Market Surveillance (Northern Ireland) Regulations 2021

Baroness Healy of Primrose Hill Excerpts

Thursday 8th July 2021 Grand Committee

Motion agreed.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The Grand Committee stands adjourned until 3.05 pm. I remind Members to sanitise their desks and chairs before leaving the Room.

Climate Change Act 2008 (Credit Limit) Order 2021

Baroness Healy of Primrose Hill Excerpts

Tuesday 15th June 2021 Grand Committee

[Lord Grantchester (Lab)]

Once again, the Committee meets to consider important matters concerning climate change. I thank the Minister for his explanation of the order before us. It follows the well-worn pathway of setting credit limits for the first three carbon budgets of 55 million metric tonnes of CO₂ equivalent as flexibility insurance in meeting the UK’s legal obligations. As we have seen, there has been no need to utilise these credits for the first two carbon budgets, and the UK is on target to meet the third carbon budget. The Government are to be congratulated on that. They are also to be congratulated on accepting the advice of the Climate Change Committee on setting the carbon budgets. Last week, the committee approved a sixth carbon budget for the years 2032 to 2037. This CCC advice was endorsed also by the devolved Administrations.

However, there, the congratulations must end. It has not been generally accepted, as the noble Lord, Lord Oates, queried, that the Government are on course to meet the fourth and fifth carbon budgets and they have had to have a reset, with additional targets, to get back on track, as we discussed last week. The Government have gathered in the low-hanging fruit from earlier years, referred to by the noble Lord, Lord Bradshaw, and done the least development possible, paring back the budget and policies from necessary support for climate action.

The Government have now responded on the realisation of the climate emergency by setting net-zero targets for 2050 in accordance with the Paris Agreement to limit global warming, but they continue with self-congratulatory rhetoric, setting targets without clear action plans. As we discussed last week, they must come forward with policies, plans and strategies and engage in meeting these budget commitments.

It must be recognised that this order, which sets the traditional credit limit, goes against the advice of the Climate Change Committee, which was again endorsed by the devolved Administrations. That advice was to set a nil credit limit—that is, not to allow the purchase of carbon credits from overseas. Yes, none has been required in the past, but the CCC is right in its determination that the UK must meet its carbon emissions reductions domestically. It recommended that international emissions credits should not be allowed to be used to meet the fourth carbon budget and, furthermore, that any surplus from the third carbon budget should not be carried forward.

It is recognised that the UK Government intend to meet the new NDC and the 2030 target without the use of international credits. Inventory uncertainty projections and forecast inaccuracies are also recognised —they have always existed—but it is now time for clear actions, real leadership and determined signalling that the UK is meeting its obligations entirely through its own domestic obligations, as well as now taking the lead on international aviation and shipping.

I have just one question on the future development of policy. One necessary priority must be the development of batteries and energy storage; the noble Lord, Lord Bourne, identified this in his appreciation of this order. Can the Minister outline where and in which strategy and plan this priority will be answered by government plans, among the many opportunities they have identified?

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

I call the Minister. Oh—my apologies.

[Lord Grantchester (Lab)]

I am nearly finished.

The reasons given in the Explanatory Memorandum for continuing with budgetary insurance are no longer convincing. Sufficient flexibility must be managed through domestic commitments; offsetting is not a sustainable way forward. Unforeseen circumstances cannot provide a justification, and the UK has not previously contributed to the development of the global carbon market with any impact. The opportunity to purchase credits will only diminish as the world steps up with commitments to decarbonise. Consider the damage that would ensue should the Government need to go ahead with a carbon credit. They must self-insure and develop robust policies and plans to meet all the carbon budgets with clarity and certainty.

This is a missed opportunity that the Government could have taken as a decisive step, in this decisive decade, toward emissions reductions. This conclusion was also recognised by the noble Baroness, Lady Jones, in her remarks. The 2030 NDCs submitted at the UNFCCC last December should have set the tone. The sixth carbon budget will require more ambition and the pace of change to accelerate over the coming years. The confidence that could have been set by a zero-credit limit in this order needs to be corrected by the determination and announcement of policy developments before COP 26 later this year. I look forward to seeing the UK outperform and deliver. Labour understands the size of the task. The challenge is set.

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[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The Grand Committee stands adjourned. I remind Members to sanitise their desks and chairs before leaving the Room.

