Premium Bonds

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Thursday 23rd March 2017 Lords Chamber

[Baroness Neville-Rolfe]

As I said, it is important that people have choice and look at a sensible way of saving. Having material on different websites is important but, in the round, we try to make sure that government advice gives people a sound sense of direction on savings, including what is good value for money. Again, I emphasise the point about pensions: investing in a pension is a very good form of saving.

[Lord Forsyth of Drumlean (Con)]

My Lords, would my noble friend look at the rules, which, while respecting the importance of avoiding money laundering, make it extremely difficult for grandparents and others to gift premium bonds to young children? That would be a very useful way of encouraging saving.

Hinkley Point C

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Thursday 15th September 2016 Lords Chamber

[Baroness Neville-Rolfe]

As I explained in the Statement, on the Hinkley project we will, following the changes to the deal, have a veto over change of ownership. The project will also be subject to what everybody agrees is the world-class oversight of the Office for Nuclear Regulation, which can intervene in development, construction and operations, and amend site licences, among other things. That is a very important control. Then we will consult on proposals to establish a legal regime that allows us to consider national security implications in all significant investments in critical infrastructure. Once that becomes law it will apply to major infrastructure in the UK.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not think that there is a certain irony that after the nation voted to take more control of its own affairs we are asking two foreign Governments to take control of 7% of our future energy requirements? In particular, what actual transfer of risk is happening here, which presumably justifies the very high price that consumers will have to pay for this energy? Is there really a transfer of risk given that this technology is untried? No one has been able to make it work. What is plan B if it turns out that this thing does not work, to maintain energy security for our country? Finally, I very much welcome the emphasis placed on the importance of security and so on, but does the Statement not rather reek of closing the stable door after the horse has bolted?

[Baroness Neville-Rolfe]

As I explained, the risk of construction falls on the consortium. We have a deal at a pre-agreed strike price which will produce a supply of electricity over an estimated 60 years. Everyone in this House this afternoon seems to take too gloomy a view of the prospects of building this facility. We looked at this very carefully over a number of months. Our Chief Scientific Adviser gave us reassurances that learnings have been taken from other nuclear facilities. However, the consumer does not pay a penny until Hinkley generates electricity. The risks are borne by the developer.

Employment: Remuneration

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Thursday 8th September 2016 Lords Chamber

[Baroness Neville-Rolfe]

I have not yet read the report, although I know that it was discussed in the House and I think it makes a very useful contribution. As I see it, that idea is in the mix of what we will consult on. The underlying objective is to make shareholders exercise much better oversight over company decision-making. The changes that we will be looking at, and indeed prior reforms, have been directed at this objective—some with more success than others.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend know that many of the big institutions contract out their voting to other organisations at company AGMs? Is not the key to ensuring that remuneration is brought under proper control that those institutional shareholders exercise their rights and that the Government change the rules so that votes on executive pay at shareholder meetings are binding on boards?

[Baroness Neville-Rolfe]

My noble friend makes a very good point about voting. I am glad to say that one of the options we will be looking at is binding votes, for the reasons that he says.

Trade Union Bill

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Tuesday 3rd May 2016 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, I believe that we have made significant progress today, despite the confusion over the timing of the Statement. The review will help to assess the rigour of the latest technology and address concerns about security, confidentiality and intimidation. It will allow us to consider again the case for e-balloting and ensure that we are making the right decision about whether to allow this method for conducting trade union ballots. I note what the noble Lord, Lord Collins, said about the value of increasing participation through e-balloting and the points made by the noble Lords, Lord Kerslake and Lord Pannick, about its value.

Let me first address the point raised by the noble Lord, Lord Stoneham, about pilot schemes. Pilots are always a good thing, and it is a pity they are not deployed more generally in public policy. How and when you use them in this area is not something that can be decided today. However, we have specifically mentioned them in the Bill and I appreciate from exchanges that we have had, including with the noble Lord, Lord Mendelsohn, that they are important.

I note the point made by the noble Lord, Lord Collins, about involving interested parties in the review, and in particular trade unions and the Trades Union Congress. This will of course be an independent review, and it will be for the chair to determine how best to conduct it. However, to my mind, it would make sense to involve trade unions, and indeed other relevant experts, and I am sure that he or she will come to the same view. Union input is very important, and in deciding how to set up the review we obviously need to avoid conflicts of interest.

