Private Low-carbon Investment: Green Finance Institute Report

Lord Kirkhope of Harrogate Excerpts

Monday 9th December 2024 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, that is an interesting question. Clearly, one issue about taking forward such a scheme is that one does not want to make it difficult for people to sell their homes. Again, I suggest that evidence from the US shows that, although the intention was for the charge to stay with the property, when it came to individuals, many sellers wiped off the charge to make the sale realisable. We need to keep a careful eye on ensuring that if we introduce such a scheme we do not have a negative impact on the housing market in the way the noble Lord has suggested.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I have asked several Questions recently in connection with solar panels, particularly solar farms, which occupy good agricultural land in this country. Surely the Government can do more to encourage the installation of solar panels, both on domestic properties and, more particularly, on industrial properties, where there are large roof spaces available for solar panels. Would that not be a much better idea?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I very much take the noble Lord’s suggestions. We have seen a big expansion in solar; we could see more. I agree with him about industrial sites, but we also need ground-based solar, and the fact is that, even if we achieved all our ambitions around solar, it would take a very small percentage of agricultural land to provide it.

Product Regulation and Metrology Bill [HL]

Lord Kirkhope of Harrogate Excerpts

Committee stage
Wednesday 20th November 2024 Grand Committee

Sixthly, and finally, it would be enormously helpful to business to understand how the selection process will work in terms of deciding whether we should align with EU and CE, and to be given some examples of how this would operate and the decision mechanism that one goes through. At the moment, everybody is slightly in the dark about how it is going to operate.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I rise with no emotion in my voice—because, as noble Lords will appreciate, to be a Government Whip under Margaret Thatcher and John Major one had to leave emotion aside—to support Amendments 17 and 127, which bear my name. In doing so, I first want to speak to Amendments 6, 9, 15, 36, 37, 39 and 42. Obviously, I am against those amendments because they would fundamentally alter the purpose and practical operation of the Bill. If the aim of these amendments is to damage British businesses and our competitiveness on the world stage, noble Lords promoting them should say so. They should also be open with this Committee. If these amendments are simply a product of opposition to the EU or anything associated with the word “Europe”, they should make that absolutely clear.

This raises a critical question: who benefits from this approach? It is not British businesses. Our industries require clarity, predictability and coherence to thrive in competitive global markets. These amendments risk creating a fragmented system where businesses face the burden of navigating multiple and potentially conflicting regulatory frameworks. The UK has a proud history of robust safety and environmental protections. These amendments focus on what are termed “foreign laws”, without any clear guiding principle, and risk creating uncertainty about the quality and safety of products in the UK market. The outcome would be confusion for manufacturers, exporters and regulators alike. These amendments also prohibit the use of some dynamic alignment, a valuable tool for ensuring that our regulations remain relevant and competitive in an ever-evolving global market.

The European Union remains our largest trading partner. Its product regulations set a widely recognised global benchmark. Dynamic alignment allows us to align with the EU when it is in our interest to do so, ensuring that our businesses can access those markets while reducing additional costs or barriers. Denying this flexibility would leave the UK with an outdated and rigid regulatory framework to the detriment of businesses, workers and consumers alike. This introduces a potential free-for-all of standards with little clarity on how decisions would be made or who would be consulted. It is not the framework we need to build confidence in our regulatory system at home or abroad. These amendments represent a step backwards. They prioritise an abstract notion of flexibility over the real-world needs of businesses, consumers and our economy. They threaten to create a chaotic, fragmented regulatory environment that would disadvantage British industry and weaken our position in global trade.

I support the amendments I referred to that bear my name. I believe they offer a practical and balanced approach to regulating products in the United Kingdom. They would provide clarity for businesses by establishing alignment with EU product standards as the default position while, of course, maintaining the flexibility to diverge where clear benefits can be demonstrated. The EU remains our largest trading partner, as I have said, and its regulatory standards often set the tone for international markets. Aligning with those standards simplifies trade not only within Europe but globally; many third countries recognise those rules, and British businesses benefit from this de facto international benchmark. Diverging from EU standards risks isolating our industries, as I have said, and placing UK businesses at a competitive disadvantage.

