Animal Welfare (Sentience) Bill [HL]

Lord Sheikh Excerpts

Committee stage
Tuesday 6th July 2021 Grand Committee

[The Earl of Caithness (Con)]

My Lords, I hope my noble friend the Minister will give us a full and detailed reply, because there have been so many questions and unfortunately, the Committee being operated in this way because of Covid, we will not be able to cross-examine him in quite the way we would have done when it was sitting normally.

I start from the basis that we ought to retain the current position, which we had just before we left the EU. I therefore support the noble Earl, Lord Kinnoull, in his Amendment 16. However, Amendment 1, moved by my noble friend Lord Hamilton of Epsom, is absolutely critical; that is, having the composition of the committee and how it operates controlled by regulations. It would be quite wrong for the Government to be able to set up a committee at their own whim and dictate, without coming to Parliament, exactly how it might be composed and operate. I hope my noble friend will be able to be very positive on that amendment.

Could my noble friend also confirm that the noble Lord, Lord Trees, was absolutely right? In speaking to his Amendment 3, the noble Lord drew attention to Clause 2, which says that the committee must comment on policy or what policy might be formulated. Does this mean that it cannot recommend policy to the Minister? If it were able to go off on its own and come forward with a report that says the Government ought to legislate in an area, it would broaden the scope of Clause 2. I hope my noble friend will confirm that it is strictly limited to policy generated by the Government.

I agree with my noble friend Lord Moylan on Amendment 19 and the need for medical research to continue. I hope that is fairly straightforward.

I support what my noble friend Lord Howard of Rising said on vermin. Vermin need to be controlled but they should, quite rightly, be controlled in the most humane manner possible. I raised this during the Environment Bill, when my noble friend Lord Goldsmith moved away from human to natural vermin control but, if one were to pursue that policy and way of thinking, we would have no control of the outcome at all. I hope my noble friend will confirms that, as the apex predator, man has an important role in improving biodiversity.

I conclude by agreeing with the noble Baroness, Lady Mallalieu, on judicial review. One can pick a great many holes in the Bill as drafted, and I can see the judicial review process being used more heavily on this Bill than in most other legislation we have considered.

[Lord Sheikh (Con) [V]]

My Lords, I speak in support of Amendments 19 and 31, beginning with Amendment 19. We must ensure we can still use animals in the advancement of medical research. A great deal of research still needs to be undertaken in the research and development of vaccines and pharmaceutical drugs. The results of this research must be properly recorded and submitted to the appropriate authorities, before any chemical, biological or surgical treatment is approved for regular use. As such, processes must remain in place for effective certification of all life-saving treatments.

For years, animals have been used as a crucial component in the development process. Pharmaceutical companies have successfully produced a range of medical advances as a result. Drugs, vaccines, surgical procedures, insulin, pain relievers and new traditional supplements—to name a few—have been developed. We are living in a changing world with new diseases or variations on existing illnesses, where there is a need for continuous research and development. For certain diseases, we have not yet found appropriate remedies and the work of R&D is not yet done. Suitable experimentation on animals must continue and improve to offer other potentially life-saving and life-improving products to those in need. It is therefore important that the practice of developing and testing on animals is continued. There should be no interference in this process, as it is for the benefit of humanity, on a global scale.

I add that, in the research and development of vaccines against Covid-19, studies and experiments were undertaken on certain animals to assure the vaccine as effective and safe for use worldwide. I therefore support this amendment, which seeks to ensure the continued existence of this essential aspect of the advancement of our understanding of medical science, for the benefit of the people of the entire world.

--- Later in debate ---

[Baroness Fookes (Con)]

My Lords, my noble friend Lord Forsyth may be slightly surprised, given my interest in animal welfare, to find out that I share his criticisms of the Bill’s format. Indeed, I thought there was a Cabinet committee charged with ensuring that Bills came forth fully formed; I am therefore surprised that this one got through the gate of that Cabinet committee. It verges on being a skeleton Bill—or, if not a skeleton, it is seriously underweight, which has caused a lot of the difficulties and misgivings on all sides of the Committee.