My noble friend Lord King rightly quoted my honourable friend Nick Boles, who has done so much to progress this legislation, and the Government’s intentions, as set out recently. I cannot really add to that, but a number of noble Lords have asked about timing. I am pleased to provide reassurance that the review will be acted upon in due course and without delay.

[Lord Forsyth of Drumlean (Con)]

My Lords, I am most grateful to my noble friend the Minister. We did of course have extensive debates about the merits of this at an earlier stage of the Bill. Could she tell the House when and why the Government changed their mind on this matter?

[Baroness Neville-Rolfe]

My Lords, we discussed e-balloting in this House in Committee and at Report. There was a very widespread view that we should try to find a way forward on e-balloting. It is fair to say that we have been working since then to try to do just that. The Bill went back to the other place with amendments made by this House, most of which were accepted, and it was decided by the Government that we should bring forward a review of e-balloting in exactly the form that I have described today. I welcome that and welcome the progress that that has meant we are able to make on this Bill.

I shall not delay your Lordships long on this issue. I am very interested in all aspects of the advance of digitalisation—my friends know that—so I look forward to seeing the results of the review of e-balloting that we are agreeing today.

Update on the UK Steel Industry

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Monday 11th April 2016 Lords Chamber

[Baroness Neville-Rolfe]

The noble Lord is right. We always need to look at the wider costs, especially in such difficult areas of public policy. That is one of the reasons we have said that we will look at things like co-investment and further support. Of course, if people are out of work the benefits costs and the broader social costs to families in not having a working member and the consequent effect on their children and so on can be devastating. That is why a succession of Governments—I do not think that this is a party point—have sought to do really good work where there are closures. That has happened right across the UK, most recently in places like Redcar where the task forces have been working really well in very difficult circumstances.

[Lord Forsyth of Drumlean (Con)]

My Lords, what are we to make of what is going on when for the second Forth crossing, which is a £1 billion project, some 95% of the steel had to be imported from China, or when Germany is a major exporter to the UK? Is not the truth of the matter that the European Union’s rules on state aid and its rules on trade have shackled the hands of whichever Government are in power and that no Government will be able to deal with this matter while still in membership of the European Union?

Trade Union Bill

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Wednesday 16th March 2016 Lords Chamber

[Baroness Neville-Rolfe]

This is an important debate, and I thank noble Lords who have taken time to contribute. I think that the sense of the House is clear, and I would say that electronic communications are the future—as I have said on many occasions, on other matters. Society is changing, as the noble Lord, Lord Kerslake, explained so eloquently, which is why the Government are promoting the programme of digitalisation, supporting the British-based creative economy, with apps such as Lyft share—and, indeed, as the noble Lord, Lord Forsyth, said, there is the use of the internet across government services. So there is a lot of support for the introduction of electronic balloting for decisions by trade unions. I have to say that I have a great deal of sympathy with these sentiments, and I am not going to argue with the substance of much of what has been said.

I am afraid that I cannot agree to the amendment proposed by the noble Lord, Lord Kerslake. It seeks to require that an independent review is commissioned within six months of this Bill becoming an Act and that the Secretary of State publishes a strategy for the rollout of electronic balloting after consulting relevant organisations. We do not think that that is the right approach. The fundamental problem that we have with it is that if the review found problems, the Secretary of State would nevertheless be committed to pressing ahead with e-balloting regardless.

The common ground we have is that we agree in principle with the concept of electronic balloting. As my noble friend Lord Callanan said, we already have the ability to bring it into effect for statutory trade union decisions, including industrial action ballots. The power is contained in Section 54 of the Employment Relations Act 2004. Where we differ, I think, is on the issues of timing and security, and I will outline the issues that are currently holding us back from exercising that power right now.

To respond to my noble friends Lord Forsyth, Lord Deben and Lord Cormack, there are risks. They cannot just be ignored. The consequences are serious, particularly for strike ballots, because strikes have such far-reaching consequences for union members, who may lose pay for the days they are on strike; for employers, whose businesses are adversely affected; and, of course, for the public, whose daily lives are disrupted.

Perhaps I should at this point thank the noble and learned Lord, Lord Brown, for repeating his question regarding the bizarre example. I should of course have come back to him in Committee. It is an extreme example when exactly 50% of workers turn out for a ballot for industrial action in an important public service. It is right that we ask for 40% of eligible members to support strike action before it can take place in important public services on which millions of people rely, as I have said. Recent events show that the threshold can be achieved when union members feel strongly about live issues.