Conformity Assessment (Mutual Recognition Agreements) and Weights and Measures (Intoxicating Liquor) (Amendment) Regulations 2021

Baroness Healy of Primrose Hill Excerpts

Tuesday 15th June 2021 Grand Committee

Motion agreed.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The Grand Committee stands adjourned until 4 pm. I remind Members to sanitise their desks and chairs before leaving the room.

Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021

Baroness Healy of Primrose Hill Excerpts

Tuesday 18th May 2021 Grand Committee

[Lord Moylan (Con)]

My Lords, I support this measure. It is right that the Government should take action to protect corporates from insolvency in the current pandemic emergency situation. The Explanatory Memorandum makes it clear that the measures are designed to help UK companies and “other similar entities”, so I hope I will be forgiven for pointing out that the measures have no effect and give no relief for those running businesses as self-employed persons from the equivalent of corporate insolvency in their case, which is of course personal bankruptcy. This also applies to the directors of small companies who have been required to give personal guarantees to their creditors and landlords.

I take as an example for the benefit of the Committee a bespoke tailor of my acquaintance. Effectively, his business and the skills he has learned so hard over the years have been criminalised during the past year; it is impossible in practice to do an inside leg measurement without breaching Covid regulations. His past earnings—now very much in the past—exceed the limit for help under the self-employed income scheme that the Chancellor has made available. Of course, trading as he does from shop premises, he is protected from eviction and has had business rate relief, but he is not immune to personal bankruptcy proceedings brought by his landlord. Bankruptcy, even more than corporate insolvency, threatens one’s home, one’s family and one’s reputation in a terrible way. It is a terrible threat to live under. My example is only emblematic, of course; it applies to the self-employed as a class, especially those trading from business premises and, as I said, to directors of companies.

Short of legislation, because legislation is not the essential answer to everything, there are things that the Government could do. For example, they could prevent such claims coming before the courts for a period to come—certainly while the pandemic lasts and for a period beyond—in the same way as they have prevented actions for eviction being brought before the courts. They could even use the force of moral suasion—the bully pulpit, if you like—against unscrupulous and unforgiving landlords. There may be other things that they can do to get landlords and tenants working better and more effectively together. I hope that my noble friend will be able to offer some words of support to those in this very difficult position.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The noble Viscount, Lord Trenchard, has withdrawn so I call the next speaker, the noble Lord, Lord Bhatia.

Turkey: Free Trade Agreement

Baroness Healy of Primrose Hill Excerpts

Tuesday 27th April 2021 Grand Committee

[Lord Morris of Aberavon (Lab) [V]]

My Lords, it is good for the democratic process that the International Agreements Committee, of which I am a member, scrutinises treaties and that we should have a timely debate today, which I welcome.

I suggest that there are at least three templates that we should develop for the foreseeable future: first, that the Government publish their negotiating objectives quite clearly; secondly, that there should be explicit advice that the Government have raised human rights and workers’ rights, as already mentioned—as the noble Earl, Lord Sandwich, said, we urge the Government to use the review clause in the agreement to introduce human rights and workers’ rights provisions; thirdly, that in the absence of successfully achieving our negotiating objectives and where we have to fall back on WTO terms in all our treaties, it should be tabulated, and we should have a running score on what we are falling back on.

On the first issue, we were concerned at the lack of an explicit confirmation that the Government would publish their negotiating position. Since then, we have received information in the terms already referred to, and I am concerned about the words of the reply. I am not quite sure what to make of the assurance received that:

“The Government will be able to comment in due course on how the publication of negotiating objectives will be handled in the case of our existing FTA with Turkey.”


It sounds more like Mandarin than English to me. Perhaps the Minister will give me a translation.

Secondly, on human rights and workers’ rights provisions, we have made our position quite clear, as other noble Lords have done already. I fear that these issues are sometimes approached with a tick-box mentality, bowing to them, as I suspect one does, when world leaders meet but getting very little in return. The TUC expressed great concern last year that Turkey was ranked among the 10 worst countries for workers’ rights according to the International Trade Union Confederation. I need not go further than what we have heard in this debate; I certainly assert in the same way.

Over the past few months, we have developed a good relationship with the Government as regards the devolved Assemblies. I am anxious to ensure that that is pursued and followed up, because it is important not only that they are consulted but that we are informed when they have concerns. This is now coming through loud and clear. It is vital that Belfast, Cardiff and Edinburgh are all consulted as part of the economic development of this country. I am certainly hawkish on this matter, for which I make no apology, having been one of the architects of Welsh devolution. With those few words, I indicate my agreement with the committee’s report.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

I call the next speaker, the noble Lord, Lord Kerr of Kinlochard. Lord Kerr? No? As the noble Lord, Lord Oates, has withdrawn, I shall call the next speaker, the noble Lord, Lord Lansley, and perhaps we can return to the noble Lord, Lord Kerr.

