Royal Bank of Scotland

Lord Bates Excerpts

Tuesday 5th June 2018 Lords Chamber

[Baroness Kramer (LD)]

My Lords, I beg leave to ask a Question of which I have given private notice.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, last night the Government conducted a sale of shares in RBS, restarting the phased return of the bank to full private ownership. The Government sold 925 million shares overnight, raising £2.5 billion for the taxpayer. The transaction represents value for money for the taxpayer. RBS is a smaller, simpler and safer organisation than the one that the Government were forced to recapitalise in 2008, and the sale price reflects that reality.

[Baroness Kramer]

My Lords, why sell now, crystallising a loss that rises to in excess of £3 billion, when financing costs are included, when there is no pressure and when the Government claim to be positive about both RBS and the community? Are the Government concerned that, by acting now, they could be selling shares on an inaccurate prospectus, ignoring growing allegations about liabilities to those abused by RBS’s global restructuring group? We are beginning to hear, both in the UK and now in the US, Australia and across the EU, that those liabilities are inadequately quantified, not declared and not provided for in the accounts.

[Lord Bates]

I thank the noble Baroness for her questions. In response to the first one, it must be remembered that when the Government paid £5.02 per share for RBS in 2008 it was an essential injection of capital at a time of financial crisis. The bank whose shares we sold yesterday is a very different organisation. Its balance sheet is £1.5 trillion less. It is operating in nine countries instead of 38. Because we have changed the rules, its capital buffer is now 15.1%, which is greater than it was and well above the threshold required. The noble Baroness also touches on some other important factors. These had a bearing on UK Government Investments, which advised the Government about when to sell—we act on advice in these things. It pointed to the fact that, because a settlement of £3.6 billion with the Department of Justice in the United States, announced in early May, had now happened, it judged this to be a good time to exercise this sale. The Financial Conduct Authority rightly looked into the global restructuring group, where the circumstances are very concerning for the businesses affected. Its report recognised that a number of that group’s customers had been mistreated.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister has made a good fist of a very poor case indeed. He must recognise that the bank is, in fact, being sold at a level massively below its value when it was bailed out in 2008. It is, therefore, the taxpayer who is bearing the cost of this situation. It will not do for the Government to say: “We now have a bank which can pay a dividend and which has made progress. We are therefore delighted to be able to sell it into private ownership, while the public which bailed it out loses significantly on the deal”.

[Lord Bates]

The noble Lord may say that we sold it too cheaply; I might say that he bought it too high, which is another way of looking at the £5.02. It is a fundamentally different bank to the one which was acquired then. The price which we sold at yesterday—271p—was near the top end of the present yearly average. We have signalled that we do not believe that a Government should be in the business of running these banks. The Chancellor announced in last year’s Autumn Budget that we would gradually dispose of our interest in the bank over the next five years, and that is what we are doing.

[Lord King of Bridgwater (Con)]

Does my noble friend agree that the situation as advanced by the Opposition Front Bench and Liberal Benches is a complete distortion? The loss occurred when the decision was made to buy all the shares to support the interests of all the depositors in the bank at that time. The implication of the Question is that, if we hang on to the shares, we can be guaranteed a higher price later on. This procedure is entirely sensible. We bring in some money while we can: as we know, there are a lot more shares to go. We can continue to consider at what stage we get rid of the shares and sell them at the best price we can. That was when the loss was made, not now.

[Lord Bates]

My noble friend is absolutely right. There is a sense here of forgetting the history of what the situation was in 2008 and the incredible damage that was done to our economy—which we are still having to clear up so many years later. That is the reality of the situation. When the National Audit Office looked into how we would do this, the first sale was done on an accelerated book-build process, and it recognised that it offered value for money in the circumstances. However, the fact is that we are in these circumstances as a result of the realities of what happened in 2008, and we should not forget that.

[Lord Browne of Ladyton (Lab)]

My Lords, on the “Today” programme this morning the Economic Secretary, John Glen, when seeking to justify not waiting for a better price, on that specific point said that the Government’s judgment was that, looking at the market conditions, there would be no better price in the foreseeable future. What precisely are those market conditions that he referred to, which are not referred to in the Minister’s answer, that the Government estimate will keep this bank’s price depressed?

[Lord Bates]

These are matters which we take independent advice on; that is why UK Government Investments is there. It tracks what is happening in the market on a daily basis. I have already mentioned some of the things which are happening. Earlier this month there was a large settlement with the Department of Justice, of £3.6 billion; UKGI also recognised that in April, the bank turned in its first profit in 10 years. Those factors were weighed together, along with the fact that there are very few windows during the course of the year when we can dispose of assets, because of potential conflicts of interest.

[Lord Higgins (Con)]

Does my noble friend agree that this sale does not result in a loss but crystallises it? He just referred to advice he has received; would he say what advice he received about the future likely movement in the share price? He also refers to this being value for money for the taxpayer; could he explain in what way?

[Lord Bates]

This is the fourth time we have undertaken this approach. We did it twice with Lloyds, and this is the second time with RBS. The last time this was done in 2015, the National Audit Office concluded that that sale of shares in RBS,

“was executed as skilfully as could reasonably be expected, and on the basis of the preparation, process and proceeds of the transaction, UKFI”—

now UKGI—

“achieved value for money”.

That was what it looked at, and it will have to justify that advice; others will look at this as well, and we will keep it under review.

[Lord Soley (Lab)]

My Lords, it seems that the Government are implying that the bank is going to do better, and I agree with that. If you look at the FT today, there are a lot of reasons for thinking that. However, if it is, it begins to look increasingly as if the Government are taking a wodge of money now because they have financial difficulties in the current public expenditure round rather than waiting to get the best price for the taxpayer.

[Lord Bates]

We have set on this process of doing precisely this. The proceeds of the sale yesterday will go directly to reduce the debt which was accumulated as a result of the actions in 2008. That is what it will be used for, and quite rightly.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend recall that, when the noble Lord, Lord Myners, was in charge of this matter and bailed out the Royal Bank of Scotland, I asked him what he expected the loss would be as a result of that involvement? He replied, “We will make a profit on this transaction”. Will my noble friend not take advice from the Opposition, which also sold our gold at a record low price?

[Lord Bates]

We recall the selling of half our gold reserves between 1999 and 2002 at the rock-bottom market price, but it is more important here to say that of course there is a problem. Then, in 2013 a Liberal Democrat Chief Secretary to the Treasury and a Conservative Chancellor produced a report which was put into the public domain saying what the future of RBS was. That involved radical restructuring, which is taking place, and as it is being concluded we are gradually disposing of the assets. That is the correct thing to do and we are right to do it.

Forced Marriage

Lord Bates Excerpts

Thursday 24th May 2018 Lords Chamber

[Baroness Berridge (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and I draw attention to my interests as declared in the register.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

The UK was instrumental in ensuring the inclusion of child, early and forced marriage in the Commonwealth communiqué. We deliver our commitments through the Forced Marriage Unit and through our work to end child marriage in developing countries. While there are highly publicised instances of forced marriage and forced conversion, we do not have evidence that this is prevalent at scale. Where it happens, it is context-specific.

[Baroness Berridge]

My Lords, I thank my noble friend for his Answer but, according to the Aurat Foundation, 1,000 Hindu and Christian women and girls are abducted, forcibly converted and married off in Pakistan every year. In India, there are similar allegations of Muslim girls being forcibly converted to Hinduism and married off. Of course, this has also been a feature of Boko Haram’s tactics. Despite the last four communiqués making reference to early, child and forced marriage, none has addressed investigating the interrelationship with forced religious conversion. As chair of the Commonwealth for the next two years, will Her Majesty’s Government commission the necessary research to understand this complex relationship and investigate potential solutions?

[Lord Bates]

I am grateful for my noble friend’s question and I pay tribute to her work with the Commonwealth Initiative for Freedom of Religion and Belief, which has had a significant impact. I draw attention to the very substantial measures on freedom of religion and belief—led by my noble friend Lord Ahmad—that we have already announced, such as a £12 million fund through Aid Connect to look specifically at this. On the specific instance of Pakistan that my noble Friend mentioned, one of the things that we were clear about in Pakistan’s UN review last year was the importance of protecting minority rights and the possible need for an independent commission on such rights. We are doing significant things but we have to be clear that this is not only about the communiqué. The Commonwealth charter talks about the importance of,

“tolerance, respect, understanding, moderation and religious freedom which are essential to the development of free and democratic societies”.

That is why we will continue to hold other states to account and seek to live up to that.

[Baroness Hussein-Ece (LD)]

My Lords, child marriage is a global issue. I do not know whether the Minister knows this, but I was very surprised to learn that over 200,000 girls under the age of 16 have got married in the United States, where, in many states, it is still legal. In the Commonwealth, records show that 8.8 million girls have been forcibly married in this way. What progress has been made to eliminate this very harmful practice which, as the Minister said, breaches the rights of these girls? During the CHOGM conference, what further promotion was made of the Kigali Declaration?

[Lord Bates]

We have a major programme which is accelerating action against child and early forced marriage. We have been leaders in this area and put significant resource into it, and it has been engaging. We need to remind people not about the need for new declarations and new initiatives but of the fact that, 70 years ago, this matter was in the Universal Declaration of Human Rights: Article 16.2 states that there must be consent between the spouses. We just need to hold people to what they have already signed up to.

[Lord Alton of Liverpool (CB)]

My Lords, given that the noble Lord, Lord Bates, said in answer to the noble Baroness, Lady Berridge, that there was not compelling evidence, will he undertake at least to look at the Aurat Foundation’s evidence of 1,000 forced conversions every year and other evidence from Pakistan that suggests that between 20 and 30 women from Hindu backgrounds are forcibly converted every single month? In citing, as he has done, the Universal Declaration of Human Rights, will he point Commonwealth countries to Article 18, which states quite emphatically that everyone has the right to believe, not to believe or to change their beliefs and that no one should be forcibly converted?

