Craftspeople: European Union Travel and Trade

Baroness Wheatcroft Excerpts

Monday 13th May 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I refer the noble Lord to my colleague in the other place, Greg Hands MP, who is the Minister for Europe. He is spending an increasing amount of time in European capitals. We also have 300 embassy staff working in the EU on deal-by-deal arrangements with countries to help, for example, our musicians and crafts folk. It is working very well.

[Baroness Wheatcroft (CB)]

My Lords, craftspeople, like all other travellers to the EU from the UK, face increasing delays again in the autumn when new strictures come in, with new requirements for fingerprinting, et cetera. Can the Minister bring the House up to date with what is happening on that front? Will there be yet more postponements?

[Lord Offord of Garvel (Con)]

I thank the noble Baroness for that. The craft sector is being supported. My own department, DBT, is delivering a programme of trade promotion activity in Europe and elsewhere. We also have a new means of trade, by way of digital, as well as by having to go there. Perhaps our carbon footprint has been reduced by making fewer trips to some of those shows. For example, we will be doing one in Dubai in July, for Middle East design and hospitality week. We are taking a group of craftspeople to sell their wares.

Digital Markets, Competition and Consumers Bill

Baroness Wheatcroft Excerpts

Committee stage
Wednesday 7th February 2024 Grand Committee

Moved by

[Baroness Wheatcroft]

212: After Clause 308, insert the following new Clause—
“Consumer information: vote reporting(1) The FCA must make rules requiring relevant FCA-regulated persons to—(a) give consumers information on request in a machine-readable form about the exercise by the persons or on their behalf of all voting rights attached to assets in which the consumers have an interest, including in respect of any specified description of scheme or investment vehicle, within 30 days of that request being received;(b) have regard to guidance in respect of the format of the information provided under subsection (1)(a).(2) The FCA may discharge the duty in subsection (1) in respect of—(a) beneficiaries of occupational pension schemes within the meaning of section 1 of the Pension Schemes Act 1993,(b) beneficiaries of the local government pension scheme,(c) clients of personal pension schemes within the meaning of an order under section 22 of Financial Services and Markets Act 2000, and(d) clients of stakeholder pension schemes within the meaning of such an order,by making rules requiring relevant FCA-regulated persons to give the information described in subsection (1)(a) to a relevant intermediary, or make it publicly available.(3) In this section—“relevant FCA-regulated persons” means—(a) persons managing investments within the meaning of an order under section 22 of FSMA 2000, including the activity described in paragraph 6 of Schedule 2 of that Act, and(b) persons effecting or carrying out a contract of insurance within the meaning of an order under section 22 of FSMA 2000;“relevant intermediary” means—(a) in respect of subsection (2)(a), the trustees of the scheme,(b) in respect of subsection (2)(b), an administering authority of the scheme in which the consumers have an interest, and(c) in respect of subsection (2)(c) and (2)(d), the managers of the scheme.”Member’s explanatory statement
This amendment would require the FCA to make rules requiring on-request standardised reporting on company voting by investment managers and life insurers, and to provide guidance to firms on the format of that reporting. The FCA could discharge that duty in respect of the members of pension schemes by passing the information to the trustees, administering authorities and managers of the schemes, or to publish it.

--- Later in debate ---

[Baroness Wheatcroft (CB)]

My Lords, I declare my interests as listed in the register, and I apologise that I could not attend Second Reading. I will speak to the single Amendment 212. Among the Bill’s declared purposes is

“to make provision relating to the protection of consumer rights”.

This amendment is concerned with one specific but important consumer right: having visibility as to how one’s money is being used. I believe that every investor, big or small, should have easy access to see how their shares are being voted, and this amendment would be a big step in that direction.

I gratefully acknowledge the support of the noble Baronesses, Lady Sheehan and Lady Altmann, who believe in the principle at stake here. I thank the fintech firm, Tumelo, for its help in drafting the amendment. It has the support of the Association of Member Nominated Trustees, which represents board members of 700 pension schemes, accounting for more than £1 trillion of assets. That is quite some weight.

--- Later in debate ---

[Lord Offord of Garvel (Con)]

I thank the noble Baroness, Lady Wheatcroft, for Amendment 212, which would require the Financial Conduct Authority to make rules requiring regulated persons to give consumers certain information regarding voting rights attached to assets in which the consumer has an interest. I also thank the noble Baroness, Lady Sheehan, the noble Lords, Lord Clement-Jones and Lord Leong, and my noble friend Lord Lucas for their contributions.

I appreciate the strength of feeling on this issue. I suggest that we speak to the Treasury and write to the noble Baroness on a number of her questions, in particular to draw on the comparisons with the US, with which we are so close on so many things, to understand what its experience is and where we are in comparison.

