Trusts (Capital and Income) Bill [HL]
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Lord Strathclyde
That it is expedient that if the Trusts (Capital and Income) Bill [HL]:
(a) has not completed all its stages by the end of this session of Parliament, and
(b) is reintroduced in the next session of Parliament,
the new bill shall, notwithstanding the provisions of Standing Order 46 (No two stages of a Bill to be taken on one day), be taken pro forma through all the stages completed in this session.
Procedure of the House
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Lord Crickhowell
I am interested in that point, because I expressly asked the Leader of the House in his room, at about 2.05 pm, whether all Members had received the same letter. He told me that actually a rather different letter had been sent to, I think, the Cross Benches. I am merely quoting my noble friend, no more.
The Chancellor of the Duchy of Lancaster (Lord Strathclyde)
I offered the noble Baroness a letter. I rewrote it several times last week. Sadly, she refused to accept it.
Baroness Royall of Blaisdon
My Lords, perhaps I may clarify the situation. Forgive me, but we had agreed that we would have an exchange of letters which we would find mutually acceptable, which could then be put in the Library of the House. That is quite a different letter from the one that other noble Lords received.
Lord Maclennan of Rogart
That may be so. The recommendations of the Leader’s Group referred to the Companion in this context, indicating that it was preferable to have a rule rather than a presumption. I beg to submit that the House would do well to consider that original recommendation.
The formidable speech made by my noble friend Lord Cormack will have arrested many people’s prior commitments and considerations. However, if his amendment is not carried, there is a considerable case for recognising that the amendment of the noble Baroness, Lady Royall, is a better reflection of the Leader’s Group than the proposal that we should act on a presumption and agreement through the usual channels. I hope very much that that will be taken into account in reaching a decision.
Lord Strathclyde
My Lords, this might be a useful opportunity to say a few words, but I begin by joining the noble Baroness, Lady Hayman, in paying tribute to Lord Newton of Braintree. Anybody who had seen him—as we all had—over the past six months could not but admire his tremendous courage and extraordinary pluckiness in being here in all his physicality and playing a real part in Bills. I worked with him very closely when he was Leader of the House of Commons and I was Government Chief Whip here. He was a joy to work with—a pleasant man in all respects. We as a House and as a party will miss him; he was a great Conservative and a great parliamentarian.
Turning back to this debate, during the course of this afternoon my eye has been drawn to the screens. I could not help but see that in the Moses Room, there is a debate on the Lord’s Resistance Army and I wonder if some noble Lords have not wandered into the wrong debate.
We are currently considering a report from the Procedure Committee and it is no coincidence that we are considering alongside it a report from the Liaison Committee. Both reports have the same origin; namely, the work of the Leader’s Group on Working Practices. Both address the same welcome phenomenon, which is that more Members are participating more actively in our proceedings. In short, the proposals are intended to accommodate increased demand from Members who wish to take an active part in our proceedings, and to reduce the number of late sittings that have been taking place after 10 o’clock at night. Average daily attendance has risen considerably by comparison with the last Parliament, as has the average number of votes cast per Division, the number of Questions for Written Answer tabled each day, and the number of short debates being tabled. From that point of view, my noble friend Lord Elton has hit the nail on the head.
These trends have had an impact on our scrutiny of legislation. This Session has seen more Bills take longer than eight days to consider in Committee than did so over the whole of the last Parliament. That is a quite a significant statistic. More Members are speaking for longer on more amendments. At the same time, we have sent fewer Bills to Grand Committee than was the norm across the last two Parliaments and, indeed, since 2001. In combination, these trends have put pressure on time in the Chamber, in particular on our rising times.
One response, although I hasten to add that it is not one that I am suggesting now, would be to go down the route that the House of Commons has chosen: fixed rising times in combination with taking the bulk of Committee stages off the Floor of the House along with the timetabling and selection of amendments. That is what my noble friend Lord Cormack has warned us against, and I agree with every word he said. I could not possibly support what he fears or what I have just mentioned, and I do so for the same reasons as my noble friend and other noble Lords who have spoken.
The proposals from the Procedure Committee actually take a very different approach, one that maintains and protects the freedoms of Members of this House to table amendments and have them spoken to by a Minister without selection or guillotine, a freedom which I hope we will never lose. By introducing additional flexibility in the sitting hours of the Grand Committee on Bills and creating a presumption that we should look to commit Bills arriving from the Commons to Grand Committee, save when there are good reasons not to do so, the proposals would help us make better use of our time. They would provide the necessary extra opportunities for Members to take part, and in doing so would ease the pressure on time in this Chamber, thus making it easier for the House to rise on time. If the House rejects these proposals, it would mean that we might have to become used to sitting regularly beyond our target rising time.
The Procedure Committee has also taken the view that a presumption would be useful. I support that view. The question why was framed by my noble friend Lord Cormack in his speech. He fears that we are handing something over to the Executive. That is quite a hard thing to do in a House where the Executive has no majority, but let me try and explain.
Lord Strathclyde
My Lords, you do not have to be a mathematician to work out that the 37 per cent of the House which makes up the coalition is not a majority.
I support the view on presumption because the experience of this Session shows that there are Bills that we could and should be sending to Grand Committee but do not, and that this detracts from the time we have available to spend on those Bills that do merit consideration on the Floor of the House and on other kinds of business. Let me give some examples. If the Academies Bill had gone to Grand Committee, perhaps we need not have sat at 11 o’clock in the morning to take the Health and Social Care Bill. If the Postal Services Bill had gone to Grand Committee, perhaps we need not have finished the proceedings on the Legal Aid, Sentencing and Punishment of Offenders Bill at two o’clock in the morning.
Baroness Royall of Blaisdon
I am sorry to interrupt the noble Lord the Leader of the House, but as all noble Lords will recall, the Academies Bill was the first Bill to be introduced in this House, and there was simply no other business. The Health and Social Care Bill came forward towards the end of the parliamentary Session, and therefore it is inconceivable that had the Academies Bill been taken in Grand Committee, it would have made an iota of difference to the Health and Social Care Bill.
Lord Strathclyde
My Lords, if it made no difference, presumably the noble Baroness would not have refused, as she did, to put it into Grand Committee in the first place.