[Lord Bates]

That is why we are doing so much in this area. We have done work through the Magna Carta Fund at the Foreign Office; we have new work coming on stream now. This is a fundamental area. Why are we doing it? It is simply because inclusive societies tend to be the most peaceful. Societies which empower and protect women tend to be the most prosperous. If you are in development, that is what you want to happen.

[Lord Collins of Highbury (Lab)]

My Lords, I agree with the noble Baroness on translating the communiqué into action. One thing that can be done is to support the Commonwealth Office for Civil and Criminal Justice Reform. That would mean member countries translating commitments in the charter into legislative changes, so that people’s rights can be protected. What are the Government doing to ensure that the Commonwealth Secretariat receives support for expanding that work?

[Lord Bates]

Clearly, it is a very important stream of work. The responsibility for implementing what has been signed up to by member states in the communiqué of course lies with the member states, but it is also right that we should be involved in the ways that I have outlined, through the various programmes and initiatives, to support countries to build more inclusive societies. We will continue to do that.

[Lord Suri (Con)]

My Lords, as the UK is taking over the chairmanship of the Commonwealth for the next two years, and given the success of the Forced Marriage Unit, will my noble friend the Minister commit to sharing this model with Commonwealth countries where the level of forced marriages is particularly high?

[Lord Bates]

I often think that we need a certain degree of humility in this. We have been wrestling with the issue of forced marriage within our own communities here in the UK. There was a significant conviction in Birmingham just a couple of days ago, with someone sentenced to four and a half years in prison. If we engage with people at all levels, both at home and abroad, we can try to give young people the opportunities that we seek for them so that they might realise their full potential.

[Baroness Barker (LD)]

Will the NCA be enabled with the resources to spread the intelligence that it has gathered in this country to its counterparts in Commonwealth countries?

[Lord Bates]

I presume that the noble Baroness is referring to the Forced Marriage Unit. That is an interesting point. The unit is situated in the Home Office but works jointly with the Foreign Office. I am not sure whether that happens. I will look into it and perhaps I may respond to the noble Baroness in writing.

Cash Ratio Deposits (Value Bands and Ratios) Order 2018

Lord Bates Excerpts

Thursday 24th May 2018 Lords Chamber

Moved by

[Lord Bates]

That the draft Order laid before the House on 16 April be approved. Considered in Grand Committee on 16 May.

Motion agreed.

Cash Ratio Deposits (Value Bands and Ratios) Order 2018

Lord Bates Excerpts

Wednesday 16th May 2018 Grand Committee

Moved by

[Lord Bates]

That the Grand Committee do consider the Cash Ratio Deposits (Value Bands and Ratios) Order 2018.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, I beg to move that the Committee has considered the draft Cash Ratio Deposits (Value Bands and Ratios) Order 2018, which was laid before the House on 16 April this year. The draft order makes changes to the cash ratio deposits scheme, which is the way by which the Bank of England funds certain functions. Under the Bank of England Act 1998, banks and building societies of a certain size are required to place a proportion of eligible deposits in an account with the Bank of England. In turn, the Bank invests these deposits in interest-bearing assets, namely, gilts. The return on those investments is channelled into the funding of the Bank’s monetary policy and financial stability functions. There is a resultant systemic benefit to the whole banking sector from the sustained and stable operation of these functions, as well as for the wider public. For these reasons, the Government are confident that the cash ratio deposits scheme is and remains the most appropriate means of funding the Bank’s important policy work.

The operation of the scheme means that the Bank’s income generated by the scheme is driven by two factors: first, the yield on gilts; and secondly, the size of deposits eligible for the scheme, which is largely driven by the overall performance of the banking sector. Over the last five-year period, gilt yields and to a lesser extent the growth in deposits have been lower than expected. On average, annual yields were 2.7% versus the 3% expected in 2013. This has caused income to be £70 million lower than was forecast at the last review. A similar shortfall arose in the five-year period leading up to the last review of the scheme that was carried out by the Government in 2013. The Government are seeking to address this problem by recalibrating the parameters of the scheme over the forthcoming review period.

In particular, the Government are seeking to move from a scheme that currently uses a fixed ratio as the measure by which institutions calculate the proportion of their deposits to be placed at the Bank and will instead move to one where the ratio will be indexed to actual gilt yields. Under an indexation approach, the ratio will be calculated once every six months to align closely with prevailing gilt yields. Such an approach should lead to a smoother income profile for the Bank as it will dynamically adjust to the investment environment. It will reduce the risk of a shortfall in income if yields do not perform as expected and reduce the likelihood of future funding deficits for the Bank. The indexation model also has potential benefits to payers themselves. For example, if gilt yields were to increase, institutions would not then be required to place as much on deposit at the Bank.

The Government have consulted on the changes to the parameters of the scheme before us and the majority of respondents have acknowledged and accepted the increased costs associated with the Bank’s functions. Alongside the Bank’s efficiency savings, the changes proposed by the order will ensure that the income generated by the scheme covers the costs of the Bank’s policy functions over the next five years. As the Bank’s costs have increased since Parliament last agreed to this scheme, it has committed to maintaining its costs at 2018-19 levels over the next five years and any subsequent enhancements will be funded from efficiency savings generated elsewhere. These cost-saving measures include a comprehensive programme of cost-containment and reprioritisation. The Bank will also continue to increase transparency around its income sources and the use of income generated under the scheme.

The proposed changes to the cash ratio deposit scheme are expected to increase the Bank’s income over the next five years and generate income that is closely aligned to the Bank’s forecast costs. It is worth noting that the amount that most institutions are required to deposit at the Bank under the scheme is relatively small. In December 2017, 81% of deposits made were by just 20 institutions, with 14 of those contributing more than £50 million. The majority of the contributions are sourced from larger banks and building societies.

The Bank of England Act 1998 sets out that the cash ratio deposit rate can change once every six months and the deadline for amending the rate ahead of every six-month period is 1 June 2018. If the scheme is not amended by this date, the shortfall in the Bank’s funding will continue. The changes proposed by the order before us are sensible and proportionate measures in the light of the issues identified in the 2018 review. The order will ensure that the Bank’s important monetary and financial stability functions are fully funded, and for that reason I commend it to the Committee.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, I agree that this is clearly a measure that is appropriate for statutory instruments, but I wish that it had not landed on my desk. Of course, we will not oppose this. This will not be the one in 1,000 occasion this afternoon, I am sure the Minister will be pleased to hear. However, after I had taken the trouble to half understand the scheme, I could not believe its bizarre nature. I could not for the life of me see why there was not a straightforward fee-based scheme. The scheme is planned to raise £169 million per annum. Why does the Bank not simply send the banks a bill and raise the money directly? My real fear—which is rather the opposite of that expressed by the noble Baroness, Lady Kramer—is: what if this formula is wrong?

The functions covered by this income are absolutely vital. The austerity programme that this Government continue to pursue would be even more disastrous for the economy if it were not for the monetary measures taken by the Bank of England. This funding supports the MPC and the FPC, which are effectively seeking, through quantitative easing, the bank rate and the controls it puts on the banks, to control monetary policy and create an appropriate stimulus over this period of austerity. I see that the Bank has said that if the money is insufficient, it will reprioritise efficiency savings. I have worked long enough in the public sector to know what an efficiency saving is—it is called a cut in normal language. I cannot think of any area of the Bank’s activity, together with the resolution and recovery regime, that is more important. It is essential that it is properly funded.

The formula set out on page 5 of the Explanatory Memorandum has a number of components which I am afraid I do not understand. The first thing that it assumes is that the income required is fixed at £169 million for five years. Once again, I ask: what if that is wrong? The next factor in the formula is the aggregate eligible liabilities, which are fixed at £2.8 trillion—I hope that I have counted the number of noughts properly—yet the impact assessment assumes, from the various analyses that have been produced, that this figure will go up by 2.9% per annum. Why is it fixed if in fact the Government, in analysing the scheme, assume that it will increase?

In fact, the only real variable in the scheme is what is called on page 5 of the Explanatory Memorandum the “portfolio yield”—that is, the estimate of the yield from investments. It is made up of three parts: 55%, 42% and 3%. The 55%, labelled “a”, seems to be the only seriously variable one. It is a 13-year moving average. Why 55% and why 13 years? The second element, labelled “b” in the formula in paragraph 7.17(c), is calculated on a six-month average, but it is calculated only twice and is then fixed for the rest of the period of this notice. The 3% at the end of the formula is a six-month average calculated every six months. This is a ridiculously complex way to collect a modest amount of money. I believe that the whole system by which this money is collected needs to be reviewed. The fee-based approach would be simple to introduce. You could apportion the burden on eligible liabilities, which have to be calculated with this scheme. My biggest fear would then be coped with. A simple system could guarantee sufficient funds for this vital area.

[Lord Bates]

I am grateful to the noble Lord for delving into the algebra in the formula of “i” over “el” times “py”, which we all know arrives at the answer of the funding that is required. Before dealing with the explanation for that, I will deal with some of the points raised by the noble Baroness, Lady Kramer. She mentioned the consultation. The Treasury ran an informal consultation between 20 December and 15 January, contacting all the eligible institutions. A relatively small number of institutions contributed; 19 responses were received on that part. When it went into the public realm, between 8 and 9 March, three responses were received. One should not be surprised; it is a highly technical measure, as the noble Lord, Lord Tunnicliffe, said. Those were the points raised.

There was a point about what was being done to improve efficiency. There were changes to the way the Bank was to work. Cost-savings measures include a comprehensive programme of cost-containment and reprioritisation, coupled with an increasing amount of transparency, so we can track what is being spent at the Bank. Those elements are commendable.

