Retained EU Law (Revocation and Reform) Act 2023 (Revocation and Sunset Disapplication) Regulations 2023

Lord Leong Excerpts

Tuesday 17th October 2023 Lords Chamber

[Baroness Suttie (LD)]

My Lords, I thank the Minister for his explanation of these regulations. I agree with the Secondary Legislation Scrutiny Committee when it said in its short report that these regulations are an “eclectic” list of items to be reinstated and revoked. As the noble Lord, Lord Hacking, just said, it includes all sorts of things, including alcohol regulations. It covers a variety of departments, including the Northern Ireland Office; as the Minister said, it is deeply to be regretted that the Northern Ireland Civil Service, rather than a functioning Executive, had to make the decision to reinstate the three pieces of legislation relevant to Northern Ireland.

I also agree with the Secondary Legislation Scrutiny Committee and the noble Lord, Lord Hacking, that the Explanatory Memorandum is insufficiently detailed, stating merely, as it does, that the laws in question are either redundant or no longer effective. It is to be welcomed that, as the Minister said, there is now a direct link in the Explanatory Memorandum to the more detailed analysis, but it is important that these things are clear and easily accessible to the public, as well as to parliamentarians in this House and the other place.

The Government promised consultation and expert input on REUL reforms. Can the Minister update us on how departments are taking that commitment forward, including in the regulations we are looking at? The Minister will know that there are particular concerns regarding lack of consultation and progress on nutrient pollution and air quality. Can he update us on possible timescales and consultation processes for these two areas? Can he also say how the Government intend to approach assessing and mitigating the risks of changes to case law, which is so important for environmental protection?

My final comment is perhaps more for your Lordships’ House than for the Minister, but this secondary legislation from the original Retained EU Law (Revocation and Reform) Act is a very good example of where there should be post-legislative scrutiny within the usual framework for carrying out a PLS inquiry. There are important lessons to be learned for the future about the provision of effective parliamentary scrutiny and consultation with experts, which did not happen in the case of the original Act in the haste to get Brexit done and to get it on the statute book.

[Lord Leong (Lab)]

My Lords, I thank the Minister for the overview and explanation of this statutory instrument. In this first use of the powers in the retained EU law Act, the tidying-up exercise involves the exercise of the Section 1 power to disapply the sunset and the Section 14 power to revoke 93 pieces of retained EU law that no longer have any legal effect for whatever reason.

First, on the use of the Section 1 power, the Government have identified four pieces of legislation that never should have been included in the revocation schedule. This is extremely concerning. These instruments —two concerning the use of copper, one concerning merchant shipping regulations and one providing the legal vires to inform Northern Ireland and Gibraltar counterparts of the outcome of roadworthiness inspections —may not be the most significant pieces of legislation we have but they each play an important legal role.

Without the cross-party efforts of the House in improving the Act, these instruments would almost certainly have been lost at the end of the year, given that the further analysis required to spot these errors would have needed to take place on thousands, not hundreds, of instruments. Do the Government now accept that their initial unnecessarily reckless approach, borne out of internal party politics, was undoubtedly the wrong one?

Schedule 1 to the Act contained 587 instruments to be revoked at the end of 2023, to the extent specified there. I am sure the Government were 100% confident in this list when it was first drafted. We are now much closer to the end of the year and its looming deadline. Does the Minister seriously expect us to believe that now he really is confident that the revocation of the instruments on that list will not have any legal impact? Is the analysis that found the four errors I mentioned still ongoing or has it concluded?

The instrument also retains three pieces of legislation for Northern Ireland only relating to information provision and promotion measures concerning agricultural products. This again sounds somewhat minor, but their revocation would have represented a policy change, which would require agreement by Ministers in a non-functioning Executive. I am sure the whole House can see the constitutional risk, so is there any risk that proceeding as we are now will lead to such a situation? I assume that the Northern Ireland Civil Service will be examining this legislation continuously until and probably after it is revoked. If the Minister could share what he has been told by it on this matter, it would be very much appreciated.

