Draft Financial Services Bill (Joint Committee) Debate
Full Debate: Read Full DebateLord Mann
Main Page: Lord Mann (Labour - Life peer)Department Debates - View all Lord Mann's debates with the Leader of the House
(13 years, 1 month ago)
Commons ChamberI am grateful, Mr Deputy Speaker. That allows me to pose a question to the Leader of the House. My understanding of the Order Paper is that the debate may continue beyond 10 pm. I am not sure of the mechanism that would be adopted, but my understanding is that the Government would like the debate to have the opportunity, if necessary, to continue beyond 10 pm. If that has been withdrawn, I would be grateful for clarification from the Chair.
The Leader of the House said in his brief yet succinct remarks that if we were to change the balance of the Committee, that would give the Opposition parties control of the Committee. I did not have the benefits of the wonderful education of many Members on the Government Benches because I grew up under the previous Conservative Government, but by my maths there would still be three members of the Conservative party and two members of the Opposition on the Committee. The Government would still have a majority. They are perfectly entitled to nominate a new member, if they choose to do so, and we would support a suitable candidate. Perhaps in his rush to get his suntan creams and holiday brochures out, the Leader of the House had not quite checked the membership of the Committee.
Would my hon. Friend like to take the opportunity to correct the record and the rather uncharitable statement made by the Leader of the House that those supporting the amendment are in some way attempting to undermine pre-legislative scrutiny? Does my hon. Friend agree that if there had been pre-legislative scrutiny at a much earlier stage in previous Parliaments, some of the issues in the financial sector may not have been as profound as they have been?
My hon. Friend is correct. I am baffled—I would happily take clarification from the Leader of the House or the Deputy Leader of the House—as to how removing one member of the Committee is tantamount to seeking to thwart the business of the House. My understanding—I am sure the Deputy Speaker would correct me if I was wrong—is that the Committee would still be quorate and would still be competent.
I look at the names of some members of the Committee and see good, learned and wise individuals from both sides of the House. At least one member, the hon. Member for Warrington South (David Mowat), is present in the Chamber to hear the discussion. The Committee consists of a competent set of Members from both sides of the House. My hon. Friend the Member for Leeds East (Mr Mudie) is a long-standing member of the Treasury Committee.
I always have great respect for your counsel, Mr Speaker, and obviously do not seek a time when you might perhaps be advising other Parliaments in other parts of the country, or other parts of the world. [Interruption.]
If I could hear myself speak, I would ask my hon. Friend whether he would care to comment on the fact that the constituency of Yeovil is an English constituency, whether he has considered the make-up of the Committee that is proposed, whether he perceives that it will in fact be an English Committee, rather than a United Kingdom one, and what the potential consequences might be, not least for his constituents, of that happening in such a biased way.
I obviously look forward to my hon. Friend’s contribution in due course.
I must say that I thought the cracks about monkeys and organ grinders that the hon. Member for Devizes made did nothing to raise the standard of the debate, but as she used to work for the Chancellor of the Exchequer I expected nothing more, because her speeches were never that good when she worked for him. It is important that we look at whether the people who are being put forward in general are of a correct measure. The hon. Member for Warrington South, who I think is now detained elsewhere, asked about the qualifications needed for serving on the Committee, and my hon. Friend the Member for Bassetlaw (John Mann) and I are equally concerned about what qualifications should or may bar an individual Member from serving on the Committee. Having read from cover to cover the Standards and Privileges Committee report, and having read the introduction to the draft Bill prepared by the Chancellor of the Exchequer and his team about the need for financial probity and for a new set of regulations, I have severe doubts about whether one member of the Committee is adequately suited to the task.
In a week when Parliament has had to deal with some very severe accusations levelled against members of the Government and against members of Her Majesty’s police forces, when we have seen former special advisers being placed under arrest, and when Government Members simply argue, as I have heard them do today, that we will take people on the basis of the assurances they have given although they are under active police investigation, the public will look at this Committee and say that it beggars belief.
