Financial Services Bill

Lord Grocott Excerpts

Monday 18th June 2012 Lords Chamber

[Baroness Royall of Blaisdon]

My Lords, we have before us a very important matter. As the noble Lord, Lord Hamilton, has said, how we regulate our financial services and the financial services sector is vital to economic and financial stability. What our banks do and how they do it is important for the prospects for growth and employment in this country.

We on these Benches had not seen the terms of these Motions before today and we certainly had not agreed to them in the usual channels. I had a private meeting with the Leader of the House on Wednesday morning at which we discussed this matter and I told him in all honesty that I could not agree to the terms of the Motion, that I needed to have further consultations and discussions with my colleagues and that I would come back to him and the usual channels in due course. That I did first thing on Thursday morning, since when we have heard nothing about the Motion before us today. As for the Opposition’s role on this Bill within the usual channels, I wrote to the Leader of the House this morning, once we had seen the terms of the Motion before us. I would be happy to provide noble Lords with a copy of that letter.

My concern, much more than accusations from the Leader and the ins-and-outs of the usual channels, is what Members of this House want. When the Government tried to put the whole of the Bill in Grand Committee a week ago today I thought that the statements made by Members from across the whole of this House made clear what the majority of them wanted. At a very late hour, during that debate on the Floor of this Chamber, Members made it abundantly clear that they wanted the whole of the Bill to be considered by a Committee of the whole House. What Members of the House were telling the Government was clear.

Last Tuesday I had discussions with the Government about splitting the Bill and taking some parts on the Floor of the House and some in Grand Committee. I could see some merit in that approach, which is why we were prepared to consider it constructively in discussions within the usual channels. Yes we discussed it, but no we did not agree on it—precisely because I had to have discussions with my colleagues on the Benches behind me, which is the right and proper thing to do. In any case, we would not have agreed to the split that the Government now propose. Neither would we have agreed to only three days in a Committee of the whole House. We do not think that that split works. We also think that it was wrong not to include Part 4, on the mechanisms to deal with current issues, for consideration by a Committee of the whole House.

This House is self-regulating and on matters such as this it is for this House, and this House alone, to decide what it wishes to do. From our soundings, most Members on the Benches behind me want the Bill to be considered by a Committee of the whole House, which is what I believe many Members from all across the House want to see. That is precisely what the amendment in the name of the noble Lord, Lord Hamilton of Epsom, proposes.

I therefore look forward to this House, not the Government, deciding what it wants to do. From these Benches, we do not believe that the Government’s proposal is the right approach. We believe that the House should reject it and accept the amendment proposed by the noble Lord, Lord Hamilton. I hope that the Government will listen to the House when it makes its decision today.

[Lord Grocott]

My Lords, in the light of the assurances made by the Leader of the House on the Motion, I am genuinely puzzled as to why it is being brought forward. He has told us that it has nothing whatever to do with the decks being cleared for a House of Lords Bill. If that is the case, I simply do not know why the Government are so anxious to put preferably the whole of the Bill and at worst a significant part of the Bill into Grand Committee. I remind the Leader and the House that it is a pretty rare procedure in this House—less so in the other House—to split Bills between Grand Committee and the Floor of the House. Frankly, it is done for the best reasons, as I have said on occasions in the past, when the Government are under tremendous pressure of time.

Believe it or not, I have some sympathy with the Government when they claim that they are under tremendous time constraints. However, this simply will not wash in the current Session, when we have the smallest number of Bills and the lightest legislative programme of any Session in recent political history—certainly lighter than at any stage for the last 20 years; I have not gone back any further. There are, I believe, some 15 Bills this Session compared with an average of 30 Bills in a normal 12-month Session, so I cannot accept that there is any tremendous pressure on time for the Government, particularly when we finished a day or two early before the Spring Jubilee Recess, which was announced at the last minute. We even finished rather early before Prorogation of the last Session of Parliament, so the Government have cried wolf somewhat on the matter of time and without real justification.

As for the Leader of the House persuading his Back-Benchers, I imagine by saying, “Gosh, if we do not get this Motion through, it will be late night after late night”, I can only say that life gets tough at times. However, I cannot accept that argument, given that the Government are making all sorts of random decisions about having longer recesses than normal and not sitting when the House of Commons is sitting, which again is not normally the case. My argument is therefore really one of bafflement about the pressure on the Government’s time and, frankly, the Government not being able to accept that it means endless late-night sittings.

