Directors’ Pay
Debate between Baroness Wilcox and Lord Razzall(12 years, 6 months ago)
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Lord Razzall
My Lords, I thank the noble Baroness for introducing this important Statement. I have three questions. First, does she accept that the Statement applies almost entirely to companies owned and run with employees in the UK? What is her view on the large number of FTSE 100 companies that have shareholders and employees primarily outside the United Kingdom? The Statement says that there has been a broad national debate about shareholder activism. Has any consultation taken place with companies run from Kazakhstan or the United States that are UK FTSE 100 companies? How does she think these proposals will go down with them?
Secondly, I will touch on the question of exit payments that was raised by the noble Lord, Lord Stevenson. I support and understand the Government’s position that they do not wish shareholders to have the right to veto the individual contracts of people who are taken on for employment, but I am not entirely sure that that should apply to exit payments. Contrasting the Statement in my left hand with the Explanatory Notes in my right, there seems to be a slight confusion. The Statement says that on exit payments, companies will not be able to pay more than shareholders agree. Will the Minister confirm that that is not exactly true? The proposal is that the company will say something like, “We will never pay more than two years’ salary in an exit payment”, or, “We will never pay more than the contractual entitlement of the employee”, or, “We will reward performance but not lack of performance”. Does the Minister agree that the Statement is slightly misleading in suggesting that shareholders have a right to veto exit payments?
The third point is slightly facetious, and the Minister may well have answered it already. As we know, her Secretary of State has been described in the Daily Telegraph by Mr Adrian Beecroft as a crypto-socialist. The criticism that the noble Lord, Lord Stevenson, has made has probably proved that that is not the case. Will the Minister confirm that, as far as she is aware, the business community broadly welcomes these Statements and regard them as coming from a Secretary of State who is significantly pro-business?
Baroness Wilcox
In answer to my noble friend’s first question, company law captures only UK companies. However, overseas companies must comply with the listing rules. We will work with the FSA to consider how the listing rules need to change in view of these reforms. I hope that is a helpful answer. In answer to his second question, companies will be able to make exit payments only within the envelope that shareholders have approved and it will be up to the shareholders to agree.
I cannot imagine that my Secretary of State was ever called a crypto-socialist by anybody—was he? I know that business very much welcomes what we are doing at the moment. Shareholders and business welcome it, and it is with them that we have been talking and negotiating to make sure that we can put this into the Bill that is coming up and that we can introduce secondary legislation so that we can get this moving as soon as possible. Everybody seems to agree that things must change.
Employment Tribunals
Debate between Baroness Wilcox and Lord Razzall(12 years, 6 months ago)
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Baroness Wilcox
I will have to come back with the answer to that as I do not have it at the moment. I will make sure that a copy is put in the Library so that everyone else gets the answer too.
Lord Razzall
My Lords, picking up the remarks of the noble Lord, Lord Hoyle, I am sure the noble Baroness will recognise that streamlining the tribunal procedure is a little bit of a sideshow in relation to the fundamental recommendation of Adrian Beecroft regarding no-fault dismissal. Is she prepared to indicate where the Government’s thinking lies on that proposal which, as she knows, her Secretary of State described as “bonkers” in the Sun?
Baroness Wilcox
The idea of compensated no-fault dismissal is one of a wide range of employment law areas covered by the Beecroft report. We are already taking forward several areas set out in the report as part of the employment law review. Of his 23 main recommendations, we are taking action on 17, but we have no plans to take this forward any further.
Businesses: Debt
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
It is a long-standing commitment of the Government not to gold-plate European Union legislation by implementing it early. We have confirmed many times our intention to transpose that directive, thereby providing business—especially smaller business—with certainty. We are making sure that it is written as it should be written and in a way that we think it can be enforced. As we know, within the European Community, our problem is that our Anglo-Saxon law here is not necessarily the same law as applies to some of the other countries. Therefore we have to be very careful that what they are going to do is enforceable.
Lord Razzall
Now that the noble Lord, Lord Pearson of Rannoch, is in his place, is the Minister prepared to give any more detail as to exactly how the implementation of this European directive will help small and medium-sized enterprises on this topic?
Baroness Wilcox
The fact that we are being asked to substantially write it is an enormous help. It means that we can write it following the legislation that we already have, which I have already explained and on which I complimented the previous Government for putting in place. The most important thing that we can get out of this is a requirement that local public authorities have to pay within 30 days. It is very important to get that in place, and it is certainly worth taking the time to get it right.
Finance: Equity Markets
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
On the Government’s view on shareholder/worker representation on company boards and committees, we decided not to include such proposals in the packet of measures for greater transparency. However, Professor Kay’s independent report will inform all the Government’s judgments from this point.
Lord Razzall
My Lords, although I totally respect the view of the noble Baroness on premature discussion of the Kay report, does she not agree—a point with which I am sure the previous noble Lord would agree—that if markets are to take a longer-term view of investments, the fund management industry needs to change its method of remuneration so that fund managers are not rewarded by the short-term performance of the companies in which they invest?
Baroness Wilcox
My noble friend is right. We are looking at how the long-term proposals can be best served. Short-termism can be very advantageous, but it can also be dangerous in the long term, and we are only too delighted to support him in his view.
Public Bodies (Abolition of the National Endowment for Science, Technology and the Arts) Order 2012
Debate between Baroness Wilcox and Lord Razzall
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)
My Lords, let me start by reassuring noble Lords that, while this order will abolish the National Endowment for Science, Technology and the Arts as a non-departmental public body, NESTA’s future is secure. It is being reconstituted as an independent charity with the National Lottery endowment transferred to a separate charitable trust. There is no anticipated negative impact on NESTA’s work as a result of these changes.
NESTA was established by the National Lottery Act 1998 with an endowment from the National Lottery, currently valued at £321 million. Over the past 14 years, it has promoted innovation through a combination of activities. In recent years, its focus has been on delivering practical programmes, such as the Big Green Challenge, providing early stage capital to innovative companies and carrying out research into innovation.
NESTA’s future was considered as part of the Government’s public bodies reform programme and our commitment to reduce the number and cost of quangos. NESTA performs a valuable function—it delivers highly regarded programmes and research—and we wanted to see its activities continue, but it did not need to remain a public body. Therefore, the Government put forward a proposal to abolish NESTA using the powers of the Public Bodies Act, which, as noble Lords know, received Royal Assent in December.
BIS launched a consultation in October last year on the proposal to change NESTA’s status. Some 85 per cent of responses agreed with the preferred policy option as the most suitable choice for NESTA. Furthermore, more than 90 per cent of responses agreed that NESTA would benefit from increased independence from government. BIS carried out a full impact assessment of the transition and it is estimated that there will be a net benefit over 10 years of £1.84 million.