We could make better use of this Chamber. Let me give another example. Last December, the Grand Committee had an urgent debate on the eurozone crisis attended by some 50 Members of the House. The Chamber was not available because the Protection of Freedoms Bill was in Committee of the whole House with about a dozen participants. Many noble Lords at the time raised the question whether we were using the time in the Chamber wisely. The presumption, which the Procedure Committee recommends—
Baroness Royall of Blaisdon
My Lords, I am terribly sorry, but I have to set the record straight. The Protection of Freedoms Bill was an interesting Bill because it was the very first time that the House as a whole agreed that half of the Bill would be taken in Grand Committee and the most controversial aspects would be taken on the Floor of the House. Therefore, I think a very good agreement was brought to bear in that instance.
Lord Strathclyde
My Lords, I have no quarrel with the decision the noble Baroness made in that instance. The noble Baroness thinks I am getting at her—I will get at her in a moment, but I am not getting at her for that. I am simply pointing out that these were decisions—we took them using the usual channels and we took them together—to do things in a certain way. I am simply suggesting that in retrospect we might have done them rather differently and in a way that might have suited more Members of the House.
The presumption that the Procedure Committee recommends will also not open the floodgates to a Commons-style system, where the bulk of Committee stages are taken off the Floor of the House for two simple reasons; first, because the House will not let it. If this Report is agreed to, no Bill will go to Grand Committee without the express permission and agreement of this House. Therefore, the House will, quite rightly, retain control of which Bills go to Grand Committee, a point that my noble friend Lord Phillips of Sudbury raised.
Baroness Hollis of Heigham
My Lords, the noble Lord is absolutely right in his description of the effectiveness of Grand Committee for the Welfare Reform Bill, but that was not the nature of it being exceptionally controversial. The difficulty was that we had a number of substantially disabled colleagues who wished to take part who were unhappy, with good reason, about the physical layout of the Committee Room. What my noble friends proposed was that the segments of the Bill that affected disability issues should be taken on the Floor of the House while the rest went up into Grand Committee. That would have been a solution, had the usual channels on both sides accepted it, which would have satisfied the entire House and improved scrutiny and attendance.
Lord Strathclyde
My Lords, I wrote to many of the participants and all those to whom I wrote without exception said how well they thought that it had gone. Allowances were made by the House authorities to make the Committee Room more acceptable to those Members in wheelchairs. The point about the presumption is that it would give us the flexibility to make that sort of judgment again in future.
If the report is agreed to, the House would remain the arbiter of which Bills and what proportion of the Bills were sent to Grand Committee. In my view, the House is the best judge of which Bill should be sent where, and that decision should be made case by case.
Lord Hannay of Chiswick
I am most grateful to the noble Lord and I thank him for the good humour with which he has handled the debate, in which he has found himself without a huge amount of support. However, could he perhaps skate a little less rapidly over the point that the proposal in the Procedure Committee actually enhances the power of the Government? The two parts of the sentence in question—the presumption, and the fact that if there is no agreement between the usual channels, the matter will be taken in Grand Committee—give the Government a complete lock, apart from the nuclear option of coming to the House at the end of Second Reading and asking for a vote. That is a substantial increase in the power of the Executive, because the Government can always instruct their Chief Whip to refuse to agree to the matter being taken in the House. I would be grateful if he could address a little bit more that enhancement of the power of the Executive, which I hope was not his intention—and, if it was not, either of the two amendments that have been moved would be preferable.
Lord Strathclyde
My Lords, I do not think that there is any intention to give the Executive more power, or that it is a by-product of what I am suggesting. What would give the Executive more power would have been to accept the original suggestion from the Goodlad committee that there should be a rule, with certain exceptions, that all Bills emanating from the House of Commons should go to Grand Committee. We very much see it as continuing on more or less a similar basis to the one we have, by gaining agreement in the usual channels. The difference is that, if a Bill were not to go to Grand Committee, there would obviously have to be a vote on the Floor of the House. With a really controversial Bill, I cannot imagine that the House would support that view if it did not wish to do so.
Lord Elton
Am I right in thinking that under the proposals, when at the end of the Second Reading, the Lord Speaker or Deputy Speaker stands up and moves that the Bill goes to Grand Committee or the Floor of the House, any noble Lord could then speak, and a Division would be held if there was no agreement? That would take the power that the noble Lord thinks is being put into the hands of the Executive right out again.
Lord Strathclyde
Yes, my Lords, my noble friend has got it entirely right. There would still be a Motion before the House and any noble Lord could put an amendment down to it or divide on it.
I see the potential extra hour and a half as an addition of welcome flexibility to the scheduling of Grand Committee and not a requirement to sit to the maximum each day. That was the point that my noble friend Lord Alderdice made. I have already made that clear to the Leader of the Opposition in a dialogue off the Floor. It would sometimes suit the participants to complete a Committee stage in a smaller number of longer sittings than to have to find time in their diaries for a larger number of days. Therefore, my noble friend Lord Alderdice has nothing to worry about.
The noble Baroness, Lady Hollis, said that people would get too tired, but we are already sitting until 10 o’clock on the Floor of the House, so there is no reason why they should not be able to do so in Grand Committee—and, as I pointed out, that would not necessarily happen all the time.
Baroness Hollis of Heigham
My Lords, again, I speak with reference to the Welfare Reform Bill, where the noble Lord, Lord De Mauley, who was the Whip, and the Minister, the noble Lord, Lord Freud, were admirable in their courtesy, openness and responsiveness to the Committee Members; it was impeccably handled.
The point is that Report is easy, because you have traversed the ground already in Committee. You have the evidence, you have had the meetings, you have had the seminars, you have had the briefings, you are making one speech perhaps to move or in support of your amendment—possibly a minor one to wind up—and that is it. It is easy. The difficult, demanding, tiring and heavily detailed work is done in Committee, particularly on a Bill such as the Welfare Reform Bill, where you are continuously interrogating the Minister in order to get the detailed information so that you can come back to it in subsequent, reiterative amendments. It is hugely demanding, and going on as late as 7.30 pm has meant that some of our older Members and more disabled Members have been severely tired. I have very great concerns about lengthening sitting hours on the grounds that Committee stage is as easy and straightforward as Report; it is not.
