Credit Unions

Lord McFall of Alcluith Excerpts

Thursday 16th January 2014 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, there is a lot of nudging going on but, as the noble Lord will know, there are employee-based contributions to credit unions and employer-provided contributions to credit unions. The Government are aware that it is not without cost to run an employer-based set of contributions, particularly, again, if you are trying to roll it out across the entire country, in which there are some 340 locally based credit unions.

[Lord McFall of Alcluith (Lab)]

My Lords, it seems that there is a need for more diversity in financial services. Would it not be a good example if the House were to send out a message that we are leading the way on this? The common bond is government employees, so that should be easy. In terms of pursuing this enthusiastically, could the Minister ensure that a cost-benefit analysis is undertaken and that it is placed in the Library, so that Members can see it and can have a part in ensuring that we push for a credit union and be an example to the rest of the country?

[Lord Wallace of Saltaire]

My Lords, I will take that back and see what we can do about a cost-benefit analysis. I should mention that, apart from the Houses of Parliament, the other department of government that already has an employer-based credit union arrangement in place is the National Offender Management Service. Members will consider whether they think that is a good parallel to our work or not.

Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Lord McFall of Alcluith Excerpts

Wednesday 6th November 2013 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, I beg to move the Motion standing in my name on the Order Paper.

[Lord McFall of Alcluith (Lab)]

My Lords, by mismanaging the lobbying Bill, the Government are wrecking the work of the Parliamentary Commission on Banking Standards, which was set up to reform the culture in the banking industry, by bringing forward this Bill early—on 18 November. That is the unanimous view of all members of the banking commission, who have said that they need until the new year to study these government amendments for the simple reason that this is an entirely new Bill. This is a Bill that left the House of Commons 35 pages long. It is now more than 160 pages and the government amendments are four times the size of their original Bill. This morning I spoke to Andrew Tyrie MP, the chairman of the commission, who said that if the Government go ahead before due consideration to this increasingly complex and dense legislation, the Parliamentary Commission on Banking Standards will not be able to carry out the mandate that the Government gave it to reform the banking industry. The collective efforts over one year—almost 200 hours of public evidence and 10,000 questions —will be wasted. The Government will not only be betraying their promise when they established the commission, but will be seen and disowned by members of the commission for indulging in cynical, low, political-level, sharp practice. I ask the Government to think again and give due time to the Parliamentary Commission on Banking Standards by bringing this Bill back in the New Year when it is appropriate.

[Lord Lawson of Blaby (Con)]

My Lords, as a fellow member of the banking standards commission, I agree with the conclusion reached by the noble Lord, Lord McFall, that the Leader of the House should think again about this important matter. I have great sympathy with him. I understand that the parliamentary timetable has been complicated by the late change of plan on the lobbying Bill and that presents him with a difficulty, but it would be wholly wrong to put Report of the banking Bill in as a stopgap. This is a massively important Bill. It is a completely different one from the Bill that emerged from the other place. It is hugely larger—about five times—and extremely complex. In Committee, a number of noble Lords asked for a particularly long gap between Committee and Report, and I was under the impression that the Government were extremely sympathetic to that. Now they are suddenly putting it forward as a stopgap.

That is the main reason for making this objection, but there is another one. The most reverend Primate the Archbishop of Canterbury cannot be in his place today because he is abroad, but he was an active member of the banking commission. I spoke to him by telephone this morning. He is most anxious to take part in Report and, as a member of the banking commission, he has strong and informed views on a number of the issues. The week that the Government have now chosen is the week of the annual Synod of the Church of England, over which he has to preside, which means that he cannot be present. I urge my noble friend to think again.

Extension of Franchise (House of Lords) Bill [HL]

Lord McFall of Alcluith Excerpts

Friday 5th July 2013 Lords Chamber

[Lord Parekh]

My Lords, I support the Bill introduced by my noble friend Lord Dubs. Ever since I became a Member of your Lordships’ House, I have asked myself why we are not allowed to vote in parliamentary elections. In fact, the first Question that I asked, on 17 January 2001, was precisely this: that on the grounds of human rights and equality of treatment, we ought to be able to vote. The debate that took place following that Question makes interesting reading, because many of the points being made today seem to rehearse some of those made at that time.

Generally, there seem to be two arguments as to why we cannot vote. One is that it is an established practice, reference being made to immemorial law and common-law practice. The other has to do with the fact that we are already here, present and in person, and therefore do not need to be represented. I find both arguments somewhat flimsy. Let me take them one by one.

On the first argument, how did this become an established practice? It is not a law or something to which the House of Lords ever consented. It was a House of Commons resolution passed in 1699. If one looks at the debate surrounding the passage of that resolution, it is clear that in those days of rotten boroughs the Commons were very concerned that the Lords should not be able to influence local elections. It was designed to stop us interfering in the election. The Lords never agreed, were never consulted and were never involved. That resolution is not sacrosanct because it has been amended, first in the Peerage Act 1963 and then in the House of Lords Act 1999. Under the resolution of 1699, no Peer could vote. That was changed in 1963 so that Peers could vote, provided that they were not Members of the House of Lords—and for years, hereditary Peers have been able to vote without any kind of objection, legal or otherwise, so that practice is not sacrosanct. It has been changed and if it could be changed once, it could be changed again provided we are convinced that there is a reason to do so.

I want to argue that there is a reason to do so. That leads me to the second defence of this practice, which is that we are here in person. When I asked that question on 17 January 2001, I was told by my noble friend Lord Bassam that, since we are already here in person and are entitled to voice our feelings and express our views, to allow us to vote in the election would be to give us a unique privilege which is not given to others. I found that argument unpersuasive but during Question Time we are not at liberty to pursue the debate any further. I want to do that now.

