Pension Funds: Investments and Tax Relief

Debate between Lord Deben and Viscount Younger of Leckie

Thursday 29th June 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

I would hope that parliamentarians have a role in this; I shall certainly get back to the noble Baroness on that point. As she will know, guidance states that trustees can consider climate change, but we acknowledge that there is some ambiguity, which I think is the gist of the noble Baroness’s question. That is why we are engaging with the Financial Markets Law Committee working group, which is discussing further fiduciary duty. The next meeting will take place at the end of the month.

[Lord Deben (Con)]

May I encourage the Government to do what they have sought to do, but to recognise too that the speed at which climate change is happening is right at the top end of what the scientists thought? Therefore, the fiduciary duty of pension funds to take that into account becomes the more urgent. I hope that in the review later on in the year, the Minister makes sure that they understand the devastating effects on those investments.

[Viscount Younger of Leckie (Con)]

I know that my noble friend is extremely active in this area, and I reassure him that we continue to encourage pension schemes to commit to net zero in a way that works for them. As mentioned earlier, from October 2022 we introduced this requirement in the TCFD regulations, which is specifically to calculate and report the extent to which their investments are aligned with the Paris agreement goal.

Free Trade Agreement: New Zealand

Debate between Lord Deben and Viscount Younger of Leckie

Monday 25th October 2021 Lords Chamber

[Viscount Younger of Leckie (Con)]

Yes, we are continuing to give reassurance to UK farmers, and I hope that we will succeed in the end. The noble Baroness makes a very good point about standards. The Animal Protection Index, for example, ranks both our countries highly compared to others around the world across a range of animal welfare indicators. Both the UK Government and the New Zealand Government have a long-standing recognition of the sentience of animals. The UK and New Zealand already have a veterinary equivalency agreement, meaning that we already trust and recognise its animal health standards as equivalent to the UK’s.

[Lord Deben (Con)]

I wonder whether my noble friend accepts that we are going to ask our farmers to take on very considerable responsibilities if we are to have any chance whatever of meeting net zero, yet in this agreement we are not in any sense saying that the farmers of New Zealand have to meet the same standards. The New Zealand Government have not placed on their farmers the same standards that we are going to place on ours. For that reason, this runs wholly contrary to what the Government said they would do, from that Bench, when we had the discussions about trade. I am sure that my noble friend will understand how suspicious we have to be given that the Government actually removed from the Australian agreement the tough words about the agreement in Paris six years ago. Unless the Government can show that all trade agreements will have a serious part concerned with climate change, we really cannot ask our farmers to do what they have to do and then find them undermined by imports from countries that are not doing the same thing.

[Viscount Younger of Leckie (Con)]

I hope that I can give my noble friend some reassurance, because the UK’s climate change and environmental policies, including in trade negotiations, are some of the most ambitious in the world, reflecting our commitment as the first major economy to pass new laws for net-zero emissions by 2050. On his points about the deal, this trade agreement with New Zealand is one of our greenest ever. It includes a ground-breaking chapter that reinforces our commitment to the Paris temperature goals and our efforts to meet net zero. It encourages the growth of a clean economy and demonstrates our global leadership on climate and environmental protection. This agreement will encourage trade and investment in low-carbon goods, services and technology. It will demonstrate global leadership in climate and environmental protection, but it includes commitments on urgent environmental challenges such as marine litter, sustainable agriculture, air quality and the transition to a circular economy.

Northamptonshire (Structural Changes) Order 2019

Debate between Lord Deben and Viscount Younger of Leckie

Tuesday 11th February 2020 Grand Committee

[Viscount Younger of Leckie]

I thank the noble Lords who took part in the debate, which has been not only interesting but informed. It has also been somewhat philosophical, particularly in the remarks made by the noble Baroness, Lady Pinnock.

The noble Baroness, Lady Pinnock, the noble Lord, Lord Liddle, and my noble friend Lady Scott referred to the children’s trust. I absolutely take note of their comments. All I can say is that I will take these concerns back as I am not in a position to answer them; perhaps these views are of a more philosophical sort.

In the same breath, let me say in response to the noble Lord, Lord Liddle, that a letter will be delivered to all noble Lords who took part in the debate, perhaps to put a little more meat on the bones of that particular comment relating to the children’s trust, but also to answer his questions. In fact, I will attempt to answer some of those questions during my closing remarks, but I suspect that I will not answer them in full.

Perhaps this is me being a bit philosophical, but this subject leads to endless debate. Everybody has their own view on how local services are best met and how local authorities and local councils come together best. I understand that. I have my own views; obviously, they are the views of the Government.

I start by setting out our high-level policy: what are we trying to do in local government reorganisation? I hope to allay some fears. The Government are open to innovative, locally led proposals that will improve services, enhance accountability and deliver financial sustainability. Any proposal considered under the Cities and Local Government Devolution Act process will require unanimous consent from all councils. Alternatively, the Secretary of State may issue a formal invitation for proposals.

Two circumstances will be considered in issuing such an invitation. The first is where the following two conditions are met: there is a local request for an invitation, and that request demonstrates that local opinion is coalescing around a single option that is reasonably likely to meet the existing publicly announced criteria for unitarisation. The second circumstance is where it is considered that this action would be appropriate given the specific circumstances of the area, including the long-term sustainability of local services. We are clear that any change to council structure should not be dreamed up or imposed by Whitehall, but led by councils and local people. Councils are much better placed to develop proposals that suit the unique needs of their residents and businesses. That is the overarching policy, which noble Lords have no doubt heard before.

[Lord Deben]

I am sorry to press my noble friend on this, but this proposal does not meet any of those things. First, it was not unanimously accepted by the local councils. Secondly, it was the Secretary of State who said what they could and could not agree to. There was no opportunity for innovative proposals; indeed, they were told precisely that there could not be innovative proposals. It is that that worries me. It is not that there is not a philosophy; it is that in no single case have I found that philosophy being followed. My noble friend, the former leader of Wiltshire Council, pointed out that Wilshire works perfectly well and so does Cornwall. Why was Northamptonshire not given the choice to have a single unitary authority? It is that that worries one. We are not keeping to what we said was our policy; I therefore wonder whether we really have a policy.

[Viscount Younger of Leckie]

I hear what my noble friend says, but I do not agree with him on this. There are several reasons for that. Of course he will expect me to say that; I will say it. We see a fresh start for the people of Northamptonshire. It will provide new councils in which local people can have confidence, providing effective, modern and sustainable services. Like the noble Lord, Lord Kennedy, I thank the leaders of the eight—not seven—Northamptonshire councils and the commissioners for the leadership that they have shown to take us to this point.

On the lack of unanimity and there being one council —Corby—that was not entirely on board, it has consistently shown great strength of purpose in nearly supporting things, so when we say that it is not entirely unanimous, Corby was behind many of the issues. Perhaps a letter is required to give a little more information on that.

One of the most important things in this process is consultation. The local consultation described the majorities in favour as overwhelming, with 74% support overall and 77% and 70% in West Northamptonshire and North Northamptonshire respectively. I do not want to be drawn in on the names—I do not think that I can comment on that—but I take the noble Lord’s point on the names that were given.