Business of the House

Debate between Baroness Hayter of Kentish Town and Lord Hunt of Wirral

Thursday 4th April 2019 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I declare my interest as a member of the Constitution Committee. I would like to make a brief intervention. Thanks to the sterling efforts of the committee, our learned clerk and our legal adviser, Professor Mark Elliott, overnight we were able to produce a brief report, which I want to refer to, because it is mentioned in this amendment.

The report was very much a rushed attempt. In the early hours of this morning I sought to rewrite parts of it, but the clerk explained to me that, sadly, my rewriting had been blocked by the spam filter on his machine. Therefore, I thought I better just add a couple of words to explain. The Constitution Committee has always sought to advise the House on fast-track legislation. Indeed, there are one or two Members of the House who served on the committee when it produced the 15th report in the 2008-09 session, Fast-track Legislation: Constitutional Implications and Safeguards. I would like to see a little more reference during the course of this debate to the fact that we warned people that fast-tracking should take place only in exceptional circumstances. It behoves everyone in this place to demonstrate that these are exceptional circumstances.

We also sought to emphasise the need for effective parliamentary scrutiny. We set this out in our report. However, as a member of the Select Committee, I would have preferred far more time to get into more detail. I therefore refer the House to a brilliant analysis of this Bill by Professor Mark Elliott, Public Law for Everyone. Before we proceed any further, we should be aware that this is, in a number of respects, a defective Bill, and we have to be very careful how we proceed.

It was acknowledged in the other place by Oliver Letwin—the previous acting Prime Minister, before the noble Baroness, Lady Hayter, took on the role—that there were drafting difficulties. He explained that it did not really matter very much because these would be dealt with and considered,

“in the Lords stages of the Bill”—[Official Report, Commons, 3/4/19; col. 1064]

Therefore, we must ensure that we have enough time to look into those defects. Trying to take all the stages of this Bill in one day, which is what the noble Baroness would have us do, may lead to us enacting defective legislation.

I am very grateful to the Printed Paper Office for making available our report, Fast-track Legislation: Constitutional Implications and Safeguards. I hope noble Lords will look at it before we proceed very much further with the Bill. It is necessary reading if we are to undertake this unusual attempt to fast-track a Private Member’s Bill.

We identified a key constitutional principle, as set out on page 8:

“The need to ensure that effective parliamentary scrutiny is maintained in all situations. Can effective scrutiny still be undertaken when the progress of bills is fast-tracked, even to the extent of taking multiple stages in one day?”


We went on to say that another fundamental constitutional principle was:

“The need to maintain ‘good law’—i.e. to ensure that the technical quality of all legislation is maintained and improved”.


We then asked:

“Is there any evidence that the fast-tracking of legislation has led to ‘bad law’”?


We as a House have to ensure that we do not enact bad law as a result of fast-tracking. That is all I wanted to say.

As I explained in a previous debate, I object to the idea that there should be a second referendum when it was the second referendum that created this problem in the first place. I do not want to stray too much, but I was the chairman of the Conservative Group for Europe in 1975, and I fought hard in the first referendum and fought hard again in the second referendum. I say to every Member of the House, whatever their strong feelings on this issue, for heaven’s sake, please do not let us have a third referendum. Let us get this sorted out. Let us respect the result of the second referendum but make sure that we do so by passing good legislation.

[Baroness Hayter of Kentish Town]

I think it was in about 1975 that the noble Lord, Lord Hunt, and I first met, which just shows how long we have both been around.

European Union (Withdrawal) Bill

Debate between Baroness Hayter of Kentish Town and Lord Hunt of Wirral

Committee: 6th sitting (Hansard - continued): House of Lords
Monday 12th March 2018 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, we are very grateful to my noble friend for raising a very important issue. I know that the hour is late but I declare my interests as a partner in the law firm DAC Beachcroft in the financial services industry and as chairman of the British Insurance Brokers’ Association, known as BIBA. In the light of those interests, it will come as no surprise to the Committee to know that I spend a great deal of time talking to insurers and brokers, and many of them share the anxieties that have prompted my noble friend and the noble Baroness to put forward this amendment.

