Lord Lansley has said. I recall the words well that the noble Lord, Lord Teverson, said at Second Reading: the more you know about fisheries, the less you actually know. It is much more complicated than one originally thinks. This amendment is an example of something that is practically simple, but would be very difficult if it ever got on to the face of the Bill, because—my noble friend is absolutely right—it does infringe on the Scottish Government’s right to allocate quotas, and it is one of many amendments before us that cannot be accepted because it infringes on the Scottish Government’s devolution ability. It would be quite wrong for us in this Chamber—or indeed the other Chamber—to legislate on it.
My Lords, I added my name to this amendment, and fully support the contribution made by my noble friend Lord Teverson. There are a number of amendments to the Bill which refer to the fact that fish are not static. They move with the seas, towards their spawning grounds, and according to the temperature of the water and other conditions. The fish are not owned by any individual person, organisation or fishing fleet. They know nothing of quotas or public authorities. It is therefore right that marine stocks should belong to the nation as a whole.
As has been referred to, no doubt the Scottish Fishermen’s Federation and the Scottish Government might have a different view, being very keen on fish being a devolved matter. I do not subscribe to that view. As the amendment makes very clear, we believe that marine stocks within the UK exclusive economic zone are a national resource, whether they are swimming around Scotland, Ireland, Wales, the coast of Northumberland or Cornwall. This should be declared on the face of the Bill. My colleague has laid out the arguments cogently, and I look forward to the Minister’s response.
My Lords, I rise to speak in general support of the principles behind this amendment. We must consider in this debate how we establish—without any shadow of a doubt—that in the handing over of quota for fisheries activities, we are transferring something that should be held as public property, in trust for the people of the nation. That should be established in law, without doubt. I worry that, as mentioned by the noble Lord, Lord Teverson, this is far too similar to the current system that we experience under the European Union, where there is an explicit conference of rights to fishermen based on the principle of relative stability. This had led to a race to claw back the rights that have already been given out. We will see, as the debate on the Bill progresses, that a lot of what this centres on is how we take control of those rights, so that they are granted with the appropriate level of scrutiny, transparency and consideration of the multiple benefits that accrue to us as a nation from the maritime resources within our waters.
I am not sure that this is the right approach, but I completely support the principles behind it. As we go forward, we must consider, as we are now doing with our agricultural policy, that, freed of the common policies of Europe, we must have the courage and the ambition to do something that is truly transformative. We will certainly come back to this principle that the rights to fish are, essentially, a public property held in trust for the nation.
My Lords, I am grateful to the noble Lord, Lord Teverson, for allowing us to debate these important principles about the ownership of our marine stocks. He is right to say that the Bill currently lacks ambition and relies far too much on sustaining the status quo, with all the inequalities and inadequacies that we have identified, which have belied our fishing negotiations over the years.
During the course of the Bill, we will have some difficult discussions about the allocation of existing and future fishing rights, and I suspect that they will not be so easily resolved by this simple declaration. I accept the point made by the noble Lord, Lord Lansley, about the issues of devolution. We have to be careful about our language, but it is important to say at the outset that no claim on rights should be permanent and all should be subject to our overriding commitments on sustainability.
This is also a welcome opportunity to register the important role that the fishing industry plays in many coastal communities across the UK. This Bill must be a vehicle for supporting and strengthening those communities while at the same time protecting our marine stocks, rather than being the means through which we exploit a natural resource for purely business and economic benefit. At the same time, a flourishing fishing industry is good for the nation as it provides healthy, locally accessed food, as well as trading opportunities with our neighbours.
In this regard, would the Minister like to comment on the words of the Treasury advisor, Tim Leunig, who has been quoted as saying that the
“Food sector isn’t critically important”
to the economy, and that
“ag[riculture] and fish production certainly isn’t”?
I know the Minister will say that this is not government policy, but what message do comments like this send to a sector already nervous about its future? From our side, we want a vibrant UK agriculture and fisheries industry and to encourage UK consumers to buy British and have faith in locally accessed food. I hope that the Minister will disassociate himself from these comments and send a message back to the Treasury that it should not be employing or listening to advisers who are so out of kilter with the views of most politicians and the vast majority of the British public.
On the subject of trade deals, although the Bill is intended to be negotiation neutral, does the Minister agree that there is a responsibility on the Government to secure a deal with the EU and EEA which allows us, first, to catch more of what we eat and, secondly, to easily sell the catch that we will not eat into those markets? We understand the intentions behind tabling this amendment today. It is of course important to restate that the resource belongs to the nation, but I suspect that we will be debating these issues for many days to come, no doubt giving us the opportunity to explore and spell out in more detail what that really means during consideration of the Bill. I look forward to the Minister’s response.
My Lords, I am grateful to the noble Lord, Lord Teverson, for bringing forward this amendment and, indeed, to all noble Lords who have spoken. While I fully understand the aim of this amendment, to make it clear that UK fish stocks belong to the nation, I take this opportunity to explain why I cannot support it and, indeed, why the Government cannot do so. I am mindful of what my noble friends Lord Lansley and Lord Caithness have said, particularly when it comes to devolution.
We were clear in our fisheries White Paper that we consider that
“The fish in our seas, like our wider marine assets, are a public resource and therefore the rights to catch them are a public asset.”
I should also say at this juncture, in declaring my farming interests, that the sustainable harvest that we get from our seas, our lakes and, indeed, from our farming sector are absolutely crucial to this nation. I emphasis particularly—as, I am sure, would the noble Baroness, Lady Jones of Whitchurch—that, as far as I am concerned, it is in the national interest that we have a vibrant farming and fisheries sector. We want that not only because it is a public good but because, in order to feed the nation as well as in terms of our exports, with climate change and all the pressures from that, we are going to have to find innovative ways of feeding ourselves and the wider communities of the world. So I say absolutely that in my department, and indeed across the nation, we look to our farmers and our fishers.
I put on record that there are dangers in both sectors and there are too many fatalities; I think safety is of primary importance. I take this opportunity to say to the noble Baroness and all your Lordships that this—after all, Defra covers environment, food and rural affairs—is a very important part of our food supply and a very healthy one.
On a point made by the noble Lord, Lord Cameron of Dillington, during the passage of the previous Fisheries Bill the then Fisheries Minister—now the Secretary of State—made it very clear in the other place that
“it is a statement of fact that”
fish
“are a public asset, and our common law tradition enshrines that.”—[Official Report, Commons, Fisheries Bill Committee, 11/12/18; col. 141.]
The need to view fisheries as a public good is reflected in the measures that we take to promote sustainable fishing. It is, for example, reflected in our approach in Clause 27, “Sale of English fishing opportunities”. Any scheme set up under this power, having been through consultation, would recognise the value of fisheries and raise revenue for the public good. That revenue could be used to support fisheries science, particularly the stock surveys that underpin annual negotiations on the total allowable catch and in-year fisheries management.
I assure the noble Lord that this principle is further covered by the objectives in the Fisheries Bill. The key objectives in this instance are the national benefit and sustainability objectives, which state that
“fishing activities of UK fishing boats bring social or economic benefits to the United Kingdom or any part of the United Kingdom”
and that fishing activities are
“environmentally sustainable in the long term”.
That is a point that the noble Baroness, Lady Jones of Whitchurch, referred to: we want our fishing and coastal communities to have a vibrant future.
We believe that the effect of this amendment would have a profound implication for the existing quota system. I know there are critics of the current regime, but it is also not without its supporters. Indeed, there has been considerable investment in the regime, and it has allowed our quotas to be well-utilised. For example, the flexibility to sell or lease quota has proven helpful to fishers as it enables them to continue to fish for certain stocks when there has been more of an abundance, or if a fishing stock for which they have a quota is not proving to be profitable. It can also be a solution to fishers not being able to fish all their quota for one species because their quota for another species in a mixed fishery has been exhausted.
This is another point that I would like to make to the noble Lord. While under 10-metre vessels may receive only a small percentage of the total UK quota, they receive a greater share of the stocks that are important to them. For example, in 2018 around 77% of the weight and 78% of the value of UK under 10-metre landings were from non-quota species such as crabs and lobsters. The UK Government recognise the need for balance between continuity in the existing system and opportunities for change in future. That is why the fisheries White Paper noted that existing quotas would continue to be allocated using the existing methodology but that additional quotas negotiated will be allocated using a different methodology. This approach has been broadly welcomed across the industry, which agrees that this is a sensible way to proceed—learning, piloting and ensuring that the industry is not destabilised. That really is an important feature of this matter. We do not wish the industry to be destabilised; in fact, quite the reverse.
I say to the noble Lord that I think the amendment rocks the delicate balance between the certainty of the existing system and the new opportunities that new quota would bring. I also have to say at the beginning of this Committee stage that what resonates with me is that not only has the Bill been through an earlier phase in the other place but it has been worked out really strongly and collaboratively with the devolved Administrations. I say to your Lordships, as we embark upon this particular voyage, that it is important to recognise that this is a piece of work that we are also legislating for the devolved Administrations, and the points that my noble friends have made are extremely pertinent. On that basis, I hope the noble Lord will feel able to withdraw his amendment.
My Lords, I thank the Minister for his reply. The noble Lord, Lord Lansley, made an interesting and important point. He assumed that this was already the case, but the British courts do not see it that way. The Minister, now Secretary of State, tried to reallocate quotas towards the under 10-metre fleet, but that was disputed within the legal system. There is an underlying assumption here that this is a privatised resource, not a resource of the nation. That is why, to deliver what the noble Lord, Lord Lansley, wants, it is important to have an amendment like this in the Bill.
As the noble Earl, Lord Caithness, pointed out, this makes no difference to the quota allocation in Scotland: the devolved management authorities can make what decisions they want in allocating harvesting rights in those territorial areas. We are saying here that, ultimately, fundamental ownership of those rights is not for keeps, whereas at the moment they can be interpreted that way. I am not suggesting that, as part of this amendment, we should not allow a degree of certainty and ability to invest, but, as the noble Baroness, Lady Worthington, put it very well, these rights are in trust to the nation.
As to how one interprets “the nation”, I see our fishing stocks as a national resource, not as devolved. Clearly, however, how they are shared out and used is an issue for the devolved authorities. I look forward to the later amendments in the name of the noble Baroness, Lady Worthington, which come back to this subject, but I believe that this is fundamental to the way in which we should view this national resource and how that affects policy decisions as we go through this Bill and make fisheries policy. But, for the moment, I am content to withdraw my amendment.
My Lords, as the Minister said, we have here a list of objectives of great importance. I would not disagree with most, but one or two I have an issue with. There is always a danger in having too many objectives: which is the important one that guides regulatory authorities and which guides legislators in drafting subsequent secondary legislation? That is difficult, because it is almost impossible to meet all objectives at the same time. This amendment, and the others in my name—Amendments 6, 10 and 27—are based on my belief that sustainability is the most important objective. I take “sustainability” as here meaning the aquatic biosphere and the health of our fish stocks.
I do not accuse the Government of putting it this way, but the Bill reads to me as having a muddled sustainability objective, because it is prejudiced by the addition of what is almost a socioeconomic objective. A socioeconomic objective is very valid. In fact, one of my amendments in this group states that there should be a socioeconomic objective. The sustainability objective should, however, relate to the marine ecology, fish stocks and the wider marine inhabitants. I therefore suggest that we leave out subsection (2)(b), which states
“the fishing capacity of fleets is such that fleets are economically viable but do not overexploit marine stocks.”
That is a socioeconomic objective and should go under that heading. The sustainability objective has to be the lead objective. There are various ways of sorting out the socioeconomic objectives, including financially, and that is how we should do it.
We need clarity; we need the sustainability objective to be the prime objective, and we need it to be well policed. That is why my Amendment 27 would bring in the office for environmental protection. I would be interested to hear what the Minister says. He may tell me that this is unnecessary, and I could well be persuaded that it is, but it is vital that that office, once founded and operational, has full oversight of the fisheries industry and the protection of our marine environment. I beg to move.
My Lords, Amendment 7 is in my name. I support many of the comments made by the noble Lord, Lord Teverson. My amendment would change Clause 1(2)(b) simply to state
“the fishing effort does not overexploit marine stocks.”
The Bill states
“the fishing capacity of fleets is such that fleets are economically viable but do not overexploit marine stocks.”
The purpose behind trying to simplify the provision is to make it clear that we cannot have a sustainable long-term fishing effort if we overexploit stocks. That should not need to be said, but we have seen routine overexploitation of stocks as a consequence of how the common fisheries policy is interpreted, with member states then allocating quota to private fishing enterprises.
To state first that fleets should be economically viable and then to qualify it by saying that they should not overexploit marine stocks gives entirely the wrong impression. It implies that we are to continue with the belief, commonly held in Europe, that fishing rights and the economic viability of the fishing industry are the first and foremost concerns. That speaks to short-term political considerations because these are entities that employ people and pay taxes. My amendment tries to correct for that short-termism endemic to political thinking by stating that it is the sustainability of the stock that we should regulate for, not the commercial viability of the entities that exploit it. The latter is entirely what has been wrong with the common fisheries policy since we have been in it. There is an assumption that the exploiters’ rights should come first, with the environment an afterthought. We must turn that around. It is short-termism not just politically but in the context of the changing climate. Nothing from now on is business as usual; everything is shifting. We must put the resilience of our marine resources at the heart of everything we legislate on and at the heart of everything we do today in considering the Bill.
My amendment would simply take away the qualifier; there is no need to qualify this. It is simply logical that we legislate so that we do not overexploit fishing stocks. That is the only purpose of this legislation. Therefore, it must be stated unequivocally in the Bill.
My Lords, I support the amendment in the name of the noble Baroness, Lady Worthington. I regret that we have to say it, but it is important to point out that there will be no socioeconomic benefits if there are no fish left. The cod fishermen of Newfoundland would understand this clearly. Apart from that, the noble Baroness said exactly what I needed to say.
My Lords, I have just one thing to say about this group. Amendment 6 addresses an issue we discussed at Second Reading: managing so many objectives. The noble Lord, Lord Krebs, drew the attention of the House, forcefully and compellingly, to the way in which the sustainability objective in the Bill, as drafted, includes socioeconomic objectives. They ought to be identified and listed separately. To that extent, I support Amendment 6. Noble Lords will be aware that it includes the sentence:
“The sustainability objective shall be the prime objective”.
Not everybody is in favour of that, but I think we need to say it. My noble friend Lord Randall was talking about Amendment 7, but the same thought applies here. He is quite right that if we do not sustain our fish stocks all the other objectives will be vitiated. It has to be clear that there is a first objective, even though it would be beyond this Committee to list, sequence or rank the others. However, the joint fisheries statement will probably have to do something of that kind, at least, to show how they are being interpreted and balanced. I do not envy it that difficult task. The Committee should look carefully at Amendment 6 and see whether it is possible to incorporate its principles into the Bill before it leaves this place.
My Lords, I added my name to Amendment 2 and would have done so to Amendment 6, had I been allowed, but there were too many subscribers. I support Amendment 2 because, as many noble Lords know, the existence of intergenerational poverty and deprivation in rural areas has long been of concern to me. While the numerous villages and market towns throughout rural England all have their problems in this respect, there is no doubt that coastal communities suffer more than most. The main reason for this is that an ordinary market town can survive, and sometimes thrive, on services maintained by its surrounding farmers, businesses and maybe even wealthy retirees. However, a coastal community, by its very geography—I realise that I am straying into the realms of the bleeding obvious here—only ever has 50% of the catchment of an inland market town. Coastal communities therefore struggle. The sea provides very little except fish and tourism, with, perhaps in the future, some form of energy added to that mix. It is therefore important that a firm part of our fisheries objectives should include the socioeconomic objective.
I totally agree with Amendment 6 that the sustainability objective should always be the prime one. I support that, maybe even to exclusion of Amendment 2, as the noble Lord, Lord Teverson, said. As the noble Baroness, Lady Worthington, said, we need these coastal communities, and their harvest, to survive in the long term. In the past, I always said that one of the problems with the common fisheries policy is that the children and grandchildren of today’s fishing communities never get a vote. We now have the chance. When we repatriate our fisheries policy, we must always think of the socioeconomic prosperity of these grandchildren.
I also support Amendment 27, which puts the monitoring of the sustainability objectives firmly in the hands of the OEP in future. That makes very good sense.
Returning to Amendment 2, a key part of the socioeconomic objective should include recreational sea angling. There is not much about recreational angling in the Bill, which is fine because there is not much to say. I see that the noble Lord, Lord Grantchester, has tabled an amendment on this point; I came across that quite late in the day. The socioeconomic benefit of recreational angling to coastal communities is huge. Even in 2012, the latest year for which I could get hold of statistics, the sea angler spend was £2.1 billion locally, supporting more than 20,000 local jobs. They say that a fish caught with rod and line is worth at least six times more than one caught in a net. Recreational fishermen use local boats and local crews, and they use local pubs, hotels, shops, garages, car hire et cetera. All of this is vital to the socioeconomic objectives in this amendment and needs nurturing.
My Lords, it is with considerable diffidence, and I do mean that, that I make any contribution to this discussion, and I do not intend to make any more, partly because it is impossible to live quite as far as I do from the coast. Perhaps we inlanders should remain largely silent in these discussions, but I found it almost exhilarating, I think that is the word, to hear specialists—I am not one, which is why I will not contribute any further—making points all related to the principle that the noble Lord, Lord Cameron, has just enunciated, which is that we are talking about the consequences of the repatriation of our fishing policies.
For me, as a Brexiteer, it is exhilarating, and I am not exaggerating, that these discussions can take place in the context of knowing that our coastal waters will be like those of Iceland—although I know that fishing is a lot more important to the overall economy of Iceland than it is to that of the United Kingdom. In all the discussions of the details of the various amendments, that is surely the basis on which this debate is taking place. Let us not miss the wood for the trees: the wood is precisely that in a democracy a Chamber of Parliament is discussing how best our nation should use its resources in a way that is accountable; which of course it never was when it was entirely a European responsibility. The Council of Ministers is nothing like a responsible body in the way that this is.
I will not go any further down this route, the Committee will be relieved to know, but I just wanted to point out how happy I feel about this debate.
My Lords, the Committee will note that I am in agreement with the noble Lord, Lord Grocott. It does not happen all the time and will not happen in future, I know, but today we are very much in agreement. What he says hinges very much on the agreement we get with the EU, because however sustainable we are, if the fish decide to move and the EU has different sustainability goals, the fish we have so carefully sustained will be harvested by the ever-hungry Spanish fleet and others that will be poised outside our waters—some of them will even be allowed in—and will be taking what they can.
I hope my noble friend the Minister will confirm that all the objectives that are so well set out in the Bill have the aim of sustainable development, because sustainability really matters. If all our objectives adhere in that way, there is hope for the grandchildren that the noble Lord, Lord Cameron, mentioned. He also made the very important point about coastal communities. It is not just the fishing fleets but the whole coastal communities and the people who feed off them who are important in the socioeconomic goal. We need to take a wider look at this between now and the next stage.
What has not been mentioned so far with regard to sustainability is human health. Can my noble friend say how many of the fish caught are used for fishmeal? The latest statistic I can find, which I looked up on the internet, dates from 2008 and claims that a third of the world’s fish is used for fishmeal. What is the point of fishing—some may even ask what is the point of agriculture—if not to provide a healthy, sustainable diet for human beings? That ought to take priority over producing fish for fishmeal. I hope that that will be taken into account in the sustainability goals my noble friend is aiming for, because health and diet have deteriorated badly in the western world and fishing is one area which can help us on that.
I hope my noble friend will also bear in mind trade—another area which could undermine our sustainable goals. If we have a strong, sustainable policy but by trade allow fish to be caught in an unsustainable way, that would undercut our market and be to the detriment of the Government’s whole policy.
I come now to the tricky question of the batting order of our goals. There is a good argument for putting the environmental sustainability objective first, but I wonder whether that is right and whether it would not be better to leave it as it is, agreed with the devolved Administrations. It is currently top of the list and, to me, probably the most important, but I am not yet convinced about singling it out.
My Lords, this has been a very interesting discussion—a counterpart to the discussion on the first group, where we failed to agree. This had a lot more agreement, though there are drafting issues that need to be addressed in the Bill if we are fully to realise the sorts of changes that are in everybody’s minds as we approach this opportunity, as my noble friend Lord Grocott described it, to improve what we do in relation to our fishing and fishing resources, as we have been trying to do for some time. I point out to him that, although it is nice that he is happy and feels joyful about this debate, the real test will be whether we end up with something different from a simple rehash of the existing common fisheries policy. That test is now ahead of us as we begin to drill down into the particularities of the Bill.
I will speak to Amendment 8 in the name of my noble friend Lord Grantchester, who we did not think would be here in time to speak but luckily has appeared—almost in time; he will take over from me as we go through the Bill—and Amendment 9, tabled by my noble friend Lady Jones of Whitchurch. Amendment 8 is a probing amendment to ask the Government to specify more clearly what “economically viable” means in practice under the Bill and how it might be applied, and to gain a clearer understanding of the relative importance of viability compared with sustainability, which has been the theme of most of the contributions so far.
Amendment 9 targets the same sustainability objective and seeks to bring the term “maximum sustainable yield” into the Bill. At present the Government favour a phrase which we do not think has quite caught the essence of what we are trying to do about overexploitation of marine stocks and which seems to offer less clarity than the forward-looking point made by just about all noble Lords: there will be no fishing unless we have a sustainable stock on which to operate.
All noble Lords agree there has to be a vibrant fishing industry. It is part of our heritage as an island nation and, as we will discuss during the Bill’s passage, our catch both helps feed people here and is sold abroad to others who want to buy these products. As the Minister said in his opening statement, we are talking about a highly organised industry. Hard-working fishers being fairly rewarded for their work at sea is important. It is a very physically demanding and often dangerous job, and they have to endure long periods of separation from their loved ones. They should be remunerated accordingly. The economics of the industry must be geared to ensure that there is something there for everybody, not just the fishers; the ports and processing plants need to make their fair share. This is important if we are to encourage them to contribute to the climate change objective—something that will be the focus of subsequent debates but has already been raised.
While we want a viable fishing fleet for many years to come, we have been in meetings with outside groups that feel that the current wording of the Bill may allow the economic to trump the environmental, particularly, as I have already said, as it refers to overexploitation rather than maximum sustainable yield. If that were to be the case, ironically, we would find ourselves in no better position than we are under the common fisheries policy. It would make this Bill a missed opportunity to put sustainability front and centre of the new approach. There is enough support around the Committee to suggest that the Minister might want to look at this carefully when he responds.
I am aware that the Minister has met many Members of your Lordships’ House and has made time to discuss amendments. I understand that these discussions have been valuable, and I hope that he will be able to offer the same reassurance to others who wish to join the debate now and in the future. I hope that when the Minister responds, he will confirm what he envisages happening if the second part of the sustainability objective cannot, despite the best endeavours of the fisheries authorities, be met. Would boats be allowed to overexploit stocks to ensure their viability? If not, what options would the Government or the devolved Administrations have available if they wanted to step in? This is a tricky balancing act. It is certainly not easy, and I know the Minister appreciates that and takes it seriously. I look forward to him providing further detail on the Government’s approach.
My Lords, at Second Reading I made it clear that sustainability is at the heart of the Bill, so I am pleased that one of the first discussions we are having in Committee relates to this area of utmost importance. As the noble Lord, Lord Stevenson of Balmacara, said, this work involves balance. Balance is necessary in these matters and is why our work with the devolved Administrations has been so valuable but intricate.
The Government’s view and that from our discussions with the devolved Administrations is that sustainability is often considered a three-legged stool, consisting of environmental, social and economic factors. To achieve the true sustainability of a healthy environment, thriving communities and a vibrant industry, it is important that a balance exists between them. That is a point that, in the wrestling of this, was referred to by the noble Lord, Lord Stevenson. They are also not mutually exclusive. For instance, if fish stocks are managed at sustainable levels, the stocks are protected into the future, while allowing the fishing industry to remain profitable and able to provide benefits to coastal communities and beyond. That point was referred to by the noble Lord, Lord Cameron of Dillington, and my noble friend Lord Caithness.
The fisheries objectives in the Bill work together to set out the core principles to achieve a successful and sustainable fisheries management regime, with the joint fisheries statement setting out the policies that will contribute to achieving our objectives. While I therefore fully support the aim—and I emphasise aim—of Amendment 2, which seeks to ensure that socio- economics are included within the fisheries objectives, I believe it is unnecessary and will explain why.
The sustainability objective currently sets out a requirement in the Bill that fish and aquaculture activities are
“managed so as to achieve economic, social and employment benefits”.
The Bill includes a number of objectives relating to environmental sustainability, while also recognising the need to take into account socioeconomic issues. Given that, in response to Amendment 6, I should like to set out in more detail what we aim to achieve by seeking a balanced approach to the objectives set out in Clause 1. I also understand that Amendment 10 in this group further seeks to change the Bill in the context of Amendment 6.
Before the Minister sits down, may I enquire in good faith whether we are saying that we have taken back control from Brussels, only to cede it to Scotland? It would be a waste of time if every answer is “We cannot do anything, because we have had a really delicate discussion with our devolved Administrations”.
We are still the UK Parliament; this is an important issue that has been repatriated to us first, and then we will repatriate it through devolution. Should we need to change the devolution arrangements, we will. Perhaps I am speaking out of turn, but surely we are not taking back control from Brussels only to give it to Holyrood.
We have had very successful and collaborative discussions and arrangements with all the devolved Administrations. They have taken this matter very seriously, and we are legislating on behalf of the devolved Administrations as well. I do not think many noble Lords are seeking to change the devolution arrangements through the Fisheries Bill. That would be unwise and not sensible.
