Lord Sheikh

My Lords, I welcome the Bill as there is a general consensus that greater measures are needed to assist in the fight against global terrorism. Terrorism is one of the greatest threats that we face in the 21st century. This legislation will make an important contribution to our national security by helping to ensure that funds are not used to perpetrate terrorist activities. I also welcome the Government’s strategic defence and security review, as stated in the coalition agreement. We have a duty to our citizens and Armed Forces to shoulder the collective task of formulating a robust security strategy for an increasingly dangerous world. I am confident that this legislation will contribute to achieving this goal.

In overcoming the threat of terrorism, we need clear understanding and constant vigilance. I congratulate the Government on the recent announcement of a successful conclusion to negotiations between the European Union and the United States Treasury on the exchange of information on terrorist finance tracking. One part of frustrating the evil intentions of those who inflict terrorism across the world is to starve them of resources-and this lies at the core of the Bill.

It is timely that we should be considering our approach to the terrorist threat just a few weeks after the fifth anniversary of the 7/7 suicide bombing attacks in London, which resulted in the deaths of 52 people. Thankfully, there has been no other major successful terrorist assault in this country since that day. That has not been because the threat has dissipated, and we should not allow complacency to creep into our considerations.

We should not allow a debate to take place on terrorism-and counterterrorism-without spending a moment reflecting on some of the issues that cause terrorism: alienation, grievance, demonisation, a sense of injustice, whether real or perceived, exclusion and political issues. We cannot expect to overcome the terrorist threat without acknowledging the role that these factors play in motivating the disaffected to move towards violence and terrorist atrocities. We need to examine and find remedies relating to the root causes of extremism and terrorism. Community cohesion and counterterrorism are not the same thing and they should not be confused. They are complementary and there are links. We must therefore regard the two issues in the appropriate manner.

Similarly, we need to recognise that the threat from terrorists arises from a multitude of different areas and groups. Those who are radicalised with terrorist sympathies are not restricted to one particular group, religion or region. At this stage, I should like to follow up on what the noble Baroness, Lady Hughes of Stretford, said and make the point that nearly all Muslims are law-abiding and good citizens who are against any form of extremism and terrorism. However, I appreciate that there is a problem with a tiny minority of people who do not follow the true principles of Islam. Islam forbids any form of suicide bombing. It is, indeed, a religion of peace. For example, when we greet each other, we say “As salaam alaikum”, which means “The peace of God be upon you”. As a Peer, I have a coat of arms, and on it I have two doves because I want to give the message that Islam is indeed a religion of peace.

Clause 1 of the Bill defines individuals who have been labelled “designated persons” by the Treasury. This clause is also of extreme importance in ensuring that we fulfil our obligations in implementing United Nations Security Council Resolution 1373. This provision ensures that asset-freezing measures are applied to groups and individuals who engage in or financially support terrorist activities.

Designated persons can be defined only by competent authorities. However, I feel it is important that all competent authorities in United Nations member states act in harmony to make sure that the necessary procedures are followed to combat terrorism on a global basis. It is important to achieve a degree of consistency in tackling cross-border terrorism. I should be grateful if the Minister could advise your Lordships’ House whether bodies in addition to the Treasury will gain status as competent authorities in the near future for the purposes of this legislation.

Clause 2 covers the Treasury’s power to designate persons. This includes instances when the Treasury has reasonable grounds to suspect an individual or group of engaging in terrorist activities. I am concerned by this requirement, as Resolution 1373 expressly states that the assets of those who commit, or attempt to commit, acts of terrorism should be frozen. The resolution does not extend to those whom competent authorities suspect of terrorist activity. Therefore, the burden of proof is not satisfied under this clause.

Furthermore, we must be mindful that whatever we enact could not be construed as a breach of Article 8 of the European Convention on Human Rights, which states that all individuals are entitled to respect for their family and private life in accordance with the law.

Our criminal justice system is based on the principle that individuals are innocent until proven guilty. Any attempt to interfere with this principle would be to the detriment of our society. Even if a person is proven innocent, there may be a possibility that the person will be branded a terrorist. This could be damaging to a person’s future prospects. Is there any scope for awarding compensation to those who have had their assets frozen prior to acquittal?

Clause 4 states that a designation issued by the Treasury expires within one year unless renewed. The clause gives the Treasury authority to renew a designation at any time before it expires if there are reasonable grounds for doing so. I fear that this clause may encounter the same difficulties as Clause 2. The clause states that a designation may be renewed more than once. However, there is no specification as to how many times a designation can be renewed. I would welcome greater clarification as to the powers of the Treasury concerning the duration. If these powers are wrongly used by those in authority, it could have long-lasting and devastating consequences for individuals and the integrity of this department.

Clause 20 makes reference to the need for co-operation with internal and international investigations. I strongly support this clause; it is in our best interests to work with our European and wider partners to achieve this aim. Foreign policy and national security are intertwined and should be treated as such.

The success of our foreign policy will work to promote our national interests and security both at home and abroad. The question of national security covers a multitude of areas, which is why a narrow approach to this issue has a limited chance of success. Co-operation with our neighbours in the European Union, our partners in the Commonwealth, transatlantic allies and other international organisations is vital to ensuring that we successfully combat terrorism. This threat is not just limited to one continent and therefore requires a multilateral solution. Counterterrorism is dependent on international co-operation, and a vigilance to identify the emerging and constantly altering threats to our security.

