Queen’s Speech
Lord Hunt of Wirral Excerpts(4 years, 6 months ago)
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The Minister of State, Home Office (Baroness Williams of Trafford) (Con)
My Lords, I thank all noble Lords who have taken part in this debate. I apologise to the noble Baroness, Lady Bonham-Carter. I looked with horror as she spoke about the debate that is taking place tomorrow. She is, of course, absolutely entitled to do that but I will not respond to her points today. I also join noble Lords in paying tribute to my noble friend Lord Bourne. Fulsome tributes have been paid to him today. He succeeded me at MHCLG—boy, did he succeed. I was recently at a service to mark National Hate Crime Awareness Week when someone came up to me and asked, a bit put out: “Where is Lord Bourne?” When I said that he was no longer a Minister they were quite disappointed. They waxed lyrical about how wonderful he was and how he will be missed. I will be among others who will miss him.
I will start with my favourite subject, devolution, which was the subject of the first Bill that I brought in as a Minister and which, as my noble friend Lord Heseltine said, is about everything that has been talked about this evening. It is about effective local communities and skills. When I was in local government, and when my noble friend and I went round the country, I found out how important local leadership was in the prospects for devolution. It was no surprise to me that Greater Manchester got the first devolution deal. It knew exactly where it was going and what it needed to achieve. The noble Lord, Lord Shutt, asked what the northern powerhouse means and whether we need legislation for it. To me, the northern powerhouse was all about the Government’s articulation of growing the areas outside London to allow them to play their economic part.
Baroness Williams of Trafford
Exactly—balancing the economy outside London and the south-east. I have the platform and can now unburden. When people say that we need regional rail more than we need HS2, or vice versa, I say that we need it all in the north. It is about time that we started to connect people to jobs more easily. My noble friend Lord Heseltine asks how we can differentiate rural and urban: actually, we all need to access skills and education and bring places of work nearer to us.
Government Debt
Lord Hunt of Wirral Excerpts(5 years ago)
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Lord Hunt of Wirral
To ask Her Majesty’s Government what plans they have to ensure that the level of government debt falls.
The Minister of State, Department for International Development (Lord Bates) (Con)
My Lords, as a result of the Government’s balanced approach we have been able to reduce debt while supporting public services, investing in the economy and infrastructure, and keeping taxes low. Debt peaked in 2016-17 at 85.1% of GDP and, due to the actions of this Government to reduce borrowing and support to the economy, debt fell in 2017-18. It is forecast to fall further, all the way up to the end of the forecast period in 2023-24.
Lord Hunt of Wirral (Con)
What action are Her Majesty’s Government taking to ensure a balanced approach to managing the public finances? Does my noble friend agree that it is vital that, while we prudently reduce both borrowing and debt, we invest in public services and keep taxes low for hard-working people?
Lord Bates
I am very happy to do that, and of course my noble friend will be aware that 32 million people have just enjoyed a tax cut as the tax thresholds were raised. There is a balance; we have seen net borrowing come down from a peak of about 10% in 2010 to under 2%, and overall net debt is beginning to fall after having peaked. However, at the same time, as he rightly says, we have seen half a trillion pounds of investment in infrastructure, and the prioritisation of public services, principally the National Health Service, which has had one of the largest budget increases in its history.
Access to Cash
Lord Hunt of Wirral Excerpts(5 years ago)
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Lord Bates
I am happy to undertake to do that. At the same time as I write the noble Lord, Lord Low, I will write to the noble Lord, Lord Blunkett.
Lord Hunt of Wirral (Con)
My Lords, I declare my interest as a non-executive director of Link. Will the Minister recognise that in the review Natalie Ceeney has set out very clearly the way ahead for Link to work with the regulator in making cash available in line with the recommendations of the Ceeney report? Will he ensure that that is now implemented?
Lord Bates
We are still studying the report, which came out fairly recently and contains a lot of data and material. The Link network went to countries such as Sweden, where the proportion of transactions in cash is now only 10%, and asked what could be learned from that situation, which is where we are going to be in five to 10 years’ time, to ensure that people in this country have protection and choice available to them.
High Street Banks
Lord Hunt of Wirral Excerpts(5 years, 4 months ago)
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Lord Bates
I understand the point about consultation but that was the whole point of Professor Griggs’ review and the new access to banking standard, which is upheld by the Lending Standards Board. We cannot be in the position of asking whether we are going to subsidise five of the six banks to remain open with taxpayers’ money. We have decided to respond by coming up with an arrangement for the Post Office to be the place of choice for people to transact their personal, face-to-face banking needs. I think that that is a better way forward.
Lord Hunt of Wirral (Con)
Will my noble friend the Minister take time in a busy day to read the interim report of Natalie Ceeney into access to cash? I declare an interest as a non-executive director of LINK. There is a vital need, particularly among vulnerable people, to have access to cash.
