(3 months, 1 week ago)
Lords ChamberMy Lords, it is a great pleasure to follow the noble Baroness, Lady Anderson of Stoke-on-Trent, who so comprehensively and powerfully set out the need for the Bill. I also commend the honourable Chris Elmore, for taking it up and seeing it through the other place.
I am speaking to express Green Party support for the Bill and for fathers and partners who, in the most tragic of circumstances, find themselves a single parent as a result of the death of a partner or spouse. We all struggle to imagine how people survive such circumstances, but they have to. I must reference the amount of discussion that we have had this week about the evident need to improve maternity care dramatically. But, whatever we manage to achieve in that area, there will still be tragic occasions that we need this law to cover.
It is interesting to note that this is a real indication of how Parliament and the parliamentary process can and should work, but so rarely does. We are amending the Employment Rights Act 1996 and, in Committee in the other place, the original proposed Bill was amended to cover a broader range of circumstances, fully covering adoption and surrogacy and, as the noble Baroness said, the situation where a child dies. It was a copybook process, which we would like to see being done a lot more to produce good legislation and do things that needs to be done and that do not need to be regarded as political.
There was discussion in the other place about how this does not cover Northern Ireland. There was some suggestion that it might be extended, so can the Minister comment on whether that is technically possible, feasible or is being taken forward in any way? It was raised in the other place.
I follow the noble Baroness in acknowledging the work of Gingerbread, in making the case for this legislation and driving it through. It is a demonstration that campaigning works. Campaigning can be a long and thankless task, into which people have to put an enormous amount of effort, but it delivers. We need to acknowledge the importance of civil society voices being heard in both Chambers and being listened to and acted on.
Finally, I want to look at the broader context of the Bill. It restates an important principle that, when a child is born, they are not just an individual or a member of a family but a member of our society. They are definitely not the property of their parents. They are not the sole responsibility of their parent or parents, but the responsibility of all of us. Society has a responsibility to make sure that every child has a decent start in life. That is a moral position that, sadly, needs to be increasingly restated these days, but it is also a practical position: if we are going to have a functioning society that can tackle the many challenges and crises that we now face, we need to make sure that every human being in our society is able to develop to their full potential. We cannot afford to abandon any child, or any parent who is struggling to raise a child in impossible circumstances, without the resources to do the job.
This is a really excellent piece of work. I congratulate everyone involved and, like the noble Baroness, look forward to it being on the statute book with the regulations in place as soon as possible.
(3 months, 2 weeks ago)
Lords ChamberWhen it comes to stock market listings and the operation of stock markets, that is, by definition, capitalism in the private sector, and the Government should not get involved in that particular exchange. However, the previous lord mayor led a very interesting initiative which identified that our pension funds are not investing enough in UK equities, so there is now an interesting scheme going on whereby we can see whether we can get 5% of UK pension funds invested in UK equities, which I think is a very worthwhile initiative.
When it comes to headquarters, et cetera, a number of studies have been put out recently by PwC, EY and Boston Consulting Group which have done surveys with CEOs who indicate that they still believe that the UK is one of the best places to locate their head office in Europe. Therefore, we do not see any diminution in that. Foreign direct investment into the UK now is greater than into France, Germany and Italy combined. The market, the money, talks. The money is coming in—my noble friend Lord Johnson is doing a sterling job on that. We have a strong, good economy. Foreign investment is coming in. There is dislocation of stock markets, but initiatives are being taken to alleviate that concern.
My Lords, I am glad that the Minister agrees with the Green Party about GDP growth being an extremely inaccurate measure of progress in a society. The question I want to ask is specifically about the situation of small and medium-sized enterprises exporting to the EU. Importers are having many difficulties. The noble Viscount, Lord Waverley, referred to florists, and horticulturists are reaching out to me regularly. On exporters, British Chambers of Commerce figures for the fourth quarter of 2023 show that 50% of SMEs have had no change in overseas sales while 24% have seen a decrease and that exports from SMEs to the EU are consistently underperforming domestic sales. The head of trade policy at the BCC has said
“firms continue to express huge frustration with the complexity and cost involved”,
referring to exporting to the EU. Are the Government going to do more to help in what is clearly a deeply damaging situation for SMEs?
I just wish the noble Baroness had been at breakfast this morning at No. 10 Downing Street, where my noble friend Lord Petitgas and I hosted 16 SMEs which are exporters to Europe and elsewhere. They reported on how their businesses are trading up and that they now have the opportunity to trade around the world beyond Europe. I have been through the numbers; they do not lie. The numbers say that in terms of our manufacturing there has been no difference between Europe and the rest of the world. There are of course individual circumstances and individual companies where there have been ups and downs. That is business, but, overall, we are very clear that our SMEs have a great appetite to export. We need to get more of them exporting—as I said, 300,000 out of 2.5 million VAT-registered companies do so; I personally feel that we should push that up to half a million. We can do that, especially with the new digital industries coming through. Certainly, I would be very happy to introduce the noble Baroness to a number of the export champions today. Some of them are actually bringing manufacturing back—onshoring manufacturing —to the UK following Brexit. That is a very pleasing development.
(5 months, 1 week ago)
Lords ChamberMy Lords, I will return in some detail to food safety and food standards, referred to by noble Viscount, Lord Trenchard, but I point out now that it is the standards of production that give rise to the need for the chlorine-washing of chicken. The dreadful US food safety standards, which are the main issue, are surely not something we want to import into the UK.
Like other noble Lords, I begin by thanking the noble Baroness, Lady Hayter, for her clear introduction, and the committee for a comprehensive report. It expresses many of the concerns I have about the trans-Pacific partnership—I will use that phrase, rather than the acronym—although I would express them in much stronger terms than the committee has. However, we know that our committees operate on a consensus basis.
Much of what I might have said about it making much more sense to trade with our neighbours has been said already by the noble Lord, Lord Purvis, so I will not repeat that. I will cite one economics textbook, which notes that the negative correlation between geographic distance and bilateral trade volumes is considered to be one of the most robust findings in economics. I do not often quote mainstream economics, but there is some obvious common sense there. I hope that the cat belonging to the neighbours of the noble Lord, Lord Purvis of Tweed, gets better soon. It is a very useful metaphor. I also agree with what the noble Lord said about a visit to Taiwan. That was a very useful comment.
With the trans-Pacific partnership, we are talking about decisions that have significant implications for climate action and inaction, environmental standards, human rights, labour rights, international development, food standards—as has already been referred to—animal welfare and public health. One of the areas that has rightly received the most attention has been the conclusion of the deal with Malaysia on palm oil. This is a major issue for environmental standards and indigenous rights in Malaysia, and—as your Lordships’ House knows, given that we are increasingly debating the issue of ultra-processed food—for public health in the UK. It could be very difficult for some of the rising, innovative UK producers of alternative oilseed crops to compete against palm oil produced from felled rain forests under very dubious labour conditions. The Minister may say, “Oh, but it is all going to be sustainable”, but I am afraid that the registration standards simply do not stack up for much of Malaysian palm oil.
I would also like to receive a direct response from the Minister, either now or in writing, about pesticides that are banned in the UK but are used across the trans-Pacific partnership. What are the Government doing to ensure that products that are treated with those pesticides are not brought into the UK? Disagreeing again with the noble Viscount, Lord Trenchard, on the precautionary principle, the EU is bringing in stronger and stronger rules because it did not apply the precautionary principle. More and more research is showing more and more dangers, particularly from pesticides and other chemicals in use. The EU is getting far ahead of us in terms of banning chemicals. We are trailing far behind. There is a real risk that we will become a dumping ground for products that cannot be sold in the EU under tightened regulations. What are the Government doing to ensure that that does not happen?