I should like to give noble Lords more details about the changes once NESTA is abolished as a public body. It will be reconstituted as an independent charity with the National Lottery endowment held in a charitable trust. Both the charity and the charitable trust have already been registered with the Charity Commission and the objects of the charity are sufficiently broad to allow NESTA to continue with current activities. If the noble Lord, Lord Warner, were here, I am sure that he would be pleased to note that, as he asked during the passage of the Public Bodies Act whether NESTA’s activities would be accepted as a charitable purpose by the Charity Commission.
All property and rights relating to the National Lottery endowment will be transferred to the charitable trust. All NESTA’s other property and rights, and its staff, will be transferred to the independent charity. The new NESTA charity is the sole trustee of the charitable trust and will apply returns from the endowment to advance the charitable objects of the trust. The NESTA charity also plans to obtain income from other sources, which it can use for its wider objectives. A final transfer scheme will be laid in the House once the order is made and the transfer will take place at the same time as NESTA is abolished. Subject to parliamentary clearance, the changes will come into effect on 1 April.
In order to maintain assurance for propriety of the way in which the National Lottery endowment is used, the Government are currently appointing a protector of the trust. The protector will have a fiduciary duty to ensure the integrity of the administration of the trust and the propriety of its procedures. He or she will be able to report any matters of serious concern about the way the endowment is being used to the Charity Commission and to Ministers. This model is already in use by the Millennium Awards Trust.
Following its change of status, NESTA will remain a UK-wide organisation and I understand that it is keen to increase its level of activity in Scotland, Wales and Northern Ireland. As required by the Public Bodies Act, we have obtained the consent of the Northern Ireland Assembly, and the Scottish Parliament will be considering our order on Wednesday. We have also consulted the Welsh Government and continue to keep them informed of progress. I commend this draft order to the Committee.
Lord Razzall
My Lords, I welcome the explanation given by the noble Baroness. Of course, I fully support this proposal, as does, it appears, virtually everybody who has been consulted. My one question relates to the retention of the endowment within the public sector. As I understand it, the Government do not want to transfer the endowment out of the public sector, as the endowment is held more in less in government securities and, if those were to be transferred out, that would lead to an increase in the public sector net debt. Could the noble Baroness assure me that the retention for national accounts purposes of the endowment in the public sector does not imply any form of control of those assets by the Treasury? Clearly, the whole purpose of doing this is to get this out of the public sector entirely. Will she assure me that this is purely a technicality and that there will be no attempt by the Treasury to control that flow of money?
Companies Act 2006 (Amendment of Part 23) (Investment Companies) Regulations 2012
Debate between Baroness Wilcox and Lord Razzall
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)
My Lords, investment companies can benefit from a special distributions regime in the Companies Act 2006 if they satisfy conditions. These draft regulations amend those conditions to ensure that they remain in step with tax rules, which have recently been amended.
Investment companies are professionally managed, pooled, risk-spreading investment vehicles. They are publicly listed and invest in a diversified portfolio of shares, securities or other assets with the aim of providing a return to their investors.
These draft regulations amend the Companies Act to ensure that company law and tax rules work in harmony. Part 23 of the Companies Act regulates distributions by a company to its shareholders. It aims to protect the company’s creditors by ensuring that funds are available to meet the company’s debts in the event of it winding up. The most common form of distribution is the payment of a dividend.
The Companies Act allows investment companies to benefit from more relaxed distribution rules compared with other public companies when making distributions out of revenue profits. Investment companies do not have to comply with the net asset test, which permits a public company to make a distribution to its shareholders only if the amount of its net assets is at least equal to its called-up share capital and those reserves not available for distribution. Instead, an investment company must meet a condition that requires the company’s assets to be at least equal to one and a half times the aggregate of its liabilities to its creditors.
This concession for investment companies takes partial advantage of an option in the second company law directive. It recognises that during periods of falling share prices, investment companies might not be able to pay dividends to their investor-shareholders if required to satisfy the net asset test. This would undermine the purpose of these companies.
These draft regulations allow more types of investment companies to qualify for the relaxed distributions regime. It simplifies some of the conditions to ensure that they are compatible with the recent changes to the tax rules. They remove a restriction that prohibits investment companies from paying dividends out of capital profits. Investment companies, like other plcs, will be able to pay dividends out of capital profits and still benefit from the relaxed distribution rules. This change will allow the tax rules to work as intended.
The amended tax rules may require investment companies to distribute a proportion of their capital profits if they are to benefit from the corporation tax exemption. BIS, HMRC and the Treasury issued a joint consultation document on 27 July 2010 and a summary of responses was published on 9 December 2010. The draft regulations were published on the BIS internet site on 4 November 2011. A full impact assessment has been completed, stating that these regulations have a zero net cost to business. While we have been unable to monetise the benefits to business, the investment industry considers these amendments to be beneficial. Companies choose to opt in to the investment companies regime and will do so only if they consider that the benefits exceed the costs.
In summary, these regulations amend the existing rules for investment companies to broaden the definition of “investment company” and remove unnecessary restrictions. They are necessary if the recent changes made to the tax rules for investment companies are to have their full effect. This is a deregulatory measure that has been warmly welcomed by the investment industry, and I therefore commend it to the Committee.
Lord Razzall
My Lords, I welcome these regulations. It is clearly not sensible that HMRC should propose amendments which, unless the Companies Act is changed, cannot be implemented. I have just one question, which may be difficult to answer. It is suggested that the objective of HMRC is to try to increase the number of investment trusts that become domiciled in the UK in order to take advantage of these changes in company law and tax law. Page 8 of the impact assessment states that,
“there are 200 registered as ‘investment companies’ under the Companies Act”,
but that there are 320 quoted investment companies, which suggests that there is the potential for an additional 120 companies to register. Is that right? If the objective is to get companies that are quoted on other exchanges to register here, it could be presumed that a limitless number of companies might take advantage of these rules. I assume that the 120 companies referred to here are only UK companies, and it would be difficult to estimate the potential if that is HMRC’s objective.
Baroness Wilcox
My Lords, I agree that it is a complicated subject—it is complicated to read. Consistency in regulation is essential if we are to provide a framework for companies to operate within and thrive. These regulations remove conflicting regulatory requirements between the Companies Act and corporation tax rules.
In answer to the question asked by the noble Lord, Lord Razzall, 320 investment companies are UK-domiciled. He is correct that we do not know how many companies are registered abroad. I am afraid that is the answer that I can give at the moment, but if the noble Lord wishes to take this up with me—
Baroness Wilcox
The noble Lord assumed correctly, of course, which is excellent.
