Arrangement of Business

Debate between Lord Foulkes of Cumnock and Lord Newby

Monday 18th March 2019 Lords Chamber

[Lord Newby (LD)]

My Lords, the truth is that the Government Chief Whip has put a brave face on a farce. The position is that the Commons decided last week that it would press for a rejection of no deal and an extension of Article 50. It has been perfectly clear all along that any such reasonable request would be accepted by the European Council at the end of this week, so the only basis on which the Government are pursuing these no-deal SIs is that they simply have no faith in their own ability to enact what the Commons has asked them to do and what the EU has said it is prepared to do.

I want to ask about the disappearing primary legislation relating to Brexit. Even if the Government were to get their deal through, there are a number of pieces of primary legislation that they say will be necessary at the point we leave the EU, particularly the immigration, Agriculture and Fisheries Bills. None yet has a scheduled date for Report in the House of Commons, which I assume means that they cannot come to this House on the planned schedule until after Easter. There will then be about eight weeks until 30 June, which is the point at which the Government say they wish their extension to come to an end and, presumably, leave the EU. May I have an assurance from the noble Lord that these pieces of primary legislation, which are deemed necessary—indeed, essential—by the Government, will be brought to your Lordships’ House, if the Government succeed in getting their deal through, in a timely manner, so that we do not have the same kind of farcical rush we have been expected to endure on other matters?

I also want to ask the Minister to deny the rumours that have been swirling around the House in recent days that the Government plan to curtail the Easter Recess and that, just as in February, noble Lords will be expected to be in Parliament, business or not, when they are currently planning to be away. Finally, given all the uncertainty surrounding the Government at the moment, will the Chief Whip give the House an undertaking that, in the light of what happens at the weekend, he will return to the House next Monday and explain what is going on?

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I genuinely thank the Government Chief Whip for listening sympathetically and agreeing to the specific suggestion I made last Thursday. I hope this will create a precedent.

Further Discussions with the European Union under Article 50 of the Treaty on European Union

Debate between Lord Foulkes of Cumnock and Lord Newby

Wednesday 27th February 2019 Lords Chamber

[Lord Newby (LD)]

My Lords, this is now the 11th debate or Statement on the Government’s withdrawal agreement and political declaration since last December. During the three months in which these debates have taken place, not a single thing has changed. The purgatory continues.

For a number of months, when my colleagues have become exasperated that Jeremy Corbyn appeared to set his face against supporting a referendum on the Brexit deal, I have sought to reassure them by using the analogy of the five year-old schoolboy who does not want to go to school. As he is being dragged to school by his parents, he stamps his foot and says, “I don’t want to go to school! It’s not fair! I’m not going to school!” He knows, of course, that he will have to go to school, but his amour propre will not allow him to admit it. Only when he crosses the school threshold does he stop his wailing and run to join his classmates. Mr Corbyn has now crossed the threshold.

This is a fair analogy of Mr Corbyn’s behaviour, but until yesterday, I did not think that it applied equally to the Prime Minister. Yet this is exactly what she has done with regard to an extension of Article 50. She has said publicly, all along, that 29 March is a sacrosanct departure date. She stamped her foot as late as the weekend to repeat this mantra but she has now proposed giving the Commons a vote to extend Article 50 for an unspecified number of months. She must have known for some time that she was going to have to shift her position but she has done so with the greatest reluctance, and in a manner which will enable her to blame the Commons for the decision which she will have flunked. She should herself be advocating a short extension on the basis of her conviction that her deal will succeed, for without an extension, it is simply impossible to get the necessary legislation through in an orderly manner.

When I debated this with Brexit Minister Chris Heaton-Harris on last Saturday’s “The Week in Westminster” programme, he said that everything would be on the statute book in time, but apparently only by dropping half the primary legislation which we had previously been told was necessary and by implying the use of emergency procedures to get the rest through. Can the Minister tell the House which pieces of legislation the Government believe they will need to pass before 29 March if their deal is approved by the Commons? Specifically, does it include the Agriculture, Fisheries, Trade and immigration Bills? We have repeatedly asked these questions but from the Government, answer comes there none.