I very much agree with the comments made by the noble Lord, Lord Kerr of Kinlochard, about the UK’s democratic deficit—the giant democratic deficit—with regard to trade deals, as the committee’s report also makes clear. All we have today is a take-note Motion: the definition of not doing anything, which is exactly what we are doing now. All we can do is express concerns, with no substantive impact.
I disagree with the noble Lord, Lord Lansley, as I have many times before and probably will again, on the issue of ISDS. There is substantial evidence that, in some cases, it forces governments to reverse measures taken for the public good; it also has a chilling effect on democratic decision-making for the public good. According to the most recent figures I have from the UN Conference on Trade and Development, 175 cases have been brought on environmental issues under the ISDS procedure, half of which were under the energy charter treaty. I praise the Government for their direction of travel on that treaty. That is indeed progress, so I can say “Well done”—but that still leaves the other half of the cases. There is no doubt about the impact of reducing government action, but also the adverse effects on the UK’s agri-food sector, which I shall come to.
I turn to some specific recent issues that mostly relate to the Australian trade deal, but which tie in, of course, with the trans-Pacific partnership as well. The Government have promised that no hormone-treated Canadian beef will come in under this partnership. I would be interested to hear the latest on what the Government are doing on that.
It is interesting to look at some recent developments with Australian beef. Farmers Weekly recently reported the first attempt under the new deal to export British beef to Australia. It was stopped by Australian trade regulations. For the avoidance of doubt, as a Green, I am not at all in any favour of us producing beef here and shipping it to Australia, or Australia producing beef there and shipping it here. None the less, there is a profound inequality between Australian farmers and British farmers in the trade arena.
There is also, of course, a profound imbalance in production costs and systems between Australian beef and British beef. I do not know if the Minister is aware of this, but a recent article published in Animal Production Science, a CSIRO Publishing journal, looks at greenhouse gas emissions. It makes a well defended case, published in a peer-reviewed journal, that is quite astonishing when you think about it: there are 10 million more head of cattle in Australia than official counts provide for. Interestingly, the head of the Australian Bureau of Statistics said that the official figures were never designed to measure the total cattle population, and that it is clear that that is a much lower estimate. That is worth noting. I have regularly tried to explain to your Lordships’ House how different Australian production standards are. Perhaps the following sentence, which is a direct quote from Rob Walter, ABS head of agricultural statistics, will help:
“Some of those properties in northern Australia are the size of small European countries. For them to know how many cattle they have … can be very difficult”.
I invite noble Lords to think about a local small farmer they know with a few head of cattle on 100 or 200 acres, to contrast those two production systems and imagine what it is like when they try to compete against each other.
I will wrap up by agreeing with the noble Lord, Lord Lansley, that it is probably too late for this Government to produce a trade policy. It would not be a very meaningful piece of paper to produce at this point. But this issue very much needs to be part of the debate in the run-up to our next general election. We need to think about what kind of trade we want—what volumes of trade will benefit our food security, our environmental security and all of our futures.
I was at the meeting of the All-Party Parliamentary Group for Fairtrade this morning. This year is the 30th anniversary of the fair trade movement. It has made some limited progress, but we still have profound inequality in global trade. Global trade is still not providing us with food security in this age of shocks, and we need to think about the level of trade that is useful to us—trade that is for the public good, rather than a simple maximisation of private profit that comes with a cost to us all.
They are hopefully crowded around their iPads; the noble Lord should know that we have updated from the old-fashioned wireless—which, of course, we have in my household.
I want to say thank you, genuinely, to the noble Baroness, Lady Hayter, and the noble and learned Lord, Lord Goldsmith. I thank the International Agreements Committee for its report. I have a draft set of responses to the report, which will be formulated appropriately and given to the noble Lords as soon as possible. It really was excellent, and I think all the points that the Government have been challenged on are worthy of a response. I am extremely grateful for the mature approach the report took to the value of this trade deal and seeing the optimistic benefits of the CPTPP, within the reasonable framework that we will operate to.
It is possible that noble Lords may hear cheering if they listen carefully, because a few moments ago the Bill was passed in the House of Commons. I am sure we all feel the ripple—the Mexican wave, which is appropriate as it is a CPTPP member—coming down the Corridor to us. Before I go further and answer many noble Lords’ points, I refer Members to my register of interest. I do not believe there are specific conflicts, but I do have interests in CPTPP countries.
I have tried to group the comments made in this important debate and so, if I may, I will go through them. I will try to refer specifically to noble Lords themselves. I will highlight a few individuals, particularly the noble Baroness, Lady Lawlor. I congratulate her for giving a succinct and powerful description of the benefits of free trade, which often we forget. It is right that, in a scrutiny environment such as this House, we look at the problems, issues or challenges that might present themselves with a piece of legislation or a new treaty. To have the truly positive case for free trade made so clearly and powerfully is something that I welcome, and I am very grateful to the noble Baroness for that.
I am very grateful to the noble Viscount, Lord Trenchard, for his words. Again, he has been a passenger on the free trade express over the last year and a half since I have taken this position. I am extremely grateful for his advice and expert opinion on Japan, and the very positive case that Japan makes in terms of our trade relationship with the CPTPP and the associated benefits we have, both through having a trade agreement and an association with it through this process.
I thank the noble Lord, Lord Marland, for his very generous comments about our joint efforts to spread the benefits of UK trade around the world. If anyone has the most air miles on these red Benches, it must be a close competition between the noble Lords, Lord Purvis and Lord Marland. Both noble Lords are doing such important work, whether in spreading democracy and helping complex situations be resolved, or in pushing the Commonwealth. While this is not a debate about the Commonwealth, it is important to note how many countries that make up CPTPP are Commonwealth members. It is absolutely right that we should use this as further leverage to work with our Commonwealth peers. I will certainly take to my colleagues in the Foreign, Commonwealth and Development Office the comments made by the noble Lord, Lord Marland.
I am always grateful to the noble Lord, Lord Kerr, for his comments as to how we can better manage our trade process. If I may, I will just draw his attention, as someone so distinguished and who lauded the EU’s FTA negotiation process, to the fact that I do not think the EU has done a trade deal in my political lifetime. The most recent one was after a culmination of 17 years of negotiation, and the current ones are all live after many years. We have managed to close this deal in an extremely effective time period.
I turn to the process of CRaG which has been well raised by noble Lords. We made a clear commitment under the Grimstone convention that, if there was time, we would have a debate, and this is exactly what we are doing today. My colleagues and I have made ourselves totally and freely available to engage on every issue. Officials have been extremely open in responding to questions and challenges and I am glad to see some of them here today. I am particular aware of issues, such as SPS protection which was raised by the noble Baroness, Lady McIntosh, or agriculture, raised by the noble Lord, Lord McNicol, as well as points made by other speakers on the Front Bench from all parties. I think we have exceeded expectations in the work we have done in order to project that necessary element of debate.
I am not trying to avoid the point, but it is not for me to comment on the activities of the other place. I will leave that to them. It is right to be very comfortable in knowing that any new accession will be equally bound by the CRaG process. This is extremely important. It would be completely unreasonable if that were not the case. The Government have committed to that and I am very comfortable in making a further Front Bench commitment to it.
It is worth touching on some of the sub-issues that have come up in this debate. The noble Lord, Lord Fox, wisely raised SPS measures, and comments were made about ISDS. I believe we had a discussion earlier in this Chamber about the brevity of speeches and the importance of avoiding repetition, but I am going to have to repeat myself, if I may, and test the patience of noble Lords. There is no derogation. It says so in Hansard. It has been in Hansard before. There should be a collected, bound edition of my repeated statements in Hansard about free trade agreements that do not derogate from the security of our sanitary and phytosanitary provisions. It is very important to be comfortable about this. Hormone- injected beef, chlorinated chicken or dangerous pesticides which are banned here are not allowed into the UK on account of the FTA. This is a matter under our own control. It is important that consumers hear this.