Lord Strathclyde
My Lords, all we are doing here is extending the envelope by which the Grand Committee can sit. It will not necessarily have to sit as long as that every single day. What is more, a presumption towards committing Commons Bills to Grand Committee cannot release any capacity that does not exist already. We already have the capacity to have a Grand Committee sitting on legislation four days a week, and the Companion already enables any government Bill to be committed to Grand Committee, as recommended by the first working group on this subject by Lord Rippon of Hexham as far back as 1994, and even he gave no exceptions.
Meanwhile, the proposed extension in the sitting hours of Grand Committees would affect how the time spent on each Committee stage is divided up across sittings and among Bills. It would not reduce the number of hours spent on each Committee stage and so make room for more legislation.
Last of all, I turn to what my noble friend Lord Cormack called the elephant in the room over the last three days. I have been struck by—indeed, I have been astonished at—the number of Members who have spoken to me in the corridor or have sent me a text message to say that they think that this process is all part of a sneaky government ploy to push through a Lords reform Bill without anybody noticing, and to minimise collateral damage to the rest of the programme —to do it by stealth, said the noble Baroness, Lady Boothroyd. Well, I have been waiting a long time to find a good wheeze to get such a Bill through the House of Lords without anybody noticing. I assure noble Lords, this is not it. This is not a great ploy or a great scheme; if it were, obviously we have been horribly found out.
If the House agrees this report, next Session the House will decide, case by case, which Bills are considered in Committee here on the Floor and in the Moses Room. The House itself will decide at what pace it progresses and which amendments are made to which Bills. I have every confidence that, if a Lords reform Bill makes it into the Queen’s Speech, the House will take every decision it wishes next Session.
Lord Strathclyde
Let me just finish my point. This report will have no impact on the passage of such a Bill if it came forward. I would give way to my noble friend, but I have obviously pre-empted her question. I hope I gave her the confirmation that she required.
The proposals in this report were born out of the working practices group and the Procedure Committee. They are designed to resolve the problem of there simply not being enough time to accommodate all of those who wish to speak to their amendments to Bills. Either more goes to Grand Committee or we sit beyond 10 pm.
I hope that I have said enough to explain the proposals from my perspective. They build on the work of the working practices group. They seek to accommodate a more active membership by making better use of the Grand Committee and better use of this Chamber. I hope that the amendment moved by the noble Baroness, Lady Royall, will not find favour with the House. I understand why she has put it down, but equally I do not think that it will be effective or workable. I urge my noble friend Lord Cormack not to move his amendment for the simple reason that the Procedure Committee has already given the proposals careful and prolonged consideration. The committee has made the recommendations that are before the House today, and it is time for the House to make a decision on them. I commend the report to the House.
Liaison Committee: Third Report
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Baroness Royall of Blaisdon
My Lords, I would not care to comment on that at the moment, but I am grateful for the invitation from the noble Lord. I was going to say how much the House as a whole rightly regards the work of the Science and Technology Committee. Clearly, the breadth of knowledge inside that committee, along with the understanding and the influence of the reports, is phenomenal, and I am sure that that will continue. However, as the noble Lord, Lord Krebs, said, resources are scarce. Throughout our deliberations in the committee, I have argued for additional resources to be made available for an additional committee, and I will continue to make that argument in the coming year, so that when we have deliberations at this time next year, I may well be able to argue in favour of more work for the Science and Technology Committee. The noble Lord, Lord Alderdice, made a very good speech here and in Committee, and I have supported him in his arguments throughout. However, I support the report from the committee that is before us today, and I urge the whole House to adopt it. Should there be a vote, I wish to make it clear that the people on my Benches will have a free vote.
Lord Strathclyde
My Lords, I know that I am going to disappoint noble Lords who have spoken in this debate. It is not my purpose, but I think it is the result of the report published by the Liaison Committee that I support. As the House knows, the report proposes that more of our resources should go to one-year inquiries set up by the House for a specific purpose and with a specific membership—what we call ad hoc committees. That is a change of direction from the way in which we have dealt with things before, and I believe that it is right that these proposals for ad hoc committees should come from Back-Benchers. If this report is agreed to, I look forward to a meeting of the Liaison Committee next December when we consider a really good range of proposals for new ad hoc committees proposed by Back-Benchers around the House.
The whole point of this report is that it provides more opportunities for a broader range of Members to take part in the committee work of this House, and for those committees to be timely and to engage us in debate. The committees are meant to inform the House on subjects that we consider important. That is not to take away anything that the Science and Technology Committee does and has done. After all, this report is a package of recommendations. If it is agreed to, new resources will be made available to the Committee Office.
The report is also clear that some trimming of existing committees is required if we are to set up the new committees as proposed, and we have limited the trimming to a single sub-committee of the European Union Committee. The reason was asked by my noble friend Lord Jopling and indeed by the noble Lords, Lord Roper, Lord Grenfell, and others. They asked why we pick on the EU Committee, and the answer is, not because we do not value its work but because it absorbs by far the largest proportion of the House’s Select Committee resources—eight committees in total—and so it is the obvious place to look when trying to release resources. This is also why, to answer the noble Lord, Lord Roper, the Liaison Committee was already minded to propose the change before hearing from the noble Lord. It was in no sense any disrespect to him as chairman or indeed to the quality of the work that he has done.
The second place was the Science and Technology Committee and its sub-committees. We felt that, in the future, the resources should be that of a single Select Committee. The reason why we suggest that is that it would put it on the same resource footing as the Constitution Committee, the Communications Committee and the Economic Affairs Committee, which itself appoints a sub-committee.
Of course, this House has a notable reputation in science and technology, but there are other fields of experience and interest in this House, and I suggest we should make use for them. However, I stress that there is no reason why Back-Benchers cannot propose technical and scientific subjects to the Liaison Committee as subjects for ad hoc committees. There is also no reason why, in future Sessions, we should not re-examine this decision. I am in favour of trying out pre-legislative and post-legislative scrutiny, as suggested by the noble Lord, Lord Filkin, and others. It may be that in a couple of Sessions’ time we find that it is not a good use of the House’s resources and that we should look again at the situation in the Science and Technology Committee.
