Queen’s Speech

Lord Bourne of Aberystwyth Excerpts

Monday 16th May 2022 Lords Chamber

[Lord Bourne of Aberystwyth (Con)]

My Lords, it is a great pleasure to speak on the humble Address to Her Majesty’s speech, and it is a great pleasure to follow the noble Lord, Lord Haworth. I find myself in total agreement with what he has just said on the nuclear programme, which certainly needs pushing.

Obviously, we face massive challenges at present. We have largely seen through the Covid crisis and now face an energy crisis and a crisis in Ukraine, which are international challenges. The national response has to be focused on the economy and energy, and these are fundamental. We should be aware, when looking at the economic record, of the great success that we have had on the furlough scheme and business support. It is easy to forget the economic success that we had during the pandemic, but there are new challenges now, which have rightly been highlighted by many noble Lords. There is the inflation challenge, at 7% and rising, and government debt interest—the largest item on the Government’s balance sheet, at £83 billion. That is just the debt interest for 2022-23, up by £30 billion from the previous year, as a result of inflation.

Unlike many others in my party, I do not have any visceral dislike of taxes where they are necessary and justified, and I believe that an energy windfall tax is more than justified. I find it hard to find a cogent argument against it when we have seen the massive super-profits that are being made, and when we are seeing the holes in government finances it seems sensible to bring it forward. I am glad that the Chancellor is considering it. Indeed, my right honourable friend Mel Stride, who chairs the Treasury Committee, has also said that it should be very much in play.

I recognise the dangers of inflation but like others—and many on this side of the House, too—I think that an uplift to universal credit is absolutely necessary. As a one-nation party, I cannot see how we can fail to protect the most vulnerable at this time, when inflation is racing. It must be done, and it must be done urgently.

The Queen’s Speech certainly has many aspects that I approve of, but it lacks vision. We need something more powerful than postponing the MOT for a year; we need something to aspire to to bring people together, as we did during the pandemic. We need some call to action or shared enterprise, which has got to be around the energy crisis. We have seen the rise in energy prices, which is very largely outside the Government’s control—but we have to have a response to help the most vulnerable. We heard the noble Lord, Lord Teverson, speak about the position of people on prepayment meters. That is absolutely right: we have to make sure that energy efficiency measures and help with the warm home discount is available to the most vulnerable, to help them with the cost of energy. We have to see how the energy security Bill, which I certainly think is a powerful measure and one that is potentially very useful, is extended to help those people in terms of action on retrofit and insulation measures, as well as ensuring that we are harnessing the resources that we have around this island with wave power and tidal power. Those things need doing urgently, and that would be regarded as a joint enterprise for the whole nation which we can come around to deal with a problem of long standing. It will be of even longer standing and more severe if we continue to fail to do anything about it.

We need also to look at carbon capture and storage, which we have dallied on for too long. It will create new jobs and help on energy security and climate change—but, above all, we need to help people who are not going to be able to pay their energy Bills going forward. We need to come forward now with something for those people. We have a tin ear on this, I am afraid; we need to ensure that that announcement is made sooner rather than later. If it means, as I am afraid it could well do, that we need a windfall tax on oil companies, or a one-off tax on oil and gas companies, that is something that would bring the nation together. I hope that we do that in short order.

Republic of Cameroon: Economic Partnership Agreement

Lord Bourne of Aberystwyth Excerpts

Tuesday 29th June 2021 Lords Chamber

[Lord Bourne of Aberystwyth (Con) [V]]

It is a great pleasure to follow the noble Viscount, Lord Waverley. I welcome this opportunity to scrutinise the economic partnership agreement between the United Kingdom and the Republic of Cameroon as well as the interim trade partnership with Ghana. I welcome the latter and wish to focus my remarks on the former.