When I talk to people about free trade deals, a lot of them worry that, somehow, this will result in a tidal wave of deadly products. The noble Baroness, Lady Bennett, referred to the UK becoming a dumping ground for dangerous products. Any decision to allow so-called dangerous products into the UK is a matter for the UK Border Agency, the food safety authorities and the Government. If that is the case, it has nothing to do with this FTA, which is important in the sense that it changes our position on tariffs and how we trade with each of the different countries. I just want to reassure noble Lords and the public that nothing will change.
To respond briefly to the Minister, of course, there is “allowing”, and there is also what checking is being done to make sure that it does not happen anyway. That is the kind of checking I was referring to.
I thank the noble Baroness. The checking is a matter for the Food Standards Agency. We have made a number of assertions. It believes that this FTA will not result in additional risk for it. I do not wish to be contentious. I always listen very closely to the noble Baroness’s comment about free trade. We do not share the same views on its benefits. I listened to her very carefully and I noticed that at no point did she mention the principle of the consumer. I am particularly focused on making sure that the consumer benefits from these free trade deals—that they see prices come down and the range of products broaden.
A number of noble Lords, including the noble Lord, Lord Fox, and the noble Baroness, Lady Bennett, mentioned the concept of proximity being at the core of trade. For many goods, it is right and in fact efficient to have a proximous concept of trade. I think of the idea of swapping beef herds, in terms of practicality—although I think we sell better beef than the Australians, and certainly more specialist types—so there is a market in that sense. However, if we look at investment, which is an important element of the CPTPP, our two biggest investment partners in terms of growth and current value are the United States and now India. They are clearly not the most proximous countries to the UK, so it is important to understand that, in modern trade, in services, the digital provision of services and financial investment, the world truly is our oyster.
Speaking of investment: the ISDS concern is raised continually. As Investment Minister, I believe that strong investment protections for investors into the UK are at the core of our offering. If, at any point, investors felt that their investment rights would be derogated, it would be much harder for all of us—and whoever stands in my place as Investment Minister—to get the vital money that we need for our infrastructure into this country. These ISDS provisions are enormously beneficial for us. I feel totally safe in offering them to other countries. I do not believe that there is any derogation of our ability to manage our economy, our ambitions for net zero, how we treat our workforce or any other measure. Investing in these CPTPP countries protects our businesses, particularly in countries such as Malaysia where we now have these protections.
That brings me briefly to the services point—
(5 months, 2 weeks ago)
Lords ChamberMy Lords, I refer your Lordships to my entry in the register. I have been on the staff of the Telegraph Media Group since 1979, so this interest bulks large in my mind; I had to confess it at once. I am very grateful for everything that has been said and to the noble Baroness, Lady Stowell, for moving this amendment. I am also very pleased that this has been a cross-party affair coming from all sides of the House.
My only regret so far is that the Government were inclined to regard this as a technical matter that had to be looked at in terms of rules. It is important to look at the rules, which DCMS is doing, but it is not really about that. As has been said by the noble Lord, Lord Forsyth, and all other speakers, this is a very important matter of principle. The delay involved has been very difficult for newspapers in general, and particularly for my own and for the Spectator, because while you do not know what will happen you cannot really get on with doing your journalism. That tends to erode things if you are not careful, so it is very important that we have got to the heart of it.
I endorse absolutely everything that the noble Lord, Lord Forsyth, said about the Abu Dhabi bid, but I am quite glad that I do not have to say it myself, because if we had had such a rule and such clarity from the start, people would not have had to get into this issue of saying rather difficult truths about many regimes across the world. We would simply have been able to say, “No, sorry, the rule is the rule, and that’s that”. I hope we can learn something from all that.
I have seen the leak, if that is the right word, so I have a rough idea about what we might hear later. I want to make two important points. One is that I hope the Spectator, and magazines like it, will be properly included in any decisions, because, as I understand the rules at present, they refer to national newspapers and not automatically to national news magazines, and I think precisely the same point should apply.
There is room for possible problems about minority ownership. It is possible, in the way that ownership works in companies, that an ownership of less than 50% can amount to a controlling interest; that can be done in a covert way or sometimes in an open way. If it were the case that, for example, RedBird IMI took a minority stake, that would be better than a majority stake but would not automatically solve the problem. I hope the Government will address that.
At the Daily Telegraph we have always been proud advocates and practitioners of a free press, but we have not particularly enjoyed having to advocate it quite so hard and so repeatedly to get the message across. I am glad to sense that the message has got across, and I am grateful to noble Lords on all sides of the House. I hope we can now move forward with due expedition.
My Lords, I rise very briefly for two reasons. First, I offer Green support to the direction in which we are heading and join in the congratulations for the noble Baroness, Lady Stowell, on all the work she has done here.
Before I begin the second point, I declare my historical interest as a former editor of the Guardian Weekly and a former employee of the Times. I will refer to the report Who Owns the UK Media?, published last year by the Media Reform Coalition at Goldsmiths. I very much agree with what the noble Baroness said about the importance of the principle of press freedom, and with the noble Lord, Lord Forsyth, about the free press as a foundation of our democracy, and that ownership matters. But I urge all noble Lords who take part in this Report to consider how much diversity of media ownership matters.
As it says in that report, three UK publishers—DMG Media, News UK and Reach—control 90% of the print reach in the UK and 40% of the online reach. The report’s authors said there was an “urgent need for reform”, and urged Ofcom, Parliament and the Government to take action to address diversity of media ownership. If DMG Media were to buy the Telegraph Media Group, its print share would rise from 42% to 47%.
I very much welcome what I think we are about to hear and all the work that has gone into this, but I urge noble Lords to consider the much more work that needs to be done to achieve the diversity of voices that is so crucial to the strength of our democracy.
My Lords, I rise to speak to Amendment 67, tabled by the noble Baroness, Lady Stowell, and I congratulate her on all the hard work she has done to get to this point.
I have not spoken previously on the Bill, but I specifically want to speak today as a passionate supporter of a free press and freedom of speech. As a former deputy editor of the Daily Mail and the Daily Telegraph, and the editor for seven years of the London Evening Standard, I know that anyone who buys a newspaper wants to influence society, politicians and government. All proprietors interfere. Many editors have been forced to resign because of that interference. I departed from the Telegraph with Max Hastings because the owner—the noble Lord, Lord Black—disagreed with the editor’s support for Europe. After I left the Standard, the paper became a promotion vehicle for the new owner, the noble Lord, Lord Lebedev, and his personal interests. The notion that a Government, or someone appointed by a Government, buys a newspaper other than to directly influence the newspaper is fanciful.
My Lords, I rise to move Amendment 68, but it is not my intention to speak to any of the other amendments in this diverse and large group, in the interests of proceeding in a timely manner.
Noble Lords will see that this amendment seeks to amend the definition of the collective interests of consumers to include
“the detriment caused by the advertising and promotion of high carbon products and services”.
For noble Lords who were not in Committee, I will tell the story of the origins of this, which was Amendment 109 from the noble Baroness, Lady Jones of Whitchurch. Her amendment basically set out that there would be controls to avoid detriment for any action that would prevent us reaching net zero by 2050. I pointed out to the noble Baroness that, given that at that time the Climate Change Committee was saying that we were well off track for meeting that 2050 net-zero target, the amendment, in effect, would have stopped all advertising of any product producing carbon, which I do not think was the noble Baroness’s intention.