Lord Strathclyde
Is the noble Lord intervening to raise something, or does he wish to wind up?
Lord Krebs
Yes. I thank the noble Lord for his comments so far, but I would appreciate it if he would address the question that I put on what mechanism was used in the report to assess the value for money from different options. It is all very well to say that we need to create resources for new activities, but how was that evaluation carried out? I request some transparency on that.
Lord Strathclyde
My Lords, we started off from a slightly different position. We wanted to do more different things, such as pre-leg, post-leg and two new stand-alone ad hoc committees, and they had to be paid for by some trimming elsewhere. We took the view that there could be a reduction in the EU sub-committees, and I am afraid that the Science and Technology Committee was next in line. We suggested this in the report that we published right at the beginning of this Session nearly two years ago, when we said:
“So far as the Science and Technology Committee is concerned, we note that the Committee has recently worked through two units of activity … Given that the House of Commons committee on this subject is now permanently established, we consider these two units of activity should be regarded as an absolute maximum; and in the event of further demands for committee work arising which require redeployment of committee resources we would in the first instance look towards retrenchment of the Science and Technology Committee”.
So all this was forecast a long time ago. I think there is a mood in the House to try to look at other ways in which we can work on our committee structure.
The Science and Technology Committee will continue. It will no doubt continue to work through a sub-committee, and I hope that it will continue to do its work extremely effectively.
Lord Haskel
Will the noble Lord respond to the point made by several scientists when speaking about the Science and Technology Committee: that it also serves the public and that the Liaison Committee has looked at it purely from the point of view of serving the convenience of the House? Will he respond to the point that we are also here to serve the public, as well as serving our own interests?
Lord Strathclyde
My Lords, there is going to be a new committee on post-legislative scrutiny of adoption and family services; more pre-legislative scrutiny; and two new committees, one on SMEs and exports and the other on public services and demography. All of these are designed to serve the interests of the public using much more of the expertise that exists around the House. This decision was not taken easily or capriciously; its implications were well understood. As I have said, in the longer term there is no reason why we should not revisit it.
Lord Methuen
On what basis is the Committee Office funded and why, with this huge influx of new Members, could more resources not be given to it to enable these additional committees and the existing ones to be adequately funded?
Lord Strathclyde
The reason is that we are trying to work within our existing budgets. Throughout the public sector there are limits on increasing expenditure. The House of Commons is facing a substantial decrease in expenditure and it would look a bit odd if the House of Lords alone decided to spend even more public money.
Lord May of Oxford
Does the noble Lord believe that his second attempt to answer the question of the noble Lord, Lord Krebs, answered it? I did not understand it. Given that he asserted that there was going to be a cost-benefit analysis, I did not hear anything like that in his reply.
Lord Strathclyde
It is very difficult to provide a cost-benefit analysis until we have seen the work and the success of the new committees that have been proposed. We are proposing four new committees—they do not exist at the moment—which will be paid for in part by a small reduction—I still say that it is a small reduction—in the amount of money available to the Science and Technology Committee. The best time for a cost-benefit analysis will be at the end of the first or second Session when we have seen how these new committees have worked out.
The Chairman of Committees
I will be brief because I know that certain Members of the House want to get on to the next business with rather a great deal of impatience. I shall not take long. I will not be able to name everyone in the impressive list of noble Lords who have spoken, particularly the noble Lord, Lord Krebs, and the massed ranks of fellow scientists that he has managed to assemble today.
In what I thought was a very impressive speech, the noble Lord, Lord Filkin, was right to say how difficult it was to review the committee structure because no one wanted change. Everyone wants to keep exactly the same thing going on—people are always resistant to change—but at the same time they want new committees. That is what we are trying to do. As the noble Lord, Lord Alderdice, and the noble Lord the Leader of the House said—
Business of the House
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Lord Strathclyde
That Standing Order 46 (No two stages of a Bill to be taken on one day) be dispensed with on Tuesday 27 March to allow the Water Industry (Financial Assistance) Bill to be taken through its remaining stages that day.
Her Majesty The Queen’s Diamond Jubilee
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Lord Strathclyde
That an humble Address be presented to Her Majesty to congratulate Her Majesty on the occasion of the Sixtieth Anniversary of Her Accession to the Throne.
The Chancellor of the Duchy of Lancaster (Lord Strathclyde)
My Lords, I beg to move than an humble Address be presented to Her Majesty the Queen, to congratulate Her Majesty on the 60th anniversary of her accession to the throne, and that the Address be presented by the whole House on Tuesday 20 March in Westminster Hall.
This is a formal occasion for paying tribute to our head of state, but what I know will be evident in our national celebrations is the respect and admiration for the Queen personally felt by so many in this nation. She is not simply owed our respect as head of state, but she inspires our respect as an individual.
The Queen fulfils her role as head of state with grace and with firmness of purpose. At the core of that role is her enduring right to be consulted, to advise and to warn the Government, whether that Government is led by her first Prime Minister, Winston Churchill, or David Cameron, now her 12th Prime Minister.
The Queen has been careful to stand above politics at every turn. We take it for granted that we have no idea what our head of state personally thinks of any of the measures in the Queen’s Speech. Her discretion and impartiality when dealing with the Government are impeccable, and we should pay tribute to them.
The Queen is the fount of authority in this realm. She is the head of the Armed Forces, the judiciary, the Civil Service, the supreme governor of the Church of England. It is she, as monarch and an individual, who holds our state together. As well as that assurance of political independence and neutrality, the Queen provides each of those institutions with a valuable focus for loyalty which endures well beyond the reach of any election campaign. That focus for loyalty has been especially valuable for the Armed Forces in recent years, as they have seen more active service than in previous decades.
The same is true of the union itself. The Queen has been rightly careful not to be an English Queen. Indeed, dare I presume that if the Queen were to have a favourite place, the highlands might be that place? The Queen has regularly visited Northern Ireland throughout her reign—17 times, in fact. We should remember that the Troubles directly touched her family. More happily, she has now paid a welcome and deeply significant state visit to the Republic of Ireland.
The heart of the Queen’s role as head of state is her role in Parliament. It is the monarch who provides the daily authority for our sittings. Without the Mace on the Woolsack, we would not be the House of Lords but a collection of individuals. It is why we bow to the Cloth of Estate behind the Throne and to the Mace as it passes us in procession.
