Corporate Insolvency and Governance Bill
Eleanor Laing ExcerptsWednesday 3rd June 2020
(3 years, 10 months ago)
Commons ChamberRead Full debate Corporate Insolvency and Governance Act 2020 View all Corporate Insolvency and Governance Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 3 June 2020 - (3 Jun 2020)
The Chairman of Ways and Means (Dame Eleanor Laing)
Before I ask the Clerk to read the title of the Bill, I should explain that, in these exceptional circumstances, although the Chair of the Committee would normally sit in the Clerk’s chair during Committee stage, in order to comply with social distancing requirements I will remain in the Speaker’s Chair, although I will be carrying out the role not of Deputy Speaker but of Chairman of the Committee.
Clause 1
Moratoriums in Great Britain
Lucy Powell (Manchester Central) (Lab/Co-op)
I beg to move, amendment 1, page 3, line 24, after “debts,”, insert—
“(da) a statement on behalf of any trade union made on behalf of employees affected by the proposed rescue of the company as a going concern,”
This amendment would include trade union views among the relevant documents which must accompany an application by the directors of the company to the court for a moratorium.
The Chairman of Ways and Means (Dame Eleanor Laing)
With this it will be convenient to consider:
Amendment 2, page 4, line 38, at end insert—
“(2A) For small businesses, in this Chapter, the initial period, in relation to a moratorium, means the period of 30 business days beginning with the business day after the day on which the moratorium comes into force.”
This amendment would extend the moratorium for small business from 20 days to 30 days for businesses facing insolvency.
Clause stand part.
Clauses 2 to 9 stand part.
Amendment 3, in clause 10, page 63, line 21, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period since 1 March 2020 during which a court in Great Britain is to assume that a person is not responsible for any worsening of the financial position of the company or its creditors that has occurred, following the onset of the coronavirus pandemic.
Clause 10 stand part.
Amendment 4, in clause 11, page 64, line 46, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period since 1 March 2020 during which a court in Northern Ireland is to assume that a person is not responsible for any worsening of the financial position of the company or its creditors that has occurred, following the onset of the coronavirus pandemic.
Clauses 11 to 12 stand part.
Amendment 5, in clause 13, page 69, line 12, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period since 1 March 2020 during which section 233B of the Insolvency Act 1986 (to be inserted by clause 12 of this Bill) does not apply in Great Britain in relation to a contract for the supply of goods or services to a company where the company becomes subject to a relevant insolvency procedure, and the supplier is a small entity at the time the company becomes subject to the procedure.
Clauses 13 to 16 stand part.
Amendment 6, in clause 17, page 76, line 1, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period since 1 March 2020 during which Article 197B of the Insolvency (Northern Ireland) Order 1989 (to be inserted by clause 16 of this Bill) does not apply in Northern Ireland in relation to a contract for the supply of goods or services to a company where the company becomes subject to a relevant insolvency procedure, and the supplier is a small entity at the time the company becomes subject to the procedure.
Clauses 17 to 22 stand part.
Amendment 13, in clause 23, page 79, line 20, leave out “section 18” and insert
“sections (Moratoriums in Great Britain: time-limited effect and renewal), (Moratoriums in Northern Ireland: time-limited effect and renewal), (Arrangements and reconstructions for companies in financial difficulty: time-limited effect and renewal), (Protection of supplies of goods and services: time-limited effect and renewal) and 18”
This amendment allows the Secretary of State to make consequential, incidental or supplementary or transitional provision or savings (including modifying the effect of this Act or any other enactment, making different provision for different purposes and binding the Crown) in connection with NC6, NC7, NC8 and NC9.
Clauses 23 to 47 stand part.
New clause 1—Ring-fence for unsecured creditors—
“(1) Section 176A of the Insolvency Act 1986 is amended as follows.
(2) After subsection (2), insert—
‘(2A) The prescribed part of the company’s net property available for the satisfaction of unsecured debts shall not be less than 30 per cent.’”
This new clause inserts into section 176A of the Insolvency Act 1986 a requirement that at least 30 per-cent of the proceeds from the sale of assets of businesses (after the deduction of the amounts owed to preferential creditors and the fees/expenses of the insolvency practitioners) in administration and liquidation shall be ring-fenced for payment to unsecured creditors.