We are seeking to have sustainability at the heart of the Bill, but sustainability—as the UN describes it—is not just environmental; it is a balance. Clearly, we want fisheries stocks which enable communities to prosper. That is the whole thrust of this, and why it is a package. I say to the noble Baroness: I do not see it in those terms. We are collaboratively working with our friends and partners across the United Kingdom, on something which requires balance. Sustainability is at the heart of the Bill, and that is why I have made the remarks I have.
To follow up on what the noble Baroness has said, we understand the delicacy of the situation and that considerable discussion has preceded the Bill we are debating today. I wonder whether she has a point: if it is already all sewn up and too difficult to change, what is the point? Will the Minister reassure us that this amendment is not just being turned down because it would be too difficult? The mood of the House seems to be that this is worthy of further consideration, if not necessarily being voted through.
No, my Lords. Obviously, I recognise that the noble Lords who have spoken feel particularly strongly about environmental sustainability. I have argued, what the Government feel is a compelling case, that sustainability is a balance. Therefore, the package we are bringing forward has been worked on not with one devolved Administration, but with all of them.
It has always been the point that noble Lords need to make a compelling case in all matters. The Government and the devolved Administrations have worked on this, mindful of observations made during the period of, let us say, the Fisheries Bills. That is how I would describe it; it is important we have these considerations. I have been clear—as when I referred to the UN—that sustainability has a range of points to it, and that is what I have been seeking to describe.
My Lords, I apologise that I did not speak earlier in the debate, but I will read Hansard very carefully tomorrow. From what I gather, my noble friend has indicated that, for some stocks, we do not have data available, and some of the data we do have is 12 years old. I agree with the view of the noble Lord, Lord Grocott: I am excited by the Bill because it gives us an opportunity to move forward in a sustainable way. However, we need information on which we can base our assumptions. Will the Minister indicate where there are gaps in that information and what is being done about it? Referring to my noble friend Lord Caithness’s comments on the whole question of trade and standards, it is essential that we have information on which we can base the decisions we have taken. I have listened carefully to my noble friend and know that an enormous amount of work has gone on with the devolved Administrations—I am perhaps happier about that than some other Members of the House are—but we need as much information as we can get at this stage.
For me, sustainability has to be key: at the end of the day, you cannot fish if there are no fish. If we do not have the data and information that we need, how can we make the assumptions that we will be dealing with in the Bill? There is an amendment to come shortly on the question of discards, and we will return to this issue in that debate. I have one or two queries, but if the Minister cannot answer them at the moment, perhaps he will look into it—or somebody will—so that we have a better overall picture of the sustainability side before we come back on Report. That would be immensely helpful.
I made it clear that the precautionary objective already includes the clear objective to restore all marine stocks to sustainable levels. We are very clear that we need to work through all stocks—that is what the fisheries management plans are intended to do—so that for those stocks for which we do not have sufficient information, there is this precise precautionary objective. As my noble friend Lord Lansley referred to, there is a difficulty in trying to put these objectives in some order of priority. As I say, we are seeking to improve all stocks because the truth is that, at the moment, we do not have an assessment of all stocks. That is precisely why, picking up the point raised earlier by the noble Lord, Lord Grocott, it is an enormous opportunity for us to look now across the whole of the marine environment at all our stocks.
This will not be sorted out overnight; I do not think any noble Lord expects there to be a magic switch and, suddenly, we are now responsible and it can be turned around immediately. But the whole purpose of the structure that we have put in place is precisely to address the sustainability of all stocks.
My noble friend gave a comprehensive answer, but can I make one suggestion that might help in driving forward our sustainability objectives? He has made it very clear to the farming community that there will be public money for public goods. Surely exactly the same argument is true for the fishing and coastal communities: if they follow the sustainability line, there will be public money for public goods. Perhaps that would help to sell the argument.
During this Committee, I think we will probably go on to talk about some of the further arrangements for financial assistance. Clearly, the Government see this as a vital interest, a source of food and an opportunity for the whole of the coastal community. I agree with the thrust of what I think my noble friend Lord Caithness is saying: this is an area contained in the Bill. As has been mentioned, there will be a need for a replacement of the European funding, which we will discuss again. I am sure there will be ways in which financial assistance to support coastal communities will be considered and will come forward.
My Lords, I believe the noble Earl, Lord Caithness, was going beyond grant funding and referring to the allocation of fishing rights. That confers a financial benefit to the recipient of those rights, so it is much broader than just grants.
I would like one more chance to narrow down the point on which we were exchanging before the other two very good contributions came in.
The noble Lord has a reputation in this House for being very easy to talk to and very willing to engage in debate. I am slightly trading on that because, in my experience, on any Bill there is a worry that the Minister will get it drummed into him by those sitting in the Box that he must never concede anything. Sometimes, however, we can be in quite a difficult mode, when good points are made but the willingness to concede is not there from the Minister concerned. I know that the noble Lord is not like that. It may not happen on the point that we have been discussing, although it is a very good one from the noble Baroness, Lady Worthington, but issues will come up in future amendments to do with the workforce health and safety, on which the Committee may feel that a change in wording is possible. Will he just confirm, for the sake of allowing us to go forward, that he is not against the possibility of that happening and that, if it were the case, he would undertake the necessary consultations that might be required to bring the devolved Assemblies, and others who signed up to the previous version of the Bill, up to the new standard that will be set by this House?
I will conclude on this, otherwise the “Ah, buts” will lose the force of the sustainability point of this debate. It is clear, I believe—as I always have—that the House and your Lordships need to make a compelling case, which a government Minister will always want to listen to. If a compelling case is made, as I have said previously, my answer will be, “Gosh, I wish we’d thought of that.” I emphasise that the Bill has been considered over a very long time. We have one go at this Bill and there have been a lot of representations. It has gone through a mincer in a way that most other Bills do not. Given our very close connections and our responsibilities, and given that fishing is devolved, we have worked collaboratively and positively with the devolved Administrations. I emphasise to the noble Baroness, Lady Worthington, that I do not use that as an excuse. It is a statement of fact that we are legislating on behalf of all parts of the kingdom. That is really what I wish to say at this point.
My Lords, I thank all noble Lords for probably one of the most important debates during this Committee and for all the points made. They were made pretty much in the same direction, even if they did not totally agree on the detail.
I was very grateful for the intervention of the noble Lord, Lord Grocott—I thought it was fantastic. The sad thing to someone like me is that, apart from relative stability and technical regulations, which are not dealt with in the Bill, we could have done everything else over the last 40 years, but we did not because we just went along and did what was easiest. We did not need to let our quotas go to foreign owners, we could have changed the balance between the large and small fleets completely, and we could have put far more European money into our coastal communities when they did not have enough quotas. We could have done all those things, but we did not. However, the noble Lord was absolutely right: we have here an opportunity to really open our minds. The Minister says, “We’ve gone through all of this before, it’s been looked at before and we’ve talked to all the other sides”, but we have had a break, we are now out of the European Union, we have opened our minds and we have had some really good suggestions on the Bill. We should not be railroaded by past negotiations. Clearly, devolution is key—we do not want to change that settlement in any way—but that cannot prevent our making some changes.
One fundamental thing, on which I disagree completely with the Minister, is that referring to “balance” between socioeconomic issues and sustainability was exactly the argument that Ministers used on the common fisheries policy from the 1980s to about five years ago, when the whole regime changed. Because of that so-called balance, stocks disappeared from the North Sea and the Baltic Sea and were depleted from western waters. If we do not decide to make sustainability a prime objective, that is what we will end up with. The history shows that the politics takes over from the science.
I was very pleased that the noble Lord, Lord Randall, mentioned Newfoundland. I went out to Newfoundland in 1996 at the height of the conflict with the Portuguese and the Spanish. I went out on an aeroplane with the Canadian fisheries department to look at the line of big Atlantic fishing vessels fishing right along the EEZ line. I saw the communities of St John’s in Newfoundland that were unable to fish their own waters because there was nothing left. That was due to the short-term socioeconomic objective taking the place of the sustainability objective. That is exactly what you get and exactly what we must not have in this country, whether in Scotland, Wales, Northern Ireland or England. We cannot afford that.
If I was chief executive of a company and somebody gave me eight different objectives and did not rank them, the first thing I would do is ask the chairman to fire the non-executive directors, because it is absolutely impossible to have eight equal objectives in any subject. That is for running a company; if you are running the marine environment of a nation, surely it is far more important.
To come back to the point from the noble Lord, Lord Cameron, we absolutely need a socioeconomic objective. The noble Earl, Lord Caithness, is absolutely right as well—we will come to the financing part of the Bill. There are amendments to that part to say that we will need to intervene when there is a socioeconomic problem and that we should not be afraid to do so. We should protect those communities in that way. We should not pretend that we are protecting them by letting people go out for fish stocks that are not there and are not sustainable.
I am very grateful to the noble Baroness, Lady Worthington. She made her argument very strongly. The same goes for the noble Lord, Lord Stevenson, on the points he made. Although my amendments may not be perfect, I have tried to stick within the Government’s framework by changing around some of the words but using the Government’s own settlement with the devolved authorities. I am absolutely sure that we will come back to this on Report, but at this point I beg leave to withdraw my amendment.
My Lords, I am grateful for the meeting that I had prior to today with my noble friend the Minister. I assure him that this is indeed a probing amendment. It enables me to press him on why the original objective in the initial Bill, which clearly stated that discards were an objective under Clause 1, has been dropped and replaced with a bycatch objective. The House had the chance to debate the difficulties involved in the landing objective on reports adopted by the EU Energy and Environment Sub-Committee before I was a member of it, but I will press my noble friend very specifically on the narrow point of discards to ask him what the Government’s policy is in connection with the Fisheries Bill, and why they have removed the discards objective in Clause 1 and replaced it with one for bycatch. There is clearly a difference between those policies of reducing discard as a result of the use of bycatch.
I was grateful for the conversation I had with my noble friend but, separately and elsewhere, I would like to raise the possibility of using some of the bycatch of inshore fishermen in ways currently not allowed. Can he take the opportunity to explain how the Government intend to reduce discard and bycatch and what measure of enforcement is envisaged? As far as I can see, the Bill in its present form is silent on what the enforcement and implementation measures for discards will be. I give notice that I have tabled two more amendments on discards.
My Lords, I take the amendment very seriously. I will point the Minister in the direction of Clause 1(6)(c) refers to,
“bycatch that is fish is landed”,
and then goes on to say,
“but only where this is appropriate”.
I would be glad of some clarification of that. It continues that it,
“does not create an incentive to catch fish that are below minimum conservation reference size”,
and perhaps that is exactly what is meant by it. Certainly, we have had discussions over the weeks about discards, about which I think many of us are concerned. My question is on the phrase that they have used here. Is the Government worried that moving from the discard to the new bycatch will help to disincentivise people from catching fish that are below a minimum standard? Why was the decision made to change it from discarding to the particular wording of the Bill? When we come at a later stage to discuss how we can look at the way we record and know what is being discarded and what is being landed at ports, it will be immensely important. I am just a little bit unhappy with the wording that we have in subsection (6)(c), and would be glad of some clarification.
My Lords, I rise to speak to my Amendment 16, specifically on subsection (6) on page 2 of the Bill; it is grouped with this Amendment 3 on page 1, on the issue of discards, or “bycatch” as referred to in the Bill. It complements the tabling of Amendment 3 by the noble Baroness, Lady McIntosh of Pickering, which alludes to the inclusion of a dedicated objective on fish discards among the list of objectives. I also thank the noble Baroness, Lady Byford, for her probing on this.
For a variety of reasons, and as I am sure we will hear from the Minister, it is virtually impossible to avoid catching some of the wrong species—or, indeed, the wrong sized members of the right species—when fishing. There have been some great advances in techniques and technologies, but some degree of bycatch remains an inevitability.
The Bill's bycatch objective, which is lifted from the common fisheries policy, rightly seeks to reduce the catching of fish that are below minimum conservation size and to ensure a proper audit trail for those caught. The latter also raises issues around monitoring and recording; this will in turn contribute to better data that can be used to inform future quota decisions.
Paragraph (c) of subsection (6), which my probing amendment proposes leaving out, refers to allowing bycatches to be landed
“only where this is appropriate”
and an incentive to catch undersize fish is not created as a result of the landing. As we sought to make clear in our explanatory statement, we wish to understand the circumstances in which Ministers believe the landing of bycatch will be “appropriate”. Presumably this is meant in the context of the landing obligation, in order to prevent fish simply being discarded back into the sea—a practice which we have fought for many years to bring to an end.
If this is the case, would it not be better for the Bill to be explicit in this regard, and for the references to the prevention of incentivising the landing of bycatch to make clear that such fish cannot be sold for human consumption, thereby producing an economic benefit? Or, if the phraseology does not relate purely to the landing obligation, perhaps the Minister could outline which other circumstances are deemed as being appropriate for landing bycatch at ports?
We are very much probing at this stage of proceedings, but I think I speak on behalf of many across your Lordships' House when I say that we need confidence that, whether we use the terms “discards” or “bycatch”, the Government and devolved Administrations will be properly equipped to build on recent progress and answer the wider probing made by the noble Baroness, Lady McIntosh of Pickering.
My Lords, the Government remain fully committed to ending the wasteful discarding of fish, acknowledging the impact this can have on fisheries management and the marine environment. I fully support that the issue of illegal discarding should be addressed within the fisheries objectives. In doing so, we will ensure that policies in the joint fisheries statement will focus on this important area.
The prevention of illegal discarding is addressed in the fisheries objectives through the “bycatch objective”, which sets out a series of “sub-objectives” to address the issue of illegal discarding. These include avoiding or reducing bycatch, ensuring that catches are recorded and accounted for, and ensuring that fish stocks are landed. It is overfishing and the catching of unwanted bycatch that result in illegal discarding, and the objective has been named the “bycatch objective” to address the root cause of the issue. For example, unreported catches, whether landed or discarded, contribute significant uncertainty to the scientific assessment process. Such uncertainty enhances the risk that stocks are fished at levels beyond MSY.
One limb of the bycatch objective is that catches are recorded and accounted for. We will improve the accuracy of the data available on fishing mortality and enable sustainable quota setting that avoids overfishing. I therefore believe that my noble friend’s aims are already met through the existing bycatch objective. An additional discards objective—which the amendment does not seek to define—risks adding complexity and confusion when read in conjunction with the existing objective, which already serves the purpose of setting a clear framework for tackling discards.
In future, we will have the opportunity to be creative and adopt new measures and flexibilities outside the current common fisheries policy toolkit, to implement a workable discards ban. The Fisheries Bill—we will no doubt come on to this—sets out provisions to introduce one such flexibility: a discard prevention charging scheme to provide a mechanism that allows fishers to pay for additional quota to cover any excess catch that would otherwise push them into illegal fishing. Alongside the MMO and industry, Defra is exploring the use of remote electronic monitoring—REM—as a cost-effective and efficient way of monitoring fishing activities, including the effectiveness of selected gear types, and ensuring compliance.
I am grateful to the noble Lord, Lord Grantchester, for saying that his amendment is a probing amendment. I am aware that he seeks to understand the circumstances in which the Government believe that landing bycatch will be “appropriate”. I believe that this is something to which my noble friend Lady Byford also referred. Under the common fisheries policy—CFP—the landing obligation, which was fully implemented last year, requires all species subject to catch limits to be landed and counted against quota rather than discarded at sea, subject to certain exceptions. Now that we have left the EU, the UK will develop a discards policy that is tailored to our industry. It will have an emphasis on reducing the level of unintentional and unwanted bycatch through sustainable and selective fishing. However, even when our fishing practices are highly selective—this is a point that the noble Lord absolutely recognised—there will be instances when this unwanted bycatch cannot be avoided entirely, given the high number of mixed fisheries in UK waters. The sub-objective that the noble Lord seeks to remove with his amendment specifies that bycatch is landed only if appropriate. This is because, for example, if catch is scientifically proven to have high survivability, it could be beneficial to the long-term sustainability of the stock for it to be returned alive to the sea, rather than landed dead. I use that as an example that we need to think through.
However, the crux of the amendment is that the Government would not have to describe how and when bycatch would be landed in the joint fisheries statement. I have already set out the critical importance of understanding what is taken from the sea; removing this sub-objective could undermine our future discards policy and our ability to advance our scientific understanding of the state of our fisheries.
I should add an embellishment for my noble friend Lady Byford. Where we refer to a good chance of survivability—which I have already raised—there could, for instance, be high-survivability exemptions. Where it is accepted that unwanted catches of certain species in certain fisheries are unavoidable and costly to handle, a small percentage of the catch is permitted to be discarded through the de minimis exemptions.
I say in particular to my noble friend Lady McIntosh, with whom I was pleased to discuss this matter, that in further consideration of the Bill the word “bycatch” is not intended to denigrate the absolutely clear requirement that discard is addressed; rather, “bycatch” is a better description of dealing with the issue and its root causes. My noble friend knows that there are, as I said, references to “discards” in the draft legislation. The point about bycatch as an objective is precisely that we think this wording covers and addresses the matter in a wider sense. However, I think we all want the same objective, and I hope that my noble friend will feel able to withdraw her amendment.
My Lords, I am grateful to those who have contributed. The amendment tabled by the noble Lord, Lord Grantchester, is entirely consistent with my amendment, in the sense of probing. I am a little disappointed that I have no greater understanding of why the discards objective was dropped between the initial Bill that was published and this version. While I am sure that it is of interest that remote electronic monitoring equipment is being proposed, my noble friend did not explain whether or not that would be on a voluntary basis. Other amendments that I have tabled at later stages will provide him with the opportunity to do so. Also, will foreign fishing boats be policed? Will they also be required to have such monitoring systems in place?
In summing up, my noble friend did not actually respond to whether or not the monitoring equipment would include cameras but, as a subsequent amendment that I have tabled relates specifically to cameras, I would be grateful if he could reply on that specific point at that stage.
I emphasise that even if we use “discards” or “bycatch” interchangeably in the way that we seem to now, for the policy to work effectively, and for more fish to be landed so that we have a better idea of the state of the current stock, it must be effectively policed or it will fall flat on its face. I will return to this issue in later amendments, but at this stage I beg leave to withdraw the amendment.
My Lords, in moving Amendment 4 in my name I shall speak also to Amendment 25, which is grouped with it. I also seek permission to speak to Amendments 47 and 56, which will come up later in Committee but are related to this point, so I hope I can speak to all four in this speech.
The purpose of Amendment 4 is to add a new fisheries objective to the Bill stating that there is a “marine planning objective” in relation to fisheries management. The reason is that there is a real need to integrate fisheries into our wider marine planning processes. The phrase “fisheries exceptionalism” has been used. In essence, what is being got at there is that the way we plan for our use of the marine environment for fisheries is very separate from our wider spatial planning that we use for other activities that occur in the marine environment. Sometimes we forget that, although fishing is a hugely important part of our marine environment, it is certainly not the only economically productive activity that occurs within our seas. It is important that we integrate fisheries into marine planning and that marine planning integrates fisheries into its processes.
Therefore, there is a very clear objective missing from the Bill, which is to accomplish that wider integration in public policy. Many users of the marine environment interact with fisheries, not least the growing and highly profitable energy sector. We are shifting towards greater use of our marine environment for the production of sustainable energy. That has an interesting intersection with fisheries: the offshore wind farms that we are putting into the marine environment can act as no-take zones for vessels over a certain size, and as hatcheries and protected areas that allow fish stocks to return to an area that would otherwise be decimated through overexploitation by large vessels with large gear. There is a real benefit to be gained from integrating fisheries with our spatial planning.
It is not just about reducing fishing effort, although another key part of planning—now in UK law—is the protection of areas of high biodiversity interest or sites of scientific interest in the marine environment. We have a marine planning process that designates marine planning areas, some of which are working well while others need to be better thought-through and planned. It would be much more effective if, when setting these new fishing policies, we think of them as an integral part of our marine planning for conservation.
There are other uses of the marine environment that require planning, including dredging the shipping channels. It is an environment that requires careful management and balance—I agree with that—but not to mention the existing marine plans that are required to be made, and not to integrate them with the fishing objectives, feels like a missed opportunity. I tabled this amendment in the hope that we can have a wider debate about spatial planning and how it relates to fisheries management. It is not a negative proposal: it could bring greater benefits as we think about how we manage our seas. I look forward to the Minister’s response, and I hope that we have a good debate. I beg to move.
My Lords, I very much welcome marine planning. I should perhaps declare a past interest as a board member of the Marine Management Organisation, which is responsible for marine planning in England. Last week I talked to Gillian Martin, the convenor of the environment committee of the Scottish Parliament, about marine planning. It is happening in Scotland, too.
I am certainly not advocating this as yet another objective—we have too many already—but it is important that the Bill takes account of marine planning and all the work going on in that field. Today our seas are, to put it mildly, used in multiple ways—for trade, renewable energy, undersea carbon capture and storage, and lots of other areas. I am not sure that the Bill even mentions things such as marine conservation zones, which are part of marine plans and, inevitably, part of the management of the fishing regimes. I would like to think that there was a way to refer to marine plans in the Bill, although not quite in this way.
My Lords, I am grateful to the noble Baroness, Lady Worthington, for tabling these amendments. As she said, they relate to the importance of marine planning and the conservation obligations of the fishing sector.
The Marine and Coastal Access Act is an important piece of legislation, passed in the final years of the Labour Government, of which we are very proud. It already requires the UK and devolved Administrations to prepare marine plans. The point made by the noble Baroness was important: new legislation should incorporate the marine plans where they overlap and apply. With this Bill it is sensible to incorporate them into the joint fisheries statements and the fisheries management plans. We should not risk one piece of legislation overriding the obligations of another: the case for integration is well made.
As marine plans have been with us for some time, there is an argument that they should provide the bedrock on which other policies are built and developed. There is little sense in having marine conservation measures in place if certain protections are at risk of being disrupted by fishing activities authorised under the Bill, so the case for integration is strong.
We have raised previously with the Minister the wider challenge of how all Defra Bills integrate; for example, how this Bill will integrate with the Environment Bill. They all need to interlink and create a bigger whole. I am sure that we will be told that a number of the issues that we raise here will be dealt with in the Environment Bill. We need to make sure that everything is in its place and is interlinked. Everything should be developed as a package. The points made by the noble Baroness about the links between this Bill and marine conservation are well made. As with all these things, it is about finding the right wording and the right place in the legislation, but the principle is one that we should adopt.
My Lords, I should have made another declaration: I am co-chair of the Cornwall and Isles of Scilly Local Nature Partnership. Obviously, being surrounded by sea apart from the Tamar—which is an even more important boundary with our brothers in Devon—Cornwall has a marine interest.
My Lords, I am most grateful to the noble Baroness, Lady Worthington, for her amendments. Together, they would require policies made to achieve the fisheries objectives to be consistent with the objectives and policies in relevant marine plans.
I want to take this opportunity to make it clear that the UK Government recognise the importance of marine plans, which enable the increasing and, at times, competing demands for use of the marine area to be balanced and managed in an integrated way—a way that protects the marine environment while supporting sustainable development. Using our marine resources effectively and sustainably has the potential to provide significant benefits for the UK economy and for coastal communities. The economic contribution of marine-related industries to the UK’s GDP in 2015 was estimated at £27 billion, with scope for further growth.
In England, the East Inshore and East Offshore Marine Plans were published in April 2014 and the South Inshore and South Offshore Marine Plan was published in July 2018. The remaining marine plans for England are out for consultation by the Marine Management Organisation and will be in place by 31 March 2021, delivering the Government’s commitment in the 25-year environment plan.
Marine plans support economic growth in a way that benefits society while respecting the needs of local communities and protecting the marine environment. That is why I understand the importance of the points that the noble Baroness has raised. We believe that what her amendment requires is already provided for. As was referred to by the noble Baroness, Lady Jones of Whitchurch, Section 58 of the Marine and Coastal Access Act 2009 requires public authorities to have regard to
“the appropriate marine policy documents”—
which could be a marine policy statement or a marine plan—when taking decisions affecting the marine environment. The amendments would therefore duplicate this requirement. I am advised that the requirement is already sufficient to meet what I know are the noble Baroness’s positive intentions.
With that explanation and the assurance that I have been advised that Section 58 covers this point and that the amendment would merely duplicate what is already a legal requirement, I hope that she will feel able to withdraw her amendment.
I thank the Minister for his response and explanation. Perhaps there will be an opportunity to discuss this further after Committee, as I am minded to withdraw the amendment. Even if that piece of legislation predates the Bill and states that the planners must take into account certain factors, the amendment creates an objective relating to marine planning, ensuring that the fisheries plans drawn up under the Bill take into account the marine planning aspects. As the noble Baroness, Lady Jones of Whitchurch, said, it is to make sure that the Bill is fully up to date with our marine planning requirements, not the other way around. However, on the basis that we can discuss this further, I beg leave to withdraw.
(4 years, 5 months ago)
Lords ChamberMy Lords, with the leave of the House, I will repeat, in the form of a Statement, the Answer given to an Urgent Question in the other place by my right honourable friend the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office. The Statement is as follows:
“Mr Speaker, on Saturday 29 February the Cabinet Secretary and Head of the Civil Service received and accepted the resignation of Sir Philip Rutnam as Permanent Secretary at the Home Office. On the same day, the Cabinet Secretary announced that Shona Dunn, then the Second Permanent Secretary at the Home Office responsible for borders, immigration and citizenship, would become Acting Permanent Secretary with immediate effect. Allegations have been made that the Home Secretary has breached the Ministerial Code. The Home Secretary absolutely rejects these allegations. The Prime Minister has expressed his full confidence in her. Having worked closely with the Home Secretary over a number of years, I also have the highest regard for her. She is a superb Minister doing a great job.
