Financial Services Bill

Lord Bishop of St Albans Excerpts

Committee stage
Wednesday 10th March 2021 Grand Committee

[The Deputy Chairman of Committees (Lord Duncan of Springbank) (Con)]

I call the next speaker, the Lord Bishop of St Albans, but I cannot hear anything. I wonder whether he might be on mute.

[The Lord Bishop of St Albans [V]]

My Lords, I apologise; I am so sorry.

I am glad to speak in support of Amendment 107 in the names of the noble Lord, Lord Sikka, and the noble Baroness, Lady Bennett of Manor Castle. Throughout the course of this debate, there have been a number of comments on the current functioning of the FCA, the scope of its remit and whether it is properly undertaking its duties.

As the noble Lord, Lord Sikka, pointed out, there have been occasions when financial misconduct has not been fully disclosed, and it is worrying that this may have been due to interventions from those within government. As we establish our new position in the world following Brexit and seek to build on our financial services sector, it is vital that we are known for our honesty and transparency throughout the world. Our future will depend on this. So surely the amendment is entirely uncontroversial. The FCA is meant to be an independent regulator, not a direct arm of the Government. Hence, if Ministers have sought to intervene in any sort of FCA work or investigation, it should be a matter of transparency and disclosed.

Recently, the FCA dropped its investigation into Lookers, arguing it had instead made its concerns clear relating to the

“historic culture, systems and controls”

of the group. Why the investigation was not carried out to the full remains unclear—certainly to me, despite trying to find out. I imagine that many, including me, find the FCA’s answer unsatisfactory. It does not give us the assurances that we would hope an independent regulator would give.

Some commentators have noted that the dropping of this investigation seemed to coincide rather conveniently with the FCA’s new rules relating to car finance, brought in at the end of January 2021. Yet even these changes fell short of a mis-sell, which would undoubtedly have cost the providers of finance billions—strongly hinted at by the FCA’s 2019 report into car finance.

How the FCA came to its decision was in-house, even if it was sometimes perplexing to those of us outside. Nevertheless, in this instance, for example—and in many others—what we do not know is whether there has been any direct ministerial intervention to steer the FCA into any specific course of action. Many people would like reassurances that any intervention should be made in the interests of all and for the common good, particularly in customers’ best interests.

The amendment, in shining a light on what happens behind the FCA’s closed doors, would be a valuable addition to the Financial Services Bill. It would help in a mission that I know many in this House share to create a more transparent, robust and, dare I even say, moral financial system that in the long run will benefit all of us. I hope that the Government will look closely at either the amendment or something similar as we return to the matter later during the passage of the Bill through your Lordships’ House.

[Baroness Kramer (LD)]

My Lords, I need to spend more time, frankly, trying to understand the amendment. I would be genuinely shocked if Ministers interfered with an investigation of any of the regulators—certainly the FCA, the body at the centre of the amendment. I am not sufficiently familiar, I confess, with the Ministerial Code, but if the code does not make that clear, it would seem absolutely necessary that it does.

I perfectly understand concerns about the effectiveness of the FCA as a regulator in dealing with wrongful behaviour. It needs to be much more aggressive and transparent. We have talked earlier in Grand Committee about the HBOS Reading fraud scandal. The FCA was finally pressured into commissioning a report from Promontory, then did not publish it—only a summary that did not reflect in any significant way the actual conclusions of the report. That was extremely disturbing. We have also talked about the FCA’s actions under the senior managers and certification regime against Jes Staley, chief executive of Barclays—

Financial Services Bill

Lord Bishop of St Albans Excerpts

Committee stage
Monday 1st March 2021 Grand Committee

Moved by

[The Lord Bishop of St Albans]

