House of Lords (Hereditary Peers) (Abolition of By-Elections) Bill [HL]

Debate between Lord Adonis and Lord Young of Cookham

Report stage (Hansard): House of Lords
Friday 15th March 2019 Lords Chamber

[Lord Adonis]

My Lords, what we have seen today is a serious abuse of the procedures of the House by the noble Lord, Lord Cormack, to stifle debate on a matter of significant public moment. That is what we have seen. I never thought, having been in this House for 15 years now, that I would see this abuse of procedure in the House. The issue of how people are appointed to this House is not a side or minor issue, it is fundamental to the working of our Parliament. I congratulate the noble Lord, Lord Strathclyde, on putting this issue before the House and I completely agree with him that we should continue to raise these matters, because this squalid Bill that the noble Lord, Lord Grocott, has promoted to perpetuate a nominated House of Lords is fundamentally against the interests of the people.

[Lord Young of Cookham]

My Lords, I gently remind your Lordships that we are meant to be discussing Amendment 5, which is about Standing Orders and the replacement of vacancies among people excepted from Section 1.

Construction Products (Amendment etc.) (EU Exit) Regulations 2019

Debate between Lord Adonis and Lord Young of Cookham

Wednesday 13th February 2019 Grand Committee

[Lord Adonis]

My Lords, I wish to make the point that it is totally unsatisfactory that we should be debating these no-deal regulations at the same time as the House is debating Brexit.

[Lord Young of Cookham (Con)]

Order!

HS2

Debate between Lord Adonis and Lord Young of Cookham

Thursday 13th December 2018 Lords Chamber

[Lord Young of Cookham]

To answer the first part of the noble Baroness’s question: as I said in my original reply, we will publish updated cost estimates as part of the full business case in 2019. In the second part, she reinforced the bid for more resources to go into public transport in the north; that has been noted and will be taken up in the spending review.

[Lord Adonis (Lab)]

My Lords, on behalf of the whole House, I am sure, I say that we would welcome the Minister’s appointment as Secretary of State for Transport so that he can take some responsibility for these issues. He might be a great improvement on the current regime. In respect of HS2 and HS3, it is vital that we improve intercity connectivity between London, the Midlands and the north. It is also vital that we improve connectivity between the northern cities. We should not have to choose between them. Does the Minister agree that the right thing to do is to proceed with HS2 and HS3, and that if we were not having to spend £39 billion on Brexit we could do both very comfortably?

[Lord Young of Cookham]

My Lords, you do not see one Transport Secretary for a long time and then two come along at once. The noble Lord is right: HS2 will directly connect eight of the 10 largest cities in the country; it is about connectivity and capacity as much as about speed. He has reinforced the strong bid I have already heard for more resources to HS3 and other connectivity within the cities of the north. That bid will be taken forward as part of the spending review. The added weight that he has just given to it will, I am sure, cut a lot of ice in the Treasury.

Duchy of Cornwall Bill [HL]

Debate between Lord Adonis and Lord Young of Cookham

2nd reading (Hansard): House of Lords
Friday 26th October 2018 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, I am grateful to the noble Lord, Lord Berkeley, for raising once again this important issue. He has brought these measures forward in a number of guises and is a true crusader for reform in this area. I thank all noble Lords for their valuable contributions to the debate, in particular my noble friend Lord Wakeham for putting the issue in a broader historical context and for explaining the basis of the current settlement. He also stressed the importance, a point underlined by the noble Baroness, Lady Hayter, of trying to seek a consensus before we make changes in this area.

Every day we say a prayer for the Prince of Wales, prospering him with all happiness. I am sure that nothing which has been said in this debate will go against the daily injunction we are given by the right reverend Prelates. The Duchy of Cornwall is an important institution. Since it was established in the 14th century, the Duchy’s main purpose has been to provide an income that is independent of the monarch for the heir apparent. The land, property and other assets of the Duchy and the proceeds of any disposal of assets are subject to the terms of a number of Acts, including the Duchy of Cornwall Management Acts 1863 to 1982, the combined effect of which is to place the Duchy’s assets in trust for the benefit of the present and future Dukes of Cornwall and to govern the use of the assets.

The current Prince of Wales chooses to use a substantial proportion of his income from the Duchy to meet the cost of his public and charitable work. The Duchy funds the public and private lives of five other adult members of the Royal Family—the Duchess of Cornwall, the Duke and Duchess of Cambridge and the Duke and Duchess of Sussex.

