(1 year, 9 months ago)
Grand CommitteeMy Lords, I remind the Committee of my interests, including chairmanship of PIMFA, which represents financial advisers, and at Sancroft we advise a number of financial institutions on sustainability.
I merely want to say that one of the groups of people who will benefit considerably from this are those who are regulated. The fact is that we need to recover confidence in the regulator in two particular areas. The first is what I call the conflicts between regulators, for which there is really no way of unpicking them so that they can work more effectively. That is particularly true among many of the people with whom I deal almost every day.
The second reason why this is so important is that I do not believe that anyone should be unaccountable if they have a public position. I very much agree with the noble Lord opposite who talked about the terrible opera story. I just do not think regulators can do their job properly unless they look over their shoulder to the public as a whole, which is what we are talking about in this bit regarding accountability. As a Minister for 16 years, I know that one’s accountability to Parliament and the public was an essential part of doing the job properly. One had to say to one’s civil servants, “Look, we can’t do that because it really would make people feel that we were behaving in a way that was unacceptable to Parliament or to the public.”
That is the problem for the boards of these regulators, which seems to me to be one of the issues. As my noble friend Lord Bridges suggested, some say that the boards should deal with it. That is not possible unless a board is itself accountable to the public and, in that sense, to Parliament. I do not believe that you can expect the boards to do their job of saying to the regulator, “Look, I’m sorry, you really can’t do that”, or indeed, “You can and should do this”. I am not suggesting that it should always be “Don’t do it”; sometimes it should be “Do it”. Later on, for example, we will discuss the issue that in the City of London the regulator does not insist that a competent person says not only whether, for example, there are gas deposits but whether under the law of Britain those gas deposits will be able to be used, which is just as important. At the moment the regulator does not do that and there is no way of insisting that it should. I therefore strongly support what my noble friend Lord Bridges has said.
My Lords, this amendment is absolutely inspired. We had a debate earlier about the merits of parliamentary committees, and it was questioned whether they would have sufficient resource to do the work. I am very taken by what the noble Lord, Lord Tyrie, had to say. At the risk of embarrassing him, he was a very distinguished member of the Treasury Select Committee and did some fantastic work there. He comes from a background in the Civil Service and has experience inside government. Therefore, we should take very seriously what he had to say about the merits of this proposal.
(6 years, 9 months ago)
Lords ChamberMy Lords, I was once estimably advised by the noble Lord, Lord Turnbull. I want to look at this amendment from the point of view not of the civil servant but of the Minister. I think your Lordships’ House has already understood how difficult it would be for a Minister to understand what he could or could not do under this part of the Bill. First of all, he would have to turn to the modern equivalent of the noble Lord, Lord Turnbull, to ask him what the distinction between a fee and a charge was, and I am not sure that the noble Lord’s equivalent could be entirely precise as to what that distinction was because it is almost impossible to tell.
The noble Lord sitting next to the noble Lord, Lord Turnbull, got up and pointed out the word “contribution”. Of course when talked of in terms of national insurance a contribution is manifestly a tax, but it does not cover the cost of the service to which it is actually appended. It must therefore be possible to have a fee that does not cover the cost but is in fact a tax. That suggests that this part of the Bill—I do not speak of any other part—has not been entirely well thought through.
I do not wish to prolong this but I have been reflecting on the definition by the noble Lord, Lord Turnbull, of a tax. He said that it was if you made a surplus. Does that mean that if a charge were being made for a service and the body concerned cut its costs so that it was making a surplus, it would then turn into a tax?
It seems to me that almost any circumstance does not fit this part of the Bill; indeed, I find it difficult to find a single circumstance that does. I hesitate to put this to my noble friend because on the last occasion when I tried to be helpful he found me more unhelpful than usual, so I shall be very careful, but I ask him to imagine that this particular clause was being proposed by a monarch who simply said, “I want to have the powers to decide what kind of word I am going to use for taking money out of your pocket without proper parliamentary control”. I think I know what our forefathers would have said to that monarch. He might indeed have been in fear of his life, for this is precisely what Parliament is about.
We ought not to deal with this merely in the reasonably light-hearted way in which we have pointed out that this is an ill-conceived, utterly ill-thought-through and entirely indefensible bit of the Bill. We should take it one stage further and say that it is fundamentally unacceptable in a democracy that any mechanism can give Ministers the power to decide on taxation without representation. This is what we are here for. This is what Parliament is here for.