When the Queen is present in person, we have no need of the Mace. Next Tuesday, as the Queen arrives in Westminster Hall, a cloth will gracefully be pulled over the silver gilt of the Mace. Last week, the Queen gave Royal Assent to half a dozen Acts of Parliament—yes, a ceremonial formality, but a public assurance of due process and authority. In a few weeks’ time, the Queen will sit on the Throne in this Parliament Chamber and announce the Government’s new programme of legislation for the 58th time. If anyone has cause to complain about the relentless tide of legislation, it is she.
The scene at State Opening will be readily identifiable, with the Tudor depiction of the same ceremony embossed on one of our Christmas cards last year. That is part of the point. The Queen provides the nation with a reassuring symbol of continuity and stability that many of us value. Political parties and financial markets go up and down; fashions and celebrity wax and wane; but the crowds for royal weddings over the decades and the centuries have been constant.
One of the Queen’s greatest qualities is that she has appeared unchanging while changing very much indeed. The Queen has quite simply kept in touch with our national life throughout her reign. The United Kingdom in 2012 is a world apart from that of 1952, let alone the imperial court in which Her Majesty was raised. It is an achievement of some skill that the Queen remains quite so relevant to our national life and in touch with her subjects. Those of us, and there are a few of us in this House, who are privileged enough to have been Chancellors of the Duchy of Lancaster know from our personal experience the keen interest that the Queen takes in hearing in detail about the Duchy’s affairs, and the pleasure that she gets from it.
The Queen is not simply owed our respect as head of state; she inspires it as an individual. It is a privilege to lead these tributes today, and I am confident that they mark the start of a deservedly happy jubilee. I know that the Lord Speaker will speak eloquently on our behalf next Tuesday. I beg to move this Motion for an humble Address.
Business of the House
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Lord Strathclyde
That the debate on the Motion in the name of Lord Howell of Guildford set down for Friday 16 March shall be limited to three and a half hours and that the debate on the Motion in the name of Lord Sassoon set down for Thursday 22 March shall be limited to five hours.
Lord Barnett
I take the opportunity of asking the noble Lord the Leader of the House why we have not yet had an opportunity to debate the serious matter of access by Members of the House to the Peers’ car park. When I last raised it, the noble Lord’s deputy told me that it would be a matter of course. But in practice we have been prevented by putting down Written Answers. If an early opportunity is not given, I will have to put down a Motion myself to allow the House to decide.
The Chancellor of the Duchy of Lancaster (Lord Strathclyde)
Of course, the noble Lord is free to do whatever he wishes to do within the rules as laid down in the Companion to the Standing Orders. However, I am prepared to have a discussion with the Chairman of Committees.
Schools (Specification and Disposal of Articles) Regulations 2012
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Lord Strathclyde
That the draft orders and regulations be referred to a Grand Committee.
Business of the House
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Lord Strathclyde
That Standing Order 40(1) (Arrangement of the order paper) be dispensed with on Tuesday 13 March to enable proceedings on the Health and Social Care Bill to take place before Oral Questions.
Business of the House
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Lord Strathclyde
That Standing Order 46 (No two stages of a Bill to be taken on one day) be dispensed with on Tuesday 6 March to allow the Supply and Appropriation (Anticipation and Adjustments) Bill to be taken through all its remaining stages.
European Council
Lord Strathclyde Excerpts(12 years, 8 months ago)
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The Chancellor of the Duchy of Lancaster (Lord Strathclyde)
My Lords, this may be a convenient time to repeat a Statement on the European Council made in the House of Commons earlier this afternoon by my right honourable friend the Prime Minister. The Statement was as follows:
“This Council focused on the measures needed to address the growth crisis in Europe and complete the single market. It also reached important conclusions on Somalia, Serbia and Syria. Let me take each in turn.
First, growth and jobs. This was the first European Council for some months not completely overshadowed by the air of crisis surrounding the eurozone. The problems in the eurozone are far from resolved and we need continued and determined action to deal with them. But the biggest challenge for Europe’s long-term future is to secure sustainable growth and jobs.
Ahead of this Council, Britain, along with 11 other EU member states, set out in a letter our action plan for growth and jobs in Europe. This was an unprecedented alliance involving countries from all across Europe, representing over half the EU population and a quarter of a billion people. It included our traditional partners on this agenda in northern Europe but it also included countries such as Poland, one of the largest in the EU, and countries such as Spain and Italy in the south of Europe, which previously had not prioritised this agenda.
Over the past year, we have frequently succeeded in inserting references to the single market and competitiveness into Council conclusions, and the Commission’s proposals have begun to reflect that. But what was encouraging at this Council was that an EU growth agenda, based around free trade, deregulation and completing the single market, received stronger and broader political support from Heads of State and Government than ever before. A whole series of concrete commitments to actions and dates by which those actions need to be taken were inserted into the final communiqué. Now it is vital that these commitments are fulfilled.
The reason why Britain so strongly insists on the completion of the single market is because of its huge potential for growth and jobs at home. The single market is the biggest marketplace in the world, with 500 million consumers. Removing barriers to trade in products has had a huge impact and, with one of the largest manufacturing sectors in Europe, Britain has benefited from that.
But the benefit can be even greater if the single market is completed in other areas where Britain has also great strengths. The first of these is services. Full implementation of the services directive could add 2.8 per cent to EU GDP within 10 years. Britain would stand to be one of the prime beneficiaries because, from financial services to legal services to accountancy, Britain has some of the leading companies in the world.
The Council also agreed to complete the digital single market by 2015. This could boost EU GDP by as much as €110 billion every year. Again, this could particularly help Britain with our strengths in digital technology and all forms of creative content, including film, television and online media.
The Council agreed a specific deadline to complete the single market in energy by 2014. This could add 0.8 per cent to EU GDP and create 5 million jobs. Again, many of these jobs will be in Britain, because we are a major producer and exporter of energy with the most liberalised market in Europe. The Council agreed there will be a special focus on trade, including trade deals with fast-growing parts of the world, at the next Council in June. Completing all open bilateral trade deals could add €90 billion to the EU economy, and a deal with the US would be bigger than all the others put together. Britain is one of the most open trading nations in Europe and that is why trade deals have a particular importance for us.
