Trade Agreements

Baroness McIntosh of Pickering Excerpts

Tuesday 14th July 2020 Lords Chamber

[Lord Grimstone of Boscobel]

My Lords, the series of trade agreements in effect at the moment—to which we were bound by our membership of the EU—are being rolled over into various continuity agreements. I can confirm that all those continuity agreements will contain within them the appropriate provisions in relation to human rights and environmental standards.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, can my noble friend the Minister explain to us what the role of the trade commission will be and why it is being set up for only six months? How can it achieve anything in such a short time? Will he reassure the House today that no animal product imported into this country will be produced to a lower standard of animal welfare than we expect our farmers in this country to meet?

[Lord Grimstone of Boscobel]

My Lords, our manifesto was clear that in all our trade negotiations we will seek to maintain our high environmental protection, animal welfare and food standards. We have recently announced the setting-up of the Trade and Agriculture Commission to ensure that the strongest possible range of views is made available to us in our policymaking. There is always a trade-off between getting on with things and time taken; in consultation with members of the commission, we felt that six months was the right time to allow for this work so that, in due course, its results can be made available to the House.

Contracts for Difference (Electricity Supplier Obligations) (Amendment) (Coronavirus) Regulations 2020

Baroness McIntosh of Pickering Excerpts

Thursday 2nd July 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I congratulate my noble friend the Minister on bringing forward these regulations for our consideration this afternoon. My first question is not dissimilar to that asked by the noble Baroness, Lady Bowles, and I am grateful to her for the research she has clearly put into that. Paragraph 7.1 of the Explanatory Memorandum states this fairly complicated payments procedure and says at the end:

“We expect that suppliers pass on the costs of these payments to their customers.”


As we know, while retail shops and business customers generally closed down, as they were told to do because of the Covid-19 virus—and it was absolutely right that they did so—that meant that everybody was working from home and the consumption of electricity and water went up incrementally. I am therefore concerned that this will be passed on to the domestic customer in what is a very grey area as regards transparency of payments.

Successive Governments have introduced renewable energy, and we as domestic customers pay handsomely for the privilege. However, the transparency of how we pay is indeed very opaque. Can my noble friend put my mind at rest as to how this increase will appear, and what role Ofcom will have in agreeing to this? Presumably Ofcom was consulted, and as the regulator it will have a view when it comes to sorting this out at the end of the next quarter or at the end of the financial year.

Finally, I do not quite understand the thinking behind why the agreement that the Government have entered into—between BEIS and the LCCC—is not part of our proceedings this afternoon. That would have been very helpful. I hope that my noble friend will agree to publish all the responses on the website, in the normal way.

Electricity Capacity (Amendment etc.) (Coronavirus) Regulations 2020

Baroness McIntosh of Pickering Excerpts

Thursday 2nd July 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I thank the Minister for introducing these regulations and entirely endorse the reasons for them. He very kindly gave us the detailed background, particularly about the judgment by the European Court of Justice and the decision of the European Commission. I spent six very happy months as a stagiaire in DG4, which is now called DG Competition, becoming familiar with the anti-trust rules and regulations of European law, although I am less familiar with state aid, so I will put a question of principle to my noble friend. It is not dissimilar to that of the noble Lord, Lord Purvis. As we are leaving the European Union and will exit at the end of the transition phase on 31 December this year, that begs the question, what will be the future arrangements for such support being meted out under the regulations before us this afternoon? Which body will replace the European Commission as the regulator of these subsidies—as we are apparently going to call them in future—or state aid, going forward? Can he give the House an assurance this afternoon that his department and others will indeed be subject to overview and scrutiny in all these decisions? Can he confirm that it will be the Competition and Markets Authority?

I have a separate question that relates entirely to the regulations before us this afternoon. Can the Minister confirm that long-term STOR contract holders will be able to compete in the capacity market as a result of these regulations? Is he convinced that it is absolutely a good idea that they be included?

Corporate Insolvency and Governance Bill

Baroness McIntosh of Pickering Excerpts

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 23rd June 2020 Lords Chamber

[Lord Palmer of Childs Hill (LD) [V]]

My Lords, this Bill, when enacted, will be the guide—even the bible—of the monitor. I agree with Amendment 14 and shall speak on it very briefly. My noble friends Lady Bowles and Lady Kramer have explained in detail the reasons for supporting and promoting the amendment, which, to remind noble Lords, would place a restriction on enforcement and legal proceeding, stating that banks and other financial creditors must not have an advantage.