I am concerned, too, not just that the way the first clause is set out gives unlimited power to the present Secretary of State over the membership of the committee and the terms on which they will serve, but that if that stands in the Bill, it will stand for ever. We cannot tell how that might be interpreted by future Secretaries of State, which I find very uncomfortable.

This is one reason why I have supported the two amendments in the name of the noble Baroness, Lady Jones of Moulsecoomb. First, her proposed new subsection (2) tries to set out that the function of the committee should be set out in the Bill. Secondly, she has proposed a schedule to point out who the members of the committee might be, how long they might serve and the committee’s general powers. I am quite sure that other Members of this Committee will find fault with whatever I have put down, but it is at least a worthwhile attempt to sort out what the Government really intend the committee to do and how it is to be constituted. I am anxious to see that people of varied expertise are chosen. I have no truck with what I call animal extremists and no wish to see them on a committee of this type. I want to see a well-established committee of experts who can offer sensible advice to the Secretaries of State of the day—because this will cover more than Defra, or I imagine it should if it is to relate to animals in general.

I very much hope that we can have considerably more thinking on the Bill on the Government’s part. I would prefer to see regulations brought in giving the details of the committee and how it will work, which could at least then be considered by Parliament, even if it cannot amend them. I ask the Government to look more closely at what they are asking us to accept.

[Lord Sheikh (Con) [V]]

My Lords, I should like to comment on Amendments 11 and 14. I agree in principle with what has been stated about these two amendments, which are concerned with clarifying the operational capabilities of the animal sentience committee.

I love animals and care deeply about their well-being. I have pets and I was brought up in home where we had chickens, ducks, rabbits, dogs and cats. I formed a bond with these animals and know that they had emotions and felt pain. In my language we say, “An animal is not able to speak but it does have feelings”. Of course, this makes it even more important for us to care for them, which is the reason I support the Bill. However, certain improvements need to be made to address this fact. We must ensure that the animal sentience committee is able to undertake its work as adequately as possible to fulfil its range of responsibilities.

I am a businessman and have been the chairman and chief executive of a successful public company. In business, if a company wants to undertake a project, it must thoroughly work out the details. Thereafter, adequate resources must be provided, including funding, the provision of appropriate staff and the sourcing of suitable accommodation.

Similarly, we must set out quite clearly what we are trying to achieve, and we must set out our objectives throughout. If the intention is to establish and maintain an effective committee, the terms of reference among other things need to be set out in clear terms. Amendments 11 and 14 address these requirements by setting out provisions, making adequate resources available for staffing composition as well as defining the relationship and appropriate consultation between the Secretary of State and the committee. I support all that is set out in the amendments but would like them to be streamlined and consolidated in one properly worded clause.

[The Earl of Caithness (Con)]

My Lords, I support the amendments put forward by my noble friend Lord Forsyth of Drumlean, which expand on what we discussed on an earlier amendment. They set out the very minimum that one should expect the Secretary of State to be able to do, particularly Amendment 11. I was interested by what my noble friend Lady McIntosh of Pickering said when she contrasted the rural proofing committee and the proposed committee. Can my noble friend explain to us what the difference will be and how the two committees will be looked at by Defra? A lot of us have pushed hard to give the rural proofing committee more opportunities to work proactively across government departments in much the same way as my noble friend would like this committee to do, but this committee needs an Act of Parliament whereas the rural proofing committee was set up without any reference to Parliament. I would be grateful if my noble friend could explain the difference.

On financing, will my noble friend also take time to tell us what programmes in Defra will be cut or not pursued in order to fund the animal sentience committee? Defra finances are under some strain, and it would be nice if we knew where the cuts were going to be. Perhaps the rural proofing committee will get less funds in order that this one can succeed.

On an associated amendment after Clause 6, proposed by the noble Baroness, Lady Jones of Moulsecoomb and supported by my noble friend Lady Fookes, neither of them mentioned paragraph 1(5) of their proposed new schedule, which states:

“The Secretary of State may not appoint a person as a member of the Committee if the person is … a member of the House of Lords.”


I can think of two or three people sitting not very far away from me who would be excellent members of the animal sentience committee. I wonder whether my noble friend agrees that to exclude people sitting in any of the Parliaments, here or in the devolved assemblies, is the right way to proceed.

