Overseas Aid

Debate between Baroness Northover and Lord Harrison

Wednesday 12th February 2014 Lords Chamber

[Lord Harrison (Lab)]

My Lords, will the noble Baroness please ensure that the Government continue rightly to resist the calls to divert overseas aid money to tackle the floods? Will she also take the opportunity to clarify from where the money to help flood victims in the south will come, given the confusion wrought by the recent words of the Prime Minister?

[Baroness Northover]

I thought that the Prime Minister was extremely clear in his support. I can also point out that we have spent £3.1 billion on flood management and protection. However, I think that the noble Lord is right and I welcome the cross-party support. This is a false choice. I received an e-mail this morning from Justin Forsyth of Save the Children. He said:

“To raid this money that literally saves millions of lives would be immoral”.

Surely he is right.

Zoos

Debate between Baroness Northover and Lord Harrison

Monday 8th October 2012 Grand Committee

[Lord Harrison]

In last year’s excellent Commons debate highlighting the economic contribution of zoos to local, regional and national economies, Andrew Rosindell MP proclaimed:

“Zoos are at the heart of everything”.—[Official Report, Commons, 14/12/2011; col. 274WH.]

After Rosindell’s bold assertion, speakers glowed with proprietary pride about the pride of place that each of their zoos has in the heart of their local communities and about the important but unsung job contribution of our some 300 UK zoos, but economic questions remain. Will Her Majesty’s Government explore, with the redoubtable British and Irish Association of Zoos and Aquariums—BIAZA—the zoos’ role in regenerating local communities and, with BIAZA, produce a policy statement on the untapped potential of zoos to aid training, apprenticeships and job schemes in this time of economic downturn? Will the Government recognise the singular regional role of zoos, well illustrated by my local zoo, Chester, which sits at the heart of and astride the north-west and North Wales region, its benign tentacles spreading across the scientific community, the vibrant tourism industry and the education and research community in schools, FE colleges and local universities?

Chester Zoo also promotes forward thinking on the care of the environment. Zoos will have an as yet untapped and influential role in charting our response to climate change. Indeed, zoos’ pivotal role in preserving, conserving and displaying the wealth of wildlife in our interconnected world was brought home to me in a recent visit to Chester Zoo and its black rhinos. Informed of the danger to the world’s black rhino population from illegal rhino horn trading in Far East and African markets, I raised Questions here in your Lordships’ House and actively took up the matter in Vietnam, the centre of the illegal trade and entrepôt for Chinese dealers who trade in the mistaken belief that black rhino horn confers aphrodisiac or medicinal powers on the recipient.

Given zoos’ roles in innovatory thinking within a languishing economy, the incoming coalition’s overhasty abandonment of RDA grants was unwelcome in the zoo world. In the same vein, will the Minister investigate the difficulties that zoos have in accessing lottery and heritage funds? Given that zoos are for the most part independent, self-financing institutions, will the Government look more favourably on zoos as hothouses for enterprise? Indeed, will the Government directly respond to BIAZA’s well argued An Economic Impact Assessment for the Zoo and Aquarium Sector and sponsored, but still relevant, Manifesto for Zoos?

Given the variety of zoos’ functions and footfall, will the Minister assure me that he has had full briefings not just from Defra but from other departments, even from the FCO? After all, panda diplomacy at Edinburgh Zoo panders admirably with the FCO’s wider and wiser engagement with China. In the preparation for replying to this debate, which departments other than Defra spoke of their distinctive interest in the success of Britain’s zoos? Did the Treasury, which might just recognise investment opportunities in active zoos; DCMS, wrongly vested with responsibility for tourism, which is more properly the domain of the Treasury or BIS; or the Department for Education, for instance? Zoos cater for an important group of unengaged children who, cabined, cribbed and confined by classroom teaching, are liberated among zoo animals and their enthusiastic keepers in the classroom of the open air. Zoos demand a multidisciplinary approach from the Government. Will the Minister confess that we have not yet achieved that?

DCLG is important too, given that local authorities are charged with the task, devolved from Defra, of licensing zoos, but local authorities are already wilting under the burden of delivering local services to national standards in a climate of dwindling resources. It is to this issue, the running of zoos generally, that I now turn. A Licence to Suffer is a controversial and contentious analysis of the regulatory protection of animals in zoos. Its methodology is challenged, as are many of its dispiriting conclusions about the state of animal welfare in our zoos. It declares that,

“there are simply too many zoos, too many animals, too little training, too little understanding of the legislation, too little enforcement”.