On deregulation, for the first time we got a specific commitment to analyse the costs of regulation sector by sector and a repetition of our call for a moratorium on new regulations for those businesses with fewer than 10 employees. Taken together, these measures represent a clear and specific plan for growth and jobs at the EU level and we must now ensure that Europe sticks to it.
Turning to wider international issues, on Somalia the Council welcomed the conference held in London last month and the important conclusions that we reached, cracking down on piracy and terrorism and supporting a Somali-led process for a new representative and accountable Government.
On Serbia, Britain has always been a strong supporter of enlargement of the European Union from eastern Europe to the countries of the western Balkans. This policy has clearly demonstrated success in embedding support for democracy, the rule of law and human rights across the continent, so I was particularly pleased that the Council granted Serbia candidate status. I have no doubt this decision would not have been possible without the courageous leadership of President Tadic. It was he who secured the arrest of Ratko Mladic, closing one of the darkest chapters in Serbian history. And it was he who took the brave decision to engage in a dialogue with the Kosovans.
It is also right to mention the leadership of the Kosovan Prime Minster, Hashim Thaçi. He, too, has been prepared to enter into constructive dialogue with Serbia. That decision has rightly been rewarded by the European Commission starting the process which can lead to a new contract between the European Union and Kosovo. This is the first important milestone on the long road for Kosovo to join the European Union.
Let me turn to the grave situation in Syria. I know the whole House will join me in welcoming the safe return of British photographer Paul Conroy, who escaped from Baba Amr last week. I spoke to him this morning and he described vividly the barbarity he had witnessed in that city. The history of Homs is being written in the blood of its citizens. Britain is playing a leading role in helping to forge an international coalition to do three things: first, to make sure there is humanitarian assistance for those who are suffering; secondly, to hold those responsible for this appalling slaughter to account; and, thirdly, to bring about the political transition which will put a stop to the killing. We must pursue all these goals at the same time.
On humanitarian assistance, Britain has already provided an extra £2 million to agencies operating on the ground to help deliver emergency medical supplies and basic food rations for over 20,000 people. But the real problem is getting that aid into the affected areas. Now that the Syrian Government have occupied Baba Amr, they have a duty to allow humanitarian access to alleviate the suffering they have caused. Britain will be working this week to secure a UNSC resolution which demands an end to violence and immediate humanitarian access. The longer access is denied, the more the world will believe that the Syrian regime is determined to cover up the extent of the horror it has brought to bear on Baba Amr.
Secondly, we are working to make sure that those responsible for crimes are held to account. The European Council agreed that there must be a day of reckoning for those who are responsible. Britain and its European partners are working together to help document the evidence of these atrocities so that evidence can be used at a later date. International justice has a long reach and a long memory.
Thirdly, we are working for a political transition to bring the violence to an end. The European Council was clear that President Assad should step aside for the sake of the Syrian people and supported the efforts of Kofi Annan to work for a peaceful process of political transition.
Syria’s tragedy is that those who are clinging to Assad for the sake of stability are in fact helping to ensure the complete opposite. Far from being a force for stability, Assad’s continued presence makes a future of all-out civil war ever more likely. What can still save Syria is for those who are still supporting and accommodating Assad’s criminal clique to come to their senses and turn their back on the regime.
It is still possible that Syria’s national institutions can be saved and play their part in opening a path to an inclusive, peaceful and decent transition. We will deploy every tool we can—sanctions, aid and the pressure of diplomacy—reaching out to the opposition in Syria and beyond. We will work with anyone who is ready to build a stable, inclusive, non-sectarian, open and democratic Syria for all Syrians. That is the choice that is still open to those in authority in Syria. Now is the time to make that choice, before it is too late.
Finally, on Friday morning 25 member states signed the intergovernmental agreement on the fiscal compact. This binds countries in the eurozone to a budget deficit of no more than 0.5 per cent, and it involves countries giving up the power to write their own budget if they go beyond it. Britain is not signing this agreement. Britain is not in the euro and it is not going to join the euro, so it is right that we are not involved. But it is important that we continue to ensure that vital issues such as the single market are discussed by all 27 members. That is exactly what happened at this Council. Far from not being included in the vital discussion that affects our national interests, Britain helped to set the agenda at this European Council and Britain helped ensure its success. I commend this Statement to the House”.
Lord Strathclyde
Oh dear, my Lords, I was hoping for something rather more positive from the noble Baroness. It would help if the party in Opposition were to rethink its policies on Europe and try to answer some of the questions that she herself has posed. I shall return to that in a moment.
First, I echo her words on Syria and welcome them. Of course, an enormous amount is being done on the ground in that benighted part of the world. It is clear to anyone reading the newspapers and watching television that it is a fast-moving situation which is likely to continue over the course of the next few weeks.
What are we doing about it? Our top priority is to make sure that the humanitarian situation is improved on the ground. The International Development Secretary is planning to speak to the noble Baroness, Lady Amos, today. We believe that she is flying from New York to the region today, expecting to get access to Syria, even though her efforts last week were halted. Our permanent representative to the UN is speaking to the IRCR in New York today. I am sure that my right honourable friend the Prime Minister, who hopes to speak to President Putin—indeed, he may have done so—will raise the issue with him if he has the opportunity.
Obviously, this was a Council meeting that concentrated on the issue of growth and employment. I thought that the noble Baroness was unusually carping about my right honourable friend when she talked about the eurozone agreement that had been signed by the 25. The history of that is well known. She and I have debated this across the Dispatch Box but we still do not know whether, if the Leader of the Opposition had been leading for Britain in the December Council, Mr Miliband would have signed the agreement or not. Increasingly, we believe that he would not have signed it, but we do not know.
Baroness Royall of Blaisdon
My Lords, my right honourable friend the Leader of the Opposition would have ensured that there was a better deal on the table in the first place. He would not have left an empty chair at all these important Council tables.
