Northern Ireland Banknote (Designation of Authorised Bank) Regulations 2020

Baroness Anelay of St Johns Excerpts

Tuesday 2nd June 2020 Lords Chamber

[Baroness Anelay of St Johns (Con)]

My Lords, I support the making of the regulations, but I have a couple of questions for my noble friend the Minister for clarification.

I appreciate that commercial concerns have precipitated the need for these regulations because the Explanatory Memorandum states that the restructuring of the RBS Group means that it would now not be able to issue banknotes as Ulster Bank Ltd. The use of this power in the instrument is only its second use ever, and it is therefore appropriate for the House virtually to consider the regulations carefully.

The instrument includes a provision, in Regulation 3(1), that a designation date must be determined by the Treasury and gives a power, in Regulation 3(4), for that date to be changed by the Treasury. I would be grateful if my noble friend the Minister could give an indication of the preferred designation date fixed so far by the Treasury and explain in what circumstances the Government would consider it appropriate to use the power in the instrument to change the designation date. It appears that, if the designation date were to be changed, there would be no further requirement for the Bank of England to be consulted. Can my noble friend confirm whether my understanding is correct?

There are no associated impact assessments for this legislation. Under the heading “Impact”, paragraph 12.3 of the Explanatory Memorandum states:

“An Impact Assessment has not been prepared for this instrument as no, or no significant, impact on the private, voluntary, or public sectors is foreseen.”


It is the reference to “or no significant” impact that caught my attention. My continuing concern with regard to the making of regulations is to consider the impact on the voluntary sector, for example charities, in the broadest sense of the term. That is even more important in these pandemic times when any economic impact on the voluntary sector may prove significant—perhaps the straw that breaks the camel’s back. I would therefore be grateful if my noble friend the Minister could explain how the assessment of impact on the voluntary sector was conducted in the preparation of this instrument and why it was determined that any impact was not significant, however the Government define “significant” in that sense.

I look forward to my noble friend the Minister’s response.