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Motion agreed.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The Grand Committee stands adjourned until 4.05 pm. I remind Members to sanitise their desks and chairs before leaving the Room.

Greenhouse Gas Emissions (Kyoto Protocol Registry) Regulations 2021

Baroness Healy of Primrose Hill Excerpts

Tuesday 13th April 2021 Grand Committee

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The next speaker on the list, the noble Lord, Lord Berkeley, has withdrawn from the debate, so I call the noble Lord, Lord Bourne of Aberystwyth.

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a great pleasure my good friend the noble Baroness, Lady Altmann, and I thank my noble friend the Minister for setting out so clearly the effect of these regulations.

I support these regulations, which amend retained EU law. We clearly need to do that in order to ensure the continued application of the UK’s Kyoto Protocol obligations, which, as my noble friend said, persisted from 2008 to 2020 but will clearly go on for several years after that. That is the importance of these regulations.

Along with other noble Lords, I am keen to hear from my noble friend that we will carry on in the same way. I think he gave that reassurance, but I hope that that will be carried across in our ambition to COP 26. As he said, there will be a fresh assessment made at COP 26, and I will say something about that in a minute, if I may.

I am also concerned by the hiatus, which my noble friend touched on, between the end of the transition period and the new regulations taking effect in, I think he indicated, June 2021. Clearly there is a gap there. I think I understood him to say that that gap has been catered for and that the 112—I think he said 112—businesses that are potentially affected by this are aware of this, and I hope that they have been given guidance on how that will affect them in the period before our own registry takes proper effect in June 2021. I would welcome that reassurance.

We as the United Kingdom have a historic opportunity with COP 26, and it is incredibly important that we seize it and go forward with at least the ambition that we had in the EU—and I hope beyond it—to show that global Britain really does mean business. I know my noble friend will say that this is a matter for the usual channels, but I hope that he will be able to convey to the usual channels and to other parties the importance of having a meaningful debate in your Lordships’ House well ahead of COP 26 so that we can express our collective ambition so that can be carried forward, because this is of crucial significance not just for our country but for the entire globe.

With that, I am more than willing to support these regulations, which make sense, but I would welcome my noble friend’s reassurance with regard to the hiatus and, I hope, to a meaningful debate on this issue.

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Motion agreed.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The Grand Committee stands adjourned until 3.35 pm. I remind Members to sanitise their desks and chairs before leaving the Room.

National Security and Investment Bill

Baroness Healy of Primrose Hill Excerpts

Committee stage
Tuesday 9th March 2021 Grand Committee

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

My Lords, the hybrid Grand Committee will now begin. Some Members are here in person, respecting social distancing, others are participating remotely, but all Members will be treated equally. I must ask Members in the Room to wear a face covering except when seated at their desk, to speak sitting down, and to wipe down their desk, chair and any other touch points before and after use. If the capacity of the Committee Room is exceeded, or other safety requirements are breached, I will immediately adjourn the Committee. If there is a Division in the House, the Committee will adjourn for five minutes.

I will call Members to speak in the order listed. During the debate on each group, I invite Members, including Members in the Grand Committee Room, to email the clerk if they wish to speak after the Minister, using the Grand Committee address. I will call Members to speak in order of request.

The groupings are binding. Leave should be given to withdraw amendments. When putting the Question, I will collect voices in the Grand Committee Room only. I remind Members that Divisions cannot take place in Grand Committee. It takes unanimity to amend the Bill, so if a single voice says “Not Content” an amendment is negatived, and if a single voice says “Content” a clause stands part. If a Member taking part remotely wants their voice accounted for if the Question is put, they must make this clear when speaking on the group.

Clause 6: Notifiable acquisitions

Amendment 15

Moved by

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[Lord Lansley (Con)]

My Lords, when we discussed the second group, I said that when we are looking at the national security risk, the purposes of the Bill are to define the relevant entities and assets; the extent of control, which is significant for these purposes; and the nature of the acquirer of those entities and assets. I think the third is proving among the most difficult. This group seeks to define that person by reference to their nationality. This is a substantial change to the nature of the legislation, since the purpose of the legislation is to address national security risks; it is not to screen foreign investment in the United Kingdom. The analogies with other regimes—for example, with the European Union’s regulations—do not stretch far because they are concerned with foreign investment.