Lastly, I hope that the Leader of the House will at least acknowledge that it is not a very satisfactory way to treat the House to introduce this Motion on Friday night. I knew absolutely nothing about this Motion going down on the Order Paper until 10 o’clock this morning, like everyone else in the House—perhaps apart from some on the government Benches, I dare say. Anyone who wanted to put down an amendment had no option other than to put down a manuscript amendment, as the noble Lord, Lord Hamilton, did—and I am very pleased that he did. Are we going to have to face this sort of government management of business in the future? Not knowing even a day before what could be a very important decision for the House to make really is a very unsatisfactory way to manage government business.

I appeal to the Leader of the House to listen to what I believe is a very strong view in the House. If he was desperate to put this Motion down, can he please explain the time pressures on him and why it had to go down today? What was wrong with tomorrow? I do not want to sound Machiavellian and suspicious, but the slight feeling is that perhaps the Motion went down on Friday and various people were telephoned over the weekend to the effect, “Please come along and support the Government so that you do not have to sit late at night, night after night”. I do not think that is a very credible argument, so I hope that the Leader of the House will give a satisfactory answer to those questions. If he cannot, he really should withdraw this Motion.

Business

Lord Grocott Excerpts

Tuesday 29th May 2012 Lords Chamber

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, on the latter part I think the noble Baroness will find that a Bill will be published soon on this matter. On the first point, which is significant, she said, quite rightly, that the Ministerial Code says that important and significant announcements should be made to Parliament first. The issue on the pasty tax is of course very good news; on the caravan tax, it is also very good news to those who live in and own static caravans. I do not think that it is the most significant or important decision that this Government have ever made. I suspect, although I do not know for certain, that the Treasury felt this was not the most significant announcement to make and therefore did not inform Parliament by way of an Oral Statement.

[Lord Grocott]

On behalf of this House, will the Leader of the House undertake to explain to his colleagues in the House of Commons that the fact that they are not sitting does not mean that Parliament is not sitting? In passing, will he also let us know why this Government seem persistently to revert to a situation where one House is sitting and the other is not? The previous Administration, if I may say so, made determined efforts to work as a bicameral parliament, with both Houses sitting at the same time. The Leader of the House can find the records for this.

Even if the noble Lord is trying to tell us that somehow this business of pasty taxes and caravan taxes is trivial; and even if, being generous to the Chancellor, it was an oversight on his part that the House of Lords is sitting but that the House of Commons is not; and even if the Chancellor had a Eureka moment between the House of Commons rising last Thursday and midday yesterday, at the very least the Government could have righted the wrong by making a proper Statement to this House. Perhaps the Treasury Minister, who is in his place, could do it for us. Above all, the Government need to understand that when this House is sitting, part of Parliament is sitting and they are answerable to us.

[Lord Kennedy of Southwark]

My Lords—

Queen’s Speech

Lord Grocott Excerpts

Thursday 10th May 2012 Lords Chamber

[Lord Strathclyde]

My Lords, we have not taken a final view on the Joint Committee’s report and proposals. We are working on that now. I do not really see the case for a referendum any more than the Labour Party did in 1999 or when it kicked out the Law Lords or for most of the other constitutional changes that it made, but more of that in a moment.

[Lord Grocott]

The Leader seems to be making great play with his accusation that the Labour Party is not united on this issue and that we are therefore responsible should the Bill fail. Can I take from that that he is confident in his defence of his own position that there is complete unity on the Conservative Benches?

[Lord Strathclyde]

My Lords, the noble Lord forgets that he and I have been debating this issue for very many years, I rather longer than him, and my position has been utterly simple and consistent, unlike the Labour Party’s. I have never believed that there was a consensus within the Conservative Party. There has not been one in the past 120 years, and there is not going to be one over the course of the next 10 weeks. That is precisely the point. What I want the Labour Party to do in a few moments is to tell us on what basis it will support this reform. I hope that the noble Lord, Lord Hunt, will do so.

Arrangement of Business

Lord Grocott Excerpts

Thursday 26th April 2012 Lords Chamber

[Lord Strathclyde]

My Lords, I have tried to say, first, that it is entirely well precedented to have 60 speakers in one day. Secondly, it is likely that we will prorogue on Tuesday, subject to the progress of business, although we will not be able to make an announcement on that until we have completed the passage of the Sunday Trading (London Olympic Games and Paralympic Games) Bill.

[Lord Grocott]

I warmly welcome the Leader of the House’s comment that we should not waste too much time in this House debating subjects that are of no interest whatever to people outside it. I put it to him that the solution is in his and the Government’s hands—that is, to drop the Bill.

