Employment Rights Bill

(Limited Text - Ministerial Extracts only)

Committee stage
Tuesday 3rd June 2025 Lords Chamber

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I thank the noble Lord, Lord Hendy, for tabling Amendment 143.

The Government agree that employers should not be able to deliberately ignore their obligations, and it should never be financially beneficial to do so. However, this amendment would offer a disproportionate response to address the issue. First, employment tribunals have jurisdiction over the majority of employment matters, including the enforcement of protective awards in cases of collective redundancy. It would not be appropriate to amend this jurisdiction solely for collective redundancy cases and it would lead to a disparity within the legal structure governing employment rights and their enforcement.

Furthermore, Section 15 of the Employment Tribunals Act 1996 already offers routes for affected individuals to pursue unpaid employment tribunal awards via the county courts, for England and Wales, and the sheriff courts, for Scotland. Finally, the amendment may have the unintended consequence of an increase in scenarios where employers are forced to become insolvent in response to both paying a protective award and requiring the reinstatement of affected employees.

Responsible employers across the country already go further than the current obligations to consult collectively. They agree with the Government that collective consultation with their workforce is a valuable tool in finding solutions to some of the challenging situations that employers find themselves in. Clause 29 closes a loophole in our collective redundancy legislation which meant that P&O Ferries could not be prosecuted when it dismissed people without warning, including because they worked abroad on foreign-registered ships. This goes some way to addressing the ILO’s concerns about the lack of an effective remedy. Our measure to confer powers on Ministers to create a mandatory seafarers’ charter will also help to create a level playing field in the sector and prevent such events happening again. A couple of amendments in subsequent groups will address that issue.

Doubling the protected period means that employees who were not afforded any consultation when being made redundant will now be awarded up to 180 days’ pay. Employment tribunals can award a further uplift of up to 25% where an employer unreasonably fails to comply with the code of practice on dismissal and re-engagement. Taken together, these measures increase the potential statutory payout per person far beyond that which P&O Ferries offered to dismissed employees. This clause will provide a balanced approach that gives certainty to employers, employees and tribunals, and will provide an increased deterrence against deliberate breaches of the collective redundancy requirements, without disproportionately penalising employers which attempt to comply with their obligations.

I hope that this provides some assurance to my noble friend, and I therefore ask that his amendment be withdrawn.

[Lord Hendy (Lab)]

My Lords, I am grateful to my noble friend Lord Davies for his support. I am also grateful to the noble Lord, Lord Sharpe, for his contribution. In response to him, I note that the proposal is not that employment tribunals should make a declaration that a dismissal was void and of no effect. Instead, the idea is that the High Court will make a declaration based on another declaration already made by the employment tribunal that the employer has breached the law by failing to consult—or by failing to consult properly.

The remedy I am proposing, since it is going to be in the hands of a High Court judge, will not be granted for technical or administrative errors; it will be for only the most egregious breaches.

On the point that an injunction might be granted months later, that cannot be so because delay will always defeat an injunction. Injunctions are only ever granted if the application is brought in a timely fashion, and whatever the court orders can be fulfilled.

I am grateful for the Minister’s very full response. I am not sure that the measure I propose is disproportionate —it is intended only for the most egregious breaches of the duty to consult—or that it distorts the remedies available for employment matters. As my noble friend pointed out, employment tribunal awards already have to be enforced in the civil courts and not by tribunals themselves. I am not sure about the unintended consequences. I know everything he says about The Seafarers’ Charter; my concern is with those on land. I have heard everything he says with sympathy, and on that basis, I beg leave to withdraw my amendment.

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[Lord Hunt of Wirral (Con)]

My Lords, I am very grateful to the noble Lord, Lord Davies of Brixton, for so clearly setting out the case for a range of amendments. As he made clear, the matters under discussion go to the heart of how we uphold standards for those who work at sea, an essential part of our economy and infrastructure. Of course, we are all well aware of the extent to which the events surrounding P&O Ferries in 2022 were a stark reminder of the vulnerabilities that are faced by seafarers operating in and around UK waters. I am very grateful to the noble Baroness, Lady Whitaker, for reminding us of some pretty stark situations that are faced by people who work in this environment.

