Queen’s Speech

Lord Razzall Excerpts

Monday 16th May 2022 Lords Chamber

[Lord Razzall (LD)]

My Lords, as many noble Lords have said, the UK economy is clearly in difficulties. In economic terms, growth in GDP is stagnant. GDP even reduced in March. Inflation is forecast by the Bank of England to reach 10% and, notwithstanding recent gloating by Brexiters, it is now clear that our growth rate will be lower than in all other G7 countries. In personal terms, the increase in the cost of living has driven millions into food and fuel poverty and, whatever the Prime Minister has told the Daily Mail, we may be heading for a recession.

Obviously, many factors are not the Government’s fault—the pandemic and its aftereffects, the increase in world energy costs, and the war in Ukraine and its international effects—but one factor is entirely the fault of a Government who are run by a Tory party that most people now regard as the Brexit party. It is the effect of Brexit on which I wish to concentrate my remarks. The numbers are stark. The OBR has confirmed that Brexit will reduce our GDP by 4% per annum, significantly more than the effect of the pandemic. Investment reveals the same disaster. Between 2017 and 2020, foreign investment was at the lowest levels since the 1980s. The NGO UK in a Changing Britain calculates that Brexit has pushed our food prices alone up by 6%, and the exodus of EU workers has led to record job vacancies that will soon drive the growth in inflation. However, the greatest disaster has been the impact of Brexit on trade. As Simon Nixon said in the Times last week:

“Six years after the referendum, no one has yet been able to identify any rational alternative to integration with Britain’s closest trading partners.”


On the Government’s own admission, the recent Australia and New Zealand trade deals will have no significant economic impact.

Trade is vital for our economic growth. In January the trade deficits were the biggest on record: £26.5 billion for goods and £16.2 billion for goods and services. All G7 countries except the UK have seen growth in trade as a proportion of GDP since 2020, and the UK is down even from that low point. The OBR says that there will be a 15% drop in our trade as a proportion of our GDP and that our new trade deals since Brexit will compensate for only a tiny fraction of our losses from Brexit.

So the most effective action by the Government to ease the cost of living crisis would be to ease barriers to trade caused by Brexit. New trade barriers cause a significant supply side shock, with customs checks, rules of origin requirements and phytosanitary measures for trade in animals and plants, let alone the need for regulatory compliance with each jurisdiction separately. Of course, the Government want British-only regulation and safety certification of industries, but does it really make sense, for example, for the chemical industry to pay for distinct British registration when it already pays for the EU gold standard?

What do we have for the Government? Egged on by the noble Lord, Lord Frost, who I see is not in his place, they seem to want to tear up the Northern Ireland protocol—which, whatever the Attorney-General says, must be in breach of international law. This is intentional Russian roulette that risks the suspension of our trade agreement with the EU and the supply shock that would result. The gracious Speech provides for a Brexit freedom Bill, giving the Government the power to rewrite rules with minimum parliamentary scrutiny—are we surprised by that?—with no indication of the rules that will be rewritten.

However, do we have the beginning of an admission from the Government that Brexit is not working? Mr Rees-Mogg has announced a delay to the introduction of border checks, admitting that their enforcement would be an act of self-harm. This means costly checks for exporting UK farmers, while exporting European farmers have no such hassle. But it is a recognition that putting up barriers makes food more expensive for consumers, as we remainers always said. We also have the Chancellor of the Exchequer admitting to the Treasury Committee in another place that Brexit is inhibiting UK trade. Of course, the Prime Minister will not accept this, telling the Liaison Committee that it is a matter of exporters not trying hard enough. Whatever the noble Lord, Lord Forsyth, said earlier about her, the Prime Minister should listen to Swati Dhingra, the new member of the Bank of England’s Monetary Policy Committee, who says that Brexit is costing every citizen up to £1,000 per year. I know that the noble Lord, Lord Callanan, will not agree, but will the Government listen and take appropriate action to modify the disastrous impact of Brexit?