Turning to Clause 1, the noble Lord, Lord Berkeley, and others have raised the matter of the inheritance of the Duchy of Cornwall. The issue of gender equality is a priority for this Government and quite rightly the matter has been raised again today. Noble Lords are correct to say that at present the title can pass only to the eldest son and heir of the monarch. Thus, when the Queen was heir presumptive to the throne, she did not hold the title of Duke of Cornwall and the Duchy lands were vested in her father, the sovereign. The mode of descent specified by the Charter of 1337 is unusual and differs from that which commonly occurs in respect of hereditary titles. The monarch’s eldest son is automatically the Duke of Cornwall immediately he becomes the heir apparent. However, the manner of descent of the Duchy would preclude a grandson who is heir apparent from gaining the title of the Duke of Cornwall if he were heir to the sovereign because he is not the son of the monarch. With the Duchy of Cornwall we have a very unusual piece of English history that does not conform to the standard rules of descent for hereditary titles.

If we look back over recent years, there have been long stretches when there has been no eldest son to be the Duke of Cornwall, in which case the Duchy estate vests in the sovereign who oversees the affairs of the estate in lieu of a Duke. Viewed from today’s perspective, as opposed to that of the 14th century, I can understand why noble Lords have raised concerns about the descent of the Duchy of Cornwall, and indeed the Government have some sympathy with those concerns against the background of the changes made to the Succession to the Crown Act 2013 and other moves to increase equality. However, parliamentary time is currently scarce and noble Lords will agree that there are other more pressing priorities. Furthermore, given that currently there are three male heirs to the sovereign—Prince Charles, Prince William and Prince George—I do not believe that the time is right to dedicate parliamentary time to this matter when it is badly needed elsewhere. Indeed, the issue raised by the noble Baroness may not arise until the next century.

The noble Lord, Lord Marks, raised the more general issue of the succession of hereditary titles, on which I am sure a number of noble Lords have different views. However, they are not the subject of this particular legislation. Perhaps I may reassure the House that a female heir apparent will not find herself at a financial disadvantage because the Sovereign Grant Act 2011 broadly ensures that financial provision equal to the income from the Duchy is made for the heir apparent.

I turn now to the amendments on enfranchisement which are of particular interest to many in this House and to myself as a former housing Minister. The Leasehold Reform Act 1967 gives leaseholders the right to purchase a property from the landlord if certain circumstances are met. The Leasehold Reform, Housing and Urban Development Act 1993, which I put on the statute book, gives the tenants of flats in a building the right to collectively acquire the freehold of that building, again if certain conditions are met. The Act also provides the right for a tenant to extend the lease if certain conditions are met. Both Acts exempt the Duchy of Cornwall and other Crown lands from these provisions. This is because the capital raised from the Duchy cannot be distributed and is reinvested in the Duchy; the Duke of Cornwall receives funds only from the surplus. The general exemptions are important to protect land and property associated with the Crown and to ensure that the Duchy continues to perform its role for future Dukes.

However, I shall turn to what I think is the crucial point: Crown authorities have voluntarily committed, most recently in 2001, to abide by the same terms as private landlords in most circumstances. The Duchy has more than 600 residences, around 20% of which would be subject to these Acts had the Duchy not been exempted. The number of tenancies which the Duchy has sold or granted a lease extension to tenants under the terms of the enfranchisement Acts is around 120. There are some exceptions, as the noble Lord, Lord Berkeley, implied, including the historic Royal parks and palaces, property or areas which have a historic association with the Crown or where there are security considerations.

The Bill would represent a significant change to the legal status of the Duchy of Cornwall. There is a presumption that legislation does not bind Crown lands, including the Duchy of Cornwall. Removing Crown immunity for the Duchy of Cornwall could be problematic in the future. As the Duchy of Cornwall vests in the sovereign when there is no Duke of Cornwall, the sovereign has a residual personal interest in matters affecting the property of the Duchy of Cornwall. When vested in the sovereign, the Duchy of Cornwall would have a different legal status from other lands belonging to the Crown.

I turn to the tax status, again raised by a number of noble Lords. The Bill proposes that the Duchy of Cornwall will be liable to income tax and capital gains tax. Let me start by confirming the current arrangements. The Duchy enjoys Crown exemption and is not in any case a corporation within the charge to corporation tax. The Duke of Cornwall is not entitled to the proceeds or profits from the sales of the Duchy’s capital assets, which are retained in the Duchy to provide income for the Duke and future beneficiaries.

