Afghanistan

Lord Bruce of Bennachie Excerpts

Wednesday 18th August 2021 Lords Chamber

[Lord Bruce of Bennachie (LD)]

My Lords, from rereading the reports of the International Development Committee in 2007 and 2012, it is clear that we were in no doubt about the challenges facing not only the international community but the leaders and ordinary people of Afghanistan. Travelling across the country, we learned that corruption is rife, social values are deeply conservative, poverty is everywhere and the country is riddled with crime, violence and factionalism. Given that the Taliban regime harboured Osama bin Laden to execute major terrorist attacks, the case for going in was overwhelming. However, the minute the Bush regime prioritised the invasion of Iraq, it was clear that the resources Afghanistan needed would not be sustained.

Despite Afghanistan being a NATO-wide commitment, the US, as the biggest player, set the terms of engagement. This meant that donor co-ordination was less effective. The committee found that UK aid spending was several times more cost effective than that of the United States. We recognised that the commitment would be long term. We said that it would be a generation or more. It was not about building western style liberal democracy but helping to create a viable state with space for development and poverty reduction.

For President Biden to say that the collapse of the Government and the defence capability was the Afghans’ fault is truly sickening. With limited allied troops and strategic air cover, the country was functioning, if imperfectly. The rapid withdrawal demoralised the domestic forces, who were often deployed far from home with no protection or support for their families against the Taliban, so it is hardly surprising that they chose not to fight. Now the cost of failure could outweigh by many times the cost of maintaining a minimal presence. In the diplomatic fallout, what did the Prime Minister say to Imran Khan following his comments that the Taliban have

“broken the shackles of slavery”?

Pakistan was supposed to be an ally.

The committee challenged President Karzai over the rights of women, 80% of whom said they experienced violence from their husbands or other male relatives, yet by contrast the principal of the university in Bamyan told us that the enrolment of women had increased dramatically after the defeat of the Taliban.

Our priority now is to offer protection and support for those who relied on promises from the international community and now experience the bitter taste of betrayal. The numbers and timings for refugees announced fall short of our obligations—will they be urgently reviewed? The international world order looks pretty dysfunctional today. The savage cut to the aid budget was appallingly misjudged—will it now be reversed? Afghanistan is poor; it needs aid and development focused on poverty reduction, especially for women and girls.

Yesterday, Taliban leaders, masters of public relations, sought to give assurances that women will be allowed education and other rights. If the Taliban is serious, which many doubt, it should accept the presence of outside agencies and delegations. Will the Government test their good faith? Will they engage and, as the noble Lord, Lord Jay, suggested, consider an aid and even a diplomatic presence? Otherwise, how will we reach the millions left behind?

Official Development Assistance

Lord Bruce of Bennachie Excerpts

Thursday 24th June 2021 Grand Committee

[Lord Bruce of Bennachie (LD) [V]]

My Lords, I draw attention to my entry in the register as a corporate adviser to DAI and a consultant with the Westminster Foundation for Democracy.

Last year, official development assistance from all donors reached a record $161 billion. Most of the largest donors increased their aid budget as we were cutting the UK’s. Germany achieved 0.7% as we moved away, and Australia has reversed last year’s cuts. The UK is exceptional, but in a shameful way. The decision to cut aid is ideological and deeply damaging to the UK’s reputation and the needs of the world’s poorest. It undermines any credibility for the ridiculous and meaningless slogan “global Britain”.

What concerns me is the damage to the UK’s reputation and the long-term weakening of the UK’s development capacity. I have two examples. A long-standing flagship programme to transfer title to 14 million parcels of land to farmers in Ethiopia has been halted. Disgruntled with the UK’s betrayal of trust and determined to meet the needs of small farmers, the Ethiopian Government are looking to other donors. In Bangladesh, a strategic partnership with BRAC, established by DfID 10 years ago, has been cut. It is being continued by Australia and Canada but, without the UK, it will be cut by 30%. The UK’s aid programmes have been delivered flexibly and cost effectively by a wide range of large and small development partners, all of which fulfil a role. Faced with cuts at this scale and speed, some may fail. Others will let experts go or redeploy them to programmes with other donors.

