Economic Crime and Corporate Transparency Bill

Lord Fox Excerpts

Consideration of Commons amendments
Wednesday 25th October 2023 Lords Chamber

[Lord Fox (LD)]

My Lords, I thank the noble Lord, Lord Sharpe, for his comments. It is good to see the noble Lord, Lord Johnson, here as well, because together, along with other colleagues, they have done a good job in bringing forward this important Bill, the objectives of which we all shared from the outset.

The debate we have had right across your Lordships’ House has not been party-political but about practicalities and aspirations for how this Bill will work when it finally gets Royal Assent. Thanks to this debate, there have been improvements as we have gone through the process. All noble Lords who have participated, not many of whom are here today, have added value to that process. That value has been recognised by Ministers, the ministerial team and indeed the departmental team in the way the Bill has changed during its progress through this House.

The noble Lord, Lord Sharpe, said that he hoped this would be the last time the Bill goes through this House, and I think he can see that it will be. But I hope it is not the last time we discuss its effects and what it seeks to achieve. Parts of the Bill are designed completely to overhaul the way Companies House operates. How that works, whether it works and the extent to which the abuses endemic in the system can be cracked down on will be a really important facet of the Bill.

Enforcement is very much within the remit of the noble Lord, Lord Sharpe, and the Bill’s effective enforcement is key to whether we succeed in bearing down on economic crime. All your Lordships support the enforcement agencies in their work, and in any opportunity we have to come back—whether through the secondary legislation opportunities provided in the Bill, or to review things going forward—enforcement will be vital to success.

I am happy that the noble Lord, Lord Sharpe, mentioned the two issues the noble and learned Lord, Lord Garnier, and the noble Lord, Lord Faulks, set out. The extent to which the extension of this measure to smaller and medium-sized companies can be reviewed is an important point; it was noted during debates many times and I am pleased that the Minister took the opportunity to reiterate the position. I hope that in due course, the review of whether the rules need to extend to smaller companies does indeed happen, and we are able to see whether it is necessary.

Cost protection is a wide and important issue when looking at this aspect of economic crime, as is whether enforcement can be cost-effectively delivered when large, wealthy concerns are in the crosshairs of the authorities. I welcome the review; we look forward to its results and to having the opportunity to debate it when the time comes. In the meantime, your Lordships can be satisfied that they have more than thoroughly scrutinised the Bill, which leaves this House in a better state than when it arrived.

[Lord Coaker (Lab)]

My Lords, the noble Lords, Lord Johnson and Lord Sharpe, have done an excellent job in improving the Bill; there are no two ways about that. It is probably incumbent on me at this point to remind noble Lords that the “failure to prevent” amendment was put into the Bill in your Lordships’ House, as were the protection from costs orders and the associated compromises. It would be remiss not to mention that.

Having said that, it is of course a little disappointing that the Government were not able to make further compromises, in particular the compromises that were moved in the other place by not only Dame Margaret Hodge but by two prominent Conservative Members of Parliament, Sir Robert Buckland and Sir Robert Neill. So there is clearly still concern around some of these issues, but it would be churlish not to recognise the progress that has been made and the fact that the Government are going to keep much of this under review. It will be interesting to see the results of that review in terms of how the legislation operates and whether it operates in the way the Government expect. It is important that Ministers keep on top of that to make sure that the legislation does what is expected of it. I have every confidence that the noble Lords, Lord Sharpe and Lord Johnson, will do that. I agree very much with the noble Lord, Lord Fox. Indeed, that has been a consistent refrain throughout the passage of the Bill, both in the other place and this place.

I will finish with this remark. The Bill is an important step forward, but the enforcement of it is everything. If laws that have been improved are not enforced, much of the debate and discussion we have had will not be as valuable as it should be. If the noble Lords, Lord Johnson and Lord Sharpe, can reinforce to their officials and the various agencies involved that enforcement is everything, as the noble Lord, Lord Fox, said, we will all be reassured.

I thank the noble Lords, Lord Sharpe and Lord Fox, and other noble Lords who have been involved in the Bill, including the officials. We have a piece of legislation that is much improved from where we started, and I look forward to its implementation.