I welcome Clauses 33 and 34 as they clearly define the meaning of “funds”, “economic resources” and “financial services”. These are key terms for the purposes of the prohibition stated in Clauses 8 and 9. These two clauses make it an offence for funds and financial services to be made available to designated persons.

At this stage, I would like to declare an interest as I am the chairman of an organisation which provides insurances and financial services. I feel that companies which offer financial services as stated in this clause should be given the appropriate assistance in understanding the requirements of this legislation.

I would be grateful if the Minister could inform your Lordships’ House as to whether any guidance and information will be made available to companies which provide financial services. I wholeheartedly endorse the principles that these measures are seeking to embody in law. We need to maintain our defences and be vigilant in tackling the threat posed by terrorism. We should be robust in seeking to prevent those who cause actual terrorism drawing on the resources that they need to inflict the injury of their design.

I am, however, of the opinion that we must ensure that the provisions of the Bill do not compromise the human rights of law-abiding citizens. This country has a proud history of promoting democratic values around the world and in our local communities. Although we are in a heightened state of security in terms of domestic and external threats, legislation must not be allowed to compromise our civil liberties. It is important to strike a balance to ensure that no ethnic or social group feels as though it is the constant target of discrimination. We must co-operate internationally and focus on marginalising those who idolise or endorse terrorism. We are bound to ensure that we approach the matter in a proportionate, measured and effective manner. It is only through detailed scrutiny that this House can content itself that the Bill meets those tests.

Lord Sheikh: My Lords, I note that the Government will introduce interim guidelines and that a review of counterterrorism legislation will be undertaken. I have spoken in your Lordships’ House about the use of Section 44 powers and the fact that a very high number of people from ethnic minority communities have been stopped and searched. Can the Minister assure me that under the interim powers, people from ethnic minority backgrounds will not be targeted? Can this point be looked into when the review of counterterrorism legislation is undertaken? Can the Minister also clarify why it is necessary for Section 44 powers to continue to be applied to searches of vehicles?

Baroness Neville-Jones (Minister of State, Home Office): Let me take my noble friend’s second point first. Section 43 does not contain any powers to stop vehicles. I think that the House will understand that it would not be very sensible not to have any powers at all to stop vehicles. In many respects, the greater danger may lie in someone, or persons, trying to do something in a vehicle. So it is necessary to be able to stop vehicles. Therefore, Section 44, as a matter of law, has to remain available for vehicles. In practice, however, it will be interpreted by using reasonable suspicion, as if it were a Section 43 power. I very much take the noble Lord’s point about the need for there not to be discrimination and disproportionality in the stopping of different groups in society. I think that that is a concern to the whole House, and it is being watched very carefully.

My Lords, I thank the noble Lord, Lord Chidgey, for securing this debate. The noble Lord is well versed in the complexity of the challenges facing this vast region of Africa. It includes two countries that are close to my heart: Kenya, the place of my birth, and Uganda, the country where I spent my formative years. We need to recognise how the continent of Africa has changed in recent years. As recently as 1989, 29 African countries were governed under a form of single-party constitution or military rule. By 1994, not a single one-party state remained, and by 1995, most countries in the continent had met the initial demand of multi-party democracy and embraced the idea of holding free, fair and competitive elections.

The road has not been easy, and some countries have faced truly significant challenges, but overall there is a recognised trend of improvement in governance and engagement. I support the use of the development aid budget to provide budgetary support for the African Union’s Peace Fund. The Secretary of State for International Development is correct to initiate a bilateral aid review to ensure that we are spending our resources in the most productive ways and ensuring that there is transparency, clear objectives and measurable success. We need to ensure that our international aid is used effectively through aid transparency and security. We need also to ensure that no part of any aid falls into the wrong hands. Can the Minister confirm that this is the position?

We cannot have an effective debate on developments in Africa without recognising the terrible poverty that exists. Twelve out of the 13 countries with the highest mortality ratio are to be found in Africa. Two-thirds of HIV-positive adults and 90 per cent of HIV-positive children live in Africa, and life expectancy levels are terribly low. Population growth in Africa is relatively high, and that poses challenges to tackling post-conflict scenarios. The International Conference on the Great Lakes Region was formed by the United Nations and the African Union in 2008. The main objective of this body is to devise and implement a regional approach to conflict resolution and human rights abuses. The 2006 pact on security, stability and development came into force in 2008. The requirements of the pact include protecting displaced persons, punishing the perpetrators of war crimes, and ending impunity for those who exploit natural resources.

I made reference to the important work of the Kimberley process in my recent speech in your Lordships’ House on Zimbabwe. The progress made recently in forming the East African Community is broadly welcome. The EAC is a common market with the aim of promoting the free movement of labour, money and services in the region. This new economic initiative will increase cross-border employment and trade between Kenya, Burundi, Rwanda, Tanzania and Uganda.