Lord Strathclyde
My Lords, we have ended up with the best deal for Britain. We have safeguarded Britain’s interests and allowed the countries of Europe to try to solve the problems of the eurozone. We very much support them, not least because we have an absolute interest in their success. We want the euro area to sort out its problems and achieve the stability and growth that all of Europe needs, and we very much welcome the progress that has been made. The European Central Bank has provided extensive additional support to banks, and many euro area countries are taking difficult decisions to address their deficits, and giving up a degree of sovereignty over the future governance of their economies. They also agreed to set up a firewall, and it is entirely right that they should do so. If the noble Baroness regards that as the Prime Minister somehow being isolated in Europe, we shall have to agree to differ, because the safeguards are clearly there.
Some doubt was expressed also on the conclusions of the European Council. The noble Baroness asked whether I could confirm that measures on the energy market, trade, growth and micro-enterprises were all announced at previous EU Councils. That was a perfectly fair and appropriate question, but the fact that they were announced in the past does not mean that it was not necessary to mention them again in this Council. These are all important issues that of course were discussed at previous Councils; but this time the content is more concrete. A year ago, the conclusions talked of the importance of the issues, but not the detail of what was to be agreed. It is now even more urgent, and we have secured more concrete language to put pressure on the Commission.
Of course, the issues of growth and innovation come up every year, and it is a tradition to discuss them at the spring Council. However, the letter that Britain organised and sent to the President of the Commission was last year signed by nine countries and this year by 12, including Italy and Spain. This year’s letter also goes further and discusses financial services and trade. Some similar issues are addressed; for example, the digital single market was included because there has not yet been enough action on that. The conclusions of the Council this time reference all eight of our action points, and there will be a more concrete follow-up.
The background to this Council is extremely well known. It is one of the most economically unstable backgrounds that the European Union has ever faced, and nobody thinks that we are yet out of the woods. However, we seem to be in a period of relative stability, and it was entirely correct that in the Council we should concentrate on improving our competitiveness, employment and growth.
Lord Dholakia
My Lords, I thank my noble friend for repeating the Statement and will make a positive response. We certainly welcome the emphasis on growth, competitiveness and completion of the single market. We also welcome the collaboration between the United Kingdom and other heads of state and Governments in shaping Europe’s strategy on jobs and growth. Does this not show that we get better results when we work together closely with our European partners, and that a strategy of positive engagement in Europe works to our benefit?
On enlargement, we welcome candidate status being accorded to Serbia, with a view to opening accession negotiations. We also welcome the Council’s intention to launch a stabilisation and association process with Kosovo. How will the British Government support these processes, and what is their view of the prospects of continuing progress?
Lord Strathclyde
My Lords, I am very grateful to my noble friend, who of course is quite right that it is good to concentrate on jobs, growth and competitiveness. It is also important that we should work together. Britain is very much in the lead on this co-operation, working closely with other countries. The Statement is very clear not only about the British interest but also the wider European interest. That is why we have sought to complete the single market in services, the digital single market and also the energy single market, which we believe will be a substantial force in reducing prices overall and raising living standards throughout Europe. It is our intention to continue working together on these important issues at a European and bilateral level. We can see from the letter that was agreed by 12 of our partners that there is a good deal of co-operation.
Lord Williamson of Horton
My Lords, I, too, welcome the Government's Statement, and in particular the front-line role given to the statement that the biggest challenge for Europe's long-term future is to secure sustainable growth and jobs. I note that in its conclusions, the European Council states that it will concentrate on the implementation of reforms and pay particular attention to measures that have a short-term effect on jobs and growth. That is long overdue and I am very pleased to see it.
I am one of the Members of the House who reads all 45 paragraphs of the conclusions, not just the Statement. I will make one comment and then pose two questions or invitations to the noble Lord. My comment is that I am very pleased to see, in the section on action at a national level, that inter alia all member states are invited to remove barriers to the creation of new jobs. I make this point because it is important to realise that in the single market it is not just the EU institutions and the UK Government but the prosperity of the whole Union that matters. That is a very important point that could ultimately be advantageous to UK growth.
My first invitation is that the Leader of the House should spend a day and night giving priority to two points in particular. I say that because long experience has taught me that conclusions always have masses of things in them, and that if one wants to get anywhere one has to concentrate on one or two major points. The two points that strike me as very important are well known and come from the text of the conclusions. The first is that,
“efforts will continue in order to … reduce the administrative and regulatory burdens at EU and national level”.
Personally, I would like to have seen a stronger word than “continue”. I would like to have seen something like “be stepped up”. However, it is extremely important for the United Kingdom to keep the emphasis on this point, even if it irritates some people, because we need action.
My second point concerns paragraph 18, which states that,
“efforts must be stepped up”—
I am glad that this time it says “stepped up”—
“with a view to … creating the best possible environment for entrepreneurs to commercialise their ideas and create jobs and putting demand-led innovation as a main driver of Europe's research and development policy”.
This is not referred to in the government Statement, but it is important. There is great potential for Britain in using European research and development policy to drive action at a commercial level as well. Over time it could be highly beneficial. Therefore, I invite the noble Lord to spend a day and a night concentrating on those two points with his colleagues.
Lord Strathclyde
My Lords, I very much welcome what the noble Lord said. He is not alone but part of a small and very keen group of Peers who read and study the conclusions and then ask me questions on them. Fortunately, I, too, am one of those who read them. That does not mean that the noble Lord will never catch me out. However, my eye was drawn to these two conclusions—particularly the one that mentioned taking steps to remove administrative and bureaucratic burdens. This is something the Prime Minister spent a great deal of time talking about at the Council, one of the reasons being that very often Council conclusions will talk about these measures and about growth and employment measures but the Council does nothing about them. It is very important that we get into a process where the Council and the Commission do something about them.
Secondly, on more innovation, I very much admire the noble Lord for bringing this one out. Innovation is going to be the engine of growth within the whole of Europe, as he rightly pointed out, and I very much welcomed his earlier remarks about this Council being on sustainable growth and jobs. The key to all this is, of course, implementing these high sounding phrases. The noble Lord was correct in pointing out that this is not just about doing these things at a European level or, indeed, a British level. It is for every country in Europe to play a role. Within our own parliamentary system, we need to be part of that process that pushes down on regulation. We try to remove barriers to trade wherever we find them. The history of post-war Britain is that where we remove these barriers, we increase growth and employment prospects for all.