I was very pleased and proud when the Conservative Government took clear and concrete steps to improve protections, most notably through the Seafarers Wages Act 2023, the introduction of the voluntary seafarers’ charter and a broader nine-point plan aimed at promoting fairer treatment and higher standards across the sector. These reforms represent a record of action that reflects the seriousness with which we take the obligations owed to maritime workers and our determination that what happened—that unacceptable practice that we all saw and were so concerned about—must never happen again.

Today’s amendments reflect continued concern for the welfare and rights of seafarers. They raise, though, a number of detailed questions about scope, enforcement and the role of harbour authorities. I am pleased to see the noble Lord, Lord Hendy of Richmond Hill, here to reply to this debate, because we want to hear from him how the Government see these provisions fitting alongside the reforms already undertaken. We await with bated breath his reply to this important debate.

[The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)]

My Lords, I will first speak to government Amendments 200B and 200C. These amendments relate to Clause 54, which amends the Merchant Shipping Act 1995 to provide powers to make regulations giving effect to international agreements relating to maritime employment. Amendment 200B provides that such regulations cannot be used to bring into force an international agreement, or an amendment to an international agreement which requires ratification, before the UK has ratified it. By implication, the effect of this amendment is that such regulations can be made ahead of ratification of the agreement or amendment. For the UK to ratify an international agreement, it is usual for any necessary implementing legislation to be passed or made in advance of ratification, so the amendment helps ensure that the UK can fulfil its international obligations. Amendment 200C is simply a consequential drafting amendment.

Amendments 143A and 143AA, tabled by my noble friend Lord Davies of Brixton, seek to amend the requirements of the collective redundancy notification provisions to apply to services calling at a port in Great Britain at least 52 times a year, rather than 120 times a year. We are, as my noble friend and the noble Lord, Lord Hunt of Wirral, related, yet again dealing with the appalling events surrounding the P&O dispute in March 2022. As with the Seafarers’ Wages Act, the frequency requirement of this measure was designed to ensure that it applied to those services with a close enough connection to the United Kingdom to justify it. Any broadening of the scope would require further consideration of the impact of bringing further vessels into it. I will come on to the proposed amendments to the scope of the Seafarers’ Wages Act, but we do not accept the proposal to amend the scope of those measures. We will apply a consistent approach to the proposed changes to the scope of the collective redundancy requirements, which has the same frequency requirement. Any change would require stakeholder engagement and full consideration of the impacts on industry. However, having listened carefully to my noble friend Lord Davies of Brixton, we will agree to meet the trade unions, as he suggests, where a number of the issues that he has raised tonight can be further discussed, including the requirement for a summary of the Government’s position before Report.

Amendments 200AA, 200AB and 200AC, also tabled by my noble friend Lord Davies of Brixton, seek to apply the measures under the Seafarers’ Wages Act 2023 as amended by this Bill to weekly services rather than those calling 120 times a year as drafted. The existing minimum frequency requirement for the new remuneration and safe working declarations is consistent with the requirements under the existing Seafarers’ Wages Act 2023, which was brought into force on 1 December 2024. It is important that this measure be limited to services with a close enough connection to the UK to justify intervention in their working practices; the current requirements in the Seafarers’ Wages Act and in the Act as amended in this Bill have been designed with this in mind. Extending the scope of this measure would require careful consideration of the international law implications of bringing into scope less frequent services to the UK, as well as the impacts on the market. With these considerations in mind, we think that the existing scope strikes the correct balance. It would also not be right to accept this amendment without undertaking a full public consultation, which cannot be done in the timescales required to make this change as part of the Bill.

Amendment 200AD and the consequential Amendments 200AE to 200AK would go beyond the existing powers in the Bill to make safe working and remuneration regulations. It would provide further powers to specify conditions relating to sick pay, holiday pay, pensions and other training, and to require harbour authorities to request the associated declarations from operators, following the approach taken by the Government in relation to the remuneration and safe working regulations.

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[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, I thank my noble friend Lady Warwick for her thoughtful contribution to this debate on Amendment 143B. We fully recognise the need not to impose disproportionate burdens on smaller procuring organisations such as universities. However, it is important that we consider fairness and equality of treatment for all workers providing key outsourced services to higher education providers—for example, cleaning and catering services—so that they receive fair and equitable employment conditions comparable to both those transferred from the public sector and those working for local authorities or departments that provide the same services. As a result, there would need to be compelling arguments to exempt higher education providers.

