Financial Services Bill

Debate between Baroness McIntosh of Pickering and Lord Blunkett

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Monday 22nd February 2021 Grand Committee

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

My Lords, I am delighted to follow the noble Lord. I would like to support the case for introducing a duty of care and look forward to hearing from my noble friend as to why in the Government’s view it may not be needed.

I will focus my remarks on Amendment 72, so ably moved by the noble Baroness, Lady Bowles, and in particular on subsection (2) of the proposed new clause. It concerns me greatly that there is still a huge area of unregulated provision of financial services here, in particular in the case of young people who, after they have graduated and are looking to pay off their student loans, will be relying on their banking facilities. It does seem that we need either a duty of care or, as the noble Baroness, Lady Bowles, set out in subsection (2) of the proposed new clause, some means by which we indicate to potential consumers and customers exactly what the situation is. I find that this area is compellingly in need of greater regulation—or, if not that, then the pointing of actual customers or potential future customers towards acting in this regard.

I find it extraordinary what information is provided to any of us, and in particular to young people. The noble Lord, Lord Sharkey, did a great service in setting out not just PPI but a number of other irregularities—at the very least—that have come to light in the last five or 10 years that need some form of redress in order to close this particular loophole.

We are in an extraordinary situation where there are a number of non-regulated financial services. In particular, Amendment 72 would seek to redress this. But also, Amendments 1 and 4 imposing a duty of care have many strengths to commend them. I look forward to my noble friend in summing up giving the reaction of the Government to the proposal for such a duty of care in the circumstances set out therein.

[Lord Blunkett (Lab) [V]]

I am very pleased indeed to join in this important debate. The noble Lord, Lord Sharkey, set out the situation in the macro field extremely well and I am pleased to support the speeches that have already been made by a number of noble Lords.

I will concentrate on two things. The first is the issue of protection from exploitation with the development of cybercrime. I hope we will be able to come back to this in Committee and on Report with respect to the risks that people are put into because of the lack of care within the whole of the financial services sector. Secondly, very small businesses and partnerships are excluded from redress, as the noble Baroness, Lady Bowles, mentioned. This is also is relevant to Amendment 129, moved by the noble Lord, Lord Holmes of Richmond.

On the first issue, in relation to cybersecurity, there is a growing trend that those who are affected keep quiet rather than reveal what has happened. This is a real danger. If, as I hope, we come out of the present dip in relation to financial services globally because of Brexit, we will be able to present to the world a marketplace which is both effective and forward looking—and is also secure. A duty of care to both individual customers and to small and medium-sized enterprises is a critical element in taking this Bill forward and strengthening the measures that exist there. I will not egg the measures that I think are necessary this afternoon, because there will an opportunity to come back to them. But I will just say that this is a growing area of real concern. An improved mandate for those operating in the financial services sector from the FCA would be very welcome indeed.

On the issue of small and medium-sized businesses and small partnerships, and the relationship between them and individual consumer, it is little known that access to the Financial Ombudsman is confined to individuals rather than small businesses and partnerships. What was said by the noble Lord, Lord Holmes, and also the noble Baroness, Lady Bowles, was highly relevant here. It backs up the need for clarity in terms of how we deal not only with prevention but with redress.

I give one small example, which I took up the with the noble Lord, Lord O’Shaughnessy, when he was at the Department of Health. To his credit, he saw the wisdom of trying to bring about change. As the noble Lord, Lord Holmes, has described, it was not received well at the time because of the struggle that was going on post the Brexit referendum and because of the difficulties the Government were facing. We have dealt with banks and financial services, but we need to concern ourselves with insurance as well. Perhaps now is an opportune moment to deal with the situation where an insurance company is taken over and the new provider offers a slightly revised agreement which is sent out without highlighting the key changes that have been made.

For instance, in cover for physical ailments and physical damage because of accident, there is no change, but in terms of absence from work and insurance by a partnership with more than 10 partners insuring together, the mental health clauses are changed to make any payment dependent on having to gain, within 12 weeks, the sign-off of a psychiatrist and a clinical psychologist. Anyone with any knowledge of this area will know that that is an impossible ask. Had it been highlighted to the partnership, it would have been able to look elsewhere for an insurer that was not going to exploit the market as this company did.