Yesterday, the noble Baroness the Leader of the House said in respect of Brexit-related primary legislation that we,

“need to ensure that this House has adequate time to scrutinise it in the usual manner”.—[Official Report, 26/2/19; col. 148.]

Can the Minister explain how we will be able to scrutinise the European Union (Withdrawal) (No. 2) Bill in the usual manner? We will not know until 12 March whether the Government’s deal has been approved. If it has, that gives a mere two weeks to take the Bill through all its parliamentary stages. Will the Minister acknowledge that we would have to break our normal rules in considering legislation if we were to get the Bill through in time, and will he apologise to the House on behalf of his noble colleague the Leader for giving such a misleading impression yesterday? Therefore, the Prime Minister refused to contemplate extending Article 50 to give time for her deal, if it is passed, but she has been forced to concede a vote on the extension of Article 50 if, as is highly likely, it does not.

The purpose of any extension, as is clear both from the Cooper-Letwin initiative and the possible rebellion of members of her Cabinet and government more generally, is to ensure that we do not crash out without a deal on 29 March. If anybody had any doubts about why they should avoid no deal, the Government’s damning document of yesterday, Implications for Business and Trade of a No Deal Exit on 29 March 2019, should put them right. The noble Lord, Lord Livingston of Parkhead, summarised the position brilliantly yesterday when he described no deal as,

“not a negotiating card, but an act of wilful self-harm”.—[Official Report, 26/2/19; col. 154.]

There are going to be votes on 12 and 13 March, which are likely to lead to further rejection of the Government’s deal and a rejection of no deal. The following day there will be a vote—which is likely to pass—to ask the Government to request an extension of the Article 50 period. The danger is that everybody then relaxes. That would be a big mistake because the clock will still be ticking—just for slightly longer. The Government will still argue that no deal is on the table.

[Lord Foulkes of Cumnock (Lab Co-op)]

Can the noble Lord remind me: is that not the ides of March?

[Lord Newby]

I am afraid I did not have the benefit of a classical education, but I know that the noble and learned Lord, Lord Keen of Elie, will be able to answer the question.

Brexit: Negotiations

Debate between Lord Foulkes of Cumnock and Lord Newby

Thursday 15th November 2018 Lords Chamber

[Lord Newby (LD)]

My Lords, I commiserate with the noble Baroness who had to repeat this Statement, because we know that she does not agree with it. It appears that she was one of 10 Cabinet Ministers who expressed severe reservations about the agreement. Will she explain her reservations in her reply? I think that the House would like to know.

There is a lot of real and mock surprise and indignation about the contents of the withdrawal agreement. Yet how could anybody reasonably expect it to be materially different from what has emerged? Once you accept a frictionless border in Northern Ireland, provisions such as those now in the agreement become inevitable. That was recognised by the Government in the agreement they reached with the EU last December and, incidentally, which they have spent the last 10 months denying. They have now reaffirmed that December commitment.

If the outcome on the transitional period and the backstop are predictable, I am genuinely shocked at the outline of the political declaration. In some ways, this is a much more important document because it covers our long-term relationship with the EU, not just the position during the transitional phase. I had expected the document to be layered with fudge, but I could not imagine that it would be so vague and unspecific—a mere seven pages.

It is vastly less detailed than the Chequers agreement, which listed some 68 programmes or bodies by name of which the UK wished to remain a member post Brexit. This document mentions hardly any. I believe that we are to get a somewhat extended version next week but, based on the seven pages we have before us today, it is unlikely to answer any of the difficult issues which remain. Fisheries and the European arrest warrant are but two of the myriad tricky issues that are clearly nowhere near being resolved. I cannot believe that the country would accept this pig-in-a-poke Brexit.