Baroness Falkner of Margravine
My Lords, while the time may not be nigh to recall that the United Kingdom has obligations under the “responsibility to protect” norm and under the genocide convention in terms of Syria, will the Minister reflect on those responsibilities and tell us whether in the interim, for the time being, now, the UK Government will consider on their own or as a coalition of the willing doing just three things: cutting diplomatic ties with Syria; banning its commercial flights landing at our airports and, in a coalition of the willing, at other European airports; and naming the 100 or so members of the Syrian regime as subjects for future indictments at the International Criminal Court?
Lord Strathclyde
My Lords, my noble friend encourages us to act unilaterally on the list of subjects that she offered. I am aware that we are moving forward on some of them, perhaps more tentatively than my noble friend would like. On others, we are not doing so. Perhaps I can check the situation when I get back to my desk, and if I can offer her any more concrete examples, I shall write to her.
Lord Brooke of Sutton Mandeville
My Lords, on the previous occasion that my noble friend delivered the Prime Minister’s Commons Statement on a prior European Council, did he notice the coincidence in the accompanying conclusions communiqué that the number of SMEs in the European Union is 23 million and that the number of unemployed in the EU is, give or take thousands, almost precisely the same number? Without expecting my noble friend to have the same UK statistics to hand, does he find it attractive that British SMEs should seek to provide one extra job each, carrying the double advantage of creating an example of hope to the rest of Europe at large and simultaneously highlighting the desirability of reducing regulations on companies with fewer than 10 people?
Lord Strathclyde
My Lords, my noble friend has a well earned reputation for finding these sorts of statistics that have passed so many others by, including me. He is right on the figure of 23 million small firms and 23 million unemployed. One each has an extra job, and that sweeps up unemployment. Of course, that is one of the reasons why, at last, many other European countries are joining us on deregulating and are accepting the case that what are called microenterprises—those that employ fewer than 10 people—are one of the basic engines for growth and employment. I am very grateful to my noble friend for pointing that out.
Lord Kerr of Kinlochard
I thank the noble Lord for repeating the Statement, and I agree with him about the importance of deregulation. I think it was in 1988 that I first wrote in one of these post-European Council prime ministerial Statements the sentence on deregulation. For the first time, we got a specific commitment. I am a little cynical about these European Councils. Of course, I think it is a wonderful idea that they should have talked about growth and the single market, but if you read the conclusions as avidly as my noble friend Lord Williamson, you discover that there is a sort of shopping list containing all the proposals that anybody ever had, including all those the Commission has had. For example, when we agreed the conclusions we appear to have agreed that work should be carried forward on the financial transactions tax, which seems to me to be one of the silliest proposals on the table now. I cannot think why we do not say, “Let’s just stop it”, because we can. It is on the legal basis of unanimity, and we can say that we are not going to agree. I think the conclusions are interesting, and it is good that the right subjects are being discussed, but they are a little bit of a ragbag.
I want to ask the Leader a completely different question. It is not about why we did not sign up to the treaty of 25, although the Statement is possibly a little suggestio falsi eye on that, in that it points out that the obligations apply only to the eurozone countries but does not point out that the Poles, the Swedes and six other member states thought it worth being in the room, at least, and are not committed to the obligations. I want to ask about Kosovo. I am sure the Leader is a great expert on Kosovo. I am not, but I see that the Statement speaks of a,
“process which can lead to a new contract between the European Union and Kosovo”.
Have all member states of the European Union recognised Kosovo? If they have not yet recognised Kosovo, how will this process work? Why do those who have not yet recognised Kosovo resist the independence of Kosovo? Could it be because they do not like secession movements, for example, in their own countries? Is this a point that the noble Lord will draw to the attention of his countrymen and mine?
Lord Strathclyde
My Lords, the noble Lord always speaks here with the voice of experience and knowledge, not least as an author of EU conclusions. I think that he said, in this rather empty House, that he is just a little bit cynical about these conclusions. It is easy to become cynical when you read these conclusions and you see the same words and phrases coming up again. I shall resist the temptation to join the Prime Minister in saying that this is a new dawn. However, the Prime Minister is very keen that when the EU says it is going to do something, it should do so. That is why he has very much been at the vanguard of making the arguments that he has, and I know that he will hold the Commission to account over the months and years ahead. Incidentally, I agree with the noble Lord about being a little bit cynical; I agree with him about the financial transaction tax. We are doing well today.
What about Kosovo? The noble Lord made a point that will be endlessly discussed over the next few years vis-à-vis the situation within the United Kingdom. I have not got an answer as to whether all the countries of the EU have recognised Kosovo. At the moment we are seeking to encourage both Serbia and Kosovo to maintain their constructive approach to further dialogue. This is crucial to the EU futures of both Serbia and Kosovo, and to stability in the region and improving the lives of its people.
One thing that came out, of course, was that the General Affairs Council gave impetus to Kosovo’s EU future this week—but I do not think that was necessarily the point the noble Lord was making, which was infinitely more subtle and will require a little bit more homework from my point of view. However, I am sure that other parts of the EU seeking to secede from their mother countries will want to see not only what is developing in Kosovo but in other parts of the EU as well.
Lord Marlesford
My Lords, can my noble friend the Leader expand a little on paragraph 26 of the Council conclusions on contributions to the IMF funds? I think I am right in saying that the G20 agreed that the amount of funds for the IMF should be reviewed; that the review came up with the need to double them and that this doubling would cost Britain about £10 billion, but that this £10 billion does not count as part of public spending because it is merely a guarantee rather than a cash payment.
Am I right in thinking that HMG will be favourably disposed to playing their part—the part I have just described—in the increase in the IMF funds, assuming that 70 per cent minimum collaboration is achieved, but that if there was a special fund to rescue the eurozone by producing funds through the IMF, as is slightly referred to in paragraph 26, Britain would not contribute to that?
Lord Strathclyde
My Lords, my noble friend knows that we are a founding member of the IMF and we are very much supporters of a well funded IMF. It is one of the most creditworthy institutions in the world, which can draw on resources from all its 187 members to fulfil its role. There are no firm proposals on the table yet. However, I can confirm to my noble friend that we have been clear, consistently, and will continue to be clear that the IMF cannot lend money to support a currency.