I therefore find myself in the unusual situation of tabling on Report a more moderate amendment than we were discussing in Committee in terms of reducing carbon emissions and looking to reduce the detriment for consumers. That is why my amendment focuses on high-carbon products. As I said in Committee, high-carbon products obviously include fossil fuels, flights, SUVs and plastics, but also fast fashion, meat and dairy, and banks that are funding the likes of BP and Shell. It is worth noting, going back to when the Government first started promoting this Bill, that we were promised a huge amount of action; one of the purposes of the Bill was to provide protections from greenwashing. We have gone a long way backwards from that. My amendment is an attempt to reinstate, in a small way, what was stated to be an original intention of the Bill.
I promise that this was not co-ordinated, but I note that I speak to this amendment just a few hours after—we are very timely—another Member of your Lordships’ House, the noble Baroness, Lady Brown of Cambridge, has published an article on Business Green pointing out how the UK is not in any way on track to meet the needs of climate adaptation. She talks about us
“sleepwalking into an energy system”
that cannot be implemented and achieved, while we face flooding, extreme heat and water scarcity that will cost lives.
Therefore, this is an amendment to take us in a direction that we surely need to go. There is no right to advertise. We can decide what sort of advertising all our consumers are subjected to, particularly in the digital space, where people are bombarded, every second, with more and more adverts, and we know how advertising tracks us: once we have shown an interest in one topic, we are subject to bombardment. We do not have to say that it is open slather and you can do whatever you like in terms of advertising and promotion. Cigarette advertising is an obvious area where we have already taken quite tight action, and I note that Transport for London now restricts advertising of a range of products, including junk food, and there is talk of banning gambling promotion. France and Amsterdam are also looking at a ban similar to the one that this amendment would point us towards, banning high-carbon adverts.
It is not my intention to put this to a vote. There are so many areas of government action in which the Greens start saying something and, 10 years later, it gets delivered and becomes government policy, but we really cannot wait on climate action, as the independent Climate Change Committee says; that, of course, features Members of your Lordships’ House. We really need to act now, and if we are not going to see this from the Government in this Bill, there will be opportunities forthcoming. The Media Bill comes to mind, and we will see where we can continue to push for action in this area. I beg to move.
My Lords, I shall speak to Amendments 99 to 101 and I declare an interest as president of the Chartered Trading Standards Institute. I am pleased that also sponsoring these amendments are my predecessor as president of the institute, the noble Baroness, Lady Crawley, and the noble Baroness, Lady Bakewell of Hardington Mandeville, a former leader of Somerset County Council.
Before speaking to these amendments, I thank my noble friend for using the Bill to extend online interface order provisions to trading standards, an issue we raised in Committee in amendments moved very ably by the noble Lords, Lord Clement-Jones and Lord Bassam of Brighton. I thank my noble friend also for the correspondence and discussion with him and his officials since Committee about the ongoing concerns that have prompted our amendments in this group and the next.
Amendments 99 and 100 would enable local authority trading standards officers to exercise their powers throughout the United Kingdom. Currently, the legislation implies that officers in England and Wales can exercise powers only in England and Wales but not in Scotland, and vice versa, but rogue traders operate across our internal borders and the legislation and powers that underpin trading standards and consumer protection should recognise this cold, hard reality. We fully respect the different legal jurisdictions involved. The current restriction, however, relates to the exercise of powers, not to the ability to take legal proceedings, and the legislation applies equally in the devolved nations. The restriction makes enforcement more challenging if, for example, a trader based in Scotland commits an offence in England, as trading standards officers can face legal challenges if they request documents they would be entitled to were it not for this anomaly. I should add that trading standards officers across Scotland, England and Wales support this amendment, as it would allow them to conduct investigations throughout the United Kingdom in a more efficient and cost-effective manner.
Amendment 101 would enable trading standards to access information by letter, rather than being restricted to having to exercise a power of entry to access that same information. As the Bill is currently drafted, trading standards need to visit the business in person to obtain paperwork to use as evidence in criminal proceedings. This amendment would ease the pressure on businesses, as they will then have time to gather and send any documents requested, and to seek legal advice, rather than face a trading standards officer just turning up at their business address without notice and seizing documents.
This proposal is therefore in the interests of both businesses and enforcers, and we believe that it does not breach the individual’s human rights or cause any greater risk of self-incrimination. It also reflects the financial difficulties that local authorities are facing, not least those that have declared bankruptcy. There are clear cost implications if an enforcement officer is required to drive half way across the country to obtain documents. Cases can be dropped if there is insufficient council budget for such travel. The documents I am referring to are those that the officer has the right to request and seize when on the business premises, and in those circumstances a trader would have to provide them immediately.
We believe that the ability to make a written request for documents that are held by the business and are required as evidence would substantially reduce costs to the local authority, reduce pressure on businesses and allow those breaching the legislation to be brought to justice more efficiently and cost effectively.
On the basis that my noble friend Lord Camrose has responsibility for the IPO, he has kindly offered to write to the noble Lord on this matter and give further clarification.
This has been a varied and valuable debate. I thank noble Lords again for their engagement. I hope the assurances that I have provided will therefore give noble Lords confidence not to press their amendments.
My Lords, I thank the Minister for his response, though I am not sure “confidence” is quite the right word for the emotion I am feeling at the moment.
I said that I would comment only on my Amendment 68, but I must make brief reference to commend the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady Crawley, for doing what many think your Lordships’ House should be restricted to—providing modest improvements and ways to help the Government make the system work better. I do not think it should be restricted to that, but it is certainly important that it does it. Reflecting on the trading standards issues, it was not mentioned but is worth noting that the Chartered Trading Standards Institute noted last year that, in the last decade, the number of trading standards officers in local authorities has halved, so they need anything that makes their work easier. The Government would, I am sure, say that they believe in efficiency and government productivity, and the suggestion from the noble Baroness seemed to be designed for that purpose. None the less, those are very technical areas, so I will park them there, as I will park the government amendments.
Regarding my Amendment 68, we will be watching closely what the CMA does in terms of action on green- washing. There is a general belief that the Bill simply does not have the teeth, or strength, that it needs. The overall issue—that we are way beyond our current targets on climate emissions—was not addressed by the Minister. I thank the noble Lord, Lord Stevenson of Balmacara, for the comments and strength he brought to the intention to see more action in this area. In the meantime, I beg leave to withdraw the amendment.
My Lords, I rise very briefly. I spoke on these important subjects in Committee, and I am not going to repeat everything I said. I want to speak specifically on Amendment 104 on the right to repair, which the noble Baroness, Lady Hayman, so powerfully introduced, just to make a couple of additional points. She said that we are per capita the second-highest producer of e-waste in the world. It is interesting that we were talking about the security implications of this Bill in an earlier group on media ownership. With the incredible amount of e-waste in the world—53 million tonnes in 2022—and the need for rare earth minerals and the other minerals that go into these replacement products, it is worth saying there is a security implication to this that people may well not have thought of.
The noble Baroness, Lady Hayman, said that the Minister said that things were heading in the right direction. It is worth noting that there are a couple of areas where it very clearly is not. Increasingly, producers of devices, particularly phones, are hard-coding error messages into their product, so that if a third party tries to repair it, there is an error message and the device will not work any more. That has very clearly got worse, not better. There is also an increased amount of parts pairing, in which individual parts are tied to the device they are shipped with using a unique serial number, so you cannot get a replacement part put in. Again, the device will stop working. I think that was a really important point to make.
I have two points to make about how much further other parts of the world have gone. First, it was EU regulations that forced the latest iPhone to include a USB-C charging point rather than a proprietary one. That has both saved resources and saved people money, because the cost is about 1/10th of the proprietary charger, so this is also a cost of living issue. Secondly, I note that Germany and Austria have subsidies for repairs to allow low-income people to get electronic devices repaired when they would not be able to afford to do so otherwise. Please let us get some progress here.