The Prince is liable to pay income tax and capital gains tax on any income and capital gains he may receive from other non-Duchy sources. In line with the Memorandum of Understanding on royal taxation, he pays income tax voluntarily on the surplus of the Duchy of Cornwall after deducting official expenditure, applying normal income tax rules and at the 45% rate. In his annual review, the Prince of Wales stated that he paid £4.85 million in the 2017-18 financial year, although this figure includes VAT, income tax and capital gains tax from non-Duchy sources. If employer’s national insurance contributions and council tax are included, the total tax paid increases to £5.3 million. Of course, the expenditure varies from year to year, as does the value of the surplus.

The tax status of the Duchy of Cornwall reflects that of the sovereign, who is also not legally liable to pay income tax, capital gains tax or inheritance tax because the relevant enactments do not apply to the Crown. The Queen also pays income tax and capital gains tax on a voluntary basis in line with the Memorandum of Understanding. Moreover, the unique nature of the Duchy of Cornwall means that, in order to produce a workable income tax and capital gains tax regime, deeming the Duchy as a settlement would not be sufficient. Further provisions would be necessary to ensure that the legislation would work effectively without unintended consequences.

In his speech, the noble Lord, Lord Adonis, focused mainly on the Sovereign Grant Act rather than the Bill before us. I will write to him in answer to some of the issues that he raised. In summing up, I again pay tribute to the noble Lord, Lord Berkeley, for pursuing this important matter.

[Lord Adonis]

What has happened to the tax paid by the Duchy of Cornwall in recent years? The Minister gave last year’s figure. Can he say how that figure has changed?

[Lord Young of Cookham]

I have the figures for only the past three years in my brief. I think that the noble Lord’s queries went further back than that, so I will write to him. I would just say that the Labour Party voted for the Sovereign Grant Act.

House of Lords (Hereditary Peers) (Abolition of By-Elections) Bill [HL]

Debate between Lord Adonis and Lord Young of Cookham

Committee: 2nd sitting (Hansard): House of Lords
Friday 7th September 2018 Lords Chamber

[Lord Adonis]

I was too concerned about filibustering my noble friend’s Bill.

[Lord Young of Cookham]

Perhaps I may gently remind your Lordships that we are debating Amendment 17 onwards, which relate to the Earl Marshal and the Lord Great Chamberlain.

Railways: Disabled Passengers

Debate between Lord Adonis and Lord Young of Cookham

Thursday 24th May 2018 Lords Chamber

[Lord Young of Cookham]

I am enormously grateful to my noble friend. Pre-privatisation, when the rail network was in public ownership, I had to go to the Treasury on bended knee to plead for investment in trains, and there was always education, health and defence. One of the key benefits of privatisation was that once the railway industry was in the private sector that constraint fell away, and there was a dramatic increase in investment in the railways after privatisation.

[Lord Adonis (Lab)]

My Lords, I do not think I have ever heard so complete and satisfactory an Answer to a Question in this House as the Minister’s first Answer. Could we therefore give him a leave of absence from the House so that he can deal with the underlying problem of why all the trains are so late and tend to them each individually?

[Lord Young of Cookham]

I think I am right in saying that the noble Lord himself was once Secretary of State for Transport. I wonder whether he delivered to himself the plea that he has just made to me.

House of Lords: Membership

Debate between Lord Adonis and Lord Young of Cookham

Monday 21st May 2018 Lords Chamber

[Lord Adonis (Lab)]

My Lords, I beg leave to ask a Question of which I have given private notice.

[Lord Young of Cookham (Con)]

My Lords, as I was looking forward to telling the noble and right reverend Lord, Lord Harries of Pentregarth, tomorrow in response to a topical Question that he tabled on Friday, the Government are committed to working with others in your Lordships’ House to address its size. Noble Lords will no doubt be aware that my right honourable friend the Prime Minister wrote to the Lord Speaker on 20 February to set out the Government’s position in more detail, and a copy of that letter is in the Library of the House.

[Lord Adonis]

My Lords, I am grateful to the noble Lord for answering the Question—I am his most fervent admirer; he once described us as two herbivores in a world of carnivores—but I am surprised that the Leader of the House is not in her place to answer a Question on a matter on which she is clearly and supremely accountable to the House.

When the Labour Party left office in 2010 as a majority Government, Labour had 26 more Peers than the Conservatives. Now, as a minority Government, the Conservatives have 63 more Peers than Labour—more than twice as many—and the Prime Minister has just published a list of Peers with three times as many Conservatives on it as Labour. Does the noble Lord agree that this is a clear and flagrant breach of the constitution? Why does he think it justified for the Conservatives to have 63 more Peers than Labour? When the Prime Minister said that Brexit was about “taking back control”, did she mean the Conservative Party seizing control of the state in the interest of the Conservative Party alone?