Lord Bates
My noble friend is absolutely right. The access to cash review by Natalie Ceeney, who is a former member of the Financial Ombudsman Service, will be a critical contribution to our assessment of those factors going forward. I understand that she is due to produce her full review in the spring of next year and we will very much look forward to taking it into account.
Police and Crime Commissioners
Lord Hunt of Wirral Excerpts(5 years, 10 months ago)
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Lord Hunt of Wirral (Con)
My Lords, in declaring my interest as set out in the register, including the interest mentioned by the noble Lord as one of his successors as chair of the Sir Edward Heath Charitable Foundation, perhaps I may say how strongly I agree with every word the noble Lord has just said, and how strongly I congratulate him on securing this opportunity for us to debate his Motion.
My first-hand experience of police and crime commissioners is confined to my dealings with just one PCC, Mr Angus Macpherson of Swindon and Wiltshire. I am concerned about the way in which Mr Macpherson seemed to maintain no distance at all from his chief constable, who was supposedly accountable to him. He seemed to see his role as unquestioningly defending Conifer and the officers responsible for it, and he was seemingly unaware of countless and authoritative concerns that others had expressed—including in this Chamber, on all sides of the House.
Operational independence is vital, but it does not and cannot mean that the police are not to be held to account or that they are somehow above criticism. My major complaint is that, when I occupied the office of chair of the foundation, outside Arundells there was a public appeal for victims—I quote: “victims”—to come forward. If that was not a fishing exercise, I do not know what is. Of course, the option still remains for Ted Heath’s supporters or colleagues to make a formal complaint about the conduct of Conifer. Raking over those coals, though, is not in my view a priority now, however blatant were the shortcomings, almost 50 of which were highlighted in peer reviews by officers from Operation Hydrant. As the noble Lord has just outlined, there are just seven remaining accusations. I strongly believe that not a single one of them would have stood up.
I first knew Sir Edward Heath in 1965, when he came at my invitation to move a motion of censure on the then Labour Government of Harold Wilson, at the University of Bristol, on the very night that Michael Stewart became Foreign Secretary—which announcement was made to the world outside not by No. 10 but by Sir Edward Heath during the course of the debate. I got to know him exceedingly well, particularly when I was chairman of his Young Conservatives. Of course, there are still a great many people alive who knew Ted Heath personally. Some worked with him, some worked for him, and some were his friends. Others did not like him at all. He was not, in fairness, always the most clubbable of men. But what is so striking is that I have not encountered a single person who knew Ted who also believes it was remotely possible that he did any of the things alleged.
A man, a statesman and a servant of his nation who cannot defend himself has lost his good name for no good reason. Our law is not strong when it comes to protecting the reputations of the dead. Reputations take years to build but they can be destroyed in an instant, and we must not let that happen.
Brexit: The Future of Financial Regulation and Supervision (European Union Committee Report)
Lord Hunt of Wirral Excerpts(5 years, 10 months ago)
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The Minister of State, Department for International Development (Lord Bates) (Con)
My Lords, I join other noble Lords in paying tribute to the noble Baroness, Lady Falkner, for this report. I came in, having read the report, thinking that it was an outstanding piece of research and teamwork, that the level of support that had been secured was outstanding and that its conclusions were clear, as were its questions. As the Economic Secretary, John Glen, made clear in his 18-page response to the report on 19 April, it has been extremely helpful. However, when I heard what I will call the varying views of the committee that have been articulated during the course of this debate, I grew in admiration for the noble Baroness and the way in which she had managed to corral these views into such a concise and clear report.
I am also conscious that this is the second report that the sub-committee has produced on this issue. I was delighted that my noble friend Lady Neville-Rolfe was able to take part in this debate, because she responded to the debate on the previous report in February last year. I am not sure whether the analogy should be poacher cum gamekeeper or gamekeeper cum poacher—
Lord Bates
I will not go there, as my noble friend Lord Hunt urges—I always follow his advice.
It has been an extraordinarily good debate. The noble Baroness, Lady Falkner, led us off by looking at the regulatory and supervisory architecture. My noble friend Lord Lindsay then looked at market mutual access and spelled out how it was in the UK’s and EU’s interests that that should continue. The noble Baroness, Lady Liddell, reminded us that the financial services industry extends way beyond the City of London and that Edinburgh is a major centre, as is Leeds. The Chancellor of the Exchequer recently visited both those cities and met people involved in financial services. It also extends into places such as Bristol, Norfolk and Bournemouth. The industry really is a focus of strength for the whole UK.
