Financial Services Bill

Debate between Earl Howe and Lord Lexden

Report stage
Wednesday 24th March 2021 Lords Chamber

[Earl Howe (Con)]

My Lords, I will speak also to the other amendments in this group. The Sewel convention states that normally, the UK Parliament will legislate in areas that are devolved only with the permission of the relevant legislature, obtained through the legislative consent Motion process.

In recent weeks, despite the best efforts of Ministers and officials from HM Treasury and the Northern Ireland Executive, it has become clear that the legislative consent Motions for relevant parts of the Bill would not be completed before Report in this House. It is therefore necessary to ensure that certain elements of the Bill do not apply in Northern Ireland, in line with the Sewel convention.

I assure the House that the great majority of the Bill will have effect in Northern Ireland, as financial services is a reserved matter. However, it is necessary for Northern Ireland to be removed from the relevant parts of the Statutory Debt Repayment Plan and account freezing and forfeiture measures in Clause 34 and Schedule 12, with connected changes to Clause 44 on extent and Clause 45 on commencement in addition.

These are technical amendments which the Government have tabled to avoid legislating without consent. Our understanding is that the absence of a consent Motion is due to current timing constraints rather than any concern about the substance of the measures. Legislative consent was not denied—the process was simply not completed.

Amendments 50 and 51 will amend Schedule 12 so that certain provisions in that schedule will have different effects in Northern Ireland from those in England and Wales and Scotland. Amendments 38, 40, 41 and 42 amend Clauses 44 and 45 to help give effect to the changes to Schedule 12. The amendments retain the status quo in Northern Ireland regarding the Proceeds of Crime Act 2002, and the changes which Schedule 12 makes to that Act will have effect only in England, Wales and Scotland. It is important to be clear that these amendments will not affect Schedule 12 as it relates to the Anti-terrorism, Crime and Security Act 2001. Anti-terrorism is an excepted matter and the changes which Schedule 12 makes to that Act will have effect across the UK.

Amendments 8, 9, 10, 13 and 39 prevent most of the changes made in Clause 34 extending to Northern Ireland. These are the provisions relating to the Statutory Debt Repayment Plan measure.

Clause 34(4), which provides an express power to bind the Crown, will continue to apply to Northern Ireland. This is done so as not to disturb the position on Crown application that the Government consider originally applied in the Financial Guidance and Claims Act 2018 in relation to Northern Ireland.

I would like to reassure noble Lords that Northern Ireland will still be able to make its own legislation providing for a debt respite scheme of its own design, including similar provisions to those in Clause 34, if these are desired. UK Government officials will of course continue to work closely with and support their opposite numbers on the design and implementation of a debt respite scheme for Northern Ireland if this is pursued.

I urge the House to accept these amendments, which are necessary to avoid legislating for Northern Ireland without the appropriate consent. I beg to move.

[The Deputy Speaker (Lord Lexden) (Con)]

The name of the noble Lord, Lord Stevenson of Balmacara, does not appear on the list, but he should have been included, so I call him next.