Employment Bill

Lord Razzall Excerpts

Wednesday 6th April 2022 Lords Chamber

[Lord Callanan (Con)]

We have an excellent record for job creation in this country, and our unemployment rates are much lower than many others on the European mainland, but I totally accept the point the noble Lord is making. We must all redouble our efforts to make sure that those who are disabled get the same opportunities to work as the rest of us do.

[Lord Razzall (LD)]

My Lords, will the Minister confirm that when the Bill eventually arrives, it will progress the so-called good work agenda, enabling workers with variable hours to request a more stable and predictable contract? I am sure the Minister is aware that the EU transparent and predictable working conditions directive will introduce similar rights on an EU-wide basis from August 2022. Will he confirm that the reason for delay in the Bill is not to avoid similarity with Europe on these issues?

[Lord Callanan (Con)]

Of course all EU employment directives were transposed into UK law, but they are a minimum standard in many circumstances. As the noble Lord will know, we go far beyond EU minimum standards and we should be proud of that.

Trade Union (Levy Payable to the Certification Officer) Regulations 2022

Lord Razzall Excerpts

Monday 7th March 2022 Lords Chamber

I hope—not with much expectation—that the Minister will adopt a sensible and proportionate course of action this evening, but in the absence of that, I hope the House will support my amendment to the Motion. I beg to move.

[Lord Razzall (LD)]

My Lords, like many debates on statutory instruments in this House, the real substance of this debate is not particularly about the topic on the agenda. A moment’s thought will tell us that this is really about party funding. Of course, the noble Lord, Lord Bassam, on behalf of the Labour Party, has to oppose this in the way the Labour Party will oppose most attempts to place any form of restriction on the trade union movement. As we all will realise, historically, the Labour Party started as the political wing of the trade union movement. Of course, in recent years Labour is even more dependent on funding from the trade union movement.

I have obviously been a critic for many years of our system of funding, which has led Labour to be in a position where they require this, but the problems Labour has are as nothing compared with the current funding problems of the Tory party, with Russian donations and skirting very close to the line on the sales of honours. I do not think it is for the Tory party to criticise Labour for taking the position of the trade union movement on this.

I have every sympathy with the noble Lord, Lord Bassam, on this issue. As he and one of his colleagues in the House of Commons commented, to make trade unions pay for certification is like making charities pay for the Charity Commission. That is a very valid point that the Minister needs to answer.

As the noble Lord, Lord Bassam, indicated, the sums taken from the unions, for minimal advantage to the taxpayer, would mostly be spent on the necessary protection of their members. I know people assume that unions are simply political activists, but most of the money they raise is spent on that. This money will be taken directly from their members and will not be used for that purpose.

Finally, I thought the noble Lord, Lord Bassam, went slightly light on the Tory party and the Government on this issue. Having watched them over my 25 years in your Lordships’ House, I think that hostility to the trade union movement is deep in the Tory party’s DNA. It goes back to the reforms created by Margaret Thatcher, which they believe sets the standard for all future activity by the Tory party. It is unfortunate. I support the noble Lord, Lord Bassam. These proposals are very unfair.

[Lord Woodley (Lab)]

My Lords, this is the first opportunity I have had to speak since my near-death experience nine months ago. It would be wrong not to thank the Lord Speaker for all the support he has given me and my family and to thank the rest of the noble Lords here who know what has gone on. I also thank Dr Wong in Liverpool general hospital for somehow saving my life. It is a privilege to be back.

I declare an interest as the former leader of Unite. This levy is correctly being called a trade union tax. Indeed, it is nothing less, as we know, than an ideological attack on workers and their families. It is part of a pattern of anti-trade union legislation that also includes the Elections Bill. As the previous speaker just said, taxing trade unions to fund their own regulator makes as much sense as taxing charities to fund the Charity Commission. It could be up to 2.5% of annual income. How on earth can that be justified? How on earth can that be right? By taking this money from trade unions, the Government are restricting their ability to support members at work at a time when workers are facing a cost-of-living crisis and trade union help is needed more than ever.