I am grateful for that question. Obviously, I will not have the last word. Indeed, I imagine that you, will have the last word Mr Speaker when you read out the result of the Division that may occur later. Having taken advice from senior officers in the House, it is my understanding, although I have not checked the latest edition of “Erskine May”—the 24th edition, which was edited by the Clerk of the House, is out now and is a snip at £295—that Labour Members would not be allowed to put forward the name of a Liberal Democrat Member without their express consent. I fully understand why a Liberal Democrat Member would not seek publicly to undermine their parliamentary colleague and I respect that. It would be for the Government Whips to approach Liberal Democrat Members.
My hon. Friend is getting to the nub of one of the key issues. Is not the dilemma that, when wishing to amend the membership of a Standing Committee or any other Committee of the House, the modernisation of this place has not gone far enough for anything other than the usual channels to determine such things? It is only in the last year that Chairs of Select Committees have been elected by the House. Modernisation has only gone so far. In raising such matters in the House, we are rather trapped in the antiquated systems of how we can object.
My hon. Friend is entirely right. He will know that I am a member of the Procedure Committee, which is the successor to the Modernisation Committee. I have the privilege to serve with a number of the members of that Committee. He is right to say that this is something that I take a particularly keen—[Interruption.] I will give way.
It is with pleasure that I address such a packed House. Having sat through and participated in a significant number of debates since the general election, I cannot recall on any occasion, even when there have been debates on so-called fundamental reform of the constitution by the Deputy Prime Minister, seeing so many Liberal Democrats present. I heard someone say from a sedentary position that this was Parliament at its worst, but it is a good sign of democracy for this type of debate to have so many active would-be participants. I welcome the Liberal Democrats into the House in such large numbers, and it is good to see that their coalition partners wish to see some balance and to be informed by the debate.
I hope that we can have the full, thorough and proper debate that the House has lacked in relation to the establishment of such Committees, which are a new venture for the House. They should generally be welcomed, but the Leader of the House and his shadow exemplified the bind that we are in, as democratic politicians in this House, when we attempt to amend anything in any way that has not gone through the “usual channels”.
I did not get a chance to notice this while I was speaking—following the rules, I was looking at you, Mr Speaker—but has my hon. Friend noticed that one of the chief cheerleaders tonight is a Liberal Democrat Whip?
We take the view that all Members of the House are equal, which is an important principle, so the ability to participate and influence should be equal. It is ironic, therefore, that when it comes to the selection of Committee members some are more equal than others. It seems to me that as we have started a modernisation process that is very slowly beginning to trickle through the House, after many years of waiting, that issue needs proper attention.
It is rather a shame that someone needs to table an amendment even to get the issue on to the Floor of the House. The Government were not going to allocate any time to debating this important Committee, its make-up, whether we should have it at all, the timetable allocated to it, the role of the House of Lords within it, whether the Lords should have a role in financial matters, or the issue of England versus the rest when it comes to the membership of the Committee. None of that could have been debated had not my hon. Friend the Member for Dunfermline and West Fife (Thomas Docherty) and myself chosen to learn the rules and object at 10 o’clock on a number of occasions over the past week, and then to table an amendment. By its nature, that amendment has forced the Government to create time for this debate.
It is a little odd that the Government are seeking to have unlimited time for this debate, which can continue till any hour, when we have just debated major energy statements—a fundamental issue for each and every hon. Member and our constituents—with speech limits of five minutes per Member. That seems to me a poor allocation of time, but it is another example of the impotence of the Back Bencher in attempting to influence what goes on in here.
I do not court favour, and I never have, with any side of the House. Indeed, on some issues, on some occasions, I have been in a vocal but rather small all-party minority. When the expenses issue was first emerging, and this House was refusing to deal with it and was still not totally on top of it, the usual channels—or what I termed the “gentleman’s club”—were a hindrance to democracy and to our relationship with our voters.