Secondly, it is essential that we first consult with key stakeholders and seek their views before deciding on the ultimate content of the reinstated code and the extent to which certain public authorities, including higher education providers, are required to follow its provisions. I can assure my noble friend Lady Warwick that we will carefully consider the particular issues relating to higher education providers and the difficulties they might experience during this process. However, our view is that to carve out higher education providers completely on the face of this Bill at this stage would not be right.

My noble friend highlighted the particular financial challenges currently being experienced by universities. We are committed to creating a secure future for our world-leading universities so that they can deliver for students, taxpayers, workers and the economy. The Office for Students will continue dedicating significant resources to ensuring the sector’s financial sustainability. The DfE has appointed Professor Edward Peck as the substantive chair of the OfS, where he will play a key role in strengthening this commitment while also expanding opportunities in higher education. We have also made the tough decision to increase tuition fee limits in line with inflation. As a result, the maximum fee for a standard full-time undergraduate course in the 2025-26 academic year will increase by 3.1% from £9,250 to £9,535.

Finally, I stress that the code is being designed to be flexible so that it does not impose undue burdens. There are a range of options available here that could be pursued, for example by specifying to which bodies the code should apply or applying the code only to higher-value contracts, which could exempt low-value procurement activities such as those often carried out by educational establishments that may have fewer procurement resources. These are the sorts of issues that the consultation will examine in detail.

I am very conscious that my noble friends Lady Warwick and Lord Watson asked very specific questions. Given the lateness of the hour and the very specific nature of them, I think it would be helpful if we could write and put that on the record to provide, I hope, the reassurance that the higher education sector seeks. It is for that reason that I ask my noble friend to withdraw her amendment.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I thank my noble friend for her reply and her attempt to reassure me and other Members of the Committee. I am grateful to my noble friend Lord Watson of Invergowrie for his staunch support for what I am trying to do here. I also thank the noble Lord, Lord Sharpe of Epsom, for his support; it was thoughtfully put, and I appreciate it.

I understand that the Minister is seeking to reassure me that she is very aware of the need to support the future of our universities. I do not think she really addressed, though, the issues around the impact on the different nations and the way in which that could affect the competitive advantage of the universities and the way in which they are seeking to increase efficiencies. I hope that, in writing to me, she will also undertake to meet the higher education sector once it has digested the detail of her response—I appreciate that my questions are technical. I hope she will undertake to do that because I think that would be enormously helpful and the most reassuring thing that she could do. Having said that, I beg leave to withdraw my amendment.

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[Lord Hunt of Wirral (Con)]

My Lords, I thank the noble Baroness, Lady Fox of Buckley, and my noble friends Lady Lawlor and Lord Jackson of Peterborough because they rightly question whether this clause is necessary to establish what we all agree should be the vital place for equality of opportunity.

It is vital in the workplace that merit should win the day, but there should also be equality of opportunity. Women and men should have equal opportunities, fair treatment and the freedom to thrive regardless of their background. So I hope all those who have spoken, including the noble Lords, Lord Watson of Invergowrie and Lord Palmer of Childs Hill, would agree that we all support equality of opportunity, not just in principle but in practice.

Therefore, it is right that every time there is another step, particularly when it creates more paperwork and more bureaucracy—as the noble Baroness, Lady Fox of Buckley, put it—it is important that we just question whether this is the right way to proceed, particularly, as my noble friend Lord Jackson of Peterborough pointed out, because this is really giving the Government power to do whatever they want to do whenever they wish to do it, by regulation. We do not know what the Government will do because they have not yet consulted on the power that we are about to give them. It is exactly what this House has always preached long and hard against. We should not give Henry VIII powers to the Government to do whatever they would like to do by statutory instrument.

I would have thought that my successor as chair of the Secondary Legislation Scrutiny Committee—the noble Lord, Lord Watson of Invergowrie—would know that more than anyone else. Giving the Government this power has to be justified. My noble friend Lady Fox of Buckley does not need me to defend her against the noble Lord, Lord Watson of Invergowrie, as he saw her move across the political spectrum, but she is right to question this in the way she did. As my noble friend Lady Lawlor put it, we are, in a way, promoting positive discrimination, which undermines achievement on merit.

