Financial Services Bill

Debate between Earl of Kinnoull and Viscount Trenchard

Report stage
Wednesday 14th April 2021 Lords Chamber

[The Deputy Speaker (The Earl of Kinnoull) (Non-Afl)]

I call the noble Baroness, Lady Bennett of Manor Castle. We are having difficulties with the noble Baroness, Lady Bennett. We shall move to the noble Viscount, Lord Trenchard.

[Viscount Trenchard (Con)]

My Lords, Amendments 18, 19 and 20 seek to create obligations for the regulators to report to Parliament on what their policies are and what rules they intend to introduce or change. Amendment 18 is the simplest, Amendment 20 is the most prescriptive and Amendment 19 is somewhere in the middle.

These three amendments are all rather strangely worded as undertakings from regulators. Amendment 20 almost implies that it is not taken as a given that there will be a principle of openness and sincere co-operation in assisting a relevant select committee in the conduct of any inquiry. As a member of the EU Financial Services Sub-Committee, and later the EU Services Sub-Committee, I can say that we have often examined senior officers of the two regulators and it has never even crossed my mind that they would not apply a principle of openness and sincere co-operation in giving their evidence.

These three amendments refer to the provision of undertakings from regulators and cover the whole of their activities and rule-making, which is rather too broad and gives the impression that Parliament will act in a direct supervisory role. They do not specify, moreover, how and in what form the undertakings will be given to Parliament.

Contrary to the experience of the noble Baroness, Lady Bowles, the Economics Secretary has been willing on, I think, two occasions in the past year to speak to the EU Services Sub-Committee and has, as far as I know, been very willing to accept the committee’s invitation. Under the excellent chairmanship of the noble Baroness, Lady Donaghy, my noble friend Lady Neville-Rolfe, who is in her place, the noble Lord, Lord Bruce of Bennachie, and I have struggled with these issues and put in a considerable number of hours thinking about them. That experience has certainly informed my remarks today.

Amendments 37A, 45 and 48 seek, similarly, to establish a formal basis for parliamentary scrutiny of the regulators in the exercise of their new rule-making powers under the Bill. I rather prefer Amendment 37A, in the name of my noble friend Lord Blackwell, because that does not require prior parliamentary approval, which would tend to undermine the independence and authority of the regulators.

Amendments 45 and 48, in the name of the noble Lord, Lord Eatwell, and others, are much more prescriptive and beg the question as to precisely how a “relevant” committee of each House, or indeed a joint committee of both Houses, is to be charged with scrutinising proposals. These amendments compromise too much the regulators’ ability to exercise their powers, and there are at present no parliamentary committees that could effectively perform these duties with sufficient resources.

I very much hope the Minister will tell your Lordships the Government’s proposals as to how parliamentary scrutiny of the regulators’ exercise of the delegated powers should be carried out and how they think the present committee structure will be able to cope with that.

Agriculture Bill

Debate between Earl of Kinnoull and Viscount Trenchard

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Wednesday 10th June 2020 Lords Chamber

[Viscount Trenchard (Con)]

My Lords, I thank my noble friend the Minister for introducing this important debate and I declare my interests as listed in the register.

As the second-largest net contributor to the European Union, for many years we have complained vociferously about the common agricultural policy, which still accounts for around 40% of the EU’s budget. The Government have undertaken to maintain the level of financial support received by farmers during the current Parliament, although the basis for the payments will change. Farmers need to plan for the future and they need to know how the Government’s new land management scheme will work. Can the Minister tell the House how farming businesses will be able to replace their lost income for the three years from 2021? I also ask him to resist the misguided calls being made by some noble Lords to introduce into the Bill measures that would bind this country into retaining full dynamic alignment with EU rules, including its controversial SPS regime. I am not advocating in any way that the UK should lower its food standards, but standards are not two-dimensional: higher or lower. The EU applies some unreasonably strict rules that do not make standards higher, but they do make them more expensive and cumbersome to comply with.

In some areas, the rules are protectionist in their effect, which means that EU consumers have to pay higher prices than they should. For many years, the EU has put too much weight on the precautionary principle. I cannot understand why we have become obsessed with chlorinated chicken as being symbolic of poor standards in animal welfare. Aside from the fact that US poultry farmers tend to use peracetic acid nowadays, the evidence shows that the incidence of campylobacter infection in the UK is nearly five times the level in the US, as already mentioned by my noble friend Lord Ridley. Further, the level of salmonella infections is significantly higher in the EU than in the US. If there was any doubt about the safety of using chlorine to wash vegetables for sale in supermarkets or to keep drinking water and swimming pools safe, it would obviously be banned.

I do not have time to mention the large number of myths which have been put about with regard to US animal welfare standards, but actually, permitted poultry stocking densities in the US and the UK are roughly comparable. As for beef, the UK Veterinary Products Committee concluded that it was unable to support the opinion of the European Commission that the risks from the consumption of meat from hormone-treated cattle may be greater than previously thought.