In answer to the noble Lord, Lord Young of Norwood Green, tax issues have been debated in the House of Commons and are now in place. I have not brought these details with me but I would be very happy to provide the noble Lord with those. I do not think that those details will make a fundamental difference to what we are asking for today. I hope he will bear with me on that. The noble Lord also asked about the corporation tax regime, which gives exemption to investment companies from corporation tax on their chargeable gains if they satisfy conditions.
In parallel, investment companies and their investor-shareholders will benefit from the removal of an unnecessary restriction. Investment companies will be able to pay dividends out of capital profits without losing their ability to benefit from the special distributions regime in the Companies Act.
Unless there are any further questions—
Companies: Executive Remuneration
Debate between Baroness Wilcox and Lord Razzall(12 years, 10 months ago)
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Baroness Wilcox
The noble Lord gave the answer in the question that he asked me. Professor Kay will be giving his interim review next month and I am absolutely sure he will be answering the question that the noble Lord has asked.
Lord Razzall
My Lords, I am sure that the noble Baroness is aware that the Secretary of State’s statement endorsed 10 of the 12 recommendations of the High Pay Commission; the major one that was not endorsed was that there should be employee representatives on the remuneration committee. Is she prepared to expand a little on that and accept that there are a number of reasons for it, particularly the difficulty for companies that have the majority of their employees outside the United Kingdom? Will she also accept that one of the problems is weak trade union recognition among leading companies, and can she expand on what the Government propose to do to honour the Secretary of State’s undertaking to try to obtain the views of employees on these issues?
Baroness Wilcox
The Secretary of State gave a very broad, sweeping statement last week, as my noble friend has already mentioned, which he will be speaking to more and more as the weeks go on. Putting employees on board committees is something that obviously everybody would like to see happen. The closed shop of boards and board committees needs to change and we are taking measures to promote diversity. However, as the Secretary of State made clear last week, bringing people on to board committees who are not also company directors, with the associate responsibilities, is not the way forward.
Small Businesses: Finance
Debate between Baroness Wilcox and Lord Razzall(12 years, 10 months ago)
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Baroness Wilcox
We are of course very aware that very often it is difficult for small businesses to make their case. They do not have the mechanisms that large companies have and are not sure how to go and speak to the banks. The banks assure us that they are working very hard to help people, particularly self-employed people, who come to make a business case. Of course, they have to make a business case because it is other people's money that they are borrowing.
Lord Razzall
My Lords, I am sure that the noble Baroness will be aware that, notwithstanding the list of programmes that she put forward in response to the Question, particularly in the light of the current economic situation there is significant criticism that the Government should be doing more to stimulate growth. Does she think that Her Majesty's Government have the correct balance between the deficit reduction programme and the steps that are being taken to stimulate growth, particularly in the SME sector?
Local Better Regulation Office (Dissolution and Transfer of Functions, Etc.) Order 2012
Debate between Baroness Wilcox and Lord Razzall(12 years, 11 months ago)
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Lord Razzall
My Lords, I support my noble friend on her proposals regarding this order. Whereas I sympathise with the remarks of the noble Lord, Lord Borrie, that this is government fashion, behind that fashion lies a fundamental democratic principle. There are a lot of us who believe that one of the problems with the proliferation of the creation of these bodies over the last 10 to 15 years is that the democratic accountability of what they do was lost.
I can give an example to the noble Lord, Lord Young, about the difference: were this order not to be passed so that this organisation were kept in place, when he stood up to ask the Minister a question about the activities or the proposals that he has concerns about, she would, quite rightly, have said that it was not a matter for her but for this body. In future, when he has a concern about what happens, because it is within the department, she will be accountable for the activities of the people concerned. I know that, as the noble Lord, Lord Borrie, said, it is the fashion of this Government to abolish as many of these bodies as possible, either entirely or bringing their activities within the relevant ministry, and I have some sympathy with his view that the Bill tried to attempt too much and that far too many bodies were initially included, but my fundamental belief is that wherever possible these bodies should be democratically accountable. That is particularly the case here.
I have three questions, one of which has been touched on by noble Lords on the Labour Benches. First, one of the things that are clearly emerging is that a lot of the bodies being abolished, or whose activities are being brought within the relevant department, have a lot of property assets. In this case, is there a significant property asset that will be released or sold, and do we know its value? Secondly, the Minister indicated that from April most of the staff within the organisation will be transferred to employment within the department. Have they signed up to do that or do we just hope that they will? My third point follows up the point that both noble Lords made about the representative steering group. The document indicates that there was a 50:50 split in the consultation over what should happen. Where do we think we are? What is the timing of the decision to decide what that representative steering group should be?
Baroness Wilcox
I am trying very hard to make sure that I can answer as many questions as possible. It does not seem that long ago that I was standing in this Room—perhaps it was a couple of years ago—at the birth of the LBRO. At that time, I wondered whether we needed another organisation. Here I am now saying that we do, but that we are going to keep it to ourselves and I am going to be responsible for it, whatever it does. I thought that I had made a very long and detailed speech to try to cover as many points as I possibly could this time round, but obviously all I have done is to provoke people with expertise in this area to come back at me with questions. I hope that I am going to be able to answer them.
The noble Lord, Lord Young, talked about the Federation of Small Businesses. Small businesses want to see greater benefits. One is that we have announced that we will make assured guidance available to them: a benefit of the primary authority. He also asked about the primary authority. The power to direct remains in the case of the primary authority; it is in other guidance where the power to enforce will be removed. He also spoke about the RSG minutes. We have not yet considered publication of the minutes, but we will look at that proposal. It was not raised in consultation, but I see no reason why they should not be published. If there is no great objection, I do not see why he should not have what he has asked for.
The noble Lord, Lord Borrie, said that the savings will be very modest and will not in themselves address the deficit. That is not quite what we meant. The savings, which will be £6.4 million over 10 years, are not insignificant given the financial situation we find ourselves in. I hope I was very clear in my statement that we want to make sure that the excellent work that the LBRO has done continues, but any money at all that we can manage to save by reorganising should be saved. We hope to be able to continue with the same people and do the same work while cutting the overhead costs.
The noble Lords, Lord Borrie and Lord Razzall, talked about the representative steering group’s split responses. The role of the RSG was supported by 80 per cent of respondents and any split responses reflected a debate as to the membership, with many of the respondents actually wanting to be on it themselves. That was the real balance of the argument there.
In reply to the noble Lord, Lord Borrie, on accountability, the RSG will represent a balanced range of stakeholder perspectives and aim to strike the right balance between the regulators and those whom regulation seeks to protect; to provide advice on the strategic direction and approach of the organisation; to provide oversight of the operation of the primary authority to ensure that due process is followed; and to have its membership reviewed regularly and refreshed to open up engagement and encourage new perspectives. It will be no more than 12 individuals, not operate as a formal body and not oversee day-to-day operations of the BRDO, which we hope will add even more to the great work that it has already done.