My Lords, my noble friend Lady Bakewell has clearly set out our support for Amendment 104 by the noble Baroness, Lady Hayman, and Amendments 109 and 115 by the noble Earl, Lord Lindsay, so I will not repeat what she has said. I shall speak to Amendments 107A and 107B relating to fake reviews, Amendments 105, 106, 110 and 111 regarding electrical safety and Amendment 108 on package travel.
The issue of electronic safety is a relatively new entrant in our discussions on the Bill, for which I apologise, but charities such as Electrical Safety First and Which? as well as the Government’s own Office for Product Safety and Standards have repeatedly found unsafe goods listed on online marketplaces. For instance, one investigation undertaken by Electrical Safety First found that 93% of products bought from online marketplaces were unsafe.
The Government have made a series of commitments on both online safety and product safety, included committing to ensuring that only safe products could be placed on the market now and in future, ensuring that the product safety framework was fit for purpose and making the UK the safest place in the world to be online. In my view, failing to address the sale of unsafe goods within the Bill means that they will fail to achieve their objectives in protecting consumers and promoting competition, and in addition will continue to fail in achieving their objective of ensuring that the UK is the safest place in the world to be online and that only safe products are placed on the market. By not including the sale of unsafe products within the scope of the Bill, it seems that the Government are allowing the UK to become what has been described as a Wild West for unsafe products.
There is a clear interrelationship between scams and unsafe products. For instance, Electrical Safety First found unsafe devices claiming to save consumers energy being sold on the online marketplace eBay. Not only were these devices ineffective at saving consumers energy, but they were also unsafe, placing consumers and their homes at the risk of electrical shock and fire. By not including unsafe products in the Bill, the Government therefore continue to place consumers at risk on a daily basis.
Consumers shopping on online marketplaces in other jurisdictions are better protected than UK consumers —in the EU, Australia and the USA, to name but three. The UK is clearly not moving at the same pace as comparable countries when it comes to regulating online marketplaces. The Bill is an opportunity to address that, but in its current form it is a missed opportunity to protect consumers.
I turn to Amendments 107A and 107B. In September 2023, as we know, the Government consulted on adding fake reviews to the unfair commercial practices list via Schedule 19 to the digital markets Bill, and now we have the government amendments to the Bill to reflect that. They are welcome so far as they go, but it is perplexing—informed organisations such as Trustpilot are perplexed—as to why the Government are not placing a stronger duty on social media firms and ISPs that host the sale of fake reviews. The wording does not expressly bring social media and internet service provider sites within scope where these are used by review sellers and brokers to offer their services. That seems extremely unsatisfactory, given that the Bill is so far through its scrutiny, and it is only on Report here in the Lords that we are seeing the wording that the Government intend to use to ensure that fake reviews are included in Schedule 19 on commercial practices.
Amendment 107A seeks to ensure that there is no loophole in the application of new paragraph 12A(4) inserted by Amendment 107. The inclusion of the words “for the facilitating of” in paragraph 12A(4)(b) could be read narrowly to suggest that the purpose of the service is relevant. In our view, providers of certain services such as social media sites that host the sale of fake reviews could potentially use that as a technicality through which to avoid liability by claiming that the purpose of the service they offer is not for doing anything covered by sub-paragraphs (1) and (2), and therefore this provision is not applicable in the event of abuse.
Is the Minister of the view that the facilitation of the sale of fake reviews by social media and internet service providers will be in the scope of this legislation under paragraph 12A(4), given the integral role that such services can play in enabling fake reviews to find customers? If not, why is such a gap being left in the legislation? Apparently, the Government are citing the legal scope constraints that act to limit their ability to tackle activity that happens upstream. I do not know what discussions have taken place between Trustpilot and the Government, but that sounds rather extraordinary.
I turn to Amendment 108. Since our discussions in Committee, it seems that Ryanair has started to work with some online travel agents. That definitely sounds like a win for our debates if we can take it as such, but other low-cost airlines are still resisting booking through agents, causing various harms to consumer protection, as we have discussed. The Minister’s statement about the package travel restrictions call for evidence is welcome, but the matter under discussion has always been a wider point regarding the use of third-party agents. Hence I have come back with one of the amendments that I tabled in Committee.
The Minister made one or two points in Committee that are worth picking up. He said that
“the contract is between the trader and the consumer, and therefore the consumer benefits from the relevant consumer rights”.
He also said that whether the transactional decision
“is carried out by the consumer themselves or a third party is not relevant. The consumer that the contract is with will receive the relevant consumer rights”.
Yes, the consumer is entitled to protection, but where an agent is involved this requires either the trader to pay the agent or the agent to stump up the refund themselves. That position also does not reflect the regrettable truth that consumers are being discriminated against because they choose to book through third parties.
The Minister brought up the question of the consumer-to-trader relationship and whether or not traders would
“become consumers in the eyes of the law”.
However, the issue is not that the agent becomes the consumer but that consumers who book directly through a third party are equally protected.
The Minister said that
“the Government have ensured that the CMA has significant powers to investigate and act if it finds that businesses are behaving anti- competitively in a market”.
It is not the CMA’s market powers that are in dispute; the problem is that the CMA is not acting to use those powers to investigate key consumer markets, despite clear evidence that competition is not working well.
The Minister also said:
“The operation of airlines and travel agents is governed by PTRs and ATOL. Those are being reviewed. That is the appropriate way to consider these issues”.—[Official Report, 31/1/24; cols. GC 394-95.]
Although important, neither of those addresses the misuse of market power and the damage that this is causing to consumer protection and to the viability of the market. Neither the PTR or ATOL regimes protect consumer choice or promote competition. The loss of that is the real threat, which can be addressed only through a CMA market review.
Finally, as regards ticketing, I very strongly support the amendment in the name of the noble Lord, Lord Moynihan. I salute him and Sharon Hodgson MP for their work through the all-party ticketing group throughout the years. In Committee, the noble Lord, Lord Offord, said that the Government do not wish to prevent consumers having choice in respect to secondary ticketing, but surely it should be an informed choice, in the way that the noble Lord outlined in his amendment. The Minister talked about the fact that the Government have legislated to give consumers fuller information on tickets that they are buying on the secondary market, but that is still not full information.
(5 months, 2 weeks ago)
Lords ChamberI thank the noble Lord, Lord Leong, for that point. This is not an assessment that the Government have undertaken; it is the responsibility of Companies House. With more data now available following our reforms, the registrar will be able to undertake this research. I would say, however, that this is a sector where there will be relatively high turnover. A lot of these are social businesses with very limited amounts of capital; some are experimental and it is absolutely right that they behave like companies, with the element of success or failure. Ultimately, the number of CICs is growing every year, in significant compensation for those that are being dissolved, and we are very pleased to see that.
My Lords, the rules allow for 35% of a CIC’s distributable profits in one year to be paid out in private dividends. What figures do the Government have on the average amount across the sector that is being paid out in dividends, and how is that monitored?
(6 months ago)
Lords ChamberI think everyone on all sides of the House agrees with the noble Baroness that we owe a great deal of gratitude to those who work in the social care sector. It is a fact that a lot of them are on lower wages and we would like them to be paid more, but at the end of the day we now have 10% of the workforce on a national living wage that underpins their prospects, and it is now the responsibility of businesses and employers to increase the training and skills of our workforce so that they can earn more in the market.
