Superannuation Bill

Lord Newby Excerpts

Wednesday 10th November 2010 Grand Committee

[Lord McKenzie of Luton]

My Lords, that is an interesting question. I am not sure that I could quote a precedent, but the fact that it may be novel does not mean that it is not a good idea. Are we not dealing here with something that is quite a significant step? To date, there has been the requirement for agreement. We know why agreement could not be reached when we tried it and why, although it has not run its course yet, it is proving to be challenging as well.

We are moving from a position where there had to be agreement from everyone to one where there need be no agreement. That is in the context of a compensation scheme that will impact the lives of tens of thousands of people in a very big way. Therefore, it is not unreasonable that a process should be undertaken whereby Parliament has the chance to ask whether these have been genuine negotiations. I should make it clear that I do not in any way challenge what has happened today as not being a genuine attempt to reach agreement—I am certain that it has.

A big step is being taken here in asking others, in particular the trade unions, to give up that right for agreement, so requiring that there be a process of Parliament to say that the requirements of consultation and engagement have been met should be something that they would wish to look at. I stress that I am not saying that Parliament should have the opportunity to unpick an agreement and to substitute its own view on what the agreement should be, as that should come from the negotiation. That is the basis on which I moved Amendment 3.

[Lord Newby]

Following up on that point, if it is the noble Lord’s intention that Parliament should not unpick an agreement reached by the Government and the unions, what would be the consequence of Parliament not approving a deal that had been struck as a result of collective negotiation? Giving Parliament a veto over the negotiations seems slightly odd. I thought that noble Lords opposite were trying to get a system going again under which there was free collective bargaining, in which Parliament will not be involved, and that the Government and the unions would just negotiate a deal.

[Lord McKenzie of Luton]

The noble Lord raises a good point. The problem with drafting one’s amendments and writing one’s speaking notes later is that one realises that one might have covered matters in a fuller way. However, if, for example, in a particular case Parliament was clear on the basis of the report that there had not been a proper, full and sensible negotiation, one could envisage that the adverse changes to the compensation scheme—we are talking about adverse changes—would not be supported and that there had to be another process to address that. I accept that the amendment as drafted does not flesh out that detail, but we will reflect on that before Report stage.