Baroness Bryan of Partick debates involving the Department for Business, Energy and Industrial Strategy during the 2019 Parliament

Tue 22nd Mar 2022
Subsidy Control Bill
Lords Chamber

Lords Hansard - Part 2 & Report stage: Part 2
Mon 31st Jan 2022
Subsidy Control Bill
Grand Committee

Committee stage & Committee stage
Mon 19th Oct 2020
United Kingdom Internal Market Bill
Lords Chamber

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tue 29th Sep 2020
Trade Bill
Grand Committee

Committee stage & Committee stage:Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tue 8th Sep 2020
Trade Bill
Lords Chamber

2nd reading (Hansard) & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords & 2nd reading
Tue 23rd Jun 2020
Corporate Insolvency and Governance Bill
Lords Chamber

Report stage (Hansard) & Report stage (Hansard) & Report stage (Hansard): House of Lords & Report stage
Tue 16th Jun 2020
Corporate Insolvency and Governance Bill
Lords Chamber

Committee stage:Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords & Committee stage

TRIPS Agreement: Vaccines

Baroness Bryan of Partick Excerpts
Monday 11th July 2022

(1 year, 8 months ago)

Lords Chamber
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Lord Callanan Portrait Lord Callanan (Con)
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It is making sacrifices. I agree with the noble Baroness about the sacrifices that have been made, but if we want big pharma and the private sector to invest, then we need to preserve the intellectual property regime, because next time it will require billions of pounds of investment, production and research. That is best achieved by preserving the intellectual property regime, but we need to make sure that developing countries have access to these vaccines, which we have done. Many of these countries do not have the facilities, the knowledge, the expertise or the know-how to produce these vaccines.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab)
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My Lords, developed countries have been accused of aligning themselves with the narrative of the pharmaceutical industry. Does the Minister accept that the development of these vaccines was not dependent on the innovation of the private sector, but rather came out of public investment and research? Can he explain why these companies were allowed to influence these vital discussions?

Lord Callanan Portrait Lord Callanan (Con)
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The noble Baroness is partly right; of course, there was substantial public research, but we needed the facilities in the private sector to help with the development, production and distribution of those vaccines. It was a partnership. The House is eager to criticise big pharma, but AstraZeneca produced all these vaccines at cost and donated many of them to the third world; it has done a fantastic job, for which we should be grateful.

Subsidy Control Bill

Baroness Bryan of Partick Excerpts
Lord Bruce of Bennachie Portrait Lord Bruce of Bennachie (LD)
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My Lords, I support the second part of the amendment tabled by the noble and learned Lord, Lord Thomas, on the point about equality. There is a poll out today which says that the majority of people in Scotland do not expect the union to survive for the next 10 years. I think and hope that they are wrong, but it is indicative of how serious this issue is and that it is really important that not only the law but the Government’s approach recognises the need to accommodate equality of treatment between the devolved Administrations and the UK Government. The noble and learned Lord’s amendment puts that quite clearly, and the Government should take it seriously.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab)
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My Lords, I too support Amendment 55. I travelled from Scotland this morning to support it, so I hope that despite the late hour, your Lordships will bear with me.

On the devolved Governments, this is yet another very modest amendment and provides the very minimum recognition that devolved Governments have responsibility for important areas of their economies and should have the right in relation to call-in and enforcement.

I thank the Minister for his letter of 15 March with the update on the Bill’s progress. I do not think that anyone was surprised to read that, despite what he terms the Government’s best efforts, they have not been able to secure the legislative consent Motions. However, I was very sorry to read that the Government have decided to proceed without them. The Minister wanted to emphasise the Government’s determination to continue working collaboratively and transparently with the devolved Administrations, but both the Scottish and Welsh Governments do not believe that there has been a strong attempt to work collaboratively. Instead, they feel that they have been told rather than consulted.

The explanation given in Committee by the noble Baroness, Lady Bloomfield, in her closing comments on the set of amendments dealing with devolution, made it clear that the Government believe that they have every right to override the concerns of devolved Governments on the grounds of the UK Parliament’s status as

“the supreme legislative body of the United Kingdom”,

believing that it is merely

“a reflection of constitutional reality.”