Workers (Predictable Terms and Conditions) Bill

Lord Leong Excerpts

3rd reading
Monday 18th September 2023 Lords Chamber

[Baroness Anderson of Stoke-on-Trent (Lab)]

My Lords, I thank all those involved in getting the Bill to this stage. I particularly thank Scott Benton MP for steering it through its various stages in the other House; the Bill team, which has been so supportive; and, of course, the Minister and my noble friend Lord Leong.

The successful passage of the Bill will create a new right for workers to request a more predictable working pattern. It will address the unfair imbalance of power that exists between some employers and workers in atypical work, such as workers on zero-hours contracts and temporary workers. Workers will be empowered and encouraged to talk to their employers about their working patterns, safe in the knowledge that starting this conversation will not result in any detriment to the worker. It will give workers additional predictability and security of both hours and income, at a time when many workers with unpredictable or varying levels of income—as well as many others—are struggling with the rising cost of living. Workers will be better able to secure employment that suits their individual circumstances, helping them to feel more satisfied at work.

The Bill does not mean that our work is done in securing employment rights for those who need it most, but it is a crucial step on that journey. I am grateful for all the support for the Bill from all sides of the House. I beg to move.

[Lord Leong (Lab)]

My Lords, it is a great pleasure to support this Bill at its final stage. I particularly thank my noble friend Lady Anderson for taking the Bill through the various stages of the process. Of course, I also thank the Conservative MP Scott Benton for his willingness to work collaboratively to achieve this laudable objective. The passage of the Bill is an excellent reminder that good outcomes can be achieved even in politically and economically turbulent times. I am sure that many of us in this House will agree that when workers are treated with dignity, higher levels of well-being can lead to a range of benefits to businesses, especially around productivity, which will frequently be of more benefit to the employers than can be measured in wage costs. We fully support the Bill, which brings us one step closer to the protection of workers, and I look forward to seeing it passed in this House.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

My Lords, I thank the noble Baroness, Lady Anderson, for bringing the Bill through this House and I am delighted to confirm the Government’s ongoing support for the Bill, which will fulfil our 2019 manifesto commitment to introduce a right for workers to request a more predictable working pattern. The Bill will allow workers to request more predictable working arrangements, addressing the issue of one-sided flexibility while ensuring that workers can continue working on a zero-hours contract, another form of non-guaranteed hours contract or, indeed, a temporary contract, if that is the type of contract that suits them. This will allow individuals and businesses to strike the right balance between flexibility and predictability.

This new right will function in a similar way to the existing right to request flexible working. An employer will be able to refuse a request for a more predictable working pattern based on one of six statutory grounds similar to those established for the right to request flexible working. These grounds build in vital flexibility for businesses, ensuring that they are not unfairly burdened by accepting requests that would, for example, generate burdensome additional costs.

In conclusion, I am delighted to see the Bill progress, and I thank the noble Baroness, Lady Anderson, for sponsoring the Bill as it moves through this House and my honourable friend Scott Benton MP for sponsoring it through the other place.

Employers: Fire and Rehire Tactics

Lord Leong Excerpts

Thursday 14th September 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

My understanding is that the P&O case is still under consideration with the insolvency authorities, so I cannot comment further on it. Further consultation is going on, taking account of this case and specifically the difference between dismissal and redundancy. That will also be in the code of practice. P&O has received censure. It continues to operate within the laws of the United Kingdom and should be allowed to continue to do so.

[Lord Leong (Lab)]

My Lords, good business leaders recognise that without workers they have no business. Valuing workers, treating them with dignity and respect, and mutual trust build a dedicated, motivated workforce. Unfortunately, some employers still adopt fire and hire practices with relative impunity, disrespecting their employees’ livelihoods and well-being. In turn, that damages the reputation and profitability of their business. Do the Government think it just for workers to be treated in this manner? Why will they not stop it?

[Lord Offord of Garvel (Con)]

As I indicated, only 3% of employers have ever used these tactics. The majority of good employers understand full well that the health of their company requires a happy and motivated workforce. This is a minority situation. The code of practice will give it greater clarity going forward.

