(11 years, 2 months ago)
Grand CommitteeI am sure that shortly the Minister will give us an assurance that he will provide the figures that my noble friend Lord Howarth asked for in proposing his amendments. I also ask, in relation to this particular point, whether he can provide the Committee with any assessment that his department has made of the effect on insurers’ balance sheets of either of these two amendments—in other words, the one that has the start date in February 2010 and my noble friend Lord Howarth’s amendment, which would not set a date at all.
I would like to offer the Minister a way of reassuring us on this because we may be talking at cross-purposes.
Obviously, if an insurance company finds that its annual costs of doing business by staying in the market and providing active employer’s liability insurance are going to be higher, it will need to make sure in its usual planning that it has the resources available to enable it to pay the annual costs of doing business to stay in that market. That is not the same thing as saying it must reserve formally against liabilities that it has. That, as I understand it, is the Minister’s main argument as to why they could not have begun this process earlier. If it were about reserving for liabilities, there are clear regulatory requirements and negotiations with auditors that would constrain the point at which the insurance company could start doing this.
However, if we are simply looking at a higher annual cost—and I am not suggesting that that is not a relevant or material consideration to the company—of remaining in the market which is unrelated to the nature of the specific policies that were written, there is presumably no reason why the insurance company could not have planned for that by reading carefully, as I am sure it did, the document published by my noble friend Lord McKenzie. This showed clearly that the Government wished to intervene in this area and the options on which they were consulting, all of which would clearly have required the industry to pay out. It was clear that that was coming down the track.
A way for the Minister to solve this would be to answer my other question. Could he provide—either now or by the next sitting—some evidence of an insurance company that has reserved since the announcement was made in 2012? There must be companies that have a 2012 financial-year end date. If the Minister is right, insurance companies will presumably have reserved. Perhaps he could share that with us.
My Lords, perhaps I may also try to console the noble Lord, Lord Cormack, about progress and change. My point concerns the advantages, as I see them, that would ensue from this technology helping Ministers at the Dispatch Box. During the processing of complex legislation, we have often seen Ministers in this place and the other place at a loss. The officials write too slowly for them to get the information and all too often Ministers have to agree to write in response to particular questions. This technology offers Ministers the possibility of being able to respond at the Dispatch Box, thus giving your Lordships the opportunity to scrutinise legislation more thoroughly and instantaneously, which, after all, is the historical purpose of your Lordships’ House.
My Lords, I am one of the people who has enjoyed being able to use a tablet in the ways described in the pilot. However, I ask the Chairman of Committees for an assurance. If noble Lords are to use this equipment in the way in which the committee intends—one of the considerable advantages being that we will save a lot of paper in this House—it will be necessary to make it easier for Members to navigate the parliamentary website so as to find more easily the kind of information that we use. Can the noble Lord give us any encouragement that progress is being made in that direction?