I hope that the Minister will give very serious thought to explaining exactly what is proposed, rather than wait for the secondary legislation. Let us know, straightaway and in detail, what additional equality action plans are being proposed. We have to pause for a moment to worry about the serious and often unintended consequences that policies such as these can have, particularly for women on the margins of the labour market. The principle behind the measure is commendable —to close the gender gaps, to support women through challenges such as the menopause, and to shine a light on structural inequalities—but, in practice, these kinds of top-down mandates too often result in box-ticking compliance, statistical quotas and public relations targets, and never in real progress.

What gets measured drives what gets managed. When employers are judged by headline figures—gender pay gaps, representation in senior roles—there is an inevitable temptation for them to focus their efforts where the optics are best improved, on high-status, high-visibility roles. As a result, employers might feel pressured to hire or promote individuals with certain characteristics into elite positions just to improve those diversity statistics, rather than genuinely supporting a larger number of people, who are often the minority, who hold lower-paid, insecure or part-time roles and who would benefit most from meaningful reform.

Regardless of sex, ethnicity or sexual orientation, merit should always be the basis for the advancement of an individual. I worry that we risk a situation where the beneficiaries of an equality policy are disproportionately those who are already relatively privileged, while those in cleaning jobs, care work, warehouses, and food processing and service are pushed further to the margins. Even worse, if statistical appearances become the basis of legal or reputational risk, employers may become reluctant to hire minority women at all into lower-paying roles for fear of what the data might suggest. That is not progress; it is perverse.

I warmly applaud the fact that this debate is taking place. Equality is not achieved by engineering the statistics; it is achieved when every person, regardless of sex, class, race or role, has access to fair work, safe conditions, proper pay and genuine opportunity to get on in life. I ask colleagues to consider: will these equality action plans bring meaningful change for working-class young men, people from ethnic minorities and women on zero-hours contracts, or will they largely serve the HR departments of large organisations by helping to polish their diversity reports while little changes on the ground? We cannot effect equality by appearance; we must demand equality by substance.

[Lord in Waiting/Government Whip (Lord Collins of Highbury) (Lab)]

My Lords, I am grateful to the noble Baroness, Lady Fox, for initiating this probing debate on Clause 31. As the noble Lord, Lord Hunt, highlighted—I like to call him my noble brother after all these years of working together—it enables us to put forward a very strong case. One can always be concerned about Henry VIII powers and secondary legislation, especially when employers are not consulted and the objective is to undermine good industrial relations. I remind my noble brother about the debates we had on the strikes Bill, which was precisely about those issues of unintended consequences.

Ensuring that women can remain in and progress in work is crucial—vital—to economic growth, and yet the national gender pay gap remains at 13.1%. We know that women often face barriers in the workplace that impact their pay, progression and economic participation. Eight in 10 menopausal women say that their workplace has no basic support in place. This lack of support is a barrier and can lead to a significant loss of talent and, just as importantly, productivity.

This is not new. As a trade unionist, I, and my noble brother opposite, know full well—we have heard about all the legislation that has been brought in—that real progress has been effected in the workplace by supporting and amplifying that legislation and giving people the tools to ensure that that legislation has an impact. As a trade unionist, I have seen many initiatives that have delivered better facilities and ensured that women can remain active in the workplace.

I remember a campaign in the 70s and 80s about breast cancer. Many women would not even dare talk about it, but the trade union movement launched a campaign for workplace screening and opened up a debate, so that people could acknowledge the risks and address them, rather than live in isolation and fear. It is important that women are able to talk about the menopause openly and can address it. Breast cancer does not make women victims. We should all be focused on how we can deliver for women. That is really important, and there are many examples.

Since 2017, large employers have been required to publish gender pay gap data. The additional publication of an action plan is precisely to do what the noble Lord opposite has said. How do we see and assess the impact? The additional publication of an action plan has been encouraged, but it is voluntary. However, analysis in 2019 discovered that only half of employers reporting data were voluntarily producing a plan on how they can make improvements. What the noble Lord described is what has happened: they produce the data and do nothing. That is why this legislation is so important, and the next step for improvements for women in the workplace is to make that mandatory.