The hon. Gentleman seems to be taking a very high moral tone, but as a person who has been serially rebuked by the Standards and Privileges Committee, is he therefore ruling himself out of any future Committee membership?
I shall give way in a minute.
There is an important point about who should be a Back Bencher and who should remain a Back Bencher, because within the House, some will always be fated to be Back Benchers, often at the behest of their party leader. In power, party leaders love to exercise the power to choose who will be in ministerial positions or sit on Committees and the rest. However, on occasion there is perhaps a democratic requirement that some people should choose to be Back Benchers, or be chosen to be Back Benchers, for the length of a Parliament. It can be quite cathartic, as a politician, to spend one’s time—
Order. This is not the occasion for the hon. Gentleman either to dilate or to rhapsodise about the merits of Back-Bench life. Anybody would think that he was seeking to imitate his hon. Friend the Member for Newport West (Paul Flynn), and to pen a book entitled, “How to be a Backbencher”. He is welcome to do that, but if he wishes to do so, he must do so outside the Chamber.
The hon. Member for Devizes (Claire Perry) accused my hon. Friend of taking a high moral tone, but does he agree that surely a high moral tone is to be preferred to a low moral tone?
I am attempting simply to put across a few views that I believe would appropriately reflect the views of my constituents. I am putting no tone—high, low or otherwise—into this debate.
Members are elected to come and put forward in this House what we think appropriate. One thing that my constituents, and therefore I, would not regard as appropriate, and that the House overall should not regard as appropriate, is having a Joint Committee made up exclusively of English members. A Joint Committee on the draft Financial Services Bill that reflects this House, in the way that Select Committees do, ought to be more reflective of the entirety of the UK, and not just of England. I say that with some irony, because I am one of those who has argued that the English voice has been understated in this House.
Does my hon. Friend agree that many financial services jobs are based in Edinburgh?
It may assist my hon. Friend to learn that I have more than 2,000 people working in the banking industry in my constituency, not to mention the thousands who make the lovely commute every morning over the bridges to Edinburgh.
The hon. Gentleman is obviously concerned by the lack of members from Scotland. There are two Labour members on the Committee, so perhaps one of them could be replaced by a member from Scotland. That would resolve the problem without bothering about any other party.
I thank the hon. Gentleman for his point. There are other reasons why, when considering altering the balance of the Committee to represent the balance in Parliament more appropriately, we picked a Liberal Democrat to remove, not a replacement from my party. No replacement will be required if this resolution is passed, as I hope it will be. One of the consequences would be that the Government could rethink the membership of the Committee. The question of how many members, and the balance from Scotland, Wales, Northern Ireland and England—
Will the hon. Gentleman give way on that point?
The hon. Gentleman started his very long speech by saying that all Members were equal, but all his points so far contradict that principle. Can he not just end it?
The hon. Gentleman is rather intemperate. Here we are having a good and important debate, and I anticipated an informed intervention from him. Instead, he merely wishes to curtail debate on equality. That says something about these new Conservatives, the partners of the Liberal Democrats—
I am all in favour of gender balance on Committees, but the hon. Gentleman is a member of the Treasury Committee, which has only one lady member. I do not recall him ever making the point that he or his Labour colleagues—all of whom are men, of course—should be replaced by women.
The hon. Gentleman is not an hon. Friend of mine—to use the parliamentary language—so he is not privy to the debates and discussions in the parliamentary Labour party. However, I assure him, and the House, that this is an issue that I have raised. It is one of the traps that the House has set for itself, in the same way as it has with this motion. How do we achieve gender balance? I intend to make some suggestions about what we can do if the amendment is passed, and why that is so important.
The hon. Gentleman will recognise that his party has just had the opportunity to appoint a new member to the Treasury Committee, but it did not take the opportunity to appoint a woman. We were joined by another Labour man for the first time today. The hon. Gentleman claims to be concerned about gender balance, but this rather spiteful amendment would have been better if it had proposed such a balance, rather than being a veiled attack on one hon. Member.
