Royal Bank of Scotland

Lord McFall of Alcluith Excerpts

Wednesday 1st July 2015 Lords Chamber

[Lord Ashton of Hyde]

My Lords, we have not ignored diversity. We are committed to increasing competition in banking to improve outcomes for consumers. The Government have an ambitious programme of reforms to increase competition in banking. This includes, for example, divesting both Williams & Glyn and TSB from RBS and Lloyds, creating a seven-day current account switch service, and delivering more data to enable customers to compare which bank is best for them—I could go on.

[Lord McFall of Alcluith (Lab)]

My Lords, the Chancellor of the Exchequer at the time of the bailout promised that all the money expended by the taxpayer would be recovered in full and that there would be a reformed Royal Bank of Scotland. Neither of those promises has been realised. The Royal Bank of Scotland has still to escape the shadows of seven years ago. Why is the Chancellor breaking his promise?

[Lord Ashton of Hyde]

I do not agree that he is. The Chancellor said two years ago that he would return RBS to private hands. He is doing that. He is increasing competition. RBS has been reformed. The independent advice is that this is the best time to go forward. We have reformed the banking sector completely. I cannot agree with the noble Lord.

Personal Independence Payments

Lord McFall of Alcluith Excerpts

Thursday 15th January 2015 Lords Chamber

[Lord German (LD)]

My Lords—

[Lord McFall of Alcluith (Lab)]

My Lords—

[The Lord Privy Seal (Baroness Stowell of Beeston) (Con)]

My Lords, we have heard from several Peers from the Labour Benches on this Question and we have not yet heard from a Liberal Democrat Member.

G20 Summit

Lord McFall of Alcluith Excerpts

Monday 17th November 2014 Lords Chamber

[Baroness Stowell of Beeston]

As my noble friend knows, sadly I was not at the G20 summit or privy to those discussions. What I know from the briefing that I have received is that there is agreement between the European leaders who were at the G20 and President Obama that this deal is incredibly important and they want to see it reached by the end of next year. If I can offer any more information to my noble friend after the Statement, I will certainly do so, but I can absolutely assure him that there is no unwillingness on behalf of the President to get this deal sorted.

[Lord McFall of Alcluith (Lab)]

My Lords, at Brisbane the issue of falling wages and job insecurity was discussed by a delegation of trade unions, including the general secretary of the TUC, Frances O’Grady, which met the German Chancellor Angela Merkel and President Obama. It is reported that the Prime Minister did not have time to meet them. Will the Leader of the House take a message back that this is a very important subject for ordinary working people in the country and that it would help both sides if the Prime Minister met Ms O’Grady and others to discuss the issue?

[Baroness Stowell of Beeston]

It is quite clear that jobs are at the absolute top of the Prime Minister’s agenda, and ensuring that the economy is on a sure footing and that more jobs can be created, as indeed they already have been. I have no doubt whatever that he continues to be absolutely committed to that.

European Council

Lord McFall of Alcluith Excerpts

Monday 27th June 2011 Lords Chamber

[Lord Strathclyde]

My Lords, I cannot help my noble friend in his extremely up-to-date question about what the Chinese premier said today to the Prime Minister. The Chinese Government have indicated that they would be willing to support the eurozone, which is very much to be welcomed. The Chinese population has as much of an interest in long-term financial stability in Europe as we have. We very much welcome their interest. I do not wish to overspeculate but I am sure that their help will be extremely useful in stabilising the eurozone.

[Lord McFall of Alcluith]

My Lords, is there not a need for more honesty in public utterances? Through our membership of the IMF, we are already contributing to the Greece plan. If we are to have the financial stability and growth that the Prime Minister wants, we need to engage positively so that we stabilise Greece and ensure that contagion does not spread to Spain in particular. Is there not a case for us engaging with Germany and other countries that are designated as rich to ensure that the rich countries help the poor to restabilise the euro? We could all then look forward to increased growth and prosperity.

[Lord Strathclyde]

My Lords, of course we are engaging in stability and growth. One of the conclusions of the Council was to do many of the things that the United Kingdom has been practising for some time. They include the encouragement of free markets in goods and the single market in services—particularly the digital economy—and new rules and regulations for micro-enterprises, which I know the noble Lord will be most interested in. It is very difficult to see how countries of the eurozone will get themselves out of the state that they are in by continuing to borrow in ever increasing amounts and not tackling the fundamental problem that underlies their economies, which is that they are spending considerably more than they can afford and that the international markets are growing nervous and are increasingly unwilling to lend to them.