[Lord McFall of Alcluith]

My Lords—

[Lord Parekh]

I am sorry. May I just finish this argument? When we are told that we are here in person and therefore need not be represented by the parliamentary election, we are making an important assumption: that the two Houses have equal powers. If they do not have equal powers, that argument collapses. If the Commons could do certain things that this House cannot do, then the fact that we are here in person does not give me a unique privilege if I should be entitled to vote for the other place. For example, the Commons can make and unmake Governments. It has the power to impose taxes and deal with money Bills, which we do not have. Equally importantly, under the Salisbury convention, if a particular measure of a Government or political party has been approved by the majority, the party concerned has a right to enact it—irrespective of what we think.

I am suggesting that the Commons has far greater power, and rightly so as it is the pre-eminent body. If it is the pre-eminent body then our simply being here in person but unable to vote deprives us of the opportunity to do many of the things that the Commons does and which we cannot. I therefore suggest that not being allowed to vote deprives us of the equality of treatment to which all citizens are entitled. I will give way. I just wanted to make sure that I made that point straight.

[Lord McFall of Alcluith]

As a Member of the other place for 23 years, I was both here in person and proud to vote for myself in every general election. Is it not the case that House of Lords Members are disadvantaged, and would be allowed to vote in future for someone other than themselves?

[Lord Parekh]

If we were allowed to stand, we could certainly vote for ourselves too. Logically, the argument that we are here in person and therefore should not be allowed to vote because we do not need to be represented is a flawed one. Once you undermine that argument, there seems to be no logical basis for us not being allowed to vote.

There are of course other arguments: that one should not make a piecemeal change, as it should be part of a larger change. Well, larger changes are made up of small changes and unless you start by taking the first step somewhere, you would not be able to cover the journey. We are also being told that this is not the time. When is the right time? Who decides that and by what criteria? If, for the past 250 years, we have been saying “Let’s change this”, given that I asked that Question in 2001 and my noble friend Lord Dubs has introduced this Bill, there is already a feeling of momentum—a groundswell of opinion—that if citizenship consists in being able to have a say in shaping the Government of the country, we are not citizens if we do not have that say. Symbolic as it is, that simple point is of great significance and I strongly urge the House, as and when the time comes, to vote for the Bill.

Retail Prices Index

Lord McFall of Alcluith Excerpts

Wednesday 24th April 2013 Lords Chamber

[Lord McFall of Alcluith]

My Lords, in order to overcome the notion of dodgy statistics, the Minister will be aware that Parliament set up an independent body in the UK Statistics Authority which was first chaired by Sir Michael Scholar. As a result of that, he and others have resisted the massaging of statistics by politicians. Is not the UK Statistics Authority a bulwark to prevent the massaging of statistics by politicians? Therefore, we must commend the work of the UK Statistics Authority and resist any breach of it by politicians or others.

[Lord Wallace of Saltaire]

My Lords, one of the best things done in this area by the previous Government was to establish the UK Statistics Authority as an independent body. The decision was criticised on all sides. Some noble Lords will remember the article in the Financial Times by Chris Giles which said that it was appalling not to have abolished the RPI and move all the way towards the CPI.

Public Services: Security of Provision

Lord McFall of Alcluith Excerpts

Wednesday 19th October 2011 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, one or two of the providers of public services in the private sector are now among the largest companies in Britain and the world. Noble Lords who read the financial pages may know that G4S has just taken over another major multinational company. Liberata, a back-office outsourcing firm, nearly went bankrupt in 2008, partly because of its pensions liability, and had to be restructured. It is now partly owned by its employees and partly owned by the Pension Protection Fund. The Government, as with all others in such circumstances, do get engaged in trying to re-establish companies in difficulty that are playing a valuable role.

[Lord McFall of Alcluith]

My Lords, given the sorry example of Southern Cross and the burgeoning outsourcing of public services, which is estimated to go from £80 billion to £140 billion by 2014, is there not a case for the utmost transparency on the part of the Government through extending freedom of information to private companies undertaking public services so that they can catch the failed business model, which they did not do in the case of Southern Cross?

[Lord Wallace of Saltaire]

My Lords, I have to repeat: one cannot entirely eliminate financial risk from activities which take place either in the private or the financial sector. We all know that cases of mismanagement have taken place in schools, hospitals and other areas in the public and private sector. The Government have established a new major projects authority within the Cabinet Office and a group of strategic suppliers. They are working extremely hard to ensure that as much transparency as possible can be provided. However, if the noble Lord thinks that there is insufficient transparency, I encourage him to return to this issue on future occasions.

Scotland: Civil Service

Lord McFall of Alcluith Excerpts

Thursday 6th October 2011 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, the noble Lord will recall that on an earlier occasion the SNP strongly recommended that the population of Scotland go and see that dreadful film “Braveheart”, one of the most historically inaccurate films that I am aware of.

[Lord McFall of Alcluith]

My Lords, the Minister says that he should not criticise civil servants’ actions or behaviour. Why is that the case when the Permanent Secretary crosses a line that he should not? Will the Minister ensure that the Cabinet Secretary writes a letter to him, which is then placed in the House of Commons Library so that we can ensure that the proper constitutional arrangements are maintained in this country?

[Lord Wallace of Saltaire]

My Lords, I have already said that the Cabinet Secretary will write a letter in response to the three opposition leaders in Scotland. As the noble Lord knows well from the press, the Cabinet Secretary has already visited Edinburgh and a copy of the letter to those opposition leaders will be placed in the Libraries of both Houses.