Global Britain does at least allow us to trade freely and raise concerns with our trading partners on environmental concerns, addressing climate change and the observance of human rights, the issue that we are looking at here. This is to be welcomed, and I certainly do so. I subscribe to the importance of human rights and the view that greater and open trade affords the opportunity to improve the life chances of people in other countries as well as our own, while pressing for action on these matters, specifically human rights in this case. Therefore, I look forward to hearing from my noble friend the Minister about what action is being taken by the authorities in Cameroon at our behest to end the repression of English-speaking minorities there.

This repression began four years ago and was not a concern when the EU-Cameroon trade agreement was concluded 11 years ago. We need to look at this matter afresh. So, although I strongly support free trade, can my noble friend say what the UK has specifically asked of Cameroon and what we are requiring it to do based on the influence we are able to exercise through this trade agreement concerning the anglophone minorities in the country? They have suffered violence, death, displacement, the arrest of opposition leaders and party members, and widespread disruption, violence and civil disorder. We need to press for action.

I see that the Government have rightly asked the devolved authorities what concerns they have about these agreements. We have also asked the Crown dependencies and Gibraltar about any significant issues of concern. It would be helpful if my noble friend could set out the responses from those authorities. On a broader front, it is clearly useful for us to be able to debate these trade agreements as they are concluded. Can my noble friend consider with the Government and the usual channels a reliable routine procedure for doing this so that Parliament is more closely involved and can express a view in such situations?

Clearly, committees of both Houses and Members in the other place have raised concerns about this agreement. It demands action from the Government on the future process for trade agreements in general, as well as on the particular concerns relating to this agreement. However, I believe that we are more likely to make a difference through trade agreements; I therefore do not support the regret Motion.

Climate Change Act 2008 (Credit Limit) Order 2021

Lord Bourne of Aberystwyth Excerpts

Tuesday 15th June 2021 Grand Committee

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a great pleasure to follow the noble Lord, Lord Bradshaw, who has such a breadth of knowledge in this area, particularly in the realm of transport.

I thank my noble friend the Minister for setting out the effect of this order. Before I turn to it, I congratulate the Government on adopting the sixth carbon budget from the Climate Change Committee, covering the five-year period from 2033 to 2037. Doing so will set in law the ambition of slashing emissions by 78% by 2035, based on 1990 emissions levels. Also, significantly, this carbon budget will incorporate the UK’s share of international aviation and shipping emissions for the first time; that is most important. Indeed, this was an issue at Paris and since. I warmly welcome this.

The budget keeps us on track with the Paris Agreement goals. It is important to acknowledge the progress that has been made. We have overachieved against the first and second carbon budgets, and we are on target to outperform against the third. In the light of the significant cuts in greenhouse gases across the economy, in industry in particular and in the power sector, it is worth pausing to congratulate the Government on the success we have had. It is heartening, too, to see the G7 in a better place on this following strong leadership from President Biden and others—including, indeed, our own Prime Minister.

The order relates to the fourth carbon budget, from 2023-27. It limits the net use of carbon units for this budgetary period to 55 million carbon units or 55 million tonnes of carbon dioxide. That sounds concerning, but it follows the approach taken in previous budgets, and we have not used those carbon units at all. I understand that—it provides headroom for flexibility; the only danger, of course, is that it sends out a slightly contrary signal. On the other hand, it is most important that Governments are judged by what they do. Judged on the actions, we have a good story to tell, although more needs to be done.

The Minister and the Government have announced that they do not intend to use this facility, intending instead, as in previous budgets, to draw solely on domestic action to fulfil the ambitious budgets that have been set. I accept totally that this is the Government’s intention, and they are likely to achieve that aim based on past action. I support that flexibility. I accept that there is an argument about the signal sent, but it is more important that we have that flexibility.

Ahead of COP 26, can the Minister please seek to ensure positive action in other areas, in particular promoting electric cars, buses and other forms of transport, and battery storage and production? That is important for achieving our climate change aims, but it would also boost the economy. This follows on from the Stern report during the 2000s, and subsequently it has become clear that it is possible to achieve positive growth at the same time as reducing emissions, as the Government have demonstrated. But it is important that we press ahead with the electric transport market and the battery storage market in particular, in which we can be world leaders.