I think that all those who have spoken have welcomed the speech made by the excellent Chancellor of the Exchequer, with his determination to ensure that financial services lie at the heart of any new free trade deal with the European Union post Brexit. However, as the noble Baroness has just pointed out, some of the larger insurers have already begun to make provision for Brexit by relocating elements of their activities out of the UK to ensure that they remain in the jurisdiction of the EU—although I am still finding a strong desire and commitment to continuing the remarkable success story of the insurance sector in the UK post Brexit.

I have no time at all but I urge the Minister to give us assurances that committed engagement and genuine consultation with those affected will take place in a timely, orderly and constructive fashion. Insurers and their customers will be looking for reassurances that their legitimate interests will be protected during any changes in policy that are made or even considered during the transposition process. Obviously there is much more to say, particularly about the role of regulators, as my noble friend Lord Trenchard mentioned, but these are very important issues and I hope that the Minister will respond in a very positive way.

[Baroness Hayter of Kentish Town]

My Lords, I do not think that anyone who has read the excellent December 2016 report Brexit: Financial Services from our EU Committee chaired by the noble Baroness, Lady Falkner, will be under any illusion about the challenge that Brexit poses to this economically crucial sector of our economy. This evening we have heard of the needs both of those in the financial sector and of those who depend on it, and we have heard of one possible way forward, but the most important point is that something is needed urgently.

The British Insurance Brokers’ Association, to which we have just heard reference, the Alternative Investment Management Association, the ABI and TheCityUK have all come to me, and I am sure to other Members of this House, to raise their concerns about Brexit and particularly the wider implications for the legal sector and the insolvency sector and what that means for investors as well as for the more traditional City firms. Along the lines outlined by the noble Lord, Lord Carrington, TheCityUK has called for a bespoke market access agreement based on mutual recognition, regulatory supervision and co-operation, with, as we have heard, particular emphasis on mutual recognition and the enforcement of judgments.

In long-term contracts, legal continuity and certainty are vital for business, as we have heard, but also for consumers, as the ABI has stressed. Retired British citizens in nice warm areas such as the south of Spain need to know whether their annuities and pensions from London-based providers will continue after March next year, and indeed after December 2020.

The AIMA wants to see regulatory frameworks that enable managers to deal with any type of fund vehicle or account, as they now do, as they manage the savings and investments of pension funds and insurance companies. The British Insurance Brokers’ Association—100,000 people are employed in that industry, and they arrange 70% of all general insurance—says that it is “critical” to reach a transition agreement quickly and, following that, a mutual free-trade agreement.

The one word that I want to leave the Minister with is “urgency”, because insurance renewals are already being issued for annual policies renewable on 30 March next year, a date that I know is uppermost in his mind. Any policies running after 30 March next year would result in uncertainty over the legitimacy of that part of the policy that is effective after we leave. So we need these brokers to be able to ensure that there are no interruptions in customers’ cover, and that extends to whether we can be insured when we travel and when we drive our cars abroad, and to travel insurance if the EHIC ends—these are real things that people rely on day by day.

As we know, the UK is the world’s largest exporter of financial services to the EU, which is where I have to disagree with the noble Viscount, Lord Trenchard. He thinks that there is great hope somewhere else, but actually, for us to earn money in the EU and maintain all the customers we serve there, we must first prioritise establishing that we can continue with what we do so well there. Shoring up that business certainty through a formal agreement on regulatory equivalence or something similar is becoming ever more urgent.

We first started debating this report in the House in December 2016. We are now in March 2018, and I fear we are no clearer in knowing what the Government are doing. I hope that at this late hour, not just of the clock but of the calendar in moving towards when we leave, the Government will be able to provide a little more assurance than they have done thus far.