My Lords, my question follows on from the Minister’s answer to the noble Lords, Lord Woodley and Lord Leong. The Minister spoke about young people being scarred by periods of unemployment, but just imagine trying to live on £6.40 an hour for an under-18, which is what it is going up to in April, or £8.60 an hour for 16 to 20-year-olds. Does the Minister not think that young people are being scarred by the inability to afford healthy food or decent accommodation, or indeed to live any kind of life, while struggling to survive? Their costs are no lower than anyone else’s. Surely they should be paid enough money to live on.
I thank the noble Baroness for that. The ambition that we should all share is for everyone to have rising wages as they improve their skill levels and for our young people to get meaningful jobs out of school that allow them to be trained and earn more as they progress in their career.
(6 months, 3 weeks ago)
Grand CommitteeMy Lords, I have Amendment 131 in this group. It is my understanding, and of course the Minister may correct me, that the investment that a student makes in their university course comes under the Bill—that the relationship is one between consumer and provider. Indeed, since this is the largest purchase that a student will make before they buy a house, it seems entirely appropriate that the sort of safeguards in this Bill should apply to university courses. If that is the case, then paragraph 29 on page 362 forbids universities marketing their courses to children, and that does not seem quite right. I would like to understand how the Government see the confluence of those two factors.
My Lords, I rise to speak briefly on Amendment 133 in the name of the noble Baroness, Lady Jones of Whitchurch, to which the noble Baroness, Lady Kidron, and I have attached our names. I express support in passing to the attempts to restrict fake reviews, which are clearly an absolute plague online and a cause for considerable concern. I, like many other consumers, very much rely on reviews these days. I am also interested in the amendment of the noble Lord, Lord Lucas. I very much oppose the whole structure by which students are regarded as consumers. The Green Party’s position is that education is a public good, which should be provided for free, but his point raises some interesting questions, on which I would be interested in the Minister’s answers.
Amendment 133 is about so-called drip pricing. I found various government surveys producing different figures on the cost of this to consumers, ranging from £1.6 billion to £2.2 billion each year. We are all familiar with this, unsurprisingly, given that more than half of entertainment providers, transport providers and communications businesses use this as a regular practice: “Get this bargain price. Get in now. Click here: it will cost you only £10”. Mysteriously, as you go through the process, the price keeps going up and up. People fill in all the steps in the forms, fill in their names, tick to say that they have read the terms and conditions—even though they have not—and spend all that time and energy, but suddenly the price is three times what it started as. They feel as though they have spent all that time, so it is worth going hunting around again? Do they have that time?
What we are seeing is very much a change in what might have been considered service businesses; consumers are instead servicing them, with their time, energy and efforts. This is an important area, on which people need transparency. In the cost of living crisis, it is worth noting that so-called budget airlines are particular offenders. Most people think, particularly for a long-distance journey, that luggage is not an optional extra, not to mention that a family travelling should not have to pay extra for seats together. Amendment 133 is a particularly important amendment and I look forward to the Minister’s response.
My Lords, my noble friend has added her name to that of the noble Lord, Lord Clement-Jones, on his Amendment 130. We share his concern that online marketing should not be used to promote products or services by mimicking particular brands. In some ways, it is much easier to fool consumers online into thinking that a particular product has the same characteristics and spec as a branded product. As the noble Lord argued very well, we are all familiar with how cheaper and sometimes inferior products on the shelves are designed to mislead the purchaser. This simple amendment is worth supporting for that reason alone.
I was thinking back to an incident not that long ago, when I was misled into buying a product like Lemsip, simply because the colour of the packaging was almost identical. It was so simple and easy to take the thing off the shelf and put it into the basket but, when I got home, the product was inferior. This is about not just price but quality. This amendment is well worth our support.
Amendment 131 from the noble Lord, Lord Lucas, asks an important question. It is a niche issue for this legislation, but I am nevertheless looking forward to hearing the Minister clearly explain that universities can or cannot continue to market themselves to pupils and parents. All parents, along with their children, want to receive accurate information that is easily accessible and, more importantly, verifiable so that informed choices can be made. As the noble Lord argued, this is one of the more expensive areas of parents’ expenditure on their child’s education and it is only right that we set high standards for the content of the material that is made available to those making applications, and that it is verifiable.
I now turn to Amendments 132, 133 and 144 in the name of my noble friend Lady Jones. Amendments 132 and 144 should be taken together. They would insert into Schedule 19, which deals with commercial practices, the circumstances considered where there is an unfair reference to the marketing of a counterfeit or dangerous good and would empower enforcement officers to require the removal of relevant listings from the internet. We think that this is a fairly self-explanatory process, which should provide protection for consumers from shoddy goods. If the Minister insists that this is not the place for these amendments, perhaps he can explain how else consumers are to be protected and how else this false marketing is to be tackled.
I want to persist a bit more on that. We are now almost at the end of Committee, and Report is probably two or three weeks away. That is not a lengthy period in which to get the drafting right and for us to have that discussion, so I ask that we get a really early draft of these amendments. The wording is important and that will help my noble friend Lady Jones to form a view about whether it covers what we are after here.
This is of great concern to many consumer groups, so it is important to publish and make it publicly available so that people are able to examine, think about and get legal advice on it. It is not just the people in this Committee but broader society that really needs to have the chance to input into this crucial issue.
I thank both noble Lords for those interventions. I am happy to get this to noble Lords as quickly as possible. The whole point of the consultation is to allow consumer groups, which are very vocal on this issue, to be heard, and they have already fed into the process, but I take the point about expedition.
I thank the noble Lord, Lord Clement-Jones, for his Amendment 130 on product packaging. It seeks to legislate against traders potentially copying packaging or other reference material in order to mislead consumers into thinking that the product in question is from the original manufacturer or mislead them about the specifications or characteristics of the product. I thank the noble Lord for giving us a number of examples, which we can all recognise. I agree with him about the importance of ensuring that consumers are not misled.
However, we believe the concerns underpinning this amendment are already addressed through the prohibition on misleading actions in Clause 224 and the banned practice in paragraph 14 of Schedule 19 to the Bill. These prohibit promotions that mislead consumers into thinking that they are purchasing a product or service from a particular manufacturer when they are not. The provision in Schedule 19 achieves what this amendment seeks to do and applies equally to all products and services. Should a trader try to copy another well-known product’s packaging, this would be deliberately misleading to the consumer looking to purchase a product, as currently set out in the banned practice in paragraph 14 of the Schedule and Clause 224.
The noble Lord, Lord Clement-Jones, referred to previous CMA work on this issue. I am pleased to say that there is currently an in-depth CMA study of the grocery section, which has already spurred government action on price labelling rules. The study continues and I would expect it to pick up poor practices of the sort he highlighted. The noble Lord also made an important point about the importance of effectiveness. The additional powers given to the CMA and the courts under Part 3 aim to achieve just that. I hope he will feel comfortable in withdrawing his amendment.
I thank my noble friend Lord Lucas for his Amendment 131, which seeks to exclude universities from the currently banned practice of advertising that includes a direct appeal to children to buy products or to persuade their parents or other adults to buy products for them. This schedule replicates the banned practice in paragraph 28 of Schedule 1 to the Consumer Protection from Unfair Trading Regulations 2008.
There is no evidence that these regulations, which have stood since then, have prevented universities or similar institutions from providing information on themselves or the courses they offer. The banned practice in question is unlikely to stop universities or other providers advertising their courses. However, to ensure that there is no misunderstanding, further information on application can be clarified in a non-statutory way, such as through the guidance that will be issued for the Bill. The noble Lord, Lord Bassam, also pointed out the importance of universities providing accurate information. This is an area where there has previously been enforcement action, which highlights the importance of it being within the scope of consumer law. I hope that my noble friend Lord Lucas will feel comfortable not moving his amendment.