Perhaps this is the right opportunity to pick up a point made at Second Reading by the noble Lord, Lord Trees, when he mentioned the report due from the LSE. That is crucial to this Bill and how we understand it. What progress has been made on that report? I took advice on putting forward a delaying Motion on this Committee that we do not consider the Bill further until we see that report because it is so relevant to this Bill. If my noble friend cannot help us further, I might consider doing that on Report, because we really need to see the report and its relevance to our discussion on the proposed committee.

--- Later in debate ---

[Baroness McIntosh of Pickering (Con)]

I am delighted to follow my noble friend. There is some coalition of thought behind his Amendment 8 and my Amendment 10. I have known my noble friend the Minister for a substantial number of years and we served together on the Front Bench in opposition. He is not normally this shy in coming forward and sharing details with us; he is normally only too keen to pay tribute to the excellent department in which he finds himself. I am delighted to see him back in his place.

The purpose of Amendment 10 is to tease a little out from my noble friend. I know he is reluctant to, but he could share a little soupçon of who he imagines will be on the committee. I hark back to what my noble friend Lord Marland said in connection with the first group of amendments, and the pressures and challenges facing farmers. I echo that and pay tribute to their devotion to livestock and animal rearing and their sense of animal husbandry. They feel they are facing an onslaught from the department and this Government, the likes of which we have never seen before under a Conservative Government. I hope my noble friend gives some reassurance to the Committee that he imagines the animal sentience committee will at least have a veterinary surgeon, an active farmer or person with knowledge of livestock production or land management, and a person with knowledge of slaughterhouses.

I pay tribute again to my noble friend Lord Moylan, who managed to extract the animal welfare policy paper, which seems almost to be shrouded in mystery. If the Government really wanted us to share the enthusiasm they no doubt feel for this Bill—which at the moment is fairly weak on my part—surely they would shout this from the rooftops or at least pay passing reference to it in the context of the Bill before us. With those few remarks, I hope the Minister will look favourably on the plea to see the three categories I have set out, in addition to those set out by my noble friend Lord Moylan, appear in some shape or form when the committee is set up.

[Lord Sheikh (Con) [V]]

My Lords, I was going to speak in favour of Amendment 10, particularly relating to the appointment of a person with knowledge of slaughterhouses. I feel there is no need for me to do so, in view of the assurances given by my noble friend the Minister that there will be no interference in the continuation of religious slaughter practices. I am grateful to my noble friend for giving these assurances.

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

The noble Lord, Lord Hamilton of Epsom, has withdrawn from this group, so I call the next speaker, the noble Earl, Lord Caithness.

Animal Welfare (Sentience) Bill [HL]

Lord Sheikh Excerpts

2nd reading
Wednesday 16th June 2021 Lords Chamber

[Lord Sheikh (Con) [V]]

My Lords, I welcome this Bill as I have always believed that animals are sentient beings and that they feel emotions and experience pains. I was brought up in east Africa in a house with a large garden. We had a dog, cats, chickens, ducks and rabbits, and we became very fond of them and got to know them. I noticed that they had emotions and felt pain, and I shall give one example. When my mother died, I was very upset and the cat we had at that time would not stop mewing and wanted to sit on my lap. I feel that the Bill is necessary, as we need to ensure that we look after their well-being and care for all animals, whether they are pets, on a farm or in the wild.

The Bill will apply to vertebrates other than homo sapiens, but the Secretary of State may by regulation include invertebrates of any description. I agree with what has been stated.

With regard to animals which produce something we consume or use, I feel that by caring for them, we will have better milk, meat, eggs, leather, wool, et cetera. The intention of the Bill is to ensure that all animals continue to have adequate recognitions and protections now that we have left the European Union. This must be ensured by appropriate domestic legislation. We were previously subject to Article 13 of the Treaty on the Functioning of the European Union, which stated that

“administrative provisions and customs of the Member States”

must respect the

“religious rites, cultural traditions and regional heritage”

of their citizens.

I ask your Lordships to note the words “religious rites”.

