Financial Services and Markets Bill

Debate between Lord Deben and Lord Hill of Oareford

Committee stage
Wednesday 1st March 2023 Grand Committee

[Lord Hill of Oareford (Con)]

My Lords, I will speak briefly but strongly in support of this amendment and, in doing so, state my interest as the lead NED at the Treasury and as an adviser to a number of global and European financial businesses.

It is a pleasure to follow the noble Lord, Lord Vaux, because he made the point that I wanted to start with: we must not think of this as an alternative to parliamentary scrutiny. We all agree that we need much more thorough parliamentary scrutiny; this amendment would help Parliament to do its job. The point that the scrutiny is to be fact-based and analytical is key.

The proposal for the overall framework of scrutiny has an OFRA-sized hole, which this amendment would fill. It is rare to find an amendment where you cannot detect anyone who is going to lose from it, but I can see only an upside for all groups with this amendment. It would be good for the regulators, as we have heard, because it has the potential to detoxify the political debate. It would be good for the Government because it would provide a more stable, long-lasting framework. We need to get this right now because I do not know when next a Bill will come along that will enable us to look at this framework. We have been waiting for a long time, since 2016, so we need to get something that is stable and going to endure. As we have argued, it would be good for Parliament because it would aid its task of scrutiny and it would be good for the financial services sector, which is our most important contributor to tax revenue, because it would provide an analytical basis in which it could have confidence and trust. My noble friend Lord Bridges has presented the Minister with a gift horse and I very much hope that she will not look it in the mouth.

[Lord Deben (Con)]

My 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.

EU Council

Debate between Lord Deben and Lord Hill of Oareford

Monday 28th October 2013 Lords Chamber

[Lord Hill of Oareford]

I am not sure that I can enlighten the House on a huge amount of detail but there are two strands to what the Prime Minister and those who agree with him in the EU are seeking to achieve. One is that the Commission has its own process under the REFIT programme that my noble friend will know about, which is coming up with a series of regulations, measures and so on that it thinks could be repealed, not introduced or otherwise revised. That is a Commission-led process. Alongside that, the Prime Minister has been working with British business, and the British Business Task Force has been working with European businesses, to come up with suggestions from a business perspective regarding further changes that could be made. A twin-track process is going on. One track is led by the Commission and, in the other, Britain with its allies is trying to take forward this issue of how one can have the right amount of regulation that will not hold back economic growth, which is our priority, and get that balance right.

[Lord Deben (Con)]

Does my noble friend agree that the opposition Front Bench was a little curmudgeonly in the second part of its response on youth unemployment, given that this Government have done remarkably well on unemployment during a very difficult time? Was it not also true that his Statement showed just how important it is for Britain to be a full member of the European Union? None of these things would have happened in the way they have and to the degree they have had not the Prime Minister taken an active part. Is it not time that people stopped complaining about the European Union and in fact spent their time improving it in the way in which the Prime Minister is clearly doing?

[Lord Hill of Oareford]

My Lords, I would never—although perhaps I might occasionally—accuse the noble Baroness, Lady Royall, of being curmudgeonly. My noble friend is quite right about what has been achieved in terms of generating jobs generally and the improving trend of economic figures that we are beginning to see. There is much more to do but there has definitely been progress. He is also right about what has been done to tackle youth unemployment. On his broader point, the Prime Minister has demonstrated that it is possible both to argue strongly for Britain’s national interests and to build alliances with other similar-minded countries in Europe to bring about change for the common good. The issue is sometimes presented as a false dichotomy, whereby if you argue for Britain’s national interests you jeopardise your influence within Europe and you either have to go with the consensus or become an outist. The Prime Minister has set out that one can argue very strongly from within the EU for what is in the interests of the whole of Europe as well as Britain.