The Democratic Republic of Congo has captured the world’s attention due to the unparalleled suffering of its citizens. Years of political and social unrest have left the DRC ravaged by horrendous levels of poverty. Approximately 5 million people are thought to have lost their lives since the beginning of hostilities in the early 1990s. This figure is truly shocking. The humanitarian crisis in the east of the country shows no signs of abating. In January this year, the United Nations Human Rights Council reported that approximately 2.1 million internally displaced persons are in the eastern DRC alone. I would be grateful if the Minister could inform your Lordships’ House what steps the Government will be taking to ensure that the repatriation of internally displaced persons and refugees is in compliance with international law? The UK is a large donor to the Democratic Republic of Congo. It can be strongly argued that we are not getting a diplomatic return for our funds as there have been limited signs of improvements in the region.

I recently attended a conference on the International Criminal Court in Kampala, Uganda. Uganda has achieved good economic growth and there has been relative peace and stability. Mr Museveni has been the President for more than 20 years and, to a large extent, his presidency has been good for the country. Uganda has made great social and economic progress. Some citizens, however, continue to voice concerns over the lack of transparency in the activities of policy-makers. Oil has now been discovered in Uganda and a production-sharing agreement has been signed between the Ugandan Government and the London Stock Exchange-registered company Tullow Oil. I hope that the oil does not result in practices of corruption and inner conflicts. The revenue can be utilised to deal with poverty, particularly in the north of the country. When I was in Uganda I met our high commissioner. We are a major donor to the country but, as I said previously, our donation should be used effectively.

I welcome the decision to renew the memorandum of understanding between the UK and the Rwandan Government in 2008. It is important for the international community to recognise the progress that has been made in Rwanda since the atrocities of 1994. For example, Rwanda recently earned 67th place in the World Bank Group’s Doing Business report. However, it is also vital to maintain a realistic view of the post-genocide activities of Rwanda, which will hold general elections in August this year.

In 2006, 13 years of civil war in Burundi came to an end. The decision by opposition parties to boycott the presidential election in Burundi on 28 June in protest at corruption and fraud at the local elections held in May is a cause for concern. I would be grateful if the Minister can inform your Lordships’ House as to what recent reports have been received from the Burundian Government. The international community, along with the African Union and the International Conference on the Great Lakes, must place greater efforts on creating successful dialogue between the ruling and opposition parties.

The situation in Kenya offers more promise and we are correct to encourage and support the implementation of the national accord agreed by the Kenyan Government following the 2007-08 post-election violence. The promises of an improvement in the constitution to reduce the incentive for violence following “winner takes all” elections, minimising the opportunities for electoral fraud and deterring political violence are essential. I recognise the challenges that wider fraud has created, not least those which led to the suspension of education aid funding earlier in the year. I would welcome the Minister’s update on the Government’s current assessment of the situation.

Access to natural resources has always been an important factor in eastern and central Africa because of environmental threats, changing climate and the growing population. Access to water is one of the most pressing issues for the citizens in this region. The growing tensions over which countries should have access to water from the River Nile have caused friction between countries north and south of the river. This has resulted in the creation of the River Nile Basin co-operative agreement which has been signed by Uganda, Rwanda, Kenya, Ethiopia and Tanzania. The DRC and Burundi are also expected to sign the agreement in the near future. International politics is littered with examples of how access to natural resources can lead to conflict. What plans do Her Majesty’s Government have to monitor this situation effectively?

I would not wish to draw my remarks to a close without reflecting on the role of China in providing investment into the region. The perspective of the Chinese Government is not always favourable to the democratic journey and I am concerned that this region, which is already grappling with the challenges of conflict resolution, should not be the victim of international economic exploitation. There is a strong case that China’s contribution to economic development in Africa is a positive cause for growth, as good trade relations are essential for developing countries, especially those that are seeking to come to terms with a post-conflict scenario. In essence, it is the apparent absence of moral politics that causes me much concern. I hope that the Minister can offer a helpful perspective on this issue.

East and central Africa have come a long way, but much still needs to be done. We should seek to facilitate that and support those countries that are coming to terms with the difficulties of recent decades.

My Lords, this is a most timely and important debate. The world is transforming before our eyes and Britain must be capable of setting its foreign policy in the context of these changes. Over the past 12 months, I have visited East Africa, Russia, Syria, Turkey, the Turkish Republic of Northern Cyprus, Qatar, Kuwait, the UAE, India and Egypt. I went to these countries to speak at international conferences, for humanitarian reasons or to attend important events-and also for commercial purposes. These visits have enabled me to acquire a better understanding of the situation in the various countries, and I have built up some excellent connections with politicians and people of the countries. I have also fostered good relationships with high commissioners and ambassadors of various countries, as well as their diaspora in the UK. We all need to be involved in networking at all stages; we must foster country-to-country as well as people-to- people contacts.

In view of the time constraints, I shall comment only briefly on some salient issues. Last weekend, while the Prime Minister was showing a strong lead in Canada, the Foreign Secretary was spelling out a new approach to foreign policy in an interview for the Sunday Telegraph. He has expanded on that vision today and I commend his analysis. His vision, based not on the historic blocs but on taking a fresh look at the new global dynamics, is most welcome.