New clause 3—Corporate governance: reforms—
“(1) Before 31 December 2020, the Secretary of State must—
(a) carry out a review of corporate governance;
(b) set out the conclusions of the review in a report;
(c) publish the report; and
(d) arrange for copies of the report to be laid before both Houses of Parliament.
(2) The report under subsection (1) must in particular set out the Government’s proposals for—
(a) ensuring greater accountability of directors in group companies which sell failing subsidiaries;
(b) legislating to enhance powers for insolvency practitioners in relation to value extraction schemes (removal of value from a firm at the expense of its creditors when in financial distress);
(c) further raising standards by ensuring that directors of a company publish regular explanations to their shareholders as to what extent the company can afford to pay dividends alongside its financial commitments such as capital investments, workers’ rewards and pension schemes.”
This new clause paves the way for the introduction of measures proposed in the 2018 consultation on Insolvency and Corporate Governance.
New clause 4— Preference for pension scheme deficits in case of insolvency—
“(1) The Secretary of State, after consulting the Pensions Regulator, may make regulations amending this Act to ensure that contributions owed to pension schemes by a company are treated in the categories of preferential debts under the Insolvency Act 1986 as a priority secured creditor.
(2) Regulations under this section may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.”
The intention of this new clause is to make pension scheme deficits a ‘priority creditor’ in the event of insolvency and therefore due to be paid before unsecured creditors.
New clause 5—Trade union representation in restructuring process—
“(1) Before 31 December 2020, the Secretary of State must—
(a) carry out a review of the role of trade unions in company restructuring arrangements;
(b) set out the conclusions of the review in a report;
(c) publish the report; and
(d) arrange for copies of the report to be laid before both Houses of Parliament.
(2) The report under subsection (1) must in particular set out the Government’s proposals for ensuring that trade unions representing employees affected by any proposed restructuring are—
(a) provided with all the information made available to the court,
(b) fully consulted by the directors of a company before any application for restructuring is made, and
(c) given the opportunity to contribute to decisions made by the court affecting their members.”
The intention of this new clause is to require mandatory discussion with trade union representatives once a company has entered the restructuring process.
New clause 6—Moratoriums in Great Britain: time-limited effect and renewal—
“(1) Part A1 of the Insolvency Act 1986 (inserted by section 1 of this Act) ceases to have effect on 30 September 2020, subject to the condition in subsection (2).
(2) The condition in this subsection is that the Secretary of State has made regulations by statutory instrument providing that Part A1 of the Insolvency Act 1986 should continue to have effect for a specified further period of no more than one year.
(3) Regulations under this section may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(4) The Secretary of State must keep under review the operation of Part 1A of the Insolvency Act 1986 during the period for which it has effect.
(5) The Secretary of State must arrange for a report of a review under subsection (4) to be laid before both Houses of Parliament no later than 15 September 2020.”
This new clause would terminate the free-standing moratorium provision for Great Britain on 30 September 2020, subject to temporary renewal for up to one year.
New clause 7—Moratoriums in Northern Ireland: time-limited effect and renewal—
“(1) Part 1A of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (inserted by section 4 of this Act) ceases to have effect on 30 September 2020, subject to the condition in subsection (2).
(2) The condition in this subsection is that the Secretary of State has made regulations by statutory instrument providing that Part 1A of the Insolvency (Northern Ireland) Order 1989 should continue to have effect for a specified further period of no more than one year.
(3) Regulations under this section may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(4) The Secretary of State must keep under review the operation of Part 1A of the Insolvency (Northern Ireland) Order 1989 during the period for which it has effect.
(5) The Secretary of State must arrange for a report of a review under subsection (4) to be laid before both Houses of Parliament and the Northern Ireland Assembly no later than 15 September 2020.”
This new clause would terminate the free-standing moratorium provision fin Northern Ireland on 30 September 2020, subject to temporary renewal for up to one year.
New clause 8—Arrangements and reconstructions for companies in financial difficulty: time-limited effect and renewal—
“(1) Part 26A of the Companies Act 2006 (inserted by section 7 of this Act and Schedule 9 to this Act) ceases to have effect on 30 September 2020, subject to the condition in subsection (2).