46: Clause 22, page 28, line 23, at end insert—
“32B Gibraltar-based persons: taxation reporting(1) A Gibraltar-based person carrying on an activity approved under Schedule 2A, or which has permission by virtue of relevant Gibraltar provision to carry on an activity, in the United Kingdom must, as soon as reasonably practicable after the end of each financial year, submit to the Treasury a statement in respect of that year of the gross profit made from carrying on that activity or, where it is carrying on more than one such activity, from carrying on each activity.(2) The report under section 32A must specify—(a) the number of Gibraltar-based persons who submitted a statement under subsection (1) in the reporting period concerned,(b) the number of persons referred to in paragraph (a) who, at any time in that reporting period, were also authorised persons on some other basis under section 31,(c) the total of the amounts of gross profit in each statement submitted under subsection (1) in that reporting period, and(d) the total of the amount of tax chargeable in the United Kingdom on the amounts specified under paragraph (c) and, where tax is chargeable on a different basis for different amounts, the amount chargeable on each basis.(3) The report under section 32A must include an analysis of the difference between the taxation regime in the United Kingdom on profits made from carrying on activities of the kind referred to in subsection (1) and the equivalent regime in Gibraltar.(4) The report under section 32A must, in the light of the analysis under subsection (3), include such recommendations as the Treasury considers appropriate for improving transparency in the processes in the United Kingdom, and in the processes in Gibraltar, for levying and collecting tax on activities of the kind referred to in subsection (1).(5) A failure to submit a statement under subsection (1), or a failure to submit a statement under that subsection which is complete and accurate, is to be treated as a breach of the general prohibition.(6) A reference to a relevant Gibraltar provision is to be read with section 23 of the Financial Services Act 2021.”Member’s explanatory statement
This amendment would require any Gibraltar-based person carrying on activities in the UK to provide an annual statement to the Treasury of the profits it has made from those activities. The Treasury would then report to Parliament on the amount of tax chargeable on those profits and make any recommendations it thinks appropriate for improving transparency.

--- Later in debate ---

[The Lord Bishop of St Albans]

My Lords, Amendment 46, in my name and those of the noble Lord, Lord Sikka, and the noble Baroness, Lady Bennett of Manor Castle, probes whether the reporting requirements on financial firms operating from Gibraltar in the UK market are sufficiently robust, and it questions whether we might find a way to make them more transparent. The Gibraltar authorisation regime continues the established practice of companies operating from Gibraltar in the UK, which is why it is important to review whether the UK taxpayer receives a fair deal from this arrangement. The Companies Act 2006 already mandates foreign companies to register and file accounts to Companies House, yet some Gibraltar-based companies with registered subsidiaries in the UK have successfully used this system to reduce their tax bill.

Transfer pricing plays a major role in switching money between jurisdictions so that the costs are burdened on the area with the highest tax rates, with the profits channelled to the areas with the lowest tax. This is of course a global issue that requires global tax co-operation, but that does not mean that where possible we as a nation should not take measures to remedy the situation where we can. Financial services are one of Gibraltar’s primary industries, which is why I have tabled the amendment. Ideally, through stricter and more thorough reporting standards between Gibraltar and the UK, these should apply to all sectors. For example, in the online services and gaming industry, transactions are often placed in the UK by customers but processed by servers in Gibraltar, a technicality that allows what in reality is taxable income in the UK to be taxed in Gibraltar.

If such practices are well documented among the online gambling sector, I do not doubt that they extend to the financial sector as well. Without public country-by-country reporting, identifying dubious transfer pricing will continue to remain difficult. However, that should not deter us from strengthening reporting between Gibraltar and the UK, particularly given our official links. Surely it simply cannot be right that some of the major UK gambling firms pay an actual corporation tax in the UK of between 3% and 13% by either headquartering or using subsidiaries based in Gibraltar. Incidentally, we only know this because the size of these firms has brought them under the scrutiny of journalists who have investigated them. Given the commonality of these methods among larger corporations, financial firms of the SME variety could, and possibly do, engage in similar methods.

