Protection for Whistleblowing Bill [HL]

Lord Berkeley Excerpts

Friday 2nd December 2022 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, I also fully support this Bill and I congratulate the noble Baroness, Lady Kramer, on her persistence in bringing forward her third attempt. I also pay tribute to all the people who supported her and the all-party group.

I will start by repeating the words of Mary Robinson MP, who said that

“if you name an industry, I can name … a scandal brought to light by whistleblowers”.—[Official Report, Commons, 26/4/22; col. 598.]

That is a pretty wide generalisation. She went on to say that ignoring whistleblowers costs lives. Whistleblowers are proven over and again to be the first line of defence against crime, corruption and cover-up. They do not do it for fun, pretty obviously; they do it because they want to protect other people from the impact of wrongdoing. This is the Bill that they want, because it puts whistleblower issues front and centre and protects those who speak up from retaliation.

I will give a few examples. I expect that many noble Lords will have read the Reading the Signals report about the east Kent NHS trust last year and the hundreds of avoidable deaths and injuries to mothers and babies. It is a traumatic case and report, but it has also cost the NHS about £8 billion in compensation—let alone the damage done to the people concerned.

I have other examples. I was first approached by a whistleblower on HS2—somebody called Doug Thornton. I have spoken about him before. He is a chartered surveyor, a fellow of the Royal Institution of Chartered Surveyors and a former top civil servant. He was recruited by HS2 to be its land and property director, to value and purchase all the land needed. He identified large holes in the accounts, and delays, and he believed that HS2 was misleading Parliament as to the real cost of the project. After alerting the board and chairman, he found it necessary to resign. I do not blame him, but of course he lost his job and his career.

Many whistleblowers approached Michael Byng, a quantity surveyor who I have been working with closely, alleging fraud on the HS2 project in some pretty wide areas. As noble Lords will know, Michael Byng believes that the cost of the project should be £158 billion, compared with the Government’s costs of £102 billion, but what is important is that whistleblowers inside HS2 have contacted Mr Byng to offer their agreement and support for his appraisal costs, which they believe are being deliberately withheld from Parliament by HS2 Ltd and the Department for Transport for fear that knowledge of the true cost would lead to curtailment and cancellation.

I can go back through HS2 phase 1—London Euston is not sorted, nor is the station on the Great Western main line, and there are serious ground settlement conditions up the line—but that really is not the point. The point is that railways now use a method of measurement that I will call RMM1. HS2 denies that it uses it, but all the people within HS2 say that it is used.

Of course, this has resulted in HS2 coming up with two parallel sets of accounts. This is like having two columns for your cost accounts: one we keep for ourselves and one we share with Parliament. According to the whistleblowers, they are very different accounts. There are many reasons for this, but the general reality is that they are trying to delay news of future costs so that the news does not get out until it is too late to do anything.

These whistleblowers are directing their allegations to Mark Thurston, the chief executive of HS2 Ltd; Michael Bradley, the former chief financial officer of HS2; Rob Doran, the former project controls director of phase 1; and Tim Smart, the current managing director of phase 2. However, Mark Thurston and the Permanent Secretary are accounting officers, and accounting officers are supposed to account to Parliament that the money they say they need is sufficient and that it is sufficient to finish the job. I do not know how they can do that, because, at the moment, there is a 50% difference.

I hope that the large number of whistleblowers in HS2 will eventually receive some reward for what they have told Michael Byng and that they will tell other people quite soon. However, it is extraordinary that none of these allegations have been independently investigated. I hope that this Bill will be a safety net for all whistleblowers. There is a similar situation with Crossrail, which I will not go into because I do not have time. The whistleblowers really need to avoid the fear of retaliation; this will undoubtedly save the company and the country money. I hope the Government will give this Bill every encouragement.

Energy Prices Bill

Lord Berkeley Excerpts

3rd reading
Tuesday 25th October 2022 Lords Chamber

[The Lord Privy Seal (Lord True) (Con)]

My Lords, I have it in command from His Majesty the King to acquaint the House that His Majesty, having been informed of the purport of the Energy Prices Bill, has consented to place his interest, so far as it is affected by the Bill, at the disposal of Parliament for the purposes of the Bill.