The total tax burden on banks and building societies from the bank levy is significant. In 2016-17, £3 billion was raised from the Government bank levy above the £1.6 billion from the bank corporation tax surcharge. Those are significant sums contributing to the Exchequer.

The noble Lord, Lord Tunnicliffe, has been, as always, assiduous in the way he has delved into the detail of the Explanatory Memorandum and the order, and raised a number of pertinent points. He says: why not just have a levy, rather than an alternative means of funding that involves this level of complexity? The review considered a range of mechanisms by which the Bank’s monetary policy and financial stability functions could be funded—in particular, whether a move to a fee-based model or levy would be appropriate. The review concluded that:

“Such a proposal was not possible within the scope of the existing legislation and in the current CRD review period. A fee-based model would require more in-depth analysis, starting from first-principles in terms of how costs could be apportioned in a fair and efficient way”.


The noble Lord also asked about the formula: what drives the variables and the weightings attached to them? There are different weightings in the order which reflect the Bank’s long-term gilt holdings and investments over time. The long-term gilt holdings make up 55% of the total pool, hence the weighting of 55% is applied in the formula. Gilts that would be purchased in the coming months make up to 42% of the pool. Additional gilts that would be purchased over the remainder of the scheme to replace those that have matured amount to 3% of the portfolio.

He then asked: what happens if the Bank’s costs are below those expected? Do banks and building societies get their money back? That is a good question. The budget to be recovered by the scheme over the next five years is fixed and reflected in the order. Any surplus generated by the scheme as a result of underspend by the Bank will be retained by the Bank and will build up its capital base. This will in turn support the Bank’s monetary policy operations. Proposed amendments to the scheme seek to ensure that the Bank’s income profile is smoother over the next five-year period. That should ensure that a surplus or deficit does not arise under the scheme. Once again, I thank noble Lords for their questions and support on this. I commend this order to the Committee.

Motion agreed.

Overseas Development Assistance: Fossil Fuel Subsidies

Lord Bates Excerpts

Tuesday 15th May 2018 Lords Chamber

[Baroness Sheehan]

To ask Her Majesty’s Government how much overseas development assistance was spent on fossil fuel subsidies in the most recent reporting period.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the UK does not spend bilateral overseas development assistance on fossil fuel subsidies to benefit consumers. Our assistance helps countries to develop appropriate energy policies, attract private sector investment, and generate clean and renewable energy.

[Baroness Sheehan (LD)]

I thank the Minister for his Answer. CAFOD figures released last year for the reporting period from 2010 to 2014 show that at least £931 million of overseas development aid was spent on fossil fuels, rather than subsidies. What plans exist to reduce fossil fuel spending so that this contradiction in DfID policy—fighting climate change on the one hand and worsening it on the other—becomes history?

[Lord Bates]

The noble Baroness makes a good point. As she rightly said, the CAFOD report refers to 2010-14. That precedes the SDGs, which have brought about a whole host of changes in how we promote renewable energy, and another change was the Paris Agreement on climate change. The numbers she referred to also include UK export finance, which supports the UK’s oil and gas industry, but it is not overseas development assistance. We do not use ODA to support fossil fuel subsidies at present.

[Lord Collins of Highbury (Lab)]

My Lords, one of the key things is that the CDC has a five-year plan—the Government have ploughed billions into it—and a lot of the existing investments include fossil fuel investment. What is the Minister doing to ensure that, within the CDC’s five-year investment plan, we are not just not investing in fossil fuels but taking a proactive approach to investment in renewables? That is the solution. These countries need energy.

--- Later in debate ---

[Lord Bates]

Energy is critical. I want to make absolutely sure that I got out the last words in my previous answer. As I sat down, I referred to fossil fuel subsidies, which the overseas development assistance system does not deal with. The noble Lord is absolutely right: power is incredible. You cannot have economic development at the pace we want to see or, often, the healthcare systems that people need without access to energy. That is why the CDC is right to invest heavily in bringing extra power plants on line. Some 5,000 megawatts that the CDC has invested in is currently under construction or coming online. Overwhelmingly, it is in favour of renewable energy because we believe that, in terms of economic benefits and costs, it provides the best opportunity for developing countries in the future.

[Lord Purvis of Tweed (LD)]

My Lords, the UK’s shareholding in the Asia Infrastructure Investment Bank is scored from overseas development assistance funding from DfID. While the bank itself has a strategy of being lean, clean and green, it still invests in fossil fuel projects; granted, not coal, but nevertheless fossil fuels. What is the UK’s position in multilateral organisations that it directly supports where there could well be projects in which, as part of the finance mechanism, there is a subsidy element?

[Lord Bates]

It is a good point. The noble Lord points to the Asia Infrastructure Investment Bank, but there are some tremendous examples. For example, the African Development Bank lent 100% to renewables in 2017. Progress is being made. There is general agreement in the international community that we need to move away from fossil fuels to renewables because that is what the STGs call for—STG7 is about clean and sustainable energy available to all—and what the Paris climate accord calls for.

[The Lord Bishop of Durham]

My Lords, 1.06 billion people on the planet currently live without modern energy services. Renewable energy, particularly small-scale and off-grid energy systems, will play a key role in making sure that energy-poor communities have access to affordable and reliable electricity. DfID’s Energy Africa campaign is an excellent example of this. Will the Minister update the House on the progress of that campaign since its launch in 2015, and elaborate on the Government’s plans for spending on small-scale, off-grid energy systems?

[Lord Bates]

The right reverend Prelate is absolutely right. A lot of the power stations we are talking about are of no benefit to the rural areas in which most of the poor people live because they cannot be cost-effectively connected to the grid. Therefore, solutions have to be off-grid. Energy Africa is a key part of what we are doing but, as well as that, we are launching some exciting programmes for the rural economy in Sierra Leone and there are the CDC investments in off-grid. Off-grid offers tremendous opportunities in getting power to poor people in rural areas and we will continue to invest heavily in it.

[Lord Gadhia (Non-Afl)]

Will my noble friend join me in welcoming the UK’s membership of the International Solar Alliance, which was initiated by Prime Minister Narendra Modi and announced during his recent visit to the UK? Will he also welcome the joint infrastructure fund we have created with India with the help of his department?

[Lord Bates]

I will absolutely do that. Solar offers enormous potential. Not only is it a clean energy but, as technology advances, we see the cost of solar tumbling compared to other fuel supplies. The opportunity to achieve economic growth and development and to meet our climate change obligations is immense, and we are delighted to be able to partner other countries in delivering that.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, organisations all over the world are taking responsibility for their spending on fossil fuels. Will this Government do a full audit of their spending on fossil fuels and their investments—for example, pensions? They could then assess their impact on climate change and air pollution.

[Lord Bates]

This country has done more than most to advance and drive its position towards clean growth. Just last year we had the launch of the Clean Growth Strategy and we put £2.5 billion—a record amount of investment—into innovation and technology that will help us meet those obligations. We have said that coal-fired power stations will be phased out by 2025, so we are doing a lot. Through the International Climate Fund we are doing more for the poorest in our world as well.

Nursing

Lord Bates Excerpts

Monday 14th May 2018 Lords Chamber

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, I, too, welcome this debate and join others in paying tribute to the noble Lord, Lord Crisp, for securing it and for the enormous personal contribution which he has made to raising the profile of nursing both here in the UK and around the world. The debate has drawn on the immense depth of expertise that resides on this subject in your Lordships’ House.

It is worth noting, for the record, as I found when I prepared for the debate, that contributions have come from two nurses—crucially, I start with them—but also from a former Permanent Secretary and a former chief executive of NHS England, a former Secretary of State and Minister of State for Health, as well as a fellow and an honorary vice-president of the Royal College of Nursing, a former president of the Royal College of Surgeons, a former president of the Royal College of Psychiatrists, a professor of nursing and a former hospital chairman.

[Lord Collins of Highbury]

I do not know what category I fit into.

[Lord Bates]

Swimmers, of course, are doing health promotion, and we pay tribute to the noble Lord’s work in this area.

This has been an excellent debate and I will respond to some of the points. The noble Lord, Lord Crisp, set the tone by reminding us of the critical role that nurses play in ensuring the delivery of holistic, patient-centred healthcare. The noble Baroness, Lady Bottomley, reminded us that nursing is the most trusted of professions. That carries wider benefits to health efforts. The noble Lord, Lord Willis, reminded us that nurses can be a catalyst for change in developing countries. The noble Baroness, Lady Masham, reminded us of the courage of our NHS volunteers who went out to tackle the outbreak of Ebola in Sierra Leone. The noble Baroness, Lady Cox, gave many powerful, practical examples of nursing achievement in delivering clinical care in remote and challenging situations. My noble friend Lord Ribeiro hit the nail on the head when he spoke about the role that nursing has in women’s empowerment, which is critical across so many areas.

The noble Baroness, Lady Hollins, talked about how nurses could be there in early intervention in mental health conditions. The noble Baroness, Lady Watkins, spoke about seeing nurses as a global resource in delivering the sustainable development goals relating to health. The noble Viscount, Lord Bridgeman, reminded us of the costs and administrative burdens faced by those coming to study nursing in this country. The noble Baroness, Lady Jolly, summed it up by saying that nursing delivers equality, prosperity and health. The noble Lord, Lord Collins, reminded us that, in these matters, the issues of health and disease know no national boundaries in the way they operate and therefore that they demand a different set of solutions.