The noble Lord, Lord Razzall, talked about the property assets. In answer to his question, no—lease transfers will be consolidated with other BIS estates. Sadly, we do not have very expensive property assets that we can get rid of. I note that the noble Lord supported what I introduced today in this regard. On his question about whether employees have agreed to come, yes, all the employers in post at the date of transfer have agreed to be transferred to the department and will continue to work from Birmingham for the foreseeable future. The noble Lord also asked about business sign-up. As he suspected, business had some concerns. We have certainly attempted to listen to those; the operational independence in the primary authority is an important element of that, and keeping the business reference panel is also important. Businesses have questions, but are broadly supportive of the proposals. We will of course continue to listen to their questions and worries as we go forward.
Consistency and continual improvement in the regulatory landscape are essential if we are to progressively strive to provide an even stronger, more supportive environment in which our businesses can strengthen, prosper and grow for the benefit of our whole economy. The needs to support greater transparency and accountability, to create a more effective regulatory policy on development and to provide a strong voice for regulatory reform at the heart of government are not in dispute. This order underpins those objectives, and I therefore commend it to the Committee.
Lord Young of Norwood Green
Perhaps I can try to be helpful, because I do not want us to take up more time than we need to, but that is not quite what it says in the Explanatory Memorandum. I notice that the Minister’s officials are nodding. Perhaps the best thing that the Minister could do is to write to us and clarify the situation.
Lord Razzall
Perhaps the Minister could specifically explain, when she writes, how what she said relates to paragraph 8.5 of the Explanatory Memorandum, which seems to suggest that,
“the power to direct local authorities, and … to enforce service improvement will be stopped”.
It does not seem to reflect that, but that is actually what it says.
Baroness Wilcox
My Lords, I am always reluctant to say that I will write because it sounds like a cop-out. I always try if I can to get the answer on the day, but I am obviously not giving as clear a response as is required by your Lordships. I will, of course, write, if that is acceptable.
Jobseeker’s Allowance: Interns
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
Internships can be paid or they can be worked on as volunteers, where we would encourage travel expenses to be paid. We are committed to improving social mobility; we are clear that job opportunities should be based on what you know and not just who you know. We are encouraging businesses to provide internships with financial support to ensure fair access. I am sure that is what the noble Lord wanted me to say.
Lord Razzall
Bearing in mind the noble Baroness’s statement that there is no such thing as an intern, why was the Prime Minister auctioning an internship at a Tory fundraising event? Does she not agree—and it is implicit in her answer to the previous questions—that the question of payment for internships is an issue of social mobility? Will she confirm that the Government firmly believe that interns should not be just from the wealthy middle class, but also people who cannot afford to work?
Baroness Wilcox
We are concerned that requiring all interns to be paid would actually reduce the number of available internships. With so many of our young people not able to get jobs at this time, we think that anything that will give them experience of the workplace and help them is a very good thing. We want to strike a balance between reducing exploitation and maintaining the maximum number of internship opportunities. As I have said, we are committed to improving social mobility and that what matters is what you know, not who you know. As the Chancellor made clear yesterday, we will work hard wherever we can to support youngsters trying to get into work and get the experience that they so badly need.
Loan Companies: Interest Rates
Debate between Baroness Wilcox and Lord Razzall(13 years, 1 month ago)
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Baroness Wilcox
We have tried and continue to try to see how we can get people to set up credit unions. They are so popular in America, Australia, Canada and Ireland, but we just do not seem to like them in this country. However, we are continuing to struggle to do that. The noble Lord is right about total household debt: £1.45 trillion is an enormous figure, but of that £1.24 trillion is owed on mortgages. We are a real country for buying our own houses and taking out mortgages. The amount left over is the money owed on personal loans, credit cards and high-cost credit. For this, we must make absolutely sure that people have the right information before they get themselves into difficult situations.
Lord Razzall
My Lords, taking the last point made by the noble Baroness in response to the previous question, is she satisfied that the review the Government are carrying out will ensure absolutely that the result does not force the very poor into the hands of loan sharks, whose method of collection involves violence?
Baroness Wilcox
When the consumer credit review report comes out, we will know its findings, so I cannot comment on them for the moment. However, it is always the most vulnerable who we must worry about because they are the least likely to ask for help until it is too late. We will continue, as we would always continue, to make sure that the disadvantaged really are a priority for us.
Weights and Measures (Specified Quantities) (Unwrapped Bread and Intoxicating Liquor) Order 2011
Debate between Baroness Wilcox and Lord Razzall(13 years, 3 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Razzall
My Lords, of course I will not oppose these measures, but I have significant reservations as to whether they represent the real world. Leaving aside the provisions on bread, which I of course fully support, I am concerned that the consultation exercise seems to have involved organisations relating to wine, beer and spirits rather than relating to what happens in the real world in wine bars and pubs. Until I read all this material, I had not appreciated—of course, I should have done—that there was any restriction on what a publican could sell. I had assumed that the fact that you ordered either a half or a pint of beer was simply tradition, because that is the way that it had always happened. I had not realised that it was a mandatory requirement.
Of course, in the real world of pubs, they vary. In many village pubs when your pint of beer goes down to a quarter and you ask for a half they will pull the pump so many times you almost end up with another pint. The fact that they have charged you only for a half is not material to the measure that you have actually been served. As far as wine is concerned, at the moment as I understand it, you can have only a small or a large glass if you go into a pub or wine bar. Those are the required measures, but there is nothing to stop six of you ordering a bottle of wine and serving it to yourselves in whatever proportions you want; and if you want more, you have another bottle of wine.
I find the regulation of this rather strange and not necessarily representative of what actually happens in the pubs and wine bars of our country—those that remain open. Had I started with a clean piece of legislation, I would have gone for option two and deregulated the whole lot, but I recognise that the consultation makes that rather difficult.
I also wonder whether there has been proper consultation with the people at the sharp end. Will those who run my local village pub have to spend a fortune buying two-third pint glasses which they do not have? If so, are they in favour of this, or would they rather stay with the existing requirements? I would have assumed that, were the Tory element of our Government—and, I suspect, the Liberal Democrat element too—starting from scratch, they would think you should simply say, “Here are the products we sell, whether it is two pints, one pint, three-quarters of a pint, two-thirds of a pint, half a pint and here is the price,” rather than saying, “You cannot sell anything unless it is one pint, half a pint or two-thirds of a pint.” So I have reservations about the order, as I have expressed, but of course I am not going to oppose it.
Baroness Wilcox
My Lords, I thank the noble Lords, Lord Young and Lord Razzall, for their questions, which allow me to clarify some points and—as the noble Lord, Lord Young points out—maybe even clarify to myself what a “flight” is.