My concern goes back to the philosopher Thucydides, who said something along the lines of “Words change their meaning”. What are “financial creditors”? What is “not having an advantage”? Sometimes the meaning is in the eye of the beholder or in the minute printing of the 240 pages of the Bill.

If Amendment 14 is agreed, as I hope it will be, I shall welcome the Minister’s assurance, at least for the record, that HMRC’s VAT debt, about which I spoke at least twice in earlier proceedings, will not be viewed as the debt of a financial creditor seeking yet more preferential terms. The Finance Bill 2019-21, which we have put aside and hardly mentioned during these debates, seeks to give preference to HMRC for VAT. This undermines the whole principle of this legislation, which I believe is, as the noble Lord, Lord Hodgson, said, based on the idea that “We are all in it together”. If, even unintentionally, the banks or HMRC are given preference in the Finance Bill 2019-21, we will not all be in it together; some will be more equal than others.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I support the sentiments expressed by the noble and learned Lord, Lord Hope, in moving his Amendment 1, and I thank the Minister for his letter, which has been shared with us.

The duty of the monitor to notify creditors extends only to those creditors of whom the monitor is aware. What is welcome about Amendment 1 is the fact that it strengthens that. At the moment, there is no express duty to seek information about creditors from the company, and I feel that there is a very strong need for Amendment 1 to enable the monitor to do their work, given the time constraints regarding the moratorium under which they are working.

I was pleased to support the amendment in Committee. I noticed that in the Minister’s reply setting out why, in his view, Amendment 1 is not necessary, he regrets that he did not have time to respond fully to the points made in Committee. That raises a broader point about parliamentary scrutiny. I hope that the normal channels will take note of this and that we allocate sufficient time to ensure full and proper scrutiny of a major piece of company law, albeit that for the most part it is time barred. It takes longer to correct a bad law than to make a good law in the first place.

If we do not adopt Amendment 1 today, I believe that that will make the monitor’s position more difficult and that the position of creditors will remain very weak. I support the remarks of my noble friend Lord Bourne. In Committee I made similar points about the desirability of enhancing the independence of the monitor and there is no need to rehearse them today, but I stand by those comments.

Finally, I turn to the Minister’s explanatory statement on government Amendment 3. Generally, I welcome the government amendments, which are preferable to the original Henry VIII clauses, although I am mindful of the remarks of my noble friends Lord Leigh and Lord Trenchard in this regard. However, I question the Minister’s justification of Amendment 3, which would leave out the definition of “the relevant documents” and replace it with the words

“adding to the list of documents”.

The statement says:

“The power could subsequently be re-exercised so as to remove anything added.”


That seems slightly peculiar, and I would welcome the Minister explaining it in more detail when he replies to this debate.

[Lord Adonis (Lab) [V]]

My Lords, after an hour and five minutes of debate, I do not think that there is much more that needs to be said in favour of these amendments. We have heard a succession of powerful speeches. As the noble Lord, Lord Hodgson of Astley Abbotts, said, the speech that matters now is the Minister’s. We need to know why he believes that the amendments are not necessary, as I understand he is likely to say in respect of a number of them, and we might then come back on that, either now or at Third Reading.

I strongly support Amendment 75. I do not think that in practice it would make much difference, as it would simply introduce a right to be consulted. As my noble friend Lord Hendy said, it does not have any of the stronger elements of a requirement to negotiate or to take account of views—points that have been debated—although it is obviously a step in the right direction. However, the really powerful amendment is Amendment 14, and we look forward to the Minister’s response to it. It would, as many noble Lords have said, make it categorically and explicitly clear that the banks and other financial creditors may not seek to accelerate payment.

The Minister’s response here will be crucial. The noble Baroness, Lady Bowles of Berkhamsted, has told us that the Minister said when she met him that the Government expected that banks would behave reasonably and would not seek to enforce repayment requirements unreasonably, whereas a succession of speakers, particularly the noble Lord, Lord Hodgson, and the noble Baroness, Lady Bowles, have made it clear that it is standard practice for them to take every opportunity they can to accelerate payments and that they will do so if the Bill is enacted without Amendment 14.

So the House will want to listen carefully to what the Minister says in response to Amendment 14. If his argument is that it is his expectation that banks will not seek to accelerate payment, what grounds can he offer to the House to support that view when we have been given such strong views to the contrary?

