Baroness Scott of Bybrook (Con)

My Lords, I will speak briefly to the amendments in the name of my noble friend Lord Fuller, which all address an important and practical issue: the clear separation of duties between the mayor and the Local Government Pension Scheme. At its heart, this is about avoiding conflicts of interest, as we have heard. Under the Bill, mayors will rightly have a central role in promoting investment opportunities in their regions, championing growth, attracting capital and supporting local economic development. That is an essential part of the devolution agenda. However, we must be equally clear about who is making investment decisions and on whose behalf. Pension funds exist to serve their members and local taxpayers. Their primary duty is fiduciary: to act in the best financial interests of those beneficiaries. There is a distinction here that matters. The mayors may promote opportunities, but they should not be in a position to directly or indirectly influence the allocation of pension fund assets. In simple terms, one body promotes the opportunity and another independently decides whether to write the cheque. As has been noted, there are important differences between funding and financing and between providing the capital and structuring the deal. Both require clarity of responsibility and robust governance. Co-operation between mayors and pension schemes is not only desirable, it is inevitable, but the co-operation must not drift into anything that could be perceived as pressure or direction. We must guard against any blurring of lines. What begins as collaboration must not become, even inadvertently, connivance. These amendments are therefore modest but necessary. They seek to put beyond doubt the separation of roles to protect the integrity of pension decision-making and to give reassurance to local taxpayers and scheme members alike. For those reasons, I support them.