(6 months, 3 weeks ago)
Grand CommitteeMy Lords, it is a real pleasure to follow the noble Baroness and agree with every word that she said. I particularly applaud the specificity around software and hardware becoming obsolete by software not being maintained by the manufacturers who, in effect, make obsolete well before its time the hardware that sits alongside that.
I rise to speak to my Amendment 201. In many ways, the only build I would put on what the noble Baroness has said is around expanding to broader sectors the whole concept of right to repair. Perhaps before my time, or perhaps not, there used to be a symbol, a mark of quality, on many products: “Made in Britain; built to last”. That can go well beyond these shores, but it is not a bad line to consider when we think about right to repair.
All that my Amendment 201 seeks is for products to have their proper, natural and appropriate life cycle. We are in the middle of an environmental emergency, with difficult macroeconomic headwinds and a cost of living crisis. Right to repair speaks to all these issues. In no sense is it the silver bullet, but it is an important part of what we can practically and effectively and should do. It is not increased, burdensome regulation; it is taking a very British approach to a particular problem and with very little difficulty solving it within this Bill.
Amendment 201 proposes changing the Consumer Rights Act 2015 by inserting a right to repair so that, before a purchase is made, information must be provided on the repairability of a good, including whether it has been produced with repairability in mind, whether there are spare parts and how to access them, and the likely cost involved. Similarly, in situations where repairs can be performed safely by the purchaser, the information required includes whether information exists on how to do so, and, if so, how the purchaser can get their hands on it. It is straightforward and it makes economic, environmental and social sense.
To echo what the noble Baroness said, it is—this is positive—a particularly British way of going about things. We can cut those piles of unnecessary electric waste, change how technology operates and have a positive impact across so many sectors of our economy, positively benefiting our society. I look forward to the Minister’s response; this would be a good amendment to accept.
My Lords, it is a pleasure to follow the noble Lord, Lord Holmes; I agree with the intent if not exactly the detail of his amendment—I will come back to that. It is also a great pleasure to take part in the debate on this group of amendments, so ably introduced by the noble Baroness, Lady Jones, and following the powerful arguments presented by the noble Baroness, Lady Hayman. As at Second Reading, much of what she said about right to repair is exactly what I would have said, so I will not say it again; I will just cross-reference her speech, as I did at Second Reading on the same subject.
I have attached my name to Amendment 109 in the name of the noble Baroness, Lady Jones, as well as her Amendment 134 on greenwashing. Had there been space, I would also have attached my name to the amendments on right to repair. The noble Baroness, Lady Hayman, and I have been having a little race in various groups.
I start with Amendment 109. It is worth reflecting for a moment on the fact that, as a country, we have legally binding climate and emissions targets. The Committee on Climate Change has been awaiting a new chair for 18 months—reports suggest that at least two Members of your Lordships’ House are in line for that and waiting to find out their fate—and its chief executive has just stood down. Despite all that, it put out a statement yesterday—handily, given the timing of today’s Committee—stressing strongly that, following COP 28,
“the obligation on every country is now to push even harder”
on climate action. It said that the UK needs
“even greater domestic climate ambition to reinforce the UK’s international standing”—
something that the Government are often concerned about. Crucially, it noted
“a significant delivery gap to the UK’s Nationally Determined Contribution (NDC) of reducing emissions by 68% by 2030”.
The independent Committee on Climate Change is saying that we are not doing enough, what we have now is not sufficient and we are not meeting the international obligations that we have signed up to. It is in that context that we need to look at Amendment 109, which could be hugely powerful. We are talking about commercial practices failing to protect consumers in the promotion and supply of goods and services by digital means. This relates to the detailed discussion we had on the previous group of amendments about flights and package holidays and the ways in which they are promoted and people are given information about their environmental impacts.
Since our conference in Brighton last autumn, the Green Party has been calling for a ban on high-carbon advertising. The noble Baroness, Lady Jones, may not entirely thank me for this, but I suggest that this amendment, in essence, implies a ban on high-carbon advertising. For the avoidance of doubt, this is a suggestion not that we should stop anyone flying or taking any action that they need to, but about whether we should allow expensive, continual bombardment—on the internet, from digital screens everywhere we go, on public transport and from every quarter—to purchase things that we might not otherwise have purchased.
My Lords, before the Minister sits down, I come back to his response to Amendment 109 about not meeting our net-zero targets. I can probably paraphrase what he said as, “It’s all fine here and everything’s on track”. How would he align that with the statement from the Committee on Climate Change yesterday that there are significant delivery gaps for our NDCs for 2030?
I thank the noble Baroness for that. This is not a perfect science. We are on a journey to net zero and will get there by 2050. We have been very clear on the milestones that we need to hit along the way. As far as the UK is concerned, there is absolutely no going back on our commitment to hit that target, but it is a transition, and it will take a generation. I am very clear that we will get there.
(6 months, 3 weeks ago)
Grand CommitteeMy Lords, these regulations were laid in draft before the House on 11 December 2023. They are being introduced using powers inserted into the Employment Rights Act 1996 by the Protection from Redundancy (Pregnancy and Family Leave) Act 2023. I was pleased to note that the latter, as a Private Member’s Bill, attracted support from all sides both here and in the other place. I thank the noble Baroness, Lady Bertin, and Dan Jarvis MP for bringing that important Act forward.
According to research published in 2016 by the then Department for Business, Innovation and Skills and the Equality and Human Rights Commission, one in nine mothers reported that they were dismissed or made compulsorily redundant where others in their workplaces were not, or treated so poorly that they felt they had to leave their job. If scaled up to the general population, that could mean as many as 54,000 mothers a year. Although that data is from some time ago, we know that the problem persists.
Under the Maternity and Parental Leave etc. Regulations 1999, which we call MAPLE for short, redundancy protections are already in place for a mother on maternity leave. These regulations put a mother on maternity leave in a preferential position in a redundancy situation. There are parallel negotiations that have the same effect for parents taking adoption leave or shared parental leave. Under MAPLE, before making an employee who is on maternity leave redundant, employers have an obligation to offer them a suitable alternative vacancy if one is available, not just to invite them to apply for one.
The regulations we are debating will extend that existing redundancy protection so that it is available during pregnancy and for a period after returning to work from relevant parental leave. That is maternity, adoption and shared parental leave. This will help to address the issues that the research identified. We hope it will alleviate some of the anxiety about job security that a pregnant woman or new parent may face.
The new regulations will amend the existing regulations covering relevant parental care. This means that MAPLE-type protections could be in place from the point when a woman tells her employer she is pregnant and continue for 18 months after the birth of the child, which will include the period of relevant parental leave.
The 18-month protection period has two main purposes. First, it ensures that a mother returning from 12 months of maternity leave will receive six months’ additional redundancy protection when she goes back to work. This meets the commitment that the Government made in the consultation response. Secondly, a single, consistent and clear period of protection is a simple way of accommodating the flexibility of shared parental leave, as well as the interaction between it and other types of parental leave. Creating a bespoke approach for these and other scenarios would have introduced considerable complexity into the regulations, which is why we have opted for the simplicity and clarity of a single period of protection.
The period of protection from redundancy on return to work is activated immediately when someone returns to the workplace following a period of maternity or adoption leave. However, the regulations introduce a minimum qualifying period for those taking shared parental leave alone; by “alone”, I mean that they would have previously not taken a period of maternity or adoption leave. This is to avoid the situation where a parent who has taken just a few weeks of shared parental leave receives 18 months’ additional protection in a redundancy situation.
When we spoke with the stakeholders, they considered that it would be disproportionate to extend this level of protection to someone who had taken only a short period of shared parental leave. For this reason, the regulations require a parent to have taken a minimum period of six continuous weeks of shared parental leave to activate the additional redundancy protection once they have returned to work.