--- Later in debate ---

The Bill is important for business and I wish it a swift passage from here onwards.

[Baroness McIntosh of Pickering [V]]

My Lords, I have no substantive remarks to make, other than to congratulate my noble friend Lord Howe on taking on board the comments made by the committee.

[Baroness Barker (LD)]

My Lords, a number of Members of your Lordships’ House may wish to claim that it was the force and power of their oratory that caused the Government to think again, but I have a sneaking suspicion that the mere prospect of the noble Baroness, Lady Fookes, leading a band of opposition rebels was enough to concentrate minds—and I am very glad that it did. There was broad consensus around the House that the powers taken within the legislation were far too broad. I am glad that the noble Earl, Lord Howe, has come back and talked in detail about those which have been ceded and those which have not.

Towards the end of his remarks, the noble Earl said that the Government had retained some regulation-making powers to address the needs of different sectors, should it become apparent that regulations need to be made to save businesses in certain sectors. That is the issue to which I draw attention, following on from the remarks of the noble Baroness, Lady Anelay of St Johns. Like me, she has an interest in what happens in the charity and social enterprise sector. Welcome though the letter from the Minister was—exactly as the noble Baroness just said, it talked about charities with wholly owned subsidiary trading companies which give back their profits to the charity—a number of charities have different company forms, and there remains a lack of clarity in the Bill about some of those entities.

I am very pleased that the noble Lord, Lord Callanan, and his officials have talked to me about this. The Bill applies to those charities which are companies limited by guarantee—it is mostly community interest organisations that will fall within this—but it will not apply to charities that are unincorporated, nor to excepted charities and royal charter charities. There is also a big consideration around the extent to which the Bill will apply to community benefit societies, mutuals and co-ops. I am not asking the Minister to reiterate the detail of that today. I merely draw attention to the fact that there may be matters to which it is necessary to return when the Government make regulations under the Bill.

I signalled to the noble Lord, Lord Callanan, one of the issues that has been drawn to my attention by the museum sector. We have a number of independent museums—not the large museums set up under an Act of Parliament, nor those associated with local government—and they are typically charitable companies. They have a very big fear. If they are in danger, and a number of them currently think that they may well be, their collections immediately become part of the assets of any insolvency procedure. The big concern is that, if there is no exemption for those assets in regulations, later on this year a large part of Britain’s cultural heritage may suddenly come up in a fire sale. That would be extremely damaging, not just to those organisations but to the local economies that they support as part of the tourism sector and so on. All they are asking is that, when it comes to making regulations under the Bill, there be consultation with them and with the charity lawyers, accountants and insolvency practitioners who have expertise within what is, I know, a very niche but important part of company law.

That said, I add my support to the noble Baroness, Lady Fookes, and her Amendment 48. What she is asking for seems entirely reasonable.

Corporate Insolvency and Governance Bill

Baroness McIntosh of Pickering Excerpts

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Tuesday 16th June 2020 Lords Chamber

My final amendments in this group are Amendments 37 and 44, which would add a review of the operation of the moratorium, including the impact on SMEs and unsecured creditors, and recommendations for legislation to mitigate negative effects. It is clear from the extensive number and scope of delegated powers that this legislation is a work in progress and will need a lot of tweaks. Indeed, despite noble Lords not being the keenest on delegated powers there are places where more are suggested, such as for the monitor, simply because this legislation is not completely worked out. In an ordinary procedure it might well have been possible to iron everything out, but on this emergency schedule it is not. It is not right to bypass Parliament’s helpful scrutiny and, at the very least, there comes a point when it must be considered again in the round, and in the light of experience. The alternative is to sunset and start again, or to do both so that a coherent replacement can give continuity.

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I will address Amendments 1, 2, 4, 8, 28 and 42, as they clarify the role of the monitor and include safeguards on that role while ensuring its independence, which was the theme that I spoke to at Second Reading. We are obliged to the Minister and the department for bringing forward the Bill and we do not seek to delay it, but to strengthen its provisions. The aim of the Bill is clearly to support a company rescue. These amendments would strengthen the role and independence of the monitor. I emphasise the gaps that were addressed at Second Reading.