I am sure we all feel that we should not only maintain but strengthen our relationship with the United States. I am encouraged by the conciliatory attitudes of the Obama Administration, particularly towards the Muslim world. I commend the importance that the Government attach to India and look forward to an enhanced partnership with India. The importance ascribed to this was demonstrated by the reference in the gracious Speech. We need also to accommodate the development of greater links with other countries with emerging economies. We have seen the rise in economic power of the Gulf states and we welcome the involvement in various companies and organisations in our country, which will strengthen not only economic but political ties with the Arab states. I have previously spoken in your Lordships’ House on the important role that the Commonwealth can play in building strong relationships in various ways, particularly in strengthening political ties and resolving conflicts. I was pleased that the coalition programme included a statement on strengthening the Commonwealth.

I have already stated that I have visited countries including Turkey and the Turkish Republic of Northern Cyprus. I fully support the entry of Turkey into the European Union. We need also to resolve problems in Cyprus. I also feel that we should engage with Turkey and its involvement in resolution of conflicts in surrounding areas, including Iran and Palestine. We cannot afford to ignore the challenges presented to us by the ongoing conflict in Palestine. Recent events can serve only to stiffen our resolve that the only long-term and sustainable solution involves two states, with the achievement of a viable and sovereign Palestinian state alongside a secure Israel. That will be the most acceptable solution.

Last week, I visited Russia to make a keynote speech at an international conference on Islamic finance. Our relations with Russia have deteriorated in recent months and some serious issues remain outstanding. Engaging with Russia is complex. The Government have announced that they will seek to establish a new relationship. I feel that we should give that serious consideration.

About three weeks ago, I attended and spoke at a conference in Uganda relating to peace, democracy, the rule of law and the maintenance of human rights. We should continue to ensure good governance and seek to bring to book persons who have committed crimes against humanity.

I have watched with alarm the way that relations with Iran have deteriorated, particularly following last year’s presidential elections. We must not forget the important opportunity that the UN presents and Iran needs to engage with the international community. We should wish to have a constructive relationship with Iran, which is a key power in the region. I hope that the Iranian Government will not switch off to the possibilities being held out to them.

I strongly support the coalition pledge to ring-fence the development budget. Not only is it the right decision from a humanitarian perspective, but it shows the world that we are serious as a nation about supporting developing and emerging economies. This will undoubtedly contribute towards reinforcing British influence and prestige in global affairs.

China has witnessed an impressive growth over the past 30 years. Before long, we can probably expect it to be the largest economy in the world. It is a self-confident country with expanding influence, not least in Africa. I welcome the positive engagement that we appear to enjoy with the Chinese Government. Furthermore, we need to harness Chinese influence in confronting and overcoming the challenges of Iran and North Korea.

The new world presents us with a great opportunity and I am delighted that this Government are taking a bold and impressive approach in regard to their foreign policies.

My Lords, I thank the noble Lord, Lord Kirkwood of Kirkhope, for securing this important debate. Previous Governments have tried to tackle this issue with the best of intentions. However, the complexity and scope of this problem have often meant that past strategies have not been successful in addressing this matter. I intend to focus my contribution primarily on poverty among children and the present condition of adult poverty. I care about issues relating to poverty, and the charity which I chair and totally fund provides help and assistance wherever it can.

I welcome the Government’s pledge to maintain the goal of ending child poverty in the UK by 2020, as stated in the coalition agreement. It is widely believed that children often inherit poverty from their parents. Therefore, adult poverty and its causes are of equal importance in successfully addressing child poverty. At present, 5 million adults are illiterate and 17 million struggle with basic literacy. A significant number are parents to some of the poorest children in our communities. Children and young people who live in households where adults do not engage in any form of employment are not only the most deprived in our society but are most likely to follow the same path once they leave full-time compulsory education. The generational cycle of unemployment is a key factor in the rising levels of welfare dependency and poverty in our communities. A significant number of these parents who are in employment are typically in receipt of low incomes. The incomes of the poorest 20 per cent of families have consistently fallen every year since 2004. This situation has contributed to the rising level of deprivation in our society and, most unfortunately, it has removed the incentive for those on low incomes to remain in employment.

Poverty is a complex issue. A multifaceted approach to tackling this problem is necessary, as divergent components add to this injustice. I welcome the Government’s increased emphasis on how the merits of localism can bring about the change that is so desperately needed in our communities. Local authorities, agencies and community groups have the potential to play a vital role in ensuring that individuals and the most vulnerable members of society receive the support that they need. It is only fair that such initiatives should have access to adequate training and resources to enable them to continue to fulfil these duties.

Greater emphasis is required on tackling poverty among the ethnic minority communities. For example, levels of child poverty are higher among the black and Asian communities, at 31 per cent and 42 per cent respectively, compared with their white counterparts, among whom the level stands at 20 per cent.

There is a link between family breakdown and child poverty. Research suggests that children from separated families are 75 per cent more likely to fail academically, 70 per cent more likely to engage in drug abuse and 35 per cent more likely to experience long-term unemployment and to become reliant on state benefits. Does the Minister agree that recognising this pattern may result in reducing the number of children who live in poverty?