Of course, we recognise and applaud the best employers, which already recognise the value of supporting women to thrive and are already taking action—many noble Lords addressed that. Following their lead, large employers will be required to detail the actions they are taking to improve gender equality and support employees during the menopause. The intention is to motivate employers to take meaningful action, to break down the barriers and help all women to thrive.

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[Baroness O'Grady of Upper Holloway (Lab)]

I hardly know where to start.

[Lord Katz (Lab)]

Give it a go.

[Baroness O'Grady of Upper Holloway (Lab)]

Certainly, I believe that everybody at work—whatever background they come from and whatever their class, sex, gender or sexuality—should have the right to be treated fairly. I believe that our legal system, our Equality Act, precisely provides that protection for people, but that we can build on it through equality action plans and so on. But I have to say that maybe some noble Lords opposite also need to consider people’s real experience.

I was elected as the first ever woman general secretary of the TUC. Clearly, we were not a movement that rushed things, because it took an awful long time to get to that point. I have enough self-awareness to know that it was not because there were not talented women, black or white, who could have been elected and who had the talent, skills and ability. There was something else going on, and I hope that there would be enough honesty in this House to recognise that black people and women face real barriers that will not be overcome unless we take positive action.

The other point I would just like to reflect on is that, whenever I spoke about seeing more women playing active roles in not just the trade union movement but in public life, including, by the way, lending my support to women who were arguing that we needed more women in the boardroom—I supported that principle—I was always fascinated that, whenever I raised those issues, people, largely men I have to say, would start talking about merit. Well, I have to say, when I look at the upper echelons, I do not always see in those male-dominated and white-dominated ranks people who got there on the basis of merit. I have never seen an advert for a position on a board. I have never known any board member to go through an open recruitment process to get that position. It has very often been a case of a tap on the shoulder.

If we look at how many judges and newspaper editors we have, and specifically at race, sex and gender, yes, the picture has progressed, but we still have a very long way to go. Therefore, I think this amendment is a little disingenuous in trying to suggest that people who have been held back for years because of their class background, race or gender, if given a helping hand and a bit of encouragement to go for it, will somehow cause a meltdown of society.

Achieving what my noble friend said is, quite rightly, part of my history and our history. I hope that it is part of our progress as a country that we value equality. We know that ultimately it is good for all of us, and long may we keep struggling to achieve that goal.

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[Baroness Wilcox of Newport (Lab)]

My Lords, I can hardly follow my noble friend Lady O’Grady in being the TUC’s first woman general secretary, but I was the first woman leader of Newport City Council after decades and the first woman leader of the Welsh Local Government Association—and am still the only one.

I was also a public service employee for 35 years, when I taught in schools in London and south Wales, so I know about positive action. When I became a public service employer, as the leader of Newport, what I tried to do with positive action was to actively take a range of measures and initiatives to encourage people from communities that were underrepresented. We wanted them to bring their talents, experiences and expertise to our organisation, and we wanted them to join us.

Our selection process was no different: through the use of positive action, we did not seek to remove competition; rather, we wanted to allow everyone the same level of opportunity. That final selection for a post was always made on the merit of the applicant. We built our workforce so that it reflected the rich diversity and complexities of our community of Newport and we attracted the best talent from the widest pool of people.

[Lord Collins of Highbury (Lab)]

My Lords, this has been an interesting debate on positive action, and I am grateful to the noble Lord, Lord Sharpe of Epsom, for initiating it. It raised important issues but, when the noble Lord, Lord Jackson, spoke of straw-man debates, I thought he was a good example in the issues that he raised, because we are not talking about positive discrimination here. As the noble Lord, Lord Sharpe, acknowledged, all Governments have supported positive action, for very good reasons.

The positive action provisions in the Equality Act 2010 enable, in a work context, both public and private sector employers to prioritise the recruitment of and promote people who have protected characteristics that are underrepresented generally or at certain levels in their workplace.

