Financial Services Bill

Debate between Lord Lexden and Lord Stevenson of Balmacara

Report stage
Wednesday 24th March 2021 Lords Chamber

[The Deputy Speaker (Lord Lexden) (Con)]

The name of the noble Lord, Lord Stevenson of Balmacara, does not appear on the list, but he should have been included, so I call him next.

[Lord Stevenson of Balmacara (Lab) [V]]

I am grateful to the House for allowing me to speak at this point. I put in a request, but it got omitted. The Deputy Speaker has expressed the situation well.

The substance of the issues raised by the noble Earl in his introduction are incontestable. We respect the devolution settlement and we need to make sure that everything we do is in accordance with that. He slightly misspoke in the sense that the Sewel convention now has statutory force, rather than being just a convention. Indeed, it is often now called the Sewel principle. When we were dealing with matters arising from the internal market Bill, which came to your Lordships’ House about six months ago, that was certainly the way in which we addressed this issue.

I understand the logic behind the Government’s current position and their concern that they should not take steps which would in any sense mitigate the Sewel principle, as discussed. However, I was left a little confused by the noble Earl’s remarks, despite the usual clarity with which he expressed himself.

As I understood it, the debt respite scheme was being progressed under regulations made under the Financial Guidance and Claims Act 2018, to which he referred. It therefore seems a little odd that we are still concerned that that might not go ahead or that, if it did, it would do so under regulations made in Northern Ireland rather than those which will apply in England and Wales. From memory, this will be in place from May 2021, which is not very far away. I would be grateful if the noble Earl could be a little clearer about that when he comes to respond, or perhaps he could write to me and we could discuss this. The issue is where that authority will vest going forward. Will it relate to the UK financial guidance Act or to local legislation put through by the Northern Ireland Assembly? Matters may arise regarding how that is decided, but I would like to know the answer.

The other question is how we make progress in relation to the statutory debt repayment plans. The issue here is again whether the necessary legislative consent order would have come through, when it has not, in relation to that. If that is the case, perhaps the Minister will confirm whether that is happening. If it is not happening, is not the situation a little different this time? Because, as we are going to discuss in the next group, we are now being told that the timeframe for the delivery of the SDRP is going to be the end of 2024, which is, after all, three and a bit years away. It seems unlikely that there will still be a problem if we are waiting for the Northern Ireland Assembly to consider that: we should be able to get through that in three and a half years’ time.

I would be grateful if the Minister would let us know a bit more about the Government’s plans and again, it that is not in his notes, he can write to me and we can discuss it offline.

Insolvency (Amendment) (EU Exit) Regulations 2018

Debate between Lord Lexden and Lord Stevenson of Balmacara

Tuesday 15th January 2019 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, I thank the Minister for introducing this issue. The SI seems to be welcomed by many in the industry and deals with a particularly difficult issue in a very constructive way, according to reports from those who have written to us. I agree with the points made by the noble Lord, Lord Fox. When the Minister responds, it would be interesting if he could be quite clear about whether the SI covers the minimum necessary to get the statute book in order if there is no deal, or whether, as he suggests, the Government will go a little further and lay out some sort of attractive regulatory pas de deux for the EU post Brexit which would make it easier to legislate for an asymmetrical solution. That is probably not quite what is happening here, but it would certainly be interesting to get the Minister’s response.

Given that the results are coming in of the vote in another place in which the Government’s proposals have been roundly defeated, we may be witnessing a transition to a slightly different arrangement, which we do not need to comment on just yet. In the circumstances it would perhaps be best to let the Minister respond to the points made. I hope to hear from him very shortly.

[Lord Lexden (Con)]

Before my noble friend replies, I will make just a couple of points as a current member of the Joint Committee on Statutory Instruments. I preface them by saying how greatly the committee will relish the praise that my noble friend heaped upon it at the outset.

The two points arise from the committee’s report. The first relates to Regulation 5(1), where the committee points out that it would have been far better if the department, despite the explanation that it provided, had avoided the ambiguity of language to which the committee drew attention by replacing vague concepts with clearer definitions, instead of continuing with its own approach.

The second point relates to Regulation 5(2), to which the committee drew attention because it appears to give very wide powers to the courts that will be called upon to adjudicate issues. Despite the department’s explanation, the committee remained concerned,

“at the breadth of the discretion conferred on a court by regulation 5(2)”.

It went on to say that this regulation,

“leaves it entirely to the courts to determine—on a case-by-case basis—what law they should apply in any particular case”.

I would be very grateful if my noble friend could touch on those points when he replies.