Baroness Penn (Con)

My Lords, my noble friend Lord Younger has asked many of the questions that my Amendments 116A and 130A seek to probe on the rationale for the Government’s timescales in the Bill. They are also intended to shorten those timescales and implement an absolute sunset; I want to be clear to the Minister that I do not think that a deadline by which the maximum asset allocation cannot be raised further is a sunset. I heard what the Minister said in our debate on the previous group about introducing a maximum allocation cap. I am not sure that I really buy into that argument but, if that is the rationale, are the Government really saying that it might take 10 years to work out what the definite figures agreed under the Mansion House Accord are and that that is why they have their timescales in place? Are the Government really saying to those who signed up to the Mansion House Accord—or, indeed, to those who did not—that the figures that could be mandated under this power could go above 10% and 5%? That would make it an even harder power for people to swallow. Further, this could be over by an unlimited amount—not even a variance of maybe up to 15%, but up to any level. The Government have used the argument for the mandation power that it creates certainty for those pension funds but, the more we discuss it, the more uncertainty there seems to be. The figures of 10% and 5% do not seem to be the figures of 10% or 5% any more. Under the Government’s approach, we will get a cap, but maybe in 10 years’ time, while the assets required to be invested under that cap can still change in perpetuity. I used the example at Second Reading of one Government wishing to mandate investment in net zero and the other wishing to mandate investment in defence assets; both are conceivable things that we might see happen in the longer term. The point is that, the longer this power is in place, the greater the risk that it is used not for this Government’s intention but for something else. On the guardrails outside of the primary legislation, which the Minister referred to but rightly did not go into in our debate on the other group, I have a question about one: the requirement to consult. At Second Reading, the Minister said that the Government would be required to consult before using these powers for the first time. I want to check whether this means that they will not be required to consult when amending them subsequently or they will be required to consult each time they bring forward regulations under this power. I had thought that it was the former—consulting each time they used the powers—but, if it is not, and it is only the first time when they are used, I would be grateful if the Minister could clarify that point.