This is permissible only where the available candidates are considered equally qualified for the particular role. In other words, it is a tie-break based on workforce diversity. We therefore do not accept the premise of the new clause that another employee has suffered an unjustified detriment by not being selected. Of course, we are absolutely clear that it is illegal to positively discriminate, and I will give reasons.

The noble Lord, Lord Sharpe, raised something that I read in the Daily Telegraph about West Yorkshire Police. One of the things that, sadly, many of our newspapers fail to do is to issue the full statement. I thought West Yorkshire Police issued a commendable statement. It said:

“In West Yorkshire Police, we are committed to improving equality, diversity, and inclusion within the organisation, and strive to be more representative of the communities we serve.


Our Diversity, Equality and Inclusion team supports and consults with those with different protected characteristics such as sex, disability, sexual orientation, and race to ensure their views can influence and improve the service the force delivers. They also work to improve the wellbeing of everybody in the organisation and inclusivity overall.


The most recent census found that 23 per cent of people in West Yorkshire identified as being from an ethnic minority background. Our current police officer representation from ethnic minority backgrounds is around nine per cent. To address this under-representation, we use Positive Action under the Equality Act 2010. Our use of this was recently reviewed by His Majesty’s Inspectorate of Constabulary and Fire and Rescue Services in an Activism and Impartiality inspection and no issues were identified.


Positive Action allows people from under-represented groups who express an interest in joining the force to complete an application, which is then held on file until a recruitment window is opened. No interviews are held until the window is officially opened to all candidates. Enabling people from under-represented groups to apply early does not give them an advantage in the application process, it simply provides us with more opportunity to attract talent from this pool of applicants”.


I think that is the point that my noble friend Lady O’Grady was making. It is a pity that the Daily Telegraph did not report the full statement from the police because I think it sets this whole thing in perfect context.

A detriment arises where someone is treated unfairly by their employer—for example, where someone is promoted over them who is clearly a weaker candidate. If the reason for that was based on a protected characteristic, it would be unlawful positive discrimination under the 2010 Act and would be rightly challengeable, but this is not the situation under positive action. I think that has been extremely well illustrated by West Yorkshire Police in terms of how it adopted that policy.

We also have doubts as to whether the processes envisaged could be truly confidential. This could have undesirable implications for both the successful candidate and the complainant. Lawful recruitment decisions are confidential for good reason, and opening them up to this kind of probing risks creating interemployee bad feeling, particularly in smaller departments where the identification of people by inference or guesswork is easier.

The Bill is about improving employment rights, not creating new and unnecessary conflicts. Positive action can work effectively only as part of a confidential recruitment process, where transparency is often good for equality. What is proposed would, I fear, work against that, and as such the Government cannot support the proposed new clause.

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[Lord Sharpe of Epsom (Con)]

I thank the Minister for that comprehensive answer, and I thank all noble Lords who have spoken in this quite lively debate. I have to say I was disappointed that the greatest lady of them all who did not need a helping hand did not get a mention, so I will mention her: Margaret Thatcher.

I say to the noble Lord, Lord Liddle, that we are not seeking to undermine anything in this; I was very clear about that. I want to make it clear that, as I said in my opening remarks, this amendment does not seek to outlaw such action, nor does it obstruct efforts to promote fairness. It just seeks to ensure that fairness extends to all employees, not only to those whom the state or the employer happens to deem underrepresented.

I am grateful to the Minister for his extended quote from the Yorkshire case, but I also mentioned the case in Thames Valley. A tribunal there ruled that the three white police officers who won a claim after they were passed over for promotion were overlooked by Thames Valley Police because of their race and an ethnic-minority sergeant was promoted—this is the killer line—

“without any competitive assessment process taking place”,

which is precisely not the spirit of the laws that we have just been discussing.

[Lord Collins of Highbury (Lab)]

And that is illegal.

[Lord Sharpe of Epsom (Con)]

That is why we were asking these questions and laying this amendment. It is good to have it out in the open. The amendment sought not litigation but clarity. It sought not courtroom battles but a simple mechanism for transparency and accountability. It would have been a route for asking questions and a structure for reporting. It would be a reminder that positive action must remain within the bounds of the law and fairness, and not become a euphemism for sanctioned discrimination. However, I have heard the arguments from the Minister and, not least because of the lateness of the hour, I am content to withdraw the amendment.