Company Law Reform Bill [Lords]


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Margaret Hodge: Does the hon. Gentleman disagree with the comments made on Second Reading by the hon. Member for Rutland and Melton, who has now joined our proceedings? He said:
“We broadly support the Bill. As it has nearly 1,000 clauses, it is pleasing that we have to disagree with only a handful of them.”—[Official Report, 6 June 2006; Vol. 447, c. 136.]
Does the hon. Member for Reigate disagree with that statement? If he does, perhaps he will say where.
Mr. Jonathan Djanogly (Huntingdon) (Con): Will the Minister give way?
Margaret Hodge: I cannot give way during an intervention.
If the hon. Member for Reigate does not disagree, does he accept that the time that we have given for consideration in Committee is sufficient? Does he further agree that when we discussed the purpose of going with the further consolidation of clauses into the Bill, it was at the request of Members from all parties during consideration in the House of Lords? Does he also agree that he appears to have changed his mind on that and that we are talking about pure consolidation?
Mr. Blunt: With the greatest respect, the Minister is confusing her roles as a parliamentary pugilist and a legislator. My hon. Friend the Member for Rutland and Melton was saying on Second Reading that there are parts of the Bill with which we disagree in principle, although they represent a narrow element. However, we have a duty as legislators to get this Bill technically correct.
We might have no particular arguments over principle, but the Bill contains 925 clauses and that might grow to about 1,400. Some 181 amendments and 22 new clauses had been tabled for consideration by the beginning of the sitting, many of which are technical and based on advice.
My hon. Friend the Member for Huntingdon (Mr. Djanogly), who appears to want to intervene, is leading for the Conservatives on the substance of the Bill and is being advised by a large number of experts in the City whose profession we are dealing with. This is their opportunity to have arguments tested in public debate in a Committee of the House of Commons and to convince the Minister of the merits of those largely technical arguments and of the technical changes that will come about during our proceedings. Those proceedings are being curtailed, which reduces our opportunity to achieve that objective as legislators.
Mr. Djanogly: The Minister said that my hon. Friend the Member for Rutland and Melton mentioned that we agree with all but a handful of clauses. That is correct, but the Minister is being disingenuous in so far as that does not mean that we do not want to amend many of the clauses with which we agree. If she examines the selection list, which is sitting in front of her, she will see that we have tabled more than 100 amendments to the first 100 clauses.
Mr. Blunt: I am grateful to my hon. Friend. Indeed, I am yet to mention the number of Government amendments that have been tabled. We are doing precisely the job that the Government are doing: taking the opportunity of consideration in Committee to make changes to the Bill.
We are in receipt of advice, as the Minister and her colleagues in the Department are, and we are trying to improve the legislation. We have the opportunity to take longer to do that and to produce a better Bill, but the Government are not giving us the opportunity under this motion.
Margaret Hodge: Perhaps it would be helpful if I simply said that many Government amendments arise from issues that were debated in another place. In some cases, we gave undertakings to revisit the wording of particular clauses, which is what we are doing now, so we are meeting them. In others, the amendments are consequential and arise from issues that, again, were discussed in another place. Tidying up needs to be done throughout the Bill. That is from where most Government amendments originate. During the sitting, I shall do a calculation on those.
A large number of the amendments tabled for consideration have already been fully discussed in another place. They are technical, not of substance. A technical response was given by us in another place and does not need necessarily to be given again today, although I shall do so if that is required. If the Opposition are concerned that there is insufficient time for proper consideration of issues that are important to them in getting the legislation right, they ought to focus their amendments on those matters.
10.15 am
Mr. Blunt: Sitting underneath the assumptions of that argument, there is a rather dreadful arrogance about the role of the House of Commons and the duty of the Committee. It is not only the duty of the Government to come forward. Otherwise, why are we here?
Is no one here expected to do anything or to make any contribution to the legislative process? I regret to say that that is the way that the Government have treated the House of Commons. Programming is a classic example of that, curtailing as it does the ability of the House of Commons to produce better legislation. A careful selection has been made of hon. Members to sit on our side of the Committee, who are able to make a contribution because of their experience.
My hon. Friend the Member for Putney (Justine Greening), due to her accountancy experience, will be invited to speak for Her Majesty’s Opposition from the Front Bench on those sections that relate to accountancy. My hon. Friend the Member for Grantham and Stamford (Mr. Davies) is an experienced company director who can speak with authority on those elements of the Bill. My hon. Friends the Members for Clwyd, South (Mr. Jones) and for North-West Cambridgeshire (Mr. Vara) are solicitors with considerable experience in corporate law. We have put on the Committee people with the ability to make a contribution.
My hon. Friends the Members for Huntingdon and for Hornchurch (James Brokenshire) have been in receipt of a considerable amount of professional advice in their preparation for leading for Her Majesty’s Opposition on the Bill. That has been technical, with a team of more than 30 solicitors being brought in to advise them. Similarly sized teams were advising my noble Friends in the other place.