(2) The condition in this subsection is that the Secretary of State has made regulations by statutory instrument providing that Part 26A of the Companies Act 2006 should continue to have effect for a specified further period of no more than one year.
(3) Regulations under this section may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(4) The Secretary of State must keep under review the operation of Part 26A of the Companies Act 2006 during the period for which it has effect.
(5) The Secretary of State must arrange for a report of a review under subsection (4) to be laid before both Houses of Parliament no later than 15 September 2020.”
This new clause would terminate the new restructuring plan provisions on 30 September 2020, subject to temporary renewal for up to one year.
New clause 9—Protection of supplies of goods and services: time-limited effect and renewal—
“(1) Sections 233B and 233C of the Insolvency Act 1986 (inserted by section 12 of this Act) cease to have effect on 30 September 2020, subject to the condition in subsection (2).
(2) The condition in this subsection is that the Secretary of State has made regulations by statutory instrument providing that sections 233B and 233C of the Insolvency Act 1986 should continue to have effect for a specified further period of no more than one year.
(3) Regulations under this section may not be made unless a draft of the statutory instrument containing them has been laid before, and approved by a resolution of, each House of Parliament.
(4) The Secretary of State must keep under review the operation of sections 233B and 233C of the Insolvency Act 1986 during the period for which they have effect.
(5) The Secretary of State must arrange for a report of a review under subsection (4) to be laid before both Houses of Parliament no later than 15 September 2020.”
This new clause would terminate the widening of Ipso facto (termination) clauses in supply contracts on 30 September 2020, subject to temporary renewal for up to one year.
That schedule 1 be the First schedule to the Bill.
That schedule 2 be the Second schedule to the Bill.
That schedule 3 be the Third schedule to the Bill.
Amendment 7, in schedule 4, page 122, line 38, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period after this Act comes into force during which the Secretary of State may by regulations made by statutory instrument provide for any temporary modifications to primary legislation in relation to moratoriums in Great Britain made by Part 2 of Schedule 4 to cease to have effect.
Government amendment 15.
That schedule 4 be the Fourth schedule to the Bill.
That schedule 5 be the Fifth schedule to the Bill.
That schedule 6 be the Sixth schedule to the Bill.
Government amendment 16.
That schedule 7 be the Seventh schedule to the Bill.
Amendment 8, in schedule 8, page 165, line 28, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period after this Act comes into force during which the Department for the Economy in Northern Ireland may by regulations provide for any temporary modifications to primary legislation, or temporary Rules under Article 359 of the Insolvency (Northern Ireland) Order 1989, in relation to moratoriums in Northern Ireland in made by provision made by Part 2 of Schedule 8 to cease to have effect before the end of the relevant period.
Government amendment 17.
That schedule 8 be the Eighth schedule to the Bill.
Government amendments 18 to 25.
That schedule 9 be the Ninth schedule to the Bill.
Amendment 9, in schedule 10, page 203, line 15, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period in relation to which petitions for the winding up of a registered company may not be presented on or after 27 April 2020 on the statutory grounds specified in section 123(1)(a) or section 124 of the Insolvency Act 1986 (that a written demand has not been paid within 3 weeks) where the demand was served during that period.
Amendment 10, page 209, line 36, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period in relation to which petitions for the winding up of a registered company may not be presented on the grounds specified in Part 2 of Schedule 10 to this Bill (except where coronavirus had not had an effect on the company).
That schedule 10 be the Tenth schedule to the Bill.
Amendment 11, in schedule 11, page 211, line 2, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period in relation to which petitions for the winding up of a registered company may not be presented on or after 27 April 2020 on the grounds specified in sub-paragraph (a) of Article 103(1)(a) or Article 104 of the Insolvency (Northern Ireland) Order 1989 Order (that a written demand has not been paid within 3 weeks) where the demand was served during that period.
Amendment 12, page 216, line 25, leave out “June” and insert “September”
This amendment would extend to 30 September 2020 the period in relation to which petitions for the winding up of a registered company in Northern Ireland may not be presented on the grounds specified in Part 2 of Schedule 11 to this Bill (except where coronavirus had not had an effect on the company).
That schedule 11 be the Eleventh schedule to the Bill.