I congratulate the noble Lord, Lord Crisp, and the noble Baroness, Lady Watkins, on their leadership on this issue since the launch of Nursing Now, which, the noble Lord, Lord Willis, reminded us, was attended by Her Royal Highness the Duchess of Cambridge and was a great success. I am delighted that my colleague, the Minister of State at the Department for International Development, Harriett Baldwin, attended and used that opportunity and platform to announce our support for nursing globally and for the campaign through our health partnership programme, starting in 2019. It is a £5 million programme that a number of noble Lords have welcomed. It will be allocated to focus on nurses and midwives. The programme is designed to address the priorities identified by countries and will focus on nurse leadership where it is part of a country’s health workforce strategy.

Through these partnerships we will work with countries to build comprehensive and effective healthcare systems, not just to deliver separate projects. The programme brings benefits to developing countries and to the UK health system from the increased skills and motivation that UK health workers acquire when working overseas. That is why this campaign recognises the vital role of nurses at the centre of every health system around the world. Nurses account for nearly 50% of the global health workforce. Their knowledge, skills and motivation are crucial in delivering health services to all, including to the poorest.

As the Triple Impact report and the Nursing Now campaign highlight, many countries are grappling with enormous challenges, including shortages, skills, gaps in leadership and challenges mentioned in particular by the noble Lord, Lord Crisp. In the UK, nurses are at the heart of our NHS. We want to keep these hard-working staff and build a workforce fit for the future. My noble friend Lord Ribeiro and the noble Lord, Lord Willis, among others referred to concerns they had about our capacity to train the nurses we need. We have announced 5,000 more nurse training places from 2018, alongside new routes into the profession and continuing measures to improve the work/life balance.

Globally, the World Health Organization and the World Bank estimate that countries will need to create around 40 million new health and social care jobs by 2030—a point raised by the noble Baroness, Lady Watkins. Low-resource countries, where these are needed most, face the greatest shortages of 18 million health workers. We must support them to train and deploy the health workers they need so they can access essential health services.

The noble Lord, Lord Ribeiro, spoke about the importance of the retention of trained staff in Ghana. The noble Baroness, Lady Jolly, spoke about her experiences at the conference and talked about the importance of the retention of staff in South Africa. The noble Baroness, Lady Watkins, rightly raised ethical questions about recruitment from some developing nations. That is why the UK Government support the World Health Organization’s Global Code of Practice on the International Recruitment of Health Personnel, which ensures that developing nations that are experiencing critical shortages of healthcare staff are not targeted for recruitment.

As the noble Lord, Lord Crisp, has argued, this is not just about health services. Investments in the health workforce go beyond improving health. The health sector offers employment opportunities for women and strengthens local economies. The UN High-Level Commission on Health Employment and Economic Growth, which the noble Baroness, Lady Watkins, referred to, found that in 123 countries women make up 67% of workers in health and social sectors. The noble Baroness, Lady Bottomley, and the noble Lord, Lord Crisp, referred to this as well. The commission has estimated that women would take between 59% and 70% of additional jobs created in education, health and social services. These opportunities will be even more important in low-income countries, where women are often excluded from formal employment.

To promote these opportunities in the health sector, a DfID programme in Bangladesh, for example, is aiming to ensure that 4,300 licensed midwives are employed. Some 30% of these will be in remote areas, providing opportunities to young women where other formal employment opportunities are scarce. To deliver and sustain this triple impact, the Government remain committed to working in partnership with countries to strengthen their health systems by improving their health workforces, including addressing the global shortage of nurses and midwives, to ensure that no one is left behind. DfID improves access to and the quality of health services by supporting training, mentorship and supervision for health workers; for example, in Kenya we have trained 7,000 nurses and midwives in emergency obstetric and newborn care. This has already resulted in a 10% reduction in maternal deaths.

Our programmes also invest in nurse leadership, which the noble Baroness, Lady Bottomley, referred to. Through a UK partnership, 20 nurses in Uganda have been trained by UK volunteers in nurse leadership for palliative care. I think the noble Lord, Lord Crisp, referred to this programme. These nurses have supported the training of 154 other health workers and empowered them to take on care traditionally delivered by doctors and to broaden access to palliative care.

In the time available I will turn to some of the questions that were raised. If I do not cover them all, I will of course write. The noble Baroness, Lady Masham, and my noble friend Lord Bridgeman asked about EU nurses leaving after the referendum. Overall, there are 3,600 more EU staff working in the NHS since the referendum. We have seen a small reduction in the number of EU nurses working in the NHS over the period. However, this is due mainly to the introduction of new language tests by the Nursing and Midwifery Council.

The noble Baroness, Lady Cox, asked about healthcare in challenging conflict situations. The UK Emergency Medical Team, including nurses, spent over six weeks training more than 3,000 Rohingya people, with local Bangladeshi nurses working alongside them, learning vital infection prevention and control skills. The local nurses are now tackling diphtheria in the Cox’s Bazar camps.

The noble Lord, Lord Willis, was right to pay tribute to Jackie Smith, the Nursing and Midwifery Council chief executive, who has announced that she is retiring. We join the noble Lord in paying tribute to her leadership of the NMC over the past six years and wish her every success for the future.

The noble Baroness, Lady Watkins, wondered, after the World Health Organization’s appointment, how long it would be before there was a chief nurse at the Department of Health. The Chief Nursing Officer for England, Jane Cummings, advises the Government on nursing workforce issues. We are delighted that her office is working with the noble Lord, Lord Crisp, and the noble Baroness, Lady Watkins, on the Nursing Now campaign.

The noble Baroness, Lady Bottomley, spoke about the Commonwealth connection. I am pleased to confirm that Nursing Now representatives took part in a recent Commonwealth summit event through the Commonwealth Nurses and Midwives Conference.

The noble Lord, Lord Crisp, asked whether nurses were at the forefront of health strategies. The UK recognises the critical role played by nurses. Our bilateral programmes, our support for the World Health Organization’s leadership and our investments in strengthening health systems all promote this essential role.

The noble Baroness, Lady Hollins, asked about mental health and specialist nurses. We recognise that nurses deliver specialist services. The UK funds a research programme called PRIME and a programme in Ghana, improving the care of patients with mental health issues. The disability summit in July this year will highlight the need for services to be inclusive and cater for all needs so that no one is left behind.

There is a wealth of expertise in this area in this House which has been demonstrated in this Chamber today. We remain open to other ideas on how we can build on our commitment to support nurses and midwives through health partnerships.

The noble Lord asked me a specific question on the round table. I will take that back and talk with my ministerial colleagues about it. It seems a sensible way forward and I know that the Ministers Burt, Baldwin and others have appreciated their engagement with him on the Nursing Now campaign. Through DfID and other departments we are committed to playing a part in enhancing the vital contribution of nurses and midwives in healthcare and prevention for all, especially for the poorest people in developing countries.

House adjourned at 9.11 pm.

Creditworthiness Assessment Bill [HL]

Lord Bates Excerpts

Committee: 1st sitting (Hansard): House of Lords
Friday 11th May 2018 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I strongly support the Bill in its unamended form and do not support the amendments proposed by the noble Lord, Lord Blencathra. When the noble Lord responds to the debate, can he tell the Committee a little bit more about who the members of the Consumer Credit Association are? I do not know whether BrightHouse is a member of the CCA, but if he could tell us it would be helpful.

I grew up on a council estate in the 1960s and 1970s. Both my parents worked and made sure that they paid their rent—it was the first thing they ever did. My dad had two jobs to ensure that our rent and rates were paid. It is important that people who meet their financial obligations week in, week out have that taken into account when they seek credit. As the noble Lord, Lord Best, said, it is always the poor who pay more, and that is totally unfair—of course, that goes for many things in life. When I go into my local newsagent, I see people queueing up with their little fobs to get their electricity; they pay more. And there are other things—it is just unfair. What the Bill does, on which I congratulate the noble Lord, Lord Bird, is begin to make sure that, if you have a good credit record, that is taken into account properly, so that when you seek credit you can get a fair price and will not always have to pay the most.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, I thank my noble friend Lord Blencathra for moving the amendment, but before I turn to the amendments I shall make some general remarks about the noble Lord, Lord Bird, and his Bill. I should state categorically that the Government’s position is not one of opposition to the purpose he seeks and which so many noble Lords have spoken very powerfully about, which is to ensure that people’s rent or credit history is taken into account when credit decisions are made. The question is about the means by which we achieve that, whether this legislation is the right way to do it and whether we should seek to mandate it.

My noble friends Lady Gardner and Lady Wheatcroft were right to point out that, in effect, the amendments would undermine the Bill because they would give to the Financial Conduct Authority discretion, which in many ways it has at present, to act in these ways should it so wish. The underlying concern is very real, and it is shared by John Glen, the new Economic Secretary to the Treasury, who is working very diligently on this, and it is shared by the Government. We recognise the very real concerns of people on low incomes seeking to access credit.

The report of the committee chaired by the noble Baroness, Lady Tyler, to which the Government have responded, called in its recommendations for having a Minister for financial inclusion, and that is something we have made some progress on. Financial inclusion is very important, and we are building upon a series of measures that we have sought to introduce, starting with the cap on payday lending, to stop the exploitation that was happening, with some of the horrendous interest rates that my noble friend Lady Wheatcroft referred to.

One of the problems was that a lot of the poorest people did not have bank accounts. Therefore, we introduced basic bank accounts, which are fee-free accounts, to get people into that area. Another initiative, which the noble Lord, Lord Desai, talked about, is the use of technology: he referred to blockchain and fintech solutions, which I shall come to shortly. We see great potential in open banking, allowing people to share their bank records online—their payment history, their incomes and outgoings—with people from whom they might be seeking credit. Again, that may be something that helps in that area.

Several noble Lords talked rightly about the appalling way that the poorest in our society are preyed upon by illegal money lending—loan sharks, as they are referred to. In fact, John Glen, the Economic Secretary, announced less than a month ago, I think, that we will be putting another £5.5 million into the fight against illegal loan sharks in England, Scotland, Wales and Northern Ireland.