It is no good my noble friend reading out, as he will, the carefully phrased answers, because the people who have written the answers have caused the problem in the first place. They are the ones who have not understood that taking back control does not mean giving it to my noble friend. It means, if it is necessary—I do not think it is, but if it is—giving it to Parliament. This is part of the Bill which does not so do. The amendments attempt to put right what is, in the immortal words of some Members of the House, a dog’s breakfast, which is rude to dogs.
This is entirely unacceptable, but there is one bit that I find more unacceptable than any other. If this is necessary in order to carry through our international obligations, which is an argument that has been used, it is a peculiar addition to a Bill which is removing us from international obligations. The one place where this should not be is in the withdrawal Bill. We are withdrawing from international obligations on the basis that we do not want to have them, but writing in an ability to assert international obligations by secondary legislation.
My noble friend Lord Forsyth, who has followed me so far, did not like my little comment about the EU, but I am sure he agrees that we should not be using secondary legislation to impose taxation as a result of international obligations. That is not what it is about.
My last point is very simple. I have always found the word “expediency”, when used by Ministers, a red flag. Ministers always say that something is necessary because it is expedient. Expediency is always the excuse for doing something which you cannot do properly but which you get through on the basis that this is an emergency, it is urgent, or it has something to do with terrorism—we can find some reason or other that means we cannot wait for the proper process.
I was a Minister for 16 years. We are three former Ministers. None of us thinks that this power should have been given to us, so just think how little we believe it should be given to people with a different political view. I say to the Minister, who is well to a different part of the Conservative Party from me, that he should be the last person to give these powers to Ministers.
(8 years, 9 months ago)
Lords ChamberMy Lords, I am not certain that I understand why no one is getting up on the other side on this matter. I will just intervene briefly to ask the Minister, when she comes to reply to this amendment, if she could explain the Government’s thinking on the use of the internet and technology. I ask because the Finance Bill is providing for the use of digital returns for people’s entire financial affairs. At no stage did I hear the Government suggesting that the internet was prone to hacking and that, therefore, it would be quite impossible to move to a system where we have people presenting their tax returns electronically. It is also the Government’s intention that returns should be filled in electronically by other people detailing income or savings or investment income.
Either the Government believe in embracing the future and the importance of the use of digital technology or they do not. It seems to be both. In respect of people’s financial information, they believe that it is a proper and sensible way to get more efficient application of government services. Increasingly, people’s personal health and other information will be transmitted and shared over the internet. I suspect that that is because the Government fully understand that, with good hygiene, it is possible to have secure digital systems in place. So I very much hope that my noble friend will explain why that does not apply to ballots organised by trade unions, which are independent organisations and which will have an interest in ensuring that the ballots are properly conducted. Perhaps she could also explain how on earth she could possibly be against the amendment, because all that it suggests is that the arguments put up by the Government should be looked at within six months by an independent body, and there is provision for this to be brought into effect.
This is important because I remember, when I was first elected to the House of Commons, making speeches in support of our trade union reforms. The argument that I used at the time was that we wanted to give trade unions back to their members; we wanted their members to be more in control. That is why we opposed the closed shop; that is why we brought in ballots. This sensible legislation is intended to ensure that people do not go out on strike without the support of our members. If that is our intention, why on earth would we want to resist something that will allow increased participation?
The big danger for the Government is that those who are perhaps not their friends may be able to argue that what they are really doing is trying to undermine the rights and responsibilities of trade unions to look after the interests of their membership, and making it more difficult for them to take industrial action, even where that enjoys the support of the membership. That would be a foolish error to make. So I very much hope that, having listened to the debate, my noble friend will feel able to accept the amendment moved by the noble Lord, Lord Kerslake—who, after all, has very considerable experience of dealing with the public sector unions and is very well aware of the issues that arise.
My Lords, there are moments in this House when I begin to wonder whether I have quite got the right end of the stick. On this occasion, I find myself in considerable agreement with my noble friend Lord Forsyth on an issue on which it might have been suggested that we would differ. I also have to tell the Minister that I just do not understand her reasons. Here we have a request that we consider a mechanism which all of us use every day in our business life. We do not say, “Gosh, I’ve got to write a letter because somebody might steal my email”. We do not say, “I wonder whether I can bring back the old-fashioned secretary who can take shorthand and write it out, because I am concerned about the security of my business”. I would be unable to run a business if I did that.