The financial case for these amendments is equally clear. Without regulatory alignment, businesses face the double burden of not only having to navigate two distinct sets of standards but it not being bureaucratic. It is expensive: the Government’s impact assessment has shown that duplicating conformity assessments alone could cost businesses up to £1.6 billion over the next decade. There are many small and medium-sized enterprises that we should be particularly concerned about. These costs are insurmountable and may even deter them from exporting altogether. Our amendments would mitigate those risks by creating a framework of consistency and certainty.

I welcome the decision by the previous Government— my Government—to extend the recognition of CE marking indefinitely. This amendment would build on that precedent, turning an ad hoc decision into clear, predictable policy.

It has already been referred to but I draw your Lordships’ attention to the situation in Northern Ireland, where alignment with EU product standards is already a reality under the Windsor Framework. This approach would complement the Windsor Framework, ensuring that businesses operating across Great Britain and Northern Ireland have a consistent regulatory environment; reducing friction and confusion; and avoiding separate rules governing different parts of our country. I am sure noble Lords agree that that is desirable.

Our amendments are pro-business, pro-trade and pro-consumer. They reflect the realities of our interconnected world and would ensure that the UK remains an attractive place to invest, trade and innovate.

[Lord Browne of Ladyton (Lab)]

My Lords, it is a pleasure to follow the noble Lord, Lord Kirkhope. Tempted as I am to follow his lead and comment on some of the other amendments in this group—other than the ones I put my name to, that is—I shall resist that temptation. My intention is to speak to Amendment 17 only and, even then, in a restricted way.

Before I do so, I join others in congratulating the noble Lord, Lord Sharpe, on his new appointment. He and I have debated consistently and for a period a number of issues; I will miss those opportunities because it is unlikely that I will be back in this space, in policy terms, in future.

I do not intend to rehearse in any detail the arguments that have already been made. I just want to emphasise why this amendment is squarely consonant with the aims of this Bill and will increase our agility in providing British businesses with a greater degree of certainty. As my noble friend the Minister outlined at Second Reading, the Bill aims to underpin the UK’s position at the forefront of international trade and enable the recognition of EU product requirements where it is in the UK’s interests to do so. It is precisely in that spirit that I added my name to Amendment 17; in the short time I will detain the Committee for, I shall attempt to explain why I believe that this provision will smooth our path to accomplishing these goals. Perhaps most importantly, the Bill in general—and Amendment 17 in particular—aims to move beyond the wrangling consequent upon Brexit and to provide our businesses and industrial sector with the certainty they need and crave.

I have had occasion in other contexts to make the case that regulatory certainty does not diminish our economic strength but is a prerequisite for those businesses on which our economic strength depends. The certainty that Amendment 17 would provide will not inhibit economic animal spirits but will allow businesses to plan and co-ordinate their commercial activity with the same confidence that their competitors in the EU and elsewhere currently enjoy. It is for that reason that the 50,000 businesses represented by the British Chambers of Commerce, and those businesses belonging to the Engineering and Machinery Alliance, support the policy of dynamic alignment, which would be instituted by the adoption of this amendment. We have tried the inverse of this approach and ought to have learned the lessons.

The brave new world of a UK-only system for the regulation of goods and products was widely disregarded by domestic businesses, who overwhelmingly chose to continue to conform with the CE mark because it allowed them access to an exponentially larger market. Indeed, the previous Government’s own regulatory impact assessment in this area showed that some overseas suppliers stated their intention to limit product supply to GB if CE was no longer recognised. Overall, the then Government’s best estimate was that around 18,500 UK manufacturers were involved in affected industries and that the average annual value of all manufactured goods imported into the UK subject to UKCA or CE requirements was £110 billion, with around half of these imports from the EU. In 2019, products that were subject to UK or CE requirements represented around a quarter of all UK-imported goods. As we have heard, the previous Government’s own impact assessments of duplicative conformity and labour time, to which the noble Lord, Lord Kirkwood, drew our attention, estimated total costs of up to £1.6 billion over the next decade. As your Lordships’ Committee is aware, in May 2024, after repeatedly extending the deadline to transition to the UKCA, the UK Government admitted defeat and indefinitely extended the recognition of CE goods in GB markets.