I want to ask the Minister about two issues. He touched on both but I want to push him a little further, if I may. First, when will we receive the carbon budget for discussion in the House, with a view to ensuring that it is put into legislation? Are we still going to get it by the end of June, as originally intended? If not, when can we expect it? Secondly, will Northern Ireland, to which the Minister referred, continue to be treated separately? I was both an Energy Minister and in the Northern Ireland Office, so I know that the Northern Ireland market is separate. Will a separate position for Northern Ireland present any particular challenges regarding the EU ETS system?

In conclusion, I am keen to encourage the Government to take stronger action ahead of COP 26. We are in a strong position but clearly, more needs to be done. Overachieving in this area is certainly not a bad thing. I strongly support the order before us.

Pollution Prevention and Control (Fees) (Miscellaneous Amendments) Regulations 2021

Lord Bourne of Aberystwyth Excerpts

Tuesday 8th June 2021 Grand Committee

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, I thank my noble friend the Minister for setting out so clearly the background to these regulations and their effect, as he always does. I support the regulations, which represent the annual review of the hourly rates used to determine the fees payable by the offshore oil and gas industry to BEIS’s Offshore Petroleum Regulator for Environment and Decommissioning, for activities engaged in by OPRED in relation to environmental management of the offshore hydrocarbons industry. These activities include the conservation of habitats and species, as well as matters relating to the storage of gases and some of the seismic changes on the continental shelf. As the Minister rightly said, the last review of fees was conducted in April 2020 and the industry, when asked about the increases, had no comment to offer.

The regulations appear reasonable and unexceptional, but I would like to explore with my noble friend the Minister the current position on carbon capture and storage. It has long been recognised that carbon capture and storage can play a key role in economic terms for the United Kingdom and, crucially, in achieving net zero. Indeed, its deployment could lead to the UK offshore oil and gas sector actually becoming carbon negative.

The Government committed to CCS deployment at scale happening during the 2030s, subject to the costs coming down. For that to happen, clearly there needs to be commissioning from the fast approaching mid-2020s. We have massive potential for this as the United Kingdom’s continental shelf, because of oil and gas drilling, is absolutely the area to develop it in. Of course, we have staff and personnel who could be deployed from the UK oil and gas industry to help with speedy deployment of CCS—staff who have the relevant expertise. I would be most grateful if my noble friend could update the Committee on progress in that area.

I recall the noble Lord, Lord Oxburgh, who of course has massive knowledge and expertise in this area from his commitment to it and his time in the energy industry, doing a brief report for the Government on this area when Amber Rudd was Secretary of State. The only downside then apparent was the cost; that was some five to six years ago, and I believe that the cost may now have come down and that the attitude of government to the cost may have changed, in any event—along, indeed, with the attitude of the world. Perhaps governmental and world attitudes have changed, as they need to, as we approach the time when action is absolutely vital. We need to do this at speed and at scale, looking at experience elsewhere: in the United States, Canada and, I think, in Australia. Can my noble friend give some update on progress in this area, ahead of the important COP 26 in Glasgow and the fast-approaching need for immediate action?

Professional Qualifications Bill [HL]

Lord Bourne of Aberystwyth Excerpts

2nd reading
Tuesday 25th May 2021 Lords Chamber

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a great pleasure to follow the noble Baroness, Lady Watkins of Tavistock. I declare my interests as set out in the register. I thank my noble friend Lord Grimstone for setting out the principles of the Bill so clearly. At its most simple and straightforward, its purpose is clear: to provide for recognition of qualifications from around the world, which will help to ensure that the United Kingdom has the qualifications and the staff that it needs.

Previously, of course, reciprocal recognition of professional qualifications was based on the European Union (Recognition of Professional Qualifications) Regulations 2015. As others have said, outside the EU a new system is clearly required, and I support that. We adopted an interim system providing recognition for professionals from the EU, Swiss and EFTA states but this was not reciprocated, and we need a broader base to provide for recognition of individuals from other countries. I certainly support that, provided there is no dilution of professional standards.

