Industrial Strategy: Engagement

Lord Forsyth of Drumlean Excerpts

Monday 27th February 2017 Lords Chamber

[Lord Prior of Brampton]

Share ownership can be a part of this but engagement of people in their workplace goes much deeper and is much more of a day-to-day issue than share ownership or board directors and the like. John Lewis and the mutuals have demonstrated the value of mutuality and ownership, so this does have a part to play. However, it is only part of a much bigger picture.

[Lord Forsyth of Drumlean (Con)]

My Lords, I declare my interest as chairman of a public company. Will my noble friend look at the widespread practice among fund managers and large shareholders of contracting out their responsibilities for corporate governance to outside organisations, and encourage them to engage directly with companies involved in the matters which concern the Government, such as executive pay and other matters?

[Lord Prior of Brampton]

The noble Lord may have seen the letter that BlackRock sent round to all FTSE 100 companies in which it talked very strongly about the need for long-term sustainable improvements when considering remuneration. I was pretty staggered to see that between 1998 and 2015 the average take-home pay of a FTSE 100 chief executive has gone up from £1 million to over £4 million. In 1998, that represented 47 times the average salary of an employee, now it is over 128 times. Remuneration is a very serious issue and if we want to live in a fair society, we need to address it.

Brexit: Consumer Rights Policy

Lord Forsyth of Drumlean Excerpts

Thursday 9th February 2017 Lords Chamber

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not think that it is very sad, and a counsel of despair, that with all the expertise in this House and the other place, it is not possible for this Parliament to devise a scheme that will protect the rights of British consumers?

[Lord Prior of Brampton]

My noble friend is right: there are legitimate concerns over such a big change. However, we should be relatively optimistic that we can sort them out in the best interests of British consumers.

Brexit: Single Market and Workers’ Rights

Lord Forsyth of Drumlean Excerpts

Monday 16th January 2017 Lords Chamber

[Lord Prior of Brampton]

My Lords, the Prime Minister has said that, under this Government, workers’ rights will not be eroded and will be not just protected but enhanced. The Government’s commitment is absolutely clear. As we regain sovereignty over these issues it will be up to subsequent Parliaments to make these decisions themselves.

[Lord Forsyth of Drumlean (Con)]

My Lords, it is a sad day when the TUC no longer has faith in the Labour Party, the Liberal Party and this British Parliament to defend the rights of British workers. Is it not the case that British workers enjoy rights far beyond EU requirements, for example in respect of maternity pay?

[Lord Prior of Brampton]

Yes, there are many examples where people who work in the UK have stronger rights than those guaranteed in the EU. Maternity rights are one case and rights to statutory leave are another example.

Hinkley Point C

Lord Forsyth of Drumlean Excerpts

Thursday 15th September 2016 Lords Chamber

[Baroness Neville-Rolfe]

As I explained in the Statement, on the Hinkley project we will, following the changes to the deal, have a veto over change of ownership. The project will also be subject to what everybody agrees is the world-class oversight of the Office for Nuclear Regulation, which can intervene in development, construction and operations, and amend site licences, among other things. That is a very important control. Then we will consult on proposals to establish a legal regime that allows us to consider national security implications in all significant investments in critical infrastructure. Once that becomes law it will apply to major infrastructure in the UK.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend not think that there is a certain irony that after the nation voted to take more control of its own affairs we are asking two foreign Governments to take control of 7% of our future energy requirements? In particular, what actual transfer of risk is happening here, which presumably justifies the very high price that consumers will have to pay for this energy? Is there really a transfer of risk given that this technology is untried? No one has been able to make it work. What is plan B if it turns out that this thing does not work, to maintain energy security for our country? Finally, I very much welcome the emphasis placed on the importance of security and so on, but does the Statement not rather reek of closing the stable door after the horse has bolted?

[Baroness Neville-Rolfe]

As I explained, the risk of construction falls on the consortium. We have a deal at a pre-agreed strike price which will produce a supply of electricity over an estimated 60 years. Everyone in this House this afternoon seems to take too gloomy a view of the prospects of building this facility. We looked at this very carefully over a number of months. Our Chief Scientific Adviser gave us reassurances that learnings have been taken from other nuclear facilities. However, the consumer does not pay a penny until Hinkley generates electricity. The risks are borne by the developer.

Employment: Remuneration

Lord Forsyth of Drumlean Excerpts

Thursday 8th September 2016 Lords Chamber

[Baroness Neville-Rolfe]

I have not yet read the report, although I know that it was discussed in the House and I think it makes a very useful contribution. As I see it, that idea is in the mix of what we will consult on. The underlying objective is to make shareholders exercise much better oversight over company decision-making. The changes that we will be looking at, and indeed prior reforms, have been directed at this objective—some with more success than others.

[Lord Forsyth of Drumlean (Con)]

My Lords, does my noble friend know that many of the big institutions contract out their voting to other organisations at company AGMs? Is not the key to ensuring that remuneration is brought under proper control that those institutional shareholders exercise their rights and that the Government change the rules so that votes on executive pay at shareholder meetings are binding on boards?

[Baroness Neville-Rolfe]

My noble friend makes a very good point about voting. I am glad to say that one of the options we will be looking at is binding votes, for the reasons that he says.