Companies: Executive Remuneration
Debate between Lord De Mauley and Lord Borrie
Lord De Mauley
Presumably unless they are quoted, my Lords. Institutional shareholders are showing a great deal more interest in taking action on this than they have previously, and we have every hope that they will take advantage of the tools that we propose to give them.
Lord Borrie
My Lords, what is the Government’s attitude to establishing by law a multiple of the lowest paid in a company or institution beyond which the salary of no other person in the company or institution should go?
Groceries Code Adjudicator
Debate between Lord De Mauley and Lord Borrie
Lord De Mauley
My Lords, the adjudicator’s primary role will be investigating complaints and uncovering breaches of the groceries code. Once the breach is uncovered, the adjudicator will be able to use the following remedies. First, it will be able to recommend to the retailer how it should comply with the code. If that is not followed, a further investigation can be launched with a tougher remedy. It can instruct the retailer to publish information on the breach—naming and shaming, to which the right reverend Prelate referred. There is then a reserve power to impose financial penalties, which will only become available to the adjudicator once the Secretary of State has allowed it by order.
Lord Borrie
My Lords, does not the Minister agree that the power of supermarkets is such that there should not be any artificial restrictions on who might be the complainants and what they might complain about? Among the possible complainants would be suppliers such as farmers, through the National Farmers’ Union, or other retailers through the British Retail Consortium. Why restrict them in any way from making complaints to the groceries adjudicator if he or she is to have any real power over the exacting power of supermarkets that exists at the moment?
Lord De Mauley
I agree with the noble Lord and that is why anybody will be able to complain.
Banks: Mutual Ownership
Debate between Lord De Mauley and Lord Borrie
Lord De Mauley
My Lords, UKFI, which manages the Government’s investments and financial institutions is responsible for devising appropriate exit strategies. Its mandate requires it to act in a way that protects and creates value for money for the taxpayer and pays due regard to financial stability and competition considerations. It is currently exploring the options available for disposing of Northern Rock plc. All exit strategies will be considered, including remutualisation.
Lord Borrie
I am grateful to the Minister for his moderately helpful Answer, especially the reference to the activities of UKFI. Does he agree that traditionally and well deservedly mutuals have had a very high reputation among customers generally for satisfaction with their activities, that mutuals have engaged less than banks in speculative and risky activities, and that certainly they have provided a great deal of competition and diversification over the years? In this new set up today, when there will be some sales of existing state-owned parts of banks, will the Minister ensure that the mutuals get a great deal of understanding in this regard? Perhaps the Government could initiate a feasibility study through UKFI, which would be most helpful.
Lord De Mauley
Yes, my Lords, I think I can agree with the noble Lord. The important thing is the stability of our financial system. The Government are committed to fostering diversity in financial services, including, where appropriate, mutual ownership, and to creating a more competitive banking industry. That is why we have set up the Independent Commission on Banking: to recommend reforms to the banking system that meet those objectives, including promoting financial stability and consumer choice.