We recently had a hotly contested debate on whether we should be allowed to use modern technology in this House. I had a sharp disagreement with my noble friend Lord Cormack on the issue. But the House said that really we had to move into the 21st century, and that it was not sensible not to avail ourselves of the mechanism—and I must say that, since I have been able to use it, I have been able to pick up some falsehoods, quoted sometimes I fear by the Opposition, on a number of issues, because now I can look things up pretty quickly. In the debate on Brexit, I find that almost every speech made by those who wish us to leave the European Union is filled with such falsehoods—and I can look it up at once.
On that, I deeply disagree with my noble friend Lord Forsyth.
To be serious, the argument goes like this: it may be that an electronic ballot may be less safe than a postal ballot, but we are not prepared to allow anyone to look into that proposal. I do not think that I would like to argue that from the Front Bench. Therefore, I ask my noble friend very carefully to lead me step by step along the argument so that I can be convinced—for I am very willing to be convinced, but I need a very careful explanation. Up to now, I have found it impossible to understand any basis whatever for arguing that it is not reasonable to look at such a matter at such a time, in such a way, with such an opportunity to say no if you do not like the result. That does not seem to me to be a challenge to the Government, and I very much hope that my noble friend will be able to help me yet again on this very difficult matter.
(8 years, 9 months ago)
Lords ChamberI am sure my noble friend will agree that I could not be characterised in quite the way in which he characterised himself, but I entirely support what he is saying. I do not think that this is a proper way to behave. We ought to make it easy and simple for people to belong to a trade union, and if it is best done this way, they should be allowed to do it this way.
There we are: we have the entire spectrum of the Conservative Party in agreement on this matter. I will not make any comments about Europe, so that we may maintain that position.
As the noble Lord, Lord Kerslake, pointed out, we allow charitable deductions, and as Conservatives surely we believe in reducing the power of the state, not increasing it. What business is it of the Government or the state to decide what arrangements are made between free trade union movements and employers?
I have looked in vain to find this great cohort of employers that are against check-off. It seems to me—this is a central point that has been made in the debate—that you do not want to create a situation where there is tension between employers and trade unions, and where you perhaps end up back where we were before the 1980s, with militant people going round the workplace to collect subscriptions and to encourage people to do things which we on this side of the Chamber would not be very enthusiastic about.
I am also very concerned about another thing. We have had a debate on my noble friend Lord Strathclyde’s report on the use of secondary legislation, but here we have, in new Section 116B(3), in Clause 14:
“A Minister of the Crown may by regulations provide, in relation to a body or other person that is not a public authority but has functions of a public nature and is funded wholly or partly from public funds”—
that is quite a wide gang—
“that the body or other person is to be treated as a public authority for the purposes of this section”.
So the Government are taking unto themselves powers to be even broader in respect of something about which, as far as I can see, they have not yet made their case.
I do not want to take up much more of the Committee’s time, but will just give notice to my noble friend that, should this matter come to a Division, I will certainly not be supporting it. I suggest to my noble friend that she looks very carefully at the amendment from the noble Baroness, Lady Wheeler, and the noble Lord, Lord Collins of Highbury, which seems to me to do everything that the Government could possibly want, if there is a genuine and sincere reason for making this change. It would provide for a proper code of practice, which means that people will be aware of what they are doing.
I suppose I should have declared my interest as a director of a bank, but the point has also been made about people who do not have bank accounts. I dare say we could find noble Lords on this side of the House who have not paid their subscription to the Conservative Party because they forgot to renew it and did not have a direct debit or something of that kind—my noble friend Lord King is indicating alarm at that. It is a very simple system, which is tried and tested and about which there are no complaints.
The costs are absolutely negligible. If it is a cost argument that is driving the Government, employers could charge the cost to the trade union, as the amendment in the name of the noble Lord, Lord Balfe, who I thought made an excellent speech, suggests. But to my mind the costs to the employer are considerably less than those of having people coming round the workplace collecting subscriptions. If anything, what is being proposed will add to the burden of employers, and I thought that as Conservatives we were against adding to the burden of employers and in favour of making life as simple as possible for them.