I wish to highlight several areas at this stage; in concluding the debate my noble friend may be able to comment on some of them, to which other noble Lords have also referred.

The first refers to the regulation-making powers and delegated powers—the Henry VIII clauses; term them what you will. Obviously, the report of the Delegated Powers and Regulatory Reform Committee is awaited; reference was made to this by my noble friend Lady Noakes. I understand the Government’s approach but obviously there is a very real concern about extensive delegated powers. Can my noble friend comment on when we can expect the report so that we can use this in debating the Bill as it goes through Committee and beyond? Clearly, the sooner, the better.

A second area, relating to Clause 3, has also been referred to by many noble Lords in the debate. The possibility of the overriding of provisions in the context of international trade is bound to cause concern. Of course, trade is important but it should not trump professional standards. There is also, as the noble Baroness, Lady Randerson, mentioned, a devolved dimension here. How will we ensure that the devolved Administrations are brought in here with regard to trade matters as well as professional standards? Once again, can my noble friend comment on this and give some indication of the Government’s approach?

More generally, on the issue of the devolved authorities, I can well understand, and indeed approve of, the accommodation of the different nations of the United Kingdom, where there of course is separate consideration of professional standards and qualifications. This will therefore mean separate provisions for Wales, Scotland and Northern Ireland, as indeed the Bill made makes clear. Can my noble friend update the House on the position on the legislative consent Motions? I think the noble Baroness, Lady Bennett, made reference to that. It is anticipated that there will be legislative consent Motions from the devolved Administrations. I assume that there will be no difficulty with these, but perhaps my noble friend could give us a taster as to what progress has been made in this area. Can he also update us on the position on common frameworks to co-ordinate work on the mutual recognition of professional qualifications with the devolved Administrations? Clearly, that is an important area.

Finally, I refer to the assistance centre created under Clause 7, providing assistance and advice to individuals who seek to practise a regulated provision in the United Kingdom. It seems that the Government regard this as central. Can my noble friend give us some indication of exactly how this will operate: what the costs and benefits are, and so on? Reading about it, I do not quite see how it fits into the scheme of providing that necessary advice and assistance. This has been referred to by other noble Lords in the debate.

As I say, I recognise the importance of the Bill and can quite see the need for it in the present situation. I have concerns—apparently, like other noble Lords—about some areas of the Bill. I look forward to the Bill proceeding and being subject to the detailed scrutiny that will no doubt follow in Committee and beyond.

Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) Regulations 2021

Lord Bourne of Aberystwyth Excerpts

Tuesday 18th May 2021 Grand Committee

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, I thank my noble friend for setting out so clearly the effect of these extension regulations. I support these extensions, as I have done previously—this is not the first time we have been here, of course—but I have some questions for my noble friend.

The Corporate Insolvency and Governance Act 2020 introduced the new stand-alone moratorium procedure for companies. This had been proposed earlier and was, of course, very much a pre-pandemic proposal. Most of the other legislative changes in that Act were driven by the pandemic, and quite rightly so. Given that the moratorium procedure is central to some of the context of these regulations, I wonder whether my noble friend can update the Committee on the number of moratoriums that have been applied for, although I appreciate that that statistic might be difficult, the number granted, which should be more straightforward, and the number that are live today.

Few would argue—and I do not do so—that those businesses impacted by the Covid pandemic and which find themselves in financial difficulties, unable to pay their debts because of the pandemic, should be granted a breathing space, which is what these regulations seek to do. I support that. What I do not understand, and it is not apparent from listening to my noble friend, is why the length of the breathing space varies according to different areas of activity under the regulations.