Consumer Rights Bill

Debate between Baroness Hayter of Kentish Town and Lord Hunt of Wirral

Monday 3rd November 2014 Grand Committee

[Lord Hunt of Wirral (Con)]

My Lords, I start by declaring my interest as a partner for some time in the global commercial law firm DAC Beachcroft LLP. I welcome the important amendments in the name of my noble friend Lord Hodgson of Astley Abbotts, which were spoken to so eloquently by my noble friend Lady Noakes. I also follow my noble friend Lord Eccles in saying that we have to be very careful indeed about how we proceed with this particular aspect of the legislation.

I welcome in particular Amendment 66, which to my mind has the effect of making sure that it is the consumer’s rights that are being advanced and that we are not simply creating a fresh breeding ground for claims management companies. We have to heed the lessons learnt in the United States, where actions are brought for consumer remedies in the name of consumers who know little or nothing of them. However, as I understand it, not even the United States has rules permitting such actions to be brought by someone who does not have some sort of direct interest. I strongly believe that we should be very cautious indeed with that concept. The current systems of funding litigation are riddled with risks of conflicting interests, between, on the one hand, those seeking compensation and, on the other hand, those promoting litigation. In this latter group I would include claims farmers who want their cut, and litigation funders who essentially see litigation as an investment opportunity—a way of generating a return on their capital. That return comes out of the damages otherwise payable to the claimants.

I cannot see any reason why people in this category of backers should be able to stand as representative claimant. It flies in the face of common sense. Even if we are to be told that these problems will be ironed out in regulations or draft rules, I for one would expect to see such prohibition controlled by Parliament on the face of the statute. Likewise, lawyers who stand to gain from running cases should not be allowed to represent the claimant group and then act for themselves—if nothing else to avoid the maxim that a lawyer who acts for himself often has a fool for a client. I do not want to go too far down that road, except to stress that the risks of allowing lawyers to be the representative claimant are obvious.

That is graphically illustrated by a current piece of legislation. Thousands of Nigerians are suing Shell over an oil spill in the Niger delta and have found themselves embroiled in a dispute in the High Court as to which firm of solicitors is representing them. Without going into too much detail, I refer my noble friend the Minister to that case. Action is being taken by one law firm, Leigh Day, against CW Law Solicitors, based in London. It warns us about the dangers of going down this road. If I am allowed to add another example: Leigh Day is now facing legal action in the Kenyan courts over claims that a number of the torture victims it represented were fictitious. I do not begin to know on whose side justice lies, but it is a fact that the Law Society of Kenya is taking that firm to court. That demonstrates the dangers of allowing this sort of legislation to take hold.

I hope that my noble friend will be able to give us a lot of reassuring words either now, before we conclude this debate, or in a subsequent meeting. I strongly support the case put forward by my noble friend Lady Noakes.

[Baroness Hayter of Kentish Town]

My Lords, this has been an interesting part of the Bill. The heart would be taken out of the Bill were we to listen to the very eloquent pleas made. When it was still a draft Bill I was visited by someone who flew all the way from America on behalf of the US Chamber Institute for Legal Reform who told us that we Brits did not know how to do our own law and should listen to them. I think they have been back a second time since then.

I will say only a couple of things. I have also had a response from the CBI which, again, cleverly managed to get a letter in the Times today. I would point to what I have seen as a draft response to the letter in the Times, which I hope will be published tomorrow, and which makes a couple of pertinent points. Before coming to that, I have to ask whether the CBI really wants businesses that have been proved guilty of running a cartel. All this kicks in once they have been proved of running a cartel or some other equally anti-competitive business and concerns whether they are able to keep the fruits of their crime. That is what those people who do not want an opt-out have to consider. We will otherwise continue with the case that the people who have been affected by the cartel do not get any compensation.