On whether bread will be clearly marked, I can reassure the noble Lord that the answer is yes. Any new sizes will have to be labelled with the weight clearly shown so people can see exactly what they are buying. What is a wine flight? We are both happy to learn the answer to this. It is a selection of different samples served with a meal. There we are. We are both ready to use this word again. I can see both of us rushing out soon asking for a flight.
I was asked how, if small glasses of wine are deregulated, drinkers can keep track of their consumption if they do not know how much they are being served. This deregulation is aimed at a specific market, that of samples and wine tasters served in small volumes of below 75 millilitres. It will not affect the vast majority of wine sales, which will continue to be regulated. There is nothing to stop drinkers asking for information on the quantity of wine samples or tasters in the same way that they would ask for information on alcohol by volume, to work out the units and ensure that they keep within the daily guidelines. I hope that the noble Lord finds those answers helpful.
I have already had exchanges with the noble Lord, Lord Razzall, today on a very different subject—nuclear power stations. I hope I can satisfy him on this more technically than I did with my earlier answer. I am very impressed with his experience of pubs and wine bars. A bit of research had to be done on this job and I am grateful to him for doing so. It must have taken time, effort and expense. He is quite happy with the bread, it seems, but with beer and wine, he did not realise that there is a mandatory restriction. There we are.
The noble Lord made an interesting point about how things vary in real pubs. He talked about something that we all know when we go to local pubs: you do not ask for another pint in your pint glass—you drink a bit and then ask for another half in that glass, because it is impossible to get it right. In fact, you usually end up a winner, so I am with him on this.
On why we do not simply get rid of specified quantities and allow pubs to sell any size, alcohol is a regulated product and the consultation found widespread support for the retention of specified quantities for the sale of alcoholic drinks. In any case, there are unlikely to be any significant savings for business from full deregulation, and there is very little support for it. There is, however, significant support for the continued use of specified quantities of alcohol from consumer groups such as CAMRA, trading standards departments, health agencies and charities including Alcohol Concern and Alcohol Focus Scotland, as well as from businesses.
Finally, the noble Lord asked about the cost of introducing a two-third pint. The answer is that a two-third pint is optional and will be introduced only if there is a business case for it. We know of at least two major brewers which are planning to use it, so I shall be most interested to see what it looks like. When I came here, I thought it might be a good idea to line up a few glasses so that we could actually see what we are talking about, but my Private Secretary decided that that was a bit risqué.
I thank noble Lords for their consideration of the order. The policy objective underpinning it is to free the market from unnecessary regulation while ensuring that the market works effectively. The order delivers greater freedom to business over the sizes that can be sold, while ensuring that consumers will continue to be able to judge the best deal and, we hope, keep track of their alcohol intake. Pubs, bars and restaurants will have more choice over the sizes they serve; bakers and retailers of unwrapped bread will be able to sell loaves in any shape and size, and consumers will have greater choice. The order will ensure that consumers continue to be empowered but will also help to create a more positive environment for business by allowing for greater innovation and growth. I commend the order to the Committee.
Sellafield
Debate between Baroness Wilcox and Lord Razzall(13 years, 3 months ago)
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Baroness Wilcox
The noble Lord, Lord Winston, is right that we have not been investing as we should. We have been in government for only a year and we are trying our best to get ahead as fast as we can. I know that he is doing wonderful work with Imperial College, and it is to people like him that we look to show us the way ahead.
Lord Razzall
Following on from the Question from the noble Baroness, Lady Worthington, rather than jumping the gun like Usain Bolt, may I ask my noble friend whether there are residual liabilities under the processing contracts at the MOX plant at Sellafield in relation to cleaning up the plant? If so, who is going to bear them?
Baroness Wilcox
There are residual liabilities, and we will have to work out exactly what we are going to do. Can we turn the existing plutonium stocks from the MOX plants from a liability into an asset? That is an area that we must look at and see what we can do. The Government consulted earlier this year on their preferred policy option for dealing with all those stockpiles and will confirm their position later this year. I thank my noble friend for his question.
Manufacturing: Investment Growth Forecast
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
There is no doubt that we have gone through a soft period in the last three months. However, the latest surveys from the CBI and the EEF suggest that output will grow overall in the second quarter of 2011, with manufacturers expecting growth to continue well into the third quarter.
Lord Razzall
My Lords, in the light of her Answer and indeed the Question put by the noble Lord, Lord Sheldon, might this not be a moment for the Minister to endorse the Statement last week by her colleague the Business Secretary that Britain’s economy must undergo a cultural revolution to prevent manufacturing losing so many school leavers and high-flying graduates to the City? What steps are she and her department prepared to take to promote the See Inside Manufacturing programme, in which young people visit schools to encourage others to train as career engineers, thereby helping our exports and manufacturing?
Baroness Wilcox
The Government are well aware—certainly my boss, the Secretary of State, is well aware—that advanced manufacturing is what will take our country forward in the future. Investment in technology, investment in skills and investment in the very thing that my noble friend has just mentioned are what will take us forward.
Postal Services Bill
Debate between Baroness Wilcox and Lord Razzall(13 years, 6 months ago)
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Lord Razzall
My Lords, I have some sympathy with what the noble Lord, Lord Whitty, describes as a modest proposal. However, I completely endorse the remarks of my noble friend Lady Kramer. What worries me about the amendment, were it to be carried, is that the most likely outcome would be a sentence in the report simply saying, “It was the best price we were offered”.
Baroness Wilcox
We have debated at length the issues around revealing the Government’s internal estimation of the value of Royal Mail shares prior to a disposal. Amendment 2 would not require the Government’s estimation of the value to be revealed, but would require us to publish the methods and criteria for making that valuation. Our expectation is that we will apply a range of valuation methodologies to our assessment of the business’s value.
I reiterate what I said on Report—that we would, of course, expect that both the National Audit Office and the Public Accounts Committee will wish to review the sale process, including the valuation methodologies that we have applied. They would both provide their own independent view to Parliament on whether the Government had achieved value for money for the taxpayer. This is consistent with the reporting requirements for previous sales of government assets. What should matter is not the technical valuation methodologies that we may apply, but whether we have the right objective for the sale. In that respect we have committed to report back to Parliament prior to a sale process beginning, and this report will confirm our objective for the proposed sale.
I reiterate a further point with regard to valuation. As your Lordships will fully understand, we cannot, and should not, reveal our estimation of the value of the company. Doing so would be giving the whip hand to the potential investor and would severely undermine our ability to negotiate the right deal for the taxpayer or for the company. Put simply, it does not make good business sense.
