Draft Financial Services Bill (Joint Committee)

Lord Campbell of Pittenweem Excerpts

Monday 18th July 2011 Commons Chamber

[Thomas Docherty]

Perhaps my hon. Friend does not recall the exchange between me and the hon. Member for Portsmouth South (Mr Hancock), who is no longer in his place. I explicitly said that we would expect and hope that the Liberal Democrat party would offer a fresh name in the coming days.

[Sir Menzies Campbell (North East Fife) (LD)]

That is inconsistent.

[John Mann]

The right hon. and learned Gentleman, from a sedentary position, says that that is inconsistent, but there is no requirement for those proposing an amendment to agree on every remedy that would emanate from it.

My purpose is not to make any comment on individual Members but to ensure that because there is a balance between the other place and this place the Government take the issue back and rethink the entire make-up of the Committee in order properly to reflect the Parliament that we have, the elections we have had and the modern world we live in. I seek no more than that, but of course my hon. Friend the Member for Dunfermline and West Fife, who has added his name to the amendment, may have other, additional and different reasons. That does not negate the argument; indeed, one could argue that in a democracy it strengthens the case because there are different arguments from different perspectives with different options provided. The principle remains the same, however: it is invidious to have a balance of 4:2, four from the Government side and two from all the combined Opposition parties. However one looks at it, that in no way reflects the result of the last election.

It seems to me rather demeaning for this Parliament to go into such a long summer recess with this Committee apparently sitting through it with such imbalance and such bias. This question of priority and of why the Committee is sitting through the summer is another reason why the amendment has been tabled. If the amendment was passed, one would hope that the Government would be forced to rethink at this late stage. They chose not to table the debate earlier, although they had the opportunity to do so, but one would hope that the time for reflection they would have over the recess would also mean that the proposal for this biased and unrepresentative group, in relation to the general election, to Parliament as a whole, to the nations of the United Kingdom, to the gender balance in the House, to democracy and to the world in which we live, could not happen. It seems to me a wrong priority in the month of August, when there are many important things that we could be deliberating and engaging on, for this Joint Committee to be establishing its work. A slight delay allowing the Government to rethink, reformulate and re-democratise the proposal would be wholly in order. I am sure that in their heart of hearts that is exactly what hon. Members are thinking tonight, having heard the arguments that have been put forward. No hon. Member would want to go into this long recess having taken a decision so unrepresentative of our country, our Parliament and the world in which we live.

There is another fundamental issue at stake that has not yet been addressed, which the amendment would also allow reconsideration of—the giving away of financial control and powers to the other place. Important debates and deliberations on the future of the other place are currently going on, such as whether it should be partially elected—80% elected—how many should sit in it, where they should come from and what the time scale for reform should be. Those are all important issues, not least to parliamentarians in this House. Pre-empting that by giving financial powers to the other place—as the proposal is, in essence, a move towards doing—by having it scrutinise the draft Financial Services Bill jointly with this House is a start on a slippery slope in relation to the historical division on financial matters that has existed ever since democracy in this place was established. The proposal begins to unravel that and one might think that there are some within the coalition whose very agenda that is—those who want a proportionally elected second Chamber that has those financial powers. It seems to me that they have managed to sneak in, through this proposal at this late hour and this late stage—indeed, it would have been without this debate had we not tabled this amendment—potentially a constitutional issue of profound ramifications. It would mean handing over, albeit the very first semblance of doing so, financial powers, decision-making powers and authority to a second Chamber that some want to become an elected Chamber in the very near future.

There will be different views about that and I do not intend to go into what those views are—that is for another day—but it is relevant to the amendment to point out the consequences. Hon. Members who vote through this unwise, undemocratic, unegalitarian, anti-regions, anti-nations, badly thought-out, badly timetabled, rushed and last-minute proposal will be opening this House to potential ridicule from future generations who come here. They will ask when was the moment when we handed over to the other place that first little bit of power in relation to financial matters. When did we allow the second Chamber—