[Lord Berkeley (Lab)]

My Lords, in respect of the King’s consent being signified, can the Leader of the House say exactly what that consent comprises? We have this in many Bills—I believe they are all sent to the palace, and the Duchy of Cornwall sometimes, for approval or comment. There is no transparency, so we do not actually know why the consent is needed here and whether it is for their private or their public interest. Is it to help them with electricity bills this winter in their many palaces, which might be private or public or both? Or is it because the Crown Estate—since a proportion of the income from it goes to the sovereign, and it is doing very well with offshore wind—is going to get an extra cut? Some transparency on this at the start of a new reign would be very welcome and interesting, so perhaps the Leader of the House can give me a little more explanation.

[Lord True (Con)]

My Lords, it is a long custom in this House that we are extremely restrained in what we discuss which touches on the potential attitudes of the sovereign and the Royal Family. However, this is marginally tangential, and since the noble Lord was kind enough to give notice that he was going to rise at this point—and if I may humbly say so, it is a good courtesy of your Lordships’ House to give notice, and a good way of getting a response—I will on this occasion give an answer, because I hope it gives an example of the carefulness with which these matters are considered.

I can explain that consent was requested in relation to Clauses 16 and 19. Counsel had advised that Clause 16 may impact the interests of the Crown, as it confers a power on the Secretary of State to require certain electricity generators to make payment to a payment administrator, by reference to the amount of electricity they generate in a particular period. Implementation of these powers could, in principle, capture a generating station that the King or Duchy might own or have an interest in, and thereby could require payments by the King in relation to the generation of electricity at that generating station in a period.

Counsel also advised that Clause 19 is capable of impacting the interests of the Crown. The Crown Estate, Duchy or the King, through his personal property, may be required by regulations under Clause 19 to pass on energy price support that they receive—for example, in respect of gas or electricity supplied to premises of which they are landlords—to end-users, including tenants to whom they supply heating, cooling or hot water produced using energy in respect of which price support has been received. Those tenants might acquire a cause of action against the Crown in the event that such support is not passed on. Regulations under Clause 19 may also impose on the Crown requirements relating to the provision of information.

I hope that we do not have to go through this process on each occasion and that your Lordships will understand that this is a consent which the Crown makes to put its interests at the disposal of your Lordships. I also hope that that detailed response, which the noble Lord, Lord Berkeley, asked for, will assure your Lordships as we go forward that extremely careful consideration is given to these matters.

Construction Contracts (England) Exclusion Order 2022

Lord Berkeley Excerpts

Monday 13th June 2022 Grand Committee

[Lord Berkeley (Lab)]

My Lords, I too am grateful to the Minister for his explanation—I tried to understand most of it. I too am interested in paragraph 7.3, to which the noble Baroness referred, because it comes back to the question of the best way of achieving fair competition when there is going to be a massive new project to provide better services in the water sector. One has to look perhaps at the example of the Thames Tideway tunnel—that probably comes under the category of being large. Whether it will deliver what Thames Water thinks that it will at a price that customers can afford remains to be seen. I do not quite see why these two large projects should be dealt with separately. Could the Minister name them and give us some idea of what they are about and what the risks might be? I will not go into them now, because they could be anything.

The regulator is apparently in charge of all of this and will vet contracts that it seems to me will be to design, construct and operate—why can these not be done by competitive tendering, with the usual construction industry fallbacks if things go wrong? It would be interesting if the Minister could give us more information about not only the two big ones but the 18 strategic water resources ones. How will anyone be able to tell or believe—we hope that we will be able to believe—that the regulator has delivered for the customer as well as for shareholders?

[Lord Fox (LD)]

As the Minister knows, I am no lawyer—perhaps I should have taken a law degree before attempting this statutory instrument. I note that it is not just the European Union that can amass red tape; we seem to be doing it very well on our own, so I am not sure it can refer us to the WTO for competition.