She also stated that she simply did not believe that

“it is appropriate to require the Secretary of State to seek consent even when the Secretary of State may ultimately proceed without that consent on a reserved matter.”—[Official Report, 31/1/22; cols. GC 115-117.]

This issue is at the heart of the problem that this amendment tries, in some small way, to deal with. As has been mentioned, the Secretary of State is acting for what the Minister describes as the “supreme legislative body” but at the same time is representing the interests of England.

Speakers in Committee described this as lacking justice and being unfair. The Minister did not answer on this issue in Committee, nor was it referred to in his letter. We hope that we will find out in due course whether the review of intergovernmental relations will make a real difference. While the UK Government show so little understanding of and lack of esteem for the devolved Governments, it is hard to imagine that there will be a significant change. I hope the Minister can give some reassurance that the Government will reconsider allowing the role for devolved Governments outlined in Amendment 55 as, if they do not recognise the legitimate concerns of the devolved Governments, I fear it will contribute to the break-up of Britain, as the noble and learned Lord, Lord Thomas, and the noble Lord, Lord Bruce, warned.

Lord Wigley Portrait Lord Wigley (PC)
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My Lords, I will detain the House for only a moment as it must take for read my feelings on the devolved questions which we have threshed around so much. I want to put on record how much I and, I hope, the House appreciate the contribution of the noble and learned Lord, Lord Thomas of Cwmgiedd, not only to this debate and earlier debates but for his work in Committee. That he is willing at this stage of his distinguished career to put hours of work into an amendment such as this demands that the Government take notice. He has raised serious points in a professional manner. If the Government cannot respond positively to them now, there is still a chance for amendments to come forward at Third Reading to take on board the points that he has made so eloquently.

Subsidy Control Bill

Baroness Bryan of Partick Excerpts
Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab)
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My Lords, I too support this group of amendments.

I recognise that some aspects of the Bill should be welcomed. It has the potential to produce a more flexible and responsive system. The ability to streamline could make a crucial difference to local economies. What is concerning about the Bill is that the devolved Administrations are treated as having the same role in their economies as that of local authorities. It fails to recognise that each has a strategic responsibility for their national economy. Despite the Minister’s assurance that

“the Government have worked closely with the devolved Administrations, including sharing the consultation response document ahead of publication and carefully considering their representations”—[Official Report, 19/1/22; col. 1711.]

the devolved Administrations disagree and feel that they have been told rather than consulted.

The Scottish Government argue that the Bill should give Scottish Ministers the same powers as the Secretary of State has over matters such as referring subsidies to the Competition and Markets Authority, making streamlined subsidy schemes, and providing subsidies in response to natural disasters and other emergencies. The Welsh Government are concerned by the powers being given to the Secretary of State to shape the regime in future, with little scrutiny by the UK Parliament and none by Welsh Ministers or the Senedd. Both Governments agree that this legislation undermines powers which are fundamental to their ability to shape their own economies and industrial development.

People in Scotland and Wales view their devolved Governments and Parliaments as being responsible for the economy of their country. When they voted in last May’s elections, they chose to vote for policies that were different from those of the UK Government. My worry is that this Government want to turn back the clock to pre-devolution times.

Having looked closely at the Minister’s response at Second Reading, and the concerns raised about the exclusion of the devolved Administrations from some of the powers given to UK Ministers, I could find no explanation for why this should be the case. I hope the Minister will give a clear reason why these Parliaments and elected Governments should not have similar powers to those that the Bill awards to UK Ministers.

Baroness Jones of Moulsecoomb Portrait Baroness Jones of Moulsecoomb (GP)
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My Lords, these amendments, which I fully support, allow the Senedd Cymru and the Scottish Parliament actually to decide issues for themselves. The legislation itself is deeply annoying because this should be standard in every Bill. I do not understand why the Government keep leaving it out.