That schedule 12 be the Twelfth schedule to the Bill.
That schedule 13 be the Thirteenth schedule to the Bill.
That schedule 14 be the Fourteenth schedule to the Bill.
Amendment 14, Title, line 3, after “make” insert “temporary”
This consequential amendment clarifies the temporary nature of the Bill’s provisions.
Lucy Powell
As my right hon. Friend the Member for Doncaster North (Edward Miliband) and I have said, we support the principle of the Bill and urge the Government to do more to support businesses, so that they can remain solvent and do not need to use these provisions. I hope the Minister will take the amendments in the constructive way they are meant. I will speak to each of them in turn and set out why we are seeking reassurances or think that the Government should consider changes to the Bill as it progresses. This has been a very truncated process, so we are relying on Ministers’ good will to take on board not just the comments I am about to make but those made on Second Reading, some of which were excellent suggestions.
I will take the self-explanatory amendments first. Amendments 3 to 12 inclusive would extend the time limits of the covid-19-specific provisions in the Bill. We welcome the retrospective nature of the provisions, but as we have discussed with the Minister, we suggest that the Government amend the Bill to extend the time limits for a number of the provisions, as they are insufficient given the prolonged nature of the crisis. Specifically, the suspension of the wrongful trading liability and statutory demands and winding-up petition measures should be extended to the same date as when the AGM and company account filing measures are valid, which is until 30 September.
Clearly, there was a sense from Government when the Bill was being drafted that on 30 June, most things would be back to business as usual. It is now clear that many sectors will not even be partially open for business again by that deadline—I am thinking particularly of hospitality, travel, tourism and the arts and their associated supply chains. They will not even have begun trading by the end of this month, let alone be getting back to any kind of solvency.
The Chairman of Ways and Means (Dame Eleanor Laing)
I thank the hon. Gentleman for his point of order. I can well understand his consternation. The behaviour of hon. Members when they are outside this building is, of course, not a matter for the Chair, but what is a matter for the Chair and for Mr Speaker is the safety of Members of this House, of people who work here, and of the many, many people who have continued to work here, through a sense of duty, during these last difficult weeks. It will be obvious to the Committee and to anyone watching our proceedings that Mr Speaker has gone to a great deal of effort to make sure that Members and staff working here are protected. Social distancing rules, as one can see by looking at the Benches and the way in which this entire building is now set out, have been very rigorously developed to make sure that everyone who works in this building, who is here to do their duty, is protected and will not put other people, including their constituents and their families, at any risk.
If any Member of this House is openly flouting the rules that we have asked every citizen of the United Kingdom to observe to keep the virus under control, and to protect the vulnerable and to protect the NHS, then that Member is putting not only himself or herself at risk, but everyone else at risk as well. I hope that the hon. Gentleman’s observations will prove not to have been accurate. I am not suggesting that he would say that they were, but I cannot make any comment until I know the facts for certain. I hope that the facts are not as he has stated them, but if it transpires that the facts are as he has stated them, then it should be incumbent upon anyone coming into this building, if they know that they have put themselves at risk of contracting or passing on the virus, to act responsibly. I thank the hon. Gentleman for his point of order.
We will resume the Committee stage. I was hoping I would have some sort of indication that someone might wish to speak. I call Sarah Olney.
Sarah Olney (Richmond Park) (LD)
Thank you, Dame Eleanor. I was not expecting to be next, but I willingly take my place. I state my intention not to press my amendments, but I would just like to say a few words on why I tabled them.
We are in an emergency situation. The response to coronavirus has been first and foremost a public health response, but the necessary measures taken to contain the spread of this appalling virus, supported by all the hon. Members of my party, have now resulted in an economic crisis. While we look forward to a point where the public health emergency has passed at least sufficiently to allow some semblance of a normal life, the economic crisis is likely to have longer and more far-reaching effects. In my constituency, as in those of every parliamentary colleague I am sure, the most immediate impacts are being felt by our small businesses and the self-employed. If we are to plot the most effective path out of this crisis, it is to our small and growing businesses that we should allocate the most care and attention. Apart from the important role that they play in supporting our communities and providing jobs, the new businesses that will emerge from the current shutdown will be offering the innovative goods and services necessary for a new way of life that we may have to get used to. Our recovery—both physical and economic—depends on the next generation of entrepreneurs, and it should be the first priority of the Secretary of State to identify and support them.