This is a very complex model. I was caught by the idea that we appear to have been progressing without it for a while. In a sense, is this closing a loophole that has been spotted, or does this reflect a trend in how the market is going about delivering these projects? What drove the decision to table this statutory instrument now? In other words, what has caused this to happen now when it clearly could have happened some time before or in future?

In passing, the Minister mentioned benefits to consumers. I think he outlined that there would be some sort of competitive tendering process, and therefore the price of a particular project would go down in cost. I am interested in the very sharp end of the consumer experience—the connection and that kind of thing. I assume that this applies to that as well as to the larger projects. If it does not, how will a new consumer attempting to join the system experience it? As I understand it, at the moment they are given a “take it or leave it” price by the water supplier. Does that continue to be the case? Will there be an opportunity for consumers to drive down the cost to them of an individual connection or is this focusing only on much larger projects?

The other point is how this flows through the supply chain. The Minister mentioned that the tier 1 contractors are potentially liable to be most affected. However, this marks a change right down through the chain to tiers 2, 3 and others. I would be interested to know how low down their tier structure the department intends to bring suppliers up to speed on how they address their role in this change in the supply chain. Other than that, I think I welcome this and certainly look forward to the Minister’s answers.

--- Later in debate ---

[Lord Callanan (Con)]

I thank noble Lords for their valuable contributions to the debate. Let me start by emphasising, as I did initially, that this exclusion order is very narrow in scope. It is well defined to ensure that it is used only for the intended and very specific contracts that I referred to. These are the two specific construction contracts that are used to deliver the direct procurement for customers model for high-value infrastructure assets in the regulated water and sewerage sector.

Let me also emphasise that the creation of an exclusion under this Act is very much an exception and not the rule. DPC is a competitive delivery model focused on accelerating the delivery of strategic infrastructure in this particular sector. The current absence of an exclusion for these specific contracts threatens the viability of DPC and the very great benefits it could bring to consumers. That position has been confirmed through consultations with appropriate stakeholders. That is the reason the Government have chosen to use the powers conferred on them to make exclusions from the provisions of the construction Act in this particular, limited, isolated case.

I shall now deal with the questions I was asked. First, to my noble friend Lady McIntosh: SUDS are not currently associated with the schemes being developed but may be, in the future, if they are of sufficient size to be required.

The noble Lord, Lord Berkeley, asked for details of the projects. The first project is United Utilities Water’s Haweswater aqueduct resilience programme, which I am sure the noble Lord is very familiar with. It is to replace the existing Haweswater aqueduct, which is at risk of failing, which currently transfers water from the Lake District to north-west England, especially Manchester. The second English project is sponsored by Southern Water, and it is to deliver water to the south-east of England. United Utilities Water’s Haweswater aqueduct resilience programme, a very large project, will replace parts of the Haweswater aqueduct, which brings water to Cumbria and Lancashire. Southern Water’s Hampshire water transfer and water recycling project is required to ensure supplies to the Hampshire region. It is able to meet, apparently, one-in-500-year droughts. That is the second scheme I referred to.

In response to the question asked by the noble Lord, Lord Fox, as I emphasised again, the exclusion order is narrow in scope, and it is well defined to ensure that it is used for these particular, intended contracts only—the two specific construction contracts that are used to deliver the DPC procurement model for high-value infrastructure assets. Those entering into the procurement mechanism will, of course, have full knowledge of the terms including that payments during the construction phase will be made at specified intervals and that payments made through the unitary charge will commence only once the asset is capable of operating. Importantly, alternative dispute resolution mechanisms will also be included within the CAP contracts. All remaining construction contracts through the supply chain of the DPC projects—and, let me emphasise, in particular those appertaining to SMEs—would, of course, remain subject to all the relevant provisions within the construction Act.

In response to the question from the noble Lord, Lord McNicol, this instrument is limited—

[Lord Berkeley (Lab)]

I am grateful to the Minister, but before he moves on, could he explain why the regulator, or the Government, thinks these very large contracts should be treated separately and differently, rather than having several smaller ones, as it may be, where the risk of things going wrong might be lower?