The new regulations unfortunately also open the door to vexatious complaints—whether from vindictive employers, far-right organisations or even the Conservative Party itself—which threaten to consume the regulator’s time and resources, and therefore cost more money for the trade unions. Is that the aim? As has been said, last year, 34 complaints were made to the Certification Officer and no enforcement action was taken. Clearly, this is a solution to a problem that does not exist. Unions naturally fear that this number will dramatically rise when absolutely anybody, not just union members, has the power to make complaints. Of course, it will be the unions who foot the bill.

I will close on some straightforward questions for the Minister, one or two of which have already been mentioned. Why are the Government bringing forward these aspects of the Trade Union Act 2016, but not making any progress on the important issue of electronic balloting? Where are the pilot projects called for in the Knight review, which could be very helpful? We find ourselves in a situation where they are not being brought forward now. Is it the very fact that, democratically, people do not want trade unions to really be democratic? It is just an attack. Could the Minister also tell me when we can expect to see the much-promised employment Bill that will

“make the UK the best place in the world to work”—

a manifesto commitment no less, unlike so much of the government business we are currently dealing with—or was this just an empty pledge to fool the workers into voting for the bosses’ party at the last election? Actions speak louder than words, and this cynical and repressive trade union tax speaks for itself. We must stop or remove this vindictive legislation.

Steel Sector

Lord Razzall Excerpts

Monday 12th July 2021 Lords Chamber

[Lord Callanan (Con)]

I know that the noble Baroness feels passionately about these matters, and we share her enthusiasm for decarbonising the industrial sectors as quickly as possible. She will know that decarbonising UK industry is a core part of the Government’s plan for a green industrial revolution, which I am sure she will support. The industrial decarbonisation strategy commits the Government to work with the steel council on the implications of the Climate Change Committee’s recommendation for UK-based steel makers to be carbon neutral by 2035.

[Lord Razzall (LD)]

My Lords, the Minister will obviously be aware of the significant role of GFG in our steel industry. Have the Government permanently ruled out the provision of finance to GFG and its plants? If this is only temporary, are the Government investigating GFG and, if so, which departments are doing so and is the Minister confident that a conclusion will be reached shortly?

[Lord Callanan (Con)]

Ultimately, it is of course for the company to manage its commercial decisions for the future and to find a successful buyer, but we hope this company succeeds with its plans to refinance. With regard to investigations, the noble Lord will know that I cannot comment.

Corporate Insolvency and Governance Act 2020 (Coronavirus) (Extension of the Relevant Period) (No. 2) Regulations 2020

Lord Razzall Excerpts

Tuesday 19th January 2021 Grand Committee

[Lord Razzall (LD) [V]]

My Lords, like other speakers, I support these regulations, but I will touch on three points, two of which have been touched on by earlier speakers.

I note that no impact or economic assessment has been made of the effect of the regulations since they were brought in in the summer. Do the Government have any idea of how many liquidations have been postponed under these regulations and their predecessors? Presumably someone could look at how many liquidations took place in an equivalent period before Covid and at how many have not occurred since. I have no idea of the magnitude of the issue we will face once these regulations come to an end—which actually brings me to my second point.

A number of noble Lords indicated their concern that we must not get to the position, when these regulations end, where companies simply fall off a cliff into liquidation. Clearly, the Government must have given some thought to what is likely to happen, and it will be very helpful if the Minister, although not wanting to be pinned down on that, can give us some indication of the Government’s thinking. As other noble Lords have said, the lobbying organisation has suggested that HMRC should be invoked to help a soft landing, but I should welcome the Minister’s comments on whether further thought has been given to how we have a soft landing.

My third point is technical. As the noble Lord, Lord Bourne, said, it is not just the threat of being wound up that keeps company directors awake at night; it is also the question of protection from charges of wrongful trading. This was recognised by the Government in providing protection against both liquidation and unlawful trading until 30 September, but, unfortunately, although the winding-up suspension was extended to 31 December—and now further by these regulations—the wrongful trading protection was not extended at the same time, and made effective only from 26 November last year. I cannot believe this was deliberate, but was presumably an oversight, but it means that, theoretically, directors could be liable for wrongful trading from 30 September to 26 November last year. Can the Minister please confirm that directors will have protection for their actions during that period?

