Finance and Insurance Market: Underwriting Fees

Lord Harrison Excerpts

Wednesday 12th January 2011 Lords Chamber

Asked By

[Lord Harrison]

To ask Her Majesty’s Government what assessment they have made of the level of underwriting fees in the United Kingdom finance and insurance market.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, the Office of Fair Trading is currently undertaking analysis of the way the underwriting market works and assessing whether there is potential for improving the way it functions. The report will consider how underwriting services are purchased, how underwriting services are provided and how the regulatory environment affects the provision of these services. The report is intended to be published later this month. The Government await with interest the findings of the report.

[Lord Harrison]

My Lords, given that City underwriters have in recent years pocketed some £2.5 billion through raised insurance claims without paying out once, not even on the capital-raising bids from RBS and Bradford & Bingley, does the Minister accept that those who lose out are the British shareholder, investor, saver and taxpayer? In light of this, will HMG undertake to implement in full Douglas Ferrans’s report on this subject to increase confidence in the industry, transparency and competition, and bring greater and strengthened rights to shareholders?

EU: Economic Governance

Lord Harrison Excerpts

Wednesday 27th October 2010 Lords Chamber

[Lord Sassoon]

My Lords, the critical point is that the sanctions that apply apply only to the eurozone members. They do not apply to the UK, which has a specific carve-out and will continue to have a carve-out, as now reconfirmed. There are no sanctions that apply to the UK.

[Lord Harrison]

My Lords, I inform the Minister that Sub-Committee A of your Lordships’ European Union Select Committee, which I have the pleasure of chairing, is currently undertaking an examination of proposed EU economic governance in the light of the Van Rompuy report and the earlier Commission statement. We hope to report in the first quarter of next year. Will the Minister elaborate on the United Kingdom’s position on treaty change? I listened carefully to what he said, which was that he would not entertain any such change where the Government believed that the United Kingdom’s independence was compromised in any way. If a treaty change were proposed that would strengthen the eurozone—a common ideal across the House—would the Government entertain it?

[Lord Sassoon]

My Lords, if anybody proposes a treaty change that has not yet been proposed, it will be considered on its merits. To be completely clear, any proposed treaty change that has any suggestion of transferring powers from the UK to Europe will be subject to a referendum. If something is proposed, we will look at it on its merits and respond accordingly.