This Government always take any complaints relating to the Ministerial Code seriously. In line with the process set out in the Ministerial Code, the Prime Minister has asked the Cabinet Office to establish the facts. As is usual, the independent adviser on ministerial interests, Sir Alex Allan, is available to provide advice to the Prime Minister. It is long-standing government policy not to comment on individual personnel matters, in order to protect the rights of all involved. What I can, and will, say is that I know that the dedicated ministerial team at the Home Office, and its superb civil servants, will continue their critical work on the public’s behalf—keeping our country protected from the terror threat; bearing down on the criminals who seek to do our communities and our country harm; and delivering a fair, firm immigration system that works in the interests of the British people. The Home Office works tirelessly to keep our citizens safe and our country secure. We all stand behind the team leading that vital work.”
My Lords, I am grateful to the Minister for repeating the Statement, and for his measured delivery which has given me time to catch my breath after racing to the Chamber.
The events leading to this Statement are extraordinary and unprecedented. Sir Philip Rutnam’s resignation statement, that he had been the victim of a
“vicious and orchestrated briefing campaign”
by allies of the Home Secretary, followed by reports that he was offered, but refused, a substantial pay-off—presumably to leave quietly—illustrates alarming levels of dysfunction at the very heart of government. On Thursday, the noble Lord, Lord True, told the House:
“The current Prime Minister expects the highest standards of performance and behaviour from all his colleagues.”—[Official Report, 27/2/20; col. 278.]
That is quite right. I am sure that I am not alone in thinking it quite strange that, having initiated a Cabinet Office investigation into the facts regarding the Home Secretary’s behaviour, before it even gets going the Prime Minister states his full confidence in her, even describing her as “fantastic” and
“a superb Minister doing a great job.”
Can the Minister answer just two questions? First, can he confirm that the Cabinet Office investigation is into whether the Home Secretary has breached the Ministerial Code in this department or in any other? I appreciate that he cannot give details of investigations, but straightforward confirmation that it is into breaches of the Ministerial Code would be helpful. Secondly, if that code is proven to have been broken, what sanctions are available?
My Lords, in answer to the second question, any Minister holds office at the wish of the Prime Minister and if he considers, in the case of any Minister on any subject, that that Minister is not performing, that Minister will be subject to the appropriate sanctions. As for the noble Baroness’s first question, my right honourable friend answered this in the other House. Allegations have been made that the Home Secretary breached the Ministerial Code and the Cabinet Office has been asked to look at the facts, as reported.
My Lords, I fear that this affair may have some further way to go. There are, for example, various reports in the newspapers that there was a hitlist of other Permanent Secretaries that the Government would like to get rid of. None of us, I think, wants to go down the road of Washington, where relations between members of the American Cabinet and its staff are clearly toxic in a number of ways. Do we not now need some sort of investigation that will be published to re-establish the necessary confidence between Ministers and civil servants, without which effective government is very difficult to carry on?
No, my Lords, the allegation of a hitlist is false and has been denied. All in this House would agree that good government depends on all the elements of a ministry and a Government working well together. I had the privilege of working in the Civil Service as a special adviser in the past and I know that to be the case. This Government wholly respect the role of the Civil Service; they need the Civil Service to be free to give robust advice and there needs to be proper respect between all arms of government decision-making.
My Lords, will the noble Lord clear up one point that was a little ambiguous in his answer to the Leader of the Opposition? I welcome the fact that, in line with the Ministerial Code, the Prime Minister has asked the Cabinet Office to establish the facts—that is clearly very important—but in answering the Leader of the Opposition, the noble Lord said that the Cabinet Office has been asked to inquire whether the Home Secretary has breached the code. However, there are also allegations that the code was breached when Ms Patel was in the Department for Employment and in DfID. Can he assure us that the inquiry will be wide-ranging and will cover that full range of complaints?
My Lords, the undignified whinge in front of television cameras by the former Permanent Secretary at the Home Office certainly shows that he is no Sir Humphrey Appleby. What matters is that the Home Office is arguably the most constipated department in Whitehall, but one of the most important. There is much still to be done to follow up what the noble Lord, Lord Reid, said in May 2006 about the department being “not fit for purpose”. What really matters is that we get on with the reforms and we must welcome the fact that my right honourable friend Priti Patel is a vigorous Home Secretary who is determined, among other things, to root out the deep corruption, demonstrated in Parliamentary Questions I have asked and had answered, in the immigration department of the Home Office.
My Lords, I will not follow my noble friend on all his comments. All I will say is that the Home Office has been charged with a vital job, from creating a points-based immigration system to strengthening the police and so on. I have no reason to believe that the Home Office, led by an outstanding ministerial team, will not perform to the highest levels expected of Her Majesty’s Civil Service.
My Lords, I read the statement and heard of the resignation of Sir Philip with extreme sadness and shock. Will the inquiry talk to Sir Philip about his allegations and include the First Division Association chief executive Dave Penman to establish the reality of what happened? I welcome the inquiry, and the Statement says that it is not the Government’s practice to comment on personal matters. All I can say is that an awful lot of other people seem to have commented on Sir Philip. Will the Minister distance himself from the shameful comments that have been made in the newspapers over the weekend?
My Lords, I make no comment about any individual. My job is to see that the conduct of government is carried on appropriately. The noble Lord will know from his distinguished service in the Civil Service that how the matter is conducted is not a matter for me but for the Cabinet Secretary, taking advice appropriately, as I am sure he will do. Sir Philip said in his statement that he intends to begin legal action; I am sure the House will understand that I cannot make any further comment on that matter.
My Lords, is a timetable attached to the inquiry by the Cabinet Office? My understanding is that it is the Prime Minister who decides in the end whether the ministerial code has been broken or not. Is that the case, or will he also rely on advice and input from independent sources?
My Lords, I will not speculate on how long the work, which has only just begun, will last. It is in everybody’s interest that it be performed as swiftly but also as thoroughly and fairly as possible. The findings will be presented to the Prime Minister and then it will be a matter for his judgment what might or might not follow.
My Lords, will the Minister reflect that it would be deeply unfortunate if, as with the BBC or the courts, the people’s Government versus the Civil Service overrode the duty of people to be encouraged to work sensibly on behalf of the people we seek to represent? As a former special adviser, will he reflect that, after seven months, it would have been perfectly reasonable for the Home Secretary to have approached the Prime Minister and Cabinet Secretary to arrange a sensible departure for the Permanent Secretary if she could not get on with him? Is it not a worry that she might not be able to get on with anybody?
My Lords, again I will not be tempted to follow a personal line, except to say that the noble Lord, when he was an outstanding Home Secretary, was never backward in coming forward with his views. It is in everyone’s interest that the heat is taken down a bit and the facts are established; once the facts are established your Lordships and the rest of the world can address their consequences.
(4 years, 5 months ago)
Lords ChamberMy Lords, with the leave of the House, I shall now repeat in the form of a Statement the Answer to an Urgent Question asked in another place on airport expansion. The Statement is as follows:
“Madam Deputy Speaker, the Secretary of State is very sorry that he is unable to be here today. He is visiting the north as a long-standing commitment for discussions with northern leaders following the Government’s takeover of the Northern franchise. It is a pleasure to respond on his behalf as Minister for Aviation.
Airport expansion is a core part of boosting our global connectivity and levelling up the UK. It is crucial that vital infrastructure projects, including airport expansion, drive the whole UK economy. This Government support airport expansion, but we will permit it only within our environmental obligations. This Government have been clear that the Heathrow expansion is a private sector project which must meet strict criteria on air quality, noise and climate change, as well as being privately financed, affordable and delivered in the best interests of consumers.
Last week, the Court of Appeal ruled that the designation of the Airports National Policy Statement did not take account of the Paris Agreement, of non-carbon-dioxide emissions or of emissions post 2050, and therefore, has no legal effect unless and until this Government carry out a review. This Government have taken the decision not to appeal the court’s judgment. We take seriously our commitment on the environment and reducing carbon emissions.
It is a complex and important judgment, which the Government need time to consider carefully. At this stage, the Government will not be able to make any further comment beyond what was set out in the Written Statement of 27 February from the Secretary of State for Transport. Following the judgment, scheme promoters have applied for permission to the Supreme Court to appeal this decision. The Government will not comment on an ongoing legal case.
Aviation will play a key role in leading our economic growth and driving forward the UK’s status as an outward-facing trading nation, attracting investment and growing our trade links with new overseas markets. Today, our airports support connections to more than 370 destinations in more than 100 countries. Aviation drives trade, investment and tourism, contributing £14 billion to our economy and 500,000 jobs. The next decade will mark an unprecedented moment of opportunity for the UK. That is why we are investing in transport and infrastructure across the country—investing in our strategic roads network, proceeding with HS2 and committing £5 billion of funding to improve bus and cycle services outside London.
Airport expansion is a core part of our commitment to global connectivity, but we are also a Government who are committed to a greener future, as the first major economy in the world to legislate for net zero emissions by 2050. This Government are therefore committed to working with the aviation sector to make sure we deliver on the opportunities available to us, while meeting our environmental commitments, whether that is on modernisation of our airspace, innovation in sustainable fuels or research and technology. This will ensure a prosperous and sustainable future for the whole country, and the House will be updated on next steps as soon as possible.”
My Lords, I am becoming sympathetic to the Minister. She seems destined to repeat Statements from the House of Commons that have little or no substance. It is no surprise that the Heathrow expansion plan failed to reflect the UK’s commitment to tackling the climate crisis, given that the former Transport Secretary said that the Paris agreement was “not relevant” to expansion. Who provided legal advice to the Government saying that they did not have to take the Paris agreement into account when approving Heathrow expansion? Will the Government rule out amending the Airports National Policy Statement to allow expansion to go ahead, and do the Government now accept that the Paris agreement must be taken into account in all their domestic decisions?
My Lords, I will not go into the detail of who received what legal advice and when, but the court ruled in the way it did. It is worth looking at one thing: the court did not conclude that airport expansion was incompatible with climate change targets. It remains the Government’s position that we have our climate change targets, it is possible to expand airports within them and where possible we will do so.
My Lords, the Liberal Democrats have always opposed Heathrow’s expansion, believing that it could not be done without serious environmental damage. I have always argued here that there has been far too much concentration on air services in the south-east, when there are airports in the north with spare capacity. Any expansion at Heathrow would be bound to skew investment towards the south-east, at the expense of the Midlands and north. So the Government now need to develop alternative policies. I understand there is an appeal process, but does the Minister agree that the Government need to use existing airports more efficiently and ensure, with speed, that all airports adopt zero emissions as an approach to their ground services, which can be provided at this time? Does the Minister also accept that all airports, and the Government, have to work on improving public transport links? Can the Minister guarantee that the Government will up their game environmentally?
I feel that the last comment in particular from the noble Baroness, Lady Randerson, was a little harsh. We are the first major economy to have legislated for net zero by 2050. We have already reduced the amount of emissions by a quarter since the Conservatives came into office. I am sure that the noble Baroness will have heard on the grapevine that a transport decarbonisation plan will be published soon. That will cover how we are going to decarbonise our transport system. But the noble Baroness is right that transport between the different regions is incredibly important. That is why this Government are committed to investing in infrastructure, with the biggest rail modernisation since Victorian times, green-lighting HS2, £500 million for Beeching reversals and £29 billion on upgrading or maintaining our strategic roads network. A making best use policy is already in place for airports, which says that all airports can invest in their infrastructure, provided they meet environmental constraints.
My Lords, not even Heathrow Airport Ltd believes that a third runway at Heathrow could be available before 2029. Would it not be a safe insurance policy for the Government to upgrade the railway to Stansted Airport, which has legal spare capacity?
I thank my noble friend for raising one of the other London airports. It is true that we are incredibly lucky in this country, in that we have a number of options when we fly from the south-east or from London. The Government are focused on connections to airports, because we want to make sure that there are as many different options as possible to get to airports, so that people do not necessarily have to use their car. Train is often the best bet.
My Lords, I do not know how the Minister’s department manages the mental gymnastics to think it possible to have airport expansion and fulfil our climate change targets. Could the Minister explain that? When Heathrow Airport said it would go net zero, it did not include any of its flights—so it will be rather difficult to square that circle.
This Government are anti-aviation emissions, not anti-flying. That is the entire point. The Government are working incredibly hard to make sure that we get emissions down by 2050. I have already mentioned the transport decarbonisation plan, but we are also spending £2 billion on aviation research and technology. I ask the noble Baroness whether, if all planes were netzero, she would still be against flying.
My Lords, the decision of the courts is very interesting and the Paris agreement is extremely important. We have to go much further than the Paris agreement if we are to make a proper impact on global emissions, through assistance to countries that are increasing their emissions very fast. Surely the decision of this country on how our infrastructure, planning and development should accord with our climate aims and zero emissions is a matter for Government policy and not for the courts. If the courts are to decide this, we will have very little chance of having any success at all.
My noble friend raises an important point. I go back to what I said earlier: the courts did not conclude that airport expansion was incompatible with climate change, simply that the ANPS did not take into account the items that I mentioned earlier. The noble Lord is right that it is government policy to decarbonise our transport system, which is what we are doing.
My Lords, the effect of the Court of Appeal’s ruling is that the Airports National Policy Statement is defective and has no legal effect, unless and until the Government carry out a review. Are the Government planning to carry out a review? If they are not, do we have an Airports National Policy Statement? If we do not, how can the Minister say that expansion of other airports will go ahead without an overall policy?
This is an important point, but it is a complex and important judgment running to several hundreds of pages. The Government are taking their time to consider the judgment, and we will set out the next steps for the Airports National Policy Statement and other matters in due course.
My Lords, I congratulate the Government on not appealing this judgment. That is a very wise decision. Is my noble friend confident that other plans the Government have, such as HS2, will also be in line with the Paris commitment?
This is of course incredibly important, because there are potential read-acrosses to various other infrastructure builds. However, we are confident that they fall within our climate obligations.
My Lords, is it not a fact that this decision has had the effect of letting the Prime Minister off the hook? He does not have to lie down in front of the bulldozers—so there is a clear advantage in judicial review. Why are the Government seeking to restrict it?
I do not think that I am willing to go down that track.
My Lords, this is a bizarre judgment, given that the previous court ruled that the Paris judgment was not legally binding, but is not the real root of the problem the fact that we have made these targets legally binding? When the climate Bill went through Parliament, I voted against it and pointed out that the sole effect of enshrining targets in statute would be that the Government’s policies would be open to judicial review. It is bizarre that judges should decide on policies costing billions of pounds without being accountable to the electorate for the costs that will be incurred. That fills with me foreboding, and that foreboding has proved to be justified by this strange ruling. Should we not cease to have legally binding commitments and make these decisions politically by the Government and Parliament of the day?
I thank my noble friend. The Government stand by their decision to legislate that this country will be net zero by 2050, and what we have been able to achieve in terms of the decarbonisation of our energy system has been very significant. It is now time to turn to transport, and I believe that we can do it.
(4 years, 5 months ago)
Lords ChamberMy Lords, with the leave of the House, I shall now repeat in the form of a Statement the response given by my honourable friend the Minister for Asia and the Pacific to an Urgent Question in the other place. The Statement is as follows:
“Protecting British citizens at home and abroad is a top priority for this Government and amid the outbreak of Covid-19, known as coronavirus, the UK is leading the response. First, we are providing support to British citizens abroad. This includes, of course, travellers and their families in countries around the world. The FCO is closely monitoring coronavirus throughout the world through its diplomatic network. We are providing travel advice to British nationals so that they can be sure of the facts before deciding whether to travel and sure of what they should do if they are affected by an outbreak of Covid-19 when travelling.
The UK has also put in place measures to ensure that travellers returning from abroad do not spread the virus further. We have enhanced monitoring measures at UK airports. Health information is available at all international airports, ports and international train stations. We have established a supported isolation facility at Heathrow Airport to cater for international passengers who are tested, and to maximise infection control and free up NHS resources.
For British nationals caught up in the initial outbreaks of the virus, HMG have co-ordinated repatriation for those impacted in Wuhan and the passengers on board the “Diamond Princess” cruise ship, and we are working with the Spanish authorities and tour operators to support the return of British nationals affected by the situation in Tenerife.
We also continue to insist that British nationals who are being detained in countries such as Iran, which has seen reports of a high number of cases of coronavirus, are temporarily released. France, Germany and the United Kingdom have expressed their full solidarity with those who are impacted by Covid-19 in Iran, so we are offering Iran a comprehensive package of both material and financial support to stem the rapid spread of the disease. Today, a plane departed the UK with vital materials such as equipment for laboratory tests as well as other equipment, including protective body suits and gloves. The E3 has also committed to providing urgent additional financial support of close to €5 million to fight the Covid-19 epidemic affecting Iran through the WHO or other UN agencies.
We will continue to support global efforts to combat the outbreak of Covid-19. Our support is directed at helping the most vulnerable across the globe and strengthening the global health system to protect our own nationals. We have provided £40 million of investment into vaccine and virus research and £5 million for the World Health Organization. We will continue to do all we can to keep British nationals safe and healthy around the world.”
My Lords, I thank the Minister for repeating the response to that Urgent Question. In the other place this afternoon, my right honourable friend Emily Thornberry recalled British aid efforts to help the people of Iran during a humanitarian crisis. She asked the Minister to join her in making a plea to the Iranian Government to see Nazanin Zaghari-Ratcliffe as one of those innocent people in a humanitarian crisis whom they have it in their gift to save. She also hoped that the Minister would make a solemn commitment that if Iran acts with compassion, we would not forget our obligations to act with fairness and justice in resolving the other issues of dispute between our countries.
Unfortunately, it is not only Nazanin who is suffering in Iranian prisons today. There is Aras Amiri, who in 2018 was sentenced to 10 years, or Anoosheh Ashoori, sentenced to 12 years in 2019—and there are many others. Can the Minister offer an update on any of these cases? In particular, can she confirm whether concerns about Covid-19 have been raised by the families of other dual nationals imprisoned in Iran?
My Lords, we have been in close touch with the Iranian authorities to urge them to secure a temporary release on medical grounds for Mrs Zaghari-Ratcliffe, while her release remains a top priority for the Government. Of course, the welfare of all British nationals imprisoned in Iran is a top priority and we will continue to lobby for the temporary release of all detainees in Evin Prison.
My Lords, I too thank the noble Baroness for that answer. I am glad that we are working with France and Germany in recognising the dire situation that Iran is in—it is clearly in the middle of a major epidemic—and that we are doing our best to help Iran and its people in any way we can. However, this crisis clearly shows why action needed to be taken a long time ago to get Nazanin Zaghari-Ratcliffe and the other dual nationals released. Do the Government not have a special responsibility as far as she is concerned? Her health has clearly been compromised, while we hear that new prisoners are not being admitted to her prison because of the virus. There are apparently no medicines or disinfectants. Surely the Government have to do their very best to secure her release, get her into quarantine and bring her home to the United Kingdom.
My Lords, we are calling on the Iranian Government to immediately give detained British-Iranian dual nationals access to appropriate medical treatment and our colleagues in Tehran will continue to lobby for the temporary release of all our detainees in Evin Prison. Of course, it is important that we support Iran as best we can. We have seen an alarming increase in the number of cases there, with 523 confirmed in the previous 24 hours. That is why it is so important that the E3 supports Iran in the way that it is.
My Lords, I am sure everyone in the House has huge sympathy with the appalling predicament of Mrs Zaghari-Ratcliffe and her, frankly, unreasonable imprisonment. On the broader issue of coronavirus—I look forward to listening to the Chief Medical Officer when he comes to us on Wednesday—while this is of course a very serious outbreak, it seems that there is a danger of overreacting. I am in the danger zone, as are most of your Lordships because all old men aged over 60 are in it. But, on average, some 17,000 people die of flu every winter, yet so far we have had no deaths at all from coronavirus in this country and the numbers around the world are slim. Can the Minister reassure me that we are not overreacting?
My Lords, I agree that it is absolutely right that we should get the balance of our reaction correct. Of course, public safety is our top priority and I thank all those already working around the clock so that we are ready at home and can ensure the safety of UK nationals abroad. Our approach in this country is being guided by the Chief Medical Officer, Professor Chris Whitty, and independent experts. We will continue to work closely with the World Health Organization and the international community to ensure that we get our response to this outbreak right.
My Lords, is it true that the prisoners who are ill abroad are not being tested? Surely all of them should be tested and treated.
If the noble Baroness is referring directly to the prisoners in Iran, as I say, we are working closely with the Iranian authorities to ensure that we have access to them and that they get the testing and the medical attention they need.
My Lords, with permission, I will now repeat a Statement made in the other place by my right honourable friend the Secretary of State for International Trade. The Statement is as follows:
“Today my department is publishing a suite of documents that mark a crucial step in the process of beginning formal negotiations for a free trade agreement with our largest bilateral trading partner, the United States. These documents comprise the Government’s negotiating objectives, our response to the public consultation, and a scoping assessment to provide the House and the British people with analysis of the potential long-run economic impact of an FTA. These are available online and will be placed in the Libraries.
The UK stands at an historic moment, building its independent trade policy for the first time in almost half a century. This Government will seize this opportunity to be an independent, global champion with a simple message: free trade is good for all nations and will deliver benefits for businesses, households and consumers across the UK. We aim to have 80% of UK trade with countries covered by free trade agreements within three years, starting with the US, Japan, Australia and New Zealand. Seeking these agreements is part of our efforts to level up, deliver opportunity and unleash the potential of every part of our United Kingdom.
The USA is the world’s largest economy, our closest security and defence partner, and one of our oldest friends. We are the biggest investors in each other’s economies. An FTA represents a fantastic opportunity to strengthen and deepen our strong trade, investment and economic relationships, bringing us closer to the world’s economic powerhouse. In 2017, according to US statistics, 1.7 million people worked for US majority-owned companies operating in the UK, and 1.3 million for UK majority-owned companies based in the US. UK-US total trade was valued at £220.9 billion in the last year, representing 19.8% of all our exports. An ambitious FTA with the US could deliver a significant long-term boost for the economy. Compared with 2018, it could mean a £15.3 billion increase in bilateral trade and a £3.4 billion lift to the economy.
The negotiating objectives we are publishing today are underpinned by one of the biggest consultations ever undertaken with the UK public, businesses and wider society. It received the views of 158,720 respondents, all of which have fed into the Government’s broad approach to FTAs and specific negotiating objectives. We have scaled up our trade negotiator expertise and have a similar size of team to the US trade representative, including a wealth of experience from the private sector, trade law, Commonwealth nations and WTO experts, ready to deliver for the UK.
My department’s analysis shows that the US deal we are seeking benefits every region and nation of the UK, delivering improved access for businesses, more investment, better jobs and higher wages. For the Midlands, a UK-US FTA could reduce tariffs on cars and ceramics. For Scotland, it could lock in salmon and whisky trade and support new market access for beef. The north of England could see more exports of manufactured goods and new data agreements for its tech firms. The south-west can gain from eased customs procedures for beverages, luxury sports and marine equipment. The south-east could see benefits for its globally competitive professional business firms. London could see benefits through agreements on digital trade that will boost our world-leading tech firms. The east of England will see a boost to its food and life science industries. Wales stands to gain market access for its fantastic lamb, and reduced tariffs and red tape for its steel and ceramic sectors. Northern Ireland can benefit through liberalisation of tariffs in furniture and pharmaceuticals.
North, east, south and west, from agriculture to the creative industries, my department’s analysis finds that a US trade deal has the potential to deliver benefits throughout the UK economy, with more choice for consumers at lower prices and new opportunities for businesses, and to grow high-skills jobs. It has the potential to slash trade barriers and tariffs totalling some £493 million per year and could boost British workers’ wages by £1.8 billion.
Small and medium-sized businesses provide around three-fifths of jobs in the UK. They are increasingly international traders in their own right. In 2018, 97% of businesses exporting goods were SMEs, representing 28% of our total exports. Some 30,000 SMEs across the UK trade with the US already. So we will make it a priority in these negotiations to support UK SMEs to seize the opportunities of UK-US trade. We will do this by aiming to agree a dedicated SME chapter to facilitate co-operation on SME issues; to ensure that SMEs have easy access to information to take advantage of the new opportunities; to build on the successful UK-US SME dialogue to strengthen co-operation; and to ensure that throughout the agreement there are SME-friendly provisions covering both services and goods.
We are also looking to rewrite the rules of the game on digital trade to create a world-leading ecosystem that supports businesses of all sizes across the UK. This could include provisions that facilitate the free flow of data and prevent unjustified data localisation requirements, while ensuring that the UK’s high standards of personal data protection are maintained and that government continues to maintain its ability to protect users against online harm. We can ensure that customs duties are not imposed on electronic transmissions and create fantastic opportunities in areas such as blockchain, driverless cars and quantum technology.
In these trade talks, as in all our future trade talks, this Government will drive a hard bargain for the British people. The NHS, the price it pays for drugs and its services are not for sale. There will be no compromise on high environmental protection, animal welfare and food standards. Throughout these negotiations, the Government will continue to engage collaboratively with Parliament, the devolved Administrations and the public.
I can also assure the House that now the UK is free to negotiate outside the EU, we will be aiming to begin negotiations with the US as quickly as possible. The appetite is clear on both sides. We welcomed the US Government’s negotiating objectives, particularly on developing state-of-the-art provisions in financial services and digital trade. We welcome the enthusiasm in both the US Congress and the US Administration, as was made clear during my discussions last week with US Trade Representative Robert Lighthizer. We see in this not just an opportunity to deepen our bilateral trade and investment relationship, important though that is; it is about setting an example to the world of how two leading, open and mature economies can trade with one another.