The fact that companies have been able to rather openly reduce their corporation tax bill by incorporating some of their operations in Gibraltar calls into question the current mechanisms for the effective and proper exchange of information between the two jurisdictions in relation to profits subject to tax. During his evidence session, the Minister said that corporation tax rate was not a factor in relocation to Gibraltar. No doubt, the Mediterranean climate and lifestyle make it a very attractive place to reside. Indeed, I have thought of little else over the recent cold days. However, for the purposes of reducing your corporation tax bill, only a partial relocation is required. Furthermore, Gibraltar provides a unique service in the “non-resident company”, a simple and cheap offshore corporate tax entity that even the most cursory search online will see marketed as an international investment and tax-planning vehicle, with all the usual connotations that this implies.

I do not want the many good people of Gibraltar to confuse my concerns as an attack on their territory, but the continuation of access to UK financial markets by permitted Gibraltar-based persons without a review into the effectiveness of the information exchange and the transparency of reporting requirements between the two jurisdictions will leave open avenues and incentives for businesses to reduce their actual UK tax obligations through Gibraltar-based tax planning. I hope that the Minister will be able to reflect on some of these issues and perhaps help me understand what we can do to improve the situation because we might need to revisit this later on. I beg to move.

[Lord Eatwell (Lab)]

My Lords, the provisions in the Bill dealing with relations with Gibraltar raise a number of intriguing questions. The probing amendment in the names of my noble friend Lord Tunnicliffe and myself is really seeking some answers. The Bill in effect creates a single financial market with Gibraltar, even to the extent of offering customers of Gibraltarian entities access to the Financial Services Compensation Scheme. In doing so, it forges a single market with a different jurisdiction, a jurisdiction that includes a different regulatory authority and notably—as the wording of the amendment in the name of the right reverend Prelate the Bishop of St Albans suggests—a fiscal jurisdiction that diverges significantly from that of the UK. I welcome the right reverend Prelate’s amendment.

When this country was a member of the European single market, there was, in essence, a single regulatory regime in the UK and Gibraltar, although the implementation of EU directives was not entirely uniform. In the Bill, the provisions on Gibraltar have been presented as a continuity measure. However, the UK’s new-found ability and declared intention to deviate from EU rules signals a substantial shift in our regulatory framework and potentially in its interplay with that of Gibraltar. The first part of Amendment 47 asks the Treasury to present in detail its assessment of how compatible the regulatory systems in the UK and Gibraltar actually are. It is important that people have confidence in the firms that will be allowed to operate in the UK. The Gibraltar authorisation regime, as it is called, being introduced by the Bill seeks alignment of law and practice in the UK and Gibraltar, but it does not prohibit Gibraltarian divergence.

I turn to the impact assessment. It is pointed out that the Gibraltarian authorisation regime will be established by a mix of primary legislation, secondary legislation, regulators’ rules, MOUs, policy statements and guidance. Given the unique nature of the creation of the single financial market, it is important that Parliament has the opportunity to assess this plethora of measures; hence the need for a Treasury statement in 12 months’ time.

It is further noted in the impact assessment that about 20% of motor insurance policies in the UK are written with Gibraltar-based insurers. When replying to the debate, will the Minister tell the Committee why he thinks that might be? What are the peculiar advantages of Gibraltar that have attracted such an extraordinarily high proportion of this UK business, and will those peculiar advantages continue as a result of the Bill?

At a time when the entire regulatory framework is under review, the Government might consider this to be the time to reassess the financial services relationships with the Crown dependencies as well. I am aware of the very different legal status of the Crown dependencies from that of Gibraltar and the fact that, given that the Crown dependencies were never members of the European Union, the UK’s exit does not pose the same range of new problems. However, the Minister will be aware that the financial services provided in the Crown dependencies are a vital part of the financial infrastructure of the UK, in particular with respect to the flow of liquidity into the London markets. Will the regulatory framework review cover the issue of the financial market relationships between the UK and the Crown dependencies? The regulatory framework review could take note, for example, of the fact that many regulatory practices in some Crown dependencies, such as the registration of beneficial ownership, are significantly superior to current practice in the UK. Given that the UK Government happily promote financial relations with Gibraltar, even though the Gibraltarian fiscal regime is significantly different from that in the UK, are they considering some enhancement of financial relationships with the Crown dependencies by, say, extending access to the Financial Services Compensation Scheme?