Research has proved that child poverty is less likely to be a factor in households where one or both parents engage in some sort of paid employment. It is therefore in the best interests of our young people for the Government to create an effective strategy to support families with children and to identify those who are at risk of losing their jobs. The State of the Nation Report reveals that 1.4 million people have been in receipt of out-of-work benefits for the overwhelming majority of the past 10 years. These figures are compounded by research from the Office for National Statistics that shows a rise in the number of unemployed people by 53,000. That suggests that the number of jobless people is at its highest since 1994.

I strongly welcome plans for the welfare reform Bill as announced in Her Majesty’s gracious Speech, with the intention of simplifying the benefits system in order to improve incentives to work. As an employer, I support proposals to provide work incentives and to get 5 million-plus people into work and out of poverty. Poverty among individuals of working age now stands at its highest level since 1961. I also await the findings of the independent review on poverty in the United Kingdom, which are scheduled for release before the end of this year.

It is worth touching briefly on some of the challenges that face our ageing population. Pensioner poverty is most prevalent among female pensioners. I welcome the 30-year rule relating to the qualifying period for the full state pension, which now applies to both genders. This will help to alleviate poverty among women, who generally live longer than men.

Studies by the Leonard Cheshire Disability charity reveal that disabled people are twice as likely to live in poverty as able-bodied individuals. I am confident that noble Lords will all agree that this is a shocking revelation. We have a moral duty to ensure that disabled people have access to a decent standard of living. I should be grateful if the Minister could tell your Lordships what steps the Government will take to address this unacceptable trend.

We are one of the wealthiest and most powerful nations in the world. We can boast membership of the G7 and G8, and also a seat on the United Nations Security Council. Despite these accolades, too many of our citizens are living in poverty. Successfully ending poverty in all areas of society is one of the biggest challenges facing us today. I am particularly concerned about lifting children out of poverty, as the future success of this country is in their hands. Young people who are poor often have low self-esteem, which can lead to a number of undesirable outcomes, including alcohol and narcotic abuse. We cannot afford to waste the potential of our young people. The poorest children are at a competitive disadvantage, especially in education. We need to adopt a bold approach in addressing this inequality. We have both a civic and an economic duty to deal with the prevalence of poverty in our society, and the Government’s proposals to address this matter effectively are indeed encouraging.

My Lords, I thank the noble Lord, Lord St John of Bletso, for securing this debate. Africa is a continent close to my heart. I was born in Kenya and spent my childhood in Uganda. His Excellency the Ambassador of Zimbabwe is in the Chamber, and I welcome him to your Lordships’ House.

About three weeks ago, I was asked by my Chief Whip to attend the sixth Consultative Assembly of Parliamentarians for the International Criminal Court and the Rule of Law, which was held in Uganda. I chaired and spoke in the session where the main speaker was the chief prosecutor of the International Criminal Court. We discussed the situation in Sudan, the Democratic Republic of Congo, Kenya and Uganda.

I am a businessman who cares greatly about humanitarian issues. As a nation, Zimbabwe has fallen short of expectations since gaining independence from the United Kingdom in 1980. Zimbabwe was once a prosperous state. However, civil unrest, which still hinders the nation’s progress, has largely contributed to its unfortunate descent. Democracy and the rule of law have been overlooked in favour of tyranny. The penal system does not always function fairly and there have been many incidences where justice has been lacking. Farms belonging to white citizens have been seized and are being seized as I speak. This brings back memories of the situation when General Amin seized the assets of us, the Asians, in the early 1970s, and there was mayhem in the country until he was removed.

In Zimbabwe, prisons are overcrowded, prisoners are severely undernourished and the lack of adequate sanitation contributes to the spread of disease among inmates. The recent arrest and alleged torture of gay rights activists is wholly unacceptable. The Zimbabwean President Robert Mugabe has described same-gender couples as “lower than dogs and pigs”. Last December, I raised this issue in your Lordships’ House when I referred to a Private Member’s Bill in Uganda that seeks to criminalise same-gender couples. There has also been a well documented case of a couple in Malawi who were sanctioned for that reason. The rampant homophobia in certain African nations is a huge concern for us. Will the Minister tell the House what steps the Government are taking to address this issue in African countries that are members of the Commonwealth?

Although there are many areas where Zimbabwe needs to make swift improvements, it is important to recognise the recent progress made by that nation. The acquittal of Roy Bennett, the treasurer-general of the Movement for Democratic Change, is a testament to developments in the Zimbabwean judicial system. The decision to remove the ban on independent newspapers is a momentous step forward for Zimbabwe: the media have a right to exist without fear of intimidation. This development is all the more significant, as it was made by the new media licensing authority formed by the coalition Government. Following a High Court ruling, the South African Government has been asked to release a report on the disputed 2002 Zimbabwe elections. I welcome this decision, as there were widespread allegations of intimidation and irregularities. It is in the best interests of both nations to address the discrepancies in the statement made by the international observers and the then South African Government.

Zimbabwe’s mineral wealth has the potential to make a significant contribution to the nation’s economic recovery. However, there have been many deaths and human rights abuses at Marange diamond field in particular and at others in the east of the country. What steps will Her Majesty’s Government take to investigate the widespread allegations that profits from the diamond trade are fuelling hostilities in Zimbabwe? In Sierra Leone, the international community witnessed the use of precious minerals in the pursuit of power to devastating effect.