This group has strayed considerably beyond areas of national security and into the area of what is termed “open strategic autonomy”. I am not sure how open it will prove to be, but it is potentially protectionist by nature. It strikes me that we should really aim to focus on national security, which is the purpose of the Bill, and in the Bill’s broader economic aspects, we should continue to adhere to the principle of non-discrimination. If we include UK domestic actors in the potential definitions of acquirers who raise national security issues, we will be non-discriminatory in our effects, and it is important that we should aim at that. In practice, where national security is concerned, we know that not all foreigners are hostile, and not all those who are hostile are foreigners. So, I am afraid I am not persuaded.



There is also an issue here about authorised countries, which is linked to this but could be separated, although it is not for these purposes at the moment. The Committee on Foreign Investment in the United States has since last year, I think, had excepted states. Interestingly, they are Canada, Australia and the United Kingdom. The list does not include New Zealand for reasons no doubt well known to the United States Administration but not to me, so I am not entirely sure why my noble friend included New Zealand. The criteria appear to be related to the intelligence-sharing arrangements and the extent of defence integration between those countries’ industries and the United States.

Even where the United States’ excepted states are concerned, this is only temporary. There has to be a determination in the early part of next year of whether we have sufficient investment screening arrangements to give the United States assurance to maintain our excepted state position, which I think the Bill will allow us to do. That will be useful to United Kingdom investors into what are known as TID businesses in the United States—those dealing with sensitive technologies, infrastructure and data.

I say to my noble friend that I am not persuaded by this group of amendments, nor yet by the authorised country issue. I suspect the latter issue is one that it might be useful to come back to and think about under what circumstances we differentiate between people from countries that have comparable investment screening regimes in practice.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The noble Lord, Lord Bilimoria, has withdrawn so I call the next speaker, the noble Lord, Lord Leigh of Hurley.

[Lord Leigh of Hurley (Con)]

My Lords, the Bill currently provides that the mandatory filing requirement applies equally to all investors, as my noble friend Lord Vaizey said. This is despite the Government stating quite rightly that domestic investors are inherently less likely to pose a national security risk. The Bill is ultimately about managing risk, so we need to ensure that the notifications that the ISU receives are the right sample. Exempting UK nationals from this process would be a far from proportionate approach. Since we are in the business of managing risk in a proportionate manner, we should consider whether investors from specific allies—Australia, Canada, the US and New Zealand have been suggested—should be exempt since, again, the evidence strongly suggests that such investments are less likely to pose a national security risk, although I will come on to one caveat at the end of my remarks.

This aspect would also align more closely with some of our competitor jurisdictions. In any event, since national security is always paramount, it is worth noting that these amendments concern only the mandatory filing requirement. The Secretary of State would remain fully empowered to call in such transactions for review even if they concerned our citizens or allies or were below the threshold for control. That is an important distinction. I hope it means that lots of potential acquisitions by UK players will not get covered by notifiable regulations if we approve these amendments.

I am sure that the legislation is not meant to cover the situation where someone starts a business with a great idea and, say, £1,000. That business might touch on a number of sectors including, say, defence. We know that the sector definitions are very widely drawn. This entrepreneur then goes to some family and friends to seek funding, which might be through an EIS or, even better, an SEIS or possibly an EIS fund. The family and friends are all local. I know one investor who has only ever invested—with great success—in businesses run by someone he has personally met in his local pub. Such investors are vital to the UK economy and, in my opinion, do not carry a risk to security any greater than the person who started the business. As we currently have no size threshold at all, they would be caught by the Bill. It would be a great shame if they decided that they did not want to wait the 30 days or more for the Secretary of State to opine.

We all know the purpose of the Bill and it is not to restrict UK investors investing in UK companies. If we go down the route of exempting UK companies, we need to look more carefully at the definition of a UK company, which Amendment 96 seeks to do. I recognise that this is difficult. For example, many companies have private equity investment in them. They are clearly UK companies with a UK HQ, UK board and UK business but because the general partner investor may be based in, say, Guernsey, for the limited partners requirement—and the limited partner is almost certainly based abroad—they would need to be treated as a UK company to ensure a level playing field.

My noble friend Lady Noakes and the noble Baroness, Lady Bennett of Manor Castle, have made some valid points. It is indeed true, for example, that many companies which are essentially Chinese are listed on NASDAQ. Would we call them American or Chinese? There has to be some very careful examination.