However, it is clear that we are not going to get to the point where these things matter, because the agreement document bears all the hallmarks of Monty Python’s dead parrot. It is bereft of life. In her statement last night, and again this morning, the Prime Minister admitted for the first time that there are three possible outcomes to the Brexit process. We can accept her deal, we can crash out without a deal, or we can remain. The noble Baroness has said many times that remain was not an option. The noble Lord, Lord Callanan, has probably said it hundreds of times.

[Lord Foulkes of Cumnock (Lab)]

Thousands.

[Lord Newby]

Or thousands, I stand corrected. That was never true. At least the Prime Minister now accepts reality. I am not by nature an avid reader of the Daily Express, but I caught its front page today and I agree with its headline: “It’s a deal—or no Brexit”. I agree. And given that it is now abundantly clear that the current deal has zero chance of passing through the Commons, and we know of course that the Commons would never vote for a ruinous no-deal outcome, remain is now the only viable option. This will of course require a referendum to get the endorsement of the people.

The Government are spending hundreds of millions of pounds preparing for a no-deal outcome, which they know will not happen. Will they now spend the extremely modest amount needed to prepare for a referendum, to be held next spring, which will put the Government’s deal to the people with an option to reject it and remain in the EU? Given that we have been told from the Dispatch Box umpteen times that a prudent Government prepare for all possible contingencies, and that they now accept that this is a possibility, would a failure to do so now not be a dereliction of duty on the Government’s part?

European Union (Withdrawal) Bill

Debate between Lord Foulkes of Cumnock and Lord Newby

Report: 4th sitting (Hansard): House of Lords
Monday 30th April 2018 Lords Chamber

[Lord Newby]

My Lords, the first referendum was a mandate to the Government to negotiate Brexit. At the end of the process, a decision has to be taken on whether that mandate has been adequately fulfilled. The only question is whether the Commons alone or the Commons supported by the people should take that final decision.

[Lord Foulkes of Cumnock]

With due respect to my noble friend, the first referendum was in 1975, overwhelmingly in favour of the European Union.

European Union (Withdrawal) Bill

Debate between Lord Foulkes of Cumnock and Lord Newby

Monday 19th March 2018 Lords Chamber

[Lord Newby]

My Lords, I really think that in this point in the debate it is best if people do not revert back to what people said in 2016 or I shall start talking about what people wrote on the side of a bus. It would be completely unproductive.

With the amendment in my name, we are also debating referendum amendments in the names of the noble Lords, Lord Wigley and Lord Foulkes. There are slight differences in emphasis between them, but on one thing we are all agreed: Brexit is the most important decision that this country will face for decades. Every person in the country will be profoundly affected by it and so every person should have their say on whether it is a future that they wish to embrace.

[Lord Foulkes of Cumnock]

My Lords, I beg leave to move Amendment 357 in my name.

European Union (Withdrawal) Bill

Debate between Lord Foulkes of Cumnock and Lord Newby

Committee: 3rd sitting (Hansard - continued): House of Lords
Wednesday 28th February 2018 Lords Chamber

[Lord Foulkes of Cumnock]

My Lords, this debate has ranged rather more widely than I had expected, and the noble Baroness has given us a very comprehensive answer, for which I am grateful. I was particularly intrigued by the reference by the noble Lord, Lord Wallace of Saltaire, to George Thomson, who I remember very well. I see that the noble Lord, Lord Steel, is here; he will remember George Thomson, who represented Dundee before he became a Commissioner and was responsible for this major development within the European Community that we are talking about today.

He once told me that he was very excited at being selected as the candidate for the Member of Parliament for Dundee. He was employed by DC Thomson at the time and went to tell his employer that he had been selected as the prospective parliamentary candidate. He thought that his employer would be delighted. Instead, his employer said, “You realise if you’d stayed with us you could have gone on to be the editor of the Beano”. So instead of being editor of the Beano, he went on, thankfully, to do a very good job in the European Community.