The noble Lord, Lord Hain—and, I think, the noble Lord, Lord Kennedy—made reference to credit unions. We see credit unions having a huge role to play in this area: that is one reason why the coalition Government introduced significant investment in credit unions and changed the way in which they can operate. Some £38 million was put into helping credit unions to form, to operate and to raise capital: we think they are a crucial part of seeking to tackle this type of exploitation.

--- Later in debate ---

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

I was.

[Lord Bates]

You were? I am sorry.

That is why we now have a Secretary of State for Housing, Communities and Local Government. With all these points I am trying to set out that we do not believe that this Bill is the right way forward because it is too prescriptive in its approach. The amendments cut across the purpose and effect of the Bill so we do not support them either. But we are mindful of the importance of the responsibility to act in this area and we are doing that in a whole range of areas, as I have outlined to the House today.

[Lord Kirkhope of Harrogate (Con)]

My noble friend Lady Wheatcroft made important remarks about the exorbitant rates charged to people who are often very vulnerable in the impression that they receive when being sold these products. Following those remarks, does my noble friend not agree that the plethora of advertising—particularly on television—which presents itself to these vulnerable people ought to also contain, as in the case of cigarette sales, clear warnings on every such advert that independent advice or advice that might be obtainable through government agencies or others should be taken before anyone commits themselves to such appalling transactions?

[Lord Bates]

My noble friend is right to draw attention to this. This is why we have the FCA as an independent body to regulate activities in those areas. It is why it took the robust action it did in the case mentioned earlier by the noble Baroness, Lady Wheatcroft.

[Lord Campbell of Pittenweem (LD)]

I am most grateful to the Minister for giving way, particularly since up to now I have been only a spectator to this legislation. I was particularly taken by the fact that he referred to illegal moneylending and the so-called sharks. It is important to remember that the people who have to go to those sharks cannot hope to achieve any kind of credit from the kinds of operations that the noble Baroness, Lady Wheatcroft, referred to. The loan sharks’ weapons are intimidation, abuse and sometimes violence when it comes to recovery. Illegal moneylending is notoriously difficult to prosecute and therefore I would be grateful to hear that the Government understand that and that the initial sum which has been offered is not the end of the matter.

[Lord Bates]

Just to update the noble Lord on this point: the money that has been announced will help investigate and prosecute illegal lenders and support victims and those vulnerable to loan sharks. Overall, this is a 16% increase in funding. In England £100,000 seized from loan sharks will be spent on encouraging people at risk of being targeted by loan sharks to join a credit union as an alternative. The quadrupling of funding will help vulnerable consumers access a safer form of finance and get their lives back on track.

[Lord Kennedy of Southwark]

We often hear that financial institutions are fined for doing things wrong. I know that those fines go into the general fund and are used for various things. One good thing they could be used for would be to support the credit union movement so that it can advertise the alternatives that are around. It is not just the monetary fines, it is the fact that the punishment is advising the public to go elsewhere and that there are cheaper alternatives. Often the credit union movement cannot have adverts in the Tube and on the buses and elsewhere, and it cannot fund phone lines. It would be useful and a good way to deal with fines from financial institutions. Perhaps the Minister will take that back to his colleagues in the Treasury.

[Lord Bates]

I am very happy to take that back. It is an example of the innovative ideas that we can discuss as alternatives to the measures before us today in terms of legislation. As the noble Lord was speaking, I was thinking of the Libor fines. Those sums were significant —some £600 million or £700 million—but the then Chancellor designated that they would be given to the families of servicemen and the emergency services. There is an example there. My point is that I think there are solutions which would better achieve the effect that the noble Lord, Lord Bird, is rightly trying to achieve.

[Baroness Kramer]

My Lords, the Minister has been very generous with his time. The virtue of the Bill of the noble Lord, Lord Bird, is its sheer simplicity. So often Governments come up with incredibly fragmented, complex and convoluted attempts to solve a problem. The Minister pointed a moment ago to the cap on payday lending. He will remember that the Government resisted that right to the very last, with exactly the same kinds of arguments about fintech, alternative approaches, different ways of dealing with it, cost and trying to crack a nut with a hammer. But they now laud that cap on payday lending. My suspicion is that if they decided to support the Bill brought forward by the noble Lord, Lord Bird, they would very soon be lauding that solution, its simplicity and its universal application.

[Lord Bates]

I hear what the noble Baroness says but, as other Members have pointed out in the debate, there is the risk of some unintended consequences as a result of taking this approach. I have also outlined that we are not dismissing the problem, but are seeking an alternative route to solving it which we believe will be more effective and fairer, and avoid some of those unintended consequences. If that turns out not to be the case, of course we are always open to review our position vis-à-vis proposals such as this, and we will continue to act in that way because our first priority is to protect the most vulnerable and help them make a better future for themselves and their families by getting access to home ownership.

[Lord Bird (CB)]

I really enjoyed that. That was a brilliant array of political parties coming together in the House. I am really glad. I am also glad that the noble Lord, Lord Blencathra, introduced the amendments in his name and that of the noble Lord, Lord Naseby, because they allow us to address the laws of unintended consequences. The noble Baroness, Lady Lister, also raised the question.

I come from a long line of people who did not pay credit. I am not likely in my dotage to be grassing up the people I come from. My mother used to go to a doorstep lender, who would direct her to a particular shop, where we paid through the nose over and again in the 1950s, 1960s and 1970s, until she died in absolute poverty in the late 1970s. I am not going to grass these people up, I assure your Lordships. Actually, I am much more interested in the 15% or 20% of people who are going to find it very difficult to get credit. They are finding it very difficult to get credit now.

--- Later in debate ---

[Baroness Grender]

My Lords, this is a probing of an airing, to give the technical term. The primary aim of this amendment is to counteract the other amendments tabled by the noble Lords, Lord Naseby and Lord Blencathra. Amendment 5 has been tabled to say, “This needs to happen now”. Its primary point is that the FCA needs to conduct a review and do it now.

I am fully aware that the FCA is at the moment conducting a high-cost credit review. However, its most recent conclusion is that it is,

“prepared to look at solutions designed to increase the choice”,

and encourage the,

“availability of alternatives to high-cost credit”—

in other words, more delay. The main point I want to make as a result of this amendment is that tenants cannot wait any longer. The number of tenants is doubling and government policies are not keeping pace. What we need is the immediate implementation of this, not to wait and have a two-year delay. That is the primary reason for this probing amendment. I thank the noble Lord, Lord Kennedy, the right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Jones, for supporting this amendment. It is an amendment to an amendment, so if the noble Lord, Lord Blencathra, withdraws his amendment, it falls by the wayside.

When I had my Private Member’s Bill banning tenants’ fees, the Government used the unintended consequences argument, asked whether the problem could be solved via the market and then rightly changed their mind, but it is taking a very long time for this to come through. I sometimes wish that the Prime Minister had put a date on this, rather than on one or two other items that have come before noble Lords this week.

I take the opportunity of this amendment to say to the Minister that I think he should support the Bill and give it a fair wind, and that the Government Benches should give a fair wind to more time for it so that it has its Report and Third Reading stages and is sent to the other place. The number of tenants is increasing enormously and legislation is not keeping pace. The FCA needs to conduct an urgent inquiry into the people who were described in the debate on the previous group of amendments, and for that reason I am attempting to amend the amendment.

[Lord Bates]

My Lords, I think I can be brief on this group. I thank my noble friend for moving the amendment. This group of amendments concerns the proposal for the Financial Conduct Authority to conduct a review into the experience of rental tenants, with particular regard to their ability to demonstrate their creditworthiness under the existing rules.

I remind the Committee that the FCA recently consulted on proposed changes to its rules and guidance on assessing creditworthiness in consumer credit and has undertaken research on this subject, which carefully considered the factors that firms take into account when making lending decisions. This consultation made direct reference to the current limitations on sharing rental data and the potential for new technology to alleviate them. That is the purpose behind the rent recognition challenge.

Furthermore, in April 2018 the FCA announced that it will conduct a market study on credit information. A consumer’s credit information affects how likely they are to be able to access a range of financial services, including mortgages, loans and credit cards. Consumers may experience harm, such as restricted access to credit, if this information, such as rental payment history, is not shared effectively. The FCA’s aim is to ensure the credit information market works as well as possible to maximise the benefits that it can deliver for consumers. The FCA will also collect evidence to gain a better understanding of the potential for harm in this market and, if necessary, identify remedies. This study will be launched in quarter four of 2018. Finally, the FCA conducts a review of all new interventions as a matter of course and continues to monitor the market for consumer detriment on an ongoing basis.

In conclusion, I put it to the Committee that the need for a further review by the Financial Conduct Authority into this issue is unclear, as the regulator is already carrying out extensive work in this field. The Government’s position on the Creditworthiness Assessment Bill therefore remains unchanged.

[Lord Bird]

I am pleased that the noble Lord has withdrawn—I feel a great victory. We have to move on to the next stage, and I thank the noble Lord, Lord Bates, for this great opportunity to respond to what we said. I thank the noble Baronesses, Lady Grender and Lady Thornton. It seemed all a bit “spaghetti” just now, so forgive me my trespasses. I will sit down. Thank you very much indeed.

Yemen

Lord Bates Excerpts

Tuesday 24th April 2018 Lords Chamber

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, with the leave of the House I will repeat in the form of a Statement an Answer to an Urgent Question on Yemen given by my honourable friend Harriett Baldwin in another place earlier this afternoon. The Statement is as follows:

“The UK is deeply concerned by the humanitarian crisis in Yemen, the largest in the world. Over 22 million people—more than three-quarters of the population—are in need of humanitarian assistance. The UN estimates that 17.8 million people in Yemen do not have reliable access to food and that 8.4 million face extreme food shortages. Last year, the country suffered the worst cholera outbreak ever recorded in any country in a single year.