It is not, but I strongly deprecate the suggestion that the hon. Gentleman has been around for longer than he ought to have been. [Interruption.] I am not wishing his untimely end, notwithstanding the sedentary dissent of the Patronage Secretary.
As I was saying, equality is a fundamental issue in respect of Treasury matters. The make-up of this Committee reinforces and exemplifies an historical bias on equality that is a significant bar to effective decision making cross-party and over many generations. One only needs to look at the fact that Chancellors of the Exchequer have been male throughout the centuries. Therefore, in the modern era when all parties rightly, and with increasing success, are bringing women forward into Parliament, this Committee’s membership demonstrates an old-fashionedness and backdatedness that this House should not endorse tonight.
This gets to the nub of the gentleman’s club and the way in which decisions are being made and have been made. I suspect that no such discussions on equality took place as the names were put forward, and that, in fact, the different parties put forward their names in accordance with the usual time-honoured, historical tradition, and nobody then took an overview. I suspect that the bias against Scotland, Wales and Northern Ireland came about in exactly the same way.
Based on this argument, I am surprised that two male Members have tabled this amendment. Surely 50% of them should have been female, but I do not think that that is the case.
It is good that serious interventions are being made. On Treasury matters, there is a historical bias going back over the centuries, but this Parliament has not got to grips with it. We made exactly the same mistakes when establishing the Select Committees. The usual channels have brought forward names and those names are not reflective of the House or the country. That is a fundamental weakness.
Will the hon. Gentleman be moving on to the next point, which is the disproportionate number of people called David on this Committee?
I will not be making frivolous points about the forename or surname of any of the Members put forward for this Committee. However, the question of gender balance is not going to be knocked off the agenda so easily, because it is fundamental to the whole workings of Parliament. If Parliament in the modern era is portraying itself through one of the very first Joint Scrutiny Committees to be established and the elected House of Commons manages to get itself in a bind whereby all the Members put forward are English males, we are letting the country down. We are also letting down the principle of modernisation, which, superficially at least, is shared by those on both sides of the House. If we are really trying to encourage a wider array of people to take an interest in this House and, in future years, to stand for this House, how we portray ourselves in the Committees that we create is a fundamental principle.
I put it to the House: in what other way can the House manifest its commitment to an inclusive Parliament—a Parliament that is representative of all parts of the country, of all sections of the country and of both sides of the gender division within the country? There is a fundamental point at issue, which the Government, in failing to give proper time to have this proposal debated, are shying away from. That is a weakness at the heart of government.
My hon. Friend is making a compelling argument. Has he considered the idea that in the future it might be helpful if a statement were attached to each name, spelling out what the usual channels felt were the Member’s qualifications for this Committee or for the Select Committees?
No, I disagree with my hon. Friend. Others were arguing in interventions—they are welcome to make the point at greater length in debate if they wish—that this Committee should be based on experts, but that is a fundamental flaw of logic. The idea that it has to be bankers and specialist economists who investigate, make decisions on our behalf and carry out pre-legislative scrutiny and that the basis of these bodies should be some academic prowess or past profession is part of the old school and the gentlemen’s club. There is no reason why those from manual working backgrounds or care backgrounds should not also be able to participate in making such decisions as effectively as anyone else as members of these Committees.
When the world looks in, and, in particular, when our constituents look in, and we examine how far we have modernised or not modernised, as exemplified by the failure in the make-up of this Committee, we find, at the very end of the first year of this two-year Parliament and as we go into the summer recess, that the problem is magnified. We are talking about one of the last decisions made by Parliament before the recess. It is a recess that some believe is too long—I tend to share that view—but through which this Joint Committee will apparently be working. If that is the signal we send out to the country of how we see the modern world and financial services and how we intend to influence such services, it undermines our ability to do the kind of things we want to, although we disagree on the precise remedies. Removing such influence from ourselves and weakening ourselves by having such an unrepresentative Committee is a fundamentally flawed policy, but other weaknesses in the make-up of the Committee must be explored.
