Debt Management Organisations

Countess of Mar Excerpts

Monday 28th July 2014 Lords Chamber

[Lord Newby]

My Lords, as the noble Lord knows, the Government are already committed to funding credit unions to a considerable extent. On the issue of free money advice, the Money Advice Service has allocated some £38.1 million this year to fund free debt advice, which will be given through organisations such as Citizens Advice and StepChange.

[The Countess of Mar (CB)]

My Lords, I had just such a cold call this morning and the person who made it did not leave their address or their name. It was a tape-recorded message. Is there anything that I can do about that? Can the Minister say what will be done to protect people who have pension funds from being scammed? There was a lot about that on the radio this morning.

[Lord Newby]

The FCA has very considerable powers to regulate all financial services firms in this area. In the sector we are looking at, it took on responsibility earlier in the year. It has introduced stricter rules and is putting in place new authorisation processes. But if the FCA finds that despite the way in which it is tightening up its procedures, there are still significant problems in respect of cold calling, it has the powers to intervene further.

Economy: House Prices

Countess of Mar Excerpts

Thursday 3rd July 2014 Lords Chamber

[Lord Newby]

Yes it does, my Lords.

[The Countess of Mar (CB)]

My Lords, is there a sufficiently skilled workforce in the building trade after the doldrums that it has been in for such a long time? Are there enough people who have all the skills required to build houses? Has the Minister considered the modern prefabricated buildings that I understand can be put up within a week, in order to speed up housebuilding?

[Lord Newby]

My Lords, there are reports just today about skills shortages and rising wages in the construction sector. With the number of housing starts having increased so rapidly, you would expect that to be the case. Incidentally, when one talks about the free movement of labour within the EU, it is worth remembering that were it not for highly skilled technicians from other parts of the EU, the position regarding employment within the construction sector and shortages would be much worse. As the noble Baroness may know, we are investing an awful lot in apprentices and apprenticeships. In the medium term, that will be crucial in order to get to a new and higher level of building, but it takes quite a time to train someone to be, for example, a highly qualified electrician.

Welfare Benefits Up-rating Bill

Countess of Mar Excerpts

Monday 25th March 2013 Lords Chamber

We need to look at and use some of the other evidence that we will get about households below average income, which will be published in June or July. I hope that that evidence will inform the discussion that will happen on the comprehensive spending review to make sure that we are making sensible arrangements and decisions for the following CSR period from 2015 to 2018. In addition, we should use an annual report to Parliament to work with our local authority colleagues, as this amendment suggests, to learn what they are doing by way of services for working-age families in their areas. My intelligence from local authorities is that they are already struggling to provide services in that department, and we need to rely on them, particularly in relation to changes in community tax benefit and the abolition of discretionary grants under the Social Fund, which was abolished, as noble Lords know—

[The Countess of Mar]

We are at Third Reading, and the noble Lord has spoken for 16 minutes. He might believe that we have actually got the point. Is he going to be very much longer?

[Lord Kirkwood of Kirkhope]

No. I have two remaining points to make before I sit down. First, we have learnt over the past few days that Mr Alan Milburn, the chairman of the Social Mobility and Child Poverty Commission, has made it clear that he thinks that income is important for low-income families when trying to deal with child poverty. Finally, we need to invite the Social Security Advisory Committee to look at all this between now and July.

A lot of work needs to be done, and an annual report would help to inform that work. It is not safe to allow this Bill to continue into its later stages until we are sure that we have some way in which to track its progress and can ensure that those at the bottom of the low-income scales do not get hurt as a result of its provisions. I beg to move.

EU: Budget

Countess of Mar Excerpts

Thursday 28th April 2011 Lords Chamber

[Noble Lords]

Cross Bench.

[The Countess of Mar]

My Lords, I recall some 20 years ago the late Lord Bruce of Donington asking very much the same questions repeatedly. Can the Minister say why it is taking so long to resolve this problem?

[Lord Sassoon]

My Lords, I think that the answer to that lies on the Benches opposite. If we want to get into history, the previous Government in 2005 gave away a substantial part of the UK’s abatement and signed on to a financial perspective that set a course of significantly increasing EU expenditure. If, instead, they had worried more about the management of the funds that were going out from Europe rather than merely signing on to an ever-increasing UK contribution to an expanding budget, we would not be in the position that we are in today.