I am a practising Muslim and I eat halal meat. There are nearly 1.9 billion Muslims in the world and over 3.4 million Muslims in the UK, and we make up over 5% of the British population. A number of Muslims, including me, will eat only halal meat, and their beliefs need to be respected. Animal welfare is very important in Islam. The Holy Koran and Hadith state that we must recognise animals as being sentient, and we are provided with guidance regarding how to care for, handle and farm them. In addition, we are told how they should be slaughtered for food. Islam forbids mistreatment of animals and their welfare is enshrined in Muslim beliefs. The Prophet Muhammad—peace be upon him—said:

“A good deed done to an animal is like a good deed done to a human being, while an act of cruelty to an animal is as bad as cruelty to a human being.”


Islam permits slaughter of animals for food but dictates that such slaughter must be exercised humanely.

There has never been conclusive scientific evidence to suggest that religious slaughter is less humane than conventional methods. In halal slaughter, the animal ceases to feel pain due to the brain immediately being starved of oxygenated blood. For the first few seconds after the incision is made, the animal does not feel any pain. This is followed by a few seconds of deep unconsciousness as a large quantity of blood is drained from the body. Thereafter, EEG readings indicate no pain at all.

I have spoken previously in your Lordships’ House about halal slaughter, and had discussions with then Defra Minister and corresponded with David Cameron, the then Prime Minister. Will the terms of reference of the committee to be appointed under the Bill include looking at the religious practices of halal and shechita? If this is to happen, I suggest that a person or persons who have a very good knowledge of these practices should be appointed. This will enable the matter to be looked into comprehensively and thoroughly. Furthermore, I suggest that the committee holds full consultations with the communities and appropriate organisations to take account of the feelings of the people. I add that I would like to see the committee being independent.

I ask my noble friend the Minister to comment on the points I have raised, particularly those relating to religious slaughter. Leaders and members of the Muslim community have approached me to speak on the Bill today and raised the points which I have made.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, the noble Baroness, Lady Gardner of Parkes, who is next on the speakers’ list, has withdrawn. I call the noble Lord, Lord Trees.

Food Supply and Security

Lord Sheikh Excerpts

Thursday 14th May 2020 Lords Chamber

[Lord Sheikh (Con)]

My Lords, the pandemic has caused severe disruptions in our agriculture, fishery and dairy sectors, as well as the processing of foodstuffs. Furthermore, it has created difficulties in regard to the importation of food and beverages from abroad. We import about 47% of our food supplies from different parts of the world. The pandemic has been worldwide, and a lot of countries have been affected. In addition, international transport systems have been severely impaired. However, we must give credit to our companies, which work hard to import food by cargo planes. We should also appreciate the efforts made by Heathrow and other airports.

Millions of people in the country are vulnerable, while others are in self-isolation. Given the undoubted difficulty for those people in going to shops, we must appreciate that supermarkets and other suppliers have put into practice ways of getting food to them. We should also pay tribute to a number of charities, organisations and individuals who have helped to provide food and provisions to people who are in need of assistance.

The farmers have problems in getting fruit and vegetable pickers. Can my noble friend the Minister say what help can be provided to farmers to find staff? I would like to see some revision to our Immigration Rules regarding this problem.

Finally, as someone who is particular about what he eats, I would like to see steps taken to encourage people to eat sensibly. That needs to be looked into further. Unfortunately, we have problems with obesity and illness, in both children and adults.

Water Bill

Lord Sheikh Excerpts

Tuesday 11th February 2014 Lords Chamber

Finally, I am pleased to report that London Councils supports this amendment. In some key areas of London, businesses are at risk of flooding as much as households. It is important that small to medium-sized enterprises and third-sector organisations, particularly those at surface level on our high streets, have access to affordable insurance cover. London Councils points out that flooding can devastate the economy of London’s high streets, many of which contain SMEs and charity shops. They are affected by damage not just to property but also to stock, and they can take a long time to recover. The flood hazard and risk maps published by the Environment Agency in December last year show that in the Thames area more than 166,000 non-residential properties are at risk of flooding, nearly 76,000 of which are in London. A significant number of these non-residential properties are small businesses. Bearing in mind all these representations, I beg to move.