In the Scottish independence referendum, the people of Scotland were promised devo-max. They received no such thing and then Brexit came along and gave this Government an excuse to steadily unpick devolution and centralise power in the UK Government. This is evidenced by Clause 1(7), which allows the UK Parliament to legislate contrary to the Bill but does not allow the devolved Parliaments any similar power. I simply do not understand that.

I will support these amendments if they come back on Report. I hope by then the Minister will understand that this should be in every single Bill. It should not be fought over every time. We do not want constant battles in Parliament to enact the devo-max that Scotland was promised. So please let us get some movement on this and actually make it fit for purpose.

Net-zero Emissions Target: Fossil Fuel Extraction Projects

Baroness Bryan of Partick Excerpts
Wednesday 3rd November 2021

(2 years, 4 months ago)

Lords Chamber
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Lord Callanan Portrait Lord Callanan (Con)
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The Cambo oil field is, of course, the subject of a licensing application at the moment. This is not a new development. The original consents were issued in 2001 and 2004 by the previous Labour Government. We are waiting for the Offshore Petroleum Regulator to take a decision, and then the Oil and Gas Authority will take a further decision. But I return to my previous point. We still import large amounts of oil and gas. It makes no sense to not produce it domestically if we can and then import it from Russia or Saudi Arabia. We need to decline our usage over time, and we are doing that. But in the transition, we do need oil and gas.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab)
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My Lords, may I continue to explore the issue of the Cambo oil field? I hope that the Minister can help clear up any confusion. The Secretary of State for Scotland has said:

“100% we should open the Cambo oil field.”


The president of COP 26 has refused to be drawn on the issue. The Government have both denied and confirmed that the Business Secretary has the power to give the go-ahead or to stop it. Boris Johnson has told us that we are at one minute to midnight in combating climate change. Can the Minister confirm that proceeding with the Cambo field would be incompatible with the UK’s climate goals? If he cannot do that, can he explain how it will be compatible?

Lord Callanan Portrait Lord Callanan (Con)
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It is indeed compatible with our climate change goals. The proposed development of the Cambo oil field, located to the west of Shetland, is covered by licences originally awarded in 2001 and 2004 by the noble Baroness’s Government, and no decision has yet been made. Proposals for the development of oil and gas fields under existing licences—such as Cambo—are subject to extensive scrutiny by the regulators. That scrutiny includes a full environmental impact assessment and a public consultation. No final decision has yet been made.

Covid-19: Vaccine Production

Baroness Bryan of Partick Excerpts
Thursday 17th June 2021

(2 years, 9 months ago)

Lords Chamber
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Lord Callanan Portrait Lord Callanan (Con)
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I am afraid that I do not agree with the noble Baroness. We are working with industry, the COVAX Manufacturing Task Force and the ACT-A Vaccine Manufacturing Working Group to champion other routes to scale up capacity and engage on forward supply chain planning in order to accelerate and progress vaccination programmes across the world. We think that is the best way forward.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab) [V]
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Ensuring accessible and affordable Covid-19 vaccines across the globe is a human rights duty that requires international co-operation. Can the Minister give details of government support for the WHO Technology Access Pool, and have the Government ensured that the intellectual property in respect of vaccines developed with the support of public funding has been deposited with C-TAP, in order to scale up production in countries that have untapped capacity?

United Kingdom Internal Market Bill

Baroness Bryan of Partick Excerpts
Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab) [V]
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My Lords, I congratulate my noble friend Lady Hayman of Ullock and the noble Lord, Lord Sarfraz, on their maiden speeches of excellent quality. It is really good to have two younger Members join us. I must also congratulate the Government on doing so much to bring about harmony. They have managed to unite so many speakers in this Chamber and all but one of the parties in the Scottish Parliament, to name just two groups.

One of the purposes of this Bill is to enact the political ideology of the ruling faction of the Conservative Party, which demands that unfettered access of business across the UK should be able to overrule any democratically decided public policy goals. BEIS’s own impact assessment makes it clear that market access principles will reduce the ability to pursue targeted social and environmental policy objectives. We were told that Brexit would result in the return of powers to the devolved Administrations, but instead significant powers have been retained by Westminster. This Bill goes even further, as it will take away existing powers.