[Lord Newby (LD)]

I am sorry to interrupt the noble Lord but as a representative of the sons-in-law of Lord Thomson of Monifieth, I should tell him that he was the editor of the Beano before he went on to a more serious job.

[Lord Foulkes of Cumnock]

How can I contradict a son-in-law? Without my noble friend Lord Liddle being present to advise me, I am not able to do so. I thought that my original story was quite funny; I wish it had been true. To return to the serious matter, because this is a serious matter, George Thomson left us a great legacy.

The noble Baroness has covered a lot of the issues. She has gone two-thirds of the way towards answering the points that I raised. She has given a very detailed and careful outline of the Government’s strategy, for which we are grateful, and has indicated that projects in the pipeline will be supported to the end of the current funding period, but it is beyond that that we are concerned about. We are concerned about continuity. That is something we need to pursue.

The noble Baroness also helped us a little on the UK shared prosperity fund and said that the Government would engage with that issue later this year. That could take us almost to the exit date, which will be a few months beyond that, so we need to be told about that soon. I hope that through a Written Answer or further discussion we might get a clearer indication of the timescale, otherwise, there will be a vacuum and hiatus there.

I will talk with my noble friend Lady Hayter outwith the Committee but we need to look at the Minister’s very comprehensive reply in detail and consider whether it would be appropriate to table an amendment along these lines on Report. I will withdraw my amendment but this is yet another example of the many dozens, if not hundreds, that we are discussing in this Chamber and outwith it where it would be an awful lot better if we just stayed in the European Union. Why are we having to deal with all these difficulties and problems all around the country, and in this case in the poorest areas of the country, when it could be completely unnecessary? In the next year and a bit, we may have the opportunity to give the British people a chance to re-examine whether we should continue to be members of the European Union. That point is not irrelevant to this amendment, but I beg leave to withdraw it.

European Union (Notification of Withdrawal) Bill

Debate between Lord Foulkes of Cumnock and Lord Newby

Report stage (Hansard): House of Lords
Tuesday 7th March 2017 Lords Chamber

[Lord Foulkes of Cumnock (Lab)]

I wonder whether the noble Lord can answer my question in relation to the conduct of the referendum. I was unhappy about the previous referendum because 16 and 17 year-olds were not allowed to vote, EU citizens were not allowed to vote and there was no threshold. In his referendum, which of those three would be included, if any? I would have serious doubts about having a referendum without those three points being taken account of.

[Lord Newby]

My Lords, the noble Lord will recall the attitude that we took when we discussed the previous referendum. We strongly believe that 16 and 17 year-olds should get the vote, not just in referendums but more generally.

Small Businesses: Finance

Debate between Lord Foulkes of Cumnock and Lord Newby

Wednesday 25th February 2015 Lords Chamber

[Lord Newby]

As I explained, gross lending to small businesses was up by 25% last year. That is the figure, my Lords. The noble Lord shakes his head, but that is the figure. Banks have not been as open-handed to small businesses as they were before the crash, partly because at that stage in some cases they were lending irresponsibly and partly because they have had to strengthen their balance sheets—something which the noble Lord has been very keen to encourage.

[Lord Foulkes of Cumnock (Lab)]

Was finance for small businesses discussed at any of the 56 meetings Ministers had with HSBC over the past five years?

[Lord Newby]

Good try, my Lords.

Tax Avoidance and HSBC

Debate between Lord Foulkes of Cumnock and Lord Newby

Monday 23rd February 2015 Lords Chamber

[Lord Newby]

My Lords, there are 10 minutes for everybody, so let me be brief. I agree with my noble friend in her core view. I have not read in any detail what my noble friend Lord Macdonald has said, but HMRC has made it clear that now that the restrictions on the use of the information from France have been lifted, it is looking closely at that new information and will refer cases to the CPS for prosecution as appropriate. I think that bonuses at HSBC are matters for its board and shareholders.