[Lord Sheikh (Con)]

My Lords, at Second Reading I welcomed the Bill but outlined some concerns. I am extremely grateful to my noble friend the Minister both for the remarks he made during that debate and for the correspondence I have received since then. Indeed, he was able to alleviate a number of my concerns. However, there is one area where I still have a slight concern, which relates to the effect this legislation will have on small businesses.

At Second Reading I said that since small businesses will be ineligible for Flood Re, they will therefore be afforded less protection than in the statement of principles by which they are covered. In his correspondence to me, my noble friend the Minister said that it was the belief of the Government that there was not sufficient evidence to justify intervention in relation to small businesses. However, I believe that more should be done to protect our valued SMEs, many of which operate under tight budgets and may be unable to obtain affordable flood insurance. My noble friend the Minister has also said that it was his belief that SMEs were more able to protect themselves from flooding. Again, I point to the issue of cost here. Just as many SMEs struggle with the cost of insurance, they also struggle to afford to put in place measures to protect their businesses and livelihoods.

I welcome the Minister’s remarks that this issue will remain under review but I feel that this does not go far enough. If nothing further can be done to assist SMEs as part of the Bill, the amendment tabled by my noble friend Lord Moynihan could at least assist them in the future. In fact, it would benefit both the Government and SMEs because of the extra clarity it would bring. It would provide a mechanism to formally review the ability of businesses to take action to reduce flood risk and access flood insurance.

The conciliatory manner in which this Bill has progressed is most welcome and I would welcome anything further the Minister has to say on this issue. Again, I support the Bill and would like it to succeed, but suitable measures must be put in place in order that everybody gets the benefit of what we propose to do.

[Lord Campbell-Savours]

My Lords, I will speak to Amendment 160, in the name of my noble friends Lord Whitty and Lord Grantchester. I intend to speak on a number of amendments so I must declare an interest. I have a leasehold interest, with my wife, in a band G home on the Thames built on the flood plain. My flat is not threatened by flooding. My home has therefore never been evacuated and I have never made an insurance claim on a property I own. Nevertheless, I feel that I have an interest to declare while speaking on an issue that affects tens of thousands of home owners who similarly live in the vicinity of the Thames, many of whom are now being evacuated.

I start by congratulating the Government on introducing this scheme, which I understand was the subject of some very difficult negotiations with the insurance industry. I want to refer to a particular group of home owners, of which I am not one, who come under council tax band H. Council tax band H is pretty expensive property, as we know, and the flooding over the past few days has probably affected thousands of these properties up and down the River Thames between Chertsey and just south of Maidenhead, near Windsor. These home owners will be very worried about what is going to happen. They are excluded from this scheme. Not only do they have the problem of how to resolve their immediate difficulty of dealing with the flooding and the consequences for their homes, but they will also be worried about the longer term financial implications, in the event that their premiums are substantially increased—which they will be. I know that from my own experience in the Lake District, which I mentioned during my previous intervention. For most of my life, I lived there in the town of Keswick, which was subject to flooding. Many people there found it impossible to get insurance from insurance companies following the floods that took place some years ago.

There is going to be a real problem for these people. Many in the Thames Valley are not included in this scheme because their properties fall into band H. It is not that the Government need to interfere with this scheme. I understand its merits and it has been very sensitively negotiated. We very much support it. However, heads have got to be banged together to find a way of resolving the problem of many of these people who live in band H property.

People may ask what I am doing defending people living in band H properties from the Labour Benches. The reason is simple: many people who live in band H properties did not buy them as band H properties. They bought them when they were much cheaper, and when their incomes may well have been quite modest. Property price inflation in London and in the south of England has placed many people in this position. Even the way that the mansion tax is being construed may affect people who have quite small incomes. I am in favour of the mansion tax, but maybe the way that it is to be calibrated raises the same questions. People on low incomes who find themselves living in expensive properties—I am not one of them, as I said—have to be considered in these matters. I hope that the Government, even as late as this in the Bill, might on Third Reading at least make some statement as to what provision might be made for them, notwithstanding what the Bill provides on Flood Re.