As an independent trading nation, the UK will champion free trade and lower trade barriers at every opportunity. Striking free trade agreements will give our businesses the opportunities, certainty and security they need to prosper. The greatest opportunity to do this is with our closest ally and largest single trading partner, the United States. We have the mandate. We have the team. With the documents we are publishing today, we have the tools. With hard work, I believe we can get it done—so I commend this Statement to the House.”
My Lords, that concludes the Statement.
My Lords, I first apologise for not being present at the very start of proceedings on this Statement. Unfortunately, my printer got stuck and I had to wait until I was able to clear it with technical help. I therefore missed the opening sentence, but I had been given a copy of the Statement and had read it before.
We support an ambitious trade agreement that unlocks economic growth, creates new jobs and elevates rights and standards. I thank the Minister for repeating the Statement following the publication of today’s negotiating mandate for the Government’s flagship trade agreement with the USA. Of course, some 20% of our current trade is already with the USA. It is our second-biggest market and we have enjoyed decades of two-way trade with no underlying trade agreement. So, while I welcome the publication today, I wonder whether it was quite necessary to do it in the way it has been done and to carry the tone it does.
The Statement says that an “ambitious” free trade agreement with the US could result in
“a £15.3 billion increase in bilateral trade and a £3.4 billion lift to the economy.”
These are substantial figures. However, can the Minister confirm that this is over a 15-year period? These results will be slow to come and indeed, given the length of time, are not very substantial on their own. Can he also confirm that, at the end of that time, the British economy would be only 0.16% larger by 2035? This hardly compares well with the loss in trade of some 5% of GDP—some argue it could be worse—if we fail to complete an ambitious free trade agreement with the EU.
Secondly, the Secretary of State has said positive things about the NHS and the price of medicines, and that there will be no compromise on environmental protection, animal welfare and food standards. However, the Government have so far failed to enshrine this in primary legislation. There is an amendment to the Trade Bill that left your Lordships’ House in a previous Session that would do it. Why do they continue to prevaricate on this point?
There is a lot in the Statement about tariffs and quotas, which are important, but there are already very low tariffs between the UK and the US. The main problem is regulation. To take food as an example, the US position is generally that its food is just as good as European food and our standards are just protectionism. The problem is that American food is not the same, by any standards. Farming in the US is mostly on a large, industrial scale, and the animals are kept in conditions so poor that they get ill or do not thrive unless they are also fed a lot of antibiotics and steroids, not to mention hormones that maximise growth. We, on the other hand, through the EU have a farm-to-fork policy that regulates conditions throughout the life cycle. So what you dunk a chicken in before it is presented for sale is really shorthand for a wider question of how that animal has lived. How are the Government going to square that circle?
In the same field, will the Government reaffirm their commitment to international labour standards and rights and require the US to sign up to the ILO conventions, which it has so far failed to do.
Thirdly, what is most striking about the document is that it seems to ignore the US negotiating position, although there was a mention of that in the Statement. The language of the US document is highly aggressive, demanding concessions but offering little in return. For example, it says:
“The United States seeks to support higher-paying jobs in the United States and to grow the U.S. economy by improving U.S. opportunities for trade and investment with the UK.”
That does not sound like a very open-ended commitment to work with the UK. The framework for negotiating the UK-US trade deal is centred around reducing tariffs and non-tariff barriers but only in ways that benefit the US. For example, we read that one of the negotiating objectives of the US is to
“Secure comprehensive duty-free market access for U.S. industrial goods and strengthen disciplines to address non-tariff barriers that constrain U.S. exports.”
I am a bit perplexed why the document published today does not confirm that the UK has properly analysed the US position and will have the necessary tools to negotiate round these difficult operations that are in print.
Finally, we accept that there has been wide public consultation, but this Statement does not constitute adequate parliamentary engagement on this process. We await the return of the Trade Bill, which left this House with a proposed structure for engagement with Parliament and its committees. Can the Minister tell us how the Government intend to enable effective scrutiny of this and future trade agreements?
My Lords, I too thank the Minister for repeating the Statement given in the other place. As the noble Lord, Lord Stevenson, said, we are building on substantial trade with the United States, which receives some 20% of our exports and is our largest international market after the European Union. To be clear, business achieved those substantial numbers while the United Kingdom was still in the European Union. Leaving the European Union is not a prerequisite for doing business with other countries and regimes.
That said, the process of negotiation is now under way, so what light does the Statement throw up? First, could the Minister acknowledge that, with respect to services, our largest sector, it is often the states rather than the federal Government which hold sway? So there are severe limitations on any FTA going forward, because it is difficult to cover the services sector, which is very important for the United Kingdom.
Data appears a number of times in the Statement and plays a big role in the supporting documents. The Government say they are going to
“rewrite the rules of the game on digital trade”.
First, can the Minister confirm that this will mean the UK moving away from GDPR, as clearly that is important? In the Statement, the Minister also talks about including provisions to
“facilitate the free flow of data and prevent unjustified data localisation requirements”.
It would be interesting to know, either today or in a Written Statement, what “unjustified data localisation requirements” this refers to? This is a real issue. For example, is the Minister happy that UK users of Google are having their data moved from the EU domain into the United States’ domain, where there is no accountability from the EU, which until very recently provided democratic accountability for UK users. Does the Minister think that, in moving the data, Google is expecting to make more money from people’s lives or less?
On democratic accountability, as the noble Lord, Lord Stevenson, pointed out, there is considerable uncertainty. Congress, on the other hand, will get the job of approving this deal in the United States, as will the European Parliament in the event of an EU deal being struck. The Statement says that
“the Government will continue to engage collaboratively”,
but following the decision to shelve, or otherwise, the Trade Bill, Parliament has no formal role. Can the Minister explain what collaborative engagement actually means? There is a strong danger that every MP will be held accountable as time goes forward for the effects of trade deals, without having had any say over what the deal was. Perhaps MPs on all Benches will be considering that.
Furthermore, during negotiations—and I have heard this said in this House by those who have participated in negotiations—it is very handy for the US negotiators to have the get-out clause, “Well, I would agree with you on this, but Congress will not let me do it. My hands are tied.” UK negotiators will have no such constraints.
The absence of regulatory alignment, which is clearly something that the EU negotiations will continue go forward with, will ensure that no meaningful deal can be struck with the European Union. In reports, the Secretary of State and others have made it clear that Her Majesty’s Government are prepared to walk away from negotiations with the European Union in 2021. Does the Minister agree that, in this context, given the conflicting nature of regulatory alignment, an FTA deal with the EU is mutually exclusive with one with the United States? We could have a deal with the United States but at the expense of a meaningful FTA with the EU, or perhaps vice versa. I am interested to know the Government’s view on Boris Johnson’s “Cake and eat it” strategy. Can the Minister explain how that works in terms of regulatory alignment?
And what is this for? As the noble Lord, Lord Stevenson, said, in about 15 years we will have advanced our GDP by less than 0.2%—a quantum that pales into insignificance with the benefits that we were receiving due to our relationship with the European Union. This Statement fails: it fails to prioritise the livelihoods of people and their businesses over an ideological approach to trade and trade policy.
I thank both noble Lords for their points. I thank the noble Lord, Lord Stevenson, for his broad support for this Statement; perhaps the noble Lord, Lord Fox, did not quite fall into that category.
The first point the noble Lord, Lord Stevenson, raised was about the point I made concerning the total value of trade between the UK and the US, which will soar—as I had said—by £15.3 billion, adding £1.8 billion to wages across the country. It is true that is over a 15-year period, as he asked me.
The noble Lord spoke about environmental protection. I know this is an issue which is important for many of your Lordships in this House and has come up in previous debates. In all our trade agreements, we will not compromise on our high standards of food safety and animal welfare. The Government will stand firm in trade negotiations to ensure that any future trade deals live up to the values of farmers and consumers across the UK. The UK is proud of its world-leading food, health and animal welfare standards. I say again: we will not lower our standards as we negotiate new trade deals.
The noble Lord, Lord Stevenson, mentioned the ILO and the link to labour standards, and alluded to the conventions as part of the negotiations. He will know that we have very high labour standards in this country, and we want to uphold those. That will be a red line in our approach to these discussions, as it is with the EU.
The noble Lord also alluded to the US position and said that some of the information coming out was—to use his word—on the “aggressive” side. It is entirely to be expected that the US would lay out its stall. We have known its position, which is a very good thing, and will be taking what it has to say very seriously.
On scrutiny, primarily parliamentary scrutiny, this falls in line with what the Government wish to do to keep the nation in touch. The noble Lords, Lord Fox and Lord Stevenson, will know of the strategic trade advisory group, or STAG, and the expert trade advisory groups, or ETAGs. We are consulting these groups on a regular basis. The STAG’s principal purpose is for the Government to engage with stakeholders on trade policy matters. On parliamentary engagement, we have pledged to keep Parliament—both the Commons and this place—up to date as we see fit on the timing and how we are approaching the negotiations.
I should also mention, very importantly, the devolved Administrations. In the Moses Room the other day, I mentioned the forums. We have had our first forum engaging with the devolved Administrations. That is another important facet.
The noble Lord, Lord Fox, raised the issue of services, which is indeed a very important sector for the UK; it is our largest sector. The point was made that negotiations were, on occasion, perhaps more applicable with the states rather than at a federal level. Negotiations are primarily with the US Fed—if I may put it that way. As negotiations continue, there will be more of a focus on the states. I reassure the noble Lord that these negotiations are at a high level, with the federal Government.
I cannot comment on data and moving away from the GDPR. I stick by what I said earlier: data protection is incredibly important in this country. The noble Lord, Lord Fox, mentioned unjustified data requirements. It should be part of the negotiations between the UK and the US to make absolutely sure that our standards and protections are not lowered; that includes Google, which the noble Lord mentioned.
On our approach to negotiations, we have said, and continue to say, that we are prepared to walk away from negotiations if we feel that that is right. However, we approach them in a good spirit. That has been the case in the working groups, which have been operating for quite some time—at least two years.
The noble Lord raised regulatory alignment. That will come up as part of our negotiations with the EU and our negotiations with the US. I hope that that covers most of the questions.
My Lords, I welcome the Government’s Statement and hope that these negotiations are successful, but is it not important to put the importance of trade agreements into perspective? What actually drives trade is the production of goods and services that other people want to buy. Trade agreements are of secondary importance, as illustrated by the relative growth in our trade with countries with whom we trade solely on WTO terms and have no free trade agreement with. The WTO and the single market were set up at the same time, when I was Secretary of State for Trade and Industry. Our exports of goods to WTO-only countries has grown by 87%, faster than those economies themselves have grown and six times faster than our exports to the EU, which have grown by barely 0.5% a year, which is slower than the growth of the economies of the EU.
My noble friend makes an excellent point. The opportunities for the UK are substantial. I say again that this is a landmark deal that will set the standard for world-leading trade agreements. Starting off with the US is a very good start. For example, it is very exciting that tariffs will likely be reduced for Bentleys from Crewe, Aston Martins from Warwickshire and Wales, UK cheese, which currently has a 17% tariff, and ceramics from Warwickshire, which have a 28% tariff. We hope that these tariffs will be reduced, as they should be, in the negotiations. Noble Lords might ask me, as the Minister, what we are going to get in return from America. That includes raisins and wine from California, and, as the Prime Minister said, Stetsons replacing salmon. There is a lot to be hopeful about in the negotiations.
My Lords, I have not had an opportunity to read this long document, but I congratulate the Minister in one respect: at least in this document, the Government have tried to produce a proper economic assessment of the potential of a free trade agreement with the United States. Is it not odd that, on the much more important free trade agreement with the EU—despite what the noble Lord, Lord Lilley, said, it still accounts for two and a half times more of our trade than the United States—no economic assessment was produced at all? How can he explain that?
Secondly, will the Minister acknowledge that, while any growth as a result of a UK-US deal would be welcome and important, it is trivial by comparison with the numbers at stake in our EU relationship?
Finally, will he acknowledge that, in the special case of President Trump, trade deals are extremely difficult to negotiate? He does not believe, like Britain and the European Union, in the concept of a rules-based multilateral order governing trade. He has been trying to weaken the WTO by not appointing judges to its highest arbitration panels. He believes that might is more important than right, and he judges trade by how much powerful America can grab—it is what academics would call “managed trade”, not free trade. We are putting far too much importance—we need realism—about getting anything substantial out of these negotiations.
I am much more optimistic than the noble Lord. I can perhaps reassure him that we are aware that some reforms are required for the WTO. We very much want to play our part in ensuring that those reforms are carried through.
The second thing to say is that the US deal is the first of several. The noble Lord will know that we have Japan, New Zealand and Australia to come, and of course the EU. There was a chance in the past few days, and yesterday, to question my noble friend Lord True on the EU deal. I do not want to be drawn in on that except to say that, in the US deal, we start from a very good platform because we are one nation negotiating with one other nation; with the EU, it is of course a bit more complicated, in that we are dealing with 27 countries —and the House will understand when I say that there are a few more complications than that. However, we are very confident that we will be able to negotiate both a US deal and an EU deal in parallel. I hope that helps to answer the noble Lord’s questions, but I doubt it.
My Lords, the Department for International Trade has obviously done an enormous amount of work on this issue, a large amount of it under my right honourable friend Dr Liam Fox, the former Secretary of State who was doing a very good job on all fronts. It is absolutely right, as your Lordships have observed, that the USA is far the largest single country market force at 20%; about half is services and is growing, and the other half is goods, which is shrinking. But most consumer market growth in the next 10 years will not be in America, or indeed in Europe—it will be in Asia, by far. That is the huge new area where we have to succeed. Asia will shortly make up half of the world’s GDP, if not more. That happens to be where we are weakest, so I urge my noble friend to remind his colleagues in the Department for International Trade that we should think carefully about our priorities and not spend too much time trying to perfect our excellent trade with America—that may now get more difficult, not easier—when we should really be concentrating all our resources on finding our way into the giant Asian markets, which will really determine our future and prosperity.
I agree with my noble friend that the Asian market is very important. I mentioned Japan earlier, which he will know is very much on the agenda. There is, of course, more to do in Asia, but I go back to the statistic that I gave earlier: we intend, over the next three years, to cover 80% of our trade deals. That, I would argue, is a very good start. It is right that we are starting not just with the EU but also with the US. It is on the basis that the US, clearly, is on our side: it wants to secure a deal as well.
My Lords, I must comment on the comparative tone of the two Statements we have had on the negotiations with the European Union and the United States. The announcement on the relations with the EU insisted several times that we expected the European Union to treat us as a sovereign equal. Can the Minister assure us that we will similarly expect the United States to treat us as a sovereign equal? The phrasing was, instead, that the United States is our closest ally, which I think is code for saying, “We expect them to be nice to us because they like us.” Is it not more likely that, in trade issues, the United States will be as transactional as the European Union is likely to be? I remember during a conference on transatlantic trade some years ago a Democratic Congressman saying to me, “People of my district are entirely in favour of free trade provided they do not have to accept any more imports”. That is the problem right there.
One of the biggest consultations on future trade relations for Britain was the balance of competences exercise during the coalition on the relations between the UK and the EU. The overwhelming sense from the returns, including those from the Scotch Whisky Association, whose director at that point was David Frost, was that the balance of competences between the EU and the UK suited our industry and our services very well. The Conservative part of the coalition, by and large, wished to ignore that consultation and carry on.
I also note that on digital regulation, we now
“have the opportunity to help shape global rules through ambitious digital trade provisions.”
That means we clearly expect to share in shaping US regulations in the way that we do not think we can in the EU. Can the noble Lord explain that contradiction?
There were several questions from the noble Lord, so I will not be able to answer all of them, but I say at the outset: the respect is there between the two countries—it always has been. We have very strong and close relations with the US for a whole range of reasons and there is no reason why that will not continue in terms of our negotiations. In fact, as I said earlier, talks in the working groups have been extremely constructive, and we very much hope they will continue in the same vein. Having said that, I have no doubt that the US will talk tough. We are prepared to talk tough and have said that we are prepared, if necessary, to walk away from negotiations if we feel that any of the issues that we are negotiating on do not fall in with the national interest.
My Lords, I think we risk being a little churlish. What we have here is what I recognise as a White Paper. We have a serious document with some serious economic analysis resulting in some serious consultation with a serious attempt to quantify the effects of the policy the Government chose to follow, broken down sectorially, geographically and in different categories of citizen, and there has been consultation with the devolved Administrations. In all these respects, this is admirable and in striking contrast with what we got last week about the negotiation with the European Union, which started today.
I think that one should give the Government credit for being honest about how small the likely scale of increase in trade would be if one managed the scenario that is sketched out here. If, optimistically, one achieved what is here, one would be gaining, after 15 years, a fraction of 1% of GDP, whereas, with the European Union, the Government’s own economic analysis shows that they would be some 5%, 7 % or 8% down in GDP. So this is small stuff.
I also agree with the noble Lord, Lord Lilley, that what matters is what the traders do. More than two-thirds of transatlantic trade in goods is intra-company trade, so it is issues such as taxation that matter as much as any of this here. I also find the optimism of this quite striking. I was always struck, when in America, that the land of the free is not the land of free trade: it is the land where might is right. Remember that the Jones Act is still on the statute book in the United States, that we are the small party—the demandeur—and that the United States is out to, “Make America Great Again”. It is out to bring home jobs; it is not out to support jobs in this country, even though we are a close ally.
It is an admirable document; I see no harm at all in the attempt the Government are making, but let us be realistic. The noble Lord, Lord Howell, is right: it is in Asia, not America, that there are the real prospects for expanding trade. In America, we will come up against fierce protectionism: America is the most protectionist economy of all our trading partners.
It is praise indeed that the noble Lord, Lord Kerr, has said that the document is admirable and I am pleased to have been able to listen to that very carefully. I take note of what the noble Lord says about the US and our prospects, but I do not agree. If we take, for instance, SMEs as one particular issue, there are 5.9 million small businesses, but relatively few export to the US. This new deal will provide a tremendous opportunity for SMEs to do business in the US. From the analysis we have done—the noble Lord will have probably read the document—we believe we have more to gain in the UK in terms of business with the US than the US has in return. I think it is exciting and I am not at all dismissing the point made by my noble friend Lord Howell and the noble Lord, Lord Kerr, about the importance of the Far East. The point is that, as we have left the EU, and as we go through this transition period, the opportunities are absolutely tremendous in terms of what we can do in global deals generally, but it makes sense for us to start with the US.
My Lords, will my noble friend remind me: was is not the United States that imposed a tariff of 25% on exports of Scotch whisky to the United States from Great Britain? Will my noble friend ensure that the Government make it a commitment of these negotiations that that tariff will be removed? Can I pin him down on the wording used in both Houses? He said that the Government will not lower our standards of environmental and animal welfare. Will he commit to prohibiting imports of any product of animal origin from the United States that does not meet the same standards of production in this country?
I will first take up my noble friend’s question about Scotch whisky. Yes, it is true that there is this 25% tariff on Scotch whisky, but my understanding is that that is linked to an unfortunate state aid issue linked to Airbus. This is unfortunate and disappointing. My noble friend will know that we are looking to work through those issues. We very much hope, wish and expect that the tariffs on Scotch whisky will come down. My noble friend makes a very good point—I know that she has raised the issue of environmental standards on several occasions. Once again, we will not lower our standards as we negotiate new trade deals.
My Lords, should the EU be minded at some stage in the negotiations with us to allow new trade barriers, tariffs and quotas to be erected that affect trade between the EU and the UK, will it not be all the more important that we get on with some urgency to negotiate for the reduction of tariffs, quotas and trade barriers between ourselves and the US? If we do so, will that not encourage our exporters and consumers to believe that the damage caused by the unsatisfactory progress of negotiations with the EU will be offset? Will it not also encourage exporters and consumers in the EU to put pressure on their negotiators to think better of it and not allow new trade barriers to be erected between the EU and the UK?
I am sure the whole House will agree when I say that trade barriers and tariffs are a disincentive to business and that we do not want them. We realise that some are now trading under WTO terms, but the whole point of negotiating with the US, and in particular with the EU, is to get to a point where we lower those barriers. That will obviously be good for businesses and jobs. On the point that I think the noble Lord was making, as I said earlier, we have for some time been prepared to negotiate with the EU at the same time as negotiating with the US. We have the people, the working groups and preparations in place. I see the two working very well in tandem. The linkages that will be made between my department—the Department for International Trade—No. 10 and other departments will be made for both negotiations.
My Lords, more generally, could the Minister indicate what timetable the Government are working towards with these trade negotiating rounds, which, together with the EU round, will require face-to-face deliberations? Given Covid-19, are the Government in any way anticipating delay to the transition period to achieve the results they wish?
I am not entirely sure whether the noble Viscount was referring to the EU; obviously this subject is the US. However, I reassure him that, on the US negotiations, I am laying out the last process in informing the House, as my right honourable friend in the other place Liz Truss has informed the Commons, which is to set out this document, which the noble Lord, Lord Kerr, alluded to as being pretty good—“admirable”, I think. I answer the noble Viscount’s question by saying that we therefore fully expect to go pretty quickly into actual negotiations. I was told earlier today that we fully expect to do that by the end of March.
(4 years, 5 months ago)
Lords ChamberMy Lords, I have the great pleasure of speaking to the amendments standing in my name and that of my noble and learned friend Lord Mackay of Clashfern. Unfortunately, he is delayed. He had hoped to arrive in time, but I have the pleasure of moving the amendment anyway. Together, the two amendments call for collaborative working on the Bill. While in our earlier discussions we asked whether 10 objectives were plenty, here we are calling for one extra. To a certain extent we will understand if, standing alone, it is not accepted. However, the point behind collaborative working is very important.
Amendment 5 speaks for itself, so I turn to Amendment 26, which itemises the intentions behind this whole idea. The “collaborative objective” is to ensure that
“the fisheries policy authorities receive guidance on fisheries management from the fishing industry, scientists and other relevant stakeholders.”
That engagement has not been as close as it could have been over the years. The amendment would provide the opportunity to establish a proper common base on which these decisions can be made. Proposed new subsection (9B) says that guidance under proposed new subsection (9A)
“must be formally established and shared by a consultative group”—
in other words, there will be a direct link to make sure that it is established and that working together happens. Proposed new subsection (9C) states:
“Within six months of the passing of this Act, the Secretary of State must issue a consultation on the establishment of a consultative group under subsection (9B) or an alternative vehicle for producing guidance under subsection (9A).”
I am very grateful to the National Federation of Fishermen’s Organisations for its help in putting this amendment together. If my noble friend the Minister cannot accept it, I hope he will look carefully at what is being suggested, which is the need to make sure that we bring together all those who work in the fishing industry to come up with positive suggestions for future sustainability. The consultative group would guide and advise on policy; promote collaboration between central government and the devolved Administrations; allow ongoing dialogue on the viability of the industry; and channel the fishing industry’s knowledge and experience, about which I spoke earlier, into the design and implementation of management measures. This would be hugely helpful.
The consultative group would play a leading role in the use of secondary legislation—as we all know, the Bill will set up systems, but a lot of the detail will come in the secondary legislation—to ensure that we have an agile and responsive approach to future fisheries management. The inclusion of the consultative group of fishery experts would guarantee that sustainability issues are fully considered. It would also play a valuable role in the development and operation of the management plans proposed later in the Bill.
As I said, we might be adding an 11th objective—I still think number one, sustainability, is the most important overall—but it is important that those who work on the sea, those who plan for what is happening, the scientists and the data collected should work together. I have great pleasure in moving the amendment.
My Lords, I agree that there needs to be far more collaboration. It is the big missing thing in the Bill in many ways. We have a Bill that covers the whole of the United Kingdom. We have devolution in Scotland, Northern Ireland and Wales but I am concerned that we have no devolution in England despite the fact that the English fishery is diverse—as are those of the other nations—and I have amendments later in the Bill that seek to tackle that in a sensible and not too radical way.
I welcome the spirit of the amendments. They are the basement of what we need but I hope the Minister will take strongly the message that there needs to be consultation and working with not only the industry but, as the noble Baroness, Lady Byford, said, the larger stakeholders to make this sector work. I will be interested to hear the Minister’s response to this proposal.
I am grateful to the noble and learned Lord, Lord Mackay, and the noble Baroness, Lady Byford, for tabling these amendments, and I listened carefully to what the noble Baroness said.
The noble Baroness raised an important point about consultation, although, as we discussed in the earlier amendments, I am not sure—I think she acknowledged this—that adding it to the list of objectives is the right way to go about it. But the sense of what she is trying to achieve certainly has merit.
A number of the delegated powers in the Bill contain consultation requirements with devolved Ministers and/or representatives of the fishing industry. However, in that respect, the need for consultation is reserved for specific purposes and is envisaged as a one-off, whereas this amendment proposes a more regular and longer-term consultation. The noble Lord, Lord Teverson, said he thought it was at the basement of the types of consultation we should have but, nevertheless, we agree that there should be more comprehensive regular engagement with relevant stakeholders.
Moving further than the noble Baroness’s amendment, we need to make sure that the different sections of the UK’s fleet—the trawlers and the 10s and so on—are all effectively represented in the process. We need to make sure that the spread of stakeholders is right.
We are not doing very well with this Bill because we keep having to revisit and go back and forth to parts that we have already discussed. We have amendments later in the Bill which deal with the issue of consultation, and the noble Lord, Lord Teverson, has said that he has more detailed proposals with regard to the establishment of advisory boards and so on.