[Lord Foulkes of Cumnock (Lab)]

My Lords, that really was an astonishing and disgraceful Statement. I heard it in the House of Commons, and it was outrageous how the Chancellor tried to portray Labour as the friends of the tax evaders. If that is the case, why is it that £5 million has been given by HSBC to a political party—not the Labour Party but the Tory party? Why is it that there are three Peers who are either members of the board or advisors to HSBC—not Labour Peers but Tory Peers? Perhaps I can remind the Minister that in the July my noble friend Lady Royall and I raised a question about the appointment of the noble Lord, Lord Green of Hurstpierpoint. The noble Lord, Lord Strathclyde, and others pooh-poohed the question and said that there was no need to worry about it. Now we are being told that we did not raise it at the time. I raised it because the noble Lord never turned up at the House, and that is why I dubbed him the Scarlet Pimpernel. He really has to come and face the music about his role as the chair of HSBC.

[Lord Newby]

My Lords, I am sure that the noble Lord, Lord Green, like many other noble Lords, will read the noble Lord’s comments with great interest.

[Lord Newby]

My Lords, the important thing to note is that the problems that we are now looking at—never mind who was in government—arose before the new regulatory regime was in place, before the banking industry itself set up its new standards body, and before there was the kind of scrutiny of what is happening in the banks that there is now. Everyone agrees that there needs to be a change of culture in the banks, including many who are in senior positions in those banks. I agree completely that Parliament has a role to play in calling the banks to account, and I hope that both Houses will continue in it.

[Lord Foulkes of Cumnock]

My Lords—

Barnett Formula

Debate between Lord Foulkes of Cumnock and Lord Newby

Tuesday 10th February 2015 Lords Chamber

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government how much has been allocated to the Scottish Government in Barnett consequentials in the last year.

[Lord Newby (LD)]

My Lords, the Barnett formula was applied in the usual way to changes in departmental spending at both Budget 2014 and Autumn Statement 2014. The Scottish Government received £301 million in extra allocations as a consequence of spending decisions taken by the UK Government.

[Lord Foulkes of Cumnock (Lab)]

My Lords, does the Minister agree that Barnett provides secure funding for the Scottish Government and if they had relied on oil revenues they would not have produced the £7 billion that was in the SNP White Paper, but just over £1 billion, and that an independent Scotland would now be bankrupt? Is it not a good job that we voted no in the referendum?

[Lord Newby]

My Lords, it is always a pleasure to agree with the noble Lord. It is, however, worth underlining the point that he has just made. There would be a £6 billion deficit compared to the figures in the Scottish Government’s November 2013 White Paper in respect of oil revenues, which would mean that for that reason alone the Scottish deficit in 2016-17 would be more than 6% of GDP, one of the biggest in the developed world.

Finance: Fiscal Devolution

Debate between Lord Foulkes of Cumnock and Lord Newby

Wednesday 9th July 2014 Lords Chamber

[Lord Newby]

My Lords, there are obviously strong arguments which would enable cities to raise more funding. Those have been resisted by the Treasury under successive Governments. As they are moving towards drawing up their manifestos, I am sure that all the parties are considering whether they want to change those long-standing practices.

[Lord Foulkes of Cumnock (Lab)]

My Lords, rather than more piecemeal devolution, is the time not now right for a more comprehensive and coherent look at devolution throughout the whole of the United Kingdom, so that we have a sensible system, and that some kind of commission—a constitutional commission or royal commission, under a wise and experienced chairman—should be set up as soon as possible?

[Lord Newby]

My Lords, I was waiting for the last part of that sentence. I am sure that all noble Lords will bear the noble Lord’s expertise in mind, should a commission be established. I think that, once we have the outcome of the Scottish referendum, all parties and all people who are interested in constitutional change in the UK will want to revisit the issue. The exact way we do it is also something that I think all the parties are thinking about as they draw up their manifestos.