--- Later in debate ---

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

I have not received a request from anyone wishing to speak after the Minister, so I call the right reverend Prelate the Bishop of St Albans.

[The Lord Bishop of St Albans]

My Lords, I am most grateful to the Minister for the points that he has made. I too want to underline my support for Gibraltar. In this new post-Brexit world, I want us as a nation and our neighbouring countries, as well as Gibraltar, to flourish. However, we are also in a time of huge financial stringency, and there are very important issues here about tax justice. As so often when I sit in a debate in your Lordships’ House, I find myself realising that I am in a seminar and learning far more than I am giving. I am grateful to my noble colleagues and friends here for some of their explanations.

I am still unclear how the GAR will be reciprocated in terms of why we are giving these extraordinary benefits. I need time to go away and think about what the Minister has said. I certainly still look at the situation with puzzlement. I was struck by the comment by the noble Lord, Lord Sikka, that there are two registered companies for every citizen on the Rock. It sounds as if there are some extraordinary benefits which to some of us do not look to be reciprocated justly.

I will probably return to this on Report, but in the light of the comments and some of the limitations of the amendment as it is currently drawn up, I beg leave to withdraw it.

Amendment 46 withdrawn.

Covid-19

Lord Bishop of St Albans Excerpts

Thursday 28th January 2021 Lords Chamber

[Baroness Evans of Bowes Park (Con) [V]]

The noble Baroness makes an eloquent case, but I have set out where we are with prioritisation. As we have said, the JCVI’s advice is clear that we should initially focus our efforts on those in care homes, health and social care workers, the elderly and the extremely vulnerable.

[The Lord Bishop of St Albans]

My Lords, the position for young people in school and education is mixed, with some students in poorer areas still not having access to online education and those in remote rural areas with not-spots simply not able to get online. Could the noble Baroness comment on the priority of trying to ensure that we move much more rapidly on the provision of broadband, particularly in those difficult areas? Secondly, we are going to have to do a big catch-up on educational standards and achievements, but it is important, at the same time, to look holistically at the spiritual, emotional and psychological work we are going to have to do with our young people. What plans are being made by Her Majesty’s Government?

[Baroness Evans of Bowes Park (Con) [V]]

The right reverend Prelate is absolutely right. While we are putting in support to help now, we recognise that the long-term damage caused by this extensive period in which young people and children have not been able to go to school is clear and significant. We have set out that we will work with parents, teachers, schools and colleges, and, I am sure, wider community representatives, to develop a longer-term plan to make sure that pupils have a chance to make up their learning over the course of the Parliament. While we of course have short-term schemes to attempt to address issues now—for instance, partnering with the UK’s leading mobile network operators to guarantee internet access and providing free data to key educational websites for disadvantaged families—there is a much longer-term issue that we want to address, and we will be doing that in partnership.

Gambling

Lord Bishop of St Albans Excerpts

Thursday 20th October 2016 Lords Chamber

Asked by

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government what steps they are taking to protect those at risk of gambling-related harm.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the Government are committed to ensuring that people are protected from being harmed or exploited by gambling and that those who require treatment receive it. The industry is required to contribute towards research, education and treatment programmes to prevent gambling harm. The majority of provision for treatment is through responsible gambling trusts and the funding of organisations such as GamCare, which provides helpline and counselling services. Local treatment can also be found through GPs and NHS clinics.