The Government recognise that transparency is crucial to effective stewardship and corporate governance by pension and other investment funds. We also acknowledge the argument that the existing voting disclosure framework is not working as well as it could. That is why, as the noble Baroness mentioned, the FCA set up the independently chaired vote reporting group in November 2022, following recommendations made by the task force on pension scheme voting implementation to develop a standardised and decision-useful framework for voting disclosure.

It is important to take a proportionate approach in implementing changes to vote reporting. Mandatory voting disclosure would be a significant departure from the FCA’s existing rules on voting disclosure. It is important that we have a globally competitive asset management sector. This means designing and implementing regulatory change in a way that considers regulatory costs as well as benefits. That is why the Government support the FCA’s approach to work closely with industry stakeholders and build consensus.

The group has made significant progress and recently consulted on its proposals for a comprehensive and standardised vote reporting framework. The Government believe that it continues to be more appropriate to wait for the group’s final output before requiring the FCA to produce further rules and regulation. I can assure the noble Baroness, Lady Wheatcroft, that, when reviewing the group’s final proposal, the Government will carefully consider whether its recommendations go far enough to address the existing issues around transparency for consumers that the noble Baroness so eloquently described, as well as what further action may be appropriate. We therefore hope that she will feel comfortable withdrawing her amendment.

[Baroness Wheatcroft (CB)]

I thank the Minister for what I think was an unusually conciliatory reply. I am quite cheered by what he said. I understand that we will wait to see what the FCA comes up with. I cannot say that I am overly optimistic about the FCA being effective with anything other than mandatory reporting—that will require the Government to act—but I look forward to seeing that action before too long. I beg leave to withdraw.

Amendment 212 withdrawn.

Post Office Executives: Bonuses

Baroness Wheatcroft Excerpts

Thursday 11th May 2023 Lords Chamber

[The Earl of Minto (Con)]

My Lords, management clearly has a very serious responsibility, as the Post Office provides all of us, throughout the entire land, with some extremely valuable services. The specific management team in place has apologised and, while this is not the appropriate time to go into great detail about what might happen to it, it must be fully aware of the errors that it authorised.

[Baroness Wheatcroft (CB)]

My Lords, every member of that board should have been aware of the bonuses paid and the reasons why they were. If they were not aware, they were failing to do their duty, but, if they were, they showed appalling judgment. Is the Minister content that they should stay in office for even two more weeks?

[The Earl of Minto (Con)]

I entirely agree with the noble Baroness’s sentiment. Certainly, in my experience, every member of the board is fully aware of exactly what the remuneration package is for each individual director and everyone within the organisation, whether it is fixed or bonus-related. Having said that, at this moment it is important that the two reviews under way take place. A decision can then be made at the appropriate time.

CPTPP: Conclusion of Negotiations

Baroness Wheatcroft Excerpts

Wednesday 19th April 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Baroness for raising that point. It is clearly important to raise palm oil, and I am sure it will come up in later debates. However, I believe—I am happy to write to the noble Baroness to confirm—from memory that sustainable palm oil imports into this country have risen from about 16% in 2010 to nearly 80% now. The reforestation of Malaysia and its pledges to ensure that it runs sustainable palm oil production have been very much wrought into the discussions we have had with it. All members of the CPTPP are parties to the Paris climate accord, and there is an environmental chapter.

In other areas which were covered earlier in this debate by noble Lords, such as animal welfare, we would like to think that we have actually informed the debate, particularly with countries such as New Zealand and Australia. In both those countries, we have now seen whole new swathes of legislation around animal rights that may even bring their standards to a level higher than our own. That is the sort of concept around the engagement of these treaty negotiations that yields common benefit for all.

[Baroness Wheatcroft (CB)]

My Lords, I share the enthusiasm of the Minister for trying to replace some of the exports lost through Brexit, and I listened to what he said about static targets. However, the Minister for Trade, Kemi Badenoch, said she could not stand the estimate of 0.08% because it was based on “stale” figures from 2014. If that is true, could the Minister explain why his department is using figures that are 10 years old?

[Lord Johnson of Lainston (Con)]

I am very grateful to the noble Baroness for raising this point. Clearly, there will be a lot of discussion around how to measure, if we can, the benefits of a free trade agreement. As I believe I mentioned—I apologise for not being clear enough—these figures are static modelling figures rather than forecasts, so they rely on significant quantities of historic data. It is often a difficult position to be a government Minister at the Dispatch Box when you are reliant entirely upon government figures which do not necessarily chime with the mood music. However, it is important to look at all the different statistics that will give us the information we need to have a sensible debate. This is not a forecast; this is a static model. The forecast, I believe, will be extremely positive, as will the impact assessments. I reiterate again: the experience of New Zealand in simply one of its trade deals was 10 times greater than any model that it had created. That is the sort of statistical analysis I look forward to seeing.