Small and Medium-sized Enterprises: Interest Rates

Lord Leong Excerpts

Wednesday 13th September 2023 Lords Chamber

[The Earl of Minto (Con)]

The noble Baroness makes a very good point. CDFIs have been extremely successful and, if one looks at the plethora of lending opportunities right now, it continues to broaden because of the new entrants into the market. We will certainly take it up with the major banks and see where we get.

[Lord Leong (Lab)]

My Lords, SMEs are now looking to move from survival to growth as they recover from the impact of the pandemic. However, many SMEs that relied on government-back pandemic loans are finding the cost of borrowing far higher now. What can the Minister offer the millions of SME owners and employees whose prospects are hampered by the 15-year peak in interest rates?

[The Earl of Minto (Con)]

The interest rate is a Bank of England matter. The reason why it has gone up, as we all know, is to battle inflation, which is incredibly important. Having said that, in business, financial rigour and accountability are paramount in managing a business, particularly through a growth phase. We saw insolvencies fall to quite a low level during the pandemic because of the Government’s support, and the noble Lord is right that we are starting to see the number creep up again. The Government will do all we can in providing both advice and teams to help businesses in trouble but, when it comes down to it, it depends very much on the financial viability of the business going forward.

Digital Economy Agreements

Lord Leong Excerpts

Monday 24th July 2023 Lords Chamber

[The Earl of Minto (Con)]

No, my Lords, I am not sure that they are in conflict. Technological advances in free trade agreements will ensure that this country, among others, will be able to trade freely with a very wide range of companies and countries.

[Lord Leong (Lab)]

My Lords, digital transformation could grow the UK economy by more than £413 billion by 2030, equivalent to around 19% of the entire UK economy. That is more than twice the annual output of the UK’s manufacturing sector. Surely we should be turbocharging DEAs with as many countries as possible. Why are we so slow, and what assessment have the Government made of the size and experience of negotiating teams as part of the recent machinery of government changes?

[The Earl of Minto (Con)]

The noble Lord makes a very good point: anything that improves the speed of these free trade agreements can only be for the benefit of the country. The ones we are looking at at the moment are with India, Switzerland, Israel, Canada, Mexico and the GCC, and digital economy agreements will be in every one. There are digital trade provisions in a further 30 to 40 free trade agreements: I am very happy to give him a list but I do not think it is appropriate to read it out now. The very heart of this is making trade easier, faster, more secure and of course cheaper.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Lord Leong Excerpts

Thursday 20th July 2023 Lords Chamber

[Lord Leong (Lab)]

My Lords, while we will always welcome improved trade relationships, the political capital invested by the Government in this announcement seems disproportionate to the potential economic impact. The deal will increase the UK’s GDP by 0.08% after 15 years. Since the Government were not able to negotiate the terms of the UK’s membership, I will ask the Minister two questions. Will it lead to the lowering of food standards or of our intellectual property protection standards? China applied to join CPTPP in September 2021—what assurances on economics and security have Ministers asked for from existing CPTPP members in relation to China’s membership?

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Scotland Office (Lord Offord of Garvel) (Con)]

Noble Lords, it is a momentous occasion to be able to talk in this House about the signing of the CPTPP. This is a tongue twister, but we are all going to have to get our mouths around it because we are going to hear a lot more about this in the future. This is a massive region of 11 countries in the Indo-Pacific, which account, together with the UK, for 15% of world trade GDP.

We know that this trade deal originally had the US in it, and Donald Trump took the US out. That created a gap. For those of us who play the game of rugby football, you always go for the gap. The UK has taken that gap and got into this deal, which, to come to the specifics of the question, will in no way impact on our food standards and regulatory standards.

On the matter of China, China is not a member of this group. China has expressed some interest, but there are other interested countries such as Costa Rica, Ecuador, Uruguay, the Philippines and Korea that are in line before China. So, as far as we are concerned, at the moment we are not commenting on China’s accession. China has expressed an interest but, on the exact question, there will be no reduction of food standards and general regulation through this deal.

