Corporate Governance

Lord Deben Excerpts

Tuesday 29th November 2016 Lords Chamber

[Lord Henley]

My Lords, there is much that I can agree with in the noble Lord’s response to the Green Paper. He is right to say that we should keep a light touch in these matters and that there are inherent dangers in any statutory approach that one might take in that people then feel that they must simply obey the law and nothing but the law and go no further. It is right therefore that one should offer guidance and encouragement to take the right approach. That is why I sought to make it quite clear in my initial response that we are looking for a collaborative approach as we move along so that all parties, in business or wherever, feel that they can play a part in putting this together and thus achieve the right level of guidance in a code of corporate governance that everyone feels they can live with. As I say, I agree with much of what the noble Lord said.

[Lord Deben (Con)]

My Lords, is my noble friend aware that the payments problem is much more urgent than any White Paper? Large companies are now pushing back the dates by which they pay smaller companies and the problem has never been as bad as it is today. Will the Government look at that separately from the Green Paper, because in the meantime many companies will go to the wall if we do not?

[Lord Henley]

I take it that my noble friend is referring to the problem relating to payments made by big companies to their suppliers down the line. He is right to draw attention to this issue and it is certainly something that I would want to pass on to my right honourable friend because, as he says, it can be a cause of major concern for those in the supply chain if they are not being paid in good time. As I say, I will pass that on.