One such weakness is the fact that the balance between Government and Opposition does not reflect the balance in Parliament. That seems to me to be fundamentally wrong. There may or may not be a desire to have votes in the Committee, but, as regards the contribution, input and perspectives raised when four of the members come from the Government side and two from the combined Opposition side, that distribution does not seem to be democratic or appropriate. It does not reflect the election results.
Unless the number of members is increased, changing the balance by one person from 4:2 to 3:3 brings equality, which does not reflect the present situation in the House of Commons, does it?
I thank the hon. Gentleman for his intervention, but there is no suggestion of any name being added—certainly not from me. The suggestion is merely to remove one name to create a better balance of 3:2. Of course, one never could and never should attempt to use an entirely mathematical equation to resolve such matters, but the principle that the balance in Committees should reflect the balance in the elected House is surely one this House would have to abide by. The hon. Gentleman is right; there could have been other ways of doing this, such as adding another member, but it seems to me that adding another member, perhaps from one of the smaller parties, would be rather a hostage to fortune, because we must ask which Member it would be and from which party. Back Benchers could not simply be nominated at random without some process to enable consultation—the very consultation that the Government failed properly to carry out for this Committee. We all know why the make-up of the Committee is as it is and what the Government’s agenda is.
The right hon. and learned Gentleman, from a sedentary position, says that that is inconsistent, but there is no requirement for those proposing an amendment to agree on every remedy that would emanate from it.
My purpose is not to make any comment on individual Members but to ensure that because there is a balance between the other place and this place the Government take the issue back and rethink the entire make-up of the Committee in order properly to reflect the Parliament that we have, the elections we have had and the modern world we live in. I seek no more than that, but of course my hon. Friend the Member for Dunfermline and West Fife, who has added his name to the amendment, may have other, additional and different reasons. That does not negate the argument; indeed, one could argue that in a democracy it strengthens the case because there are different arguments from different perspectives with different options provided. The principle remains the same, however: it is invidious to have a balance of 4:2, four from the Government side and two from all the combined Opposition parties. However one looks at it, that in no way reflects the result of the last election.
It seems to me rather demeaning for this Parliament to go into such a long summer recess with this Committee apparently sitting through it with such imbalance and such bias. This question of priority and of why the Committee is sitting through the summer is another reason why the amendment has been tabled. If the amendment was passed, one would hope that the Government would be forced to rethink at this late stage. They chose not to table the debate earlier, although they had the opportunity to do so, but one would hope that the time for reflection they would have over the recess would also mean that the proposal for this biased and unrepresentative group, in relation to the general election, to Parliament as a whole, to the nations of the United Kingdom, to the gender balance in the House, to democracy and to the world in which we live, could not happen. It seems to me a wrong priority in the month of August, when there are many important things that we could be deliberating and engaging on, for this Joint Committee to be establishing its work. A slight delay allowing the Government to rethink, reformulate and re-democratise the proposal would be wholly in order. I am sure that in their heart of hearts that is exactly what hon. Members are thinking tonight, having heard the arguments that have been put forward. No hon. Member would want to go into this long recess having taken a decision so unrepresentative of our country, our Parliament and the world in which we live.
There is another fundamental issue at stake that has not yet been addressed, which the amendment would also allow reconsideration of—the giving away of financial control and powers to the other place. Important debates and deliberations on the future of the other place are currently going on, such as whether it should be partially elected—80% elected—how many should sit in it, where they should come from and what the time scale for reform should be. Those are all important issues, not least to parliamentarians in this House. Pre-empting that by giving financial powers to the other place—as the proposal is, in essence, a move towards doing—by having it scrutinise the draft Financial Services Bill jointly with this House is a start on a slippery slope in relation to the historical division on financial matters that has existed ever since democracy in this place was established. The proposal begins to unravel that and one might think that there are some within the coalition whose very agenda that is—those who want a proportionally elected second Chamber that has those financial powers. It seems to me that they have managed to sneak in, through this proposal at this late hour and this late stage—indeed, it would have been without this debate had we not tabled this amendment—potentially a constitutional issue of profound ramifications. It would mean handing over, albeit the very first semblance of doing so, financial powers, decision-making powers and authority to a second Chamber that some want to become an elected Chamber in the very near future.
