Corporate Insolvency and Governance Bill

Baroness Jones of Moulsecoomb Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 9th June 2020 Lords Chamber

[Baroness Jones of Moulsecoomb (GP) [V]]

My Lords, my concern about this Bill is the same as my concern about the Government’s wider response to the current economic crisis, which is that no thought appears to have been given to the risks of propping up failing, climate-destroying businesses. For example, the Bank of England has been giving hundreds of billions of pounds of cheap loans to oil and gas companies as part of its Covid-19 relief efforts.

Although it is essential that we support viable, positive businesses through the coronavirus crisis, the Bill completely misses the mark when it comes to addressing the much larger and longer-term climate and ecological emergency. It should make provisions that contribute to the 2050 net-zero carbon emissions target; it should contain provisions that prevent public money bailing out carbon-spewing, filthy companies and industries; and it should build a framework for managing the winding-up of planet-destroying companies, which will have no future in a net-zero world.

Trillions of pounds globally are tied up in the assets of these dirty industries, and almost everyone’s pension pot will be invested in them. Much of these companies’ value will evaporate into thin air when the necessary policies are imposed to reach a net-zero world. The Government should act now to manage this decline in a socially just way, protect pension investments, and prevent precious public funds being wasted in propping up these polluting companies, which will inevitably be consigned to the dustbin of history.

I support the points made by the noble Baronesses, Lady Neville-Rolfe, Lady Kramer and Lady Burt of Solihull, on the issue of timely payments for smaller companies, which are most vulnerable to this crisis. We need to think about how to make it easier for them to survive.

I want to pick up on a point made by the noble Lord, Lord Dobbs, with which I strongly disagree—that somehow a virtual or hybrid House of Lords is not an effective way of holding a Government to account. He cited the House of Commons, where there were many interventions. I point out that interventions are not necessarily of any use. The way that we are operating now shows a great deal of creativity on the part of the House of Lords and I hope that it will persist into the future. I would also like to point out that the noble Lord is a year older than I am and he is therefore in a vulnerable category. We should all take care and listen to government advice about staying at home.