We have a moral duty to ensure that Zimbabwe does not follow this path and be certified by the Kimberley Process to sell diamonds. It has seen a marked recovery in manufacturing, mining, agriculture and tourism. Its economic growth suggests that it is meeting the requirement of the Southern African Development Community to work towards achieving economic liberation, as stated in the Lusaka declaration. It achieved a gross domestic product of 5.9 per cent in 2009, which strongly suggests that the economy is started to show signs of long-term recovery. I welcome the African Union’s efforts to enforce good governance with proposals to sanction heads of state who engage in unconstitutional behaviour. Greater interaction among African nations could contribute to stability and economic growth on the continent.

The result of studies published by the United Nations Economic Commission for Africa, the African Development Bank and the African Union reveals that trade among African nations accounts for just a maximum of 12 per cent. The African Union has a greater role to play in fostering better regional integration. South Africa, as the largest investor on the continent, can play a leading role in ensuring that this becomes a reality.

The Commonwealth, too, can play a prominent role to encourage trade among the member states. I would like plans to be put in place to ensure that this becomes a reality and that active trade is generated between the various countries. It is estimated that every day close to 300 Zimbabwean migrants cross the Limpopo River into South Africa seeking asylum, and there are close to 3 million Zimbabweans in South Africa as a result of the dire social and political situation in Zimbabwe. The high number of Zimbabwean migrants has exerted great pressure on South Africa, which in turn has created social problems that have resulted in violence and death. Constructive dialogue is needed between the Governments of South Africa and Zimbabwe to address this mass migration.

The terms of the global political agreement include requirements that Zimbabwe must produce a new constitution and has a duty to hold democratic elections by next year. It can be argued that this latter requirement can be met only if international observers are allowed to carry out their duties in the absence of bribery or coercion. Although I would like Zimbabwe to gain readmission to the Commonwealth, this should be granted only on the proviso that the ruling coalition can meet the terms of the global political agreement.

Commonwealth countries can be more actively involved in conflict resolution in member states. We all appreciate that the Commonwealth is a unique organisation that values equality, and that the spirit of commandership can be utilised to settle disputes. At present, the Zimbabwean healthcare system is underresourced and underequipped. HIV and AIDS are endemic. Zimbabwe has become one of the most affected countries in the world. Commentators have attributed this to a number of reasons, including a lack of resources and community awareness. The Zimbabwean Government have not shown adequate leadership in addressing prevention and care in tackling the HIV epidemic. What plans do Her Majesty’s Government have to assist Zimbabwe to combat this deadly affliction? The Zimbabwean people have suffered violence and degradation for far too long. It is the duty of regional partners and the international community to ensure that these abuses and impunity for the perpetrators of these abhorrent crimes are brought to an end.

The battle against apartheid in South Africa and the support of neighbouring states given to those involved in the internal struggle for justice was paramount to achieving freedom against oppression. The people of Zimbabwe deserve the same consideration in their quest to lead their lives free from intimidation and oppression. The social and political changes which face this country can be resolved with combined efforts from a democratic Zimbabwean Government and other countries, most notably with help from South Africa. We have historic ties with Zimbabwe and we can play a vital role in achieving the objectives.

My Lords, this Bill covers many areas of importance that have a significant impact on our civil liberties and our fundamental human rights. These are the very principles on which our democracy was founded. I hope that this legislation will make a contribution to tackling the injustices in our society that it highlights.

Clause 1 relates to the amount of information that officers would be required to record under stop and search powers. I commend the Government for proposing that a number of recording requirements should now be either removed or significantly reduced. Some officers have made reference to a target culture that is prevalent in their everyday duties, so I am grateful that this has been given due consideration. I support measures to reduce bureaucracy and therefore hope that this section significantly reduces the length of the stop and search documentation.

Staffordshire Police successfully reduced the length of administrative time spent on recording information. There is no reason why this good practice cannot be implemented in other police authorities. I am concerned at the stop and search activities undertaken by the police for purposes that are not related to terrorism. I have previously spoken about this issue in your Lordships’ House. Since 1997-8, black people have been almost eight times more likely to be stopped and Asian people are twice as likely to be stopped by the police in comparison with their white counterparts. This situation must be addressed as a matter of urgency.

It is important for the police to retain the respect and confidence of minority groups, which can prove vital in solving crimes and gathering intelligence. Sections 44 and 45 of the Terrorism Act 2000 authorise police to stop and search individuals in the absence of reasonable suspicion. I fear that this situation could have disastrous consequences in all our communities. In fact, only 0.6 per cent of the people stopped under Section 44 powers in the second quarter of 2008 were subsequently arrested. The European Court of Human Rights has also raised concerns about the use of stop and search powers under Sections 44 and 45, stating that they should be used in a proportionate manner.

Section 60 of the Criminal Justice and Public Order Act 1994 also does not require police officers to have reasonable suspicion about an individual before they carry out a stop and search operation. The latest figures suggest that 25,294 searches under current legislation were carried out last year in the London Borough of Newham. I was in the area last Saturday and addressed a gathering where there were people of Sri Lankan and Bangladeshi extraction and I spoke to some of them individually. Newham also happens to have one of the largest percentages of ethnic minorities in the country. The activities of the police may send a poor message and possibly breed resentment among the ethnic minorities. Therefore, powers under Sections 44 and 45 of the Terrorism Act and Section 60 of the Criminal Justice and Public Order Act 1994 need further examination and reappraisal.