Workers (Predictable Terms and Conditions) Bill

Lord Leong Excerpts

2nd reading
Friday 16th June 2023 Lords Chamber

[Lord Leong (Lab)]

My Lords, I echo what my noble friend Lady Anderson of Stoke-on-Trent said about our friend Jo Cox. We remember her more so today than any other day. She was the best of us, and let us be the best of her.

I congratulate my noble friend Lady Anderson on bringing this proposal as a Private Member’s Bill and hope that it can swiftly pass through its remaining stages. I admit that I was more than a little shocked to discover that the provisions and protections of this Bill were needed. When it comes to zero-hour contracts, the default position has been to offer one-sided flexibility—an awful example of political double-speak, which attempts to disguise the unbalanced and exploitative relationships between employers and some of the most vulnerable people in our workforce.

In 2015, exclusivity clauses on zero-hour contracts were made unenforceable for many workers, but this right was not extended to those earning less than £123 per week until December of last year. Let us consider what this really means: workers in low-paid jobs, facing double-digit inflation and mostly impacted by food inflation in the high teens, have been entitled to non-exclusive zero-hour contracts only for the last six months. That is shameful. It pains me to think how many people may have been so desperate that they remained trapped into staying with an employer who could treat them as an afterthought, with little sense of the human being and their family depending on unpredictable wage packets, week after week.

My noble friend’s Bill improves their position a little further, supporting workers who have been employed in this way for some time, whether directly or through an agency, to request that it becomes formally recognised in their employment contract. This will add a much-needed layer of security for those teetering precariously on the very fringes of the world of work. It has been estimated that the net cost to businesses of this legislation will be only £16.9 million annually. As a businessperson and an investor in many SMEs, I recognise that some micro-businesses may find even the smallest additional costs challenging, especially with the current cost of living crisis. However, I was surprised that it was such a relatively low figure for the whole UK economy, given that it could make an enormous difference to thousands of our most vulnerable citizens. We should remember that many of the employers facing these costs will not be micro-businesses or SMEs—not at all. In a country where the average FTSE 100 CEO earns 103 times the average worker and more than 150 times a full-time worker on the minimum wage, this minimal cost that can be met.

We know that the cost of living crisis disproportionately impacts the lowest paid. Just last week, the publication of annual reports of some well-known British companies revealed that their CEOs received seven-figure bonuses, which more than doubled their enormous so-called basic salaries of around £1 million. I do not think it would break their business models to ensure that some of this money found its way to their lowest-paid employees, perhaps demonstrating some “other-sided” flexibility.

The potentially life-changing social and economic impact on the lives of the lowest-paid workers, who would be helped by the Bill, and the resultant benefits to the employer of a more engaged and stable workforce will, in my view, quickly repay the relatively small additional cost. I believe—indeed, the Labour Party was born out of this belief—that treating employees with dignity, providing them with the stability that comes with a regular wage, leads directly to improved self-esteem and loyalty, which in turn builds a more positive, productive and profitable business. Although investment in equipment and technology is important, investing in the workforce should always take account of the people behind the spreadsheets. People are the drivers of any business, and this will always be the case. As employers wrestle with artificial intelligence and the much discussed “rise of the machines”, we should be looking after our employees.

Although much more can still be done to improve workers’ employment rights, as my noble friend Lord Davies and the noble Lord, Lord Palmer, said, I have enormous respect for my noble friend’s efforts in bringing the Bill before us. It is definitely a step in the right direction, and I urge noble Lords to support it.

Baby-changing Facilities

Lord Leong Excerpts

Tuesday 6th June 2023 Lords Chamber

[The Earl of Minto (Con)]

My Lords, I think we can all agree that the principle of free access to baby-changing facilities in as many different hospitality situations as we can reach is desirable. Under the existing building regulations there is already a requirement for new non- residential properties to consider this, as well as for buildings which are undergoing substantial reconstruction.

[Lord Leong (Lab)]

My Lords, as most mothers and fathers will tell you, taking an infant out, especially to eating places, is a real chore—you have to pack nappies, a changing mat and wipes, among other things. Having to find a place to change nappies is another chore. They should not be forced to do this in unsuitable places. Most child-friendly restaurants and cafés already have baby-changing facilities. This makes good business sense, contributing to a healthy “bottom” line, as parents will look at these eateries positively. There have been suggestions from many people that cafés, pubs and restaurants should be required to provide baby-changing facilities by law so that parents can have peace of mind. Will the Government look at this again?