Budget Responsibility and National Audit Bill [HL]

Countess of Mar Excerpts

Monday 7th February 2011 Lords Chamber

[Lord Eatwell]

My Lords, the passage of the Bill through your Lordships’ House has been an excellent example of the importance of this House as a scrutinising and revising House. On behalf of these Benches, I thank the Treasury Bill team; Miss Jessica Levy from my office, who managed most of the relationship with the Bill team; and the Ministers, notably the noble Lord, Lord Sassoon, for the way in which they have approached the discussions and constructive negotiations on the content of the Bill.

The Office for Budget Responsibility established by the Bill is a peculiar institution. It is both outside government and of government. We need to ensure that legislation provides a framework for its independent operation as far as possible. That is what, working together, we have managed to do. We have clarified the role of non-executives, we have removed the statements in the Bill that seemed to qualify independence, we have enabled the OBR to consider issues of national risk, and we have enabled a process of external review of operations.

A number of factors remain. We on this side of the House are not entirely content with the budgetary provision for the OBR, or with the role of the charter as a qualifying agent that qualifies the OBR’S independence and instructs it.

[The Countess of Mar]

May I ask the Leader of the House whether it is normal to make a speech like this on the Question whether the Bill do now pass?

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

It is unusual, but it is in order. I think that the noble Lord, Lord Eatwell, is about to wrap up his remarks, but he was being constructive and helpful.

Charities: VAT

Countess of Mar Excerpts

Thursday 13th January 2011 Lords Chamber

[Lord Sassoon]

My Lords, I certainly take the opportunity to commend the work that Sue Ryder and many other charities do. They are facing a tough time, as are many parts of society. We find ourselves in the regrettable situation that charities will be bearing the additional VAT. The whole of society is bearing the burden of the difficult decisions on deficit reduction. The charitable sector of course benefits from significant VAT and other tax reductions and exemptions to the tune of £3 billion a year. The question of a level playing field is important, but it is of a level playing field with the public sector, which itself cannot recover all its VAT. For example, in the National Health Service, only about 20 per cent of the irrecoverable VAT is refunded, and only on outsourced services. Equally, we must remember that there are commercial providers of social care and other services who would be disadvantaged if there was a special scheme for charities.

[The Countess of Mar]

My Lords, is it not rather unfair to people who donate to charities from their taxed income that, in effect, the income is being taxed twice? They feel that they are doing a good deed and can be rather unhappy that the money is going into the Treasury coffers.

[Lord Sassoon]

I reiterate that it is important that we recognise that there are significant benefits within the VAT system for charities and that we have exemptions from the general EU rules on VAT that are not enjoyed by charities anywhere else in Europe. It is also the case that other proposals for increases in taxes would have hit charities significantly higher. If, for example, the previous Government’s proposals on increases in national insurance contributions had not been reversed by this Government, there would have been a significantly higher burden on charities than the regrettable increase in the level of irrecoverable VAT. I do not think that we should take this issue in total isolation.

Housing: Shared Ownership

Countess of Mar Excerpts

Monday 25th October 2010 Lords Chamber

[Lord Sassoon]

My Lords, the Government want to have a sustainable mortgage market in this country, and that requires a balance in maintaining a flow of mortgages so that people can get on to the housing ladder. In that regard, the actions which the Government have taken to ensure that market interest rates are kept low are paramount. On the other hand, we want to ensure that mortgage providers lend responsibly. That is why the Financial Services Authority is conducting a mortgage market review and why in July it issued a responsible lending paper for consultation.

[The Countess of Mar]

My Lords, to whom is the Financial Services Authority responsible if it is not answerable to Ministers?

[Lord Sassoon]

The Financial Services Authority is, indeed, appointed by Ministers and has a high degree of reporting to all its stakeholders, including Parliament. The Government do not believe that the model of tripartite regulation which we inherited from the previous Government is at all appropriate. Therefore, the FSA will go under the legislation which we will be bringing forward and we will have a completely new system of accountability for financial services regulation which we think is more appropriate.