We are taking our duties seriously in trying to produce the best legislation so as to enable the wealth creation of the UK not to be prejudiced by us getting it wrong in the House of Commons. By tabling the programme motion and insisting on the timetable of ending consideration on 13 July, the Government are not enabling the House to do its job. That is why we will oppose the motion and invite the Government to think again to give them the time to propose consolidation measures in good order over the summer. The process can take place in October.
Mr. Shailesh Vara (North-West Cambridgeshire) (Con): Thank you for calling me, Mr. Illsley, and I welcome you to the Committee as Chairman.
I want to comment briefly on the Minister’s remarks. While I am sure that my hon. Friend the Member for Rutland and Melton will be delighted that he is being quoted so freely in Committee, the Minister mentioned that he had said that we disagree with only a few clauses. However, she must appreciate that the Bill’s purpose is to minimise litigation and maximise efficacy for the practising of company law.
The Minister should appreciate that even one word, if not properly considered, could lead to litigation costing hundreds of millions of pounds. It is disingenuous to dismiss the argument by referring to our disagreement with only a handful of clauses when one word alone, if not properly thought through, could make life miserable and lucrative for lawyers, but not for business people.
The Parliamentary Under-Secretary of State for Constitutional Affairs (Vera Baird): First, I deplore the use of the word “disingenuous”, which has been used twice about my right hon. Friend the Minister for Industry and the Regions. It ought not to be used. It has been used by the hon. Gentleman—I am grateful to him for giving way—and by the hon. Member for Huntingdon. It is not necessary to use language of that kind. It is not correct to use it either.
My right hon. Friend has made it clear that in her view the Opposition are repeating, tediously and unnecessarily, technical amendments that have already been considered in the Lords and dealt with, and which met with huge agreement from the Government. If that is the case, what are the Opposition playing at?
There is an unhealthy presumption—if I may say so, Sir—that everything that has been submitted by everyone else is to be taken as read and that this is simply to be an exercise in submitting things.
Margaret Hodge: I have just made a calculation that will interest the Committee. Two thirds of the Opposition amendments tabled for part 2—I shall come back with calculations on the other parts—are identical or very similar to those that were discussed in huge detail in another place. The hon. Gentleman suggests that somehow all the stakeholders and experts whom we have consulted since 1998 in formulating the clauses have suddenly appeared on the scene in the past week when Opposition Members in the House of Commons started to take an interest in the Bill. That is simply wrong.
This has been an incredibly inclusive process, and there has been much consensus among all the experts who have an interest in the Bill. Are Opposition Members sincerely concerned with improving the Bill? We are sitting here at 10.21, after almost two thirds of this morning’s sitting, discussing process, not content. That does not appear to me to be the best way—
Mr. Vara: Intervention or speech?
Margaret Hodge: No. This does not appear to me to be the best way to use parliamentary time, which is always precious.
Mr. Vara: I am most grateful to the Minister for reminding us that so many outside bodies have contributed to the Bill. Indeed, it is because of that that the Government have regularly changed their mind, clause by clause. It is ironic that the Government, who feel that they have a right to change their mind, are not willing to give Her Majesty’s Opposition time properly to consider the outside views and make their contribution.
Lorely Burt (Solihull) (LD): May I register the disappointment of my party over the lack of change to the programme motion? The irony has not been lost on the Liberal Democrats that the nominal change to the deadline—one hour—happens to be exactly the time that we are spending on reorganising the programme motion. The Government say that they will be conciliatory, but it does not feel that way on this side of the Committee.
Margaret Hodge: Will the hon. Lady give way?
Mr. Vara: Not for speeches.
Margaret Hodge: Certainly not for speeches. I am somewhat surprised by the hon. Lady’s intervention, because at the conciliatory original meeting about programming, she agreed with the Government on the motion that we put before the Committee.
Lorely Burt: I am grateful to the Minister for her elucidation, but the Bill has been more than seven years in the preparation. When an opportunity manifested itself to implement the suggestion of my hon. Friend the Member for Kingston and Surbiton to increase the time for discussion by four days, given seven years of preparation and the enormous amount of time that has already been taken up in another place, that did not seem to be too much to ask of the Government, who said that they would try to accommodate us.
Kitty Ussher (Burnley) (Lab): If that is the case, why did the hon. Lady vote for the Government’s programme motion?
The Chairman: Order. The Committee has no agreement on when it will sit next. Using my powers as Chairman and in accordance with precedent, I call the Committee to meet next at 10 o’clock on Tuesday 20 June.
It being twenty-five minutes past Ten o’clock, The Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till Tuesday 20 June at Ten o’clock.
 
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Prepared 16 June 2006