Financial Services Bill

Debate between Baroness Farrington of Ribbleton and Lord Myners

Monday 18th June 2012 Lords Chamber

[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.