Parliamentary Voting System and Constituencies Bill

Lord McFall of Alcluith Excerpts

Tuesday 25th January 2011 Lords Chamber

[Lord McFall of Alcluith]

I remind my noble friend that the Argyll and Bute constituency is a political construct from the previous Conservative Government. I well remember in 1994 pleading with the then Minister of State, Allan Stewart, “Do not take Helensburgh and put it into Argyll and Bute”. The people of Helensburgh had a difference with their representatives at the time, the Labour councillors, and rightly so, but they had a short-term interest in doing that. I represented the Helensburgh seat. Now, less than 10 years later, the Helensburgh people are saying, “It was wrong for us to go into Argyll and Bute”. The lesson is that if you carry out exercises in this House with politicians and do not include the Boundary Commission and the local element, you will get artificial constructs. That is the history of Argyll and Bute.

[Lord McAvoy]

I am grateful to my noble friend for sharing that local knowledge, because it is surely relevant when discussing amendments on Bills such as this one.

The noble Lord, Lord Strathclyde, calculated how much one vote was worth when compared with another. How does the calculation compare Orkney and Shetland, which has an electorate of just over 32,000, with, say, Rutherglen and Hamilton West, which has an electorate of 77,000? I am not having a go at the people in Orkney and Shetland; I am making the point—I am sorry that the noble and learned Lord, Lord Wallace of Tankerness, is no longer in his place—that a party and its supporters are taking the benefits of the toleration and support of people who quite rightly see the case for Orkney and Shetland, but those same people and the areas that benefit from that tolerance and consideration do not give an inch to other areas. The case of Argyll and Bute gets to me in particular. It is a case of “I’m all right Jack”, or “I’m all right Jim, but the rest of you have to suffer”.

The thing about this Bill and the various amendments is that a bit of a legend is being put about that I am the leader of the gang that is out to destroy this Bill. That is absolutely wrong. It is about time. I hope that the Cross-Benchers listen to what we are saying.

Parliamentary Voting System and Constituencies Bill

Lord McFall of Alcluith Excerpts

Wednesday 8th December 2010 Lords Chamber

[Lord McFall of Alcluith]

We who have campaigned in such elections, including in another one in East Ayrshire in my former constituency that produced similar statistics, along with all the parties who are represented in this House—and some that are not—know that that is exactly what happens. Before we impose this system more extensively and more widely as the only choice in the referendum paper, we should think carefully about the electorate’s experience of the system. I have to say to my noble friend that there is no party represented in this House that does not do exactly what he has identified—I include in that those who are the most active proponents of some form of proportionality.

[Lord Campbell-Savours]

My noble friend referred to an election in his former constituency, for which I have the results here. Was that the election in Ballochmyle in East Ayrshire?

[Lord McFall of Alcluith]

No.

[Lord Campbell-Savours]

Being a Welshman, I do not know how to pronounce these names. However, 43 per cent of second preferences, 63 per cent of third preferences, 74 per cent of fourth preferences and 77 per cent of fifth preferences were not used. That is before we get into the big “plumping” campaigns that will be imported from Australia. The results indicate massive abstentions on additional preferences. What are the implications of AV for general elections?

Parliamentary Voting System and Constituencies Bill

Lord McFall of Alcluith Excerpts

Monday 6th December 2010 Lords Chamber

[Baroness Butler-Sloss]

My Lords, may I ask the Leader of the House a practical question? Having sat through the debate on Amendment 5, which has lasted now an hour and 20 minutes, and bearing in mind that there is a great deal more of this Committee stage, is it actually practical for the Government to have 5 May as the date for this referendum?

