Growth and Infrastructure Bill

Lord Renton of Mount Harry Excerpts

Wednesday 30th January 2013 Lords Chamber

[Lord Renton of Mount Harry]

My Lords, I declare an interest in this matter, as I live in the South Downs National Park; indeed, I have lived there for a great many years. I was pleased by and interested in what the noble Baroness, Lady Parminter, said, which I strongly support.

Under subsections (1) and (2) of Clause 8, the Secretary of State can make regulations that will override the duty on the national parks to conserve beauty, from the 1949 Act, in favour of promoting economic growth. The same applies to the duties of the public authorities in the Countryside and Rights of Way Act 2000. What does this mean? It means a tremendous falling off of the power and strength of national parks, to be taken over by the relevant Minister.

In that connection, I cite one instance from my area. A year ago, E.ON submitted a planning application to run a cable from near Worthing—where it will emerge from the sea, connecting 100 wind turbines that are to be built about seven miles offshore from Seaford—to E.ON’s substation in Bolney, some miles from Brighton. This takes away from any real strength on the part of the South Downs National Park. It is proposed that the cable will be laid across the downs; it will be put underground. After some discussion with the national park, the application was called in by the appropriate Minister, as provided in law, on the grounds of its importance in the national interest. Surely that shows, sadly, the way in which we are going.

I remind noble Lords that the South Downs National Park was only a consultee on the application and now has no planning authority on it at all. As a consultee, the park authority pointed out that the cable did not serve the park’s two statutory purposes: first, to conserve and enhance natural beauty, wildlife and cultural heritage; and, secondly, to promote opportunities for the understanding and enjoyment of the park’s special qualities. All of that has gone. Instead, it will be up to the Minister to respond in the way that he thinks appropriate.

It is clear to me that an applicant seeking to run power lines across the South Downs will now have a fair chance of doing so, notwithstanding the level of protection that Parliament gave to the national park in the 1949 Act. If I am right about the Minister being allowed to take the decision away from the park authority, the process will be made so easy for him that I wonder why he needs Clause 8 in the Bill at all. This is therefore a matter for clear, keen thinking. Surely we do not want to remove the power, actions or knowledge from national parks and put them into the hands of Ministers when, frankly, they may not really know very much about the job.

[Lord Cameron of Dillington]

My Lords, I come to this clause and this group of amendments entirely from an economic perspective. I am very much in favour of greater economic growth for our countryside because, frankly, all too often our rural deprivation is ignored, and I am as keen as anyone that entrepreneurs and businesses should be given all the help they need to thrive throughout rural England. It goes without saying that broadband and all the modern means of communication are a crucial godsend to the diversification and profitability of our rural economy. However, I have also always believed that the economy of our protected areas, such as the national parks and AONBs, is very much dependent on their beauty. Not only do these areas attract tourists and other visitors who spend their money there—indeed, because of these protected areas our national economy attracts visitors who spend their money in this country generally while going to or from those areas—but their beauty affects the valuable branding of all the businesses within the designation.

The economic benefit to these businesses depends on the retention of the beauty with which the area is associated. Branding could obviously affect agricultural or food products—South Downs lamb, for instance, and Exmoor ale. It could even affect other products such as dales furniture and so on. Brand names are important in marketing; if they inspire visions of beautiful countryside and fresh air, as cool as a mountain stream or whatever, then they are also very valuable. It seems right that for economic reasons, as well as for social and environmental reasons, we should truly protect our protected areas. We must never allow them to be nibbled away at in the way that this clause seems to be doing.

This is not to say that anyone is trying to prevent modern economic activities in our national parks—indeed, far from it: the national parks authorities have a statutory duty to promote the economy within their territories. In this case, that is exactly what they seem to be doing. As the noble Lord, Lord Adonis, said, 97% of the 392 applications for prior notifications on overhead wires and cabinets have been approved. The current system allows for meaningful discussion about where and how they should be introduced. If in 97% of cases an agreement has been reached, I see absolutely no benefit in changing the current situation. I am quite happy to make the current, meaningful discussions statutory or mandatory, as proposed in some of the amendments in this group, but it seems to me that economic progress is already being accommodated in our national parks. At the same time, the crucial purpose of our protected areas as valuable heritage and economic assets is being protected, so we should leave well alone.

Directors’ Pay

Lord Renton of Mount Harry Excerpts

Wednesday 20th June 2012 Lords Chamber

[Baroness Wilcox]

I read that to make sure I was absolutely correct because the noble Lord has been quoting paragraph numbers. I would not like him to say that I had made a mistake or moved a comma. Perhaps he will forgive me on that.

It is a radical package. For the first time companies will be bound by a policy approved by shareholders. As to why shareholders did not do more and do it on their own, as the noble Lord knows very well, changing articles is complicated so we wish to help shareholders on their way. The noble Lord is shaking his head vigorously. He has been a Member of this House and has sat on the Labour Benches a long time. He has also been a Minister. During all that time none of this, no matter how frail or small it seems to him now, was done by his party or by him when he was sitting in this position. Let us be clear; one year ago there was not the same level of recognition on the issue of pay. Now business accepts that there is an issue and has been very good in coming forward to have the conversations with us.

[Lord Renton of Mount Harry]

My Lords, I for one on these Benches was very pleased to hear the Secretary of State’s announcement today. The noble Lord, Lord Myners, had a point when he said that shareholders can already veto executive pay. One of problems is that many shareholders are directors themselves and therefore have some considerable interest in seeing that salaries are up there rather than down there. It would be very helpful if it were possible to use the ordinary employees of a company more widely as a blanket on what is finally resolved. The Government should consider how employees who are not at the top of the pay scale can be brought more into the picture. I take it that what is being suggested today applies not just to directors but to executives as well. An executive is not necessarily the chief executive. What he or she is earning will also come under close survey.

[Baroness Wilcox]

The answer to my noble friend’s last assumption is yes. When it comes to employees getting their voices heard, we encourage them to make more use of the tools that they already have, and to which I have already referred, in airing their views on pay, for example. Existing information and consultation arrangements are a potentially powerful mechanism for employees and have been underutilised to date. We will now watch carefully what companies say in directors’ remuneration reports about whether employees’ views have been sought. I agree with my noble friend that we need to hear the views of employees. We want boards to encourage them to use the mechanisms available to them so that we can hear more of what they say.