[Lord Strathclyde]

My Lords, it is a kind and generous offer. I have already, and rightly, been kind and generous in offering as much time as I have. Of course, if a Bill is announced in the Queen’s Speech, it will be just the beginning of many debates over the many hours and days that we shall have, not just between now and the Summer Recess but possibly well after.

House of Lords Reform

Lord Grocott Excerpts

Monday 23rd April 2012 Lords Chamber

[Lord Grocott]

My Lords, in welcoming as I certainly do the fact that the usual channels have set aside a day for this report, I ask for one further service to the House from the Leader of the House. He has already referred to the fact that there are actually two reports. There is an alternative view in an alternative report signed by 12 of the 25 members of the committee. If my maths is correct that means that if, you exclude the chairman, that is half of the committee—in my personal opinion, the best half of the committee. Can the Leader of the House ensure that the alternative report, as well as the full report, is made available in the Printed Paper Office to all Members? I do not think that facility is available at present.

[Lord Hughes of Woodside]

Can the Leader of the House confirm that the House is to prorogue on Monday?

Trusts (Capital and Income) Bill [HL]

Lord Grocott Excerpts

Wednesday 28th March 2012 Lords Chamber

[Lord Richard]

My Lords, the question of a debate is nothing to do with me, although I have views about when it should take place. As to the question asked by the noble Lord, Lord Cormack, no copies of the report will be distributed before 23 April.

[Lord Grocott]

I press a question that I should have thought was the most reasonable and fair question that could ever be put to a Leader who is answerable to the whole House and not just for the Government. The debate must surely take place before the Queen’s Speech. I cannot understand why the Deputy Leader seems to think it is quite out of order. This House of Lords, faced with a Bill and a report on a Bill that is essentially about the abolition of this institution, is unable even to discuss it before it is finalised. The noble Lord, Lord McNally, has stronger views on this than the Leader. Perhaps he can answer for himself rather than simply parroting Mr Clegg’s Bill to the House. I cannot think of any other institution—a university, a factory or a school—where, if it were being closed, the people who work day in, day out in that organisation would be told by the management, “Sorry folks, you can’t discuss it”.

[Lord Strathclyde]

My Lords, I think that a number of the matters that were raised are not matters for me but for the committee. The noble Lord, Lord Richard, has explained what he is doing and has answered my noble friend Lord Cormack. As for my noble friend Lord Forsyth, I heard the same BBC report, but I assumed that the BBC had read the White Paper and the draft Bill in which it is suggested as one of the options that there should be 12 bishops. They were published last July, so the BBC has taken a bit of time to catch up. As far as I am aware, there is no collusion between the Government, civil servants and the committee, which is why I dare say that I was surprised that the date of publication would not be until 23 April.

Housing (Scotland) Act 2010 (Consequential Provisions and Modifications) Order 2012

Lord Grocott Excerpts

Thursday 2nd February 2012 Lords Chamber

[Lord Newton of Braintree]

My Lords, I do not know whether this is in order, but if it is I would like to do it. My noble friend should know that concern about this matter is not confined to the other side of the House. I also think that, notwithstanding what has just been said or what the previous Government may or may not have done in 2006, this raises real questions about the relationship in practice as it has existed over many years between the two Houses of Parliament. I think that we are entitled to an opportunity to hear a Statement and ask questions about just where that relationship is now going.

[Lord Grocott]

My Lords, I am prompted to stand because of the reference to the Cunningham committee on conventions. I simply put this serious question to the Leader of the House. I recognise the great difficulty at times—which was expressed in the length of his answer—in interpreting financial privilege, and the difficulty that he has in convincing Members of the House, including Members on his own side about if and when it should be applied. But can the noble Lord imagine himself telling 300 elected senators that matters such as benefits received by cancer patients or for disabled children were none of their business whatever and if any of their constituents raised any of those issues with them, as constituents inevitably would, they would have to explain that there was nothing they could sensibly do because it was not within their powers?

His position in trying to justify and hold that line would be quite impossible. Clause 2 of the draft Bill as it stands, which still insists that there will be no change in the conventions between the two Houses in the event of an elected House, is absolute nonsense. I therefore just put it to him as I did in perhaps less impassioned terms yesterday, that this is really an issue that the committee under the chairmanship of my noble friend Lord Richard must examine before it reports and advises the two Houses of Parliament.