[Lord McFall of Alcluith]

My Lords, I support the proposition of my noble friend Lord Rooker. When I came into this House a couple of months ago, I was told very quietly that this is a reflective Chamber, and we take our time here and mop up the mistakes made in the House of Commons by looking at Bills in a detailed way. If there ever is an opportunity to caw canny, as they say in Scotland, I think it is this amendment today. My noble friend Lord Rooker said it would not change anything; it would still give the Government freedom to decide when to have the referendum. When I participated as a very keen observer in the Scottish Parliament elections in 2007, in the constituency across the River Clyde from me there were 1,600 discarded and spoiled votes. The majority of our win was less than 100. The SNP then went on to govern Scotland as a result of a shambolic election. I spoke to the returning officers, and they said that it was done too quickly: that too many pressures were piled on them and that situation was the result. As my noble friend Lord McAlvoy has said, the debate here will end on 20 December until next year. All that administrative stuff has to be undertaken after the legislation has been passed. I fear that we could have another shambles as a result.

There is time for us to tell the Government that we can slow down. This is a radical Government in terms of the welfare reforms that they are implementing. A couple of months ago, the Chancellor stood in the House of Commons and pulled £17 billion from the hat. We do not know where those welfare reforms will hit. We know that there is a child benefit threshold for higher rate taxpayers. But last Thursday, the Treasury sneaked out a report stating that another 100,000 people will be taken into the higher rate tax threshold because it has been lowered by £1,400. As a former chairman of the Treasury Select Committee, I say that the problems are piling up for this Government and that they will be answered in perhaps a year or 15 months’ time.

It was the same in the House of Commons when the then Chancellor who went on to be Prime Minister abolished the 10 pence tax rate. I remember saying, “When you do anything in the tax system”, as noble Lords know, “there are always winners and there are always losers. Have you thought about the losers?”. At the time, the Government did not think about the losers. I suggest that there will be losers in the radical legislative proposals that this Government have put forward and that the questions will beg answers in one year or more.

Some problems are being played out at the moment; for example, tuition fees. I am a good friend of the Business Secretary, Vince Cable, but to say that he is standing on his head in terms of tuition fees is an understatement. My former friend Ann Widdecombe has shown us something on “Strictly Come Dancing” that Vince has not done on the tuition fees—simply because the problem has not been thought out.

My noble friend Lord Donoughue was in Downing Street with Jim Callaghan and has written an excellent book. He said that Jim Callaghan as Prime Minister had a “maybe man” in Downing Street. The Government might have had a policy, which they were going to implement, and the “maybe man” said, “Hold on. What are the implications of this?”. This is a “maybe man” moment in this Chamber, so that my noble friend Lord Rooker’s amendment gets the opportunity to be reflected on and the Government do not run headlong into a shambles of their own making.

[Lord Falconer of Thoroton]

My Lords, this is the sort of opportunity that the Government should take. My noble friend Lord Rooker’s amendment is modest and sensible. He is saying that it would be possible for the Government to have the referendum on any date between 5 May and 31 October 2011. He is not addressing the combination issue; nor is he addressing how long it would take to have proper debates. He is saying, “Give yourselves some flexibility”.

There are obviously two reasons for flexibility. The first is in relation to the administration of the election. In relation to the administration of the referendum, the Electoral Commission believes that,

“on balance … it should be possible to deliver the different polls proposed for 5 May 2011”.

I am quoting the chairman of the Electoral Commission when giving evidence to the Scottish Parliament. It is to be noted that that conclusion, she says, is expressly contingent upon “the key practical risks” being “properly managed”. The Electoral Commission has several times repeated that,

“the rules on how the referendum will be conducted must be clear from at least six months in advance”.

We are now less than six months in advance from the date of the referendum. It has added that,

“provided the Bill receives Royal Assent in time to allow a referendum period of at least 10 weeks, there will be adequate time for the Commission to register campaigners and designate lead campaigning organisations, and for campaigners to put the arguments to voters”.

Put neutrally, it is pretty obvious that there is a significant risk that the administration will not be ready by 5 May 2011. That should be looked at in the context of the Government not having consulted, before they chose 5 May 2011, either the Scottish Parliament or the Welsh Assembly. The Scottish Executive expressed the view that holding the referendum on 5 May 2011,

“shows a lack of respect for the devolved administrations”,

and,

“undermines the integrity of elections to the Scottish Parliament”.

As everybody knows, the Welsh Assembly Government are likewise opposed to holding the referendum on the same day as the Assembly elections.

The Select Committee of this House published its seventh report of the Session 2010-11. It was printed on 10 November 2010 and its cross-party unanimous conclusion was:

“Given that the Bill was introduced in the House only six months before the proposed referendum date, there is a danger that these deadlines will not be met”.