In the mix of all that there is the fundamental issue of consultation, and all these proposals have merit. We will listen carefully to what the Minister has to say on this issue and, when we have dealt with all the amendments we have tabled, we will try to pull together a considered view about the best wording and the best way forward. We would like to get this element of the Bill right and we may well have to come back to it on Report. As I say, we will listen to what the Minister has to say but we may need to pool our ideas to take this issue forward, and we should do so.
My Lords, I am grateful to my noble friend and my noble and learned friend—I am sorry he is not able to be present—and wholeheartedly agree with the principle that fisheries management should be informed by the best available evidence and that there should be close working between the UK Government, the devolved Administrations, industry, scientists and interested parties. All noble Lords who have spoken in this shortish debate have referred to that.
It is a long-established approach for the Government to engage widely on the implementation of policy. We have an expert advisory group considering issues relating to fisheries policy and, because the noble Baroness, Lady Jones of Whitchurch, raised one or two points, I would like to indicate which organisations are part of that to show the spread: the National Federation of Fishermen’s Organisations, the Scottish Fishermen’s Federation, the United Kingdom Association of Fish Producer Organisations, the Scottish Association of Fish Producer Organisations, the New Under Ten Fishermen’s Association, Greener UK, the British Retail Consortium, the Association of IFCAs and the UK Seafood Industry Alliance/Provision Trade Federation.
Additionally, we have a Marine Science Co-ordination Committee, bringing together bodies across government, together with senior scientific advisers. I mention in particular Professor Mike Elliott, director of the Institute of Estuarine and Coastal Studies and professor of estuarine and coastal sciences at the University of Hull, and Professor Michael J Kaiser, professor of marine conservation ecology at the School of Ocean Sciences, Bangor University. I mention this because it is important that your Lordships understand the range of the expert advice we are receiving.
The UK Government are also supporting initiatives from the industry—
I promise the Minister that I will not go through a list of even more organisations that should be consulted but Natural England is a key government and Defra body for looking at everything, including take-free zones and so on. Is it involved at all or is that done by the Secretary of State?
All the organisations that I have referred to are organisations rather than statutory bodies. Clearly, bodies such as Natural England have statutory functions and interests, and obviously are part of the work. The Environment Agency, Natural England and other such bodies would all have an interest in marine areas and so on. As to the part they will play in the expert advisory group—I will try not to mislead your Lordships—clearly all such statutory organisations and bodies would have a locus in this.
As to the initiatives from the industry itself that the UK Government are supporting to manage fisheries, these include, for example, the work of the Scallop Industry Consultation Group and the newly created shellfish industry group. We have also held a call for evidence on how we allocate additional English quota.
In addition—the noble Baroness, Lady Jones of Whitchurch, referred to this and we shall have discussions about it—the Bill includes statutory provisions requiring consultation and parliamentary scrutiny of proposals in the joint fisheries statement, any Secretary of State fisheries statement and fisheries management plans. The provision for consultation in these three areas—particularly when we get down to the fisheries management plans, which are about each and every stock—shows the level of ability and the importance of consultation. Its purpose is to get these matters right and to have sustainable fishing.
Given the complexities of fisheries management, the different interests and the different levels at which advice and engagement need to take place—be it at national, administration or local level—a one-size-fits-all body is unlikely to work. Consultation and collaboration will need to flex and adapt as we improve our fisheries management.
In addition, I am advised that, as drafted, the amendment would present some challenges given the devolution settlements. Officials in the UK Government have worked very closely with their counterparts in the devolved Administrations to develop and draft this new set of fisheries objectives. We appreciate the level of engagement that the devolved Administrations have shown in this work. The objectives are truly shared ambitions for our future fisheries management. I am pleased to report that the devolved Administrations already collaborate and consult widely in developing their own future fisheries management policies.
As I say, we will come to discussions on consultation at a later stage but I hope it has been helpful to my noble friend that I have set out in slightly more detail than I might have intended the organisations that are part of the expert advisory group. As we all know, we need to base what we do on scientific advice—and we are seeking the best scientific advice we can.
With those extra words, I hope my noble friend will feel able to withdraw her amendment.
My Lords, I thank the Minister for his response, and the two other noble Lords for supporting—in principle, I think—the ideas behind this amendment. Obviously, we look forward to looking at theirs in greater detail as well.
The one thing that slightly concerns me, as the Minister rightly said, is that there is no one size that fits all. I understand that but, on the other hand, if we have lots of little bits doing different things, surely you need something overall, like an umbrella, which brings it together. This is the thought behind the amendment. It is an ongoing consultation: it is not that you go out to consult on one issue, but that it would be something that goes on into the future. As my noble and learned friend Lord Mackay could not be here tonight, I say at this stage that I will obviously read Hansard very carefully, as I know he will. I beg leave to withdraw the amendment.
My Lords, in moving Amendment 11, I shall speak also to Amendment 13; both are in my name. These amendments tighten up the definition of the ecosystem objective, by removing the get-out phrase of “where possible”. They raise the issue of how we are going to measure what is possible and achievable.
We welcome that the Bill seeks to emphasise the need for an ecosystem-based approach to fishing and aquaculture activities, and to minimise and eliminate incidental catches of sensitive species. This is really important: we have a long way to go in firmly embedding the ecosystem objectives so that we can start to restore the damage that human overexploitation has caused over many years.
For too long fisheries management has been carried out in isolation from other marine management activities, with little consideration of its wider ecological impact. We debated this issue earlier with the amendments of the noble Baroness, Lady Worthington, which raised marine planning and the need to integrate these policies.
The recent marine strategy review found that the UK is failing to achieve good environmental status in 11 out of 15 indicators. The review went on to state that good environmental status
“may not be achieved for many years, unless there are further improvements to fisheries management measures.”
We need to drive that change as a matter of urgency. This leads us to the question: what are the legal implications of specifying that these measures should occur only “where possible”? I realise that this might be a legal nicety, and it might be necessary to put some of these checks and balances into a Bill, but I am also concerned that this is a loophole through which all sorts of bad practice will slip. We are probing the extent to which the Government are committed to securing the reversal of negative impacts and the elimination of incidental catches, rather than simply minimising them. Of course, we accept that these amendments are not perfectly worded, but we believe that the Government can go further than the current position in the Bill. I hope the Minister will acknowledge our concerns about the extent to which the existing wording waters down what would otherwise be a strong objective.
Amendment 14 takes a slightly different route to defining the ecosystem objective, by specifying the protection of endangered aquatic species and undersized fish. Again, we welcome this amendment as a helpful way of improving the current wording.
Amendment 12, on the catching of incidental species, seeks to impose a deadline on the Government’s delivery. We agree with the spirit behind this, and would be interested in exploring ways of achieving it; for example, having a reporting requirement rather than a hard deadline.
Amendments 126 and 127 deal with the specific definition of sensitive species with regard to cetaceans, or aquatic mammals. I am grateful to the noble Baroness, Lady Jones, for raising this concern. I am sure she will speak on this in a moment. It is clear that our conservation policies need to be at least as good as those provided by EU law.
I am glad to have the opportunity to raise this issue. Again, it goes back how firm the Government are in following through on some of the objectives they have set out, and not having too many loopholes that will enable Ministers or future fisheries management groups to disregard what was intended to be a firm policy. I am grateful for the opportunity to explore that further; I therefore beg to move.
My Lords, I rise to support Amendment 11 and the amendments in my name. I note that the Minister did not ask me to meet him before today, and so I am hazarding a guess that he is happy with all my amendments, which is a thrill for me. I almost think I do not need to argue for them here.
However, the Conservative Party manifesto, from which this Government obtained their democratic mandate less than three months ago, made a very specific promise about fisheries. In the section entitled “A Post-Brexit Deal for Fisheries”, big bold letters promised:
“There will be a legal commitment to fish sustainably.”
At the moment, that is a broken promise. There is nothing in the Bill about a legal commitment to fish sustainably. There are ambitions, powers, objectives, statements and a whole load of other bits and pieces, but no legal commitment. I would like the Minister to explain when that legal commitment will be put into the Bill. If it is because I have tabled my amendment, that is absolutely fantastic. The Government promised this to the people in exchange for their votes, so I do not think there is any way that the Government can say that it is not the will of the people and not put it into the Bill.
My Amendment 12 will eliminate the catching of sensitive species within five years of the Bill becoming law. That is important because the current drafting is very weak. Sensitive species should be protected whether incidentally caught or not, and this should not just be minimised but eliminated altogether. Five years gives industry plenty of time to adapt its methods and equipment to achieve this aim. So this is not a probing amendment; it is obviously going to be picked up.
Amendment 14, tabled by the noble Baroness, Lady McIntosh of Pickering, and others in this group have similar intentions. Any legal commitment to fish sustainably would contain these provisions, so the Government really need to listen to the Committee on these issues.
My Amendments 126 and 127 refer to the definitions set out in Clause 48. The definition of sensitive species is very curiously drafted, as it refers to
“any species of animal or plant listed in Annex II or IV of Directive 92/43/EEC of the Council of the European Communities on the conservation of natural habitats and of wild flora and fauna (as amended from time to time)”.
I read that out in full because it raises another very important point. Unless I am mistaken, and I am sure the Minister will correct me if I am wrong, this is not referring to retained EU law but to ongoing, actual EU law. Can the Minister please clarify that for me? It seems that a decision has been made to impose this little snippet of EU law onto our fisheries policy, which seems slightly strange. I would like to know more about that.
Amendments 126 and 127 seek to improve this definition of sensitive species so that it is not so heavily dependent on EU law, which is amended from time to time. This is particularly important for cetacean species: our dolphins, whales, porpoises and other similar highly advanced marine creatures, which, as we all admit, suffer extremely under the treatment they currently get. It is important to have cetaceans named in the Bill in case the Government later decide to remove reference to the EU directive, perhaps because they do not like it any more. I am in no way suggesting that this is the only way to deal with this issue, but the current decision to base the definition on EU law needs explaining and I think it needs to be improved.
Coming back to the will of the people, I want the Minister to reassure me that the Conservative Party’s manifesto will be delivered on this issue. I hope he can commit to working with noble Lords from across the Chamber, who care deeply about this and bring a great deal of knowledge and expertise. On his earlier point on the meanings of sustainability, the fact is that if you do not have environmental sustainability, neither do you have social and economic sustainability. If you deplete fish stocks, fishers will go out of business.
My Lords, I shall speak to Amendment 14 in my name and that of—if I may say so—my noble friend Lady Jones of Moulsecoomb. I was grateful for the opportunity to discuss this with my noble friend the Minister when we met. Currently, Clause 1(4) relates to the ecosystem objective. I agree with much of what was said by the noble Baroness, Lady Jones of Whitchurch, and lend my support to her comments. But there is currently no mention at all of endangered species in Clause 1(4). Even a cursory glance at the list of endangered species shows how deeply worrying this is, and that list is growing by the minute. I would also like to see some mention of sensitive habitats, which I think could loosely be encompassed within the ecosystem objective; perhaps the Minister, when he replies, will tell me that it is.
Certainly I would look for some form of recognition that we need measures to protect endangered species where they are being caught. In particular, I am conscious that dolphins and porpoises are being caught inadvertently in nets. I noticed that the Minister referred to mesh sizes and gear. When we met, I spoke about the work that I had seen when I visited Denmark and Sweden with Defra’s Select Committee. In the narrow stretches of water that they share, they are doing a lot of work to pool and collaborate on mesh sizes and gear. I would like to think that, particularly where endangered species are concerned, we could work towards this with our international partners.
The reason behind Amendment 14, as I raised with the Minister, is that there are species such as sharks and rays which seem to have been overlooked, and which I believe need statutory protection for the simple reason that they reproduce more slowly. I understand—and have heard evidence to the effect—that most commercial fish species reproduce more quickly. I believe it can be two years before sharks reproduce. Is this something that the Minister is aware of, and that the Government may see fit to add to the Bill, or is it encompassed in their thinking elsewhere?
My Lords, I rise to support Amendments 126 and 127, as tabled by the noble Baroness opposite, in so far as I want to hear the wise words of my noble friend the Minister. I am concerned that cetaceans should be included; I am sure he will tell me that they are, in some form or another, but I want to be assured of that. On that note, I would expect sea turtles to be included somehow, as that is another species very vulnerable to bycatch.
I should probably declare that I am a longstanding member of the Whale and Dolphin Conservation charity as well as the Marine Conservation Society. One of the problems when you talk about endangered species is that, while some are endangered and remain endangered, some are endangered but, after sustained work, might come off that list while others will go on. I would say that it is a moving feast, but that would rather imply that we are going to eat them all. As we deal with the Bill, we need rigorous measures in place to ensure that those species most at risk are protected. That is far as I will go. The noble Baroness, Lady Jones of Moulsecoomb, is perhaps a little down on this Bill. There are issues of sustainability, but it is our job in this Chamber to ensure that these are addressed. I am pretty certain that the Government’s motives are genuine in this regard; I wait to hear the words of my noble friend the Minister so that he can assure me of this.
My Lords, I should like to say a brief word as I have a question for my noble friend on the Front Bench: if the amendments in the name of the noble Baroness, Lady Jones of Whitchurch, are carried and the words “where possible” are deleted, what would happen in a situation where negative impacts cannot be reversed? Will the Government be liable for something over which they have no control? I agree with my noble friend Lord Randall, who said that he believes the Government are heading in the right direction. I just hope that perfection will not be the enemy of the good and of what we can really achieve.
My Lords, I recognise that the proposed Amendment 11 is designed to enhance protection of the marine environment. It would, though, have hugely significant impacts if we took it as it is drafted. Indeed, the impact could be as radical as stopping all management of the terrestrial environment, including farming.
I will explain why we have a concern about what is obviously a very laudable range of amendments. Requiring the reversal of all negative impacts on the marine environment is, we believe, not practicable if we are also to support the UK’s fisheries and aquaculture sectors. As a maritime nation, the UK’s vision of
“clean, healthy, safe, productive and biologically diverse oceans and seas”
acknowledges that we must balance the protection of our marine environment with our objective of supporting thriving fishing and aquaculture sectors. As I responded in an earlier group of amendments, that is because this is some of our best and most healthy food. We must remember that men and women go to sea to produce food for us. This approach is already supported in the UK Marine Strategy Regulations. Requiring our fisheries and aquaculture sectors to reverse all the negative impacts of their activities on marine ecosystems, as proposed in this amendment, would in our view render many fishing activities uneconomic. We must also recognise that fishing is not the only maritime activity that can affect the marine environment. Indeed, natural events do the same.
I will turn to Amendments 12 and 13, and take the opportunity to highlight that the UK Government agree with the purpose of protecting sensitive species from incidental catches in fishing nets. I hope that I can reassure your Lordships that the existing objective already provides the utmost protection possible for these species. The Government are resolutely committed to minimising bycatch of sensitive species as much as is practically possible. To achieve this, we are developing UK plans of action for cetacean and seabird bycatch, working closely with the fishing industry and environmental groups. Our various bycatch monitoring programmes are essential to inform this work.
We will also be launching a broader programme of work on protected, endangered and threatened species bycatch, which will support a holistic, ecosystem-based approach to fisheries management and will encourage the development of sustainable fisheries with minimal impact on sensitive species. The proposed Amendment 12, however, would legally require fishers to eliminate all bycatch within five years; Amendment 13 would require this as soon as the Act is passed. Sadly, I have to say that this is not practical or realistic. I mention this because—I think the noble Lord, Lord Grantchester, may have referred to this in a different set of amendments—with the mixed fisheries that we have, actually eliminating bycatch is not practical. It is desirable to do all that we can, and that is why our goal is to reduce bycatch to as close as zero as possible, but in many situations the complete elimination of bycatch is sadly not possible. Some sensitive species will inevitably be caught in nets and gear despite the implementation of effective mitigation measures.
The wording
“to minimise and, where possible, eliminate bycatch”
is accepted by environmental organisations and fishers, and is in various international agreements such as the Agreement on the Conservation of Small Cetaceans of the Baltic, North East Atlantic, Irish and North Seas, ASCOBANS, as well as existing legislation such as technical conservation measures and regulations. So we do have a concern because of what we think would be a disproportionate impact that would significantly and adversely impact the industry.
The amendments in the name of the noble Baroness, Lady Jones of Moulsecoomb, also seek to extend the objective beyond incidental bycatch to include deliberate catch. Again, I am advised that this extension is not required as Article 12 of the habitats directive already prohibits the deliberate killing of sensitive species.
At Second Reading my noble friend Lady McIntosh referred in particular to the more vulnerable nature of sharks and rays, and I understand, as she has mentioned, that this is the background to her Amendment 14. I wholeheartedly agree with the purpose of protecting endangered species and minimising the catching of undersized fish. I hope I can reassure noble Lords of the UK’s commitment to their protection through both the existing fisheries objectives and the current legal protections that are in place. The Bill has a definition of “sensitive species” that encompasses endangered species and goes beyond by including all species that are due protection under Annexes II and IV of the European habitats directive, which will become part of retained EU law. In relation to sharks and rays specifically, these species are protected from incidental catches in the bycatch objective in Clause 1(6) of the Bill.
Our fisheries objectives are also enforced by current domestic legislation—for example, the Wildlife and Countryside Act 1981 and the Tope (Prohibition of Fishing) Order 2008. These establish a legal framework for the protection of both threatened and endangered species. The bycatch objective in the Bill will require policies, which will be set out in the joint fisheries statement, to address the recording and accounting of bycatch.
I should say to the noble Baroness, Lady Jones of Moulsecoomb, that the legal commitment is met through the fisheries management plans and statement. That is where the legally binding aspect of the points that she and other noble Lords have raised comes in; obviously we are wrestling with the objectives at the moment, but their legally binding nature is through the fisheries statement and the management plans, which of course encompass all stocks.
I return to the point about the recording and accounting of bycatch. This will help us to understand the issue of shark and ray bycatch better, which in turn will support the development of effective adaptive management strategies for shark and ray fisheries. EU technical conservation measures that prohibit the fishing of certain sharks and rays as protected species will be incorporated into UK law as retained EU law. Catches of undersized fish are also included as part of the bycatch objective, which states that
“the catching of fish that are below minimum conservation reference size, and other bycatch, is avoided or reduced”.
The purpose of the amendments is therefore already achieved through the existing fisheries objective and reinforced with existing legislation.
On Amendments 126 and 127, I agree with the purpose of protecting all species of cetacean from incidental catches in fishing nets. Again, I hope that I can reassure noble Lords that the existing objective provides the utmost protection possible to species. I also say to my noble friend Lord Randall that the Convention on International Trade in Endangered Species and the CITES regulations include turtles. That is an international agreement to which the UK is a signatory.
I thank the Minister for that answer. I also thank the noble Baroness, Lady Jones of Moulsecoomb, for mentioning the wording in the Conservative manifesto about the legal commitment to fishing sustainably. This goes back to the discussion we had at the beginning of today’s debate: there seems to be a chasm between our understanding of what fishing sustainably is, and indeed what was implied by the Conservative manifesto, and what the Minister has told us it is. We use the word “sustainable” to mean environmentally sustainable but earlier the Minister was adding all sorts of other interpretations of the word. We need to thrash this out because I feel uncomfortable with “sustainable” having a much broader definition that encompasses economic and social sustainability. That is not what I mean; nor do I think it is what was intended by what is in the manifesto. The Minister said that the legal binding would be through the fisheries statements and so on, but when it comes to the legal requirement it is different if you use his interpretation of “sustainable” or ours. I do not think we have sorted that question. We need to come back to it and we will, as I am sure the Minister will be aware.
On our amendments on the ecosystem-based approach, I realise that taking out “where possible” was perhaps a stretch too far, but equally it brings up the question of how you measure what is possible. Anyone can say that something is not possible. I am not sure of the legal definition of what is and is not possible, but as long as you say that you will do something “if it is possible”, in my book that means it might not happen. Of course, I am not saying that our wording is right, but an ecosystem-based approach should be an all-encompassing approach that determines what is possible and what is not, what is measurable and which deadlines should be used to achieve all that. We should not need to have all the extra caveats that are in the Bill. As I say, I realise that I was pushing the limits of all this, but I feel as if we have left that door a little too far open and we might have to come back to it again.
I heard what the Minister said about sensitive species and I will certainly want to look very carefully at it in Hansard. I do not know whether the noble Baroness, Lady Jones, was reassured about the retained EU law. It seemed to make sense to me but she may take a different view on that. We will certainly need to check it again. We may come back to some of these issues but in the meantime I beg leave to withdraw the amendment.
My Lords, this is another probing amendment, following on from the discussion I had with my noble friend the Minister in preparing for Committee. Its aim is to tease out from the Government which international fisheries policy authorities they intend to co-operate with.
The back narrative of this is that in paragraph 71 of the political declaration published in October, it is stated, in respect of fishing opportunities, that:
“The parties should cooperate bilaterally and internationally to ensure fishing at sustainable levels, promote resource conservation, and foster a clean, healthy and productive marine environment, noting that the United Kingdom will be an independent coastal state.”
This will be extremely important when, as we see later in the Bill, a fisheries policy authority, when publishing a fisheries management plan, has to have regard to changes in circumstances, one of which could be changes in the UK’s international obligations.
My noble friend has expressed very clearly our desire to maintain our role in UNCLOS—the United Nations Convention on the Law of the Sea. Presumably we were an independent member of UNCLOS before we joined the European Union. I would like confirmation that our status in that regard has not changed. I know that there is a verbal commitment to our continuing engagement with ICES—the International Council for the Exploration of the Sea—but will we maintain the same level of spending as in the past? I am not clear, either, about which budget this will come from—the Defra budget or another departmental budget. It would be helpful to know that. We took evidence from ICES in connection with our work on the energy and environment sub-committee, and I have visited the ICES headquarters in Copenhagen twice. It is important for us to continue to rely on the excellent research work that it does.
I am not aware whether there will be any change in our status in relation to the Food and Agriculture Organization—particularly the fisheries and agricultural aspects of its work—or what our dependence on it will be, but that is also extremely important. One non-governmental organisation that I presume we have left, now that we are an independent sovereign state, is the European Environment Agency. It is of particular historic interest—I want to place this on record—that my right honourable friend the Prime Minister’s father, Stanley Johnson, is a great expert in this field and was a leading environmentalist in the European Commission for a number of years before he was elected to the European Parliament. He is still a highly regarded and internationally respected environmentalist in his own right. Will the Government commit to continuing to work very closely with, and rely on the work of, the European Environment Agency with regard to fisheries but also on other environmental work—particularly agriculture, when the Agriculture Bill comes up? I hope that we can keep the door open to the work of the European Environment Agency.
I would be interested to learn about the nature of our new relationships with international parties such as Norway, Iceland and the Faroes that the Bill sets out, particularly—dare I say—if a fisheries dispute arises. The Government have clearly stated that we will not be subject to any jurisdiction of the European Court of Justice, but I argue that there is a degree of urgency about fisheries policy—and other policies—since we are now an independent coastal state. Who will arbitrate in the event of any fisheries dispute in our new relationships with Norway, Iceland and the Faroes? More importantly, what will the dispute resolution mechanisms be with regard to any dispute with the other 27 European Union countries? If, for example, France was to follow through with its threat to blockade the continental ports, despite a fisheries agreement being in place, thereby preventing our fisheries products accessing the market—a very real prospect—what would the dispute mechanism be? We need to know. I am not aware what it would be and I seek reassurance on that.
International relations are particularly important because—I place this on record—the UN Convention on the Law of the Sea requires the UK to participate in management based on an agreement on straddling stocks, which means that we would need to negotiate almost everything. With those few introductory remarks, I look forward to clarification on the issues that I have raised this afternoon. I beg to move.
My Lords, I thank the noble Baroness, Lady McIntosh of Pickering, for introducing at last the other people who deal with our fish stocks—other national authorities. The fundamental flaw of this Bill is that it seems to ignore the rest of the world, while our fish stocks—most of them, including their spawning grounds—are outside our exclusive economic zone. Later in the Bill we come to amendments where, I hope, we can strengthen it so that it notes and acts on the real world, where this resource is not exclusive to us.
I welcome the Bill in relation to the scientific side, which, to give the Government their due, is well advanced in terms of using ICES and stock assessments, for example, and I hope that the Minister will tell us about a lot of other things that they are doing with regard to keeping within those international areas. However, we are a member of all sorts of regional fisheries organisations, such as the Northwest Atlantic Fisheries Organization, the North East Atlantic Fisheries Commission and various tuna organisations, as well as UNCLOS, as the noble Baroness mentioned. These are basic, fundamental aspirations that we need to exceed to make sure that we have the sustainability that we need.
My Lords, I rise briefly to support the thrust behind Amendment 15, in the name of the noble Baroness, Lady McIntosh of Pickering, which seeks to add a reference to appropriate international co-operation to the scientific evidence objective—an extension to the debate on a previous grouping. I am sure that we will return to the point about science and international co-operation throughout Committee—and, depending on the Government’s clarifications, perhaps on Report as well.
As your Lordships’ House has observed and debated on numerous occasions in recent years, fisheries management is complicated not only by the fact that fish have no knowledge of, or respect for, the boundaries of national waters, but that each species’ habitat shifts as ocean temperatures and conditions fluctuate—a phenomenon that is likely only to increase with climate change. This was the thrust of the point just made by the noble Lord, Lord Teverson.