Water Bill

Lord Sheikh Excerpts

Monday 27th January 2014 Lords Chamber

[Lord Sheikh (Con)]

My Lords, I commend the Government on this most important piece of legislation. Through the Bill, we are able to address a number of issues, and I believe it will improve the health of both our economy and our environment. It should also reduce water bills for consumers in the long term. It is clear that our water industry is in severe need of reform. Greater investment in our water and sewerage systems is long overdue, and greater levels of competition, efficiency and innovation are needed.

I will focus on Part 4 of the Bill, which relates to flood insurance. At this juncture, I declare an interest as chairman of an insurance broking and financial services organisation. I have been a director and the regional chairman of the British Insurance Brokers’ Association. I support the policy objectives of the Government on this issue and broadly support the measures contained in the Bill, for reasons I will go into in due course. I am particularly pleased that the insurance industry and the Government have been working closely together on this. Indeed, we must all work together to try to help facilitate a solution that will make affordable flood insurance available to UK property owners, including small businesses, in the long term.

Flooding is the greatest national threat that the UK faces, and the risk is rising. In recent years, this increased risk has been reflected in the number and cost of major flood events that property insurers cover. In the 1990s, there were two flood events with a claim cost of more than £150 million for insurers. In the first decade of this century, there were five such events, including the 2007 floods, which cost insurers £3 billion. The 2012 floods saw insurers paying out approximately £600 million.

A significant number of government amendments were made to the Bill in the other place, particularly on flood insurance. That was to be expected, given that in the first printing of the Bill the flood insurance provisions were set out in the broadest possible way. These new amendments set out the Government’s proposed legislative approach and are included in Clauses 51 to 71 of the Bill in its current form.

I welcome the fact that Flood Re will effectively limit what most high-risk households should have to pay for the flood component of their home insurance. Although the current statement of principles agreement ensured that viable flood insurance was available, it by no means guaranteed affordable prices for consumers and has long distorted the insurance market. However, the statement of principles ensured that the Government continued to spend on flood defences, where for every £1 spent, £8 is saved in claims.

I am sure that the clarity for those customers whom Flood Re will cover will be most welcome. Prices will be set according to council tax bands so people will know the maximum that they could be asked to pay. Moreover, it seems perfectly fair that those who are in smaller properties should not have to pay as much for flood insurance as some of those in larger houses. Support would be targeted at those who need it most, and the level of excesses charged by insurers controlled. The fact that the levy on all home insurers that will be used to fund the scheme in addition to insurance premiums comes within the pricing structure of the market means that most ordinary home owners will not face any rise in bills. Spreading risk across policyholders is a widely used model for insurance. Even with the possibility of a top-up levy being required in the early years of the scheme, it is envisaged that the overall effect will be neutral over time.

However, for those excluded from Flood Re, there continues to be genuine concern about both the availability and affordability of flood insurance. Some criticism has been levelled at the Government for these proposals based on the fact that Flood Re will not cover houses built after 2009. A cut-off date is needed to maintain a signal to planning authorities that all developments must be appropriate and resilient to flooding. However, a 2009 cut-off is unnecessary, as policy planning statement 25 has been in force since then. There is not a significant number of properties that have been built in flood-risk areas since 2009. These have been subject to planning policy statement 25. An alternative cut-off date of 2014 would mean that home owners in flood-risk areas would get the protection they need without materially affecting the ability of the scheme to deliver its objectives.

The importance of resilience when it comes to flooding must not be understated, for in some areas it is virtually impossible not to build on flood-prone land. With this in mind, I believe that more thought should be given to “uninsurable” properties in this scheme. It is inevitable that the risk that some properties would carry would make them unsuitable for Flood Re, but we must do all that we can to ensure that “uninsurable” properties are not left behind.

The Flood Re proposals have been broadly welcomed by all parties, although inevitably there are some concerns. One such concern has been that small businesses will be ineligible for Flood Re and therefore be afforded less protection than in the statement of principles by which they are covered. It is clear that the risks for businesses are different and that financial risk is often much greater.