My noble friend Lord De Mauley pointed out that regulatory challenges can also be opportunities, and he cited developments such as the adoption of the FCA regulatory sandbox. I felt that at points the noble Lord, Lord Liddle, dragged us back to a Second Reading of the European Union (Withdrawal) Bill and I got deeply—no, perhaps I will not say what I felt about that. However, I want to focus on a point on which we do agree, which is the vital importance of the industry, with the £60 billion trade surplus in financial services and the mutual benefit that it brings. The noble Lord, Lord Bruce, raised a very important point about the continuation of existing contracts which many consumers rely on, and I will come back to that later.
My noble friend Lady Neville-Rolfe talked about international co-operation and reminded us that the global architecture extends well beyond the EU. Of course, we can play a major role in the G7, the G20 and the OECD. The noble Lord, Lord Davies, talked about issues such as Solvency II and passporting, which, in his view, had been working particularly well, but his challenges to the report’s conclusions were heard. The noble Lord, Lord Desai, pondered whether rational self-interest would have a determining effect and questioned whether EU negotiators would recognise the importance to the EU of the City of London as a venture. The noble Baroness, Lady Kramer, talked about the potential challenges for the continuation of financial services and regulatory supervision. The noble Lord, Lord Davies of Oldham, concluded by reminding us of the burdens which taking back these regulatory powers will have on Parliament and how that regulation will be undertaken. I will come back to some of the questions that were raised, but it has been an extremely helpful debate.
The UK is home to the world’s pre-eminent global financial and professional services centre, in part because of smart regulation and supervision that have tread a careful line between allowing businesses to flourish, and protecting consumers and financial stability. In the latest iteration of the Z/Yen Global Financial Centres Index, produced in March 2018, London again ranked first. That was not pre but post the referendum and post the triggering of Article 50. No other European city was in the top five. We want to preserve the world-leading position of our regulatory architecture and of our regulators. We are committed to high regulatory standards, and Brexit will never mean ripping up the rule book or a race to the bottom.
To sustain the level of cross-border activity between our firms and Europe’s businesses and consumers, we need a relationship that is robust enough to give confidence to those on both sides. We cannot rely on the EU’s existing equivalence framework, as has been mentioned. It is unilateral, piecemeal and unlikely to preserve and deliver much regulatory comparability over time. We need to agree a more comprehensive and stable bilateral deal that recognises the unique nature of the UK-EU future relationship. Paris and Frankfurt will not be the winners of market fragmentation; the winners will be centres such as New York and Singapore. We are aiming to shape a regime to manage future regulatory change that ensures that, although our rule systems might evolve separately, we deliver fully equivalent regulatory outcomes, maintaining commitments to support open markets and fair competition.
The Chancellor has set out a clear vision for our future relationship with the EU on financial services. This has been well received by the industry, and we are beginning to hear voices within the EU recognise the value of our proposition. Our vision is grounded in mutual recognition of equivalent regulation, with a dialogue on setting regulatory requirements and having supervisory co-operation arrangements that are reciprocal and reliable, and an independent arbitration mechanism to provide durable dispute resolution. Reaching agreement on this does not need to be a challenging objective—our rule books are already aligned and our markets are already deeply interconnected. We continue to ensure that our exit from the EU will be smooth and orderly. We made a big step forward in agreeing the legal text on the implementation period, which will keep market access on existing terms for firms and consumers.
Looking to the future, as the report notes, there are opportunities for the financial services sector to become more outward facing. The UK already has world-leading positions in the markets of the future, including fintech, for which we have developed what we call fintech bridges to other jurisdictions—most recently Australia. A recent report cited the prime centres for fintech around the world as Silicon Valley, Shanghai and the City of London, again underscoring the strength of our position.
We are world leaders in green and sustainable finance, or rupee and renminbi products, and we are committed to strengthening that position further. That also means expanding our bilateral relationships with key partners around the globe, including our economic and financial dialogues with China, India, Brazil, Korea, Hong Kong, Singapore and Japan. There are enormous growth opportunities for the future.
I shall now turn to some of the questions raised during the debate. The noble Baroness, Lady Liddell, and my noble friend Lady Neville-Rolfe referred to international bodies and standards. The Government remain committed to the full, timely and consistent implementation of agreed international standards. The UK is an active member of several international standard-setters, including the International Monetary Fund and the Financial Stability Board. The Government believe that continued participation in these organisations is essential to ensure the consistent adoption of international regulatory standards.
My noble friend Lord Lindsay and the noble Baroness, Lady Liddell, made a point about rule-taking or rule-making. Because of the size of the UK’s financial services market, the complexity of the products traded on it and the consequent risks to our taxpayers, we cannot sign up to accept automatically as yet unknown future rule changes. We must have the ability, if necessary, to deliver an equivalent outcome by different means while protecting UK taxpayers from potentially unacceptable risks. The noble Baroness, Lady Liddell, and my noble friend Lady Neville-Rolfe talked about continued access for skilled workers. We have repeatedly made it clear that we do not regard the referendum result as a vote for the UK to pull up the drawbridge. On the contrary, the UK will remain an open and tolerant country—one that recognises the valuable contribution that migrants have made to our society, especially in the realm of financial services.