The noble Lord, Lord Callanan, as I understood him, said that industry subsidies had never been devolved, but Part 7 of the Bill amends Schedule 5 of the Scotland Act 1998 to eliminate state aid from the devolved powers that have rested with the Scottish Parliament for over 20 years. This happened without negotiation and with only the most cursory consultation.

The so-called level playing field is far from fair. How can it be when the players on the field are of massively different size and strength? It would be the equivalent of a football match between Chelsea and Partick Thistle. The big firms in the large countries flourish; small firms in small countries struggle. The Bill does not establish independent arbitration or dispute resolution. Once again, the UK Government will act as both participant and final arbiter and will, as usual, find in their own favour.

This legislation confirms what many of us already know: the current system of joint working between the UK Government and devolved Administrations is not fit for purpose. It does nothing to guarantee high regulatory standards. Instead, it creates incentives to lower standards. It prioritises the removal of potential barriers to trade at the expense of other public policy goals, such as health or the environment, regardless of the democratic decisions of the electorate in the devolved Administrations.

Andrew Bowie, Conservative MP for West Aberdeenshire and Kincardine, gave a stark warning in a recent newspaper article. He said,

“this Internal Market Bill, is just the start. The UK Government is back in Scotland. Get used to it.”

If ever a wedge would serve to divide the United Kingdom, this is it. We cannot in all conscience allow this dreadful legislation to be rushed through Parliament. We must ask the Government to think again.

Trade Bill

Baroness Bryan of Partick Excerpts
Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 29th September 2020

(3 years, 6 months ago)

Grand Committee
Read Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 128-II(Rev) Revised second marshalled list for Grand Committee - (29 Sep 2020)
Lord Fox Portrait Lord Fox (LD)
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My Lords, I shall speak to Amendment 6 in my name, but before that I want to speak more generally on Amendments 1 to 5. These all refer to Clause 1 and the UK’s future participation in the Agreement on Government Procurement. It should be noted that the GPA has been an important form of market access that has come with our membership of the European Union. As the Minister and others have said, it opens up the possibility of access for UK companies to about £1.3 trillion of government contracts. One would expect Her Majesty’s Government to talk up this side of the equation.

The expectation is that the UK will enter the GPA at the end of the year, and I understand that the Government are seeking more or less to reproduce the access that we have enjoyed thanks to our European Union membership. Perhaps the Minister can give us an update on the timetable and whether there may be any changes to the terms that we might expect of the GPA at the turn of the year.

As I said, the external element of GPA is extremely important, but the flipside of that external access is that international businesses have access to about £67 billion of public service contracts in the UK every year. As we heard from the noble Lords, Lord Lennie, Lord Hain and Lord Hendy, the noble Baroness, Lady Blower, and my noble friend Lady Burt, these amendments seek to establish comfort on the nature of those services in terms of their impact on society and how publicly procured contracts affect people. We are sympathetic to these aims. Of course, we will debate later further amendments with similar objectives covering the whole trade environment and not just GPA, because workers’ rights, the environment, food standards, protecting the NHS, the needs of small businesses and other vital issues are central to the trade agenda. There is no point in having international trade if it erodes standards for people who live in this country.

In his maiden speech at Second Reading, the Minister made it clear that there was no intention to water down terms and conditions, yet the Government seem reluctant to put any of those terms and conditions into the legislation. This makes people suspicious—it makes me suspicious. These amendments, or amendments that come later, would help alleviate our suspicions.

Amendment 6 would require the Government within six months of acceding to the GPA to lay before Parliament a report on what help they are providing to businesses in the UK so that they can secure the advantages of this market access. The Government paint a picture of “global Britain”, a nation sailing the high seas of international trade with swagger and elan. I am not sure that I wholly sign up to this particular view of the world, but the GPA is an opportunity for UK companies, and has been since 1996. The Minister also said at Second Reading:

“I should like to make it clear that this Government and I are committed to transparency”.—[Official Report, 8/9/20; col. 675.]