The Liberal Democrats support the temporary measures in the Bill. They are sensible measures that should carry successful businesses through the current crisis until such time as they can thrive again on their own terms. We support them, however, only as temporary measures designed to respond to the specific challenges posed by the current crisis. We oppose the bundling into the legislation of permanent changes to our insolvency and corporate governance processes. Permanent changes should be subject to a greater level of scrutiny and debate. My amendment 14 sought to put all the proposed changes on a temporary footing, able to be renewed, but also allowing the proposed permanent measures to be reintroduced to the House at such time as we may be able to consider and debate them properly.
Introducing the proposals as temporary measures would also allow their effect to be properly analysed. Our particular concern is for the ipso facto clause, which can be triggered if an insolvency effectively ends a contract to supply. This will require key suppliers to continue to supply struggling companies, despite the risk that they may not get paid. This transfers the risk from the struggling company to the supplier, which, whether in an economic crisis or not, is unacceptable. In times when cash flow is limited, it is not sufficient protection for a supplier to get in the queue with other creditors in the event of one of its customers falling into administration. Suppliers should retain the right to choose to withdraw their services if they perceive that their resources will face a lower risk return elsewhere. To compel them to continue their supply would be unethical.
I am particularly concerned that such a change would have a disproportionate impact on smaller businesses, especially those that only have the capacity to service a handful of clients, and would be unduly disadvantaged by being required to supply goods and services without the certainty of being paid. I accept that there is a balance to be struck between the needs of customers and suppliers, and that during these difficult times supply chains are critical and need to be supported, but we need to take time to consider the long-term risks of introducing such a change to our insolvency procedures, and the introduction of emergency legislation is not that time.
The acid test of any new legislation at this time should be whether its provisions stimulate and support economic activity. There will be, regrettably, some businesses that will not survive the shutdown. For the sake of those who lose their jobs and livelihoods, it is imperative that capital and investment can be quickly diverted towards those endeavours that can thrive and provide new employment and economic activity. The increase in the scope of exclusions to the ipso facto clause will have precisely the reverse effect, injecting precious working capital into companies that cannot create economic value from it. Now more than ever is not the time to restrict our small business activity in such a way. I urge the Government to adopt the Liberal Democrat proposal that all the provisions of this Bill be time-limited and that we consider the permanent provisions more fully at a later date, when we would have greater insight into the impact of their introduction on our business environment.
Financial and Social Emergency Support Package
Eleanor Laing Excerpts(4 years, 1 month ago)
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Madam Deputy Speaker
It is a poignant moment as I call the shadow Chancellor to make what might be his final speech from the Dispatch Box.
Horizon Settlement: Future Governance of Post Office Ltd
Eleanor Laing Excerpts(4 years, 1 month ago)
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Several hon. Members rose—
Madam Deputy Speaker (Dame Eleanor Laing)
Order. It will be obvious that we have just over an hour left for this debate, which is not long. I hope that we can manage without a time limit, and we will if everyone takes about five to six minutes. That does not mean seven to eight minutes.
Terrorist Offenders (Restriction of Early Release) Bill
Eleanor Laing ExcerptsWednesday 12th February 2020
(4 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 12 February 2020 (revised) - (12 Feb 2020)
Sir William Cash (Stone) (Con)
I beg to move amendment 3, page 1, line 8, after “force”, insert
“and notwithstanding the Human Rights Act 1998”
The intention of this Amendment is to ensure that the Bill meets the rule established by Willes J in Phillips v Eyre (1870) LR 6 QB 1 that the courts will ascribe retrospective force to new laws affecting rights if by express words or necessary implication it appears that such was the intention of the legislature.
The Chairman of Ways and Means (Dame Eleanor Laing)
With this it will be convenient to consider:
Amendment 4, in page 1, line 12, after “force”, insert
“and notwithstanding the Human Rights Act 1998”
The intention of this Amendment is to ensure that the Bill meets the rule established by Willes J in Phillips v Eyre (1870) LR 6 QB 1 that the courts will ascribe retrospective force to new laws affecting rights if by express words or necessary implication it appears that such was the intention of the legislature.