[The Earl of Minto (Con)]

I thank the noble Lord for his comments—in all respects. My noble friend made a very good point about how this needs to be practicable. There are a lot of existing hospitality venues where it is not practical to provide additional services, either from a financial point of view or, more importantly, from a space point of view. However, the principle holds good that, whenever the opportunity arises with anything new or anything that is being rebuilt, consideration should be, and indeed is, required under the building regulations improvements.

Automotive Manufacturing Sector: Support

Lord Leong Excerpts

Monday 15th May 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

As I have expressed, the importance of investing in this area remains paramount. We have the automotive transformation fund, which is over £850 million, and the Faraday challenge. I have listed some other important aspects that the Government are focusing on. This has led to important investment, including into Pensana, Jaguar Land Rover, Mahindra & Mahindra, Motherson Group, TVS and the Hinduja Group, and a whole new range of investments into hydrogen-powered buses, which is a great success flag for Northern Ireland.

[Lord Leong (Lab)]

My Lords, my first car, which I loved, was a British-made MG Midget in racing green. It is very sad that we are now at a point where unless the UK Government develop a credible automotive industrial strategy, Britain will soon have no automotive industry and the memory-making cars that come with it. We have world-class British automotive designers, internationally renowned British engineers and a skilled and hard-working British workforce. What plans do the Government have to utilise these assets to improve productivity, invest in research and innovation and ultimately transform the sector as it moves away from petrol and diesel?

[Lord Johnson of Lainston (Con)]

I am grateful to the noble Lord, Lord Leong, for telling us about his car history. My first car was a Fiat Regata; I doubt that anyone in this House has ever driven one of those, and I would not necessarily advise it. It is important to look at some of the other aspects of where we are investing and have been successful in this country, and to trumpet the successes and triumphant elements of our car industry. Formula 1 is a very good example of that: two-thirds of the Formula 1 teams are effectively located here and the technology is developed here. There is our luxury car industry, where Bentley has recently announced £2.5 billion for further investment. We lead the world in luxury cars including, I am pleased to say, the rebirth and renewal of the important brand of Lotus. I met those in its owning company a few days ago and heard of their commitment to investing in this country, because we have the expertise to do the design, development and, ultimately, manufacture.

Post Office Executives: Bonuses

Lord Leong Excerpts

Thursday 11th May 2023 Lords Chamber

[Lord Leong (Lab)]

My Lords, I welcome the Minister to his new role and look forward to working constructively in the months ahead. I thank him for coming to this House to address these concerns.

The Post Office Horizon IT scandal is the most widespread miscarriage of justice in UK history. For more than a decade, this Government have allowed the scandal to drag on. Thousands of lives have been ruined and, tragically, more than 30 families have lost loved ones. Despite all this, continued delays mean that thousands of victims have yet to receive financial compensation.

It is appalling that, instead of these victims seeing anyone held to account for their lives and livelihoods being ruined, they are instead suffering the indignity of watching those who contributed to their suffering rewarded. CEOs who allow such behaviour disgrace the business community. Does the Minister agree with me that this is pure corporate greed? Does he really believe that paying nearly half a million pounds in bonuses to those involved in the scandal is justifiable in this case? Does he agree that the payment of these bonuses undermines the fight for justice and insults the hundreds of victims for whom Members on both sides of this House have campaigned so hard and for so long?

[The Minister of State, Department for Business and Trade (The Earl of Minto) (Con)]

My Lords, no doubt this is a serious error in corporate judgment, coming on top of the Horizon scandal and the misery and false accusation that it caused. In this regrettable situation, the Post Office was right to apologise. This is an extremely serious issue, at a time when it is essential that the public have confidence that the culture and processes at the Post Office have been improved. Government has acted swiftly, calling for an immediate explanation from the Post Office of how this mistake occurred and what steps its board is taking in response.