Postal Services Bill
Debate between Baroness Wilcox and Lord Razzall(13 years, 7 months ago)
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Baroness Wilcox
My Lords, I shall speak to the amendments to Clause 11 in the name of the noble Lord, Lord Whitty. I thank him for telling me in advance that he is not going to press them tonight and I hope that my response will at least reassure him.
Amendment 40 seeks to oblige the Post Office to report against its compliance with the access criteria at a UK level and also in each of England, Wales, Scotland and Northern Ireland. The access criteria are national criteria. Five of the six of them apply across the entire United Kingdom but they recognise the country’s diversity by including individual protections for urban, urban deprived, rural and remote rural locations. The sixth criterion—for 95 per cent of the population in each postcode district, such as BA2 or GU27, to be within six miles of a post office—applies to each and every one of the nearly 2,800 postcode districts in the UK. This provides a very real guarantee that post offices will be broadly spread and accessible to communities in every corner of the United Kingdom. I reassure the noble Lord that the annual network report will include details of the Post Office’s compliance with the criteria. Indeed, such reporting is already done. Your Lordships will recall that last year’s Postcomm network report showed that the Post Office continues comfortably to exceed the access criteria.
It is most upsetting to have the opposition Chief Whip sitting here with me. I want that noted.
Baroness Wilcox
However, we believe that obliging the Post Office to report against the access criteria separately for each of England, Wales, Scotland and Northern Ireland would be of limited assistance. The previous Government recognised that too when, following a national consultation in 2007, they rejected suggestions from some that the access criteria should apply at an individual national level. This additional reporting obligation would place a significant additional administrative burden and subsequent cost on the Post Office. For example, 17 postcode districts straddle national borders, such as postal district TD15 around Berwick-upon-Tweed. For this reason, I urge the noble Lord, Lord Whitty, to consider withdrawing Amendment 40, which I think he has already agreed to do, and to reflect on what I have said.
I turn to Amendment 41, which again is in the name of the noble Lord, Lord Whitty. It relates to the services offered over Post Office counters on behalf of a universal service provider—in other words, Royal Mail. I hope that the noble Lord will be reassured by the Government’s Amendment 50, which obliges the network report to contain details of the services offered by the Post Office on behalf of a universal postal service provider. The report must also contain details of the wider postal services that are available, so services that are not regulated under universal service conditions must also be covered.
I also reassure the noble Lord that new Post Office Locals all offer the full range of Royal Mail’s universal service products. Some have voiced a concern that certain Post Office Locals do not offer full universal postal services—for example, through not accepting parcels weighing more than 6 kilograms. However, I reassure noble Lords that the Post Office has, through the current pilot process, now developed the Post Office Local model so that new local outlets will all accept parcels up to the full universal postal service standard of 20 kilograms.
I hope that in the light of those reassurances the noble Lord will feel happy to withdraw his amendment.
Postal Services Bill
Debate between Baroness Wilcox and Lord Razzall(13 years, 7 months ago)
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Lord Razzall
I stand by the point that I made in Committee: in the current climate, it would be extremely unlikely that there would be an IPO for the Royal Mail.
The noble Lord, Lord Lea of Crondall, demonstrates another reason why that is highly unlikely. The fundamental difference between this and the privatisations to which he and his colleagues referred in the 1980s and 1990s is an ideological belief on behalf of the then Conservative Government that those industries were better held not by the taxpayer but by public shareholders. In those circumstances, there was clearly an interest in creating an aftermarket, so that as many individual shareholders—in the case of BT, it was a huge number of individual shareholders—should have an incentive to buy shares and then make a profit. The reason why that would not apply in this case is that the fundamental reason for the transaction would be to get resources into the Royal Mail. In those circumstances, the Government would not have an interest in creating the sort of aftermarket that the noble Lord, Lord Lea, fears. The significant interest of the Government would be to maximise the financial return for the Royal Mail, because the whole purpose of this is to get investment into Royal Mail, not to provide a windfall for shareholders.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)
My Lords, Amendment 1 would restrict the number of shares that can be sold in an initial public offering—an IPO—to 30 per cent of the value of shares, and imposes a time limit for the sale of one year from the new clause coming into force.
First, the Government believe that Royal Mail needs an injection of private sector capital to meet its needs in a fast-changing postal market. Unlike the previous Government, we do not believe that there should be any barriers in legislation to prevent a disposal of a majority of the shares. The Government’s objective in disposing of shares in Royal Mail is to secure the future of the company and to secure the best value for the taxpayer. To achieve that, the Government must have flexibility on when to sell shares and how much should be sold.
The noble Lord, Lord Lea, is concerned that previous privatisations have resulted in the taxpayer losing out through undervaluation; the noble Baroness, Lady Turner, spoke in support of his concerns. Noble Lords have a great deal of knowledge of previous privatisations; it is one of the great assets of your Lordships' House. I cannot answer for why they were done as they were, or what were the objectives of those privatisations. I am absolutely clear that our intention will be to secure the best deal for the company and the taxpayer consistent with our objectives. We will ensure that whatever form private sector investment takes in this instance, it will be with those objectives in mind. I thank the noble Lord, Lord Razzall, for his clarifying statement on that.
As I said in Committee, the Bill would allow the sale of a minority of shares in Royal Mail, and a sale by means of an IPO, if either or both were decided to be the best route to achieve our objectives. We do not, however, believe that there should be a time limit on the sale. The Government must have the flexibility to choose the right time to dispose of shares to ensure that we can get the best result for Royal Mail and the taxpayer.
The noble Lords, Lord Lea, Lord Young and Lord Borrie, also asked how Royal Mail will be valued. If I may, I will come back to those issues when we discuss Amendment 3, which directly addresses that point. Arbitrary deadlines in legislation would mean that the process might be rushed through, which is not the best way to conduct what would be a significant commercial transaction. I do not believe, therefore, that Amendment 1 would be in the interests of either Royal Mail or the taxpayer, and I would therefore hope that, following my explanation, the noble Lord will feel able to withdraw his amendment.
Manufacturing: Economic Policy
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
My Lords, there were many questions in there and a great deal of good information too. Perhaps I should say that I agree with an awful lot of what the noble Lord has said and see whether that helps me. We are aware that we should look at tax and all the other things which hold back business, and we are doing so all the time. It is important for us to make the United Kingdom Europe’s leading exporter of high-value goods and related services, and anything the noble Lord can do to encourage and help me I will listen to.
Lord Razzall
My Lords, bearing in mind that the clear objective of Her Majesty’s Government, as has been articulated by the noble Baroness, is to rebalance the economy away from financial services, particularly in London and the south-east, is she concerned about today’s statistics indicating that growth in manufacturing is now slowing?