[Lord Callanan (Con)]

As I said, these are specific to a unique procurement model which is being trialled and which we think will be appropriate in the water and sewerage sector. We therefore think it appropriate to exempt these particular, very large contracts to enable the model which effectively, as far as the companies are concerned, delivers the construction, management, maintenance, et cetera of very large construction projects. It is a unique procurement mechanism which we think has the potential to benefit customers in the future, so in this very limited case it was deemed appropriate by the Secretary of State to exempt them from the regulations.

--- Later in debate ---

[Lord Callanan (Con)]

Ultimately, of course, previous contracts have delivered and been successful, but we think that a different model, involving more competition, could deliver better value for consumers, which is why we have produced these regulations. I therefore commend them to the Committee.

[Lord Berkeley (Lab)]

I am grateful to the noble Lord again. Following his last comment—

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, I think the Minister has now taken his seat.

[Lord Berkeley (Lab)]

The noble Lord mentioned Southern Water as an example of the need for competition, and I am sure he is right about the need for competition—but who is competing? Is Southern Water competing against somebody else or are two contractors that are reporting to Southern Water, as the principal, competing? How does it work?

[Lord Callanan (Con)]

I will write to the noble Lord if my answer is not correct, but my understanding is that Southern Water is the procurer and will be regulated by Ofwat within the overall monopoly structure of the water industry. This is why strict regulation and price controls are imposed on water companies. The idea is that a company will be able to involve competition in selecting contractors for the delivery of particular projects. So the company will be the procurer, albeit under the overall model regulated by Ofwat.

India: Cereals Export Ban

Lord Berkeley Excerpts

Thursday 19th May 2022 Lords Chamber

[Lord Grimstone of Boscobel (Con)]

My Lords, we had a good debate on these matters yesterday in the debate on the gracious Speech. We are all working very hard on this. However, noble Lords will appreciate that the scope for direct action on this is limited.

[Lord Berkeley (Lab)]

My Lords, the House knows that the Black Sea ports will be effectively closed to wheat exports for some time to come. I have come across a very interesting paper by the European Commission, working out how to get the wheat by land—as the right reverend Prelate said—to other ports on the west. Can the Minister get in touch with the European Commission, if he has not done so already, and try to collaborate with it so that we can all work together to get these cereals out in a westerly direction?

[Lord Grimstone of Boscobel (Con)]

My Lords, working together is obviously extremely important in a situation such as this. I will read the report to which the noble Lord refers and take it up.

Lithium Ion Batteries: Fire Safety Standards

Lord Berkeley Excerpts

Thursday 3rd March 2022 Lords Chamber

Asked by

[Lord Berkeley]

To ask Her Majesty’s Government what fire safety standards are applied to lithium ion batteries in e-bikes, e-scooters and mobility scooters; and whether such batteries are safe to use and be charged in buildings.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the product safety regulatory framework places obligations on manufacturers to ensure the safety of consumer goods, including the batteries used to power them. In short, the law requires that batteries used in such products must be inherently safe, regardless of where they are used, charged or stored. To support them, manufacturers may choose to apply standard EN 62133-2, which specifies requirements and safety tests for the safe operation of portable, sealed secondary lithium cells and batteries.

[Lord Berkeley (Lab)]

My Lords, I thank the Minister for that Answer. I have a different EN number, which I will not bore the House with. He will be aware of a number of fires allegedly caused by lithium ion batteries in cars, on bikes and on scooters, which have caused house fires and one on an Underground train. One manufacturer told me that

“unless we can prove that a product has caused serious accident or injuries, there is no priority from Trading Standards to do any pro-active checks”.

Is not the answer to have proactive checks, as I believe they do in Belgium, the Netherlands and Germany, for about 10 years to prevent these illegal imports causing more fires, allowing the development of lithium ion batteries to continue safely?

[Lord Callanan (Con)]

The noble Lord highlights an important point. I am devastated that our EN numbers do not match, but I would be happy to compare them afterwards if the noble Lord wishes. It is vital that we carry out checks on illegally imported products; the fire that he referred to was caused by something not in conformity with UK standards. We carry out checks on a risk-based approach where required.