[The Lord Bishop of St Albans]

I thank the Minister for his Answer. Gambling-related harm is not restricted to people with problem gambling—it affects family, it affects friends, it affects even people who work in gambling shops. I recently put in a freedom of information request to the Metropolitan Police which revealed that since 2010 there has been a 68% rise in violent crime associated with betting shops across the capital. In the light of that, will the Minister tell the House what assessment the Government have made of the link between this rapid rise in violent crime associated with betting shops and the increase in the number of fixed-odds betting terminals in those shops?

[Lord Ashton of Hyde]

Any rise in crime figures is of course concerning, and Ministers and the Gambling Commission will look at those figures closely. One of the three licensing objectives that all operators must comply with is to prevent gambling being a source of crime. On the right reverend Prelate’s specific question about the link between fixed-odds betting terminals and the rise in crime, I hesitate at the moment to draw a causal link between them in the absence of evidence on the specific means of betting. However, this is exactly the sort of evidence that should be provided to the forthcoming triennial review.

Apprenticeships: Rural Economy

Lord Bishop of St Albans Excerpts

Thursday 14th July 2016 Lords Chamber

[Baroness Evans of Bowes Park]

I am sorry: I did not hear exactly what was being said. We take careers advice extremely seriously and we are taking steps, because we are well aware that it is too patchy. We want to ensure that all young people get good careers advice. Perhaps I might speak to the noble Lord outside the Chamber where I can hear what he was saying.

[The Lord Bishop of St Albans]

My Lords, despite record numbers of graduates from agricultural colleges and some interesting rural apprenticeships, it is proving almost impossible for young farmers to get a tenancy unless it is by inheritance. What plans do Her Majesty’s Government have to offer additional support to young farmers to secure tenancies, such as the young entrants’ schemes in place in Scotland and Wales—or is there something else we could do to address this serious problem as we seek to get a new generation of farmers?

[Baroness Evans of Bowes Park]

I thank the right reverend Prelate for his question. To give him a full response, I will have to go back and write to him; I do not have the information he asked for.

EU Referendum: Voter Registration

Lord Bishop of St Albans Excerpts

Thursday 12th May 2016 Lords Chamber

[Baroness Chisholm of Owlpen]

I could not agree more with what the noble Lord says.

[The Lord Bishop of St Albans]

In response to a previous debate, I worked with Bite The Ballot and got it into one of our church schools. The interesting thing for me was seeing not that people could not understand voting but that they did not know what difference it would make. Watching young people being taken through the process and the penny drop about the implications was fundamental. It seems to me that we need people to engage at the grass roots. What attempt is being made to use voluntary and charitable organisations, many of which—including the churches—have newspapers and all sorts of other publications and are in touch with millions of people, as a way of trying to raise the issue in the next month, as the noble Lord asked?

[Baroness Chisholm of Owlpen]

Indeed, and that is exactly why we have been giving grants to civic societies to engage with the young. There have been several initiatives, one of which was the Make your Mark ballot: nearly 1 million young people aged 11 to 18 took part in deciding on issues such as mental health, the living wage and tackling religious discrimination. It is now statutory to teach democratic participation in schools at key stages 3 and 4 of the curriculum.

Housing and Planning Bill

Lord Bishop of St Albans Excerpts

Wednesday 13th April 2016 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, perhaps I may intervene briefly on these two amendments. I have some sympathy with Amendment 52. As a former Member for a rural constituency, I know how important housing association properties for rent are in small villages. They contribute to the balanced communities that we want to retain, so I understand the concerns here. However, the amendment is entirely unnecessary because under the voluntary agreement there is absolutely no obligation on rural housing associations to sell their properties. Indeed, they are closer to the problem than almost anyone else, so it is most unlikely that, given the nature of the voluntary agreement, they would want to sell these properties.