As I said at Second Reading, I have lost track of the number of Conservative Ministers I have seen in my 27 years in Parliament announcing their determination to kindle a bonfire of regulations, to take an axe to red tape, or some similarly strenuous deregulation measure. If that really is their desire, there are few things better calculated than this amendment to obviate the need for business to undertake rigorous conformity assessments and, consequently, smooth the path for frictionless trade. As such, this amendment preserves the intentions of the Bill to update our regulations according to a calculus of national self-interest, giving our businesses regulatory certainty while still allowing us to diverge from EU regulations when it is to our advantage.

At the risk of repeating an element of my remarks from Second Reading, we have seen a parallel scenario emerge in respect of our chemical regulations. The last Government decided to leave REACH, the EU’s body dictating the registration, evaluation, authorisation and restriction of chemicals regulations, to set up a parallel organisation. Since then, we have not adopted a single registered restriction on a harmful substance, compared with 10 new protections offered by EU regulation, including on harmful microplastics deliberately added to products. While REACH has regulated PFAS in the EU, not a single river or water body in England is in good chemical health. Since we left REACH, the EU has initiated 23 risk assessments related to harmful substances, while we have initiated just three. It may be that this is a function of a more vibrant, freebooting approach, or that we have superior data or a more effective methodology, but I fear it may just be that our duplicate body has simply proven less effective, which in turn imperils the safety of people in this country.

Surplus Carbon Emissions

Lord Kirkhope of Harrogate Excerpts

Wednesday 27th March 2024 Lords Chamber

[Lord Callanan (Con)]

I have regular meetings with the Scottish Government, including my counterpart, who is from the Green Party—which makes for interesting discussions, as the House can imagine. The noble Lord is, of course, absolutely right: nuclear power is an essential component of power, both in Scotland and across the rest of the United Kingdom. We will certainly advise the Scottish Government of that. However, if they are crazy enough to dispense of their nuclear power, then their friends in the rest of the UK will be very happy to help out the people of Scotland.

[Lord Kirkhope of Harrogate (Con)]

My Lords, the Government are to be congratulated on achieving these targets, but would my noble friend not agree that we need to do much more with our international relationships to make sure that we alone are not forging ahead when others are failing to do so?

[Lord Callanan (Con)]

My noble friend makes a good point. Of course, the international diplomacy element of this is important. The UK alone is responsible for about 1% of worldwide emissions, so clearly we will not make a difference on our own. But as a leading industrialised nation, it is important that we set an example. We liaise extensively with other Governments internationally.

Limiting Global Temperature Increase

Lord Kirkhope of Harrogate Excerpts

Wednesday 13th December 2023 Lords Chamber

[Baroness Fox of Buckley (Non-Afl)]

My Lords—

[Lord Kirkhope of Harrogate (Con)]

My Lords—

[The Earl of Courtown (Con)]

My Lords, it is the turn of the noble Baroness, Lady Fox.

Retained EU Law (Revocation and Reform) Bill

Lord Kirkhope of Harrogate Excerpts

Committee stage
Monday 6th March 2023 Lords Chamber

I believe that these are important amendments. The Government need to explain to us what the legal consequences will be and to seek, if they can, to reassure us that there is not going to be a legal mess which somebody—the courts, lawyers and all of us—will have to try to sort out. In their enthusiasm for the provisions of the Bill the Government seem to have cast aside, as we have said constantly in the four days of proceedings, the principles of good governance, good policy-making, consultation and reasoned analysis. That is what these amendments call for.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I have not contributed at all in this Committee and I am going to say only a very few words, which I hope I can keep as simple as possible. I very much support Amendment 69A here, because I think it is particularly relevant. I hope it is of help to my noble friend the Minister, who last week dismissed out of hand Amendment 44, to which I had added my name. I hope he will understand that I am trying to be helpful in supporting this. With the legal uncertainty that we seem to have here, it is terribly important that the Government, and indeed Ministers, protect themselves in some way.

The suggestion last week was that we should have a commission set up for the purposes of looking at these proposals and at what effect they might have, and move them to parliamentary scrutiny in the appropriate manner. Now we have a proposal in subsection 2 of the proposed new clause introduced by Amendment 69A that would make it a condition that

“a Minister of the Crown has asked the Law Commission”,

as it is presently constituted,

“to report on the effect of … this Act on legal certainty, and the clarity and predictability of the law.”