All the evidence points to his sincerity in this regard. In the interests of the transparency that the Minister espouses, Amendment 6, proposed by my noble friend Lord Purvis and I, simply asks for a report within six months on how the global Britain project is going with respect to the GPA. It would set out how Her Majesty’s Government are facilitating UK business taking advantage of the GPA. What actions have backed up the Secretary of State’s brio? For example, how have Her Majesty’s Government helped small businesses in the way just advised by my noble friend Lady Burt?

This level of transparency will have the benefit of reassuring people like me who fear that much of the language around international trade is just that: words. We want action; we want success. Human nature being what it is, our proposed six-monthly report would also help ensure that someone was actually doing something during that period.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab) [V]
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I am pleased to speak in support of Amendment 5. The Institute for Government puts UK government spending on procuring goods, works and services from external suppliers in 2018-19 at around £292 billion, which is more than a third of all public spending. This huge spending capacity should be used as leverage to ensure the highest standards of labour rights here in the UK and in countries with which we do business. The Trade Bill gives the Government the opportunity to advance this process.

This amendment and the later Amendment 18 ask the Government to permit public bodies to consider more than short-term concerns such as lowest price and to take into account the welfare of the workers who will carry out the contract, ensuring that acceptable standards of employment are applied by any successful bidder. The conditions suggested in the amendment are in no way onerous; they are the basic minimum standards as set out in the conventions of the International Labour Organization which have been ratified by the UK. As we are a founding member of the ILO and a country that has ratified the eight fundamental conventions, this would not be asking too much. The amendment simply expects that any trade deal should not undermine or restrict the ability of a public body to include in its tender that bidders should abide by these basic employment rights, covering: freedom of association; the right to organise and to free collective bargaining; following basic rules against forced labour and child labour; and outlawing discrimination.

Trade Bill

Baroness Bryan of Partick Excerpts
2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 8th September 2020

(3 years, 6 months ago)

Lords Chamber
Read Full debate Trade Bill 2019-21 View all Trade Bill 2019-21 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 20 July 2020 - (20 Jul 2020)
Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab) [V]
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My Lords, I add my congratulations to both maiden speeches made today. The Bill, along with legislation on agriculture, fisheries and the environment, and tomorrow’s Bill on the UK internal market, is throwing up questions about the UK’s constitutional settlement that will have to be addressed, not least for the people of Northern Ireland, who must feel they are being used as bargaining chips.

At some point soon, we will have to adjust our constitution to deal with the reality that, after 20 years of devolution, we have not resolved some basic questions of intergovernmental relations. Good trade agreements will be vital for the UK’s future, and to ensure widespread support we must have transparency, the ability to scrutinise and the meaningful involvement of the devolved Administrations.

The Constitution Committee said in its report on parliamentary scrutiny of treaties in April last year that tensions are “inevitable” but

“if problems with the inter-governmental machinery had been addressed at an earlier stage, some of them might have been ameliorated.”

Devolved competences must be respected, and the devolved legislatures should be able to undertake meaningful scrutiny of the treaties that will affect them. The best means of ensuring this is by the devolved Administrations’ participation in the negotiation. Does the Minister accept this? Will the Government stop acting as if devolution had never happened? Will they accept that we are a semi-federal and not a unitary state?

The devolved Administrations must be able to defend their economy, protect their environment and food standards, safeguard their health services and fulfil the commitments that they have made to their electorate. As the Bill stands, this is not allowed to happen.

Corporate Insolvency and Governance Bill

Baroness Bryan of Partick Excerpts
Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 23rd June 2020

(3 years, 9 months ago)

Lords Chamber
Read Full debate Corporate Insolvency and Governance Act 2020 View all Corporate Insolvency and Governance Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 114-I Marshalled list for Report - (18 Jun 2020)
Lord Kerslake Portrait Lord Kerslake (CB) [V]
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My Lords, I was pleased to add my name to Amendment 75 and congratulate the noble Lord, Lord Stevenson of Balmacara, on proposing it.