The voluntary agreement specifically refers to properties in rural areas as examples of circumstances where housing associations may exercise discretion over sales, so in a sense the amendment is redundant. Also, if a housing association actually wanted to sell a property in these areas, the amendment would not prevent it doing so. All the amendment would do is stop the Secretary of State giving the housing association a grant to replace the property. I shall go back to the first point I made: certainly, the housing associations that were active in my former constituency would not, given the nature of the voluntary agreement, dispose of a property for rent in a rural area because they are more aware than almost anyone else of how valuable these properties are.

Amendment 51 is much more serious. It invites the Government to break the voluntary agreement they have entered into with the housing associations. It states:

“The Secretary of State must set as a condition under subsection (2) that money equivalent”,

must be spent in a particular way. Chapter 2 of the voluntary agreement makes it absolutely clear that the Government want housing associations to have flexibility:

“Housing associations would have flexibility to use receipts so they can respond to market pressures and local housing need. In order to facilitate this, the definition of a replacement home would be broad and include the development of Starter Homes, shared ownership homes and other part buy and part rent models”,

excluded by the amendment. The agreement goes on to say that,

“in some limited circumstances, it may not be appropriate or desirable for a housing association to build a new home to replace the one sold”,

since it may be easier to buy another one or bring an empty home back into use to replace the home that has been sold. I very much hope that my noble friend the Minister is not going to break the voluntary agreement, endorsed by the Prime Minister, that the Government have entered into by lending any support to Amendment 51.

[The Lord Bishop of St Albans]

My Lords, I rise to speak to Amendment 52, which is in my name and has the support of the noble Baroness, Lady Royall. I am grateful to the noble Lord, Lord Young, for his comments. I also want to note my support for Amendment 51, tabled by the noble Lords, Lord Kennedy and Lord Beecham, which would serve to better protect areas of high value, such as St Albans city and district in my own diocese, from a potential loss of social housing to other parts of the country.

The purpose of my amendment is to ensure that any home sold by housing associations under right to buy in rural areas is replaced in the same or an adjoining parish. This would shift the terms of the current right-to-buy deal from one in which housing associations have discretion over the sale of assets under right to buy in rural areas to one in which they are unable to take advantage of right-to-buy funding in rural areas unless they guarantee replacement housing in the same or an adjoining rural area. Such an amendment is widely supported by coalitions of rural landowners such as the CLA, the Campaign to Protect Rural England and rural housing associations such as Hastoe Housing Association.

I recognise that many Peers have a legitimate concern about preserving the status of housing associations as independent providers of social housing, and that this would lead them to support increased individual choice for housing associations wherever possible. However, I have to agree with the noble Lord, Lord Taylor of Goss Moor, who pointed out in Committee that,

“the circumstances of rural communities and villages are exceptional”.—[Official Report, 8/3/16; col. 1209.]

As has been repeatedly stated in this House, just one in 10 homes in rural areas is classed as affordable housing, compared with one in five in urban areas, despite the fact that in 90% of rural authorities, the average home costs eight times the average salary. That leaves a large proportion of rural communities struggling to make ends meet in the private rental market, desperately waiting for affordable rents to become available, or forced to leave their communities altogether. The Government’s facilitating the sale of what little affordable housing exists in rural communities seems to me to be a failure of policy, particularly given the immense difficulties associated with securing new or replacement rural affordable housing. In many rural communities it is virtually impossible to build more social housing.

Along with other noble Lords, I have raised this issue several times in the House already, and every time it has been pointed out that under the terms of the voluntary agreement, housing associations are exempt from the requirement to sell in rural areas. I am well aware of that. My concern is what happens when housing associations do choose to sell rural properties, given that there is currently no requirement for them to build replacements in the same area.

In Committee, several Peers indicated that we need simply to take it on trust that housing associations, because they are close to the actual situation on the ground, will not sell rural homes in areas where they cannot or will not be able to replace them. That seems highly questionable to me. Most housing associations, unless they have a specific rural focus in the very nature of what they have set out to do, have a duty to the vulnerable that transcends rural and urban boundaries. It would not be for me to criticise a housing association which, in selling off one rural affordable home—it will probably be an extremely valuable property, or certainly a more costly property—was able to provide affordable housing for two families in an urban area.