I am sure I do not need to remind my noble friend of the importance of certainty, and how important it is in the law to have that. We do not have so many comparisons here. I use the term “void for uncertainty” in relation to legislation. For instance, in the United States, all legislation that is “void for vagueness”, as is the term, cannot proceed. In the European Union, it is quite clear that there has to be clear certainty in the imposition of laws on the people who have to obey and follow them. Here we have a situation where we have nothing of the sort. It is important, therefore, that the Government find a way in which they can, if necessary, protect themselves; otherwise, we are going to get in due course a considerable amount of legal interest, as the noble Baroness, Lady Ludford, just referred to. Whether that is through judicial review or other means, it will be so complex and convoluted that, while it might please some lawyers, other lawyers such as myself, of a rather more modest disposition, would find it quite appalling to see this happen. I ask my noble friend perhaps not to dismiss this amendment quite as easily as he dismissed Amendment 44.

Throughout the proceedings I have watched so far in Committee, there have been many references to the democracy which is necessary—and that the Government wish to pursue—compared with the lack of democracy that the Government allege in the European Union. As a Member of the European Parliament—as my noble friend the Minister was too, although for a shorter period—I think it is very difficult to make out a good case for a lack of democracy in the work that was done by me and my other colleagues from Britain in the European Parliament. This is particularly the case in recent years where the European Parliament has had co-decision and a right to block legislation from the Commission. The proposals of the Government at the moment—if they are not put to some form of independent assessment—would leave us with a situation where the secondary legislation lacks every single shred of evidence of democracy. Therefore, I ask my noble friend to seriously consider conceding Amendment 69A when he comes to respond.

[Baroness Wheatcroft (CB)]

My Lords, I will speak briefly to both Amendments 68 and 69. This Bill, as others have said, creates huge uncertainty for business at a time when business is struggling to cope with so many uncertainties that are outside the control of the Government. But the Government do have control of this. Both amendments require the Government to report on the likely advantages and disadvantages of taking the action they propose. What could be more reasonable? What member of society would expect the Government not to have weighed up the advantages and disadvantages of taking any particular action? How on earth can it be justified to go ahead and do away with protections and rights bestowed by European law, without actually having done some consultation as to what the results are likely to be? There might be disadvantages but, unless the work is done, who knows what advantages will be thrown away. What justification can there possibly be for taking such rash and foolhardy action?

Amendment 68 also requires a resolution in Parliament as to whether such action should go ahead. It is all about bringing back control to Parliament. Why would the Government—who are so keen on bringing back control to the UK—not wish to give Parliament the say on whether EU retained rights and protections should remain? Why should consumers not have the protection of a vote in Parliament? Perhaps the Minister could tell us why he does not want to know what the advantages and disadvantages of legislating would be and does not want consumers to have their rights taken into account.

--- Later in debate ---

[Lord Callanan (Con)]

We will keep the dashboard updated as work progresses. As the noble Lord knows, we had this debate in the first grouping on workers’ rights. We are proud of our record and have given a commitment that the UK will not go back on our excellent principle of workers’ rights, which are far in excess of that guaranteed by European law. I see that the noble Baroness, Lady O’Grady, is smiling.

We have had this debate on the issue of the dashboard, which noble Lords have raised on many occasions, but let me restate the Government’s position. We are happy that departments know what legislation they are responsible for. Their lawyers are still going through it to determine which is or is not retained EU law, but we have introduced technical amendments to make it clear that, by default, if they are not sure, they should retain that law. No detriment or challenge could be made if they did that.

[Lord Kirkhope of Harrogate (Con)]

I have just realised that my noble friend referred a moment ago to this Parliament’s lack of involvement in EU matters or legislation. He and others here are always putting forward that Ministers of this Government are accountable to Parliament—although, we sometimes argue, not sufficiently. Of course, they make up the Council of Ministers, which they attend in order to approve all European legislation. He surely therefore recognises that Parliament is almost directly linked to European legislation, but he says that there is no UK parliamentary input. I just wanted to correct that point.

[Lord Callanan (Con)]

It is slightly off the point, but I hope the noble Lord is not trying to argue that the UK Parliament is President in the Council of Ministers.