The Government are committed under international law to co-operation with neighbouring states. They have indicated that they want annual negotiations with the EU on access to UK waters and quota, although on the premise that a fishing deal has been concluded by 1 July. While commitments to work with neighbouring states exist, such co-operation is important particularly for the gathering and analysis of scientific data. We are lucky to have world-class scientists and conservationists in the UK, but that does not mean that we cannot engage with and learn from others from wherever they come, and with organisations that the UK may also wish to co-operate with long into the future.
I hope therefore that the Minister will be able to offer assurances that his department will engage with international partners as appropriate, not just to agree high-level terms on access but to share science, practical knowledge and best practice, and that this will be included in the Bill.
My Lords, I am grateful to my noble friend Lady McIntosh of Pickering for her amendment in relation to international co-operation and for her indicating that it is a probing amendment. I agree with the sensible recognition that international co-operation will be important in the collection of scientific data.
The UK currently works closely with international bodies, particularly through our membership of ICES—the International Council for the Exploration of the Sea—which advises on the status of fish stocks. I am delighted to confirm that the UK is in the process of establishing a further agreement with it. This will ensure that the advice that we require is in place so that the UK can continue to meet its international and domestic commitments and obligations on sustainability. The UK’s share of funding for ICES will be a matter for the Budget and the spending review.
The UK will continue to make a strong contribution to international co-operation on data collection and related fisheries science. The scientific evidence objective stipulates that the management of fish and aquaculture activities is to be undertaken on the basis of the “best available scientific advice”. The best advice can be obtained only by co-operation. The UK also has obligations through the UN Convention on the Law of the Sea to co-operate with other coastal states in relation to shared stocks. Such co-operation includes the sharing of scientific research and data.
The UK is also a contracting party to a number of multilateral environmental agreements that have a remit within the marine environment and for marine species. These include the International Whaling Commission and the convention on migratory species and its sub-agreements. Working with a variety of parties, both domestic and international, is therefore covered within the existing objective.
To ensure that we are able to fulfil these obligations and to co-operate with international parties, including in the scientific space, the Bill gives us a power under which regulations can be made relating to specific technical matters as long as they are for a conservation purpose or a fish industry purpose.
One leg of the conservation purpose means that regulations can be made for the
“purpose of conserving, improving or developing marine stocks”.
This will allow the UK Government and the devolved Administrations, for whom equivalent powers are provided at their request, to make regulations to meet these international obligations for scientific and research purposes.
My noble friend also asked about the forums for dispute settlements. These are covered by Article 287 of UNCLOS. They are: the International Tribunal for the Law of the Sea, the International Court of Justice, an Annex VII arbitral tribunal and an Annex VIII special arbitral tribunal. I hope that answer her question. As for other international organisations, we have prioritised joining five regional fishing management organisations now that we have left the EU on the basis of where the UK has a direct fishing and/or conservation interest. They are: the North East Atlantic Fisheries Commission, the Northwest Atlantic Fisheries Organization, the Indian Ocean Tuna Commission and the International Commission for the Conservation of Atlantic Tunas. In addition, we shall want to join the North Atlantic Salmon Conservation Organization—NASCO—where our interests are focused primarily on conservation. With this explanation, I ask my noble friend to consider withdrawing her amendment.
I am grateful for the opportunity to have this short debate. Alarm bells are ringing given the leaked email over the weekend about the lack of importance apparently attached by the Government to farming and potentially to fisheries, so my noble friend the Minister will understand why there is considerable concern among the fisheries community. Your Lordships will have heard what she said about the financing for ICES now being a matter for the Budget and in particular for the spending review. I hope that there will opportunities for us to contribute to that. It was helpful to learn what the dispute resolution mechanism will be, but my heart sinks a little, because if one thought that a case before the European Court of Justice took a while, I shudder to think how long an average case involving fisheries before the International Court of Justice would take to conclude.
I am sure that we will return to these issues at a later stage, so I shall not press the amendment now. I beg leave to withdraw the amendment.
To ask Her Majesty’s Government what assessment they have made of the impact of treatment by unregulated and unregistered persons offering psychotherapy or counselling services upon the mental health and wellbeing of their clients.
My Lords, I thank my noble friend Lord Marks for bringing this issue to my attention and for introducing me to someone whose family had been turned upside down as a result of the “treatment” of a member of it—I have used inverted commas, as it is was not treatment recognised as such by any professional body. I am also grateful to noble Lords who will speak in this debate, bringing both professional and personal experience. I hope that the Minister or one of his colleagues will be able to meet me and the family member to understand to some extent the harms that came from unregulated counselling.
I want to touch on what it takes to be a professional counsellor; the importance of registration, regulation and protected terms; online and face-to-face counselling, and the research about harms done to individuals by unregulated counsellors. Of course, I will expect the Minister to clarify the role of the NHS in the world of counselling.
The terms “counsellor” and “therapist” are not protected. All of us could call ourselves such. While the number of unregistered therapists is low, the expectation is that clients or patients working with unregistered counsellors and psychotherapists are more vulnerable to the possibility of harm. This is because they have no assurance of the level of training or competence of the practitioner nor a redress system to access should something go wrong. A register of qualified counsellors is held by the Health and Care Professions Council, and I would not wish there to be any confusion between these perfectly legitimate individuals and others who are not. The register protects the public from the harm that could be caused by people practising in a profession when they are not qualified.
Let me be clear: it takes many years to train to be a psychiatrist. One has to qualify as a doctor, undergo the extra qualification in psychiatry and then work under supervision until ready to practise. Training as a psychotherapist takes 400 hours over several years and, in most cases, this is paid for by the individual, as are their own therapy sessions which are a prerequisite for qualification. Counsellors have a shorter timescale but, typically, they would have a relevant degree and then several years in training before they qualify. They can work in both the NHS and the private sector.
If they are not on the register, they are not qualified. If they are using one of the terms on the register to describe what they do, without qualification, they are breaking the law. Article 39(1) of the Health Professions Order 2001 makes it a criminal offence for a person, with intent to deceive—whether clearly or by implication—to say that they are on the register of the Health and Care Professions Council, or use a designated title to which they are not entitled, or say falsely that they have qualifications in a profession regulated by the HCPC. In times past, they would just have been called quacks.
To demonstrate how easy this is, a BBC journalist, Jordan Dunbar, recently obtained a counsellor qualification certificate online for the price of £12.99—the cost of a session in a 24-hour gym or a wind-proof umbrella. At present, it is up to patients to make sure that counsellors are qualified and registered with an accredited body. The onus is on the patient, not the provider. A well mocked-up certificate, accompanied by a brass plaque, offers confidence to an anxious and vulnerable member of the public looking for someone to share their confidence with. However, practitioners interact with people at some of the most distressing times in their lives, leaving them vulnerable or worse. Research has shown that fewer than two-thirds of patients are aware of whether their therapist is a member of a professional body.
Many people who use private services do so because the NHS service is hard to access and there is a waiting time. A quick look at the NHS website does not mention waits and these may be quite short if access is via your GP. The NHS website also has an online assessment tool called “Mood self-assessment” which takes a very top-line look at depression and anxiety and makes sensible recommendations based on the results. I used it this morning; it was time not terribly well spent. The NHS Long Term Plan promises to
“deliver the fastest expansion in mental health services in the NHS’s history, with thousands more adults being able to access talking therapies for common disorders and better support being off ered to children and young people.”
When he sums up, will the Minister tell the House where the progress is with this ambitious claim since the publication of the NHS Long Term Plan?
This issue is only becoming more urgent. Waiting lists for non-primary care NHS mental health services are long, and patients are turning to private healthcare solutions which are less likely to be affiliated to voluntary regulators. Also becoming more common are online treatments, where there is little accountability for any harms caused, making it easier than ever for patients to be exploited. Online counselling is a different matter altogether, as there are no boundaries. Mobile phone apps abound to increase well-being, gain confidence and sort personal problems. But there is not a lot of research on this. We know there is no regulation, no way of knowing where the site is based, or the qualifications of the counsellor, or a guarantee that you will be connected to the same person each time. The risk is real. Without protecting these terms, we leave the profession open to abuse by those who practise pseudoscientific therapies with the outcome of doing harm to their clients.
It is vital that the Government assess the impact of these harms. I have been contacted by individuals whose stories, although anecdotal, paint a picture of a real risk to their mental health and safety. The stories are extremely distressing. They tell the tale of vulnerable people putting their trust in therapists only to be exploited and isolated from their loved ones. It is no exaggeration to say that lives have been ruined. It is essential that these harms are documented so that we can find solutions. One possible solution, which I favour, is statutory regulation. This has been debated before in this House, largely driven by my noble friend Lord Alderdice. Unfortunately, the issue has been pushed off the agenda in recent years, but now is the time to revisit it. The Government have previously stated that statutory regulation may be introduced if harms to the public can be demonstrated and this risk cannot be addressed through other means. Will the Minister give some indication of what the department might do to help with the issue of assessment of harms?
Patients say that reporting harms through voluntary regulatory bodies can be an arduous process. This has been demonstrated in cases such as that of Patrick Strud. His therapist subjected him to so-called conversion therapy. Mr Strud had to wait two years for the BACP to withdraw her membership. The Government have indicated that they will outlaw conversion therapy. We all need to be comfortable with the way we are, and not feel that we are different. I hope that the Minister agrees that even one such case is too many and that our current system needs updating. When will the Government take action on those therapists who offer these services?
The most concerning issue is that, even if these regulatory bodies strike off a practitioner for misconduct, there is no legal requirement for that individual to stop practising. This includes those who are struck off for very serious allegations, including serious sexual misconduct. When I agreed to table this Question for Short Debate, I was surprised at the number of people who wrote to me with tales of family members who had been harmed through counselling, not helped or healed in the process. Although voluntary registers, such as the BACP and the UK Council for Psychotherapy, provide some safeguards, they are not enough, and they say that they would welcome regulation.
Given the experience and interest of all noble Lords, I am sure we are in for an excellent debate.
My Lords, as this is a time-limited debate with a dozen speakers, I remind the House of the three-minute speech limit.
My Lords, I congratulate the noble Baroness, Lady Jolly, on introducing this debate so ably. We live in a world of dazzling change, in which the digital revolution and AI are among the major driving forces transforming our lives. This is new territory for all of us, but children and young adults are especially on the front line. The online world is almost wholly unregulated. Many traditional pathologies, such as addiction, appear in new forms. According to NHS estimates, 75% of people in England experiencing mental health problems get no treatment at all. It is not surprising, therefore, that the internet is awash with, in the words of the Question, “unregulated and unregistered persons” offering treatment for mental disorders, including in the shape of a swarm of apps offering counselling and therapy. Almost all of this is without any backup from registered healthcare professionals. Will the Minister update the House on the progress of the NHS’s Moodzone, which contains a directory of approved mental health apps? However, there is surely a need for a much more comprehensive strategy to deal with this new Wild West frontier.
The issues here for mental health are far-reaching indeed, since it is hard for any national Government to stamp their authority on the use of data that are in a large part global. Young people today spend a high proportion of their life online. Digital addiction is a huge issue in itself, with largely unknown consequences, since no previous generation has grown up in such a context. Have the Government set up any research projects on how to cope with its likely longer-term impact and its pathologies?
It is good to see that the Government are seeking at least to grapple with these issues, both in the context of the NHS and more widely. They have announced plans to upgrade the ways in which health apps and other digital technologies are reviewed and monitored by the NHS. To do so, it is said, Ministers are working with the digital corporations to try to establish proper standards of scrutiny and transparency—daunting though that is, given the speed with which the digital world Is evolving. A new digital health technology standard is being developed.
It is clear from ongoing research in this country, in the US and elsewhere that the selective use of Al could make a major contribution to diagnostics, which would mesh with the reforms that I believe are needed. As my final minute elapses, will the Minister say whether the Alan Turing Institute is at the forefront of such research?
My Lords, I have seen at first hand the devastating effect on a family whose lives have been turned upside down as they see a loved one being exploited and isolated from them by a bogus therapist, so I am delighted to support the noble Baroness, Lady Jolly. She has said everything that I would wish to have said and asked the questions that I would have asked.
I will make one further point: Section 76 of the Serious Crime Act covers domestic abuse. The Government accept that individuals can be coercively controlled, and they have rightly made it illegal for a spouse, partner or parent to coercively control somebody with whom they have a relationship—that is an imprisonable offence. However, in the case of coercive control, the law does not apply equally to everyone. A person coercively controlling their daughter would be breaking the law, but the same person coercively controlling someone else’s daughter is not covered by the law. There does appear to be a gap in the law, so will the Government look into this?
The noble Baroness, Lady Jolly, made the point that the terms “counsellor” and “therapist” are not protected—all of us could call ourselves such. I have been sent a list setting out some of the differences between healthy therapy with a trained professional and unhealthy therapy with an untrained person. A trained professional therapist is accountable and does not hide behind fronts, whereas an untrained person is not. Their qualifications are recognised by an outside body, whereas an untrained person is often self-appointed and usually hides behind fronts. Healthy therapy rehabilitates and is for the benefit of the client; unhealthy therapy debilitates and is often for the benefit of the therapist. A healthy therapist’s objectives are agreed with the client, as opposed to being the therapist’s own goals; they promote healthy relationships with others, as opposed to fostering alienation from others. A healthy therapist will aim for the independence of the client, as opposed to their dependence, and will psychologically enable the client and not disable him or her. In healthy therapy, questioning is encouraged, whereas a bogus therapist will discourage it.
The noble Baroness has raised a really important issue. 1 look forward to hearing the Minister’s ideas on how vulnerable people can be protected from unregistered and often very dangerous quack therapists.
My Lords, I should first declare an interest; I am married to a chartered psychologist who works for the National Health Service. I too congratulate the noble Baroness, Lady Jolly, on securing this debate and on her very powerful speech.
The Government have rightly chosen to prioritise mental health in recent years, but, if we are going to take mental health seriously, we really must take seriously the question of who becomes a mental health practitioner. We do not allow unqualified people to carry out surgery, but we allow anybody to call themselves a therapist, a counsellor or even a psychologist. I recently did some research of my own. I came across a college offering a level 2 “Introduction to Counselling” course. The course has no specific entry requirements. It is online and to pass it requires just 80 hours of study. The advertising material states:
“The course is approved by the ACCPH”—
the Accredited Counsellors, Coaches, Psychotherapists and Hypnotherapists, and—
“at the end of this course students will be able to join and become a member of the ACCPH. The ACCPH is an independent self-regulated professional body for counsellors, psychotherapists and hypnotherapists.”
I went to that body’s website, which states that,
“joining as a professional member will prove to potential clients that you are fully qualified.”
Now, for all I know this course, which costs £379—rather more than the £12.99 course previously referred to—may be very good value for money, but I question whether 80 hours of tuition, without any practical face-to-face experience, is sufficient to become an accredited counsellor. Needless to say, the Professional Standards Authority does not recognise the ACCPH as an accredited register, but it is expecting a great deal of often vulnerable and anxious people to know that the PSA exists in the first place, to visit its website and to understand what it means when it lists a register as “in” or “out”.
The Five Year Forward View for Mental Health recommended, four years ago:
“The Department of Health should consider how to introduce the regulation of psychological therapy services.”
I was optimistic that things would change, but the department dragged its feet. The recent statement by the noble Baroness, Lady Blackwood of North Oxford, that
“The Government has no plans to extend professional regulation to psychotherapists or counsellors”
is, for me, at least, deeply disappointing. Her statement that
“We urge anyone seeking the services of a psychotherapist or counsellor to take the time to find a reputable, insured and appropriately qualified practitioner”,
sounds a little complacent. I hope the Minister, for whom I have the highest regard, will tell me that I have misunderstood that statement.
My Lords, like other noble Lords I am grateful to my noble friend Lady Jolly for securing this debate. As a psychiatrist in psychotherapy for the whole of my professional life, I found that the question of unregulated psychotherapy came to me as a problem quite early on. It is now 20 years since I introduced a Private Member’s Bill. I did not do that simply off my own bat; I spent many months consulting all the major psychotherapy and counselling bodies in this country—and almost all, even at that time, were entirely in agreement about the need for regulation of psychotherapy.
However, it is not an easy business. Indeed, the practice of psychotherapy is difficult to regulate, so we focused on a Bill that would require the registration of psychotherapists—in other words, the protection of title, so that people would at least know the person with who they were engaging and whether that person was professionally accountable and trained. The Government, however, did not accept it. They said that they still had to be persuaded about matters of effectiveness—though, frankly, that has nothing to do with regulation and registration. They have now had a further 20 years to address that question.
During that 20 years, professions such as medicine—my own core profession—social work, clinical psychology, nursing and, indeed, the functions of the NHS itself have all had to undergo increasing amounts of regulation and supervision, and absolutely properly so. Are the Government still convinced that, while doctors, nurses, clinical psychologists and social workers all need to be regulated, psychotherapists, almost alone among all these professions, can be left to simply regulate themselves?
Let us consider that the vast majority of such therapists are operating on their own, outside the NHS, and not as part of a core profession. Those who are part of a core profession are, in that sense, already regulated. Working within the NHS, they are almost all working not on their own but as part of multi- disciplinary teams, and they are operating within a health service structure which is itself highly regulated. So it is not just a question of psychotherapists; the context in which they are working is so much more open and flexible and therefore has the potential for abuse. My three minutes are virtually up, but, 20 years after my Private Member’s Bill, I think that the Government’s time ought to be up in terms of doing something serious about the registration and regulation of psychotherapy and counselling.
My Lords, I join the thanks to the noble Baroness, Lady Jolly, for securing this debate. I absolutely support the aim of properly regulating psychotherapy and counselling. I will make two quick points. First, there should be routes into counselling for people from all walks of life. Secondly, supervision for counsellors should include casework supervision.
I had the privilege to work for over 20 years as a director of the charity Employee Counselling Service. During that time, I must have worked with 60 or 70 counsellors, all accredited and registered. I came to appreciate the importance of different routes into counselling. The clients we worked with included refuse workers, school caterers, hospital orderlies, care home workers, train drivers and office workers. Half the clients were men; they were people who probably never dreamed in a million years that they would be talking to a counsellor. It was important that the counsellors they worked with understood something of their lives and the day-to-day pressures that made it hard to step back and take time to reflect. They often needed to prioritise changes to help secure their jobs, homes and health before they could give space to other issues.
The world of counselling can sometimes seem designed for middle-class therapists working with middle-class clients. Counsellor supervision is generally focused on supporting the counsellor, which is of course essential. A common factor in the reports of BACP disciplinary hearings is that counsellors work alone and without accountability until a client makes a complaint. It should not be left to the client to have to identify problems.
In the voluntary sector, it was usual for counsellors to receive casework supervision. This, more than anything else, safeguards the client from counsellors who may lose focus or get out of their depth in their work. Casework supervision, which involves a supervisor regularly discussing the direction and progress of each case, safeguards both the client and the counsellor. I hope the Minister will take up these two issues to ensure the well-being of clients and counsellors.
My Lords, I join other noble Lords in thanking the noble Baroness, Lady Jolly, for introducing this debate. At its heart, this debate is about preventing the exploitation of the vulnerable—not of the mentally ill, the elderly or children, who are protected quite widely by the law already, but of those whose vulnerability, be it emotional or psychological, permits them to be preyed on by charlatan counsellors. These charlatans suborn them through their cynical promises of peace of mind and future happiness; through lies about their families and bogus therapy they suborn them into breaking off contact with them. Frequently, since they target people with money, they charge exorbitant fees for doing so. They are purveyors of deceit, misery and distress. They need to be stopped.
I first came across this form of quackery in the late 1970s, when I was acting for the Daily Mail against a cult called the “Moonies”, who broke up families wholesale and brainwashed children. Most of them were adult children in a vulnerable and emotional state, lonely and far away from home. I was reminded of them in about 2013 or 2014 when I came across the case of a young woman who had been suborned into leaving her family, cutting herself off and paying this extraordinary woman vast sums of money for her quackery. Supported by David Cameron, the then Prime Minister, Sir Oliver Letwin, then the Government’s policy chief, and Mr Tom Sackville, a former Home Office Minister, I attempted to amend the law to prevent these quacks operating and exploiting their victims. Although we tried, we could not find an opportunity to amend the law and achieve our aim.
However, it can and has been done. It has been done in France, Luxembourg and Belgium. They have passed laws to amend the criminal law which have withstood challenges in the Strasbourg court under the European Convention on Human Rights. With care, provision can be made to protect freedom of religion, assembly and association so that, for example, adult children can if they want to, even if their parents object, join closed religious orders, give their money away or just cut themselves off from their families. But quacks should not be permitted any longer to exploit emotionally vulnerable adults.
This cruel practice must stop. We should ensure that it does. I suspect that we give more protection to cats and dogs against quack vets than to emotionally and psychologically vulnerable adults against quack counsellors. It is time we did better.
My Lords, I have been a psychiatrist for 40 years, and it will not surprise your Lordships that I agree with every word that has been said in this welcome short debate of the noble Baroness, Lady Jolly.
I have long been astonished that we have such regulation for practically every healthcare profession under the sun except psychotherapy. Art therapists, for example, are registered and regulated; so are osteopaths and chiropractors, who both have their own regulatory councils. Yet we left the Professional Standards Authority struggling to think through how it would approach this problem. It could not regulate this massive amount of mental health care without doing something about it, and so it developed its accreditation scheme— and all credit to it for doing so—but the time really has come.
Efficacy is clearly not the issue at stake because, after all, there are many qualified physicians and psychiatrists who are not very efficacious. Nevertheless, we try to ensure that they do not cause positive harm by making sure they have appropriate training. The issue is whether a person is setting themselves up to provide care and support to somebody else. That is healthcare, and somebody doing that needs to be regulated.
I have heard it said that some of these therapists do not want to be regulated. I am sure they do not, but if you were here in 1856 and listened to the antipathy in the debates towards the notion that you might regulate doctors, you would hear the same arguments. The time has come.
There are now over a million new people coming into the health service to ask for psychotherapy every year, and we provide that to them, admittedly through accredited organisations. Nevertheless, there are a huge number of people getting it, and it is clear that the time has come to offer proper regulation and reassure the people coming to ask for help that individuals have got at least some accreditation and that we can protect the public from harms.
My Lords, I thank my noble friend Lady Jolly for the opportunity to talk a bit about conversion therapy, or the use of non-accredited counsellors offering psychotherapy or counselling to those seeking help for their unwanted same-sex attraction, which is prevalent in some churches. It is defended by some religious groups as a legitimate part of their faith, but the majority of churches, alongside the professional bodies, see it as a very harmful practice.
In December 2018, there was a small study of people who had been subjected to conversion therapy. Of those, two-thirds said that they wanted to see the practice made criminal. The remaining third did not want to see it criminalised, but they did want to see it stopped, because it had profound and harmful effects upon the people who were subjected to it.
That is the point I want to make, following that from the noble and learned Lord, Lord Garnier. We go to religious organisations in the extremes of happiness and of despair. They are rarely neutral places in which to transact matters such as counselling. Therefore, it is only right for us to ask the Government, when they bring in some form of regulation—and they will inevitably have to—not to allow, as they do in other cases, any form of exemption for religious organisations. There should be ethical standards to which all practitioners, no matter the context in which they practise, conform.
The Government’s LGBT Action Plan recognised this as a very important issue for our community. There are some particularly vulnerable young people who are perhaps locked into religious communities, from which it is difficult to find a way out or alternative point of view. It is of the utmost importance that we make sure that, when those young people live their faith, they do so in safety. Therefore, I ask the Minister to update us on what is admittedly a technically difficult area of law but one that is of the highest importance to a number of people and one that, I would suggest, is urgent.
My Lords, I am also grateful to my noble friend Lady Jolly for securing this debate and her clarity in opening it. We have had an excellent and, so far, unanimous debate.
In a humane society, unqualified practitioners may not set themselves up as doctors and dentists to practise medicine or dentistry without training, supervision or regulation, as the noble Baroness, Lady Murphy, and others have eloquently argued. We now promise, and are promised, parity of esteem between mental and physical health, which the Mental Health Foundation defines as
“valuing mental health equally with physical health”,
with commitments for
“equal access to the most effective and safest care and treatment … equal efforts to improve the quality of care … equal status within healthcare education and practice”.
If those commitments are to be more than glib platitudes, we must end the scandal of untrained and unregulated self-styled therapists, counsellors, healers or life coaches peddling untested and dubious treatment to the psychologically and emotionally vulnerable and suffering.
We have heard harrowing accounts of victims, often young, brainwashed by unscrupulous and controlling individuals. These charlatans play on their clients’ suffering, deluding them into a false belief in their treatment, often conjuring up in them fake memories about their early years and inducing unhealthy long-term dependence on the therapist and rejection of families and friends. For this, they often take significant fees and frequently inflict devastating and long-term damage. This debate has pointed the way to what is needed.
First, we must insist on licensing and regulation for therapists, for which my noble friend Lord Alderdice and the noble and learned Lord, Lord Garnier, have long argued. We need an approved body that maintains a register of practitioner members, who must secure qualifications, comply with a clear statement of ethical standards and submit to supervision.
Secondly, I support the call by the noble Lord, Lord Astor, the charity Family Survival Trust chaired by Tom Sackville—a former Home Office Minister, who is here tonight—and leading academics in seeking amendment to the Serious Crime Act 2015, which outlaws controlling or coercive behaviour, but in a domestic context only, where perpetrator and victim are in an intimate personal relationship or live together as family members. The Act needs to go wider to cover so-called therapists causing psychological damage and distress to their clients and their clients’ families and friends. Such legislation would be simple and effective. Will the Government bring forward such an amendment to the Act now?