At the Yemen pledging conference in Geneva earlier this month, the Minister of State for the Middle East announced £170 million of support to Yemen this year. This funding will meet the food needs of 2.5 million Yemenis. Last year, the UK was the second-largest donor to the UN’s humanitarian appeal for Yemen. Our funding provided over 5.8 million people with at least a month’s supply of food, nutrition support for 1.7 million people, and clean water and sanitation for approximately 1.2 million people, but money alone will not be enough. We must see sustained progress on the response to this year’s cholera outbreak. We must see payment of public salaries to millions of civil servants and their dependants, and we must see unhindered humanitarian access into Yemen. The UK has led the way here too, lobbying and advising all parties to make the life-saving steps to prevent further deterioration of this crisis.

We are aware of reports over the weekend of significant civilian casualties resulting from coalition airstrikes. We take these reports extremely seriously. The Saudi-led coalition has confirmed that it will carry out an investigation. It is essential that this happens without delay, the results are published, and that lessons are learned and acted upon. Our hearts go out to the families of those killed. We call upon all parties to comply with international humanitarian law.

A political settlement is the only way to bring long-term stability to Yemen and to address the worsening humanitarian crisis. The Yemeni parties must engage constructively and in good faith to overcome obstacles and find a political solution to end the conflict”.

[Lord Collins of Highbury (Lab)]

My Lords, I thank the Minister for repeating that response to the Urgent Question asked in the other place. Clearly, Saudi Arabia has the right to protect its territory and its people from the missile attacks witnessed in recent weeks, but this does not excuse the targeting of innocent civilians. Despite UK training to the Saudis on international humanitarian law compliance, we have seen the rate of civilian casualties increase.

UN special envoy to Yemen, Martin Griffiths, said at the Security Council that if intensive operations were launched in Al Hudaydah, one of the main entry points for aid, it would, as he put it,

“in a single stroke, take peace off the table”.

If an attack on Al Hudaydah were to go ahead, causing an already horrific humanitarian situation to get worse, what measures, apart from condemnation, would the Government take to bring pressure on the Saudis? Surely, these are the circumstances when the suspension of arms sales must be considered.

[Lord Bates]

The noble Lord is absolutely right to say that there is never any excuse for this. There is a joint incident assessment team in the Saudi-led coalition which investigates these incidents and produces reports, 55 of which have already been published. But we have been very clear at the UN in our most recent wording and language. The UK is the penholder at the UN Security Council on the Yemeni issue and we are urging restraint on the part of Saudi Arabia, particularly in the context that the noble Lord is referring to. For that to happen, it is also very important that the Houthi rebels, in this context, do not perpetuate or worsen the situation by continuing their missile strikes into Saudi Arabia. So, it is a very complex and fast-moving situation. We do not want it to deteriorate further and we are actively engaged at a humanitarian level, and very much at a diplomatic level.

[Lord Wallace of Saltaire (LD)]

My Lords, I am conscious that an already poor humanitarian situation has been exacerbated by the conflict, and by the blockade. Can the Minister tell us a little bit about the blockade of the ports which US and Saudi ships have been involved in, and how far that now has been lifted?

Can he also tell us about the consultations we are having with the Emiratis who, after all, alongside the Saudis, are major players in every single way in Yemen? I received a note from the UAE embassy in London about the humanitarian assistance to Yemen the other day. Clearly, they have major local responsibility, so can he assure us that we are working as closely with them and criticising when we think it is necessary?

[Lord Bates]

I shall respond by giving a bit more information. Yemen imports 90% of its food and almost all its fuel. The level of imports remains insufficient. The UK has been responding to this by sending DfID experts and funding experts, particularly to Djibouti, to help to speed up the process of verification of shipping. As a result, over the past year the level of shipping that has been cleared to enter Yemeni ports has increased from 8% to around 70%—around tenfold—and we welcome that. We are funding to the extent of £1.3 million the UN verification inspection mechanism. These are all very important steps to ensure that urgent humanitarian support gets in.

UK Convergence Programme

Lord Bates Excerpts

Monday 16th April 2018 Lords Chamber

Moved by

[Lord Bates]

That this House approves, for the purposes of Section 5 of the European Communities (Amendment) Act 1993, HM Government’s assessment of the medium term economic and fiscal position as set out in the latest Budget document and the Office for Budget Responsibility’s most recent Economic and Fiscal Outlook and Fiscal Sustainability Report, which forms the basis of the United Kingdom’s Convergence Programme.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the legal requirement to give the European Commission an update of the UK’s economic and budgetary position—our convergence programme—means a welcome opportunity for a wider economic debate today.

In accordance with the outcome of the referendum, we are leaving the European Union and will make our own decisions, take control of things that matter to us, and seize every opportunity to build a stronger and fairer Britain. But, given our decision to leave, some Members may find it odd that we are debating the UK’s convergence programme here today. However, it is right that we do so, because we continue to exercise our full membership of the EU until our exit, and because doing so is a legal requirement that must be taken seriously.

I remind the House that the content of the convergence programme is drawn from the Government’s assessment of the UK’s economic and budgetary position. This assessment is based on the Autumn Budget report and the OBR’s most recent economic and fiscal outlook, and it is this content, not the convergence programme itself, that requires the approval of the House.

I also remind noble Lords that, although the UK participates in the stability and growth pact that requires convergence programmes to be submitted, by virtue of our protocol to the treaty opting out of the euro we are required only to “endeavour to avoid” excessive deficits. The UK cannot be subject to any action or sanctions as a result of our participation.

I will provide a brief overview of the information that we will set out in the UK’s convergence programme. Noble Lords should note that this does not represent new information but rather captures the Government’s assessment of the UK’s medium-term economic and budgetary position, as we set out in the Autumn Budget, and again recently in the Spring Statement.

The UK economy has been growing for five consecutive years. It has added 3 million jobs since 2010, and our manufacturing sector has enjoyed its longest unbroken run of growth in more than 50 years. Since April 2015, the wages of the lowest paid have risen by almost 7% above inflation. Growth remained solid in 2017, and at the Spring Statement the OBR revised up the outlook for the UK economy this year, with forecast growth in 2018 higher than it was in November. The OBR forecasts more jobs in every year of this Parliament, and over 500,000 more people in work by 2022. The OBR expects inflation to fall back to the Bank of England’s target rate over the next 12 months, meaning that real-wage growth is expected to be positive from the first quarter of 2018-19 and to increase steadily thereafter.

Since 2010, the Government have made significant progress in reducing the deficit; 2016-17 was the first year since the financial crisis in which the UK’s general government deficit was below the 3% Maastricht treaty limit, and in December of last year the European Council acknowledged this achievement by closing our excessive deficit procedure.

In the Spring Statement, the OBR forecast that public sector net borrowing is expected to be £45.2 billion this year—£4.7 billion lower than forecast in November and £108 billion lower than in 2009-10. As a percentage of GDP, public sector net borrowing is forecast to fall from 2.2% in 2017-18 to 1.8% this year. Borrowing is then forecast to continue falling, reaching 0.9% in 2022-23—its lowest level in more than two decades.

The OBR forecast that public sector net debt will peak at 85.6 % of GDP in 2017-18 and then fall as a share of GDP in every subsequent year. This is an important turning point for the public finances, with debt projected to fall as a share of GDP on a sustained basis for the first time in 17 years. Getting debt falling is important in order to enhance the UK’s economic resilience, improve financial sustainability and reduce the burden on future generations. The Government’s balanced approach to fiscal policy is underpinned by our fiscal rules. The OBR forecast that we will meet our targets both on structural borrowing and on getting debt falling two years early.

Although committed to getting debt falling, the Budget took a balanced approach to government spending, supporting households and businesses in the near term and investing in the UK’s economic potential in the medium term. That includes building the homes that our country needs to restore the dream of home ownership for a new generation. It includes helping young people across the country to get the skills they need for the high-paid, high-skilled jobs of the future, and it includes investing in cutting-edge technology and innovation so that Britain continues to be at the forefront of the global technology revolution.

Those three things will be at the heart of our efforts to finally address the country’s long-standing productivity challenges. The Government are working to strengthen our public services over the long term, too, in our determination to bring down the deficit and get the UK back to living within our means, as well as funding our public services for the long term through a fair and sustainable tax system. The Budget supported our world-class public services, including putting our NHS on a stronger, more sustainable footing.

Following the House’s approval of the economic and budgetary assessment that forms the basis of the convergence programme, the Government will submit the programme to the Council of the European Union and the European Commission, with recommendations expected from the Commission in May. The submission of convergence programmes by non-euro area member states, and stability programmes by euro area member states, also provides a useful framework for co-ordinating fiscal policies. A degree of fiscal policy co-ordination across countries can be beneficial to ensuring a stable global economy, which is in the UK’s national interest. The UK has always taken part in international mechanisms for policy co-ordination such as the G7, the G20 and the OECD.

Although we are leaving the EU, we will of course continue to have a deep interest in the economic stability and prosperity of our European friends and neighbours, so we will continue to play our part in this process while we remain an EU member, and in other international policy co-ordination processes once we have left the EU.

The Government are committed to ensuring that we act in full accordance with Section 5 of the European Communities (Amendment) Act 1993 and that this House approves the economic and budgetary assessment that forms the basis of the convergence programme. I beg to move.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, we are holding this debate today in the context of weeks of key Brexit debates ahead. It seems odd to be debating a Motion on the issue of convergence as we embark on weeks of debate about how we will leave the EU. I will not make this speech Brexit heavy but focus on what the Motion asks us to approve.