The fact that small businesses could be in a worse position than before is a cause for concern to the Federation of Small Businesses, the British Property Federation, the National Flood Forum and the British Insurance Brokers’ Association. I am pleased that in Committee in the other place the Minister there clarified that small businesses were covered if they were based in council tax-paying residential properties. However, this will be for only a tiny minority, as most businesses will be registered in a company name and Flood Re excludes businesses if the insurance is taken out in the name of the business.

Figures from the Federation of Small Businesses show that, in 2012 alone, one in five small businesses was affected by flooding, highlighting just how important for such companies the availability of affordable protection is. I ask my noble friend to comment on whether he believes that small businesses will be suitably protected by Flood Re and, if not, what provisions have been made to ensure that they can continue to access affordable flood cover.

Judging premium costs based on council tax boundaries is a reasonable approach. There has been mixed reaction to the exclusion of band H properties, with some claiming that their inclusion would have little impact and others claiming that the effect will be greater. However, I ask my noble friend how the differential pricing in the system was designed and, more importantly, do the Government believe that the current proposals are robust enough to help those on lower incomes, particularly those who may live in band H homes who are asset-rich and cash-poor?

The ultimate goal of Flood Re is to pave the way for a smooth transition to the free market. If that were successful, it would be most welcome, but, of course, that is not an easy feat. No country in the world has a free market for flood insurance which successfully preserves widely available and affordable flood insurance for those at high flood risk without some form of government involvement. With that in mind, I seek further explanation from my noble friend on how the transition in the insurance sector from the cross-subsidy being formalised in Flood Re to an eventual free market will be managed.

Moreover, what, if any, safeguards will be in place to ensure that premiums do not rise considerably once a free market is established? I look forward to my noble friend’s answer on that issue. Although a contingency plan in the form of the flood insurance obligation is being legislated through the Bill, I know that from the industry perspective there is strong feeling that that must be avoided. Perhaps that is not a bad thing, because it makes the incentive for Flood Re to work even greater. However, there are real concerns about placing an obligation on each insurer to take a proportionate share of high flood-risk households. The obligation would be the first time that insurers were forced to provide a type of cover to a high-risk home owner-occupier who they otherwise might have chosen not to cover.

Although the obligation would force insurers to compete with each other for the business of high-risk households in order to meet their targets, there is a danger that that could make some insurers withdraw from the market, reducing capacity, competition and choice, and resulting in increased prices. I believe that there is a risk that this measure, intended to help customers to shop around, would in fact limit their ability to do that very thing. It could also negatively affect those at low flood risk, as insurers seek instead to compete for high-risk properties in order to fulfil their quota.

Having said that, I welcome the measures in the Bill, but I believe that more needs to be done for those currently excluded from the scheme: in particular, small businesses such as those we have seen mopping up their small shops and offices around the UK in recent months.

Throughout the process of taking forward the Bill, it has been recognised that in some ways we have made good progress. We have been able to develop proposals as far as we have only through a partnership approach. This has seen a considerable compromise by the insurance industry and a significant future commitment from the Government. I am sure that for as long as that continues, we will be able to secure a system that is fit for purpose.

Clothing Industry: Ethical and Sustainable Fashion

Lord Sheikh Excerpts

Thursday 3rd March 2011 Lords Chamber

[Lord Sheikh]

My Lords, I thank the noble Baroness, Lady Young, for securing this debate and for an excellent speech. The noble Baroness is an expert on cultural matters who has enjoyed a successful career in both the arts and academia.

Promoting ethics in fashion is one of the biggest challenges facing the industry. Due to our own success and leadership in this field, I thought it best to begin my contribution with a few words on the British fashion industry. London is one of the key fashion capitals in the world. According to the British Fashion Council, designers and retailers spent approximately £13 million on shows during London Fashion Week last year. The fashion industry makes a contribution of £21 billion to the British economy, which makes it the country's 15th largest sector.

Garments are said to account for 5 per cent of consumer expenditure in Britain. It has been estimated that Britain spends £46 billion per year on imported clothing. The civil unrest in north Africa, Egypt in particular, has slowed the supply of textile products to the UK, thus affecting a number of leading British retailers, including Marks & Spencer and Debenhams. These recent events can perhaps serve as a catalyst for retailers to look for more suppliers based in Britain. This will have the added benefit of boosting the UK textile manufacturing base. Clothing companies have warned that the price of garments will increase due to the rising cost of cotton, which has risen by 150 per cent since the beginning of 2010.