More than that, companies would have to pay back only what they gained by that breach of law, unlike in America, where damages can be three times the compensation owed to consumers. Not only are we not America—because, luckily, we are not America—but this provision does not even have the same basis as the American situation. Our Competition Appeal Tribunal, in which I perhaps have a little more confidence—

Legal Services Act 2007 (Appeals from Licensing Authority Decisions) Order 2011

Debate between Baroness Hayter of Kentish Town and Lord Hunt of Wirral

Monday 27th June 2011 Grand Committee

[Baroness Hayter of Kentish Town]

My Lords, I declare an interest as chair of the Legal Services Consumer Panel. I welcome these two orders, which appear a little technical—as, indeed, they are. But they are also important milestones on the road to seeing a new form of company opening for business which will help clients get access to good legal advice and enable “one-stop shops” to serve the needs of consumers. The Legal Services Act 2007 is a key piece of legislation introduced by the previous Government. It set up the Legal Services Board and the consumer panel which I have the honour to chair. That Act established independent oversight of the regulation lawyers. The Act clearly requires that such regulations should be in the interests of access to justice and the rule of law, and also be consumer focused.

The Act, as we know, set up the new legal ombudsman, which came intro operation in October last year. What is pertinent to today’s discussion is that it allows a new form of business, as the Minister has set out, combining law with other services in ways that we hope will better serve the needs of some clients in accessing particular types of service. As has been stated, the orders are part of the preparation for the introduction of the new business structures and are intended to ensure that the licensing authorities, which are the specialist parts of the approved regulators, will be ready to accept applications from October this year.

I, too, will start with the second order: like the noble Lord, Lord Thomas, I had them originally in the other order. The second order deals with appeals that are turned down by the new licensing authorities. It gives the First-tier Tribunal the remit to hear appeals from the Council for Licensed Conveyancers. This is a sensible, proportionate and appropriate regime. The noble Lord, Lord Thomas, said that he was surprised that the solicitors were not similarly covered. I very much regret that absence, and the fact that the Solicitors Regulation Authority did not accept exactly the same system for appeals against its decisions as a licensing authority on the same issue: namely, rejections of applications to be allowed to operate the new business framework. As other noble Lords have been said, the SRA prefers its own Solicitors Disciplinary Tribunal, for which, as we have heard, a separate order will come here in due course. I regret this because it will risk causing a delay to the desired 6 October start date. It will also mean, perhaps more seriously in the longer term, that there will be two tribunals dealing with essentially identical cases. It is in the interest of consumers, and more widely in everyone’s interests, that a single, consistent body of case law should develop about legal services regulatory matters. Despite the absence of the SRA, I nevertheless welcome the order, which allows for an efficient and cost-effective solution to regulation completely independent of the CLC.

On the first order, I simply note and welcome the proposed change in membership of the Council for Licensed Conveyancers, which, as the noble Lord, Lord McNally, explained, will provide for a lay majority. This is in line with the Act’s requirement for the Legal Services Board and also with the LSB’s internal governance rules for all front-line, approved regulators.

[Lord Hunt of Wirral]

My Lords, I support my noble friend Lord Thomas of Gresford in his comments about the Rehabilitation of Offenders Act. I recollect that, with the noble Lord, Lord Bach, we spent considerable time not only in debating the Legal Services Bill, as it then was, but in the previous Select Committee. One basis on which we took forward the notion of alternative business structures was that there should be a level playing field. I explain that by reiterating the fact that the Solicitors Regulation Authority, which was established by the Law Society to discharge the society’s regulatory functions, should have exactly the same powers to regulate ABS firms as it has already to regulate existing firms. We made several commitments at the time to reassure people about the new structures and affirm that there would be a level playing field between ABS firms and existing law firms. That is why we see a problem with the implementation of alternative business structures that is not dealt with through these provisions. Those are the arrangements to ensure that the prospective owners of ABS firms are fit and proper persons. Indeed, I could quote myself, Jonathan Djanogly MP or the noble Lord, Lord Bach, in stressing the importance of this key issue.