[Lord Lawson of Blaby]

My Lords, I support very strongly my noble friend Lord Newton's point. While the House of Commons is perfectly entitled to claim privilege, it is not compelled to do so. The constitution of this country operates by conventions. It is one of the conventions of the constitution that this is evoked very sparingly and on rare occasions. For it to be invoked promiscuously is completely contrary to the conventions of the constitution. This raises serious issues and the House of Commons would be wise to think again.

Health and Social Care Bill

Lord Grocott Excerpts

Wednesday 1st February 2012 Lords Chamber

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, I thank the noble Lord for his kind invitation for some procedural advice. We will be dealing with the Welfare Reform Bill when it comes back from another place. I should say that matters for privilege are not a matter for the Government but a matter for the House of Commons and the Speaker of the House of Commons on advice from his clerks. The position of privilege has of course been jealously guarded by the House of Commons since 1671. It is well precedented and there is nothing unusual, although the second Chamber might always think that the Commons using financial privilege is a little unfair.

We will get to that Bill in due course. I cannot comment on the Health and Social Care Bill, which is of course the subject of the Motion before us now, as to what the Government’s attitude will be on defeats. But, as I said earlier, there is nothing unusual about financial privilege being prayed in aid. Since there are many former Members of another place present in this House I am sure that they will readily understand.

[Lord Grocott]

My Lords, the Leader of the House has given us a proper and guarded answer to quite a difficult question. However, does he not agree that this encapsulates the kind of problem which needs to be resolved before we have a directly elected second Chamber? It goes to the heart of one of the issues that has been accepted as the norm by both Houses for many decades but which would undoubtedly be challenged time and again in the event of a directly elected House. I do not expect the noble Lord to give an immediate answer now—he will give a guarded response—but can I try to be helpful and suggest that this is the kind of issue which the committee of my noble friend Lord Richard should look at, and that that may involve an extension of the period of time the committee needs to consider it? But it is clearly issues like this—alongside, in relation to an Oral Question taken earlier, issues like the impact of a referendum in Scotland—which need to be considered by the Joint Committee before we proceed any further.

[Lord Campbell-Savours]

My Lords, before the House approves the Motion, perhaps I may ask the noble Earl, Lord Howe, a question about the risk register appeal, because we now have some dates that change the debate. I understand that the Report stage is to begin on 8 February and that it is expected to complete by somewhere around the middle of February.

House of Lords: Reform

Lord Grocott Excerpts

Tuesday 24th January 2012 Lords Chamber

Asked By

[Lord Grocott]

To ask Her Majesty’s Government what is their latest estimate of the cost of running a reformed House of Lords in the first transitional year of its operation.

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, the costs of a reformed House will depend on a number of variables. In particular, both the net cost and total cost of salaries and allowances will depend on the transitional arrangements and the number of Members. We intend to consider the views of the Joint Committee before finalising our proposals for the reform of this House.

[Lord Grocott]

With respect to the Leader, that is not the most satisfying response I have had to a Question. I find it particularly odd that we have no figures when Governments of all persuasions manage to tell us how much an aircraft carrier will cost but cannot workout what 300 senators will cost. It is particularly unsatisfactory because the Deputy Prime Minister has already announced to the country that his flagship Bill in the next Session, announced ahead of the Queen’s Speech, will be a Lords reform Bill. He has apparently done this without having the faintest idea of what his project will cost. I hope that I might therefore ask the Leader, on behalf of the House, to speak to the Deputy Prime Minister and ask him please to give us the detailed costings with all those variables, which he must have. If he does not give us an answer, the suspicion will be that he knows it will cost a lot more than the present House and he is simply too embarrassed to tell us.

[Lord Strathclyde]

I am sorry if I disappointed the noble Lord, Lord Grocott. It may have been in his estimation an unsatisfactory reply, but that does not stop it being true. The fact is that the Government have not made a final decision on the arrangements for the House, particularly on the transitional arrangements or the size of the House. There is a process of pre-legislative scrutiny continuing under the excellent chairmanship of the noble Lord, Lord Richard, and until that process is over we will not be able to come up with these figures. However, as is perfectly normal, if a Bill is published after the Queen’s Speech in the next Session of Parliament, it will include a financial memorandum with a detailed breakdown of the costs of a new House.

House of Lords: Reform

Lord Grocott Excerpts

Wednesday 21st December 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I really do not think that that is the way to impress either the Prime Minister or his Deputy.

[Lord Grocott]

My Lords, what in the estimation of the noble Lord the Leader of the House adds greater value to our political system: the House of Lords in its present form or the Deputy Prime Minister?

[Lord Strathclyde]

My Lords, both.