Protection of companies from creditor action on statutory demands and winding-up petitions lasts only to 30 June 2021—I note in passing that that is not far away, and I suspect we will be back here again, probably after the event, to extend this period, which I do not necessarily disagree with. On the other hand, protection for the operation of the company moratorium goes on to 30 September 2021. Protection for directors and shadow directors from the wrongful trading provisions lasts only to 30 June 2021. There is no explanation in the regulations for the different end dates, other than the somewhat cavalier statement in the Explanatory Memorandum that

“the extension for each measure has been determined having regard to the nature of the measure in question.”

This seems somewhat circular to me. What is it inherent in the nature of the statutory demand versus the moratorium that requires a different end date, particularly, as I say, given that I would be surprised if we are not asked to extend these dates again? I believe I raised this issue on our last outing.

As I have said, I support these provisions, but we need to recognise—to be fair, the Minister made this point too—that, notwithstanding the small business carve-out exemption, these measures are an interference with the normal rules of insolvency, and indeed the normal rules of trading. However, a year into these restrictions—my noble friend referred to them as temporary, and I think we are going to have to revisit that word before too long in this context—there has been no consultation on them. The Explanatory Memorandum does however state that the

“Government has engaged informally with a range of stakeholders”.

The Minister in passing made reference to a welcome, I think, from business. The Explanatory Memorandum also refers to engagement with

“business representative organisations and investor groups on these matters.”

Can my noble friend tell the Committee what groups these were, what the nature of the engagement was and what the groups said? That would be important for us in these proceedings.

Lastly, I turn to the position regarding wrongful trading. I note what my noble friend said about the suspension of liability for wrongful trading for directors and shadow directors, and I wonder why this part of directors’ liability has been seized upon. My noble friend noted, I think with approval, that other liabilities in relation to directors’ duties, disqualification and so on are unchanged. Why, then, have the Government singled out wrongful trading as a particular area to suspend during this period? It is not clear to me. There may be some reason, and I would be grateful if my noble friend could enlighten us on that.

Subject to these caveats and concerns, I support these regulations.

Employment Rights Act 1996 (Protection from Detriment in Health and Safety Cases) (Amendment) Order 2021

Lord Bourne of Aberystwyth Excerpts

Tuesday 27th April 2021 Grand Committee

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is always a great pleasure to follow the noble Lord, Lord Blunkett, who clearly knows a thing or two in this area, not least from his time as Secretary of State for Work and Pensions. I thank my noble friend Lady Bloomfield for setting out so clearly the effect of the order. There is a particular significance in these provisions. At the moment, the effect of the order is to extend protection, or to recognise the extension of protection, which according to the law—and I agree with it—should have been there anyway, to workers as well as to employees, or limb (b) workers as they are termed. Like the noble Lord, I do not particularly like the term.

Many of those workers will be working in the gig economy, and they will now share the right not to be subjected to a detriment if they leave their workplace or refuse to return to it because they believe that they are in serious or imminent danger. This could be, for example, protection from disciplinary action or suspension of pay. Thus if a worker were reasonably to believe that Covid-19 posed a serious and imminent danger, refusing to return to work would be protected. That seems to me entirely right.

As my noble friend noted, in the case involving the Independent Workers Union of Great Britain last year, the High Court recognised that many members of the union who are in the gig economy, often acting as private-hire drivers or couriers and providing essential services during the pandemic and who have been feeling at risk, should be protected by these provisions along with people who have contracts of employment. Such feelings could be due to inadequate PPE, for example, or failure to implement social distancing by particular businesses, making workers fearful of their position.

These regulations may therefore be much used as we emerge from lockdown, despite the R rate coming down. I hope they will help highlight the importance of social distancing and hygiene as we emerge from the shadow of Covid. I applaud the Government for being committed to updating the legislation and taking this action following the court case—quite rightly.

What are Her Majesty’s Government doing to ensure that appropriate publicity is given to this measure? Specifically, what are HMG doing to ensure that trades unions, employers’ organisations, citizens advice bureaux and other relevant organisations are prepared for the coming into effect of these provisions at the end of May this year?