Amendment 1, page 2, line 34, leave out “two-thirds” and insert “nine-tenths”.
Amendment 2, page 2, line 37, leave out “two-thirds” and insert “nine-tenths”.
Clauses 1 and 2 stand part.
Amendment 5, in clause 3, page 4, line 2, after “force”, insert
“and notwithstanding the Human Rights Act 1998”.
The intention of this Amendment is to ensure that the Bill meets the rule established by Willes J in Phillips v Eyre (1870) LR 6 QB 1 that the courts will ascribe retrospective force to new laws affecting rights if by express words or necessary implication it appears that such was the intention of the legislature.
Amendment 6, page 4, line 6, after “force”, insert
“and notwithstanding the Human Rights Act 1998”.
The intention of this Amendment is to ensure that the Bill meets the rule established by Willes J in Phillips v Eyre (1870) LR 6 QB 1 that the courts will ascribe retrospective force to new laws affecting rights if by express words or necessary implication it appears that such was the intention of the legislature.
Clause 3 and 4 to 10 stand part.
That schedules 1 and 2 be the First and Second schedules to the Bill.
New clause 1—Review of prison deradicalisation programme—
“(1) The Secretary of State must appoint a person to review the operation of the provisions of the prison deradicalisation programme.
(2) The person appointed under subsection (1) may enter any prison premises in order to scrutinise the operation of the prison deradicalisation programme.
(3) The person appointed under subsection (1) must make a report to the Secretary of State on the operation of the provisions of the prison deradicalisation programme before the end of the period of 6 months after the date on which this Act is passed.
(4) The person appointed must make further reports at intervals of not more than three months to the Secretary of State on the operation of the provisions of the prison deradicalisation programme.
(5) The person appointed under subsection (1) may include in any review or report under this section consideration of the adequacy of resources made available to the prison deradicalisation programme, including resources made available for the supervision of probation and rehabilitation work.
(6) On receiving a report under this section, the Secretary of State must make arrangements to lay a copy of it before each House of Parliament as soon as the Secretary of State is satisfied that doing so will not prejudice any criminal proceedings.
(7) The Secretary of State may, out of money provided by Parliament, pay a person appointed under subsection (1), such expenses and allowances as the Secretary of State determines.”
This new clause would require the appointment of an independent reviewer of the prison deradicalisation programme.
New clause 3—Review—
(1) The Secretary of State must arrange for an independent review of the impact of sections 1 to 9 to be carried out in relation to the initial one-year period.
(2) The Secretary of State must, after consultation with the Independent Reviewer of Terrorism Legislation, appoint a person with professional experience relating to the imprisonment for offences of terrorism to conduct the review.
(3) The review must be completed as soon as practicable after the end of the initial one-year period.
(4) As soon as practicable after a person has carried out the review in relation to a particular period, the person must—
(a) produce a report of the outcome of the review, and
(b) send a copy of the report to the Secretary of State.
(5) The Secretary of State must lay before each House of Parliament a copy of the report sent under subsection (4)(b) within one month of receiving the report.
(6) The Secretary of State may—
(a) make such payments as the Secretary of State thinks appropriate in connection with the carrying out of the review, and
(b) make such other arrangements as the Secretary of State thinks appropriate in connection with the carrying out of the review (including arrangements for the provision of staff, other resources and facilities).
(7) In this section, “initial one-year period” means the period of one year beginning with the day when this Act comes into force.”
Sir William Cash
I have already canvassed some parts of what I am about to say, but there is more to say, for a very sound reason. Parliament is full of opinions and Ministers are full of opinions. Two Ministers are sitting on the Front Bench at the moment, no doubt debating the issue before the Committee, but their opinions are not the law, and nor are those of leading counsel, whether senior Treasury counsel or those involved in academic discussion. I say that really seriously. I have been practising the law since 1967 and I know a little about how the law is interpreted. We saw the Gina Miller case the other day. How many times were we told that there was absolutely no question but that the Government were right in their interpretation? I served as the shadow Attorney General and saw the whole of the Iraq and Peter Goldsmith exercise. We were told over and over again in the House this, that and the other about interpretation—“This is what will happen. This is the way it will go.” That is no way to make decisions on matters of this kind of critical importance.