Baroness Wilcox
My noble friend has read the same newspapers as me this morning. I think he is referring to the purchasing managers’ index, which suggests that there is a slowing of the growth rate in orders and output although it remains positive. What has been slowing is consumer spending at home and, in some ways, it is difficult to say that people should go out, get themselves into further debt and spend just to help our industries. The most important thing our industries can do is to make sure that we have the right skills and the right people doing the right jobs. The fact that we are doing so well at exports is the one thing that is absolutely glowing ahead for us.
Finance: Hostile Takeover Bids
Debate between Baroness Wilcox and Lord Razzall
Lord Razzall
My Lords, bearing in mind the success of acquisitions by UK companies of several overseas companies in several jurisdictions—and following the point made by the noble Lord, Lord Borrie—in formulating government policy on this issue, will the Government confirm that they will look at the risk of reciprocal actions by other countries were we to restrict takeovers in the UK?
Baroness Wilcox
I thank my noble friend. Yes, the Secretary of State is, as I have said, now looking at the Takeover Code, corporate Britain and how it looks to the long-term focus for this country. I am absolutely sure that he will consider that at all times.
Postal Services Bill
Debate between Baroness Wilcox and Lord Razzall
Lord Razzall
My Lords, before the Minister responds, could I make one point that I think is important? In the context of a number of comments by noble Lords, there is an assumption that the cost of the universal service obligation bears most heavily on remote areas. However, the figures for Royal Mail show that that is actually not true. The real problem does not lie in Orkney and Shetland; it lies in Hampstead and Norwood Green.
Baroness Wilcox
My Lords, we have had a great debate across the Committee, which has been provoked by the noble Lord, Lord Clarke, whose credentials are immaculate in this area. I missed hearing him in the debate on Second Reading because he was not able to be here for it, so we have been able to listen to him today, when he has had the opportunity to put his words on the record. It is a great occasion for us to listen to him. I may not agree with everything that he says, but I believe in the absolute sincerity of what he says, given the background from which he comes.
I share the noble Lord’s desire to ensure that the universal postal service is maintained throughout the United Kingdom and I suggest that that is what binds us all together today. Given that we all want to see the universal service maintained, I suggest that we have no time to waste in getting the finances that we need to ensure that that is possible. It is the overriding purpose of the package of measures set out in the Bill. We need to ensure that the universal service is maintained both for the deliverers of that service and, as we heard, for the customers who need to use it. My noble friend Lord Razzall quite rightly referred to Part 3 of the Bill, which we will discuss in detail in future Committee sessions. It confers on Ofcom a primary duty to protect the universal postal service and gives it the powers to deliver that duty. A disposal of shares in Royal Mail may mean a change in ownership from the public to the private sector, but the obligation on Ofcom to ensure the provision of a universal service will remain.
Consumer Credit
Debate between Baroness Wilcox and Lord Razzall(13 years, 10 months ago)
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Baroness Wilcox
If the Advertising Standards Authority was answering instead of me, it would say that it is complying with everything it should be doing. However, the question the noble Lord, Lord Sugar, asks demonstrates that there is continuing concern about this. I will of course take this on board and reflect again upon what the noble Lord has said and see if there is anything I can do to help things along.
Lord Razzall
Is the Minister aware that this issue is being debated today in another place on a Motion tabled by the Labour Party? Is she also aware that the proposal in that Motion is that a total-cost-of-credit cap should be imposed? Would she agree that, on the basis of the consultation that the previous Government undertook, that would not protect the vulnerable in the way being suggested in another place?
Baroness Wilcox
I am aware of the debate this afternoon in another place and shall be interested to hear what comes out of it. I am interested in what the noble Lord said, but for the moment I cannot comment because the review is not out.
Design
Debate between Baroness Wilcox and Lord Razzall(13 years, 10 months ago)
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Baroness Wilcox
Yes, I agree that design plays an integral part in pretty well all aspects of our lives. That is as far as I can go in answering the noble Lord’s question at this time.
Lord Razzall
Perhaps I can slightly broaden the Question asked by the noble Baroness, Lady Whitaker. Does the Minister accept that the creative industries, of which design is a significant aspect, will have to play a key part in the growth of the British economy? In the light of the GDP figures yesterday, does she not think that this is the moment for the Government to set out their plans to ensure that the creative industries provide a spur for growth in our economy?
Baroness Wilcox
Work on the creative industries is going on all the time, as my noble friend knows. He is right that the UK design sector has a worldwide reputation for creativity and innovation. Research indicates that £15 billion was spent on UK designs in 2009, so there is every reason for us to encourage every aspect of this that we can. I thank my noble friend for his question.
Export Control (Amendment) (No. 3) Order 2010
Debate between Baroness Wilcox and Lord Razzall
Lord Young of Norwood Green
My Lords, I do not think that we will detain noble Lords for long on this order. I welcome the Government’s full explanation and clarification that the order will require a Secretary of State licence, whether it is direct or indirect control, which is important. I also welcome the assurance that there will be a monitoring and review process. I cannot help but ask one question, as a result of the O-level chemistry that I never got. Like the Minister and the Explanatory Memorandum, I always refer to the drug as sodium thiopental, but I notice that the order reverses that and refers to thiopental sodium. From mere curiosity, I am wondering why that is the case. I hope that those behind the Minister who know the answer to everything will tell us why the words have been reversed. That aside, I welcome the Government’s decision.
Lord Razzall
My Lords, I, too, support this somewhat bizarre order, which I am sure noble Lords from all sides will welcome. I have three questions resulting from the Explanatory Memorandum. As someone who spent an early part of my life working as a lawyer campaigning against capital punishment in the United States, I would be interested to know which two states have used this drug to effect execution rather than simply to anaesthetise the condemned person before execution.
Secondly, it is obviously clear from the action taken by the lawyer for one of the people on death row that he or she believes that if this supply can be stopped there would be an advantage, presumably, to either postponing or stopping the execution of his or her client. If export of this drug from the United Kingdom does not take place, are we aware as to from where the relevant execution chambers will obtain the drug? Will this have a major effect on executions in the United States or is there a simple alternative source of supply?
Thirdly, the fact that this order is being brought indicates that presumably there has been export of sodium thiopental in the past from the United Kingdom to the United States. Do we have any idea what the volume of that has been? Will this have a direct effect on drug companies which have been exporting it or is this simply a theoretical order that will have no practical effect? I obviously overwhelmingly support the order.
Baroness Wilcox
My Lords, I thank the noble Lord, Lord Young, and my noble friend Lord Razzall, for their questions. I can answer the question posed by the noble Lord, Lord Young, fast and easily. Both versions of the drug’s name are in common use. But, with his O-level chemistry background, it is right that the noble Lord should check and I am delighted that he is able to support the amendment.