Clause 14 concerns the retention and use of DNA samples. DNA technology is of high importance in detecting and preventing crime. Making use of this system is a question of finding the right balance between applying the law and not compromising the dignity and rights of individuals. I do not dispute the retention of the DNA of guilty individuals. However, I am concerned about the DNA of innocent people. A transparent and consistent approach to the removal of innocent people’s DNA from the database would be most welcome. The current system may cause concern among certain members of our society. For example, 77 per cent of people on the DNA database are black youths, which is disproportionate to the number of convictions brought against this group.

Some police forces refuse to remove DNA samples even when a person is declared innocent once a case has been closed. Research has revealed that only 22 per cent of requests for the removal of DNA samples are granted. Certain police forces agree with the majority of requests, but a large proportion do not. There needs to be consistency and clarity among the processes undertaken in all 43 forces, as the current figures give rise to a postcode lottery. By October 2009, over 5 million DNA samples were on the database. This situation is unnecessary and has rightly drawn criticism from many circles. There is evidence to suggest that less than 1 per cent of crimes are solved due to the DNA database. I would be grateful if the Minister could explain to your Lordships’ House why the DNA database has continued to increase while the number of crimes for which a DNA match is available has continued to decline.

The Bill requires all DNA samples to be destroyed after six years. I would like to see the Scottish system adopted, whereby the DNA of innocent people is not retained at all. I am encouraged by the ruling by the European Court of Human Rights that it is illegal to store one’s DNA indefinitely. The court stated that our DNA database has,

“a blanket and indiscriminate nature”.

That is a criticism of the present system by an institution of great stature. The court also ruled in 2008 that the retention of DNA samples belonging to individuals who had not been convicted of any crime was unlawful and unnecessary in a democratic society.

I welcome Clause 24 and subsequent clauses, as they introduce measures to tackle domestic violence and reinforce the protection of victims after a suspected offence. The subject of domestic violence is something on which I feel strongly and about which I have previously spoken in your Lordships’ House. The intentions of the Government are highly admirable on this issue, but I am concerned as to how domestic violence protection notices and orders will work in practice. It is important that they are not used as substitutes for pursuing proper sanctions in the courts against perpetrators of domestic violence. More police officers should be encouraged to prosecute perpetrators of domestic violence, even in the absence of the victims’ testimony, by reasonable use of circumstantial or medical evidence relating to the offence. Research suggests that approximately 3 million British women are victims of domestic abuse each year. Some 14 per cent of violent offences involve domestic violence. The unfortunate reality is that the actual figure is inevitably higher, as a number of victims do not come forward to report such abuses.

The physical and psychological trauma suffered as a result of domestic violence should be assessed immediately after victims are identified. May I ask the Minister what extra assistance will be given to children who have witnessed domestic abuse? Domestic violence is prevalent in all communities and all classes of people. It is an abhorrent practice, which causes untold harm to the victims and their families.

At this juncture I should like to declare an interest. I am the chairman of an insurance broking organisation that has provided specialist insurance to the security industry over many years. My company has acted as insurance brokers to the British Security Industry Association, as well as to the International Professional Security Association. The security industry performs a valuable service and is now very much part of the extended police family.

I have always believed in maintaining and strengthening standards in the security industry and have applied strict criteria to the acceptance of security companies and personnel under our insurance scheme. We welcomed the enactment of the Private Security Industry Act 2001 and the formation of the Security Industry Authority. I welcome Clauses 42 and 43, which amend and extend the Private Security Industry Act 2001 and will introduce a licence requirement for businesses carrying out vehicle immobilisation or restriction and removal of vehicles.

Clause 43 proposes that the approved contractors scheme under Section 15 of the 2001 Act be extended to those persons who carry out in-house security activities. Certain organisations have in-house security arrangements and this proposal will ensure parity with companies providing security under contract. I welcome the establishment of an independent tribunal, or adjudication system, for release fees applied by wheel-clamping companies, as some motorists may feel that they have been badly treated in this regard. At present, the approved contractors scheme, which is supervised and managed by the Security Industry Authority, is voluntary, but I would like to see this scheme become mandatory for all security companies, as that will further regulate the security industry.

I support Clause 47 and subsequent clauses relating to compensation for victims of overseas terrorism. I spoke in your Lordships’ House when the noble Lord, Lord Brennan, introduced his Bill. I see that he is not in his place, but I appreciate his perseverance.

We must defend the civil liberties and values that are vital to our society. I am particularly concerned about the collection of DNA samples and the use of stop and search powers in relation to ethnic minorities. The current state of affairs does not bode well for community cohesion. The situation in Newham shows that the facts speak for themselves. It is important to ensure that no group feels as though it is the constant target of discrimination.

Although I welcome any provisions to address domestic violence, I feel that the Bill must gain more clarity. I fear that the Bill is not adequately far-reaching in its present state to have a pivotal impact. I sincerely hope that it will be strengthened in Committee.