The Bill contains some important benefits for companies that get into difficulties, which will help them, help the economy and protect jobs. Insolvent companies or companies that are likely to become insolvent can obtain a 20 business day moratorium period that will allow viable businesses time to restructure or seek new investment free from creditor action.

A good company—sadly, good companies will be affected by the economic impact of Covid-19—would keep its workforce well informed and consult them as a matter of routine. However, we know that, in a period of duress, the employees are often at the back of the queue in finding out what is happening in their own company, even though they are likely to be significantly at risk—perhaps the most at risk—of redundancy, changes in terms and conditions or changes in pension as a consequence of subsequent restructuring, or indeed closure if no resolution can be found.

In these circumstances, the provision in this amendment will provide an important safeguard and reduce the risk of employees being left out of vital decisions and discussions that will affect their livelihoods. I really hope that the Government can see their way to supporting this amendment, or something very close to it.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab) [V]
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My Lords, I too speak in support of Amendment 75. Although it is much weaker than the original amendments, it touches on an important debate that is happening not just in the UK but in most of the developed capitalist countries about the status of employees in a company.

Nearly 30 years ago, two academics wrote a paper entitled “The End of History for Corporate Law”. As often happens with such pronouncements, they were premature. The authors assumed that shareholder capitalism was unchallengeable. It is now common to hear senior executives and influential economists extol the importance of moving towards stakeholder capitalism. The chief executive of Black Rock, Larry Fink, wrote recently about climate change but said that sharing data should go

“beyond climate to questions around how each company serves its full set of stakeholders, such as the diversity of its workforce”.

The Financial Times reported that a business round table of 151 US chief executives has revised its concept of “purpose of corporation”. They have renounced shareholder value and would instead lead their companies to the benefit of all stakeholders—customers, suppliers, employees and communities. Mark Carney wrote recently in the Economist that companies would be judged on how they treated employees, suppliers and customers, by who shared and who hoarded, and that the corona crisis was

“a test of stakeholder capitalism.”

He might have had in mind companies such as easyJet, which has sought state aid after cancelling most of its flights but went ahead with a £174 million dividend payout while asking employees to take unpaid leave and face substantial changes to their terms and conditions.

This amendment should be knocking at an open door. I am sure that noble Lords will want to accept it, and that what it calls for will become common practice before too long. It is a modest proposal that does no more than require a company to consult the representatives of its employees. I am sure that many of us would want to go further than that, and no doubt this is an issue that we will return to over the coming months and years.

Lord Hendy Portrait Lord Hendy (Lab) [V]
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My Lords, I too shall speak to Amendment 75. In precisely one week’s time, we will celebrate the 70th anniversary of the ratification by the United Kingdom on 30 June 1950 of Convention No. 98 of the International Labour Organization, one of the two most fundamental conventions in international labour law. It has not only been expressly ratified by 167 nations but is considered part of customary international law. Article 4 reads as follows:

“Measures appropriate to national conditions shall be taken, where necessary, to encourage and promote the full development and utilisation of machinery for voluntary negotiation between employers or employers’ organisations and workers’ organisations, with a view to the regulation of terms and conditions of employment by means of collective agreements.”


Another anniversary will be commemorated on 11 July, for on that day in 1962, as a member of the Council of Europe, the United Kingdom ratified Article 6 of the 1961 European Social Charter. The article reads:

“With a view to ensuring the effective exercise of the right to bargain collectively, the Contracting Parties undertake … to promote joint consultation between workers and employers … to promote, where necessary and appropriate, machinery for voluntary negotiations between employers or employers’ organisations and workers’ organisations, with a view to the regulation of terms and conditions of employment by means of collective agreements”.


This amendment does not seek the fulfilment of the Government’s obligation to promote collective bargaining on the consequences for workers in a company that is running into financial difficulties and the measures such as a moratorium to alleviate them, but it does require the fulfilment of the more modest obligation to promote consultation between workers and employers about such consequences. It is difficult to the point of impossibility to see what objection there could be to the imposition on directors of an obligation to hear from their workers—in this case their employees—their perceptions of and suggestions for ameliorating the company’s situation. Under the Companies Act, directors already have an obligation to take into account the interests of the employees, so it is really not asking much to require them to ask their employees to express their views.