To return to the issue of electronic voting, we must ensure that there is the utmost confidence in ballot processes. The Speaker’s Commission on Digital Democracy quoted the Open Rights Group summing up concerns over the security of online voting:

“Voting is a uniquely difficult question for computer science: the system must verify your eligibility to vote; know whether you have already voted; and allow for audits and recounts. Yet it must always preserve your anonymity and privacy. Currently there are no practical solutions to this highly complex problem and existing systems are unacceptably flawed”.

The key challenge is how to be sufficiently confident about both the security and the confidentiality of the votes—so let me try, step by step, to explain the problem. First, there is the need to confirm identity. Computer expert Dr Kevin Curran reported to WebRoots Democracy, for its recent report on secure voting, on the difficulty with ensuring a system that is secure enough to ensure voter verification. Professor Robert Krimmer says in his contribution to the WebRoots report that ensuring that the system is sufficiently secure “is really tough”. He was particularly concerned about the practicality of testing a system that incorporates individual voter verification.

Secondly, there is the need for confidentiality. This is an active field of research. Electoral Reform Services acknowledges the challenges of the secrecy of the vote, which is critical if we are to ensure a truly secret ballot. It is important that no one—neither the union nor the employer—can see how a member has voted. Noble Lords may argue that electronic voting is as secure as postal voting, but I am not convinced. It is potentially easier to gain access to huge quantities of electronic votes, which it would be physically impossible, or certainly much harder, to do with postal votes. Mi-Voice, an organisation that develops secure transactional applications, has stated that while,

“it is possible to de-couple the identity of the voter with the vote cast … this … represents one of the biggest challenges to e-voting providers”.

Thirdly, there is the issue of security. Dr Curran also exposes the significant risk that exists of cyberattack, explaining that approaches which had worked just a few years ago are now useless and that we can expect many more attacks. The Electoral Reform Services report, while recognising that it is right and proper to give consideration to the use of e-balloting, recognises a number of difficulties. For example, how can people securely vote if their computer is infected with viruses? Although antivirus software exists, it has to be kept up to date in order to be properly effective. I know from my own unhappy domestic experience just how important this is. So the system relies on people following best practice advice, and it can only protect against known issues. The WebRoots report also indicates that the Du-Vote system, which is being developed at the University of Birmingham, could resolve the issue, but not until about 2020 or 2025.

Finally, there is integrity. The risk is of voter coercion. I will not test your Lordships’ patience by suggesting that this is a problem that is unique to an electronic method of voting but obviously it is an issue that affects it, and is serious. This issue does not solely affect the UK—

[Lord Forsyth of Drumlean]

I am listening to this series of difficulties which the Government do not know the answer to. Is that not the most powerful argument we have heard this afternoon for having an independent commission to look at them and report?

[Baroness Neville-Rolfe]

My Lords, I have explained that we already have the power, and we also have the will to move in this direction. However, for the reasons I have stated, we should not agree to the review set out in the amendment. As I was saying, other countries have struggled to implement online voting successfully and sustainably. The Speaker’s commission identified 14 countries that have tried internet voting for binding elections, which included five countries—the UK, Finland, the USA, the Netherlands and Spain—which either piloted or fully adopted electronic voting and then decided to discontinue its use.

There is a problem here. The only country that has succeeded with a sustainable system is Estonia, and that is because its ID card system makes it unique. I met with the President recently and we had an interesting discussion about this. Of course, it is possible there because their system is different.

On the amendment in the name of the noble Lord, Lord Kerslake, of course, the concept of a review is not new and, as I said, a lot has already been done to review the case for electronic balloting. I have spoken of the Speaker’s Commission on Digital Democracy, which published a report on 26 January last year. Obviously, the Electoral Reform Services looked at the case for e-voting for trade unions in the UK and published its findings—indeed, they were published online—and WebRoots Democracy published a report on 26 January on secure voting with contributions from global experts and academics in the electronic voting field. Therefore, we are not short of reviews.

Against that background and despite the excellent points made by noble Lords, I cannot agree with the amendment because it irrevocably commits the Secretary of State to press ahead with a strategy for the rollout of electronic balloting, irrespective of any problems the review finds. I have tried to explain that another review could find problems—it is not absolutely dead easy. As I have said, we have the power to permit e-balloting, and we will use it when we are convinced that all the concerns have been addressed. This is why the current legislation is framed as it is, and for good reason.