--- Later in debate ---

[Lord Callanan (Con)]

I do not have figures for the precise number of battery recycling plants in the UK. I am aware of some developments in that field, but I do not have the precise numbers. The noble Baroness makes an important point: that we need to ensure end-to-end recycling and reuse.

[Lord Berkeley (Lab)]

My Lords, I am grateful to the Minister for his earlier response to me, but he will be aware that in the last month two train companies have banned electric bikes and scooters being taken on to their trains. That has now been withdrawn, but it was done because London Fire Brigade’s press release was a bit unclear about the risk. This goes back to the lack of a firm specification for and firm enforcement of the quality of batteries so that there is no misunderstanding. It has upset a lot of people.

Subsidy Control Bill

Lord Berkeley Excerpts

Committee stage
Wednesday 9th February 2022 Grand Committee

[Baroness Altmann (Con)]

I rise briefly to add my support to the concerns expressed by other noble Lords that a one-month timeframe, especially for smaller companies, is not only challenging but potentially unachievable and could cause significant detriment to our promising smaller companies. They may be harmed by a subsidy, possibly unintentionally, and this could deny them the opportunity to appeal against that which could be harmful to their business. I urge my noble friend to consider the reasonableness of this amendment. If he is not able to accept it now, could he explain to the Committee how, in practice, this one-month timeframe is reasonable and could reasonably be met by those potentially affected?

[Lord Berkeley (Lab)]

I intervene briefly to strongly support my noble friend’s amendment and other noble Lords’ comments. One solution that the Minister might be tempted to suggest is to allow them to get it in within a month but add more documentation later. That would be easy.

I refer the Committee to the proposed new rule 98A(7) of the Competition Appeal Tribunal Rules:

“The Tribunal may not extend the time limits provided for in this rule unless it is satisfied that the circumstances are exceptional.”


Probably none of the things that noble Lords mentioned would be classed as exceptional, which confirms that one month is hopelessly short. I very much support three months or even longer, if anyone has a better idea.

[Lord Callanan (Con)]

My Lords, I thank the noble lord, Lord McNicol for this amendment, and the noble Baroness, Lady Blake, for speaking to it. I also thank the contributions of other noble Lords—and the noble Lords, Lord Fox and Lord Lamont, reflected on this issue during the Monday’s session.

An interested party, which is anyone whose interests are affected by the subsidy, may apply to the Competition Appeal Tribunal for a review of the subsidy within one month of the subsidy’s upload to the transparency database, if there has been a post-award referral to the CMA within one month of that report, or if a pre-action information request has been made within one month of the response to this request. The limit has been set at one month so that we can give legal certainty to public authorities and subsidy beneficiaries as swiftly as possible. It is important to avoid creating such prolonged uncertainty that it acts as a brake on legitimate subsidies.

We must also ensure that interested parties have sufficient time to consider a subsidy before asking the CAT to review it. That is just what this Bill does. An interested party, perhaps a competitor who is thinking of approaching the CAT to review a subsidy, can make a pre-action information request to a public authority. The limitation period is then extended until one month after the public authority has responded. Since the pre-action information request gives the public authority up to 28 days to respond, in practice, the limitation period can run for two or three months after the publication of the subsidy or scheme on this database.

--- Later in debate ---

[Lord Wigley (PC)]

My Lords, I was delighted to hear the speech of the noble and learned Lord, Lord Thomas, who raised matters of considerable importance to which we will undoubtedly have to return on Report. I support the comments made by my friend, the noble Lord, Lord German.

I shall not speak at length. We have been over and over, time after time, the question of the relationships with the devolved institutions, so I ask the Minister this simple question: will the Secretary of State give an assurance that, in every instance where guidance may have an implication for the Welsh, Scottish or Northern Ireland Governments, he will actively consult them prior to issuing the guidance?

[Lord Berkeley (Lab)]

My Lords, I rise to speak briefly to my Amendment 80, which is a probing amendment. It is grouped with this lot of amendments, but it is a different subject, and I will try to be as quick as I can.