That should give us pause for thought. In their proper concern for the welfare of the 190,000 animals in our zoos in England, are the Government convinced that we have a suitable supervisory system? If the author of the report, the Captive Animals’ Protection Society, is even one-quarter right, we have much still to do to comply with our own domestic legislation, the Zoo Licensing Act 1981, and the EU zoo directive 1999.

In that regard, it is disappointing to learn that Defra has recently discontinued its instructional workshops for local authority licensing officers who may simply not have the time, expertise and resources to ensure compliance with the local authority’s statutory duties in respect of zoos. The Born Free Foundation makes similar criticisms. Will the Government introduce a more formal mechanism to evaluate and measure the outcomes of the education and conservation programmes that zoos are legally required to undertake? Is sufficient time and expertise given to quality zoo inspections currently undertaken by local authorities? Are sufficient experienced veterinarians available to help the local authorities in that task? Will the Minister ensure a regular national analysis of all zoo inspection reports to monitor compliance with the Zoo Licensing Act, thereby highlighting the efficacy or otherwise of the current inspection regime? Furthermore, is the Minister alarmed that some one in four zoos may fail to respond to licence conditions imposed in the aftermath of adverse zoo inspections? Indeed, does the Minister accept that improved and modern methods of animal welfare assessment should be urgently and universally introduced, and that there is a compelling case for improved science-based, species-specific guidelines when keeping animals in zoos? Finally, will the Minister agree that zoos that repeatedly and wilfully transgress in the welfare of kept animals should be closed? Indeed, what will the Government do to help the zoo world fulfil its own proper ambitions for the highest standards of animal welfare?

I am most definitely not a zoo abolitionist. Indeed, I believe passionately in well run zoos performing their myriad roles of conservation, preservation, education and scientific discovery, and providing sheer enjoyment and wonder to millions of our citizens, including children, by displaying the world’s unparalleled fauna. I am reminded that the imperishable Charles Darwin learnt not only from studying animals in their natural habitats, such as the turtles on the Galapagos Islands, but from his regular visits to the then newly established London zoo. Jenny the orang-utan and the fast-breeding finches each helped him to formulate his far-reaching thoughts on the origins of species and, ultimately, of humans themselves. Zoos, too, are at the heart of science and human understanding.

All the interested parties that I have consulted share common cause in promoting animal welfare, and none more so than the estimable BIAZA. Its regular questionnaires to its membership provide us with a veritable wealth of data on who runs zoos, their viability and economic impact, including the numbers of visitors and scales of entrance charges, zoos’ education role and their marketing strategies and, perhaps most importantly, their conservation and research roles, including field conservation and animal management. The Government should acknowledge and immerse themselves in BIAZA’s treasure trove of zoo facts and figures. In the 2010 survey, BIAZA’s cri de coeur is the crying need for its members to reply diligently to the questionnaires. Only then can BIAZA document the transparency and accountability of zoos as well as celebrating their achievements and calibrating their shortcomings. BIAZA is alive, unlike some of its members, to the imperative to explain to the world—

[Baroness Northover]

I am in the fortunate position that I can see a clock. The noble Lord might like to know that he has exceeded his allotted 10 minutes and perhaps he might bring his remarks to a close. Given the lack of a clock in front of us, I will keep an eye for other noble Lords.

[Lord Harrison]

I was completing my remarks about the Government helping and aiding BIAZA in its task of bringing in the very best standards of zoo management. I have not been able to touch on the European angle, which I had hoped to do, but I look forward to hearing from colleagues examples of the good that zoos do for our communities, as well as what the Government can contribute to this important task, which I think all of us around this Table share.

Corporate Governance and Accountability

Debate between Baroness Northover and Lord Harrison

Tuesday 5th July 2011 Lords Chamber

[Lord Harrison]

My Lords, the UK corporate governance framework is built on the principle that shareholders exercise oversight of company boards. The publication last year of the UK stewardship code marked a recognition that this ownership role needed to be taken more seriously by the institutional investment community. Indeed, I believe the code should include oversight of environmental, social and governance issues, not simply because it is the right thing to do or because these issues have a material impact on company returns, but also because it translates into a competitive advantage for business. Sadly, shareholder scrutiny does not always work, as in the case of the BP oil spill due to lax safety standards. Two months before that disaster, a shareholder resolution on tar sands—a similar method of oil extraction to deep-water drilling—which was put forward to increase disclosure of the risk involved, was rejected by 90 per cent of shareholders. As the noble Lord, Lord Freud, commented in a recent debate,

“some pressure on the BP board by its shareholders in relation to environmental issues, might have been especially valuable to the company”.—[Official Report, 15/3/11; col. GC 28.]