I am conscious that this all sounds rather negative but, rightly, noble Lords want to know what problems prevent us agreeing to electronic balloting and I hope I have given a flavour of them. There has been a good deal of positive progress in the way technology can help to address these issues, and that is reflected in the reports I have cited.

I hope that I have been clear. I have listened to the case for the amendment and the case made at other stages of the Bill but, for the reasons I have given, the Government do not support the amendment and I encourage the noble Lord to withdraw it.

Trade Union Bill

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Thursday 25th February 2016 Lords Chamber

[Baroness Neville-Rolfe]

I am not sure I entirely understand the point. If I may, I will reflect on it.

[Lord Forsyth of Drumlean]

I am sorry—I am irritating my noble friend by intervening. I am just worried about this principle that the Government think it should be a matter of law that there should be deductions only for things which have tax implications. Does that mean we can look forward to the Government bringing forward legislation to stop people having deductions for Christmas clubs and suchlike?

Trade Union Bill

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Wednesday 20th January 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)]

My Lords, I thank the Leader of the Opposition for introducing her Motion and I have listened very carefully to the arguments for appointing a Select Committee to consider Clauses 10 and 11 of the Trade Union Bill. However, I ask the House to bear with me as I set out the Government’s position that these clauses relate to trade union reform and not to party funding reform.

The Trade Union Bill is just that: it is about trade unions, and it introduces a number of reforms based on the 2015 Conservative election manifesto, as my noble friend Lord Forsyth explained so eloquently. I believe that most uncommitted observers would regard these reforms as unexceptional. They represent proportionate reform based on a clear manifesto commitment, which includes a transparent opt-in process for union subscriptions.

However, I must deal first with the confusion which has surfaced—namely, the difference between contributions to trade unions’ political funds and trade unions’ funding of political parties. The Bill requires members of trade unions explicitly to opt in to a political fund. That is not the same as requiring opt-in to union donations made to a political party. Political funds are used for all sorts of campaigns, some of which are not at all party political.

Let me explain the problem that Clause 10 seeks to address. Under current trade union legislation, union members have the choice to opt out of contributing to a union’s political fund. However, that choice is on too many occasions difficult to exercise, and not made clear to individuals. So, to reply to my noble friend Lord Forsyth, we want to end that unfairness and provide full transparency by allowing union members an active opt-in to the political fund. I look forward to discussing that in Committee.

This Motion has been brought to consider Clauses 10 and 11 in the light of the 2011 report of the Committee on Standards in Public Life. Of course, the noble Lord, Lord Tyler, also sought to bring forward a Motion on party funding at Second Reading based on the same report. However, Recommendation 4 of the report specifically addressed a cap on affiliation fees to a political party, not how the contributions are made to political funds of trade unions. The latter did not, in fact, form part of the recommendations of the CSPL report, as the report related to party funding, and party funding is not a matter for this Bill. It is a separate matter that has been the subject of a large number of reports over many years. The recommendations in the 2011 report of the Committee on Standards in Public Life were not accepted by the two major political parties, as we heard, including the party of the noble Baroness, Lady Smith. It would be peculiar for a Select Committee on political party funding to be set up based on a report that does not command cross-party consensus. As the noble Lord, Lord Bew, suggested, a lack of party consensus is at the heart of the problem. Therefore, it would be difficult to make any progress in five weeks, as he said.

[Lord Forsyth of Drumlean]

Can my noble friend give us some examples of where people have been prevented from opting out of the political fund and explain the extent of the problem? Can she also explain why this cannot be achieved by some kind of agreement of a code of conduct with the trade unions?

[Baroness Neville-Rolfe]

My Lords, this is a Motion on procedure and I was not planning to go into the detail, but I will certainly write to my noble friend and other noble Lords and we can discuss in Committee the sort of examples that he is talking about.

As we made clear in our manifesto, we will seek to secure an agreement on party funding reform. Indeed, it is open to the committee of the noble Lord, Lord Bew, to take this work forward in the light of updated data but, I repeat, such work is entirely separate to the passage of the clauses in this Bill, which relate to trade unions and not to party funding discussions. The noble Lord, Lord Tyler, and other noble Lords have made a number of interesting points today, which I will not seek to reply to, as this Bill is not about party funding. I recognise, of course, that some noble Lords feel strongly about the Bill, but all institutions need modernisation and that is what the Bill is about.

