Corporate Insolvency and Governance Bill

Lord Thomas of Cwmgiedd Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Tuesday 9th June 2020 Lords Chamber

[Lord Thomas of Cwmgiedd (CB) [V]]

I draw attention to my interests as set out in the register. I thank the Minister for his clear exposition of the Bill, and in particular thank the officials of his department in the Insolvency Service for their close consultation with the judiciary. It is important to recall that the judiciary will have the job of making the Bill work when it becomes law, and will have to deal with the additional burdens that it plainly will place upon them. The co-operation that seems to have occurred is an admirable example of what should be done between government and judiciary, each acting within their respective spheres and respecting their respective roles.

My second point relates to the realism with which we must approach the Bill. It is, obviously, urgently needed. It is not going to be easy at all, given the current circumstances, to look at amending or clarifying the many provisions about which concern has been raised, both in this debate and outside, such as those relating to priorities, definitions, exemptions, the role and qualification of monitors and what they are to be allowed and not allowed to do; and to the question of the exit from the emergency provisions or their extension. There is also the obvious risk of error in a Bill that is necessarily being taken through at such speed. Therefore, perhaps unusually, I welcome the provisions in the Bill to permit changes by regulation. For example, on page 11, which inserts new Section A18 into the Insolvency Act, there is a very useful power to change the debts that are to be exempted. Can the Minister say whether there are sufficient powers by way of regulation, with the appropriate safeguards, to enable changes that may need to be made at great speed to be accommodated, bearing in mind the heavy legislative load that will be before Parliament over the coming months? We must realistically look at this, and of course we would welcome the views of the Delegated Legislation Committee.

Finally, I welcome Chapter 11, or the UK equivalent of that. As this is a longer-term form, is sufficient time being allowed for the introduction of that, bearing in mind all the other matters that those who have to deal with this legislation will also have to address?