The obvious and sensible conclusion for the Government is to give themselves leeway if they cannot meet the deadlines, either because of organisational issues or issues in relation to scrutiny. A Government who say no to that are a Government in their early days. If they were more sensible, they would say, “Yes, I see the force of the argument and we will agree to that”. If the noble Lord, Lord Rooker, pushes the matter to a vote, we will support it.

--- Later in debate ---

[Lord Rennard]

My Lords, I think that I have been remarkably open and honest all the time I have been in this House speaking on these issues. The noble Lord’s argument suggests that perhaps until the 25th century we should keep the political system exactly as it is and ignore centuries of progress. I do not think that that would be fair or democratic. Perhaps we should say that, given that 2,000 years ago in Athens people all turned up to vote on issues, we should have that sort of system now. I am not arguing that my system or my preference should be imposed on the British people. I am simply arguing that the British people themselves should have the democratic right to say for themselves how their representatives should be chosen. I do not understand how people who consider themselves democrats can resist that fundamental democratic principle.

[Lord McFall of Alcluith]

Does the noble Lord view the referendum as an event or a process?

[Lord Rennard]

All electoral processes and all elections are constant processes. However, if we kept things as simple as they were in 1872, it would be quite inappropriate. We no longer have a two-party system, as we had then, and which perhaps we had in 1950 or 1951. We are talking in these debates about respect for Scotland and Wales, and the same noble Lords who say that we should respect those countries, where there are four-party systems, at least, in operation, are still trying to perpetuate a voting system only appropriate to two parties. That does not respect people who support other options and, in particular, the people of Scotland, Wales and Northern Ireland.

--- Later in debate ---

[Lord Grocott]

But why on earth, if the noble Lord’s argument does not apply in Europe—and empirically I can show him that it does not apply—why would it suddenly start applying in Westminster elections? I just cannot understand the point.

[Lord McFall of Alcluith]

Maybe this will help the noble Lord, Lord Phillips. Since devolution took place in Scotland, in 1998, the turnout for Westminster elections under first past the post has been the greatest of all; followed by the Scottish Parliament with proportional representation, which has been less; followed by the European elections, which has been even less. Can the noble Lord tell us why that is?

[Lord Grocott]

I will even try and trump my noble friend on my knowledge of Scottish elections. I agree entirely with what he said and the implication of what he said. However, is it not also true to say that in what was described as the laboratory of a Scottish election for the Scottish Parliament—where people have two votes, one for PR and one for first past the post; and that is as near a laboratory as you will ever get in an electoral system—in election after election, more people turn out for the first past the post option than they do for the PR option. With this kind of debate, the whole of the discussion takes place as if nothing has happened, A lot has happened. A lot of electoral systems have been tried. Those who were suggesting, insisting on, demanding reform—for there was a huge public demand for a change in the electoral system—have been proved conclusively and unarguably wrong in terms of the benefits they told us would accrue if their proposals were accepted.

Legislation: Pre-legislative Scrutiny

Lord McFall of Alcluith Excerpts

Thursday 28th October 2010 Lords Chamber

[Lord Strathclyde]

My Lords, I am sure that my noble friend will find as the Parliament gathers pace that there are more and more Bills for pre-legislative scrutiny. I made the case at the beginning that—in the very first Session of a Parliament, particularly when many of the ideas we are bringing forward were tested at the anvil of election and, indeed, while we were in opposition—it would be unfair to have a mandatory basis for pre-legislative scrutiny.

[Lord McFall of Alcluith]

My Lords, perhaps I may remind the Government of a Bill that they introduced early in the 1992-97 Parliament—a raves Bill dealing with the tragic deaths of young people in nightclubs in Scotland. It was a three-clause Bill and we subjected it to pre-legislative scrutiny. The major clause was the third one. The then Minister, after the pre-legislative scrutiny and the visits we made, informed me that the Government were withdrawing that clause. Does that not tell us that Parliament, left on its own, can foul up in the most magnificent way, and therefore that the need for pre-legislative scrutiny of every Bill is urgent?

[Lord Strathclyde]

My Lords, I totally agree with the broad thrust of the noble Lord’s argument—that pre-legislative scrutiny is important and useful. The noble Lord is also right. If you look at many of the Bills that were passed over the last 13 years, you wonder how many of them would have been improved with a bit more pre-legislative scrutiny.