The noble Baroness, Lady Smith, has suggested that the House is underinformed about the Bill. I find this difficult to believe, given the marathon debate that we had at Second Reading. The measures in the Bill are rooted in the manifesto, for which we won a majority of support in the election. They are supported by members of the public, whose interests as parents, patients and commuters the Government were elected to defend. The measures secured clear majorities at all stages of the Bill in the elected Chamber. They had the benefit of extensive scrutiny in the other place, including in oral evidence from key stakeholders in Committee.

Furthermore, I am looking forward to a comprehensive debate shortly in a Committee of the whole House. Even my noble friend Lord Cormack, with whom I do not always see eye to eye, seemed to think that the Bill should be considered in Committee, in the best traditions of this House. That is because a primary purpose of this House is to scrutinise and improve legislation. Today’s Motion will not improve the effectiveness of that scrutiny; indeed, it would shift the focus of scrutiny to party funding and away from the central purpose of the Bill, which is trade union reform.

To address the specific concern raised by the noble Baroness, Lady Smith, I am pleased to confirm that we will publish impact assessments on the Bill tomorrow. I will personally ensure that copies reach the noble Baroness and the noble Lord, Lord Mendelsohn, once they are published.

Redcar Steelworks

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Tuesday 13th October 2015 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, on the up to £80 million that is made available, how much goes on redundancy will depend on uptake, but we are clear that it will provide a lot of funds for training and reinvestment in skills—the sort of things that are needed and that are in the hands of the local task force that we have set up and did great work in 2010. The Prime Minister has said that, if necessary, we will look at this again, but we think that the £80 million will make a huge difference to the more than 2,000 unfortunate people who, if one takes all of them together, will lose their jobs—it is very disappointing. On a future task force, we are focusing this week on the summit and on the local task force.

[Lord Forsyth of Drumlean (Con)]

Does my noble friend know that for the second Forth Bridge crossing, which was commissioned by the Scottish Government, the majority of the steel is being shipped from China? That suggests that there is a degree of uncompetitiveness or a degree of dumping of steel going on. Does my noble friend not acknowledge that one consequence of putting green taxes on high-energy-using businesses is to make them uncompetitive, leading us to import carbon from our competitors and to put our people out of work?

[Baroness Neville-Rolfe]

My Lords, I am not sure that energy policy is the issue here. We have already paid £50 million in compensation under the Energy Intensive Industries Compensation Scheme. As my noble friend said, the issue is the lack of competitiveness, but I think some public organisations do this better. If one looks at Crossrail, one sees that it used a great deal of British steel in its concretes by way of the work that it did with the supply chain to encourage it to bid for work during that excellent project.

Zero-hours Contracts

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Thursday 11th June 2015 Lords Chamber

[Baroness Neville-Rolfe]

My Lords, zero-hours contracts allow people to come into the workforce who could not otherwise come in for the reasons I have explained, participate and get a job. The social security welfare framework continues to apply. This seems to me to be a good thing, not a bad thing, as the noble Baroness suggests.

[Lord Forsyth of Drumlean (Con)]

My Lords, my noble friend is making a very eloquent case for flexible working, but that is not the same thing as zero-hours contracts where people have to turn up to find out whether they have a job and are not reimbursed under their employment contract. Given the Government’s record in bringing flexibility into the labour market, is this not a matter which needs urgent attention?

[Baroness Neville-Rolfe]

I am glad my noble friend mentioned the value of flexibility. We have asked officials to look at issues facing those on zero-hours contracts to see whether any further voluntary or statutory action is necessary because of the sort of points he has made.

Industry: International Investment

Debate between Lord Forsyth of Drumlean and Baroness Neville-Rolfe

Tuesday 2nd June 2015 Lords Chamber

[Baroness Neville-Rolfe]

I note with interest what the noble Lord says, and I agree that all the things he has listed are vital reasons as to why people want to invest in Britain. We have unique labour flexibility, it is easy to set up business here compared with other countries—as I know from having been a business person for 17 years—and we have a good, welcoming tax regime and very good education.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not accept that it would be a good idea to provide objective information so that we can have a sensible debate in the forthcoming referendum? Should we not be conscious that the scaremongering tactics that were used in the Scottish referendum proved deeply counterproductive, and that those who wish to remain in the European Union would be wise not to spread the myth that Britain cannot survive alone, using its relationships with the Commonwealth and elsewhere to maintain our prosperity and employment?

[Baroness Neville-Rolfe]

My Lords, my noble friend makes many good points, some of which I agree with. I look forward to further debates on these issues in the coming weeks and months.