Given that the biggest impact of the moratoria and other measures relating to a company’s financial difficulties will be on the workers whose livelihoods are on the line, why not hear their voices? They will be the most ardent and innovative in finding ways of keeping the company alive. Certainly, the Minister and his team have offered no objection to the principle or the practicality of this so far. All that has been said is that employees are already protected and that the courts have a duty to ensure that arrangements are fair and equitable.

The first point is hopeless. There is no extant legal obligation to hear the voices of workers, no obligation to bargain collectively, no obligation to consult save where collective redundancy procedures apply, and no requirement to have worker directors on the board. The second point is equally without merit. There is no provision for workers to be parties to, to be represented, or even to be heard in the specific court proceedings to which this Bill relates. Without hearing from representatives of the workers in respect of the measures being proposed, how can the court be satisfied that any measure is fair and equitable to them? I urge the Government to accept the amendment and to fulfil at least partly their international legal obligations.

Corporate Insolvency and Governance Bill

Baroness Bryan of Partick Excerpts
Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 16th June 2020

(3 years, 9 months ago)

Lords Chamber
Read Full debate Corporate Insolvency and Governance Act 2020 View all Corporate Insolvency and Governance Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 113-I Marshalled list for Committee - (11 Jun 2020)
Baroness Jones of Moulsecoomb Portrait Baroness Jones of Moulsecoomb (GP) [V]
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My Lords, in view of the time constraints, I will limit my comments to just two issues. The first is that Committee has been limited to an afternoon, which I think is absolutely appalling. It is all in line with the way the Government are reducing Parliament to a series of nods that they think they can control. I say to the noble Lord, Lord Monks, that there are, in fact, two huge gaps in the Bill. The first is the environment, which I spoke about at Second Reading. There is an absence of any thought of protecting our environment, when the Bill could play quite a major role in our transition to a net-zero carbon economy.

As the noble Lord, Lord Monks, pointed out, the Bill has another major flaw, which is the lack of protection for workers’ interests in this special insolvency scheme. Without these provisions, the Government will just have to hope that already wealthy people will not take advantage of this emergency scheme, but we all know that predatory capitalists use whatever legal loopholes they can to trash our planet, cheat our workers and strip the assets of companies to extract as much cash as possible. I think we will be able to point to today’s Hansard in six months’ time, when the inevitable happens and people are driven out of their livelihoods while bosses and shareholders are laughing all the way to the bank. I look forward to seeing the Government’s new amendments next week and I hope that Report will perhaps show that this Government have a heart.

Baroness Bryan of Partick Portrait Baroness Bryan of Partick (Lab) [V]
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My Lords, I have added my name to Amendments 110, 112 and 114, but I shall speak only to Amendment 114, which is a recognition that workers are truly a company’s greatest asset. But how many company mission statements have used those words but gone on to treat their workers as expendable? If a restructuring plan is to work, it will need the benefit of workers at boardroom level. If the company is ready for insolvency, the ability of the current board to turn things around must be open to question. Elected workers’ representatives are uniquely placed to identify improvements and ways to increase productivity, while at the same time assuring workers that their interests will be safeguarded. So, along with the other amendments, I hope that the Minister will reflect on this one in particular and bring some alternative to the next stage of the Bill.

Lord Fox Portrait Lord Fox
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My Lords, I associate myself with some of the comments of the noble Lord, Lord Hain, around works councils. In my past life, working with works councils, particularly in the Netherlands and in Germany, I found them to be a positive, long-term force within companies. An earlier speaker mentioned that in private sector businesses, unions have low representation, which is why works councils should be important in this country, but on departing the European Union I understand that the Government are going to reduce or negate the need for companies to have works councils, which is something to be regretted. What is also to be regretted is that we cannot have a proper debate on these amendments, which means that Report will inevitably have to go on longer.