Payday Loans: Advertisements

Debate between Lord Foulkes of Cumnock and Lord Newby

Thursday 3rd April 2014 Lords Chamber

[Lord Newby]

My Lords, I do not have any specific response to that, except to say that the ASA is able to investigate any complaints about the effect of ads on particularly vulnerable groups, which potentially would include gamblers. Certainly, if you watch paid-for sport television, you get a very large number of ads for online betting, which I find distasteful—but, as with many things in life, there is an interesting argument to be had about the line between what is distasteful and what should be banned.

[Lord Foulkes of Cumnock (Lab)]

My Lords, it is a pity that the Minister has resorted to statistics to try to explain this away. All it needs is one of these very cleverly devised adverts to put pressure on children or to influence children to put pressure on their parents, who can ill afford to take out these loans. Will the Minister answer the question put by my noble friend Lord Mitchell: when he brings forward his Bill, will the Government give sympathetic consideration to supporting it?

[Lord Newby]

My Lords, when the noble Lord, Lord Mitchell, brings forward his Bill, the Broadcast Committee of Advertising Practice will have expressed a view on these loans. The Government will take very considerable account of what it says in forming their view about the noble Lord’s Bill.

Economy: Growth

Debate between Lord Foulkes of Cumnock and Lord Newby

Tuesday 11th February 2014 Lords Chamber

[Lord Newby]

My Lords, the noble Lord may be right. An independent Scotland would have banking assets equivalent to 1,254% of Scottish GDP—more than Ireland, Iceland and Cyprus when they ran into banking difficulties.

[Lord Foulkes of Cumnock (Lab)]

My Lords, does the Minister recall that Alex Salmond used to be an economist with the RBS? Does that not say everything? Will the Minister confirm that economic growth in Scotland in the third quarter of 2013 was much the same as economic growth in the United Kingdom, which shows that devolution is working, that Scotland is getting the best of both worlds and that we are in fact, to coin a phrase, better together?

[Lord Newby]

My Lords, I agree. For example, it is very interesting, looking at what has been happening to unemployment not just over the past few months but over the past couple of decades, that in the 1990s unemployment in Scotland was slightly higher than it was here. In recent years, and particularly in the past few quarters, it has been slightly lower. It shows that Scotland, while moving broadly in line with the UK, can do better than the rest of the UK, as it has done in a number of respects. It is quite difficult to see how it could replicate that pattern if it were independent.

Pensions

Debate between Lord Foulkes of Cumnock and Lord Newby

Thursday 12th December 2013 Lords Chamber

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government what action they propose to take on the report by the Financial Services Consumer Panel concerning the selling of pensions annuities.

[Lord Newby (LD)]

My Lords, when people have saved up for retirement, the Government agree that they should get the best from their retirement savings. That is why we are already taking action to combat excessive pension charges. It is also why we set up the Open Market Option Review Group, which introduced measures to prompt consumers to shop around for an annuity and secure a better retirement income. The Financial Conduct Authority is also looking, through its thematic reviews, into the important issues that this report raised. The report is a useful contribution to ongoing work in this area.

[Lord Foulkes of Cumnock (Lab)]

My Lords, will the Minister join me in thanking the Daily Telegraph and Daily Mail for exposing this latest example of financial institutions cheating their customers? Will he ensure that the Financial Conduct Authority deals with them firmly, as it did yesterday with RBS and Lloyds? Could he also look at some way of ensuring that the people who are punished are those in the institutions responsible and not the bodies themselves, which pass on the costs to their long-suffering customers?

[Lord Newby]

My Lords, I am not sure that I ever thought I would say this, but I join the noble Lord in thanking those newspapers that have drawn yet another financial problem to more general interest and view. The Financial Conduct Authority has new powers and is already showing that it intends to use them very rigorously. It has powers in respect of individuals as well as institutions, and will use them.