There are occasions on which the question of interpretation may merely be about a modification of policy; this is actually about saving human life. I repeat that: saving human life. Where it is possible for the House to ensure that human life cannot be unreasonably and wilfully disposed of by people who are intent on murdering for no reason at all, we need to take seriously the question of whether or not we can exclude the courts —because this is Parliament, not the judiciary—from making wrong decisions when matters come before them.
I heard with interest the Chairman of the Justice Committee, my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), and the various cases he mentioned, and I have just heard the Minister refer to the Uttley case. There is also the Hogben case, which was of course in 1985, before the Human Rights Act 1998. Reference was also made to the del Río Prada case. As a matter of fact, the legislation does not depend on an interpretation of those individual cases by way of precedent, and that is not what we should be worried about; we should be thinking about the purpose and scope of the Bill and its objective, which is to do everything that we can to ensure that human life and public safety come first. I do not want this to become an argument about the interpretation of law, which is why I tabled amendment 3 to clause 1.
Homelessness
Eleanor Laing Excerpts(4 years, 3 months ago)
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Mr Perkins
I am grateful to the right hon. Gentleman for giving way. I appreciate the tone of his rhetoric, but it bears no relation to the performance of the Government’s policies over the past nine and a half years. He talks about homelessness as though it remained a problem, but it is an escalating problem. It is a problem that is running out of control on this Government’s watch. When he comes back to the Dispatch Box, will he not talk about homelessness as though what we are seeing is a continuation of a longstanding problem? What we are seeing under his Government is as a result of his policies. The situation is getting—
Madam Deputy Speaker (Dame Eleanor Laing)
Order. Let us make this clear from the start: we cannot have long interventions. If Members make long interventions at the beginning of the debate, those sitting here hoping to speak at the end will get only two minutes, and that is really not fair. We must have short interventions.
Robert Jenrick
Thank you, Madam Deputy Speaker.
As I said, the figures for the past year suggest we are seeing a reduction in street homelessness—a modest reduction, I admit, of 2%, but a reduction none the less. We will not find out the official figures for the most recent count taken in November until next month, but having been to a number of local authorities across the country in recent weeks and spoken to them it seems to me that we will see a further, more significant fall in rough sleeping when we receive those figures. I have not for one moment suggested that that is an end in itself. We need to go much further and much faster. In my remarks, I will set out exactly what this new Conservative Government intend to do.
Robert Jenrick
I should be happy to meet the hon. Gentleman. He will not be surprised to hear that we have already met a range of stakeholders, including representatives of Shelter and other important organisations, to discuss this issue. We want to ensure that the social housing White Paper does the job that is required, and we are working closely with organisations such as Grenfell United to learn the lessons of that tragedy. We are also working with organisations such as Shelter in connection with our Renters’ Rights Bill, which will bring an end to no-fault evictions and create other important initiatives, including a lifetime deposit which will help those on low incomes and others throughout society by making it easier and cheaper for tenants to move.
We have a clear plan—backed by substantial investment and a proactive approach, and widely welcomed—to tackle homelessness and end rough sleeping for good. As the Prime Minister has made clear, that is an absolute priority for him and for this new Government. We are encouraged by the progress that we have made on rough sleeping in the last two years, and through measures such as the Homelessness Reduction Act 2017, the Housing First pilots and the rough sleeping initiative we are seeing results, but we know that we have to go much further to give some of the most vulnerable people in our society the future they deserve. I believe we can do this; I believe we must do this; and, as a compassionate, one nation Conservative Government, we will not rest until we achieve it.
Madam Deputy Speaker (Dame Eleanor Laing)
Before I call the spokesman for the Scottish National party, I should give notice that, as we have only two hours left for this debate and it is obvious that a great many Members wish to speak, we will start with a time limit of six minutes, but that will soon be reduced to considerably less. The time limit does not, of course, apply to Mr David Linden.
Several hon. Members rose—
Madam Deputy Speaker (Dame Eleanor Laing)
Order. We now have a formal limit of six minutes.