That sounds an eminently sensible thing to do for the overall good of everybody. However, for the individual housing association, it could make perfect financial and charitable sense to consolidate the housing stock in, say, quite a limited urban area—a town or a city—where the costs of development tend to be cheaper and where it can support more families. But for the rural communities in question, that would be devastating: not just for the individual families who are unable to live in the local village and perhaps where many generations of their family have lived in the past, but for the sustainability and the future of the wider community. Without people of all incomes living and working in the local area, no rural community can sustain flourishing schools, shops, pubs and churches. Rural communities need hope for a sustainable and secure future. This is particularly true when it comes to the development of rural exception sites, which are a crucial route to securing affordable housing for rural communities.

Speaking personally on my own area of interest, many dioceses in the Church of England, including my own, are committed to using glebe land to provide for rural exception sites where possible, but the extension of right to buy will make the provision of such sites much more difficult for us as a charitable body, given that charitable assets might be transferred to individual ownership, where they could be used for profit. I know that the CLA has spoken to many landowning members who have similar reservations about providing land for rural exceptions sites without strong guarantees that the resultant affordable housing will remain available to the local community in perpetuity. I welcome the concession the Government have already made on rural exception sites regarding starter homes, and can only hope that today might find the Minister in a similarly understanding mood—I smile at her hopefully.

The sale of vital and scarce affordable housing should not receive government subsidies in rural areas unless local replacement is guaranteed. This cannot be left to the discretion of housing associations, which will face immense pressure on their resources in the coming years. Securing the sustainability of rural communities is the duty of government, and I hope the Government will make the necessary amendments to the Bill.

[Baroness Redfern (Con)]

My Lords, I support Amendment 51. This new, reinvigorated right to buy will certainly help housing associations to retain their independence, and will, I am sure, bring about a new era for building and bring an end to the housing crisis. Associations are a vital piece of the housing predicament jigsaw and together, working closely with government, will help to bridge the generation gap and give that boost to those Britons whose overwhelming ambition is to become home owners.

Housing associations are professional organisations that have sound commercial and social principles and manage their estates extremely well. The important fact to emphasise is that they are well established, intuitively know what type of housing is best suited for their area, and know where their new build is in greatest need.

Another part of the jigsaw is job opportunities—a possibility that turns people’s ambition into reality for the very first time. That is why it is so important for tenure to be taken locally. A voluntary agreement with the National Housing Federation and the housing association sector gives the flexibility to replace nationally, since housing associations know their customers’ needs best. Because of that, it is particularly important that an agreement also gives them flexibility and discretion over sales of properties in rural locations.

My noble friend Lord Young alluded to housing associations having the inner knowledge and expertise where local demand is required. As we know, different parts of the country have unique demands. Therefore, government should not be instructing them where to build replacement homes; rather, it should recognise the importance of ensuring that rural communities are protected, but believe that the best way of doing that is not by preserving them exactly as they are now. Instead, we should be supporting living, working and sustainable rural communities, with tenants having real choices about where and how they live. Allowing rural tenants the same opportunities to access home ownership as other tenants is a good thing.

Food Supply: Sustainability

Lord Bishop of St Albans Excerpts

Monday 14th September 2015 Lords Chamber

Asked by

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government what plans they have to ensure the sustainability of the United Kingdom’s food supply.

[Lord Gardiner of Kimble (Con)]

My Lords, I declare my farming interests as set out in the register. Our world-leading food and farming industry is worth £100 billion per year. The Government are developing a long-term plan which will boost productivity, enhancing business resilience across the food chain. Food security depends on access to diverse global markets and, of course, domestic production. Public procurement export plans which lead the way for Great British food producers, clearer labelling and investment in agricultural technologies will all contribute to a sustainable food supply.