My last concern, which I mentioned in respect of Amendment 95, is to stop shell companies being created in countries such as Australia. Under these amendments, a shell company could buy a UK tech business and be sold immediately thereafter to a non-friendly company. Undertakings would therefore have to be put in to protect against that situation.

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Amendment 15 withdrawn.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

We now come to the group beginning with Amendment 15A. I should inform the Grand Committee that if Amendment 15A is agreed to, I cannot call Amendments 16 and 17.

Amendment 15A

Moved by

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It is vital that this fourth case stands part of the Bill so that the Secretary of State may scrutinise acquisitions of control over entities, in whatever form that takes. I hope noble Lords will agree that this approach has been carefully considered to reflect the complexity of the make-up of modern entities. Therefore, I am unable to accept this or the other amendments in this group and kindly ask the noble Baroness to withdraw her amendment.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

I have received a request from the noble Lord, Lord Leigh of Hurley, to speak after the Minister. I call the noble Lord.

[Lord Leigh of Hurley (Con)]

I thank my noble friend the Minister for his very considered comments, in particular his explanation of Clause 6(3). I think it allows a coach and horses to be driven through most of this legislation if someone can claim an impossibility. The examples he gave were excellent but there will be many other examples where people can claim an impossible circumstance. We will come on later to talk about, for example, the position of administrators and liquidators, and I can think of many others as well. I would have thought Clause 6(3) needed refinement.

Both the Minister and the noble Lord, Lord Fox, mentioned “materially control” as opposed to “materially influence”. There is a difference and this is not about materially controlling but about materially influencing. Regarding Clause 8(8), I accept that there are definitions elsewhere of materially influencing the policy. However, I remain of the view that it is not possible below 15%, or indeed below 25%, to materially influence the policy as far as national security is concerned. Therefore, I very much hope that my noble friend the Minister has a chance to reflect on this specifically before Report.

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Clause 6 agreed.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

We now come to the group beginning with Amendment 20.

Clause 7: Qualifying entities and assets

Amendment 20

Moved by

National Security and Investment Bill

Baroness Healy of Primrose Hill Excerpts

Committee stage & Lords Hansard
Tuesday 2nd March 2021 Grand Committee

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

My Lords, the hybrid Grand Committee will now begin. Some Members are here in person, respecting social distancing, others are participating remotely, but all Members will be treated equally. I must ask Members in the Room to wear a face covering except when seated at their desk, to speak sitting down, and to wipe down their desk, chair and any other touch points before and after use. If the capacity of the Committee Room is exceeded, or other safety requirements are breached, I will immediately adjourn the Committee. If there is a Division in the House, the Committee will adjourn for five minutes.

I will call Members to speak in the order listed. During the debate on each group, I invite Members, including Members in the Grand Committee Room, to email the clerk, if they wish to speak after the Minister, using the Grand Committee address. I will call Members to speak in order of request.

The groupings are binding. Leave should be given to withdraw amendments. When putting the question, I will collect voices in the Grand Committee Room only. I remind Members that Divisions cannot take place in Grand Committee. It takes unanimity to amend the Bill, so if a single voice says “Not Content” an amendment is negatived, and if a single voice says “Content” a clause stands part. If a Member taking part remotely wants their voice accounted for if the question is put, they must make this clear when speaking on the group. We will now begin.

Amendment 1

Moved by

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In the delivery of this regime, the Secretary of State would be supported by a well-funded investment security unit that will co-ordinate considerable expertise from across government, including, of course, from the security services. The Government will therefore ensure that the powers in the Bill would be used to maximum effect to protect the nation’s security and would complement the aims of the integrated review. I hope, therefore, that the noble Baroness, Lady Hayter, recognises that committing in legislation that one area of government policy will align with another connected area would be novel, as I have demonstrated. She will, I hope, agree that it is unnecessary. While I understand the objectives of the noble Baroness, for the reasons I have set out I am not able to accept these amendments. I hope, therefore, that she will feel able to withdraw Amendment 2.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

I have a received a request to speak after the Minister from the noble Lord, Lord Fox.

[Lord Fox (LD)]

During that comprehensive answer, I think I heard the Minister say something and I would like to test whether I understood correctly. In explaining why people should not be concerned that certain parts of infrastructure are not included in the list, I think I heard the Minister say that the Bill’s call-in power is economy-wide. That suggests to me that the list of 17 issues is irrelevant because everything is on the list. In other words, anything can be called in, whether it is on the list or not. So, the list is merely indicative, but the exhaustive list is the entire economy. Could the Minister explain whether that is the correct interpretation of what I just heard?

Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) (No. 2) Regulations 2020

Baroness Healy of Primrose Hill Excerpts

Tuesday 19th January 2021 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, since the emergence of Covid-19, the Government have been swift to act and provide businesses with help and support to give them every chance to survive and get through this difficult period of uncertainty. Since March last year, businesses have benefited from an unprecedented package of government support targeted at saving jobs and livelihoods, such as the furlough and job retention schemes, as well as billions of pounds in loans, rates relief, tax deferrals and grants.

Today, all areas of Great Britain are again subject to restrictions put in place to limit the spread of the virus and to help save lives. These restrictions are crucial to prevent our NHS from being overwhelmed and we wait for everyone to be vaccinated. But until life returns to normal, we have to recognise that the impact on business is severe and continuing. The adverse effects that these essential restrictions continue to have on many businesses, particularly those in the retail and hospitality sectors, have been well documented and well debated in our House. Once again, the Government have acted quickly following the introduction of the latest national restrictions, with a new £4.6 billion package of lockdown grants to support businesses and to help protect jobs.

These regulations, which were laid before the House on 9 December 2020, will continue to help companies by extending the temporary suspension on using statutory demands to wind up companies and other restrictions on company winding-up petitions to 31 March 2021. First introduced by the Corporate Insolvency and Governance Act 2020, these measures were extended from the end of September 2020 by order to 31 December and this instrument seeks to extend them further. The measures, like others in that Act, are aimed at supporting directors in guiding their companies through the period in which business is being affected by the current pandemic. Since their introduction in March last year, these temporary measures have helped to protect many viable companies from aggressive creditor enforcement during unprecedented trading conditions.

The temporary restrictions on company winding-up petitions that the regulations seek to extend mean that a petitioner must satisfy a court that any debts are not Covid-19 related. In this way, companies that would be viable but for the effects of the virus will not face action from creditors seeking to wind them up because they have been unable to pay their debts due to the trading restrictions that have been necessary to protect our citizens and the National Health Service. This extension will further help to support companies while national restrictions continue to affect the trading capability of many of our businesses.

While these measures are intended to help companies that may be subject to aggressive creditor enforcement, the Government have been clear that they are not to be seen as a payment holiday. Where companies can pay their debts, they should, of course, do so. It is important to note that these measures aim to encourage forbearance and do not extinguish any existing creditor rights or interests.

In addition to the protection that this measure gives, it is also intended to give those companies with unavoidable accrued arrears caused by the pandemic time to take advice from restructuring professionals and to negotiate and reach agreements with their creditors wherever that is possible. I know that many companies have done so successfully and I am grateful to them, but I urge others to do so and to plan for the post-Covid future with confidence.

I know that many businesses and their business representatives will welcome the continued support that these regulations will give them during this very uncertain time. But I also recognise that these measures will mean a further period of uncertainty for creditors where their rights to enforce recovery of their debts are temporarily suspended. The Government continue to ask for forbearance in allowing people and businesses to meet their debt obligations during these difficult and unprecedented times. As I said, these measures do not extinguish any existing rights or interests. Instead, they temporarily remove one mechanism for enforcing a debt and therefore provide additional protection to companies in distress as a result of the virus. A variety of other debt enforcement methods will remain. We think it is right, therefore, that any consideration of an extension and for how long should be done on an individual basis, rather than in the round, considering all the circumstances and potential impacts.

In conclusion, we do not take this action lightly and we will review carefully before taking any further decisions when this extension period expires at the end of March. Therefore, I commend these regulations to the House and I beg to move.

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

I inform the Committee that the clock is not working currently and remind them that speeches are limited to six minutes. I call the next speaker, the noble Lord, Lord Sikka.

Self-employment Income Support Scheme

Baroness Healy of Primrose Hill Excerpts

Tuesday 5th May 2020 Lords Chamber

[Baroness Healy of Primrose Hill (Lab)]

Many freelance journalists are ineligible for the government schemes and the requirements exclude those in their first year of being self-employed. Does the Minister agree that it is unfair to penalise those just starting out in their careers or forced into self-employment through redundancy and casualisation?

[Lord Callanan]

Of course, we want to help as many people as possible under these schemes, and we keep them constantly under review. All these various schemes have been implemented as quickly as possible, so we will certainly reflect closely on what the noble Baroness has said.