Financial Services Bill

Baroness Farrington of Ribbleton Excerpts

Monday 18th June 2012 Lords Chamber

[The Earl of Erroll]

My Lords, I can remember when the whole Grand Committee thing started, and the first assurance was that only non-controversial Bills would go to Grand Committee. The whole point was that in the old days—not that they are so very long ago—we used to divide on matters of principle in Committee, which meant that we tidied up on Report, and that was much more efficient. The challenge with Grand Committee is that it delays everything, and then we have a huge argument on Report that goes on interminably.

Then we have the problem with the limited rules on amending at Third Reading. Before, we would divide on principle in Committee and tidy up on Report, with half the length of debate. Then at Third Reading we would discuss things only when there had to be a final little adjustment because a mistake had been made. It was very unusual to put forward amendments at Third Reading, which is why they were so restricted. With the new procedure of going to Grand Committee, you can have wonderful debates but then you have to do it all over again on Report, which causes problems at Third Reading. We must either have yet another reading to tidy up before Third Reading or go back to dividing in Committee. We should remember that not only the person putting forward the amendment in Committee has the option to divide; anyone in the House can call a Division on an amendment that is proposed. So if noble Lords think that someone is wasting time by withdrawing an amendment in Committee to bring the whole thing back on Report, I suggest that someone stands up and calls for a Division.

[Baroness Farrington of Ribbleton]

My Lords, having sat next to my much missed friend Lord Williams of Mostyn, I wish to set the record straight. I am sure that the Leader of the House did not wish in any way to mislead the House, but having sat next to Lord Williams of Mostyn through all the discussions on the introduction of Grand Committee procedure, I fear that he would be appalled that there was Division in the House over the issue. He was a man committed to sensing the House’s mood, reaching a compromise and avoiding this sort of unseemly debate in your Lordships’ House.

Secondly, it is my understanding—this is not my area of expertise—that the noble Earl, Lord Erroll, is absolutely right about what happens at the different stages. It is confusing for everyone if some parts of the Bill can be voted on in Committee and others cannot and if rules apply to certain parts of the Bill at Third Reading but not to others. I think that will lead to confusion. It is also my understanding that the Bill tackles a serious problem; if sizeable numbers of people in your Lordships’ House—I am not talking about majorities—feel unable to support the compromise, to use the Leader’s words, surely it would be better to accept the proposals of the noble Lord, Lord Hamilton of Epsom, and work in the way that I know Lord Williams of Mostyn would have wanted.

[Lord Myners]

My Lords, at Second Reading last week nearly 40 Peers spoke. It was an excellent debate that was very skilfully handled by the Minister, notwithstanding the fact that the Whips endeavoured to cut some speakers short, even though that is clearly not accepted at Second Reading. I think that that tells us something about the Government’s attitude to trying to rush this process.

This is not a controversial Bill in a party political sense. However, it is controversial in the detail, not just in the first five clauses but throughout the Bill. It would be wrong to believe that Clause 6 and later clauses do not themselves deserve very close scrutiny, handling, as they do, matters such as consumer affairs and protection and banking resolution. The noble Earl was correct to point out that the procedures in Grand Committee are very different from those in a Committee of the Whole House. As a Minister, I took legislation through Grand Committees and through Committees of the Whole House. The argument that officials in Grand Committee are seated in the Box behind the Minister and are therefore immediately available to provide assistance is much overstated. This is a very important Bill. It creates, in the office of the Governor of the Bank of England, the most powerful unelected person in the country and deals with a problem that has beset the economy for four years. The nation would expect the Bill to be publicly debated on the Floor of the House. For that reason, I support the amendment of the noble Lord, Lord Hamilton.

--- Later in debate ---

[Lord Strathclyde]

My Lords, let us assume that it would take exactly the same hours on the Floor of the House and in Grand Committee. The fact that it was on the Floor of the House would mean that we would be unable to progress on other Bills, which would have to wait their turn. We would therefore need to find other days in which to complete our business.

Like the noble Earl, Lord Erroll, I remember when we used to sit until 1 or 2 am. We got a lot of business done in the early hours of the morning. Before I get another lecture from the noble Baroness, Lady Farrington of Ribbleton, I had endless discussions with Lord Williams of Mostyn about this. He would get quite heated on the subject. He said that it was wrong for legislation to take place late at night or in the small hours, and it was on that basis that we had a Grand Committee. The reason why the House now needs to take a view is that if we are going to go against the practice of the past 10 years and not send complex Bills to Grand Committee, which we have done many times before, we will have to revisit this subject in the Procedure Committee.

Finally, Labour's legislation on the Financial Services and Markets Bill, which was a substantial and weighty piece of legislation of two volumes, was passed through this House in Grand Committee.

[Baroness Farrington of Ribbleton]

My Lords, before the Leader of the House sits down, Lord Williams of Mostyn was absolutely clear that Grand Committee procedure was for non-contentious Bills. His view was that the House should be able to make that judgment. The Leader of the House has failed to tell the House which major pieces of legislation are waiting in the wings that will now not be able to be debated, because we are not aware of them.

[Lord Strathclyde]

I urge the noble Baroness to read the record of the debates that we had at the time. If she can find the evidence for that, of course I will withdraw everything that I have said about Grand Committees. I assure her that when I was Leader of the Opposition, we understood perfectly well that Grand Committees were for all or any Bills, and that only constitutional Bills would sit on the Floor of the House.