[The Lord Bishop of St Albans]

I thank the Minister for his reply. Despite the flexibility given us by last week’s emergency EU summit, which related to early payments under the basic payment scheme, there is a real concern that the Rural Payments Agency will not be able to undertake the necessary checks in time to take advantage of that scheme. Bearing in mind that late autumn and early winter is always a drastic time for farmers’ cash flow, there is likely to be a huge problem in the coming year with the collapse in prices, particularly of milk but also of lamb and beef. Will the Minister tell your Lordships’ House what Her Majesty’s Government are doing to ensure that farmers have access to financial assistance and relief, given that they will not get through the winter otherwise?

[Lord Gardiner of Kimble]

My Lords, I was at the emergency Agriculture Council last week and spoke on behalf of the United Kingdom. One of the things that we pressed was for the Commission to ensure that some of the checks required on CAP subsidy payments should be removed or changed for this year to enable prompt payment to be made so that there are immediate effects, but, of course, we have a longer-term plan as well.

Tunisia and European Council

Lord Bishop of St Albans Excerpts

Monday 29th June 2015 Lords Chamber

[Baroness Stowell of Beeston]

I think what the Prime Minister said was that ISIL presents an existential threat to the United Kingdom. In response to the point that the noble Lord makes about military action and intervention and expanding on what we are already doing in the area, as he knows, the House of Commons was given an opportunity to consider whether we should get involved militarily in Syria and decided against that action. We believe that what we are doing right now is an appropriate and a very valid and important contribution to the fight against ISIL. Ultimately, we believe—and the international community feels—that to properly combat the threat of terrorism that emanates from ISIL there needs to be better governance in these countries. That is going to take a long time, and we need to support the people in the relevant countries to form the kind of representation of all the people that will lead to stability in those areas.

[The Lord Bishop of St Albans]

My Lords, we, too, on these Benches send our sympathies to those who have been bereaved and those who are injured. It is deeply concerning that Tunisia, a relatively peaceful haven in a part of the world in which there are many tensions, has now had this attack. Does the Minister agree that it calls for a renewed emphasis on working to strengthen community relations here in this country? The danger is that the events from Tunisia, Kuwait, Kobani and France could inflame ethnic and other violence and inspire copycat attacks here in this country.

It has been interesting over the weekend to hear of some of the fairly rapid responses that were made by community leaders. In my own diocese in Luton, we had a Britain First demonstration on Saturday. We had already planned to deploy a number of people on the streets, and that gave huge impetus to redouble our efforts. Fortunately, it went off relatively peacefully, but it had all the potential simply to bring those tensions that are overseas on to our own streets. There is really quite a pressing need to see what we can do. In some areas, community leaders including church leaders were immediately making contact with their counterparts in the Muslim community; certainly, that was going on in some of the interfaith areas in my own diocese. I know of at least one area—for example, the diocese of the right reverend Prelate the Bishop of Leicester—where a vigil was organised.

[Noble Lords]

Speech!

[The Lord Bishop of St Albans]

Sorry, I shall ask a question. Does the Minister agree that we need to redouble our efforts to work on these relationships?

[Baroness Stowell of Beeston]

The right reverend Prelate touches on an important point. Certainly, with regard to the Muslim community, there has been a lot of effort over the past few years to step up and increase integration. I have a couple of recent examples of things that we have done to support them and build relations in communities. One is the Big Iftar—and I had the great pleasure of going to one of those last year when I was a DCLG Minister. There is also the Sadaqa Day, a social action day of community, which is a bit like the ones that we support with the Jewish faith. Those are to try to make sure that those communities can play their part in the wider community as they want to do so.

As for extremism more generally, one reason why we are developing the extremism strategy that we are developing and intend to bring forward the legislation that we will is because we want to tackle all forms of extremism, not just the specific extremism that we have focused on in the Statement today. That is what we will ensure that we do.