Corporate Insolvency and Governance Bill

Debate between Lord Bourne of Aberystwyth and Baroness Barker

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 23rd June 2020 Lords Chamber

[Lord Bourne of Aberystwyth [V]]

My Lords, I support Amendment 40 in the names of the noble and learned Lord, Lord Wallace of Tankerness, the noble Baroness, Lady Taylor of Bolton, the noble Lord, Lord Pannick, and my noble friend Baroness Fookes. I share the concern about the retrospective nature of some of the amendments. I accept that in extremis, in rare situations, retrospective legislation may be justifiable, but I would welcome the Minister addressing why it is felt to be appropriate here.

At Second Reading I expressed my concern that the offence of wrongful trading is being disregarded in relation to matters that are not Covid-19-related. It is quite reasonable, as the noble and learned Lord, Lord Wallace of Tankerness, has just indicated, that there should be some mitigation of the provisions in relation to Covid-19-related deaths. However, if the insolvency is not due to Covid-19, it is hard to see why the provision should be suspended. This provision, brought in as a result of the recommendations of the Cork committee in the 1980s, was widely welcomed as tackling conduct by directors acting—or in some cases, failing to act—with malfeasance, resulting in companies having substantial debts and doing damage to employees and shareholders. I can see why that may need to be suspended for Covid-19-related deaths, but this goes further. That is why I support this amendment, which would minimise the effect of the suspension of wrongful trading. It would be suspended not in relation to broader activities but only to those concerning Covid-19-related deaths.

However, of greater concern, as we have just heard, is the retrospective nature of this part of the Bill. I would welcome the Minister addressing these points. In any event, the Government have gone further on wrongful trading than they should have. They are seeking to punish creditors who have debts that could well be enforced, as they have nothing to do with the Covid-19 emergency.

[Baroness Barker]

My Lords, I thank the noble Lord, Lord Callanan, for listening to what was clearly a compelling speech by me in Committee and bringing forward Amendment 39, which extends from 30 June to 30 September the period during which the relaxation of judgment in relation to wrongful trading will apply. I say this not because of any wish to encourage wrongful trading or to see people who trade wrongfully not properly held to account by a court, but because I know from experience of helping companies trying to get through periods of instability—charities, in my case—that they simply may not know at this point whether they will be wrongfully trading next month.

Domestic Violence: Victims

Debate between Lord Bourne of Aberystwyth and Baroness Barker

Tuesday 12th September 2017 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, the noble Lord makes a very important point about the particular situation where children witness domestic abuse. This is something that will be very much referenced in the consultation, and we will be looking at, for example, possibly having more stringent penalties when children are subjected to the sort of situation referred to by the noble Lord. I will take the specific situation he referred to back because it is a very valuable point.

[Baroness Barker (LD)]

My Lords, the domestic violence disclosure scheme was rolled out in 2014, and the first bit of evidence suggests that different police forces have been implementing it in very different ways. What are the Government doing to ensure that there is more consistency across all police forces in using that scheme?

[Lord Bourne of Aberystwyth]

The noble Baroness raises an interesting point about consistency, and she is absolutely right: we need to see consistency, although perhaps not uniformity. There will be certain situations that demand a different response. Again, that is something that we will be looking at in the consultation being carried out this autumn on the principles of the legislation.