Economy: Women’s Incomes

Debate between Lord Foulkes of Cumnock and Lord Newby

Monday 25th November 2013 Lords Chamber

[Lord Newby]

My Lords, we would like to see—as no doubt the noble Baroness would—a higher proportion of women from those communities being economically active. We are seeing that a much higher proportion of young women in those communities are economically active than their parents were. However, one of the positive things about the rise in the number of women in employment, which I mentioned earlier, is that there is now a higher proportion of women in the labour market than ever before. That is very much to the benefit of women overall.

[Lord Foulkes of Cumnock (Lab)]

My Lords, does the Minister realise that proposals regarding economic policy are to be included in the paper to be produced by the Scottish Government tomorrow? Since the Minister’s noble friend was unable to answer my supplementary question, could he take some advice from the Advocate-General and answer it? A Government can call something a White Paper only if they have the power to implement what is included—and, if the Scottish people were, unfortunately, to vote yes, the Scottish Government’s proposals could be implemented only with the full agreement of the rest of the United Kingdom.

[Lord Newby]

My Lords, perhaps I could refer the noble Lord to the speech made by my noble and learned friend at Aberdeen University last Friday, which very adequately answers his question.

Taxation: Tax Law Enforcement

Debate between Lord Foulkes of Cumnock and Lord Newby

Wednesday 30th October 2013 Lords Chamber

[Lord Newby]

My Lords, I think that that is way beyond my pay grade.

[Lord Foulkes of Cumnock (Lab)]

My Lords, I am not going to continue this attack on Sir John Major because it is disgraceful. With respect, the Minister has been giving us the same answer about extra staff for almost the past three years, yet we have illustration after illustration of evasion. First it was Starbucks, then it was Amazon, then it was Philip Green and Irvine Laidlaw; one after the other has been avoiding tax. Has the Minister not yet come to the conclusion that what is needed is legislation to close the tax loopholes?

[Lord Newby]

My Lords, leaving aside the fact that, sadly, I have not been a Minister for three years, the question of closing tax loopholes and dealing with companies that are international by their nature is an international problem. The level of activity now being undertaken via the OECD is on a scale that we have not seen for a generation. Some 15 work streams are currently under way, looking at different aspects of this problem, with a two-year deadline to resolve them. If it were possible to legislate in one country and deal with all these issues, not only we but the US, Germany, France and other countries that find themselves in the same boat would have done it. You cannot operate against multinationals on a domestic basis alone; it must be done internationally. That is what we are doing, and we are putting huge effort and impetus into that work.

Northern Ireland: Corporation Tax

Debate between Lord Foulkes of Cumnock and Lord Newby

Monday 18th March 2013 Lords Chamber

[Lord Newby]

My Lords, that is something that we will confirm once we have a final decision in Northern Ireland.

[Lord Foulkes of Cumnock]

My Lords, does the Minister agree that any decision in relation to Northern Ireland does not constitute a precedent for any other part of the United Kingdom because Northern Ireland is the only part of the United Kingdom that has a land border with another European Union country?

[Lord Newby]

My Lords, that is the reason why this has become such a big issue in Northern Ireland. The same considerations do not apply elsewhere in the United Kingdom, although I remind the House that the differential between the rate of corporation tax in Northern Ireland and the rate in the Republic of Ireland is now significantly less than it was when this Government came into office.

Business

Debate between Lord Foulkes of Cumnock and Lord Newby

Wednesday 13th February 2013 Lords Chamber

[Lord Foulkes of Cumnock]

My Lords, before we move to the main business of the day, perhaps I may point out that there seems to have been a mistake in the timing of the Urgent Question debate. My understanding was that there would be 10 minutes after the contributions from the Front Benches on both sides. On this occasion that was not the case, and a number of Back-Benchers who wanted to get in were not able to do so. Will the Leader of the House confirm that after the Question repeated by the Front Bench and the reply from our Front Bench, we should then have 10 minutes for Back-Bench questions?