Retained EU Law (Revocation and Reform) Bill

Lord Kirkhope of Harrogate Excerpts

Committee stage
Tuesday 28th February 2023 Lords Chamber

[Lord Collins of Highbury (Lab)]

My Lords, I think we could debate this for much longer. I do not believe in conspiracy theories but I definitely believe in the cock-up theory of history, and this is certainly one of those cases. When I was thinking about how to respond to the debate, I decided that the subject matter of these amendments is vital, because it is about confidence—the confidence of business, the confidence of consumers—and people knowing what the law will be. And not tomorrow; they want to know what is going to happen next year. These are businesses that rely on planning one or two years ahead, and possibly more. One thing I realised is that we have constantly used Committee to seek clarity and a better understanding of what is behind this.

Take aviation, for example. My noble friend raised a question about booking holidays. We know what the EU regulations provide for, and people have some confidence in that. When we left the EU and we had the Bill that kept retained law on the statute book, the travel industry did not face a cliff edge then; everyone understood that continuity was important.

By the way, I am not a Conservative, as the noble Lord will know. I call myself old-fashioned new Labour, and that is exactly what this is about. Sadly, we have a situation here where I do not think that the Government know what they are doing. I think this should unite us all, across the Benches, whether you are a Brexiteer or a remainer—those are debates we have had in the past. On this legislation, we should all be united about its impact.

Aviation is an important industry, and it has already suffered huge consequences. It relies on the confidence of the people who book their holidays, and they are certainly not getting that. One of the things I did before we came down was to read Aviation Consumer Policy Reform, the consultation that the Department for Transport issued last January. It took it a long time to assess the responses to that consultation, and then we got the summary in July. There has been no idea since July about what the department is going to do about that, although all the indications are that the protection that is being offered through EU regulation will not apply to domestic flights—the sorts of protection that we get. A business or consumer will be thinking, “What does this Bill really mean?” They hear Ministers saying that we will keep the good bits, but when they look at the practice of the Department for Transport they cannot be filled with confidence. It is just crazy.

Let us turn to the letter, because it is really important. I assumed that this Government knew what they were doing when they published this Bill and that each department would have the responsibility for examining the regulations within its responsibility and thinking of the way ahead. That is not the case. What examination is taking place? This letter says that the National Archives is doing a search of what regulations exist. I suspect that it has done a word search and come up with all the regulations with “EU” in their titles. There has been no proper analysis by a department. Can the Minister—he is shaking his head—tell us what departments have properly examined that dashboard? What are its implications? We do not know whether it is an exhaustive list or what it will or will not include, and we are stuck with a timetable that is impossible for departments to meet. We also have that description of how this list and dashboard have come about.

On the regulatory powers, as the noble Lord mentioned, the letter says:

“It will be for the relevant Minister or devolved authority to decide if they are satisfied that the use of the power does not increase the overall regulatory burden in a subject area.”


It is absolutely crazy. I do not understand what that will mean. What are the implications for the transport and aviation industries? Tell us what the implications are. It seems as though, if we keep that benefit of retained EU law, we will lose something else in the aviation industry. Do not book your holiday next year because you do not know what will be protecting you. That is what the Government are saying to the people of this country and it is totally unacceptable.

At the end of the letter, which we got as we started this discussion in Committee, we read about the preserved law and what is retained. As the noble Lord, Lord Deben, said, we have a history of legal regulations that have been interpreted by our courts—no one else—and they have agreed case law that has been established. Now the Government are telling us that they will keep that EU regulation but all that history and continuity that has been built up will be thrown out of the window. It is like year zero. What are we talking about? Is this the way to introduce and maintain laws? This is not the way that this country has done it.

It is absolutely appalling that the Government have produced this Bill without any idea of its consequences. They have not thought it through, and it should be thrown out by all sides.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I am sorry to intervene at this point. I think everybody on my side knows that I do not like this Bill and that I have amendments later to discuss the general principles that apply to it. Therefore, I am rather disappointed that those who have put forward amendments in Committee on specific exemptions from the sunset clause, such as on package travel and linked travel arrangements and the issues of assistance to passengers denied boarding and cancellation or long delay of flights, et cetera, do not seem to have made a case at all on the specifics of their amendments. Am I wrong, or is it not right that in Committee we deal with specific amendments and make the justification for them, and then deal with the principles when amendments that contain discussion and arguments on the principles come up?