The Motion asks us to approve the Autumn Budget 2017 report and the most recent OBR economic and fiscal outlook for the purposes of Section 5 of the European Communities (Amendment) Act 1993. This is made difficult because we cannot be confident about what the economy will look like this time next year when, according to the Government’s Brexit timetable, we will no longer be a member of the EU—and presumably will no longer be holding this yearly debate. It is also made difficult by a number of other concerns.

I do not share the Chancellor’s view of light at the end of the tunnel, nor do the households for whom the squeeze on incomes and living standards is a daily pressure. The OBR forecasts from March are marginally better in the short term, but they have revised forecast growth down in both 2021 and 2022 since the Autumn Statement. Amid such uncertainty in the face of leaving the EU, how can we expect these to be revised up at any point? Last year, growth in our economy was the lowest in the G7 and the slowest since 2012. In the last quarter of 2017, GDP growth was just 0.4%. That means that Britain was the slowest-growing major economy across 2017, behind both Italy and Japan. OBR forecasts predict growth will fall below even the weak 1.7% level that the Chancellor spent most of the Spring Statement boasting about. So we are looking at having 1.5% growth in 2022, 15 years after the financial crisis, which is absolutely nothing to boast about.

This Government have missed every deficit target they have set themselves. Public sector borrowing is still higher than forecast a year ago, and debt is over £700 billion higher than when the Tories came to power. George Osborne’s target for a 2020 surplus is a distant memory. The Government may be quick to point to productivity growth. However, we know from the OBR outlook that stronger productivity has in fact reflected the fall in average hours worked in the second half of 2017, as the noble Baroness, Lady Kramer, said, rather than stronger output. The OBR forecasts in November actually revised down productivity and business investment every year for the next five years. We are lagging behind the rest of Europe, with the productivity gap between us and other G7 countries the widest it has been since 1991.

This Government are failing to support working people. We have an economy running on low pay and insecure employment. Some 60% of people in poverty in the UK live in households where someone is in work. Clearly something is wrong here. The Government say that the economy is growing, but the UK is the only major nation in which wages have fallen at the same time. Wages are still below their level in 2010 and wage growth is being outstripped by inflation. The IFS has said that real average earnings are expected to grow by just 3.5% over the next five years, meaning that their level in 2022-23 would be similar to 2007-08. The OBR has said that real earnings growth over the next five years is expected to remain subdued, averaging just 0.7% a year. Growth in real household disposable income per person is expected to average only 0.4% a year. The national living wage was once again revised down. It will not hit the £9 per hour that the Tories originally promised. In the Spring Statement, it was projected to be just £8.57.

The Government’s headline figures on the deficit exist only because debt is being pushed on to local councils, schools and hospitals. Our public services are suffering a government onslaught. National Health Service trusts will end this financial year £1 billion in deficit. Doctors and nurses are struggling and being asked to do more, while 100,000 NHS posts go unfilled. Recorded crime is rising, yet the Government have cut the number of police officers by 21,500 and the number of firefighters by more than 8,500. Our prison and probation services are in dangerous crisis, and yet another prison riot has been reported today.

This Government are responsible for the first real-terms per capita cut in school funding in 20 years and are today trying to deprive 1 million children of a decent school dinner. They have trebled student fees to £9,000 and abolished the maintenance grant, meaning that the average working class student leaves university heavily in debt. Local government will face a funding gap of £5.8 billion by 2020 and is drawing down more reserves. More children are being taken into care, yet children’s services alone are facing a £2 billion funding gap by 2020, while more than 1 million of our elderly people are living with their care needs unmet.

After eight years of failure on housing, from rising homelessness to falling home ownership, the Government have no plan to fix the housing crisis. Statistics released just before the Spring Statement reveal that housebuilding has still not recovered even to pre-crisis levels. The OBR was not able to adjust its forecast on housebuilding as a result of any policies in the Budget.

The Spring Statement missed an opportunity to prepare our economy for Brexit and was a missed opportunity to invest in the services that we as a country will rely on increasingly in the post-Brexit future. The Chancellor may have kept his promise of no new fiscal policies, but that means that struggling families with low pay facing benefit cuts to free school meals will have to wait until the autumn for any kind of relief. I am not sure that they can afford to wait that long.

[Lord Bates]

My Lords, the noble Baroness rightly pointed out that we have had a few of these debates. They tend to come down to a debate between the optimists and the pessimists, and I have to say that the Government and indeed I myself are very much in the optimistic territory on this. We believe that we can make a success of Brexit and that our best days are ahead of us. The forecasts which are made are not targets to be met but are there to be beaten. Evidence of that is in the OBR forecast last year, which was mentioned in the debate, and the Autumn Budget. The forecast for growth was 1.5%, but the actual outturn in growth was 1.8%, which is welcome and something we want to see continue to happen.

The noble Lord, Lord Tunnicliffe, accused us of failing to support working people. Well, there are a lot more working people around whom we are supporting with jobs. There are some 3 million additional jobs in the economy, and that level of employment is likely to increase over the period of the OBR forecast, so there is a significant amount going on.

The noble Lord also challenged whether we are doing enough on housing. The whole point and thrust of the Spring Statement and the Autumn Budget was in the housing area. I am sure that my noble friend Lord Young, who is of course a specialist in this matter and in his place on the Front Bench, is longing to leap to the Dispatch Box to correct the record on what incredible things we are doing to give people an opportunity to have a stake in the future.

The economy is 16.7% larger than it was in 2010, and the IFS has said that, by the end of this Parliament, government plans will see public investment increase to its highest sustained level in 40 years. As the noble Baroness almost anticipated that I would say, we have announced a £31 billion national productivity investment fund to tackle our productivity challenge head on, and we are seeing some encouraging signs in that area. Ultimately, while the people who have confidence in the economy may not be found on the Opposition Benches, they can be found in companies like Toyota, which has said that it will build the next generation of its Auris hatchback in Derbyshire; BMW, which has said that it will build a fully electric version of the Mini in Oxford; Boeing, which will open its first European factory in Sheffield; and Dyson, which has announced that it is to begin work on a second technology campus.

We on this side certainly take a positive view of the underlying strength of the economy, while not diminishing the challenges we face. They were set out in the Autumn Budget and expanded upon in the Spring Statement, and they are contained in the convergence document which is being presented to your Lordships’ House today and which I have no hesitation in commending for approval, should noble Lords so wish.

Motion agreed.

Syria

Lord Bates Excerpts

Thursday 29th March 2018 Lords Chamber

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, I join other noble Lords in paying tribute to the noble Lord, Lord Roberts, for securing this debate and for his consistency and faithfulness to the people of Syria in their time of need. He began by telling us the words of the young girl in hospital in Aleppo with 70% burns who said that the Syrians have had just about as much as they can take of this crisis. That view of this tragedy is shared throughout this House. Often DfID’s work around the world is dealing with natural disasters and crises. This is a manmade crisis, which makes it all the more tragic, and it needs to have a manmade—and woman-made—solution.

The noble Baroness, Lady Cox, gave us some stark statistics about life expectancy declining from 75 to 55, and stressed her belief that the people of Syria ought to have the right to determine their own future.

The right reverend Prelate the Bishop of Coventry reminded us that things were not always the way they are and that there used to be a strong history and tradition of peaceful coexistence in that land. Considering his position in Coventry and the work that that diocese does around the world on reconciliation and coexistence, that had particular power.

The noble Earl, Lord Oxford and Asquith, reminded us of the incredible work done by civil society groups and international NGOs, such as the Red Crescent, and of the Syrian capacity for self-help, which often goes unrecognised in this.

The noble Lord, Lord Alton, talked about a region that has been convulsed by violence and spoke of the utter brutality and inhumanity of the treatment of Christians and Yazidis, particularly, at the hands of Daesh.

The noble Lord, Lord Dykes, talked about the complexity not only of the conflict but of the efforts to seek a solution through the UN Security Council and the various vetoes in evidence there, which can sometimes frustrate the opportunities to make progress.

The noble Baroness, Lady Sheehan, talked about the humanitarian response and the 400,000 killed. She reminded us that the problem is not getting better; in many ways, it is getting worse, in particular with the escalation in the number of children being killed over the past year. That is greater than in previous years.

The noble Lord, Lord Collins, reminded us of the importance of responding to the situation in Eastern Ghouta and its siege-like conditions. It is almost going back to medieval times, given the frequency with which we see this tactic and weapon applied not against armies but against women, children and the defenceless. He also referred to the need to maintain the humanitarian effort that we have.

We are all deeply saddened that we are now in the eighth year of this brutal conflict, which continues to have a devastating impact on the Syrian population. Thirteen million people in Syria are in need of humanitarian assistance, as the noble Lord, Lord Collins, and the noble Baroness, Lady Sheehan, said, and over 5.4 million have fled to neighbouring countries. 2018 has not brought any ease to the suffering. It is unacceptable that violence has escalated over recent months, despite the best efforts by the international community in calling for a ceasefire under UN Security Council Resolution 2401, which the UK used our role on the UN Security Council to secure.

The UK remains committed to achieving our goals in Syria, including defeating the scourge of Daesh. In that context, I thought it might be helpful to the House if I was to refer to part of the update given by the Secretary of State, Penny Mordaunt, in the House of Commons earlier today on the fight against Daesh. She told the House of Commons that,

“Daesh has been all but destroyed as a territorial entity in Iraq and Syria”,

by the global coalition and that it has lost,

“98% of the territory it once held across both countries”.

She then paid tribute to the UK forces,

“who have trained over 71,000 members of the Iraqi security forces, including the peshmerga. The RAF has launched over 1,680 airstrikes”,

but our work is not yet done and she called on,

“all partners, including Turkey, to remain focused on the … campaign”.