It relates to Clause 85, headed “Crown application”, which provides that the Act will apply to the Crown, but excluding Her Majesty in her private capacity, Her Majesty in right of the Duchy of Lancaster, and the Duke of Cornwall. I am afraid that this continues the debate about the uncertainty of the role of the Duke of Cornwall and the Duchy. It is one little hobby-horse that I have been pursuing for many years, and I apologise for that. I refer noble Lords who want to get into the detail to the Second Reading of my Private Member’s Bill, the Duchy of Cornwall Bill, on 26 October 2018, which seems a long time ago.

Since the Duchy of Cornwall says that it is in the private sector—I am assuming that the Duke and Duchy are synonymous—why should the Duke of Cornwall or the Duchy be given special treatment in this Bill? No other big landowner or property owner is allowed special treatment. I understand why Her Majesty in her private capacity and the Duchy of Lancaster are, but the Duchy of Cornwall says on its website:

“The Duchy of Cornwall is a … private estate … established by Edward III in 1337.”


This was confirmed in the second-tier tribunal in 2016, after a Mr Michael Bruton had claimed that the Duchy was in the public sector and therefore needed to do an environmental study on putting Japanese oysters into the Helford river in Cornwall, which it owned. In the First-tier Tribunal, Mr Bruton had won, largely because the Duchy’s representative said, “To all intents and purposes, we believe we are above the law”, which is quite an interesting statement. Of course, the Duchy then appealed to the next-tier tribunal and, not surprisingly, with all the free legal advice it gets from the Government, it won. The tribunal’s decision was:

“The Duchy of Cornwall is not a public authority for the purposes of the Environmental Information Regulations 2004.”


Why should the Duchy of Cornwall be treated differently from anyone else—any of us—to whom this Act will apply? If the Minister is not able to answer that question today, perhaps he could write to me. He might want to contact the Duchy itself. I warn him that the last time I raised this, in the leasehold reform Bill debates about three or six months ago, the Minister agreed to write to the Duchy of Cornwall, the Duchy of Lancaster and the Crown Estates about the leasehold reform Bill. We got good responses from the Duchy of Lancaster and the Crown Estates but, as far as I know, no response from the Duchy of Cornwall.

I do not think that right, because the Duchy of Cornwall must have given views on this Bill and I would like to know what it said. Did it send a letter? Did the Minister have correspondence? If so, can he put it in the Library? If he did not, how was this decision made? I think it very unfair that the Duchy of Cornwall—probably uniquely among big estates in this country, whatever their rights and wrongs—should be given this special treatment, for it means an exemption to the Bill.

[Lord McNicol of West Kilbride (Lab)]

My Lords, I think we have a hard stop in 20 minutes, so I will be very brief. I am grateful to noble Lords who put down amendments in this group, including the Minister; I hope there will be lots more to come from the Minister. My Amendment 75 has been signed by the noble and learned Lord, Lord Hope of Craighead, and the noble Lords, Lord German and Lord Wigley, and I appreciate their support on this, as well as in the debates on many other devolution-focused amendments.

I was going to say, judging by the previous responses on the devolved authority amendments, that I did not think we would hear much change, but actually the Minister’s response to the last debate was heartening, so hopefully this amendment regarding the devolved authorities will receive the same response. I will leave it there. As we finish Committee, I note that the comments made in the DPRRC report were very telling, and I look forward to discussions with the Minister and officials between now and Report. I hope that we can address some of the DPRRC’s concerns.

Subsidy Control Bill

Lord Berkeley Excerpts

Committee stage
Wednesday 2nd February 2022 Grand Committee

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I sat here on Monday on the first day of Committee and I wondered how much of the replying Minister’s speech was written already—that is, Ministers were not responding to any of the good sense or good words that they heard from this side of the Room. It struck me that that should be seen as a little more important than it was on Monday.

This is an important group, because it is asking what we want to use the subsidies for, rather than just saying, “How do we want to control subsidies?” Supporting areas of deprivation has to be a core principle in our subsidy schemes and everything the Government do. We are very lucky now; we have a department for levelling up and we have a White Paper. Apparently, the White Paper points out how unequal the UK is. If you measure it on any economic or social metric, it is incredibly unequal. We have to ask: what have the Government been doing for the past 12 years? Of course, they are a Conservative Government, so clearly the levelling-up agenda is to mop up all the damage they have done in the past 12 years. Tackling deprivation and inequality will take a lot more than fine words, and streamlining subsidy schemes that are tailored to overcoming deprivation would be a good start.