I thank the noble Baroness, Lady Jolly, for securing this debate and I assure the noble Lord, Lord Marks, that we will be unanimous in this discussion. What the noble Baroness, Lady Jolly, has done is to illustrate the problems and dangers of a sector that is not properly regulated, and it goes from one extreme to another.
One extreme was outlined in the letter that we all received about unregulated abuse, coercive control and cultic abuse. It makes the point outlined by the noble Lord, Lord Marks, about recognition of coercive control covering domestic matters only and failing to recognise the harm that can be done by the sorts of organisations that were graphically described to us by the noble and learned Lord, Lord Garnier. Therefore, the law is inadequate in this regard and needs to be addressed. The Minister must realise that the whole House is unanimous in thinking that that needs to happen. He needs to know that, when the first Bill comes along in which we can bring forward that amendment, we probably will. The Government would be wise to do it themselves, because they will lose otherwise, because the House is united in this.
The other extreme is the regulatory framework, with which all noble Lords are familiar. It is significant that the Professional Standards Authority felt it needed to draw attention to the inadequacies in this direction, in the letter that we received from Christine Braithwaite, the director of standards. She says:
“for a number of years we have requested changes to the Rehabilitation of Offenders Act 1974 and the Safeguarding Vulnerable Groups Act 2006 to include Accredited Registers to better strengthen the protection they are able to provide. To date, no amendments have been made.”
If the body that registers the different counselling and psychoanalytic organisations is saying that this is inadequate, as well as saying that the regulatory framework is inadequate, the Government really need to sit up and listen to what is being said right across the piece.
It is a matter for the Government to regulate this profession. Statutory regulation will offer great protection to the public. The Government also need to look at the titles of counsellors and psychotherapists to make sure that they are recognised as such and are being protected under statutory regulation. I look forward to what the Minister has to say.
My Lords, I join others in thanking the noble Baroness, Lady Jolly, for raising this important issue. Before I make my formal comments, I should like to recognise the clear and strong feelings expressed on this issue in the House today, which one cannot help but feel moved by. On a personal note, perhaps I may share that I have myself lost a friend to manipulative individuals. It was a friendship that I valued very much, so I can feel some of the hurt that Members have expressed about that sensation of losing loved ones in such difficult circumstances.
I shall move on to the more formal comments about the Government’s approach to mental health services. I want to reassure the House that this Government absolutely put the modernisation of mental health services at the heart of our commitment to the health of the British people. The message on mental health has come up again and again in the Chamber and I have stood at this Dispatch Box many times to hear it. I want to reassure noble Lords that that message is 100% understood.
I need hardly remind some of those here that spending on NHS mental health services has already risen under this Government from £10.9 billion in 2015-16 to £12.5 billion in 2018, and that under the mental health investment standard, for the first time clinical commissioning groups are increasing the amount spent on mental health services by at least the amount of their overall budgets. The noble Baroness, Lady Jolly, asked for clarification of the role of the NHS. Let me reassure her that the NHS Long Term Plan also explains that there will be a comprehensive expansion of mental health services, giving 380,000 more adults access to psychological therapies, which represents a huge expansion in the Government’s investment in mental health.
However, I recognise that as well as expanding the size of mental health services provision, the Government need to understand the importance of ensuring the quality of the services that are delivered. We agree absolutely that service users should be able to expect high-quality psychological therapies that bring about positive impacts on mental health and recovery. The noble Baroness, Lady Jolly, asked specifically what progress has been made on mental health goals in the NHS Long Term Plan. I reassure her that 12 pilot sites have already received £70 million of funding for new specialist services and that that is the first step in a £975 million investment as part of the long-term plan to transform community mental health services.
The Government are committed to improving access to psychological therapies through the Improving Access to Psychological Therapies programme. Each year, more than 1 million people access IAPT services and the Government are committed to expanding them massively so that by 2023, 1.9 million people will be able to access those services. I can reassure the noble Baroness, Lady Jolly, that waiting times, which she asked about, for access to IAPT services have also improved to the point that 98% of patients seeking a first referral get that referral within 16 weeks, against a target of 95%.
The IAPT service provides a gold standard, highly professional service, routinely monitored on outcomes achieved, and the professionals providing these services undergo regular outcomes-focused supervision. These principles ensure that therapies are delivered by fully trained and accredited practitioners with appropriate skills in providing individualised support to people with mental health problems. The intensity and duration of each IAPT therapy is designed to optimise patient outcomes and, as the noble Lord, Lord Alderdice, alluded to, all IAPT clinicians should have completed an IAPT-accredited training programme with nationally agreed curricula aligned to NICE guidelines. High-intensity therapists in IAPT services should be accredited by the relevant professional bodies and all IAPT clinicians should be supervised weekly by appropriately trained supervisors in the manner rightly described by the noble Baroness, Lady Bryan.
None the less, we are aware of concerns regarding the treatments that some people receive from some services outside the provision of government services. My noble friend Lord Astor spoke very movingly about healthy and unhealthy therapies, and in this matter he is entirely right. The anecdotes recounted by noble Lords, including the story from the noble Lord, Lord Macpherson, about the ACCPH, are clearly disturbing. We acknowledge that some private individuals are delivering therapies that may be putting patients’ safety at risk. I have read the Unsafe Spaces blog and the contributors’ concerns. I watched the BBC documentary that noble Lords referred to. Who can read these stories without feeling a sense of sadness? I think of my own lost friend.
Let us be clear. The Government are committed to a proportionate system of safeguards for the professionals who work in the health and care system. I join the noble Baroness, Lady Thornton, in paying tribute to the Professional Standards Authority and its important letter that was circulated among noble Lords, and describing its recommendations as interesting.
Where practitioners pose a direct risk of harm to the health and well-being of patients, legal avenues will and must be explored. The noble Baroness, Lady Jolly, described many of the legal remedies. I assure the noble Lord, Lord Astor of Hever, that coercive or controlling behaviour has been an offence since 2015. The Government remain committed to supporting the police to bring offenders to justice and to ensuring that victims have the support they need to rebuild their lives.
However, more rules are not always the answer to every problem. While statutory regulation is sometimes necessary where significant risks to users of services cannot be mitigated in other ways, it is not always the most proportionate or effective means of assuring the safe and effective care of service users.
We do not take this position without careful thought. We have previously considered the introduction of statutory regulation of counsellors and psychotherapists. We have considered various Private Members’ Bills, including from the noble Lord, Lord Alderdice. None the less—in reply to the noble Lord, Lord Macpherson, and others who have asked the question straight—I will give a straight answer: we currently have no plans to do this. This may come as disappointing news but, as I am sure the noble Baroness will appreciate, there is a wide range of mental and physical therapies on offer in modern Britain and an important focus on personalised approaches to mental health care and treatment. What might suit one person today might be snake oil to another.
The noble Lord, Lord Giddens, asked about health apps. The NHS app library contains a number of mental health apps, which undergo a number of quality checks before they are allowed on the website. Some apps, such as Chill Panda and Cove, are currently being tested in the NHS.
The regulation of these services is complex. Issues that must be considered carefully include the impact of any regulation on delivery, quality, ensuring that we do not stifle innovation, ensuring that we do not discourage individuals from working in mental health and the principle of consumer choice. However, I assure the noble Baroness and other noble Lords who have spoken in this debate that the Government remain committed to addressing the important recommendations of the—
My Lords, I am sorry to interrupt, but I know the Minister has a few minutes left. There was mention of the Serious Crime Act. Does the Minister recognise that Act’s limitation—which the noble Lord, Lord Astor, and I mentioned—to the domestic context? Will he do something about it? Will he also confirm agreement to a meeting to discuss the future of regulation?
My Lords, I was just reaching the key segment of my speech. With kind permission, I will finish the speech, since time is of the essence.
I assure the noble Baroness and other noble Lords who have spoken in this debate that the Government remain committed to addressing the recommendation in the Five Year Forward View for Mental Health to consider the regulation of psychological therapy services, including their inspection. The department is currently considering issues around regulation of this area. I assure the Chamber that we will carefully consider the potential impact on services and the people who use them. I will endeavour to update the House on progress as it happens.
I assure in particular the noble Baronesses, Lady Barker and Lady Jolly, that the Government are committed to ending the practice of conversion therapy. The 2018 LGBT Action Plan clearly outlined that commitment. The Government Equalities Office is currently working on this.
In the meantime, I extend my thanks to the noble Baroness for securing this debate and to all noble Peers here today. It is an important debate. The noble Lord, Lord Alderdice, said there had been no progress in the last 20 years. We now have more than 50,000 talking service professionals on the registers, accredited by the Professional Standards Authority. The department is currently considering the regulation of psychological therapy services, as per the recommendations in the Five Year Forward View for Mental Health. This is progress. The department will set out further details of its considerations on these matters later in the year and Ministers will be happy to update the House as this work develops.
(4 years, 5 months ago)
Lords ChamberMy Lords, I suspect that this amendment will not take up a lot of the Committee’s time. I want to understand what the equal access objective is trying to do and what its implications are. The objective says that
“the location of the fishing boat’s home port, or … any other connection of the fishing boat, or any of its owners, to any place in the United Kingdom”
does not affect their rights. If I read that objective as a local fisher—perhaps in Mevagissey, the nearest port to me, or in a smaller fishery down further west, let alone those along the south coast—I would be concerned that any decision by government to allocate anything at all could be challenged by a larger fleet, or by someone from further round the coast, and could disrupt or exploit a well-managed local fishery. I understand entirely that the last thing we want to do is compartmentalise the United Kingdom in any way, and I think the system works fairly well as it is at the moment. This is the one area where perhaps I would like to keep the status quo, rather than introduce this objective.
My concern is that this makes local fisheries susceptible to challenge when it comes to fishing rights and their ability to look after particular stocks or to get Marine Society accreditation. This is a threat. I would be very interested to hear from the Minister why the Government want to do this and why I should not fear the consequences for the lesser fleets in the United Kingdom. There is also a slight risk that this might encourage further consolidation of the market. We already have market concentration and it concerns me that those are the fleets with the money, capacity and ability to buy or to trade fishing rights, so this is an area of susceptibility.
When I first got involved in fisheries in the 1990s, I used to talk regularly to fishing organisations down in the far south-west. Publicly, there was always a concern about the Spanish fleets. Whenever you put a microphone or camera in front of someone, they were the big threat. If you talked to them otherwise, it was the Scots who came down and took everything out of the water when they had nothing better to do north of the border. I am not for a minute saying that is the case today, but I have a real concern here and I would be very interested to hear from the Minister why I should not be so afraid. I beg to move.
My Lords, perhaps I might add a question to this. To understand what the equal access objective is about, one should look at Clause 17 of the Bill. If a Scottish fisheries authority were to grant a licence to a non-UK fishing boat under the new regime, that would be a licence to fish in Scottish waters. Both this current objective and, indeed, the related amendment on the determination of fishing opportunities say that, when a ship is licensed, or when fishing opportunities are allotted, this cannot be done to British boats on the basis of where they come from. If I understand correctly—I put this simply because I am sure the Minister will put us both right when we have presented our questions—the object of the equal access objective is to make sure that, when the administrations put forward their joint fisheries statement, they must do so on the basis that a British fishing boat can go anywhere in British fishing waters. That seems a desirable objective because otherwise we could well end up with not British fishing waters but entirely separate Scottish, Welsh or English fishing waters. I do not regard that as the objective we are seeking, so to that extent, I rather like keeping the equal access objective and I would not see it removed from the Bill.
The noble Lord, Lord Teverson, poses some serious challenges in his amendment. Indeed, quota allocation is already a highly complex and opaque feature in fishing. The tabling of Amendments 17 and 95 affords us a brief opportunity to probe the Government over how equal access will work in practice once the constituent parts of the UK have the freedom, at least theoretically, to determine their own quota allocations and wider regulatory frameworks.
In view of the earlier discussion today, I am sure the Minister will argue that these amendments are unwise as they undermine the work that the Government have already undertaken with the devolved Administrations in drafting the Bill. I also pre-empt his commitment that the various issues raised by the noble Lord, Lord Teverson, will come out in the mix once the Bill is in place and the various statements and management plans begin to appear. Be that as it may, I am sure that fishers in different parts of the UK will be interested to hear his comments on how all of this will work in practice.
For example, how will the Government and devolved Administrations work together to ensure that the regulations of each part of the UK are compatible, being both available and accessible to those who will have to rely on them? How will issues such as enforcement be managed to ensure that the devolution settlement is upheld, while also respecting the equal access objective, as it is currently drafted, when they could diverge over time? This topic arose during the Commons Committee stage on the previous Bill, so I hope that the reassurances offered tonight will meet all the Committee’s expectations. A significant amount of time has passed since those debates and we are only a short time away from potential problems ceasing to be purely hypothetical.
My Lords, I am most grateful to noble Lords for this short debate. As I understand it, the noble Lord, Lord Teverson, is concerned that our provisions relating to equal access could lead to unintended consequences, which could include a further concentration of the fishing industry, and incentivise the purchasing of additional quota from other fisheries authorities.
The UK Government believe that the equal access objective in the Fisheries Bill is vital as it sets out a joint commitment for all four fisheries administrations to work together to ensure that boats based all over the UK enjoy the same rights of access to fish in UK waters, no matter where their home port is. This is important, since many vessels fish in the waters of multiple fisheries authorities. As with all the objectives, this objective has been carefully developed and designed with close discussion with the devolved Administrations. This is one of the key points that I would like to make to the noble Lord: the objective is limited to access to waters only and does not grant any access to quota.
Amendment 95 relates to UK quota-setting and seeks to remove the restriction on setting different maxima by reference to a UK boat’s home port or other connection. I will provide some further detail on the provisions in Clause 23. Clause 23 relates to the determination of the pot of UK fishing opportunities. It does not relate to the subsequent allocation of those opportunities to the fisheries administrations, or to their subsequent distribution to the fishing industry. Total UK fishing opportunities are defined by the criteria set out in the clause: the description of sea fish, the area of the sea and the description of the fishing vessel.
The reason for the stipulation in Clause 23(4) that fishing opportunities cannot be set based on any reference to a boat’s home port or connection to a particular part of the UK is to ensure that this power can be used to set only the overall amount of UK-wide fishing opportunities. It cannot be used to determine how quota, once divided between the fisheries administrations, is allocated to each administration’s industry. This is clearly a devolved matter.
Amendment 95 would therefore give the Secretary of State the power to set quota within devolved competence—for example, setting quota for boats fishing out of Peterhead in Scotland. This is clearly not something that would be desired by the Committee; nor do I think it is the noble Lord’s intention. He may hope that the amendment addresses the need for local boats to have access to local quota. This is a matter for each administration, but Clause 17, which my noble friend Lord Lansley referred to, maintains the current approach on this: each administration will use transparent criteria, including environmental and socioeconomic criteria, when deciding how to allocate quota. The amendment therefore does not achieve the exact effect the noble Lord may have hoped for.
I also provide further reassurance that the methodology for allocating quota to industry within England is published in the publicly available English quota management rules, alongside the allocations themselves. Each administration also has its own quota management rules. The Government are committed to supporting fishers around the country and we are engaging with them to ensure that our coastal communities see the maximum benefit from the quota that we hold.
I will provide a further piece of information. The equal access objective in Clause 1 preserves the status quo. Currently all UK boats can fish in all UK waters. Clause 17 provides for each administration to license foreign boats in its waters, since licensing is a devolved matter. In practice, each administration will delegate its licensing functions to, or allow the administration of, a single UK licensing regime through the single licensing authority.
I am very happy to have a further discussion with the noble Lord if there are any residual matters of concern. I hope that I have got across that the equal access objective is precisely on the basis to ensure—particularly with many vessels fishing in the waters of multiple fisheries authorities—that this is equal access for all rather than the way in which the noble Lord describes it. Our intention is for the four constituent parts to have the ability to fish in UK waters.
I have not finished yet. So that is where the position lies. I will now take the noble Lord’s intervention.
I apologise to the Minister. It may be that he cannot answer this question but, when it comes to the future division, he said that the boats may have access to the waters but not necessarily to the quota, which explains many of the problems. Is the quota going to be divided into the areas that currently exist—7A, 7B, 7C, 7D and 6—or are we going to have completely new areas? How localised will these areas be? Will they be near to the Cornish ports that the noble Lord, Lord Teverson, is worried about? It may be that that has not been decided yet.
I will avail myself of receiving some information and let everyone in this debate know. Clearly, it is a devolved matter and therefore all three devolved Administrations and the UK Government will make those considerations. That is why I mentioned in particular the English quota management rules. These are matters of responsibility for the devolved Administrations and ourselves in terms of quota. On that basis, I hope the noble Lord will feel able to withdraw his amendment.
I thank the noble Lord, Lord Cameron, for his question because even if we use the traditional ICES areas, those do not reflect the boundaries between the devolved nations. It is an interesting question.
I thank the Minister for his explanation. I feel reassured by that. If it does not relate to quotas and refers only to vessels steaming around in circles doing nothing at all, who can complain? However, it does not seem to be much of an objective if that is the case. On that basis, I withdraw my amendment.
I must confess to feeling that perhaps I am not the best person to lead off this segment of the debate, because my amendment seeks to change subsection (8) of the clause but the group as a whole will take into account a wider range of issues relating to the definition of “national benefit”. I look forward to hearing the many views that will be expressed around the amendments in this group.
My amendment simply seeks to make the point—I fear this is a return to the discussion at the start of the debate—of what it is that we are doing in the handing out of a fishing quota, which is held in public trust, for private benefit. I therefore seek to amend the description of the national benefit objective as set out in the Bill from a fairly narrow definition that
“fishing activities of UK fishing boats bring social or economic benefits to the United Kingdom”,
and suggest that it should be reworded that the national benefit objective is that
“the public exploitation of the fishery for commercial, recreational and environmental purposes brings benefit to the United Kingdom”.
So the amendment seeks to make it clear in the Bill that it is more than simply the fishing activity for which we are granting quotas that constitutes a national benefit.
I know that noble Lords will speak to other amendments around the principle of the UK benefiting from the granting of quotas, but my amendment seeks to probe why it is that we are defining national benefits so narrowly and restricting it to fishing activities and fishing boats. The phrase seems a little odd, given that, as we have discussed, the founding principle of the Bill is that we have a national asset in our fishing resource that is held in trust for the public and granted out to fishing activity. I feel that the national benefit has been too narrowly drawn and too narrowly attached to fishing activities and fishing boats.
That is the purpose of the amendment. As I say, the rest of the amendments in the group seek to consider and assess different aspects of the national benefit—but I beg to move my amendment.
My Lords, my Amendment 19 is trying to deal with the same matter, but it attempts to use the activities of fishing fleets to bring
“social, economic and employment benefits to the United Kingdom or any part”.
In other words, it is intended that the activities of fishing boats should not merely benefit the fisheries, but also the rest of the United Kingdom, and in particular produce social, economic and employment benefits. One can see that this is a bit wider than the proposal of the noble Baroness, Lady Worthington, but it is just a question of what precisely this “national benefit objective” is aiming at.
I think it does not aim at benefiting the fishing industry itself, but at benefiting others through the activities of the fishing industry. Paragraph (b) of my proposed new subsection, which contains a reference to fish and aqua- culture activities, manages to achieve the same sort of thing. In other words, in both cases the activities of the boats and the management of the fleets are supposed to bring these general social, economic and employment benefits to the United Kingdom and parts of it.
The issues in this amendment were brought to my attention by the national authority, or corporation, of the fishing fleets of England, Wales and Northern Ireland. The Scottish people are somewhat separately represented, and it is not altogether surprising that their attitude is that the Bill is pretty good and perhaps the best thing to do is to leave it alone. It may be that they have ideas about the present situation, and the way in which the Bill is constructed is, from their point of view, very acceptable.
My Lords, I will speak to my Amendment 78, which is in a similar vein around national benefit. It is quite clear, certainly in the south-west, that if all the fishing vessels with British flags actually landed their catch—or a major proportion of it—in their home port, the number of landings in the UK and the viability of those ports would be hugely increased. Of course, we have here the issue of what used to be called “quota hoppers”, around which everything has gone staggeringly quiet during the Brexit negotiations and the formulation of the Bill.
As we know, a little under half of the English—not Scottish—quota is effectively owned by Dutch, Spanish or Icelandic interests. Grimsby, which I think used to be the world’s or Europe’s largest fishing port, now has a very important fish processing industry, but hardly any activity in terms of landings. Most of the quota there is effectively owned by Dutch vessels that land in Holland.
So, we have a question: how do we change that? The Bill does nothing to change this area. In a way, it suits the fishing industry establishment to keep things as they are, because those are the members. Whether vessels are English or foreign-owned, those are the members of the fishing organisations. That is why, in Amendment 78, I have used the scientifically calculated number of 75%, which came out at the end of my spreadsheet, to suggest what proportion of fish should be landed by English-flagged—or British-flagged, depending on how we want to define the devolution thing—vessels. It is a probing amendment, but only in the sense that something needs to be done in this area. Very few other EU member states have allowed the foreign ownership of quota in the way that we have. We decided to do that. We are where we are, but we need to make sure there is a national benefit; I assume that is why this objective is here.
My Lords, we have five amendments in this group: Amendments 20, 21, 77, 80 and 84. First, a number of noble Lords have sought to amend and clarify the definition of “national benefit” in different ways. The fact that different Peers have tried to do that shows that this is open to a huge range of interpretations. It is a rather vague, catch-all phrase so it is right that we should probe it; it needs further clarification. It is also important that we return to our earlier discussion. If the phrase is too vague, it could be used to override some of the other important objectives that could be subsumed under it. So it is important that we understand exactly what it means, and that it holds its place proportionately with all the other objectives; it is clearly better defined by that.
I think we are all still struggling with those objectives. We identified at the beginning of the debate that eight—or however many there are—is too many, and asked how we rank them and so on. The vaguer they are, the more difficult any of that ranking will be. The phrase “national benefit” is so vague; we need to do a bit more work on the phrase itself but also on how to interpret and define it. We need to bottom out that discussion; maybe the Minister can help us a bit more with that.
Our Amendment 20 has a simple intent: it seeks to ensure that foreign vessels fishing in our waters should have the same obligation to respect the national benefit—however we define it—as required of the UK fleet. This should be the basis on which licences are granted. We believe it is a straightforward and uncontroversial amendment; we hope that noble Lords will agree.
Amendments 21, 77, 80 and 84 raise a very different issue—some of these amendments have been grouped rather oddly, but I shall address them as they have been set out—which is the concept of a national landing obligation. We believe this is vital to ensuring the long-term health of our coastal fishing fleets and communities. This is spelled out in detail in Amendment 84, where we specify that all licensed boats should be subject to the national landing requirement to land a percentage of their boat’s catch at a port in the UK. Our proposal is that the percentage of the catch should be set at 70%, rather than the noble Lord’s 75%, unless the Secretary of State determines otherwise and sets out his reasons, but we could discuss trading that figure.
This is an important principle and we set out our argument for it at Second Reading: a requirement to land at UK ports could herald the renaissance of our coastal communities, which is long overdue. While the numbers vary according to the type of fisher, we know that for every job created at sea many more are created on land as a result of the need for landing, processing and onward transportation, for example. It is estimated that about 10 times as many jobs are created on land as at sea, and currently many of those jobs are going to other EU ports. Meanwhile coastal communities currently have higher rates of unemployment and lower wages. They have the additional challenges of a drain of young people, social isolation and poor health. A policy based on a national landing requirement would provide more local jobs for local people and would save fishers having to travel hundreds of miles in search of a fair price for their catch because then, we hope, the market would come to them rather than them having to chase the markets overseas.
If we were to introduce a minimum landing requirement for fish caught in our waters, that would provide a level of certainty for the sector that historically has been lacking. That in turn would, we hope, facilitate investment and innovation, which could help with other matters such as decarbonisation and, as I say, would bring local regeneration based on good environmental principles. I hope noble Lords will see the sense of this argument and support the amendments.
Amendment 78, tabled by the noble Lord, Lord Teverson, which he has just eloquently described, also deals with the requirement to land a proportion in UK ports. He has an exception for landing in distant-water fisheries, which I think we accept; you can take the principle that we are suggesting only so far, so there is merit in that. That is also an issue that we have covered in our Amendment 90. We need more clarification on it but I think we are all fishing in the same water around those principles.
We also welcome the tabling of Amendment 18 by the noble Baroness, Lady Worthington. It would bring other forms of fishing, such as recreational fishing, into the scope of the national benefit objective. Again, this underlines the fact that the phrase is very vague and therefore you could tack all sorts of things on to it. However, we support the principle. We have other amendments that spell out in more detail the importance of recreational fishing. Perhaps it could be better sited elsewhere but it is an important principle and we are happy to find the appropriate place to put that wording for the future. I look forward to the Minister’s response.
My Lords, if my noble friend will forgive me, I want to interject for a short moment, not about the definition of the national benefit objective but on the second part of this group of amendments, relating to a landing requirement. It struck me as a useful debate to have in Committee. For a start, it allows us to expose the question of whether Ministers want to be in the position to impose any kind of landing requirement under any circumstances.
Personally, I was pleased to hear the noble Lord, Lord Teverson, say that setting a landing requirement for foreign boats in UK waters would simply lead to the imposition of the same requirement on British boats in other waters, and I am not sure that is where we want to end up. I am glad that both speakers from Labour and the Liberal Democrats have endorsed the view that this should apply only to fishing in our exclusive economic zone; it would need not to apply, or to be able to be exempted, for distant-waters fishing. I hope noble Lords will forgive me for saying that to set 70% or 75% in primary legislation would make no sense whatever. Putting that to one side—and saying that therefore the amendments do not work—it raises a very interesting question: does the Bill, under any circumstances, allow fishing authorities in the United Kingdom to set any kind of landing requirement? I do not know the answer; I cannot find it anywhere. I wonder whether it is thought potentially never to be necessary under any circumstances. It seems to me that there is a potential mischief involved in the ownership and use of quota, which could be remedied either through the allocation of quotas or through a landing requirement. I am not sure that Ministers have told us whether under any circumstances they would use the former and never the latter. That is an interesting question.