With our prestige in this industry comes social responsibility. Ethical fashion practices will broaden opportunities and improve the standard of living for millions of citizens in the developing world. The low cost of producing garments overseas is to be welcomed, but should not be at the expense of decent working conditions. I wholeheartedly support the important work of the Ethical Fashion forum in seeking to improve working conditions in the fashion industry. One of the key aims of the Forum is poverty reduction. This is a subject that is very close to my heart. The global fashion industry is said to generate profits of $1 trillion each year. However, the working conditions and salaries of those who contribute to the success of the industry are a huge cause for concern. Many who work in the fashion industry are on frightfully low wages.

One of the greatest successes of the Ethical Fashion Forum has been its work to promote market access in the developing world. We should do everything to support individuals in the developing world to export their unique prints, such as batik and kente, to a wider global audience. In India, the forum supports a fair trade initiative that employs 800 women, all of whom are shareholders in the company. This project also provides access to schooling for more than 1,000 local children and supports healthcare provision. The forum also supports initiatives in Kenya and Uganda. I have a personal affinity with these nations, as I was born in Kenya and spent my childhood in Uganda. The EFF supports the Crochet Sisters initiative, which helps impoverished women in Kenya by providing them with food, shelter, training and schooling. The forum supports 500 refugee women in Uganda to sell the jewellery that they make at minimal cost from recycled materials.

Many of the forum’s initiatives have an educational element. This is particularly encouraging as education has been repeatedly proven to be one of the main factors in improving the fortunes of poor people. I also welcome the efforts of the Ethical Trading Initiative to promote good labour standards for workers as declared by the International Labour Organisation. Members of the initiative adopt a code of conduct relating to decent wages and working conditions that they expect their suppliers to honour.

The number of reputable companies selling garments made by exploited workers is nothing short of a disgrace. One of the most memorable cases of exploitation to be disclosed in the fashion industry was the revelation that Levi Strauss was using Chinese prisoners to manufacture its goods in Saipan. Although this came to light almost 20 years ago, cases of exploitation are still prevalent today.

As someone who cares about humanitarian issues, I feel strongly about the exploitation of children in certain countries where children are employed to work in clothing and other industries in unhealthy conditions for a pittance. The challenges facing companies as a result of the current economic climate must not be used as an excuse to exploit vulnerable workers in the retail industry. We live in an increasingly globalised market where businesses are forced to compete for an increased number of exports.

Increased competition coupled with the demands of the fashion industry has led to a sharp rise in subcontracting. This practice allows manufacturers to make substantial savings. A key factor in successfully ending the exploitation of workers is those workers being made aware of their rights. Quite often, many workers in the developing world have experienced only poor conditions, to the extent that they do not even realise that they are victims of exploitation. The efforts of groups such as Women Working Worldwide, an organisation that seeks to ensure that workers in international supply chains are informed of their rights, are crucial to achieving this aim. I would be grateful if the Minister could inform your Lordships’ House about any plans that Her Majesty’s Government have to support such measures.

The politics of delivering ethical standards in the fashion industry are complex and rife with accusations of hypocrisy. Certain impoverished nations like Haiti have received vast amounts of cheap clothing from generous western countries—in Haiti’s case, following its devastating earthquake. However, this generosity has had the adverse effect of competing with the native clothing industry. Even with the best of intentions, it is important that developed nations are mindful of creating instances like that in Haiti.

We have a moral duty to work towards achieving ethical standards in the global fashion industry. The majority of workers in this sector are females. Therefore, success here will have a positive impact on many supranational programmes, including, most importantly, reaching our targets under the millennium development goals

I end by saying that I was recently a member of the parliamentary delegation to Sri Lanka, where we were taken to a factory belonging to Brandix, which makes garments for Marks & Spencer. The factory was eco-friendly, the working conditions were excellent and the staff were very well paid. Such a factory is a role model for others to emulate.