These measures will provide valuable support and protection for pregnant women and parents after parental leave. The Government are pleased to have supported the Private Member’s Bill and have delivered these regulations.
My Lords, I rise briefly in an unusual situation. We Greens in your Lordships’ House are sometimes accused of not giving the Government credit where it is due, but I want to congratulate the Government on this statutory instrument and applaud the progress that is made in it.
We should also applaud the fact that behind this has been a huge amount of campaigning of public concern. I note that the charity and campaigning group, Pregnant Then Screwed, which took four awards at the Third Sector Awards last year, has been campaigning on these issues for a very long time and is making real progress. This is a real demonstration that campaigning works; we have seen something happen here, so I can only congratulate the campaigners and the Government on this.
I want to put a couple of questions to the Minister. What are the Government going to do to ensure that employers and employees know about this change in the law? What kind of publicity campaign will there be? The Minister referred in his introduction to the fact that the figures that the Government were relying on were quite old. Are there plans to update and take assessment both of the current situation and of what happens in the months and years after this statutory instrument comes into effect? What reporting back will there be to the House and the other place so that we can continue to monitor this important area, given that it is important to individuals and households, but also important to ensure that people are able to remain in the workplace?
My Lords, this is the second time that we are meeting across the Dispatch Box. If it continues, people will start talking. I thank the Minister for the overview and explanation of this statutory instrument, which builds on the Protection from Redundancy (Pregnancy and Family Leave) Act 2023. I fondly remember the debate on this Bill last spring. It was the first time I had the honour of speaking from the Front Bench in the main Chamber. Not only did the noble Baroness, Lady Bertin, praise the work of the TUC in the development of this legislation but we agreed to have a massive group hug.
Pleasingly, almost exactly nine months after this group hug, are now delivering additional legislation through this statutory instrument. It provides similar rights in a redundancy situation to pregnant women and new parents who have recently returned from a period of maternity, adoption or shared parental leave lasting six weeks or more. Additionally, the protection will now start when the employee tells the employer about the pregnancy.
This legislation is supported by my friends and colleagues in the trade union movement. In fact, some of these measures were discussed in the preparation of the Bill last year, which, at the risk of disrupting this very collegiate atmosphere, I remind noble Lords was a Private Member’s Bill from my friend, the honourable Member for Barnsley Central.
As supportive as we are of this change, it does not come without implications for employers, especially those who may be considering restructuring shortly after the instrument comes into effect on 6 April, as mentioned by the noble Baroness, Lady Bennett. What steps are the Government taking to make sure employees are prepared? Additionally, is there any additional monitoring for the implementation period where employees may not be abreast of the new law?
Among other possible difficulties with implementation, women may now feel under pressure to inform their employer of their pregnancy very early if there is an impending redundancy exercise. What consideration have the Government given to this likelihood and potential steps to help protect women from this? Another potential difficulty comes from the notification requirements and record keeping. The regulations are not clear as to the form of the notification required. Can the Minister shed any light, or would this be a matter for the courts? Would oral notification suffice, and what would then happen if accounts varied?
Since 2019, we have been promised more than 20 times an employment Bill that will
“protect and enhance workers’ rights as the UK leaves the EU, making Britain the best place in the world to work”.
Will the Minister finally accept that this long-promised Bill is a mirage and will not be delivered? I look forward to his responses to our various questions. Other than that, we are very supportive of these regulations.
(8 months, 3 weeks ago)
Lords ChamberAs an amendment to the motion in the name of Lord Johnson of Lainston, to leave out all the words after “that” and to insert “this House declines to approve the draft Code of Practice on Reasonable Steps to be taken by a Trade Union (Minimum Service Levels) because it exposes trade unions to liability of up to £1 million, makes trade unions act as enforcement agents on behalf of employers and His Majesty’s Government, reduces the rights of workers to withdraw their labour, introduces legal uncertainty, and breaches international labour commitments.
My Lords, the House is colloquially calling this a “fatal amendment”. I know there are many people watching this debate who may not regularly watch your Lordships’ House, so I will define it as saying, “This House declines to approve the draft code of practice”. That is what is happening here.
In speaking to my amendment, I am picking up the baton on this subject from my noble friend Lady Jones of Moulsecoomb, who worked on the legislation. She is currently enjoying an extremely well-earned short break. That is a right to decide not to come to work that Members of your Lordships’ House can exercise with total freedom but which these regulations, the code and the legislation behind them seek to deny to millions of workers.
My Lords, I greatly thank all noble Lords who participated in this debate. I hope to clarify some key points, which are well labelled on the Government’s website and in the code.
I begin by thanking my noble friend Lady Noakes for her comments. This is a code, not a law. The whole point about this code is to enable unions to know how they can safely operate once they have taken reasonable steps to ensure that minimum service levels have been applied. The noble Lord, Lord Cromwell, mentioned that I came from a business background. He is correct and, from my point of view, this will provide welcome clarity to enable us to operate effectively. It does not impose anything or any type of activity: it simply makes recommendations. If you look at the concepts such as the template, that is the recommended template. It is not necessarily the template by which unions will have to operate. I would have thought that it would be very helpful for unions to have a template construction in that way to enable them to feel safe when they are communicating with their members.
I wish to raise something that I consider most valuable when debating this point and this code. Minimum service levels, as operated by the Act and structured by a useful guide such as this code, really—in my view and in the view of the Government—should be the last resort. The noble and learned Lord, Lord Thomas, made apparent the crucial point that it is through collaboration with employers, businesses and unions that we will have strong relations. The noble Lord, Lord Fox, also made that point. The timelines imposed by the Act and referred to in the code are quite short, but are designed to fit within the strike legislation, enabling a 14-day announcement of a strike, a seven-day turnaround for the work notices, and then further days to refine that.
The theory is that the employer and the unions will have done a great deal of work to prepare for the scenario so that effective work notices can be issued. It is not unreasonable for an employer and a union to be expected to collaborate very closely to ensure that this process can be as smooth as possible. At no point does this code, in any way, derogate the right to strike. It gives vital clarity on the relationship between the union and the employer. It actually goes further than that: it protects the rights of unions and the rights of the union members, so that they know where they stand.
A number of noble Lords raised points about reasonable steps, and they are just that. This has been quite well clarified by previous discussions in the sense that, so long as the union can prove that it has taken reasonable steps to ensure that the work notices are properly served and communication has taken place and that workers are not prevented from attending a work site, it can consider itself relatively safe when it comes to the process that may be placed on it in the courts by an employer. That is the whole point of the code: to make the unions feel safer and to ensure that an act around a strike can be properly orchestrated.
In conclusion, I ask for the support of this House. What we are discussing here is a code that will enable a great degree of welcome clarity and was called for by all sides on this debate. There have been a number of consultations to which the Government have responded, making changes to the code to bring to bear some of the very sensible points that were raised to ensure that it is reasonable, practical, fair and clear. It balances the unions’ and individuals’ rights to withhold their labour, while crucially providing minimum service levels so that the public can go about their business and the economy can sustain itself.
My Lords, we have had a very strong debate. I do not think the Minister answered my direct question about when, if your Lordships’ House allows this through, it will come into operation. Perhaps he could answer that now.
I said at the beginning of my opening remarks that it will come into effect once it has been laid, so in the next three days.
I thank the Minister for that information: it is useful for the world to know that we will be facing this situation in three days’ time.
We have had a useful debate: this code of practice and all these statutory instruments that we are debating today have been very thoroughly critiqued. The noble Lord, Lord Hendy, made a powerful statement about the way in which the UK is, yet again, placing itself beyond the international pale in terms of norms and legal standards.