Greenhouse Gas Emissions (Kyoto Protocol Registry) Regulations 2021

Lord Bourne of Aberystwyth Excerpts

Tuesday 13th April 2021 Grand Committee

[The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)]

The next speaker on the list, the noble Lord, Lord Berkeley, has withdrawn from the debate, so I call the noble Lord, Lord Bourne of Aberystwyth.

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a great pleasure my good friend the noble Baroness, Lady Altmann, and I thank my noble friend the Minister for setting out so clearly the effect of these regulations.

I support these regulations, which amend retained EU law. We clearly need to do that in order to ensure the continued application of the UK’s Kyoto Protocol obligations, which, as my noble friend said, persisted from 2008 to 2020 but will clearly go on for several years after that. That is the importance of these regulations.

Along with other noble Lords, I am keen to hear from my noble friend that we will carry on in the same way. I think he gave that reassurance, but I hope that that will be carried across in our ambition to COP 26. As he said, there will be a fresh assessment made at COP 26, and I will say something about that in a minute, if I may.

I am also concerned by the hiatus, which my noble friend touched on, between the end of the transition period and the new regulations taking effect in, I think he indicated, June 2021. Clearly there is a gap there. I think I understood him to say that that gap has been catered for and that the 112—I think he said 112—businesses that are potentially affected by this are aware of this, and I hope that they have been given guidance on how that will affect them in the period before our own registry takes proper effect in June 2021. I would welcome that reassurance.

We as the United Kingdom have a historic opportunity with COP 26, and it is incredibly important that we seize it and go forward with at least the ambition that we had in the EU—and I hope beyond it—to show that global Britain really does mean business. I know my noble friend will say that this is a matter for the usual channels, but I hope that he will be able to convey to the usual channels and to other parties the importance of having a meaningful debate in your Lordships’ House well ahead of COP 26 so that we can express our collective ambition so that can be carried forward, because this is of crucial significance not just for our country but for the entire globe.

With that, I am more than willing to support these regulations, which make sense, but I would welcome my noble friend’s reassurance with regard to the hiatus and, I hope, to a meaningful debate on this issue.

Electricity Supplier Payments (Amendment) Regulations 2021

Lord Bourne of Aberystwyth Excerpts

Tuesday 23rd February 2021 Lords Chamber

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a great pleasure to follow the noble Baroness, Lady Bowles of Berkhamsted, and I was intending to raise many of the issues she has just raised. I will still raise them, but it may now take me less time to do so. She has really put her finger on the concerns relating to the switch from the three-year basis to the one-year basis and some of the thinking behind this. I thank my noble friend for setting out the effects of these regulations very clearly and for what he said about the capacity auction—I will come back to that later, if I may.

These regulations relate to the contracts for difference schemes, which, quite rightly, encourage low-carbon electricity generation, and to the capacity market, which helps ensure security of supply. These are clearly central to government policy, which I am sure is supported in principle across the House.

The levy for the contracts for difference counterparty was previously first assessed on an annual basis. It then went to a three-year process, where the levy was fixed for three years in advance. We are now returning to a one-year basis because of the significant drop in demand for electricity in the last year. I understand all of that and support the regulations, but I am wondering what thinking there is about whether there will be a reversion to a three-year basis. I think these regulations will continue until they are superseded, so the basis will be the same. It would be interesting to hear if the Government have given any thought in the medium or long term to a return to a three-year basis, particularly in light of the Prime Minister’s road map outlined yesterday?

Clearly, this is central to the way we approach the whole issue of energy security and indeed green energy going forward, and the drive to net zero. Like the noble Baroness, I wonder what the thinking is about what happens once the pandemic ends or we come largely out of it, and whether there will be a long-term difference in the way that energy needs to be supplied. Will there be a switch to more people working from home—I am sure there will—what will be the effect of that and of people presumably not going to restaurants on the way to work for breakfast, and so forth? What will be the effect of a change from one type of transport to another? Clearly, all this needs to be considered and factored in. On a broader front—I appreciate that this is well beyond the immediate scope of these regulations—what thinking have the Government given to this issue? If my noble friend does not have the details, I would be very happy for him to write to me.