My Lords, I will not detain the House for long. I am encouraged by this debate. Last year I sat on the committee on regenerating coastal and seaside towns. We looked in a lot of detail at what is happening to our seaside towns—at the poverty and great difficulty they are experiencing. I am certainly not an expert on what the quotas should or should not be, but this kind of discussion is a source of encouragement, and is putting its finger on the issues and on the opportunities that may come to these towns if we push these ideas. It feels as though there is movement on getting to grips with the positive opportunities that may now result from the time we are in. I thank the Committee for this helpful discussion.
My Lords, I wonder whether this question of landing obligations will need to be resolved in the fisheries negotiations during the coming “passage of arms” with the EU. I believe that there is a good deal of voluntary landing in our ports by foreign fishing vessels at the moment, and one of the reasons for that is the efficiency of the transfer from these ports to the European market. They are able to get their fish stocks to the European market from some ports very quickly—in a way that, if they had to take them back to Spain or southern France, would take much longer and probably be less efficiently organised. I do not know whether it needs compulsion, but compulsion would need to be authorised as part of the future negotiations.
Perhaps I may intervene on the noble and learned Lord. We should not forget that we are talking about British boats in British waters—it is not about foreign vessels. Sorry, I will sound like Michael Gove or the Prime Minister, but this has nothing to do with the European Union or the Commission: it is purely a British decision, apart from foreign vessels and where they have to land. That is why we have raised the issue.
I can see that, if it is restricted to British vessels, it is perfectly within the powers of this Parliament, but I am not at all clear that it would be right to impose that kind of obligation on British vessels without attempting to encourage foreign vessels to do the same. As I mentioned at Second Reading, something like this is already happening, and in pretty small ports—though they have a large amount of traffic, usually overnight, when refrigerated vehicles go straight to Europe and arrive quickly at their markets, which are pretty hungry for the result.
My Lords, this debate has turned into rather an intriguing one, with lots of contributions. I am grateful to noble Lords for these amendments, which all relate to a matter emphasised by the noble Lord, Lord Mawson; that is, ensuring that coastal communities which rely on fishing see a benefit from fish caught in UK waters. The UK Government agree that this is a matter of the upmost importance, but I suggest that other routes beyond this Bill should be used to secure this outcome as well.
Amendment 18 would include recreational and environmental use of fisheries in the national benefit objective. Amendment 19 seeks to ensure economic, social and employment benefits from fish and aquaculture activities. The objective as it stands in the Bill highlights that UK boats, including foreign-owned but UK-flagged boats, should provide economic, social and employment benefits to the UK when fishing against the UK’s fishing opportunities. This is currently achieved through a licence condition requiring all UK vessels to demonstrate an economic link to the UK. The Bill also extends the ability to prescribe an economic link in respect of foreign vessels licensed to fish in the UK through the foreign vessel licensing regime, if this is negotiated internationally.
Perhaps I might take a moment to set out what the economic link requirement currently stipulates of UK vessels. The requirement is delivered through the licensing regime and can be controlled and enforced by the fisheries authorities and the Marine Management Organisation. The economic link is a devolved matter, but currently this licence condition is UK-wide, as agreed in the 2012 fisheries concordat between the Administrations.
I say in reply to my noble friend Lord Lansley that we do not need legislation to amend or set an economic link; it is managed through licence conditions. The conditions of the economic link are that vessels must land at least 50% of their catch of quota species into UK ports; have at least 50% of their crew normally resident in the UK; spend at least 50% of operating expenditure in the UK; or demonstrate an economic link by other means. In practice, this last option usually involves the donation of quota to the under-10 metre quota pool.
In 2018, the majority of vessels met the economic link by landing at least 50% of their catch in UK ports. Twenty-seven vessels met the economic link through other economic link criteria. Of the 27, 22 complied by donating 714 tonnes of quota worth £2.5 million, and five employed a crew the majority of whom were resident in the UK. This quota was put into the under-10 metre pool, which is managed by the MMO, and vessel owners who have valid licences are entitled to fish for it.
Other parts of the Bill, in particular paragraph (a)(ii) of the sustainability objective in Clause 1, already state the UK Government’s aim of ensuring that fishing activities are managed so as to achieve economic, social and employment benefits, which I hope provides the reassurance that my noble and learned friend Lord Mackay seeks in his Amendment 19. This would include the management of recreational and environmental use of fisheries. As such, Amendment 18 does not need to be included because the Bill achieves the same effect as the noble Baroness, Lady Worthington, seeks. I am happy to have further conversations if that presents difficulties for her, but that is the position as I understand it.
There are some further, practical issues to consider in relation to these amendments. It is not clear what any national benefit requirement for the recreational sector could be or for those exploiting the resources for environmental reasons; nor would it be easy to consider how any wider national benefit requirement could be delivered.
The noble Baroness, Lady Jones, seeks through Amendment 20 to extend the scope of the objective that the fishing activities of UK fishing boats should benefit the UK to include the activity of foreign vessels and, through Amendment 21, to require that a majority of fish be landed by UK boats for processing at UK ports. I shall speak to these amendments in turn.
In the future, any access by non-UK vessels to fish in UK waters will be, as all noble Lords know, a matter for negotiation. Access will be on the UK’s terms and for the benefit of UK fishermen. Our access negotiations will always seek to bring environmental, economic and social benefits to the UK. Therefore, through our negotiations, benefits to the UK from any foreign vessels fishing in our waters would be sought and secured, without such an amendment to the Bill.
There would be a number of practical challenges to delivering the change that Amendment 21 seeks to impose. The noble Lord, Lord Teverson, and my noble friend Lord Lansley referred to this. The imposition of this requirement on UK vessels would make many vessels’ existing business models inoperable, as they rely on non-UK markets for the sale of their catch. This is often the case where prices are higher or, in some instances, where appropriate port facilities in the UK are not available. There could be implications for safety if vessels are not able to access suitable ports at the appropriate time. Further, enforcing increased landings into the UK could result in lower prices for the catching sector.
The amendment refers specifically to fish for “processing in UK ports”. While we want to encourage greater processing in the UK, as it creates value and brings employment, there are challenges in practice. We have some world-class processing plants in the UK, but they are not necessarily found in ports. It will also take time and money to invest and build processing capacity. We must also recognise that markets for processed fish need to be developed and there can be good value to be gained from the sale of, for example, unprocessed fish or live shellfish.
Landing requirements currently exist as part of the economic link condition attached to all UK vessel licences, as I have already detailed. This proposed amendment would make it more difficult for other mechanisms which benefit UK coastal communities to operate, including quota donations made under the economic link condition, resulting in a fall in fishing opportunities for the inshore fleet. Schedule 3 to the Bill sets out vessel licensing powers, which we will continue to use to impose economic link conditions on UK registered boats. The economic link policy is being reviewed, to ensure that it remains as effective as possible as we leave the CFP. However, I believe that a licence condition remains the most flexible and effective way of achieving this objective.
Amendments 77, 78, 80, and 84 seek to introduce a new national landing requirement and apply it to vessels licensed using powers in the Bill. While the Government support the intent of these amendments, which is to ensure that the UK benefits from its valuable natural resources, we believe that their aims are addressed both in the Bill through the national benefit objective, as I have previously highlighted, and the provisions to license foreign vessels for the first time, which would allow us to impose on them requirements which are equitable with our licensing regime for UK boats.
There is already work being undertaken on this topic by the Government and by the devolved Administrations. The amendments as drafted would not be appropriate to include in the Bill as they do not respect the devolution settlements—the economic link being a devolved matter, as I have set out. As made clear in the UK Government’s fisheries White Paper, the economic link conditions will be reviewed with a view to strengthening them. The Scottish Government consulted on this issue three years ago. We wish to work with the devolved Administrations to consider whether having the same economic link conditions across the UK would simplify matters for industry.
I am sure noble Lords will agree that, in developing options for reform, we must consider the best interests of the whole fleet, including those British vessels that land abroad when it is most profitable, and ensure that vessels can continue to operate as successful businesses. As we review the economic link, we will carefully consider the impact of changing the required share of landings into UK ports. Setting a fixed percentage for required landings into UK ports by all vessels could present practical difficulties, as the infrastructure for handling large increases in landings may not be in place, and it could disrupt existing supply chains. Furthermore, it would not necessarily benefit the inshore fleet, as quota that has been donated to the under-10 metre pool in the past would, instead, be required to be landed into UK ports by foreign owned vessels. The current drafting of the Bill respects and reflects the devolution settlements, where each Administration is responsible for setting licence conditions, including the economic link. It would therefore not be appropriate for the Secretary of State to be legislating for the whole UK, as proposed.
I realise that this has been a fairly lengthy explanation, but I hope that it has been helpful in demonstrating the UK Government’s commitment to, first, seeing a real benefit from fishing for our coastal communities, and secondly, ensuring that our fishing industry is given enough flexibility to flourish. I understand the rationale behind all the amendments, but I have sought to outline some of the practical intricacies of the fishing industry.
One of the generous remarks by the noble Lord, Lord Teverson, repeated today, is that the more you learn about the fishing industry, the more you realise how little you really know, because of its intricacy and complexity. I have tried to outline some of the points of difficulty that the amendment presents, although I absolutely respect the importance of supporting our coastal communities. With all that in mind, I ask the noble Baroness at this stage to withdraw her amendment.
I shall read what the Minister said in detail in Hansard. He said that this is riddled with complexity, and I am sure that that is true, but did I understand him to say that there is a working party already working on issues around the national landing requirement? Is it that he thinks this is a good idea but, as we were discussing earlier, everything has to be agreed with the devolved nations and therefore we cannot agree anything in the Bill? Is this something that is already in train but has not yet been signed off? Is that really what he is saying? I understand that there may be details underneath it.
I repeat what I said: work is already being undertaken on this by the Government and the devolved Administrations. It is work in progress, but that is the right route, particularly as these are devolved matters and that is important. The Government want to find ways: although we must and do respect the devolution settlement, there are many respects where we have been seeking to work together and why we are legislating on behalf of all four parts of the United Kingdom on this matter. It is the case that we are acting in concert with the devolved Administrations. We are very mindful that many of these areas are devolved, but we think that in the interests of simplicity and straightforwardness there are many areas where we would like to have a single focus, as it were.
Perhaps I can be helpful to the Minister, in that the whole area of foreign ownership of British-flagged vessels is an English issue, and I am sure that we can solve it in that way and help the Minister get this into the Bill. It is an English, not a Scottish, problem. That is one thing we can do. The other thing is that, on the under-10 fleet redistribution of quota, of course the big promise of the Government is that the pie is going to increase anyway, so there will be plenty for the under-10 fleet. If the Government’s promises, in terms of taking back control and getting rid of relative stability, is what we manage to achieve, then that should not be a problem.
What I particularly want to do at this stage is to go through a thought experiment with the Minister. Taking the point that it is the Government’s objective, quite rightly, post Brexit to have a much larger pie—because the fish stocks are within our EEZ and we will have this whole idea of zonal attachment—we will have much larger fishing opportunities for the fleet as a whole. So, with that bigger pie, are we going to allow the foreign-owned British companies with British-flagged vessels to take even more quota than they have now, or have the Government got a cunning plan to make sure that this expanded quota stays and resides more with real British fishing fleets? I would be very interested to hear the Government’s answer.
For tonight, I will say that these are matters under active consideration. We take the point that there is scope for additional quota to benefit coastal communities. I am not in a position to give precise details because this is under active consideration, but the noble Lord has absolutely hit on the point that this is about additional opportunities. The Government are working on and considering how best we fulfil that in a way which benefits coastal communities. That, as with a number of other aspects, is work in hand.
My Lords, I am grateful for the Minister’s response to this group of amendments. I will read Hansard in detail. Touching on the point of the noble Lord, Lord Teverson, it struck me as odd that we still seem to be referring to the current system under the CFP as some sort of gold standard we should seek to continue. I think most people would agree it is the exact opposite of what we are trying to achieve.
This concept of an economic link being proofed by the charitable donation of quota back to a deserving cause seems out of kilter with what we are trying to achieve. We should not give the vast majority of quota to a small number of players and then rely on their beneficence to give it back to those located in coastal communities who are actually fishing in our waters, employing people, feeding local markets and producing sustainable food. Something is a bit awry in the way that this opportunity is being interpreted by our Government. We will probably come back to probe this further as we go through the Bill, particularly on the quota allocation clauses, but I am grateful for the response—it will tee up an interesting debate later.
On whether recreational fishing could in any way contribute to the national benefit, it is a bit dismissive to state that only commercial fishing and fish stocks have any contribution to make to the benefit of the nation. It is clear that, if we are a destination for a large number of recreational fishers, that will be of national benefit. If we can sustain a really rich and biodiverse marine environment, that will enable us to encourage any manner of recreational activities—not just fishing but whale watching, porpoise watching and birdwatching are inherently linked to the sustainability of our fish stocks. Without fish in the seas, we do not have birds.
There are lots of reasons why good management of our marine environment produces a national benefit, so I agree with the noble Baroness, Lady Jones, that this is a really odd phrase and that the narrow definition of “national benefit” needs revisiting as we go through the Bill. However, at this stage I am happy to withdraw this amendment.
My Lords, in moving Amendment 22, I will speak also to Amendment 23. These amendments are tabled with slightly different intentions in mind, so while they may be grouped together, they address slightly different aspects of climate change. The addition of the climate change objective is very much to be welcomed, and must be fundamental to all policy developments, perhaps second only to the sustainability objective, as debated earlier tonight.
Amendment 22 would strengthen the climate change objective by requiring two sets of actions: one on land to improve the green credentials of ports and the other at sea to help the fisheries fleet decarbonise. Both are important and must reflect together the environmental sustainability practices on landed catches while making the industry undertake precise measures on decarbonisation. Either step or both would have a positive impact on the country’s net zero aspirations. The amendment was tabled to probe how action the Government propose to take will be specified and measured, including what support they will provide in the future to allow the industry to improve its environmental footprint. The Bill allows financial assistance to be provided for a variety of purposes, including many linked with the overarching fisheries objectives. Can it, therefore, be safely assumed that such support would be made available to fishers who wish to fit cleaner engines, and perhaps to ports and processing plants that want to upgrade equipment to run on low-carbon technologies?
Amendment 23 deals directly with achieving net zero in the industry. I was disappointed to see no link between this framework legislation and the legally binding targets for the UK to achieve net zero by 2050. Amendment 25, in the name of the noble Baroness, Lady Worthington, seeks to achieve a link and we support such a consultation. However, we propose that the Government are not taking action quite as seriously as we would like and need to proceed faster, with more urgency.
We have been told time and again, and will no doubt be reminded in the Minister’s response, that the UK is a world leader in the race to decarbonise, with this Government being the first to adopt a binding target to achieve net zero by 2050. However, I hope the Minister accepts and can forgive that, across your Lordships’ House, many are sceptical of the Government’s claims. Reference need be made to the court’s ruling only last week on Heathrow expansion to see that, just because an environmental target has been adopted, it does not necessarily filter through to everyday decision-making in Whitehall. There remains a gulf between stated ambition and reality. The UK, working alongside others, needs to do more to tackle the climate crisis before it is too late.
As part of that, industries such as fisheries should be encouraged to be ambitious by working to an accelerated timescale. Although it would require significant effort, we believe this could be achieved. If the Minister rejects the premise of achieving net zero in fisheries by 2030, or if he believes that decarbonisation is better dealt with in the upcoming Environment Bill, he at least needs to indicate what progress he would like to see made in the next decade.
With this in mind, what will our fishing fleet look like after nearly 10 years of the UK operating outside the CFP? What is the size of the Government’s ambitions? What gear will our fishers be using? How will the way that their catch is processed and transported be different from today? When will emissions targets be made binding on international shipping? These are but a few of the questions to which we need answers, and we ideally need them before either this or the Environment Bill reach the statute book. To include ambition in the Bill, the House must be assured that it will be key feature in the drawing up of fisheries statements and management policies. There is a climate emergency now and every sector should play its part in addressing it. I beg to move.
My Lords, I shall speak to Amendment 125 in my name, also in this group. I also lend my support to the two amendments spoken to by the noble Lord, Lord Grantchester. This is very welcome. I start by being positive about the climate change objective being added to the list of 12—or however many we have now. It is good to see it there. As I stated earlier, there really is no business as usual anymore. Climate change impacts are upon us and we are living through an age of consequences. This will permeate all the discussions around fishing policy that we bring on the back of the Bill. Fishing quotas will change, the availability of fish stocks will change and the resilience of the natural environment will be increasingly affected and diminished, so it is incredibly important that we take this seriously.
The amendment moved by the noble Lord, Lord Grantchester, rightly goes to the heart of the definition here. It seems a little lacking in ambition and specificity, as stated in the Bill, which refers to
“the adverse effects of fishing and aquaculture minimised”.
What does “minimised” mean when, really, they should be eliminated? In fact, any economic activity now taking place specifically within the natural environment should not just seek to have zero emissions, it should be seeking to be a positive sink. We will have to use policies and the framework for managing the natural world to ensure that we are not just reducing our outputs, but seeking to enhance the ability of the natural world to absorb carbon dioxide.
That has to be an aim because we have left it so late. We are about 20 years behind where we should be in reducing emissions on a global level, so the challenge now will be that of eliminating emissions in a decade. Thereafter it will be about soaking out the greenhouse gases that have been emitted. The oceans and the marine environment are a huge component of that, so we should be ambitious. I think that the bare minimum should be to achieve net zero, not simply minimising adverse effects and adapting to climate change.
My third point is about accepting that we may have to implement the precautionary principle, which states that for the period we are in, where there is so much uncertainty, we will be allocating below scientifically determined maximum sustainable yields because of the risk of climate change that overlays everything. We might have to get used to allocating quota on a very precautionary basis because we are entering uncharted waters, if I may be excused the pun.
I turn to my Amendment 125. Amendments that seek consultation always feel a bit redundant in primary legislation, but my point is that, under the powers granted under the Climate Change Act 2008, we have the ability to introduce a policy. Before any activity that causes a net contribution to greenhouse gases, we can simply consult and then use secondary legislation to introduce that policy. If the Government were minded to get going on achieving the net zero target, simply asking for public consultation would be the trigger to introducing secondary legislation to bring in very targeted, market-based policies to encourage investment in low-carbon activities. The Government now have the opportunity to consult on how we can best make this sector carbon neutral and use the powers that already exist to bring in those policies; hence the quest for a public consultation.
It is worth stating that, at the moment, the fishing industry has an effect on climate change in a number of ways. It is not just about how vessels are propelled or the energy choices made by processing plants, it is also about how the degradation of the natural environment can release greenhouse gases. Trawling activities, for example, can disturb the sediment at the bottom of the ocean, which releases otherwise stored carbon. There are plenty of examples and reasons why one would want the sector to take this issue seriously.
This is an opportunity to do something really positive. We must think about the provision of licences to cover the activities that take place in this environment with a positive vision that will create jobs and allow activities to be carried out in the natural world that will help us as we seek to combat climate change. There is no reason why fisheries cannot be part of that process. There are particular types of fish stocks and particular ways of fishing that can lock carbon up while low-impact aquaculture can make a net-positive contribution to our carbon budgets. I hope this is not seen as an imposition; rather, it should be seen as an opportunity.
Again, to finish on a positive note, seeing this objective included is very welcome. I happen to be in the camp of thinking that sustainability is the primary objective, so this climate objective is integral to that. However, we need to see a little more action and commitment to some of the specifics of what making this a primary objective would really mean for how we manage our fisheries. I am glad to have had the opportunity to discuss these amendments.
I put my name on the amendment and am pleased to welcome it. One message from the climate change committee was that we cannot do decarbonisation and net zero sequentially; we have to do it all at the one time. That must include this industry.
My only word of caution is that fish oil is used as an energy source on some occasions, and could be described as renewable. It is used as biodiesel, like fishmeal. That should be excluded completely. We do not do that in this country, but I have a feeling the Danes have occasionally done it before.
My Lords, this Government have committed to ambitious action to tackle climate change, including reaching net zero by 2050. To support this objective, it is right that we have included a climate change objective in the Bill.
The Government share the ambition of Amendment 22, which is to make sure that we take meaningful action to decarbonise fishing and aquaculture activities and the infrastructure that supports them, as we must do across our economy. Indeed, I believe we are the first major economy to include an objective of this kind in legislation in relation to fisheries.
Evidence of the links between fishing and climate change continues to grow, and our approach must adapt to follow new evidence over successive iterations of the joint fisheries statement. Therefore, while I agree that action to support decarbonisation of ports and fishing activities must form part of our policies, I am reluctant to prioritise these in primary legislation ahead of the full development of, consultation on and scrutiny of the joint fisheries statement. This is also an issue for other departments, and we will work together to ensure that our functions under this legislation and other specific climate change and environmental legislation are carried out effectively.
The amendment would also have broader unintended consequences. For example, it could lead to future fisheries funding having to prioritise subsidies for fishing port energy efficiency measures that may better be delivered through measures other than fishing policy, such as planning and energy efficiency regulation, over measures to support directly the industry-focused infrastructure such as auction halls and landing sites. It could also lead to future fisheries funding having to priorities support for energy-efficient engines over more targeted fishing gear. The Government should be able to change their priorities for a future funding scheme in consultation with stakeholders so that it best delivers the government policies needed in response to the conditions at the time. We should always take an evidence-based approach to deciding which areas to prioritise in achieving this objective. We believe that the best way to do this is through the joint fisheries statement, rather than in the Bill.
Amendment 23 enables me to highlight that the UK—as the noble Lord, Lord Grantchester, said—is at the vanguard of global ambition to reduce greenhouse gas emissions, having last year committed to achieving economy-wide net-zero emissions by 2050 through the Climate Change Act 2008 (2050 Target Amendment) Order 2019. While I fully support the noble Lord’s ambition to transition to net-zero emissions in the fisheries and aquaculture sector, we have a clear target already enshrined in primary legislation. To introduce a further acceleration of that target in the Bill would create a sectoral disparity that could unfairly disadvantage an industry already facing challenges to adapt to the impacts of climate change. This is not to say that we should not seek to be ambitious as we work towards decarbonising our fisheries and aquaculture operations, but rather that we take a measured approach that supports the sector through the transition on a timescale achievable for all—from small, single-vessel operators to large processing operations. Legally binding policies will be contained in the joint fisheries statement, which will set out in more detail the steps we will take to deliver against the objectives in the Bill.
Turning to Amendment 125, I take the opportunity to set out some of the work already going on across the UK to support the fishing industry’s progress, along with the rest of the country, towards achieving economy-wide net-zero emissions by 2050. I apologise to noble Lords who were aware of this, but I shall put this on the record.
The national adaptation programme—NAP—sets the actions that Government and others will take to adapt to the challenges of climate change in the UK. Published in 2018, it sets out key actions for the following five years across a wide range of sectors, including fisheries and aquaculture.
The UK Clean Maritime Plan, published by the Department for Transport, sets out a national action plan for the whole of the UK maritime sector. The plan includes commitments to support maritime innovation, establish a maritime emissions regulation advisory service and consult on how the renewable transport fuel obligation can be used to encourage the uptake of low-carbon fuels in maritime sectors. The aim of the plan is to achieve zero-emission shipping by 2050, as set out in the Government’s Maritime 2050 strategy. This recognises the need to take action to tackle greenhouse gas emissions in line with the Paris agreement and the UK’s 2050 net zero ambition. Together, both plans ensure the fishing industry will effectively contribute to the target for zero net emissions of carbon dioxide and other greenhouse gases by 2050.
The climate change objective in Clause 1 will support this ambition by requiring the fisheries administrations to consider these matters in consultation with industry and interested parties, as they develop the policies that will sit in the joint fisheries statement. I recognise, and I am pleased, that a number of noble Lords have recognised, in the hurly-burly of the exchanges, that we did insert this new climate change objective. It is absolutely right we did so, because it is at the very heart of what we have to do. For the sake of tonight, I hope the noble Lord will feel able to withdraw the amendment.
My Lords, I am grateful to the Minister for that reply, and I take it entirely in the spirit in which he makes it. We are all committed to this objective, and we all work as fast as we may. We will study the Bill’s words very carefully, to look at where it is appropriate to put in a little more ambition, and whether it is right to leave it to the fisheries statement or whether we could devise some plan to escalate it up to being a stronger commitment. But at this stage—
Before the noble Lord withdraws his amendment, I want to comment on the Minister’s list of activities that relate to this. It is welcome to hear about the marine plans and the alternative fuels. We also need to integrate into this that the Government are pursuing nature-based solutions and carbon stored in the natural environment. We are doing that in the Agriculture Bill, and will be talking about it a lot as we go into the Glasgow talks, but the definitions the department is thinking about in the fishing sector are quite limited; for example, just the propulsion of the vessels. We are not thinking holistically about nature-based solutions, which are very important. When we have discussions following on from today’s debate, I encourage us to think about this holistically to make this a positive thing the maritime sector can help deliver, as we think about the net zero question.
I thank the noble Baroness, Lady Worthington, for reminding me of the important issue of nature’s ability to store carbon at sea. This is part of the wider implications of what we are seeking to achieve through amendments to the Bill’s climate change provisions. I beg leave to withdraw the amendment.