United Kingdom Internal Market Bill

Lord Razzall Excerpts

Committee stage & Committee: 3rd sitting (Hansard) & Committee: 3rd sitting (Hansard): House of Lords
Monday 2nd November 2020 Lords Chamber

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

The noble Lord, Lord Naseby, has withdrawn, so I now call the noble Lord, Lord Razzall.

[Lord Razzall (LD)]

My Lords, I will be brief, unlike many earlier speakers in this Committee, who clearly were revelling in being freed from the tyranny of two, three and four-minute speeches. As the evening goes on, I think we come back to the discipline of being brief.

As to whether Clauses 31 to 37 should not stand part of the Bill, the arguments have been well rehearsed earlier and at Second Reading, but I shall reiterate why they seem appropriate here. Why are we rushing to legislate at this stage in this area? Why are we not working with all four Governments to arrive at agreements and to legislate when necessary? As noble Lords who followed this will be aware, the process of managing the United Kingdom internal market through common frameworks has not yet been exhausted. I do not accept the argument of the noble Lord, Lord True, at Second Reading, that the list that has been dealt with by the common frameworks is not exhaustive. Those discussions can continue to take place.

Why are we not continuing to work with the four Governments and to legislate when needed? Why do we not establish a properly independent body representing all four nations in due course, and then legislate? I support the deletion of all those clauses; they should not stand part of the Bill.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

The noble Lord, Lord Judd, has withdrawn, so I now call the noble Baroness, Lady Hayter of Kentish Town.

OneWeb

Lord Razzall Excerpts

Wednesday 8th July 2020 Lords Chamber

[Lord Callanan]

This is, as I said, a one-off investment in a cutting-edge satellite technology company which has many applications that the UK can leverage, including defence applications and providing communications, resilience and remote operations where services are currently limited.

[Lord Razzall (LD) [V]]

My Lords, following up the question by my noble friend Lord Fox, are the Government not concerned that the American technological market, which undoubtedly loves these sorts of investments, was not prepared to put in the money and so the company was forced into Chapter 11 bankruptcy? Do the Government accept that very significant further investment will be required to get this off the ground? Are the Government prepared to do that—and, if so, for how much?

Covid-19: Businesses and the Private Sector

Lord Razzall Excerpts

Thursday 21st May 2020 Lords Chamber

[Lord Razzall (LD)]

My Lords, I obviously agree with everything the noble Lord, Lord Dobbs, has said in praise of the private sector. It is now a statement of the obvious that the private sector has been debilitated by the Covid pandemic. Claims for unemployment rose by 69% between March and April, the largest month-on-month increase since records began. The private sector has borne the brunt of economic collapse. What does it face when we return to the so-called new normal?

The Chancellor warned us on Tuesday of a recession like no other that we have seen before. He also warned the House of Lords Economic Affairs Committee that it was not obvious that there would be an immediate economic bounce-back. In practical terms, this means that key sectors of our industry will have difficulty recovering. The hospitality and entertainment sectors represent a key part of our economy, but how will our restaurants, pubs, theatres and cinemas remain economically viable if they have to enforce social distancing? Good luck to the taskforce announced yesterday to tackle these issues.

In economic terms, the numbers will be dire. The Bank of England predicts 2 million job losses this year, taking unemployment dramatically higher, most of all from the private sector. This is on top of the 7.5 million people on the furlough scheme, many of whom may not keep their jobs when the scheme ends. Clearly, we cannot go back to the world before the virus, so surely this is an opportunity to restructure the way the private sector operates. It is obvious that many companies are overloaded with debt. Inevitably, some of the debt will have to be converted into shares. Is this not an opportunity for increasing worker participation and share ownership, a long-held aspiration of the Liberal Democrats?