The Government boast of a record economic bounceback, which will mean that we may miss even 0.5%. Will cuts be restored if that happens? Will we stay behind France and Germany in our delivery? They have taken over the UK leadership position. The problem is that, if the UK looks to get back its lead, capacity will not be available and previous ODA recipient countries might have found more trustworthy development partners.

Financial Services Bill

Lord Bruce of Bennachie Excerpts

Committee stage & Committee: 2nd sitting (Hansard) & Committee: 2nd sitting (Hansard): House of Lords
Wednesday 24th February 2021 Grand Committee

The FCA needs to be helped by an independent assessment of its shortcomings and failures. An investigation by the Treasury Committee provides this help by taking stock of the failures and providing guidance to the new or returning FCA CEO as to the challenges ahead. I have not even mentioned the challenge of shadow banking, which is excluded from this Bill but deserves to be debated. Importantly, the mechanism I have outlined—of scrutiny by the Treasury Committee —gives the victims a chance to speak. It is vital that the people’s cry for justice be heard by Parliament. There is hardly any other mechanism which enables that cry to be heard. I commend Amendment 71 to the Committee.

[Lord Bruce of Bennachie (LD) [V]]

My Lords, that was a powerful speech by the noble Lord, Lord Sikka, and clearly, a lot must be addressed. I served on the EU Financial Affairs Sub-Committee and the Treasury Select Committee, and currently serve on the EU Services Sub-Committee. Therefore, I am well aware of the contribution the sector makes across the UK.

The UK helped to shape the regulations and rules for the EU, but we have now left. The sector has consistently argued that a reputation for high standards and effective regulation is important to the confidence the world expresses in the UK’s financial institutions—notwithstanding the failures that have occurred. The combination of the European Parliament and the UK Parliament ensured that regulators have been accountable. I do not claim to be a technical expert on what is a complicated sector, but I recognise the dangers of regulation becoming an unaccountable closed book.

I support the case for a properly resourced specialist joint committee to ensure that regulators are held accountable, not so much on technical detail but in terms of a prudential framework and overall direction. That would be in the interests of the regulators and government Ministers as well as those who depend on a well-regulated and reliable sector. I share the concern that what the Government are trying to do will ultimately bite back if there has been no proper parliamentary oversight in a future scandal. The Government and the regulators will have nowhere to hide, but that will be very little comfort to people who may suffer from regulation failures.

Financial services are distributed throughout the economy. People often refer to the City of London, but we know that jobs and activities are distributed throughout the UK and have been growing in all the devolved Administrations. Edinburgh is the UK’s most important financial centre and one of the most important in Europe. According to TheCityUK, financial services contribute £13 billion, or 9.4% of GVA, to the Scottish economy. More than 160,000 people are employed in financial and related professional services, which is nearly 6% of Scotland’s national employment. The sector includes banking, fund management, insurance, life assurance and pensions, asset servicing and professional services.

Interestingly, Scotland accounts for 24% of all UK employment in life assurance and 13% of all banking employment. Given that Scotland has 8.5% of the population of the UK, this is clearly disproportionately important. According to Scottish Development International, there are more than 2,000 financial services businesses, supported by 3,650 professional services firms. Scotland’s financial and professional services exports account for 40% of all Scottish services exports.

Having said that about Scotland, tens of thousands are employed in the sector in Wales and thousands in Northern Ireland, and the number is growing in all the devolved areas. My Amendment 137 takes this into account and seeks to ensure that the devolved Administrations are consulted about any proposed changes in financial services regulations. It is clearly in the interest of the sector to have clear and common regulations across the United Kingdom, which is why this amendment looks for consultation only. It merely seeks to ensure that any factors of particular importance to a devolved Administration are, as far as possible, accommodated. I can see no conceivable advantage to financial services companies to diverge from UK regulation. After all, as the figures I cited show, a significant part of the financial services sector in Scotland is serving the whole UK market. The last thing it needs is a distracting push separating it from its customers, either by erecting barriers at the border or by promoting an alternative Scottish currency, which would undermine the raison d’être of serving the UK from Scotland, or a “sterlingisation” agenda that would put huge pressure on the public finances in Scotland.