This looks to me like something that seemed a good idea at the time, which has now got into legislation, perhaps not with the best of motives. It would be wise of the Government to take the good advice which is coming from all sides of the Chamber and drop it.
(12 years, 8 months ago)
Lords ChamberMy Lords, I am surprised that there is not more interest in this important piece of legislation. This amendment is very straightforward. If my noble and learned friend is not able to accept it, I hope that at least he will be able to give an undertaking that the substance of it will be adopted by the Government.
It is perfectly apparent that the Government do not intend to use the Scotland Bill to provide for the forthcoming referendum on independence. As my noble and learned friend has made clear, the preferred procedure is to use a Section 30 order, but subject to the important conditions that such a referendum taken forward by the Scottish Parliament would be regulated and run by the Electoral Commission, and that there should be a single question.
This amendment is concerned with what happens in the run-up to the referendum. I take it that if my noble and learned friend is not successful in persuading the Scottish Government of the need to move forward on a Section 30 basis, they will bring forward a Bill in the next Session of Parliament to provide for a referendum. No doubt the date of that referendum would be decided at that point.
It is important that we have an informed debate within the United Kingdom as a whole and Scotland in particular. So far the debate has all been about process, about who is going to set the question and what the question should be. This is an important question. It concerns the future of the United Kingdom as a whole, and will have an immense impact on people in ways that many people, including myself, have not even thought of.
This amendment asks the Government for a clear undertaking that every single government department will set out in a Green Paper, in objective—not political—terms, what the consequences of independence would be and what issues would need to be addressed. There are large-scale issues that are obvious, such as what would happen to our nuclear deterrent given that the Scottish Government are opposed to nuclear material being on Scottish soil, and the costs and employment consequences of that. There are also issues about public sector pensions as Scotland, because of its long tradition of public service, has a disproportionately large number of people involved in public service.
In the field of banking and finance, the Treasury should indicate what would happen to organisations like the Royal Bank of Scotland; for example, how could it possibly meet its requirements for raising capital in an independent Scotland? What would happen on the currency? What would happen on the role of the Bank of England? How would we avoid a Greece-like situation?
In the Department of Energy and Climate Change, what would happen in respect of the interconnectors and how would the so-called green policy of being entirely dependent on renewables work in an independent Scotland? It might be cheaper for England to buy its electricity from France, which is generated by nuclear, than from Scotland, where the whole business model for the Scottish Government’s green agenda depends on being able to add to the bills of English, Welsh and Northern Irish consumers.
Those are some examples; I could go on but I have no desire to spin out the debate today because I know people are anxious that we should conclude these proceedings as speedily as possible. But if we leave it to campaigners and politicians to exchange perhaps not entirely well informed arguments, the public will tire and the very serious consequences of the disintegration of the United Kingdom, of the balkanisation of Britain, will be lost sight of.
If I were in my noble and learned friend’s place, I would say, “I am not sure that it is necessary to put this in the Bill”. I accept that, but we should have an undertaking that every government department and its executive agencies will set out the implications for their policies and planned expenditure, so that people go into this with their eyes wide open, and the separatists who advocate breaking up Britain have to explain how they would address these issues. At the moment, people are going round saying that it is up to us to make a positive case for the United Kingdom. I reject that. It is up to those who propose change to explain how they will maintain the benefits that we all enjoy as part of the United Kingdom, wherever we live and whatever our political convictions.
Does my noble friend agree that this is absolutely crucial for those who are not Scottish as well as for the Scottish? Many in England feel that they need to understand exactly what the consequences are and unfortunately up to now they have had no such opportunity, which is why his amendment is so important.
I am most grateful to my noble friend for that intervention. I look at this from a Scottish perspective and I should have given more emphasis to that. He is absolutely right. This will have huge implications for people in England as well as Scotland. I find it very difficult to see how we could keep our role and influence in the United Nations, for example, if the United Kingdom was broken up. I think our country would be seen to be greatly diminished internationally. I do not quite know how it would work, given that the Scottish nationalists are opposed to our membership of NATO. Most countries are queuing up to try to get in to NATO, but this lot want to leave NATO. What is the position of our armed services, whose dedication fills everyone in the country with admiration?