I thank my noble friend for what he said about the capacity auction, which I understand from him today is to be in March of this year. I do not know whether he has a precise date; that would be interesting to hear. I welcome too what he said about the increased ambition and the technologies it embraces.

In conclusion, on a broader front—as I say, I certainly support the regulations—in view of COP 26 in Glasgow in November and the accelerated action towards the goals of the Paris agreement and the UN Framework Convention on Climate Change, which I certainly welcome, will Her Majesty’s Government commit more resources to this vital international endeavour? The Government have done much and I know that my right honourable friend the Prime Minister is personally committed to this, but with the welcome arrival of President Biden and indeed of John Kerry as special envoy on climate, what bilateral discussions are we having with the USA and what future resources are we committing to net zero? As I say, if my noble friend does not have details, I will be very happy to learn about them in writing.

Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) (No. 2) Regulations 2020

Lord Bourne of Aberystwyth Excerpts

Tuesday 19th January 2021 Grand Committee

[Lord Bourne of Aberystwyth (Con) [V]]

My Lords, it is a pleasure to follow the noble Lord, Lord Sikka, who raised some very interesting points about insolvency law in general which I think are worthy of examination. I thank my noble friend the Minister for introducing these regulations, which are of course relatively familiar to us by now. I also thank my noble friend for what the Government have been doing in many areas to help alleviate the economic pressures that have been caused by the pandemic—I think particularly of the business rates holiday for retail, and I urge the Minister to consider with colleagues its continuation after the end of this financial year.

These regulations form part of a series that we have looked at under the Corporate Insolvency and Governance Act 2020, which was, of course, passed in June of last year—so some time ago now. I note in passing that we are renewing various aspects of the Act but on different timescales. I ask my noble friend why that is. As it seems extremely likely that we will be asked to renew these again, could we not do so on the same timescale and not have to see these things separately, given that they hang together? The provisions here on wrongful trading, which are due to end in April, will, I presume, then be subject to renewal. Can we look at these things in the round together?

Like many others, I welcome these regulations. The Explanatory Memorandum talks of a “breathing space” for business—it actually talks, I think erroneously, of a “briefing” space for business; unless that refers to communications policy, I think it means breathing space. The regulations are widely welcomed for that reason, and they do indeed provide that breathing space.

However, I am concerned about how temporary these provisions are, a point made by the noble Lord, Lord Sikka. We are coming up now to nine months of these provisions. If, as I suspect, we are asked to renew them again, that will be a year. This is not just a concern about us being asked repeatedly to renew them, because I can see the sense of that, but there is a balance of convenience here. These regulations help some businesses by preventing aggressive creditor action, but there are creditors with quite legitimate debts who are feeling the pressures of the pandemic too, and they are not able to use the normal tools of enforcing those debts while these regulations are in place.

The Explanatory Memorandum says that the Government have assessed the impact of these regulations and whether it is appropriate, because of that balance of convenience, to continue with them. Can my noble friend explain how that impact assessment has been made, so that we can examine it? There is, as I say, a concern for some businesses, which will find life difficult because they are unable to use these tools because of the suspension of some of the rights to enforce those debts.

The regulations refer repeatedly to the point that these are indeed temporary measures, and therefore no full impact assessment needs to be made. I am beginning to question that. If these regulations are going to be repeatedly renewed, then they are not really temporary at all. At what stage does my noble friend think we should regard these as more permanent?

I have one other point to make, relating to the preferential status of HMRC. This was restored in December of last year, giving HMRC, as it were, the right to leap-frog as a creditor. I appreciate that HMRC will be in the same position as other creditors, but R3, the insolvency and restructuring trade body—which I thank for its briefing—notes that HMRC has a key role to play as a creditor in most insolvencies and that it could take proactive measures to help provide assistance. That would be a very sensible move in relation to what is obviously a challenging economic position that is likely to continue for some time. Subject to those considerations, I certainly lend these regulations my support.