Financial Services Bill

Debate between Viscount Trenchard and Lord Blunkett

Report stage
Wednesday 14th April 2021 Lords Chamber

[Lord Blunkett (Lab)]

My Lords, this group of amendments contains issues of profound importance. It is not surprising, therefore, that our progress this afternoon has somewhat slowed. I can be blissfully short, because the noble Lord, Lord Young of Cookham, spelled out in his usual eloquent and detailed fashion why Amendment 37C should be taken very seriously and that a solution must be found to the challenge that he laid out. Like the noble Baroness, Lady Altmann, I pay tribute to the noble Lord for his dedication and commitment. I have been proud to work alongside him. One of the great pleasures of this House is that it is possible to work effectively—I hope effectively—across party. The case that he made this afternoon, which he has been making for the last few months, is in my view unanswerable. The issue, therefore, is what progress can be made and what can be done.

The noble Lord, Lord Wolfson, has taken this issue seriously and to heart since he joined the House and took up his present position. Forgive me if I call the noble Lord, Lord Young, my noble friend. As he has spelled out, it is surely not beyond the wit of woman or man—working groups that do not meet or address issues aside—to be able to unlock funds that are essential, albeit small, for those for whom they were intended. My noble friend kindly indicated my history in this area. It was blighted by not having spotted that the Mental Capacity Act, which succeeded the decision to introduce child trust funds, would inadvertently lead to those funds being blocked for the most vulnerable.

I still regret very strongly that the early part of the coalition Government abolished child trust funds—driven, it has to be said, by the then Chief Secretary and not by the leading party in the coalition. But that is water under the bridge. The paradox of course is that, had the child trust funds continued and been delivered in the way originally intended—including continuous top-up funding—we would have been in a more difficult position in releasing these funds for those with learning disabilities, because the funds would have been much greater. Sometimes there are twists in life which you do not see and sometimes there are those you wish you had not.

This is a simple issue here, whether it is about Holly who was highlighted by my noble friend Lord Young, or Mikey, highlighted by the noble Baroness, Lady Altmann. I originally heard Mikey’s father outlining these issues on “Money Box”. He was also mentioned by the now leader of the Liberal Democrats in the other place. Those young people demonstrate the wider issue of access to modest but important funding that can help them at a crucial time of transition into adulthood, as was originally intended. There is also the profound issue of the growing capital asset divide in our country. With house prices accelerating as they are now, this divide will increase still further.

So I will make a very simple appeal. The noble Lord who is leading on this amendment will not press it to a vote. However, I think that the feeling of this House—both on the numerous previous occasions on which the issue has been raised and again this afternoon by noble Lords both online and present in this Chamber —is that a solution must be found, and found quickly. My experience during eight years in the Cabinet was that there were very good civil servants who explained, quite rightly, why something could not be done. I always valued them because they prevented me putting my foot in it more often than I did. But the best civil servants were the ones who highlighted the problem and then came up with a solution.

[Viscount Trenchard (Con)]

My Lords, the noble Baroness, Lady Meacher, spoke powerfully in favour of her similar Amendment 136F in Committee on 3 March. The noble Baroness has now brought forward Amendment 16 with the same purpose. It is supported by the noble Lord, Lord Stevenson of Balmacara, my noble friend Lady Morgan of Cotes and my friend the right reverend Prelate the Bishop of St Albans. I support all their arguments.

There is a weight of evidence of unreasonably aggressive behaviour by enforcement agents even before the onset of the pandemic. Your Lordships should be pleased that the Ministry of Justice launched a call for evidence as part of its second review of the reforms introduced by the Taking Control of Goods (Fees) Regulations 2014. It is understandable that that review is taking longer than expected in current circumstances. My noble friend Lord True explained that resources had to be moved to bring about the passage of the Corporate Insolvency and Governance Act, which was intended to help businesses survive the lockdowns. I would be interested to hear from my noble friend the Minister whether the Act is working as the Government intended, and how many companies have successfully applied for moratoria under the Act.

As the noble Baroness explained, her amendment allows the FCA to outsource the powers it would assume under this amendment to another unspecified person or body. I think this is far from satisfactory, and that the FCA should not be burdened with responsibilities in this area. The FCA is going to be busy enough with its new regulatory responsibilities and with what will rightly be an onerous system of oversight by your Lordships’ House and another place.

The FCA is not the right regulator to become involved with issues relating to non-payment of utility bills, for example. I am surprised that the noble Baroness is apparently unwilling to accept the assurance of my noble friend that the Government’s response to the review of bailiff regulation will be issued within this year. I expect that the Government will recognise that something needs to be done to control overaggressive behaviour by bailiffs, balancing such control against the need to retain an effective enforcement process. In view of my noble friend’s assurance, I am unable to support this amendment.

However, the FCA is the right regulator to protect potential customers of regulated financial services firms as well as contracted customers. Every contracted customer is a potential customer before entering into a contract to purchase supplies from a supplier, or to purchase services from a supplier, and thereby becoming an actual customer. I therefore support Amendment 26 in the name my noble friends Lord Leigh of Hurley and Lady Altmann.

The right reverend Prelate the Bishop of St Albans has made a powerful case for his Amendment 27, requiring debit and credit card providers to offer an opt-in option for gambling blockers. Research by GambleAware published in July 2020 found that only eight financial services firms offered blockers on certain products and ranges, estimated to cover 60% of personal current accounts. The research also examined the effectiveness of blockers currently available and found that they needed to be improved. Of the eight banks that offered blockers, three banks’ blockers could be immediately turned on and off, meaning that they functioned more like a light switch than a lock. I would like to ask my noble friend the Minister whether he agrees with GambleAware’s recommendation that the FCA, in its guidance, should require banks to include gambling blockers as standard on debit and credit cards.

