Lord Fuller (Con)

I will speak briefly to this group, and I am grateful to the Minister for engaging with me on the narrow point. These three amendments, which are mostly the same, are supportive of what the Government are trying to achieve. In Clause 42, there is a requirement for mayors to co-operate with the LGPS to finance infrastructure. I have no problem with that—in fact, it is to be welcomed. My amendments are based on the simple truth that if they are to grow the economy, mayors need to have a complete understanding of how money is raised, deals are put together and bright ideas are turned into investible opportunities. In essence, mayors need to understand the difference between funding and financing. Funding is writing the cheque; financing is putting that deal together. Of course, they are completely different disciplines. My amendments simply substitute “develop” with “promote”. This recognises that it is the role of mayors to produce investible opportunities but not necessarily that of the LGPS to buy them. This is not purely semantics; it is a simple word change that stops accusations of a degree of connivance or collusion between the mayor and funds, which could lead to conflicts of interest. This group ensures that there is a proper separation of duties between the mayor and the funds. The word “promote” helps everybody be clear: it is the mayor’s job to punt the opportunity, but the scheme is not necessarily mandated to accept it. Promotion makes it clear that the mayor needs to work harder to be clearer about what the market and investors require, to turn that idea into a proposition. In so doing, the important point is that this encourages the wider uptake of good opportunities, not just by the home fund but by the wider pool of investments in the LGPS and beyond. There would be fewer accusations of connivance, a greater clarity of roles, greater professionalism and understanding of how financing works, and a better separation of duties, which would allow other pools to jump on the bandwagon of good ideas, rather than just being a closed shop. Words matter. This substitution would strengthen the clause and make actual investments more likely. Two minutes—I beg to move.