The noble Baroness, Lady Falkner, asked about the transition period. We have now reached an agreement on the implementation period. This agreement and the statements made by the Bank of England and the FCA give business confidence about the future arrangements that will apply immediately after the UK’s exit.
Furthermore, our regulators have announced that they are prepared to act to enable firms accessing the UK from the EU to continue to operate in the UK without having to apply for UK authorisations for the duration of the implementation period. But we cannot provide full reassurance to firms on our own; we need a bilateral solution with the EU to resolve hugely important issues such as continuity of contracts.
The noble Lord, Lord Bruce, raised particular points on contracts. The Financial Policy Committee estimates that 10 million UK policyholders and 38 million EEA policyholders could be affected by these changes. There is a shared interest for both the UK and the EU in ensuring that we avoid outcomes that impose unnecessary costs and disruption on individuals and businesses. That is why we are focused on agreeing a deep and special future partnership with the EU. But of course, as a responsible Government, we continue to plan for all scenarios. It is vital that we work with our EU partners to put technical arrangements in place to avoid market disruption. Furthermore, the Treasury announced on 20 December 2017 that it would legislate if necessary to ensure that contractual obligations of EU firms with UK-based customers, such as those in insurance contracts, can continue to be met.
The noble Baroness, Lady Kramer, questioned whether it was unrealistic to include financial services in a free trade agreement. All the EU’s recent free trade agreements make provision for financial services, from CETA to Japan, and the need for a close relationship is even more important for two markets as intertwined as ours. In the TTIP negotiations, the EU even pitched a relationship based on mutual recognition of regulations and a dialogue on aligning future regulation.
Financial services firms across the UK have confidence that the Government are committed to leaving the EU in a way that underpins prosperity and avoids unnecessary disruption and dangerous cliff edges for businesses across the UK. We are making significant progress, and this has been well received by the industry. Since December we have reached agreement with the EU on the implementation period. We have agreed a technical dialogue on cliff-edge risks, to be led by the Bank of England and the European Central Bank, and the Chancellor has set out a clear vision for our future relationship with the EU on financial services. These measures have been well received by the industry in the UK. We continue to work closely with businesses located throughout the United Kingdom to ensure that they are prepared for a smooth and orderly withdrawal from the EU. We will continue to do that and remain grateful for the quality and contribution of this report to that effort.
Health Professionals: EEA and Non-EEA Citizens
Lord Hunt of Wirral Excerpts(12 years, 7 months ago)
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Lord Hunt of Wirral
My Lords, I declare an interest as a practising solicitor and partner for more than 40 years in the international commercial law firm Beachcroft. This debate gives me a wonderful opportunity, first, to thank my noble friend Lord Bridgeman for having introduced such an important subject, and also to support my chairman on Sub-Committee G and say to my noble friend Lady Young of Hornsey that I warmly applaud everything she has said. I am delighted that our overall chairman, the noble Lord, Lord Roper, is listening to this, because I think that everyone agrees that this directive needs modernising and urgently so. I agree with many of the points already made. There is, sadly, insufficient confidence among patients, professionals and regulators in the current framework. I think that everyone agrees with that, so what are we going to do?
There are two areas of concern upon which I agree with my noble friend Lady Young of Hornsey. The first is the diversity of regulatory systems and approaches to registration right across the European Union. The second is the variation in the competencies of individuals, even where they hold the requisite qualification. I agree with the noble Lord, Lord Kakkar, that right at the heart of all this is patient safety. In the limited time I have, I want to make two points. First, I am concerned about the lack of what is called continuous professional development. There must, surely, be a CPD requirement. I agree with the Nursing and Midwifery Council that the idea that we have automatically to register all EU nurses and midwives who meet EU minimum requirements, even those who may not have practised for 20 years, makes it sound as though there is something fundamentally wrong. We need to get this right. Secondly, as I complete six years as chairman of the English Speaking Union, I have to refer to communication skills. I do so by quoting from the Guardian. An article in the Guardian recently said:
“As Good Medical Practice makes clear, communication skills are fundamental to a doctor’s work and the success of many doctor-patient relationships is often determined by the doctor’s ability to communicate effectively with patients, particularly when obtaining consent or if something goes wrong”.
I am very grateful to the Medical Defence Union for making me aware of the statistics. Its journal of June 2011 revealed that around 30 per cent of complaints notified to the MDU by its GP members involved allegations of poor communication. This is such an important subject, and it is about time that we started to make sure we get it right across the European Union.