Financial Services Bill

Earl of Erroll Excerpts

Monday 18th June 2012 Lords Chamber

[Baroness Kramer]

My Lords, I speak as someone who is going to be going through this Bill in great detail. I assure the noble Lord, Lord Grocott, that I had no idea that this Motion was going down until today, so I am not part of any great conspiracy that he might imply. I looked at this legislation with the understanding that Grand Committee was not meant to be a second-rate or second citizen process but was one for dealing with highly technical Bills. Having tried to do an interview with the BBC on the latter parts of the Bill, I know that it is extremely technical. I assure the noble Lord that it passes the “eyes glazing over in agony” test. I have seen Grand Committee, thanks to the consumer insurance Bill, and seen how effective it is in being able to get and exchange a great deal of information very quickly on highly technical issues, so I would have supported the whole Bill being in Grand Committee.

I can understand the desire for some of the most prominent parts of the Bill to be debated in the Chamber as recognition of the level of concern following the financial and banking crisis of 2008 and the need to look again at the architecture of regulation—for some of those key issues to be addressed here. However, it is more in order to satisfy that kind of recognition of the level of concern rather than to give us almost the best practice for going through the Bill in detail, so splitting the Bill strikes me, as someone without much of an axe to grind in this matter, as a very appropriate mechanism and a sensible and practical one. That is how I have always viewed this House—as sensible and practical and willing to take on the issues simply as they are and to come to a solution. I spent time in the other place, where one might say that the principles are not the same—and I know that this House dislikes the kind of principles that the other place operates on.

[The Earl of Erroll]

My Lords, I can remember when the whole Grand Committee thing started, and the first assurance was that only non-controversial Bills would go to Grand Committee. The whole point was that in the old days—not that they are so very long ago—we used to divide on matters of principle in Committee, which meant that we tidied up on Report, and that was much more efficient. The challenge with Grand Committee is that it delays everything, and then we have a huge argument on Report that goes on interminably.

Then we have the problem with the limited rules on amending at Third Reading. Before, we would divide on principle in Committee and tidy up on Report, with half the length of debate. Then at Third Reading we would discuss things only when there had to be a final little adjustment because a mistake had been made. It was very unusual to put forward amendments at Third Reading, which is why they were so restricted. With the new procedure of going to Grand Committee, you can have wonderful debates but then you have to do it all over again on Report, which causes problems at Third Reading. We must either have yet another reading to tidy up before Third Reading or go back to dividing in Committee. We should remember that not only the person putting forward the amendment in Committee has the option to divide; anyone in the House can call a Division on an amendment that is proposed. So if noble Lords think that someone is wasting time by withdrawing an amendment in Committee to bring the whole thing back on Report, I suggest that someone stands up and calls for a Division.

[Baroness Farrington of Ribbleton]

My Lords, having sat next to my much missed friend Lord Williams of Mostyn, I wish to set the record straight. I am sure that the Leader of the House did not wish in any way to mislead the House, but having sat next to Lord Williams of Mostyn through all the discussions on the introduction of Grand Committee procedure, I fear that he would be appalled that there was Division in the House over the issue. He was a man committed to sensing the House’s mood, reaching a compromise and avoiding this sort of unseemly debate in your Lordships’ House.

Secondly, it is my understanding—this is not my area of expertise—that the noble Earl, Lord Erroll, is absolutely right about what happens at the different stages. It is confusing for everyone if some parts of the Bill can be voted on in Committee and others cannot and if rules apply to certain parts of the Bill at Third Reading but not to others. I think that will lead to confusion. It is also my understanding that the Bill tackles a serious problem; if sizeable numbers of people in your Lordships’ House—I am not talking about majorities—feel unable to support the compromise, to use the Leader’s words, surely it would be better to accept the proposals of the noble Lord, Lord Hamilton of Epsom, and work in the way that I know Lord Williams of Mostyn would have wanted.

Procedure of the House

Earl of Erroll Excerpts

Monday 26th March 2012 Lords Chamber

[Lord Laming]

My Lords, I have never felt so lonely for such a long time. I voted for this report in committee and I will vote for it again today. The noble Baroness, Lady Boothroyd, has also indicated how incompetent I am that I cannot get a letter to all Members of the Cross-Bench group. We all—well, a large proportion of the House—supported the Leader’s Group, but when it comes to implementing its recommendations the debate demonstrates how difficult it is to get agreement across your Lordships' House. It may be that I am too innocent to be allowed out, but I have tried to address the issue before the House and not be dragged into other, wider issues. Perhaps that is a failure on my part.

Having considered the report of the Leader’s Group on these matters in recommendations 9, 20 and 22, it seemed to me that the committee had addressed the issues with great care and concern. I agree strongly with the noble Lord, Lord Cormack, on one point: this House needs to preserve as much flexibility as possible for a self-regulating House. I regret to say that I cannot support the amendment of the noble Baroness, Lady Royall, because it states that all Bills should go to Grand Committee except in exceptional situations or when they are very controversial. If we think about this Session, there is not one Bill that could have been described as anything other than controversial. The amendment of the noble Baroness is altogether too restrictive for a self-regulatory House.

It is very important that this House takes forward the need to change in a way that enables us to manage the business as effectively as possible. I have formed a high regard for the usual channels and the way in which they try to deal with the business of this House. I believe that the usual channels can be relied on to reach sensible decisions which will command the confidence of the House. The recommendations are for a trial period. We have the opportunity to rehearse them in due course and we can learn from experience.

On Written Answers, the point was made about the expense that has been accrued by some noble Lords. Of course we want noble Lords to fulfil their responsibilities within the House, but that has to be balanced against the proper use of public finance, particularly at this time. I commend the recommendations relating to both Committees and Written Answers.

[The Earl of Erroll]

My Lords, if we start sending more things to Committees off the Floor of the House, we will soon discover that variant of Parkinson’s Law: talk expands to fill the time provided.

I would far prefer us to go back to what we used to do not that many years ago, which was to vote in Committee on the principle of amendments—even if they were defective, we looked at the principle. At Report, we tidied them up, which took much less time. That is why debates on Report are much more focused and we are not allowed to do the to and froing. Third Reading was purely confined to sorting out the typos, the essential little mistakes, not dealing with anything of principle. If we started to go back to that system, with voting in Committee, we would have far more abbreviated proceedings later on. All we are doing is talking it through in Committee and again at Report.

We have to use that as a brake on the deluge of legislation that is coming on us these days. If we give more time for talking, we will just get more to talk about.

[Lord Berkeley]

My Lords, I shall talk just briefly about my amendment on Written Answers during times when the House is not sitting. We have talked about Written Answers long and hard already today. Unfortunately, holding the Government to account does not stop when the House is not sitting. I am not an abuser of the system, and I am sorry that some people are, but I think that it would be a very good idea to be able to table more Questions during the recesses, and to be able to get Answers back rather more frequently than we do at the moment, which I think is once every five weeks in the Summer Recess. I am therefore very grateful to the Chairman of Committees for offering to take it back to the committee, and I hope that we can take it forward on that basis.