There will be different views about that and I do not intend to go into what those views are—that is for another day—but it is relevant to the amendment to point out the consequences. Hon. Members who vote through this unwise, undemocratic, unegalitarian, anti-regions, anti-nations, badly thought-out, badly timetabled, rushed and last-minute proposal will be opening this House to potential ridicule from future generations who come here. They will ask when was the moment when we handed over to the other place that first little bit of power in relation to financial matters. When did we allow the second Chamber—
On a point of order, Mr Speaker. May I put it to you that the question of the allocation of powers to the other place is completely outside the scope of the motion?
I thank the hon. Gentleman for his point of order. I was listening intently and I was about to say, which I shall now do, that we are concerning ourselves in this debate with the establishment, composition and remit of the draft Financial Services Bill Joint Committee, upon which subject the hon. Member for Bassetlaw (John Mann) is tabling and, I think, speaking to an amendment relating to a narrow part of the matter—namely, a particular member of the Committee. A wider dilation about possible future transfers of power, which might haunt the hon. Gentleman, are not subject matter for this evening’s debate, to which I know he will now return.
Thank you, Mr Speaker, for your advice. I seek your clarification on one important matter. It was my intention, as demonstrated by my previous remarks, to confine myself to one contribution, looking at the substantive motion as well as the amendment. I may be in error in so doing and may require a second speech. It was my intention to restrict myself to a single speech, and I seek your guidance in relation to that.
The hon. Gentleman should proceed with his speech according to his own lights. It is not the normal practice of the Chair to conduct a running commentary on the speech of any hon. Member or to advise an hon. Member in advance of when he might inadvertently be about to slip beyond order. The hon. Gentleman can protect himself.
Thank you, Mr Speaker, for that helpful guidance.
The final point that I wish to make in relation to the amendment is that the randomness of selection of an individual member to remove can have many motives and be for many reasons. This important proposal by the Government is fundamentally flawed in its make-up, as I have outlined, being English only and male only, with the Committee meeting as a priority during the summer and being a Joint Committee with the House of Lords.
The weakness of the usual channels, inspired by Government and the Government’s timetabling, has meant that we have not been able to have this debate without amendment. I therefore urge that in future when such matters are before the House, they should not be tabled to be nodded through at 10 pm with no debate or require objections from individual Members or groups of Members in order to stop that process, requiring an amendment to allow a debate both on the amendment and on the issues underlying the make-up of the Committee and the flawed and biased decision of Government in that regard. That is the Government’s responsibility. We as a House have a responsibility to hold the Government to account and to ensure that they do not get away with such sloppiness in their programming of legislation that they put legislation—
I am rather disappointed that my hon. Friend seems to be coming to the end of his speech, which I am enjoying so much. Does he agree that there are far too many tight programme motions in the Chamber and that we should have more thorough debates to make sure that every point can be thoroughly discussed, as my hon. Friend is doing?
Order. That is a most interesting intervention, but sadly it has absolutely nothing to do with the establishment, composition or remit of the Joint Committee on the Draft Financial Services Bill.
I shall therefore humbly ignore my hon. Friend’s intervention and conclude my remarks. As guardians of our democracy, albeit within the confines of the gentlemen’s club and the usual channels, and despite the weaknesses imposed upon us by the lack of modernisation, it is our responsibility and duty to expose flawed proposals, such as how the Government have unnaturally put together this unrepresentative and biased group without allowing us a debate that is timetabled in a proper and normal way. It is the Government’s responsibility to get that right, and I implore them to do so in future to save us having to object repeatedly at 10 o’clock at night to the flawed logic and bad politics that they have had to use—we all appreciate that it is a difficult time for the coalition—in order to try to hold these two ramshackle coalition partners together.