Amendments 1 and 2 to Clause 1, in the name of the noble Lord, Lord Stevenson, go right to the heart of what the role of the monitor should be. Its role is not to displace the existing management but to monitor company affairs during the moratorium, with the purpose of ensuring that in the view of the monitor the moratorium would be likely to lead to a rescue of the company as a going concern. These amendments, and the others I have referred to, would help the monitor by putting him in a stronger position. We must not detract from the fact that if at any stage during the moratorium the monitor believes that the rescue of the company as a going concern is not likely, the monitor must bring that moratorium to an end. Amendments 1 and 2, along with Amendment 4, in the name of the noble and learned Lord, Lord Hope of Craighead, address these points. Providing this list would actually save time in the long term.

A noble Lord spoke to the amendment about extending the time of the moratorium. Will my noble friend the Minister consider, when he responds to these amendments, whether this would add to or reduce the overall cost of the moratorium?

Amendment 8, together with Amendments 28 and 42 in the names of my noble friend Lord Hodgson and the noble Lord, Lord Palmer, further strengthen the role of the monitor. They could help to facilitate the rescue of the company and reduce the period of the moratorium. What is of interest, and key to these amendments, is that they were identified at Second Reading. I hope that my noble friend might look with approval on these amendments, which seem to meet with the approval of industry and the Law Society for England. There does not seem to be any view within the industry that they would do anything other than enhance the Bill.

I have to confess to having some sympathy with the remarks of my noble friend Lord Hodgson about any referral to, and reliance upon, Henry VIII powers. In my view, it is always preferable to address these issues in the Bill rather than leaving too much leeway to regulations that may be interpreted rather loosely and put more onus on the monitor and the courts in the long term. With those few remarks, I hope that my noble friend the Minister will look favourably on all these amendments.

[Lord Palmer of Childs Hill (LD) [V]]

My Lords, my Amendment 28 is on the definition of the role of the monitor. It also ties in with Amendments 1 and 2, referred to by other noble Lords. I declare an interest as a fellow of the Institute of Chartered Accountants.

There is concern among many fellow noble Lords about the lack of supporting information about the monitor. The monitor is an individual, as is a liquidator; in other words, this is not an appointment of a partnership or a limited company. Can the Minister address what the situation could be in the real world outside your Lordships’ Chamber? It seems that a firm of accountants or one of its partners, referred to by the noble Lord, Lord Stevenson, in Amendment 1, could be consultants to a troubled company; at the same time, the firm could be auditors to the same troubled company; now, it can be appointed monitor to the same entity; and, ultimately, if matters go downhill, the same firm or a member of it can be appointed liquidator. Can the Minister reassure the Committee that these fears of cross-contamination are to be addressed? The noble Lord, Lord Hodgson, gave a graphic example, and there are many others which many of us have experienced in business.

Amendment 2, also in the name of the noble Lord, Lord Stevenson, calls for the monitor’s independence from the company. I agree with that, but he or she surely needs also to be independent of the group of companies and the directors, not mentioned in the Bill.

I raised at Second Reading that the monitor—a newish concept—will, unlike a liquidator, not have control of the company’s assets. Can the Minister clarify what research has been done on what insurance cover is available to a monitor, who has no control of the assets?

Amendment 4, in the name of the noble and learned Lord, Lord Hope, calls for a list of creditors, which I heartily support, but this should also include potential debts hiding in the undergrowth, such as the cost of dilapidations. Is the Minister able to address the creditor who is the elephant in the room? I refer to the preferential status to be given under the Finance Act to HMRC for VAT. I understand that the argument is that the company has collected this and needs to hand it over, but is there not a similarity with the supplier of widgets essential to the business who is destined to be below the salt in the list of creditors requested in the amendment?

The noble Lord, Lord Leigh, raised much the same question as I raised at Second Reading, about the actual business as distinct from the company. There seems to be no recognition in the Bill that a business or the components of a business could be rescued. I am not sure that a monitor will help in that process. My noble friend Lady Bowles said that, in effect, the appointment may do more harm than good—it may do more good than harm; I do not know—but, as she so ably said, it is clearly a work in progress and not completely worked out. We look to the Minister and the Government to fill in the blanks before we feel easy about the Bill before us.

Corporate Insolvency and Governance Bill

Baroness McIntosh of Pickering Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 9th June 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con) [V]]

My Lords, I congratulate my noble friend on introducing the Bill. I welcome the thrust of the Bill—bringing forward measures to support company rescue—particularly in the current circumstances of the Covid-19 pandemic and its dreadful impact on business.