I later asked a question of the noble Lord, Lord Freud, along similar lines. He indicated that the Government had no ideas for new regulations in the current climate but they are open to creative ways of improving the quality of disclosure. So I ask the Minister: are the Government continuing to explore non-regulatory ways to encourage better reporting by pension funds, and what assessment, if any, have the Government made of the adequacy of the reporting at present? We need to improve matters.

The UK stewardship code encourages fund managers to disclose their voting records and the Government have confirmed that it is important that all institutional investors disclose their voting. Voting and engagement on social and environmental issues is an important part of an investor’s toolkit for managing risk that could affect savers and yet, after years of voluntary codes, only 64 per cent of fund managers and 21 per cent of pension schemes publicly disclose their voting standards. The Government have reserve powers to make voting disclosure mandatory. Are they thinking about it and under what circumstances might they contemplate it? Are they open to ideas of improving the quality of pension funds’ disclosures on the management of environmental and social risks? Perhaps the Minister could tell us.

Another, besetting problem is the short-term approach to these matters. As Paul Abberley, CEO of Aviva Investors, recently put it:

“If you are investing in a company with a long-term time horizon, it very much matters to know about sustainability issues, but if you are taking a time horizon of an average holding of six weeks, you might take the view that there may be a time bomb ticking but it is unlikely to go off in my holding period”.

I am very pleased that Vince Cable, the Secretary of State, has announced a review of economic short-termism and published a call for evidence on a long-term focus for corporate Britain. In addition, he has appointed Professor John Kay to oversee that with questions such as how best to ensure that the timescales over which companies and fund managers operate match the interests of clients and beneficiaries. Equally, how do you establish the most effective means of boosting transparency for clients, underlying beneficiaries and companies themselves?

Another worry is the misinterpretation of the fiduciary duty. The FairPensions report, Protecting Our Best Interests: Rediscovering Fiduciary Obligation—I am pleased to acknowledge the help from FairPensions for this debate—was published in March 2011 and received a good hearing from Ministers Ed Davey and Steve Webb. I wonder whether the Government will respond to this, to encompass and clarify. Howard Pearce of the Environment Agency pension fund argues that,

“all pension funds will need to adopt a climate change-proofed financial investment strategy in the future to enable them to fulfil their fiduciary duties”.

However, fiduciary duties should demand an enlightened approach to social and environmental issues, but we all know that too often they are invoked to justify the reverse. Pension fund members are told that their fund cannot be concerned with stopping climate change because it has a fiduciary duty to maximise returns. On closer analysis, that seems daft.

I am a great supporter of narrative reporting. I think it is an improvement on what we have had before in company reports. Nevertheless, we have problems relating to unreliable information. Many investors say that the lack of verification makes it difficult for them to rely on narrative reports, which can be misleading or present a rose-tinted view of the world. The OFR included an enhanced audit, requiring a higher standard of verification than is currently the regime. Sometimes it is up against incomplete information. Many companies focus on peripheral corporate citizenship activities undertaken during the year, such as volunteering—I am wholly in favour of volunteering—rather than on key social and environmental risks to their core business such as water, security and scarcity. No official guidance has been published on what constitutes an adequate report. Perhaps the Minister can comment on that.

A third problem is inadequate enforcement. The regulator has judged that two-thirds of annual reports fall short of legal requirements in relation to principal risk, yet in 2008-09 it did not take enforcement action against a single company. The regulator is not resourced to take active enforcement action and generally responds only to complaints from investors and NGOs. In the light of that, I ask the Minister whether the Government can confirm that they still intend to bring forward proposals specifically to drive up the quality of social and environmental reporting, as indicated in the coalition agreement. Do the Government accept that better reporting will achieve their objective only if investors have confidence in it? Do they therefore agree that any new reporting regime must contain improved mechanisms for guaranteeing the reliability of information, whether through enhanced audit or more robust enforcement? I declare an interest as the vice-chairman of the All-Party Group on Corporate Governance.

In conclusion, I ask the Minister whether she can put the matter in this frame. Sometimes we worry about the introduction of legislation but, to my mind, and in my assessment of it, we have to create a view that consideration for environmental and social and corporate governance is not a chore but a cheerleader for a better approach to what a company is doing. It can enhance its competitiveness within the market if it complies not only in a tick-box way, but with verve, inspiration and interest. I ask the Minister whether, when they think about it deeply, her Government are capable of leading the charge of encouraging companies to take this more positive attitude, which I think will carry with it the appropriate approach to something which is very important to investors, to shareholders and to pension fund holders for the future. I am very grateful to all those who are to contribute to this debate. I look forward to the Minister's reply.

[Baroness Northover]

I remind noble Lords that this is a time-limited debate. When the clock shows “3”, noble Lords will have had their time.