My amendment seeks to avoid any unintended negative consequences. It is not intended to cause delay or to encourage special pleading. Given the particular importance of Scotland’s role in delivering life assurance and banking, it is surely right that any changes being considered to regulations affecting these sectors are not proceeded with until appropriate consultation has taken place.

That said, it is also important to recognise the role of professional support services, given Scotland’s distinctive legal system and, for example, accounting qualifications. The expertise that exists in Scotland should in any case surely be drawn on to inform regulations if and when changes are being considered. I share concerns that the Government are proceeding to build an architecture that lacks an adequate parliamentary dimension. It is perfectly reasonable to ask the legislatures of the devolved Administrations to be involved in contributing to the shaping of regulations, at least in their broad prudential thrust.

I look forward to hearing what the Minister has to say. I hope he will recognise the force of the arguments put by noble Lords about the need for a significant and effective parliamentary dimension and a recognition that the devolved Administrations, especially Scotland, should be able to contribute constructively and positively to that outcome.

[Lord McNicol of West Kilbride (Lab) [V]]

My Lords, one of the joys of being at the end of such a large group of amendments and a long speakers’ list is that very much of what needs to be said has already been said, so I will be brief.

The contributions from across your Lordships’ Committee, from the noble Baronesses, Lady Noakes and Lady Bowles, and my noble friend Lord Davies, outlined the importance of parliamentary and democratic oversight and the different levels and ways of delivering it. The contribution of the noble Lord, Lord Holmes, on the right levels of oversight also helped move the debate on.

The balance between regulatory authorities’ powers and those of Parliament is critical. My noble friend Lord Sikka clearly outlined in detail many of the failures of the regulators and of the FCA, so getting the levels right is critical. I add my support for those amendments that I am pushing forward. I look forward to the Minister’s response and to how we move this forward to Report and Third Reading.

Covid-19 Update

Lord Bruce of Bennachie Excerpts

Tuesday 3rd November 2020 Lords Chamber

[Baroness Evans of Bowes Park (Con)]

I entirely agree with the noble Baroness. We are working very closely with local authorities, and they do indeed have significant resources and powers to do local contact tracing. In fact, there are more than 128 local authority contact tracing teams in place around the country, with more to come. I am sure she will be aware of the Liverpool pilot scheme, which we are hoping will be successful and roll out. Everyone living and working in Liverpool will now be offered a Covid test, whether they have symptoms or not. Whole-city testing aims to protect those at highest risk and find asymptomatic cases in order to prevent and reduce transmission in the community, exactly as the noble Baroness said. If this approach works—and we are looking to roll it out—we are hopeful that it will play a significant role in doing exactly what the noble Baroness says in helping to make sure that local authorities and local areas can bear down quickly and effectively on outbreaks within their area.

[Lord Bruce of Bennachie (LD) [V]]

My Lords, yesterday the Prime Minister, in his characteristic style, said that the same terms would be available to Scotland if it went into lockdown later than England, yet this seems to be have been qualified by Robert Jenrick today, who said that it was a matter for the Chancellor. Scotland is watching to see whether the current restriction levels will bring about a sustained fall in the infection rate or whether more stringent measures will be needed. I am happy to acknowledge the £7.2 billion of additional support provided by the Treasury to Scotland, but we do not want a lockdown just to qualify for furlough, so clarity is needed. Will the same support now being given to England be available to Scotland if it has to follow the same route on a later timescale beyond 2 December?

[Baroness Evans of Bowes Park (Con)]

I am grateful to the noble Lord for acknowledging the £7.2 billion of funding for Scotland. This intervention has saved nearly 1 million jobs in Scotland, which I am sure is very welcome. As we have said, the furlough scheme is a UK-wide scheme, and it will always be there for all parts of the UK.