The partnership could not go to the ombudsman. It would have been entitled to if each individual partner had insured themselves, but because there were more than 10 of them signed up to the insurance contract, that was not possible. We need to put right nonsense of this kind and ensure that those making enormous amounts of money, which they will continue to do, do not do so at the expense of individuals or small and medium-sized enterprises.

Agriculture Bill

Debate between Baroness McIntosh of Pickering and Lord Blunkett

Committee stage & Committee: 6th sitting (Hansard) & Committee: 6th sitting (Hansard): House of Lords
Thursday 23rd July 2020 Lords Chamber

[Baroness McIntosh of Pickering]

My Lords, it is a pleasure to follow the noble Lord, Lord Wigley. I shall speak only briefly on this group of amendments in order to probe my noble friend the Minister on when we will have the Government’s response to the recent consultation on the activities of the Agriculture and Horticulture Development Board. There was overwhelming support for keeping the existing levy, and I say to the noble Baroness, Lady Jones of Moulsecoomb, that I do not think that farmers would welcome another levy in addition to the existing one. Support for the levy is fairly overwhelming at 66%, but it is important that we review the purposes for which it is used.

I want to place on the record the difficulties that abattoirs and auction marts are experiencing at this time because of Covid-19. I hope that we appreciate those difficulties and sympathise with farmers who, as sellers, are still not allowed to enter the auction mart because, as I understand it, the restrictions are still in place. Only the buyers are allowed to do so and if I was a livestock owner, I would find not being there very worrying. I would be interested to see the Government’s response to the consultation. I do not think that I have missed it—the website sets out only the responses that were submitted to the consultation.

Looking ahead to when we discuss other amendments to the Bill, I hope that part of the levy will be used for marketing and for export. I am sorry to raise my Danish connections again, but I have been hugely impressed by how the Danes use their levy, which is raised from livestock and other producers and then quite substantially matched by funding from the Government, to run marketing centres. I think that we are learning from that because we opened a marketing centre in Beijing and saw an immediate incremental rise in our exports of those parts of the pig that we do not like to eat. With those few words, I shall wait to hear my noble friend’s response.

[Lord Blunkett (Lab) [V]]

My Lords, it is a pleasure to follow the noble Baroness, Lady McIntosh, given her historic links to Yorkshire. It is not surprising that she has advocated a kind of danegeld in terms of this levy.

I am intervening in this debate because my name was not on the speakers’ list for the debate that took place earlier in Committee in which my noble friend Lady Mallalieu drew attention to the plight of small and niche abattoirs, many of which have gone out of business. This issue was flagged in the long-standing Radio 4 series “The Archers” when people engaged in a dialogue on it. I had been thinking mischievously of moving an amendment to try to get dialogue back into “The Archers” via this Bill. However, I take note of the stricture of the noble Baroness, Lady Bakewell, that many people have spoken at great length in these debates and so we are moving slowly through the Committee stage. For example, I spoke in the Chamber on 7 July and again at 11.05 pm on Tuesday night.

The point is that we need to coalesce the debates that have taken place. On Tuesday, I said that I have learned a great deal by following the debates and listening to those who have a great deal more knowledge than I do. My early time in politics was mainly informed by listening to my predecessor in the Sheffield Brightside constituency. His home and roots were in north Yorkshire, and his campaign to protect the rights of tenure of farm workers was successful. I come at this as a novice, but I believe that unless we get some clarity, both today and on Tuesday, on how we are going to take the Bill forward on Report, it is unlikely to see the light of day for a very long time.

I say to the mover of the amendment, the noble Baroness, Lady Jones, that I hope that in debating this levy, we take into account an earlier debate in Committee that revealed, to my surprise, the very small amount of land in the UK that can be described as being of grade one quality. Be careful what you do when allocating a levy, given the impact it could have on the different nations and geographic regions of the UK, as well as avoiding proselytising for vegetarianism.