Similarly, we should be making it easy for public authorities to support cultural and environmental objectives. I support noble Lords who have spoken so far, and I will be interested to hear the Minister’s response to Amendment 23, tabled by the noble Lord, Lord Wigley, on this point, because it would be a great shame if the Bill were to interfere with achieving cultural and environmental objectives. We should concentrate on calculating social value as articulated in Amendment 36, tabled by the noble Lord, Lord McNicol of West Kilbride, as this is still a fledgling area of procurement practice and was one of the features of David Cameron’s early years as Prime Minister when he was still trying to do some good. The Government seem to have stalled on social value since then. If we can improve the methodology for calculating social value and properly embed it in procurement and subsidy schemes, every pound spent by the public sector will have a much greater benefit for our communities. It will help to tackle deprivation, benefit the environment and create flourishing local authorities. I hope the Minister can explain what the Government are doing to advance the social value agenda.

[Lord Berkeley (Lab)]

My Lords, I rise to move Amendment 25A in my name. I shall not speak to any other amendments, because to some extent I am here as an amateur among experts. I have one point to make, which I hope I can do quite quickly. However, I support the general trend from my noble friend’s introduction and other noble Lords who have spoken.

I was unable to speak at Second Reading, because if I had I would have missed the sleeper to Cornwall, which I have to take. I am sorry about that. Many questions that come up are about how and what can replace the different bits of the EU competition regime. I got to know it quite well and got either to like or love it but at least to deal with it. My amendment covers everything that I think are subsidies, although when one looks at the definition of subsidies in the Bill it is unclear whether it covers a one-off payment or a series of payments or even what in the transport world is called the public service obligation. Perhaps somebody will refer me to where I have got it wrong in that instance.

In all these things, there seems to be nothing in the Bill about whether any particular subsidy, whatever anybody is talking about, is value for money or whether it has gone through the government procurement rules, which, in simple terms, means that it has gone out for three quotes or something like that. There may be many instances where that is not appropriate. I worry about whether this is just giving a blank cheque to Ministers or any local authority that chooses without any of the checks and balances. It may go to the CMA in the end, but to start with it is not there. This afternoon, we have been debating the PPE issue. I am not suggesting that was about the urgency for procurement. On the other hand, the urgency has long since passed, and that leaves a nasty taste in some people’s mouths.

My other reason for raising this is that I have been involved in a levelling-up plan for a ferry to the Isles of Scilly, which some noble Lords know about. The local authority applied for £48 million from the levelling-up fund to be given to one private company without any tendering. The noble Baroness, Lady Vere, has been very helpful and has tried to put my mind at rest that government procurement rules will be looked at here. However, there are two issues. I think they apply to many procurement issues that come into the category of subsidy control.

The first is: should it be given at all, and has the amount applied for been properly calculated? Has the authority gone out for competitive tenders or can it demonstrate that it is value for money? Secondly—this is often more difficult—is there a better way of doing it? I have given the example of Scilly, where a better way would be to do it with one ferry rather than two, for half the price. That is not part of a levelling-up application. On the other hand, somebody should be looking at things like this to make sure that the Government, or the taxpayer, are getting value for money.

That could apply to many projects which noble Lords have mentioned on levelling up, including no doubt the railway projects in the regions which my noble friend talked about. It would help me to understand whether there is any check in the Bill involving value for money and going out to competitive tendering, or not, to demonstrate that that has been done before a decision is taken to go ahead.

Post Office: Horizon Compensation

Lord Berkeley Excerpts

Monday 10th January 2022 Lords Chamber

[Lord Callanan (Con)]

I start by paying tribute to the work of my noble friend in both this House and the other place in drawing attention to this scandal when many others were not discussing it; he was right to do so, along with many other Members on all sides. I can confirm that, when negotiating compensation for postmasters with overturned convictions, the Post Office will consider claims for financial and consequential losses as well as non-financial losses, such as reputational damage and mental distress. In terms of consistency, each case will necessarily be decided on the particular circumstances of the individual postmaster but, to ensure broad consistency, the Post Office and its legal advisers will seek to agree a consistent approach in assessing the different heads of loss with legal representatives.