We must sustain the momentum created by the coalition in tackling Daesh to prevent it emerging elsewhere, as she said.

My right honourable friend continued:

“In north-east Syria, in areas recently liberated from Daesh, we provide a range of life-saving assistance”,


and are seeking to address the basic needs of ordinary Syrians. In October last year, as she said, we,

“announced an additional £10 million”,

of support for a range of activity, including the removal of landmines, which was asked about by the noble Baroness, Lady Sheehan, and improving access to clean water.

My right honourable friend went on to say:

“Through the UN Security Council and the International Syria Support Group, we continue to call on all parties to uphold resolution 2401 and take all feasible precautions to protect civilians, as required under international humanitarian law. As the conflict enters its eighth year, however, it is abundantly clear that only a lasting political settlement can end the suffering of the Syrian people and remove the root causes of extremism … The regime must now stop stalling and negotiate seriously. We call upon those with influence over Assad to use it to bring him to the negotiation table and meet the Syrian opposition who have shown they are ready to negotiate”,


without preconditions. She continued:

“Only in that way will the conflict finally end … we must not forget the danger posed to the UK from its returning fighters. As we have made clear, anyone returning from the conflict in Iraq or Syria will be investigated; where there is evidence that crimes have been committed, they must be brought to justice … As a leading member of the coalition, the UK will remain unflinching in our commitment to confront, degrade and defeat Daesh”.


Returning to my remarks summing up this debate, the UK remains committed to achieving a political settlement that ends the war and provides stability for Syrians and the wider region. We will continue to help people survive the toughest situations imaginable.

The noble Earl, Lord Oxford and Asquith, referred to the worst destruction and suffering that has continued in Eastern Ghouta. It was described by the UN as “hell on earth”. Despite Russia declaring Eastern Ghouta a de-escalation area, the regime, with Russian support, has continued to bombard and besiege the population into submission. Where and when access allows, DfID’s humanitarian partners are providing food, water and health support to those still in Eastern Ghouta.

In Afrin, which the noble Lord, Lord Collins, inquired about, we remain concerned about the impact of the Turkish operation on the humanitarian situation. We recognise Turkey’s legitimate interest in the security of its borders but continue to urge a reduction in violence, the protection of civilians and access for humanitarian assistance. UK-funded partners are providing assistance where they are able and are prepositioning supplies to help meet the needs of those fleeing the area. We are also concerned about the situation in Idlib, which continues to be bombed by pro-regime forces. More than 1 million internally displaced Syrians live there, including those who have fled Eastern Ghouta.

Through the UN Security Council and the International Syria Support Group we continue to call on all parties to uphold Resolution 2401. Working closely with the Foreign and Commonwealth Office, we promote the need to protect and defend freedom of religion or belief, which was referred to by the noble Lord, Lord Alton, and to uphold the rule of law. We remain concerned about appalling crimes committed against Syrian minorities, and I will say more about that in a minute. We prioritise reaching the most vulnerable people across Syria, including Christians and Yazidis.

Like the noble Lord, I attended the incredible exhibition organised by Open Doors in the Upper Waiting Hall. The artist had talked to Yazidi women who had been victims of the most horrendous crimes. The women had painted their own portraits and above them the artist had painted beautiful iconic style of artwork. We are currently in discussions with her to see whether we might be able to host the pictures in the Department for International Development to highlight that important work.

UK funding is distributed on the basis of need to ensure that civilians are not discriminated against. Across the region, the UK is helping Syrian refugees and host communities to meet their basic needs as well as investing in job opportunities and providing a quality education. For example, since 2012, the UK has delivered more than 5 million individual monthly food rations, provided almost 5 million vaccines and held more than 2 million medical consultations, referred to by the noble Lord, Lord Collins.

We remain deeply concerned about the situation facing those in Rubkan camp. The UK supported the most recent aid distribution at the berm in January and is currently supporting UNICEF to provide clean water and health and nutrition services to the population. We will continue to advocate for a long-term viable solution to the situation, consistent with international humanitarian law.

In Europe, we have provided significant support to migrants and refugees, including Syrians, and allocated more than £70 million in humanitarian assistance in Europe between 2015 and 2017. This included £39 million in Greece and £25 million in the Balkans, which were the transit route for most Syrian refugees. The noble Lord, Lord Roberts, quoted a powerful poem about the fact that people do not chose to be refugees and deserve our support. I want to reassure him that that support is being given. We are making good progress on our commitment to resettle 20,000 refugees fleeing the Syrian conflict and up to 3,000 at-risk children and their families in the Middle East and north Africa region by 2020. As of December 2017, a total of 10,538 people had been resettled in the UK under the vulnerable persons resettlement scheme, and a total of 570 people had been resettled through the vulnerable children’s resettlement scheme. This is in addition to those we resettle under the gateway programme and the mandate scheme, and the thousands who receive protection in the UK under normal asylum procedures. We will continue to uphold that role.

The suffering will only end when there is a political solution to the conflict. There needs to be a transition to a new, inclusive, non-sectarian government that can protect the rights of all Syrians and unite the country. If there is one phrase that was mentioned in every contribution, it was this: that Syria’s future must be for Syria to decide. I want to assure the House that that is our view too. The question is then how we get to the point where such decisions can be reached.

I will now address some of the questions from noble Lords, but I am conscious that, with the time available, I might not be able to address all of them, so I will write to them following this debate—after we have reflected on it—to respond to some of the particular points. The noble Lord, Lord Roberts, referred to the White Helmets. It is in the nature of their work that they are putting themselves in the front line: 167 White Helmet volunteers have lost their lives as a result of being deliberately targeted by pro-regime forces. This was mentioned by the noble Lord, Lord Roberts, and the noble Lord, Lord Collins, urged us to do more to protect aid workers. The Foreign Secretary and the International Development Secretary said, on 22 March:

“Civil society and aid workers are not a target and must be protected. Those fleeing Eastern Ghouta must be treated in safety and security and dignity. We continue to promote this view in the UN Security Council”.


The right reverend Prelate the Bishop of Coventry and the noble Lord, Lord Alton, referred to the plight of Christians in the Middle East. In Syria, we are promoting the inclusion and safeguarding of minorities as the political process progresses. We will continue to press this issue through our membership of the International Syria Support Group and through our close relationship with the moderate opposition.

The noble Earl, Lord Oxford and Asquith, questioned whether sanctions were hindering the procurement of food and medicines. Sanctions are targeted on individuals and organisations, and every effort is taken to minimise their impact on civilians. The UK continues to provide humanitarian support through the UN and NGOs, and this includes supporting hospitals and health facilities.

The noble Baroness, Lady Sheehan, asked about last-resort sites for internally displaced people. There are many formal and informal sites throughout the country—too many to list at this point. Where possible, the UN and NGOs manage and provide support for settlements for internally displaced people in Syria; of course, we are then providing support to them.

The noble Lords, Lord Alton and Lord Collins, asked what we were doing in respect of the efforts to bring Daesh to justice. The Government share the condemnation of the House of Commons of Daesh crimes and are aware of the strength of feeling on this matter in Parliament and in the UK. As the noble Lord, through many exchanges on these issues, anticipated that I would come back to, we maintain that it should be a matter for judicial authorities, rather than a political decision. However, the growing body of evidence that terrible crimes have been committed is why we have launched a “bringing Daesh to justice” initiative. The UN Security Council Resolution 2379 in September 2017 —which was, as we heard from the noble Lord, Lord Dykes, an incredible achievement—called for the terms of reference to be agreed between the Government of Iraq and the UN before any team was deployed on investigating these war crimes. These terms were agreed just last month, on 9 February, and the UN is now ready to start the process of deploying a needs-assessment mission to Iraq to report back on the practical measures needed to ensure that the investigative team’s efforts are successful.

The noble Baroness, Lady Sheehan, asked what we are doing about the latest UN appeal. We continue to support the UN appeal this year; of course, the London conference was such a seminal moment in rallying the international community to raise funds for the humanitarian response. As has already been pointed out, we have already made a £2.46 billion commitment to Syria and the region, which represents our largest ever humanitarian intervention and reflects the seriousness with which we take this issue.

As regards increasing the numbers for resettlement, our priorities remain humanitarian aid and actively seeking an end to the conflict in Syria. However, we have begun our work on future asylum settlement strategy, which includes consideration of the UK’s resettlement offer beyond 2020. The UK fully supports the UN-mediated political process and the efforts of the UN Special Envoy, Staffan de Mistura, which are aimed at reaching a settlement in this conflict. My noble friend Lord Ahmad hosted what everyone who attended found a very useful session for interested Peers earlier this week with Alistair Burt. He has an extensive interest in and knowledge of the region and had just returned from there, so he was able to update us on the position. We will continue to seek every such opportunity to keep colleagues updated and informed on what is happening.

The opposition have declared their readiness for negotiations without preconditions but the regime continues to obstruct progress. The regime and its backers must commit to a ceasefire and a political process that ends the conflict for good. The right reverend Prelate was absolutely right to remind us that if Easter is about one thing, it is about hope. We should never give up hope. Probably the best thing we can do for the Syrian people, as well as our aid on the ground and the diplomatic and military efforts we are making to protect them, is never to give up hope. I thank the noble Lord, Lord Roberts, again for giving us the opportunity to reflect on that as we begin our Recess.

[Lord Roberts of Llandudno]

I thank the Minister very much indeed for ending on what is always an encouraging note. The time is late; I could go on for some time but I would not be the most popular person. I hope that we will continue to talk about Syria month after month; it is important that we keep it on our agenda. Finally, I thank all noble Lords who have taken part. I wish everybody here Pasg llawen—a happy Easter. Diolch yn fawr; thank you.