Debate on the Address

My Lords, I add my congratulations to those of previous speakers to the noble Lord, Lord Bilimoria, on his excellent maiden speech. He and I have much in common—not least that we are both immigrants, not least Cambridge and the law, and not least an appreciation of his excellent product. This Queen’s Speech provides the legislative programme for the Government’s tenth year in office. The past ten years have seen major economic changes for this country and throughout the world which have posed significant challenges for business, both big and small. It is a sensible time for us to take stock and to consider the issues facing us. The best law is that which is made by legislators who are always striving to understand the needs of the modern world and balance these against the timeless principles which have served this country well. In their first Queen’s Speech nearly 10 years ago, the challenge facing the Government was how best to create a macroeconomic climate that encouraged stability and sustainable growth. Central to this was, of course, Bank of England independence. The success that this move has had is striking. No letters from the governor of the Bank of England to the Chancellor have been necessary since the current policy has been in place. This indicates a very stable level of inflation. In addition, it was necessary to introduce a sensible regulatory framework. This took some courage because it involved a reduction in government powers, not only in relation to the Bank of England but also—closer to home as far as I was concerned—in relation to the Competition Commission. In my view, these are marks of courageous government. Reducing the powers of government and thereby increasing the freedom to develop a sensible regulatory framework has worked. We have not had the same hurried rush to legislation which has resulted in the Sarbanes-Oxley legislation in the United States. I was in the United States two weeks ago and it was notable that the Sarbanes-Oxley legislation is a major bone of contention between business and legislators. The visit this week of Secretary of State Paulson is significant. No doubt he will be exchanging views with our own Chancellor as to how to regulate with a light touch. Because of the Government’s success and the high levels of successful business in this country, the challenges of the next 10 years will be very different. They will require a number of measures which, I am delighted to see, are addressed in the gracious Speech. The Local Government Bill will no doubt assist greatly in allowing our cities to develop further as economic power houses and business friendly environments. The draft Road Transport Bill will help in developing our transport infrastructure. It will increase powers to create toll roads and give councils more freedom to introduce their own schemes. In safeguarding London’s role as a financial centre, the Exchanges and Clearing Houses Bill will allow the FSA to veto regulatory changes made by UK-recognised investment bodies. It is an important Bill which will enable the encouraging regulatory framework our businesses enjoy at the moment to be maintained, no matter who owns the London Stock Exchange. The Crossrail Bill and the Greater London Authorities Bill will continue the Government’s success in creating a city authority for London, which has contributed to its prosperity and value as a place to live. I welcome the Pensions Bill and the commitment to continued consultation with business ahead of future legislation on private pensions. This will lead to a lasting pensions settlement which provides a coherent framework for business. The noble Lord, Lord Vallance, spoke about climate change. I welcome the Climate Change Bill. The Stern review has been a useful indicator of the economic costs we will endure if we do not grasp the nettle of climate change. There is a good climate of regulation in this country. We need to do more to help it. I welcome the draft Local Better Regulation Office Bill, which will help small businesses with trading standards and environmental health regulations. Taken together, these are sensible measures which further enhance the UK’s enviable reputation as a good country in which to do business, where profitable, well-run businesses are seen as a good thing and profitability is not a dirty word. It is the profitability of our companies which delivers social justice and enables us, through tax and pensions, to achieve even more. We must not get into the same place as the United States in developing an anti-corporate mentality. Sensible measures contained in the gracious Speech will meet the needs of the next 10 years, and I welcome them. There are, however, some areas where I would like to see more. It is important that we develop the education and skills of our people. If we are to compete truly on a global scale, we must not try to compete in those areas where others have greater advantages. Following the words of the noble Lord, Lord Bilimoria, we must encourage an enterprise culture. We must increase ambition and aspiration. In that way, we will improve our performance generally as a nation. We must invest more in our people. We must manage our human capital better. The keynote issues on which we must concentrate in the coming years are free trade, stability, flexibility, education, fairness and assistance with developing the growing nations of the world.