Although I overwhelmingly support the Bill, I will raise a number of issues, particularly as regards the role of the monitor and areas where it may be vague and uncertain as to how provisions will apply in practice. I will take the opportunity to ask the Minister: for what reason have individual insolvencies been excluded from the scope of the Bill? Can he clarify the Government’s position regarding the monitor? How independent will that person be of the company and its directors?

More specifically, will the Government look more closely at the role of the monitor and consider introducing further safeguards to ensure their independence? In particular, could he look at the appointment and duties of the monitor? Should they outline and introduce a statement of how they understand the company intends to use the moratorium to rescue the company? Should the monitor be asked to provide a progress report? Should they be required to file any relevant correspondence between the company directors and the monitor with the court? Finally, would it be appropriate for the monitor to submit a statement of their independence from the company, with a test of that independence?

In spite of these comments, I wish the Bill a fair wind and would be grateful if the Minister could explain, particularly regarding its permanent measures, the monitor’s role in reducing financial distress of companies with the introduction of a moratorium.

Covid-19: Businesses and the Private Sector

Baroness McIntosh of Pickering Excerpts

Thursday 21st May 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I declare my interests in the register. I congratulate my noble friend on securing this debate and herald a true partnership between the public and private sectors. I join other noble Lords in giving fulsome thanks to doctors, nurses, carers, all the emergency services, and all involved in delivering front-line patient care. I also give fulsome thanks and pay tribute to all the farmers and landowners who have worked all hours, and in all weathers, to put food on our plates.

I shall tell just one little story and recognise the contribution of a local firm based in Easingwold. Industrial Textiles & Plastics makes impermeable plastic materials to a high specification. These have been used in the past to protect against chemical warfare. Independently of government, they have joined forces with Barbour and Burberry to manufacture personal protective equipment, free of charge, which is being distributed by a local voluntary organisation in Thirsk for use by our local hospitals, the Friarage, James Cook, Harrogate and York hospitals. I pay tribute to its initiative and generosity in ensuring that our hospitals—patients and staff—are kept as safe as possible in these times. I hope that this small example, which is big in spirit, can be repeated across the country and actually bring the community and government closer together.

Weights and Measures Act 1985 (Definitions of “Metre” and “Kilogram”) (Amendment) Order 2020

Baroness McIntosh of Pickering Excerpts

Wednesday 20th May 2020 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate the Minister on so expertly taking us through the order today. I hope noble Lords will spare a thought for my late mother who, having been brought up in Denmark where she was used to metrication, moved to the UK in 1948, where she learned a whole new times table of feet and inches, only to have to revert back to metrication in the 1960s and 1970s.

Following on from what the noble and learned Lord, Lord Hope, said about potential criminal offences, can my noble friend explain what the role of trading standards officers in England will be when this change is applied and what resources are available to them? I cannot imagine the number, so perhaps he can say how many infringements there have been. I am conscious of the fact that trading standards officers, and local authorities generally, will have a huge draw on their resources, particularly with regard to Covid-19. It would be interesting to know how much pressure this will put on them.

My noble friend did not refer to the consultation, but the statutory instrument states that the Secretary of State consulted a range of bodies. Will my noble friend explain how wide that consultation was and what form it took?

There is clearly a different system in Northern Ireland. Can my noble friend give assurances that there are no problems on the border between Northern Ireland and the Republic of Ireland in so far as any different standards that might apply? I assume that Northern Ireland will simply apply this order separately.

What future relationship will we have with the International Bureau of Weights and Measures? We have always been there as a sovereign state. Will that continue on the same basis?

With those few remarks, I welcome the order and the opportunity I have had to learn a great deal more about the metre and the kilogram than I perhaps knew in the past.

British Steel

Baroness McIntosh of Pickering Excerpts

Wednesday 24th July 2019 Lords Chamber

[Lord Henley]

Again, my noble friend is right to point to the competitive nature of the market, and that is true for a great many industries. However, with the industry itself and government working together, we can ensure that we have a competitive part of that industry.

[Baroness McIntosh of Pickering (Con)]

My Lords, my noble friend will be aware that we are currently under the state aid regime of the European Union. What will the position be after 31 October, if we crash out without a deal? When might we expect to see the statutory instrument before this House and the other place?

[Lord Henley]

My Lords, I cannot speculate on what legislative processes might be necessary. We are committing to get a deal before we leave the Union and we want to make sure that we have a deal that will be good for the whole country, including the steel industry.