[Lord Young of Cookham]

As the noble Lord will know, I have been answering questions about the composition of the House of Lords for some time; that is why I am in my place answering this one. On his main point, there is no constitutional concept that there has to be some degree of parity between the main opposition and government parties in your Lordships’ House. The Prime Minister has shown commendable restraint; it is the smallest Dissolution Honours List since 1979. If one looks at the number of Peers who have retired, one sees that 50% of those retiring from the political groups have been Conservatives. Even with these new appointments, my party will represent only 31% of your Lordships’ House. I do not agree with the accusation made by the noble Lord about unfairness.

European Union (Withdrawal) Bill

Debate between Lord Adonis and Lord Young of Cookham

Wednesday 14th March 2018 Lords Chamber

[Lord Young of Cookham]

That the House do now resume.

[Lord Adonis]

On the subject of the House resuming, we have now been going for nine and a half hours. We have a very important Statement coming up, on relations with Russia, which many noble Lords who have been party to the debate for the past nine and a half hours wish to stay for. I have just been told that the Government are proposing that we do not have any break at all after the Statement, before we resume Committee stage. I see the Leader of the House is in her place. This is totally unacceptable behaviour on the Government’s part. Does she expect us to remain in session for 12 or 15 hours, conducting the business of the House, with no break whatsoever? The way in which the Government are handling Committee stage is simply unacceptable. If the Government do not give us a break, I intend to move a further adjournment when the Government attempt to resume Committee stage in, I assume, 40 minutes’ time.

[Lord Young of Cookham (Con)]

My Lords, there will be an opportunity for those who have been taking an interest in Committee to have a break of 40 minutes while we take the Statement. The Government are anxious to make progress with the Bill.

[Lord Adonis]

The Statement is on one of the most important issues facing the country. Is the noble Lord telling us that we have to choose between having a break and participating in the Statement on Russia? That is simply unacceptable. I do not think that the usual channels should have agreed it, if it has been agreed. It seems to me to be a straightforwardly unacceptable practice.

Capita

Debate between Lord Adonis and Lord Young of Cookham

Thursday 1st February 2018 Lords Chamber

[Lord Young of Cookham]

I am grateful to the noble Lord for his questions.

There are two levels of risk assessment. One is at the point at which a particular contract is let. A risk assessment that is obviously proportionate to that contract is made at that point, making sure, for example, that there are adequate cash reserves to see the contract through. Then, at a slightly broader level, one monitors continuously the broad health of the company concerned. On that point, there is a Crown representative in Capita and has been throughout the period in question.

In a moment, I will come on to the question of diversity of supply. On pensions, we do not believe that there is a risk to the pension funds that are administered by Capita. We think that that is perfectly safe. On Capita’s own pension scheme, its deficit in June 2017, I think, was £381 million. A triennial review is going on. The outcome is widely anticipated to be a lower deficit. Part of the announcement yesterday was on further resources being put into the pension fund.

The important issue that the noble Lord raises on trying to broaden the base of contractors that work for the Government is a priority. We have a target of allocating I think 30% of public sector contracts to SMEs. Work is ongoing. There is a good question as to whether work that is subcontracted by a major contractor to smaller contractors scores or whether the smaller contractor should be, as it were, the prime contractor. This work is ongoing, but we take the point. We want to see a greater proportion of work going to SMEs.

On SMEs, Capita’s record on prompt payment is quite good. Capita generally paid 70% to 90% of all subcontractors within 30 days. It has introduced a new payment system and aims to pay 100% of subcontractors within 30 days. I hope that that will be of some reassurance.

On the comparison with Carillion, I tried to make the point at the beginning that the steps that Capita announced yesterday were perhaps steps that Carillion should have announced earlier. They were designed to strengthen the balance sheet, reduce dividends and make sure that the fate that befell Carillion does not happen to Capita. Of course, Carillion was exposed to some major construction contracts. Capita’s business model is quite different. If I have not answered all the noble Lord’s questions I will drop him a line.

[Lord Adonis (Lab)]

My Lords, does the noble Lord think it appropriate that Capita is paying any dividends, given the huge stress that it is currently under? Will he tell your Lordships whether the Crown representative, who is currently on the board of Capita, has been continuously in post for the last 12 months?

[Lord Young of Cookham]

On the first question, I understand that dividends have been suspended. That was part of the announcement. That, together with the rights issue of some £700 million, will mean that there will be some additional £900 million available in cash to the company. I will write to the noble Lord. I have asked about the Crown representative. I was assured that one had been in place. I will drop him a line on the specific question of 12 months, but there has been, and indeed is, a Crown representative on the board.