My noble friend Lord Razzall asked where else the drug can be obtained. It is manufactured in Austria and Italy. We have no information about suppliers outside the European Union. I am afraid that we will have to write to my noble friend as regards where the drug has been used for execution. We do not have that information at the moment. With my noble friend’s past interest—I understand my noble friend said that he has campaigned in the United States against the death penalty—obviously that information will be of interest to him.
My noble friend also asked what volume has been imported. We have no figures on imports to the United States of America. It cannot lawfully be imported to the US for medical purposes, so the volumes must be very low if it is used only for this purpose. I hope that these are helpful answers. If there are no other questions, I conclude by reiterating that, on the basis of the facts outlined in the opening statement, I commend the order to the Committee. I should also like to emphasise that the operational effect of the order will be kept under review in the light of factual developments.
Economy: Growth
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
My Lords, obviously, we are delighted with any signs of growth and of going forward. The figures read out by the noble Lord are not encouraging, but that does not mean to say that we do not have to try to do the best we can. We know, for example, that advanced manufacturing growth is very important for us, and a review will be out very soon. We are reviewing all the areas in which we can find any growth at all, and I am sure that the noble Lord, fine engineer that he is, will help us in any way he can to encourage us in areas from which he thinks growth will come.
Lord Razzall
My Lords, in her Answer to her noble friend Lord Roberts of Conwy, the Minister indicated that the establishment of local enterprise partnerships was a key driver for economic growth. Is she satisfied with the progress in the establishment of those local enterprise partnerships, which, as she will know, is a subject that is dear to the heart of the Liberal Democrat party?
Baroness Wilcox
The formation of 24 local enterprise partnerships is a landmark move that will see business and civic leaders work together to create the conditions for growth in their communities. This is, as we know, a real power shift away from central government and quangos towards local communities and the businesses that really understand the local barriers to growth. We have 24 partnerships already and we are working very hard to ensure that the others will come online as quickly as possible. We are quite confident that this will take things forward in a way that the RDAs never did.
Minimum Wage
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
The Government of course recognise concerns about the increase in unpaid internships and the risk of exploitation and we are working to improve guidance on the status of interns and to raise awareness. We will ensure that enforcement of the national minimum wage continues to be effective and that resources are focused on where they will have the maximum impact. We want to make as many internships and work experience opportunities as possible available to our talented young people, from all backgrounds, because these opportunities may lead them into work in the future. Of course we wish to make sure that the guidance is clear and of course we wish to avoid people being abused—children particularly—in this way. At the same time, we want to be careful that we leave these opportunities for youngsters to gain good experience and possibly lead themselves into work in the future.
Lord Razzall
My Lords, I support the remarks of the noble Lord, Lord Lea, particularly with regard to the expectation of the Government producing data on this. However, does the noble Baroness recognise that, for many people leaving college or university at the moment, at this stage of the economic cycle, their future path to employment often lies in starting with unpaid internship, which then leads to permanent employment? Does she recognise that getting the balance right between that and exploitation of youth is something that the coalition Government need to look at?
Baroness Wilcox
My noble friend is exactly right and I agree with him on everything that he has said. As we are a coalition, it makes life so much easier that we can discuss these things sensibly. Thank you.
Employment: Cuts in Public Expenditure
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
Noble Lords may hear that many times, but unfortunately, it is what we have to base all our decisions on. Private sector growth is not just about spending money, it is about creating the right business environment—for example, cutting red tape—and making the United Kingdom an attractive place to do business in comparison to its international competitors.
Lord Razzall
My Lords, has the noble Baroness seen the recent statistic that home owners in the north-west have the highest percentage of negative equity of any UK region? Does she accept that that demonstrates the economic problems that could face that area and highlights the importance of attracting private sector jobs, particularly to the north-west?
Baroness Wilcox
I think that we are all aware of how difficult the situation is, particularly in the north. Over all these years, the previous Government were not able to bring together prosperity in that area. We believe that the new way of approaching this—moving power from central government down to local government, where people know what their problems are and what they will need—will mean that the regional growth fund will be available to support projects and programmes, which promote jobs and growth, and, in particular, to support areas that are currently dependent on the public sector to make the transition to private-sector-led growth. We hope then that things will improve regarding the ownership of homes.
Small Businesses: Invoice Payments
Debate between Baroness Wilcox and Lord Razzall
Baroness Wilcox
I thank the noble Lord for the question and the recognition that I come from a small-business background. Therefore, I know what it is like to try to get your invoices through. I have to admit that some of the research that we have done shows us that an awful lot of small businesses are so keen to get a contract—I know because I have done it in my time—that they do not read the small print and produce their invoices in exactly the way that a particular company wants to receive them. There is then an easy mechanism for them to say that the invoice is not suitable for payment. The Federation of Small Businesses, which the noble Lord cited, is well known to the ministry for business and meets regularly with us to help us develop and enforce the prompt payment code. More than 1,000 companies have signed up to that, some as big as Tesco and some as small as Mr Andrews, the plumber in my village of St Mawes.
Lord Razzall
My Lords, does the Minister recognise that the previous Government produced an initiative in the public sector under which invoices were to be paid in 10 days, which was intended to be specifically beneficial to the SME sector? Does she accept that this was typical of so many Labour Party initiatives, in that it was more honoured in the breach than the observance?
Baroness Wilcox
I think that we have moved past the time of saying too many bad things about the previous Administration.
Communications Act 2003 (Maximum Penalty for Persistent Misuse of Network or Service) Order 2010
Debate between Baroness Wilcox and Lord Razzall(14 years, 5 months ago)
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Baroness Wilcox
I thank the noble Lord. I would like to point this out to the Information Commissioner and see if he cannot study this and come up with some better answers.
My noble friend Lord Razzall asked two questions. He reminded us all about the calls from “heavy breathers” before this technology was developed. As a woman picking up a telephone, in the days before I went ex-directory, I have heard a heavy breather on the other end.
Baroness Wilcox
Thank you. It is a worry, though—that awful pause when there is no voice on the other end of the phone. I think particularly of women on their own at home during the day, as well as older women who may be living alone and feeling very exposed. I have a fellow feeling for that.
The noble Lord moved on to political parties. I am interested to see what answer we can even give at this stage about the use of this technology by political parties in elections. We note the point and we will raise this, too, with the Information Commissioner. This is his area, and I am sure that he will be happy to have these things raised.
These have been valuable points and we are going to take them away with us. On that basis, I commend the order to the Committee.
Sunday Trading
Debate between Baroness Wilcox and Lord Razzall
Lord Razzall
My Lords, can the Minister confirm, after the last question, that the coalition Government have absolutely no intention whatever of reforming the Sunday trading legislation, thereby throwing us back to those dull Sundays that we all dreaded as teenagers?
Baroness Wilcox
My Lords, as I said, the Government have no plans to alter anything at the moment.