The UK, as an advocate for free trade and for proportionate regulation at the WTO, should ensure that its own SPS rules, unlike those of the EU, are compliant with the WTO’s SPS regime. This allows countries to maintain standards that are stricter than international ones, but only if those standards are justified by science or by a non-discriminatory lower level of acceptable risk that does not selectively target imports. The UK buys chicken from Brazil, Thailand, and Poland, which is an EU member state. Noble Lords who disagree with me should perhaps investigate stocking densities in any of those countries.

Our new free trade policy, including agreements with the US and Japan, will provide new opportunities for farmers to export their high-quality food products, especially those including lamb, to new markets where they will rightly find strong demand.

[The Deputy Speaker (The Earl of Kinnoull) (Non-Afl)]

Lord Judd. No? Lord Naseby.

Financial Guidance and Claims Bill [HL]

Debate between Earl of Kinnoull and Viscount Trenchard

Committee: 4th sitting (Hansard): House of Lords
Wednesday 13th September 2017 Lords Chamber

[The Earl of Kinnoull (CB)]

My Lords, as usual, the noble Lord, Lord Hunt, is right on the money and I do not disagree with a word that he said. I would add one tiny little thing: the net effect of the MROs and the CHCs is that they add to the cost of motor insurance in this country so that poorer people who struggle to pay their motor insurance will find it further away from them. For that solid reason, I strongly support the noble Lord’s two amendments.

[Viscount Trenchard (Con)]

My Lords, I, too, offer my support to my noble friend Lord Hunt. I agree with his two amendments, which seek to attack one of the major menaces of the spurious claims activity in our society at present. Does my noble friend the Minister think that the FCA is qualified and able to take on all these extra tasks? Will there be a new category of authorised person within the FCA? The skills required to regulate CMCs of various kinds may not be exactly the same as, for example, those required to give financial advice. It is also worth checking that there are not any other areas of spurious activity or the encouragement of spurious claims which are already being practised by unscrupulous people.

--- Later in debate ---

[The Earl of Kinnoull]

My Lords, I strongly support the noble Baroness, Lady Altmann, and I thank her for allowing me to add my name to her amendment. Obviously, I also strongly support the thinking behind the amendment in the names of the noble Lord, Lord Sharkey, and the noble Baroness, Lady Kramer, and I just wish to add one or two points.

There was a very helpful Which? report in November 2016 detailing the full horror of nuisance calls in the UK. For the report, telephone calls in 18 cities were sampled. In 17 of the cities—the survey took place over a long period—more than a third of all the private phone calls were nuisance calls, and in Glasgow, which topped this terrible table of nonsense, more than half of the calls in the sample were nuisance calls. The top type of nuisance call was about PPI, which of course is firmly a CMC nuisance. In commenting on the November 2016 report, Keith Brown MSP, the relevant Scottish Minister, was quoted as saying:

“These calls are a serious problem that can cause both emotional and financial harm, particularly to some of our most vulnerable citizens”.


A very horrible statistic in the report was that four in 10 people in Scotland who had received these calls felt intimidated by them. It is barbaric behaviour.

I was delighted to read in their manifesto what the Conservatives are going to do about cold calling on pensions. Like, I think, every other noble Lord in the House, I feel that we must use this opportunity to extend the ban to this area as well. I suppose that it is the businessman in me who does a quick upside/downside analysis. My upside analysis has a reduction of emotional and financial harm and intimidation, and my downside analysis has nothing. Perhaps the Minister could tell me whether she agrees with that analysis. I hope that she feels as I do—that it is a social necessity that we carry through one or other of these amendments and put it in the Bill.

[Viscount Trenchard]

My Lords, I too express support for both the amendment proposed by the noble Lord, Lord Sharkey, and that proposed by my noble friend Lady Altmann, supported by the noble Earl, Lord Kinnoull. I ask my noble friend the Minister to consider both amendments sympathetically. I expect that she is likely to say that she agrees with the amendments in principle but that this is not the time or the place for such a measure. However, surely it would be popular with the public to introduce a complete ban on unsolicited cold calling across a broad range of activities.

The Law Society and the ABI have both called for a crack-down on nuisance calling of all kinds. ABTA has also suggested that the Bill provides an opportunity to introduce an outright ban. As noble Lords are aware, solicitors, who are more tightly regulated than CMCs, are already banned from making unsolicited calls.

What I find particularly annoying is that if you answer your phone when you are overseas, you have to pay. I get so angry when this happens to me that I am sometimes more likely to start a conversation with the cold caller than I am to just hang up, which would obviously be the sensible thing to do. I say, “Do you know it’s three in the morning and I’m in Japan, and this is costing me money?”, but I find that the cold callers are not a very nice type of person in general and they are not sympathetic. My noble friend Lady Altmann mentioned that every year there are 51 million cold calls in respect of personal injury claims. In that case I am getting many more than my share, because I get about one a week.

It is a difficult area because, as noble Lords have pointed out in earlier debates, the FCA is not necessarily the most sympathetic regulator, and I agree with the noble Earl that we should look more closely at equivalent regulators in other countries. I had the privilege of serving under the noble Lord, Lord Burns, on the Joint Committee on Financial Services and Markets in 1999, which set up the FSA. We talked at great length about getting the balance right between protecting the industry and protecting the interests of the consumer. We did not necessarily get it right in the sense that the culture needs to evolve in a direction which is more sympathetic to the consumer.