Talking of the Liberal Democrats, noble Lords will expect me to touch on Brexit. Until we know how the UK can trade back to solvency outside the European Union, surely it is time to extend our transition period and trade talks until the economy has stabilised.

Coronavirus Business Interruption Loan Scheme

Lord Razzall Excerpts

Tuesday 12th May 2020 Lords Chamber

Asked by

[Lord Razzall]

To ask Her Majesty’s Government what assessment they have made of the operation of the Coronavirus Business Interruption Loan Scheme for small- and medium-sized businesses.

The Question was considered in a Virtual Proceeding via video call.

--- Later in debate ---

[Lord Razzall (LD)]

Does the Minister accept that, although the number of loans is quite large, the number of SMEs receiving them as a proportion of the whole is relatively small? Is he concerned that, under the two existing schemes, banks are primarily lending only to people to whom they would have lent anyway in normal times? This is particularly hitting the hospitality and retail sectors.

[Lord Callanan]

The noble Lord is right that only a relatively small proportion of the total number of SMEs have applied for or received loans. However, it is important to remember that not all businesses want loans, and of course other government support schemes are also available to help them through the crisis.

Whirlpool Tumble Dryers: Product Recall

Lord Razzall Excerpts

Monday 17th June 2019 Lords Chamber

[Lord Henley]

My Lords, I am not sure where the noble Baroness gets her figures, but they were faintly alarmist. She claimed that a third of all fires caused by domestic appliances were caused by tumble dryers. The figures I have show that the number of fires caused by domestic tumble dryers is coming down. There were only 724 last year, down from 808 the previous year—a 10% fall. I am told that in the figures for 2017-18, if you take all domestic appliances, some 16,000 fires were caused by electric appliances—so tumble dryers did not cause a third of them, as the noble Baroness claimed.

I will not defend Whirlpool, but it has mounted a fairly large operation to try to identify where the appliances are. It is reckoned that Whirlpool has got to something like 50% of the tumble dryers that need to be looked at, and there are probably another 500 or 1,000 or so to get at. We welcome Whirlpool’s response on what it is doing to identify those machines, get at them and make the appropriate modifications. As I said in the Statement, the number of fires in modified appliances is significantly lower than in those that have not been modified. I must repeat that the manufacturer has the responsibility to ensure product safety, and it should be for the Government—which is what we have done here—to take the appropriate action to hold it to account.

[Lord Razzall (LD)]

My Lords, I have one small point and two questions. My small point is that I am very glad that the noble Baroness, Lady Neville-Rolfe, is in her place, because she has been fighting this campaign for as long as I can remember. Whether she regards this as progress we will see when she rises to her feet.

I turn to my first question. I know that the Minister has been trading numbers with the Labour Benches, but the government information is that 750 fires in the last 11 years have been caused by tumble dryers. Bearing in mind that we are very close to the anniversary of the Grenfell fire, will the Government confirm that they are taking all steps to ensure that tumble dryers in tower blocks will no longer provide any threat of further fires?

My second question, which is not surprising coming from these Benches, is: will the Minister confirm that, whatever the terms of Brexit—whether it is with no deal or a new deal—the health and safety issues regarding tumble dryers will be as strong as they are today with regard to imported dryers?

[Lord Henley]

My Lords, all I can say is that I await my noble friend’s question in due course. As for the number of fires caused, I quoted the figure, saying that some 724 last year were caused by tumble dryers but that that was a decline. One must remember that any white goods are going to have a risk, and the important thing is that manufacturers ensure that they are as risk-free as possible. That is why on this occasion, as I said, we want to hold Whirlpool to account and ensure that it gets to as many machines as possible to make sure that they are dealt with. However, it is right and proper that we not only deal with tumble dryers where there is a problem but ensure the safety of all other white goods.

On the question of our exit from the EU, I assure the noble Lord that the department will make sure that safety remains an absolute priority in dealing with these matters. Ensuring that we have a robust system of market surveillance to make sure that we can protect our border from unsafe products will be a priority for the department.