[Lord Berkeley (Lab)]

My Lords, my noble friend Lady Bakewell said in her follow-up question that there had been 732 convictions. From the Minister’s Answer, I get the impression that only 10% of those convicted have actually had their cases heard. Is that correct? When does he see that the whole process will be completed?

[Lord Callanan (Con)]

The noble Lord makes a good point but this is in the hands of the court. So far, 72 people have had their convictions overturned. As soon as the others have had their convictions overturned, we will proceed with offering compensation to them as well.

Energy Costs

Lord Berkeley Excerpts

Thursday 6th January 2022 Lords Chamber

[Lord Berkeley (Lab)]

My Lords, I congratulate the noble Baroness on securing this debate. It is topical and she outlined very clearly the problems that we face. I was struck by her figure of 6 million people being in fuel poverty, because we must remind ourselves that we need energy to survive as a country, as individuals and as a society.

The noble Lord, Lord Lilley, talked about the pressure towards zero carbon, which I will not go into now because he did so clearly, but the other option for people is, of course, to consume less and change our lifestyle. It may be possible to do something like that with transport, but it is much more difficult to do with the things that affect fuel poverty. I was struck by a recent Eurostat report that set out that across Europe 63% of one’s energy consumption—a good average—is on space heating. If one tries to cut out space heating, one is shivering. One can cut out water heating and have cold showers. One can cut out cooking and lighting, but the biggest demand by far is for space heating. The report also says that in 2019 the residential sector represented 26.3% of final energy consumption. That means that we have an energy supply problem.

Putting it simplistically, we now have a situation whereby demand exceeds supply. We have all read about the way in which the Russians are playing off the European Union—Germany in particular—on the supply of gas. Renewables are not there; the noble Lord, Lord Lilley, mentioned France’s nuclear situation and the fact that the interconnector is not functioning as a result. Therefore the price goes up, and, as several noble Lords have asked, how much has it gone up?

There is no easy short-term solution, because unless something is done in the short and the long term, people will continue to shiver. The Prime Minister has said that the energy shortage is a short-term problem. I see that in the Daily Express today the Chancellor said that there is a limit to how much government can do. There may be a limit to what the Government want to do, but in practice the Government can do what they like. They obviously respond to the electorate.

I hope that the Minister when he responds will tell us not just about the short-term solutions that are needed, as other noble Lords have said, but about a long-term solution to help the large number of people—the noble Baroness said it was about 6 million—who are going to suffer and shiver, not just this winter but for many winters to come, unless we do something to put this issue on to a sound, long-term basis.

Oil and Gas Authority: Remit

Lord Berkeley Excerpts

Thursday 2nd December 2021 Lords Chamber

[Lord Callanan (Con)]

We will go along with our net-zero commitment. I do not know how many times I have to repeat this for the benefit of the Liberal Democrats, but under all of the climate change scenarios, including that towards net zero, we will remain a net importer of oil and gas during that period. The choice that faces us is whether we wish to import them or produce them domestically and gain the tax revenues from that. I really cannot see why this is such a difficult concept for the Liberal Democrats to grasp.

[Lord Berkeley (Lab)]

My Lords, the Minister surely must know that the target of net zero means reduced consumption; whether it is produced in this country or imported, it is still our consumption. How is that compatible with the Oil and Gas Authority’s target of “maximum economic recovery” of oil from the North Sea? Bearing in mind that it takes so long to commission and decommission North Sea oil and gas plants, is it not about time that the Oil and Gas Authority changed its target now to give it time to achieve net-zero carbon when it is due?

[Lord Callanan (Con)]

I actually agree with the first part of the noble Lord’s question that production from the North Sea is on a declining pathway. Our usage is, of course, on a declining pathway as we transition to net zero.