James Cartlidge
That is a very fair point, but the Government are, of course, looking at it, and we await further details. None the less, it is a perfectly valid point. I was simply arguing that, ultimately, the best thing that can happen to those tenants in that position is for them to have choice—to have more supply. Here we have a sector with build to rent that can bring significant extra supply. When we talk about supply, the key thing is additionality, which is a terribly technical word. In other words, it really is additional stock that has come about as a result of an intervention in the planning or funding system, and that additional stock would not have happened without that intervention. It is an incredibly important point.
I also want to talk about regeneration. If we look at the NPPF, we will see that there is encouragement for that type of tenure, for build to rent, where there is large-scale urban regeneration. Something that concerns me about the current housing dialogue, particularly in some Labour-controlled London boroughs, is that, let us be honest, regeneration has become something of a dirty work. It is seen as enforced gentrification by some. Actually, there is a point in that. There have been urban regeneration schemes in some areas, particularly in London, where, arguably, some of the people who lived in the development before the regeneration lost out compared with what happened afterwards. It is difficult, because, in theory, the great thing with regeneration is that greater density brings more supply and improvement to the current stock for those who already live in the development. It is about regenerating and improving an area. That is something that has been supported by parties from across the divide, but we need to see much more of it and more joined-up support from Government for it. We can build on greenfield, on brownfield or on existing stock through regeneration. There is nothing else available unless we reclaim the sea through polderisation, and I do not think that that is about to happen any time soon.
If we do not have significant urban regeneration, we see disproportionate pressure on the countryside, and easy planning decisions of just building more and more on greenfield sites. Brownfield sites come under pressure when we need economic development—when we need land for industry and so on. Regeneration is the key, and that combination of large-scale build-to-rent developments in densely populated urban areas is one part—only one part—of delivering that increased supply so that there is less pressure on rents and, as wages increase, we can reduce the number of people becoming statutorily homeless at the end of an assured shorthold tenancy. There is no easy single answer, but those factors can form a joined-up, holistic, one-nation Conservative housing policy.
Madam Deputy Speaker (Dame Eleanor Laing)
I am delighted to call Abena Oppong-Asare to make her maiden speech.
Several hon. Members rose—
Madam Deputy Speaker (Dame Eleanor Laing)
I give notice that, after the next speaker, the time limit will be reduced to three minutes. [Interruption.] Yes, three minutes, because there is only one hour of debate left. It gives me great pleasure to call Mick Whitley to make his maiden speech.
Several hon. Members rose—
Madam Deputy Speaker (Dame Eleanor Laing)
Order. We now have a time limit of three minutes.
Mohammad Yasin (Bedford) (Lab)
Homelessness is the manifestation of a society that is not working. The soaring numbers of rough sleepers and people living in unstable accommodation should shame this Government, because it betrays a policy agenda that has utterly failed people. The housing crisis has made it difficult for anyone facing relationship breakdown to get a new home, and the crisis in social care has made it difficult for anyone with mental health problems to access services. People can wait months or even years to get help, by which point their health has deteriorated to such an extent that their problems compound and become even more difficult and costly to treat or they lose their jobs and become unable to pay their mortgage or rent.
While I am pleased that the number of people sleeping rough in Bedford has fallen thanks to a number of initiatives, including Bedford Borough Council’s “Assessment & Somewhere Safe to Stay” hub, the SMART Prebend Centre, the King’s Arms Project’s night centre, and the work of the Salvation Army and other charities, levels of homelessness continue to rise. From my constituency inbox, I know that the homelessness problem is not so much on the streets but hidden in temporary accommodation. More and more people and families are living in totally inadequate, unstable accommodation.
This month’s brilliant report by the Bureau of Investigative Journalism found that only five of the 200 two-bed homes in Bedford are affordable to rent on housing benefit. The rise in the allowance from April under the Government’s new proposals will mean that only two more homes would be affordable. The allowance in my area is set to rise by just £10, but the report found that local housing allowance would need to increase by £225 a month to allow people to afford the cheapest 30% of homes in Bedford. These barriers must be removed, and the stigma attached to homelessness that leads to hostile policies must end if we are to stop such practices. We require a long-term, common-sense strategy, a radical and progressive approach to social housing, and an end to piecemeal funding to give children, families, individuals what is surely a basic human right: a safe and decent place to live.