The FCA already recognises that all banks’ customers are capable of becoming vulnerable, but it does not recognise that those with a gambling addiction are included in the categories it already recognises, such as those who have a cognitive impairment, low resilience to financial shocks or poor numeracy skills. It is of course very difficult to define what is a gambling addiction, and it also begs the question of how far we want the state to go in protecting us from all the risks we may encounter in our lives. However, the right reverend Prelate’s amendment calls for an opt-in option and therefore has some merit. I look forward to hearing the Minister’s views.

Agriculture Bill

Debate between Viscount Trenchard and Lord Blunkett

Committee stage & Committee: 1st sitting (Hansarad) & Committee: 1st sitting (Hansarad): House of Lords
Tuesday 7th July 2020 Lords Chamber

[Lord Blunkett (Lab)]

My Lords, I am very pleased to be back in the Chamber after nearly 15 weeks, and to reflect on what the noble Baroness, Lady Neville-Rolfe, and others have said about the need to accommodate more Members and get back to normal as quickly as possible. I have a personal interest in that I have discovered that I am very poor at reading a speech into a computer microphone, or even improvising, and whatever skills I have in oratory, humour and irony are absolutely wasted when online—not that I intend to draw on all three of those this afternoon.

I want to reinforce points made by the noble Baroness, Lady McIntosh, and the noble Lord, Lord Greaves, and to comment on the speech by my old—not in age but in longevity of friendship—friend, the noble Baroness, Lady Meacher. For those who do not know, the city of Sheffield incorporates in its boundaries a substantial part of the Peak District; in fact, a third of the landmass of Sheffield is in the Peak park. For the benefit of the noble Baroness, I can say that it is not, like some other cities, tatty—I think that was the word used by the noble Lord, Lord Greaves—land on the edge of the city. It is an essential part of the Peak park, as well as a breathing space, as it always has been, for the city itself.

The reason I mention it is that, as lockdown diminished—this was not one of those forays to discover whether I could drive a car safely—I went out into the area, still in Sheffield, around the Redmires Reservoir, and heard a curlew, one of the greatest sounds you can imagine. As the speeches this afternoon have emphasised, I simply want to say that in conserving as well as developing our agriculture, we should nurture the natural environment. I am all in favour of growing trees—they have to be the right trees—but we need our moorlands. On a point about water-gathering and conservation, we need to understand the essential nature of upland wet areas, particularly the peat bogs, which 13 years ago dried out to the point where, at around this time, in late June or early July, we had the most enormous flooding. At that time, civil servants told the Secretary of State, who happened—and continues —to be a friend of mine, that we were exaggerating when we said we had a problem. When the RAF lifted people by helicopter off the Meadowhall shopping centre, and when a 14-tonne piece of equipment was lifted out of its moorings and swept 100 yards from the Forgemasters factory in the lower Don Valley, I think they may have changed their minds. We need to be aware of what we do, how it affects our environment and why the Environment Bill that is to be brought forward and this legislation should go hand in hand.

I want to comment briefly on land management. The noble Lord, Lord Greaves, is right to indicate that small farmers—tenant farmers, herdsmen—have a job surviving; they use their skills to try to make a sufficient living from keeping the countryside working. But I say to the noble Earl, Lord Devon, that there are large landlords who, like the Duke of Devonshire—no relation —have been struggling to manage the watercourse. They have been working to defend the river running through the land around Chatsworth House from the scourge of American crayfish—which is not one of the breeds that I hope we will be protecting so Amendment 27 is, perhaps, not appropriate after all. They have been trying to do this by persuading Defra to give them a licence so that, having dealt with these crayfish under proper regulations so that nobody thinks of farming them, they can dispose of the fish in a way that allows them to cover the enormous costs involved. I am talking about 20,000 crayfish per year from a stretch of water of just two miles, which destroy the embankments, undermine the area around and are incredibly dangerous in relation to flooding.

All these things go hand in hand. My plea this afternoon is that, as we go through this Bill in Committee and on Report, we reserve for amendments those things that are in synergy with each other, to ensure that the Bill comes out not as a Christmas tree but as a good English pine.

[Viscount Trenchard (Con)]

My Lords, I am delighted to follow the noble Lord, Lord Blunkett, and strongly endorse his remarks with respect to the need to get back to this House properly, as soon as possible. I declare an interest as a trustee of the Fonthill Estate in Wiltshire, as listed in the register. I have read and considered all 36 of the amendments in this group and believe that the majority are unnecessary, even if they are well intentioned.

My noble friend Lord Lucas likes to use the verb “conserve” and attributes to it a meaning wider than words such as “protect” and “improve”. I sympathise with his intention to broaden the scope of the purposes for which the Secretary of State may provide financial assistance, but I am not sure that his suggestion to use “conserve” actually clarifies approved purposes, except in the cases of species of animals and plants.

My noble friend Lord Dundee and the noble Baroness, Lady Bennett, seek in Amendment 1 to clarify whether the Secretary of State really will provide financial assistance for the activities listed in Clause 1. I should have thought that this was obvious, but I welcome this amendment if it will encourage my noble friend the Minister to be much more specific in informing your Lordships of how much financial assistance will be made available under the ELMS scheme, and whether it will completely compensate for the loss of direct support payments, which will hit farming businesses hard in 2021.

It may be true that the larger estates are better able to survive the withdrawal of direct payments, but it is also true that the larger farming businesses employ a large majority of agricultural workers, and the prospects for those currently furloughed to return to the payroll will be enhanced if the Government can give a lot more clarity on how businesses can mitigate the loss of direct payments. Indeed, it should be made possible for those who are particularly innovative and active in introducing new, environmentally friendly practices to receive more than they have been receiving under the present system.