(3 years, 11 months ago)
Commons ChamberI think there is a very legitimate anxiety, which I hope the Minister will reflect on. Again, it was expressed in the Lords. Yes, the Government were defeated in the Lords—all Governments get defeated in the Lords at some point—but we are talking about unprecedented margins, because of the depth and breadth of concern among their lordships about the Bill, including on devolution. In a sense, because the Bill went through so quickly here, there was less time for us to discuss the devolution issues, and the focus was more on international law, but there is deep concern about this.
It is the same on state aid. We support a UK-wide state aid regime, but once again there was no mechanism in the Bill to engage with the devolved nations on setting out this regime. Again, the best that can be said is that maybe the Government have blundered in; the worst would be that they simply do not believe in giving power away when it comes to it in practice; they believe in holding it here. We cannot overestimate the seriousness of this collection of devolution issues. I believe deeply in the United Kingdom; the way we uphold it is by upholding the settlements of the last 20 years, and recognising that commitment to shared governance, but that is not what this Bill does.
I make this point very genuinely. Fidelity to devolution is now being expressed from the Dispatch Box, but Members from Northern Ireland and the Northern Ireland Assembly ask: where that was six, eight or 12 months ago? The Labour party was prepared to ride roughshod over the views of the people of Northern Ireland on the issue of abortion, and to impose laws on Northern Ireland that are there forever, even though the Northern Ireland Assembly has a completely different view from this House on those matters. This fidelity to devolution rings very hollow tonight in many houses in Northern Ireland.
The hon. Gentleman and I have known each other a long time, and if one looks at the record of Labour Members on the devolution settlement, and at everything that has happened over the past 20 years, I think we have absolutely shown fidelity to that devolution settlement in what we have done. [Interruption.] I will conclude because lots of Members wish to speak.
This not just a technical discussion about the Lords amendments; it is about a much deeper set of issues to do with what kind of country we want to be. We must be a country that is confident of our place in the world, and in working with others on the basis of shared democratic principles. We must be a country that stands up for the rule of law, and that recognises that we will be better governed if we share and devolve power, and do not hoard it at Westminster. The Bill achieves none of those things. Indeed, it undermines them. I am afraid that is a mark of cavalier government—cavalier with our international standing, cavalier with the law, and cavalier with the United Kingdom. Labour Members will fight for the values that our country needs, and I hope that as the Bill proceeds back—and, I suspect, forth—from the other place, the Government will listen and work with us in the national interest.
(4 years, 5 months ago)
Commons ChamberI begin by thanking the Business Secretary and the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Sutton and Cheam (Paul Scully), for the constructive conversations that we have had about the Bill, including with the shadow Business Minister, my hon. Friend the Member for Manchester Central (Lucy Powell). We are very much approaching this in a constructive way, and we welcome the discussions.
I want to focus on the provisions in the Bill and the wider policy context around insolvencies, which will determine what happens to millions of businesses in our country. As the Secretary of State implied, we face potentially the most dramatic recession in 300 years. What is more, we know that it is a recession necessitated by the essential public health measures that have been taken to contain coronavirus. Just as we are mutually dependent on each other when it comes to controlling the pandemic, I believe there is agreement across the House that that sense of mutual dependence should extend to the businesses of our country, because it is the right thing to do and because it is in all our interests. Every viable business we save will make the recession less deep and the recovery easier. Every business lost is disastrous not only for that business and its workers, but for our economy and all of us.
We know the great distress that many businesses are facing, and I join the Secretary of State in paying tribute to businesses up and down this country that are keeping going in these circumstances, with one fifth temporarily pausing or ceasing trading during lockdown and another quarter saying that their turnover was down by at least 50%. That is the context in which we should test our approach as a country. I acknowledge that this challenge is bound to test the imagination, speed and responsiveness of any Government, and that is why we want to work constructively with them.
In that context, we welcome the measures in the Bill to help reduce insolvencies and will support their passage. As I will explain, we do not think the Bill does enough to address the dangers for what we might call the less powerful interests—particularly employees—when it comes to insolvency and the new restructuring provision, and I will explain what I mean by that.
Let me say something about the headline provisions, many of which we agree with. As regards the permanent measures, we support the moratorium to give breathing space to firms. We welcome the measures to prevent suppliers from sending businesses into liquidation, suspending so-called ipso facto provisions, and I will say something in a minute about our views on the new restructuring plan provision.
I thank the right hon. Gentleman for giving way and for welcoming this Bill, which I do as well. Does he accept that what is so important about the Bill is that it includes and incorporates Northern Ireland absolutely? Northern Ireland is not cut adrift and the Bill does not have some special arrangement that the Assembly will manage; Northern Ireland is part and parcel of it. The measures have given collective support to businesses across all the United Kingdom and especially in Northern Ireland. Without British money, we would have been ruined. That is the bottom line.
I certainly agree with the hon. Gentleman that it is very important that the approach is UK-wide, and I welcome that.
Let me say something about the temporary measures in the Bill. We think it makes sense to remove the threat around winding-up orders, for example, to deal with the issue around landlords. We welcome the measures that the Secretary of State put in place, but there is another way around, as it were, which is a landlord issuing a statutory demand followed by a winding-up order. We think that the suspension of personal liability for wrongful trading while insolvent makes sense as a measure, but for a strictly time-limited period. It is important, as I think is clear, that other duties continue to apply to directors.
In addition, easing the requirements on company filing deadlines and AGMs makes sense. Indeed, given proceedings yesterday in this House, the facility in the Bill for virtual proceedings at AGMs carries a certain irony. If only the Business Secretary had told the Leader of the House, perhaps we would have been spared a lot of trouble and a lot of queuing yesterday.
As the hon. Members for Dudley South (Mike Wood) and for North Antrim (Ian Paisley) have both said, there is clearly a case for a longer period than to 30 June. This is no disrespect to the people writing the Bill, but I think we can agree across the House that the temporary measures will need to be in place for longer. We would be happy to see an amendment that puts the end of September in the Bill, and one of our amendments would do that. I accept the Secretary of State’s point that the change can be made by statutory instrument.
Having given the Bill a broad welcome, I want to raise some issues.