[Lord Newby]

My Lords, I am afraid that the noble Lord is mistaken. The rule is that the Minister repeats the Question and the clock then starts. The 10 minutes will include all questions, including those from the opposition Front Bench.

Air Passenger Duty

Debate between Lord Foulkes of Cumnock and Lord Newby

Monday 28th January 2013 Lords Chamber

[Lord Newby]

Okay, one noble Lord has called for abolition. I am sorry if I exaggerated the opposition but it certainly felt as though a number of noble Lords were calling for the abolition of the tax.

On the Caribbean, there have been strong arguments presented tonight and over the years about the effect of APD there. I am aware of the strength of the arguments because in a former existence I made them myself. In response to these arguments, changes to the structure of APD were considered as part of the 2011 consultation. For a number of reasons, it proved much more difficult to do it than appeared at first sight. One of the main challenges is that if you adopt the pure principle of a distance-based tax, it would be seen— bizarrely, in my view—as a proxy to taxing fuel. That would be illegal under the Chicago Convention on international aviation, so the Government looked at a rather simpler restructuring. However, they found that the only way they could have done it that would have dealt with the disparity of treatment between the US and the Caribbean would have required an increase in the duty for about 90 per cent of passengers, including those flying to Europe and the USA. The Government felt that, in the current economic climate, it would not be fair to ask the majority to pay more to help fund a cut for the minority.

[Lord Foulkes of Cumnock]

I think the Minister has been listening carefully to the debate. He will recall that I gave him a suggestion; my understanding is that it was not considered in the review. It came up very recently from a meeting between the Caribbean Council and Ministers from the Caribbean. I asked the Minister for a very simple pledge to take this new suggestion back now and discuss it with the Chancellor: Bermuda should be designated the capital of the Caribbean for this purpose only. Surely that is the least he can do for the people of the Caribbean, on behalf of whom my noble friend Lord Morris spoke so eloquently.

[Lord Newby]

The noble Lord, Lord Morris, anticipated me two minutes ago and the noble Lord, Lord Foulkes, has anticipated me just now. I was about to say that I had not heard the Caribbean Council’s suggestion of designating Bermuda the capital of the Caribbean. My experience of the Caribbean does not fill me with hope that, when push comes to shove, there would be much agreement to designate anywhere as its capital. I am not sure whether you can designate somewhere as a capital for one purpose but not a capital for every other purpose. However, it is a new suggestion; I will certainly take it back and we will see whether it deals with the problem. My initial thought, not having heard the suggestion before, is that it is probably not quite as simple as that.

The Government recognise the mutual benefit of tourism and trade between the United Kingdom and the Caribbean. We welcome the work of the UK-Caribbean Forum to establish a new and improved strategic partnership to promote prosperity, growth and development within both regions. No doubt this topic can be discussed in that forum.

The noble Lord, Lord Howell, and other noble Lords referred to the devolution of air passenger duty to Northern Ireland. The Finance Act 2012 devolved to the Northern Ireland Assembly the power to set rates on direct long-haul flights leaving from Northern Ireland. The rate on short-haul flights will remain the same as that for the rest of the United Kingdom. In devolving direct long-haul rates to Northern Ireland, the Government responded to the wishes of the Northern Ireland Executive. We also recognised that Northern Ireland is in a unique position within the United Kingdom in that it shares a land border with another EU member state that has a lower rate of aviation tax. Further devolution of air passenger duty to Scotland or Wales is a subject that requires careful continued evaluation before we can be confident of its effects across the UK as a whole.

I return to my initial comment that I thank the noble Lord, Lord Palmer, for securing the debate. The Government want to ensure that aviation and tourism continue to grow to promote economic growth and support jobs across the country more generally. However, we also believe that aviation must bear its fair share of the fiscal burden so that we remain on course to address the record deficit. Air passenger duty makes an essential contribution to the public finances and to this Government’s plans to create a stable platform for growth.