Climate Change Act 2008 (2050 Target Amendment) Order 2019

Baroness McIntosh of Pickering Excerpts

Wednesday 26th June 2019 Lords Chamber

[Baroness Jones of Moulsecoomb]

Yes, I am well aware that all politicians can get it wrong at various times, and she was wrong there.

What has happened to the Conservative Party in the meantime? We have a Government who resist onshore wind installations, which would supply cheap, clean energy, while supporting dirty, expensive fracking. Fracking is not the answer: it is a way to pump more fossil fuels into the atmosphere and, in the process, allow a rapacious private company, Cuadrilla, to stifle legitimate, peaceful protest. The Government push a steep VAT increase—from 5% to 20%—for new solar battery systems while coal remains at a discounted rate, and propose a third runway at Heathrow and more roadbuilding. We seem to be in a topsy-turvy world where the Government do not understand what is happening.

At the same time, three children—three climate protesters—from the Albany Academy, are being punished for attending the youth strike for climate protests. Children fighting for their future is not a crime. A brave planet protector, Angie Zelter, has been in court this week for protesting with Extinction Rebellion. She says:

“I cannot really understand why those in power have refused to act. After all, it is their world, too”.


It is noble Lords’ world, too. Many will have children and grandchildren who will be massively affected by this issue. I wish noble Lords over there would be a little quieter. Is that possible?

Fine words are not enough to fight erratic weather patterns that cause disasters in rich and poor countries. They are not enough to clean our rivers and seas of plastic pollution, to clean our polluted air, to save the curlew and the red squirrel up north, and certainly not enough to guarantee supplies of clean water, uncontaminated food and to resist global economic collapse. Can we please have some policies that will make a difference? As the protesters outside are saying, the time is now.

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate my noble friend on introducing the order today, including what from our debate are proving challenging targets. I shall restrict my remarks to putting a specific question to my noble friend. Is it not the case that, in the short term, emissions will rise, particularly in the context of hydraulic fracturing for methane gas—an issue raised by other noble Lords? It is generally recognised that it is an inevitable result of fracking that methane will leak out of the natural gas wells at two stages: first, during the well being hydraulically fractured and the methane escaping; and, secondly, during the drill-out following the fracturing, when methane is released into the atmosphere. It is also generally understood that methane can be far more powerful than CO₂ in its role in increasing greenhouse gas emissions, which leads to the inevitable warming of the Earth’s atmosphere.

Will my noble friend take the opportunity in summing up the debate on the statutory instrument this afternoon to explain how we are going to meet our targets to reduce greenhouse gas emissions and global warming by 2020 without inevitably increasing greenhouse gas emissions and global warming by continuing to pledge to fracture in the immediate future?

[Baroness Brown of Cambridge (CB)]

My Lords, I offer the Minister my strongest support for the order.

I remind the House that we are being asked to sign up to a new target, not a new cost. I want to dispel a few misconceptions. The Committee on Climate Change identified the range of costs needed to meet the net zero target as between 1% and 2% of GDP. Those costs are not costs to the Exchequer. Yes, there will be a role for public funding in some areas, such as to avoid a competitiveness impact on the UK manufacturing industry, but the vast majority of the changes will, and should, be delivered through private investment.

I declare an interest as vice-chair of the Committee on Climate Change. In our report, we compare resource cost estimates to GDP to give a sense of scale. It does not follow that the estimates have an impact on GDP. The impact on GDP could easily be positive, as we shift away from using imported fossil fuels, for example, or as we develop newer industries that will boost our productivity and growth as an early supplier of new, low-carbon technologies globally. We need to be very careful in how we think about the numbers.

However, as many noble Lords have indicated, and as the CCC said in its net zero report, changing the target is just the first step and, in many ways, is the easy part. The real challenge will be the swift ramp-up in policy that needs to follow. I have had the honour of being the sector champion for the offshore wind sector deal as part of the Government’s industrial strategy. As the Minister is aware, a major renewable energy conference is under way in London; I believe that he spoke at it today. The conference is exciting; for example, it shows the impact of our investment in offshore wind on UK jobs and companies.

Will the Minister consider a swift and simple indication of the Government’s policy intent to deliver this new net zero target? A simple indication of intent would be removing the six-gigawatt cap for the next round of CfD auctions while offering no additional funding. The offshore wind industry is ready to respond to such an indication. This would be a win-win. It would show the Government’s intention to act swiftly; it would help to create more jobs; and it would deliver more zero-carbon electricity at no additional cost to the Exchequer or the consumer.