I thank my noble friend Lord MacGregor for securing this timely debate. At present, we have one of the largest budget deficits in the developed world. I am deeply concerned about the state of British finances and the impact of the national deficit on our GDP. Government debt currently stands at more than 50 per cent of GDP, and the deficit this year will be £167 billion, which is a record high. According to the Government’s own projections, they will be borrowing £734 billion over the next six years, taking our national debt to £1.3 trillion. The level of national debt has risen so drastically that next year we will spend more on debt interest than on education. These figures are extremely worrying.

We need to look at how this dire situation came about. The present crisis came to light because the banks were reckless in their lending and the regulatory authorities failed in their duty to ensure that proper practices were being undertaken. The situation was compounded by the fact that the Government had borrowed excessive amounts, no adequate controls were exercised on spending and there has been a considerable wastage of the country’s resources. Furthermore, the Government failed to take appropriate actions to generate revenue in different channels. With regard to expenditure, in my own business operations I have always believed that my expense ratio should not exceed an acceptable percentage of the revenue. Now that we are in a state of crisis, we need a clear plan to steer us out of this unfavourable situation and put us on a path to recovery.

The glaring failure of financial regulation must be adequately addressed, to the extent where a similar bailout by taxpayers of institutions becomes a distant possibility. I am in favour of plans to give the Bank of England greater responsibility concerning financial regulation. The economic downturn exposed the failure of the current system. We should seek international agreement on banking reform and the application of levies, if need be on a limited national basis. We now have a lower credit rating than other highly industrialised countries such as Germany and USA. We need therefore to safeguard Britain’s credit rating with a credible plan to eliminate a large part of the structural deficit.

At this juncture, I declare that I am the chairman of an insurance broking and financial services organisation. We need to maintain and strengthen our role in promoting Islamic finance, which is based on mutuality, ethical behaviour, transparency and the acquisition of assets which give it more stability. Growth in the Islamic banking sector globally is nearly 30 per cent per annum. Therefore, there are further opportunities for our country’s involvement. Had the financial institutions undertaken a greater volume of Islamic products, the financial problems we are facing would probably have been less severe. We must, of course, promote our financial services industry, but it is also imperative that we manufacture and export specialist goods such as precision machinery and pharmaceutical products. We have the expertise and resources to produce and export such goods. We need to have a balanced economy and encourage ideas which will further promote our manufacturing sector.

A large number of opportunities are presented by the improvement in the standard of living in countries such as India and China. We should be increasing our exports of high-value goods and financial services to these millions of potential new customers. It is important that our future economic strategy recognises the importance of small businesses, entrepreneurs and innovation to our recovery. Small and medium-sized companies play a vital role in job creation; it is therefore essential that those enterprises are not burdened by excessive bureaucracy. Cutting waste and reducing the layers of bureaucracy in our public services is vital to increasing efficiency in our industries.

The 1 per cent increase in employers’ national insurance contributions will impact small and medium-sized businesses the most. The national insurance increase is estimated by the Federation of Small Businesses to cost 57,000 jobs. Furthermore, it is imperative that the banks increase their lending to small and medium-sized enterprises. The increase of tax to 50p will affect businesses as well as entrepreneurs who generate wealth for the country and create jobs. The tax is therefore counterproductive.

The level of youth unemployment is now one of the highest in Europe. Young people have the potential to make a vital contribution to our economy and society. It is the responsibility of those in government and commerce to work together to develop a strategy that will help our young people to weather the economic storm. Independent scrutiny of our fiscal policy is vital to repairing the fragile economy and building trust among the public, a large number of whom contributed to the recent bank bailouts. For this reason, I support the proposal of the shadow Chancellor to create an independent office for budget responsibility if the Conservative Party forms the next Government.

The Budget delivered by the Chancellor of the Exchequer was in fact a long political statement that lacked substance and constructive thinking. The Chancellor did not give us enough indication about what his party will do to tackle the present crisis. The Government wasted the years when we had economic prosperity and failed to make hay when the sun was shining. We need to rescue the economy from the dire state it is in by implementing the eight clear and transparent benchmarks suggested by the Conservative Party. In addition, it is imperative that we take remedial action immediately, rather than delay taking the strong medicine which will cure our illnesses.

The plan put forward by the Conservative Party to right 13 years of wrongs committed by Labour is one that will have Britain up and running again and will maintain our position as one of the leading nations in the world.

Extracts relating to responses taken from speeches by other Peers including the Minister are listed below:

Lord Newby (Liberal Democrat Spokesperson for the Treasury):

For the future, it seems that there are two linked questions. How quickly should we reduce the deficit? More important, what kind of economy do we want to see in the future? We should start by recognising that the balance of the world economy is shifting rapidly eastward. I agree strongly with the comments of both the noble Baroness, Lady Valentine, and the noble Lord, Lord Sheikh, about this, not least what the noble Lord said about the need to develop the Islamic finance capacity in London.

Baroness Noakes (Shadow Minister for the Treasury in the House of Lords):

Thirdly, we believe that we must make a start on reducing the deficit as quickly as possible-I was grateful for the support of my noble friend Lord Sheikh on this. It is not enough to say that we will be good but not yet. Starting does not mean cutting savagely and it certainly does not mean making cuts that harm our recovery from the recession. Demonstrating real commitment by making hard decisions today, rather than talking about it, is a part of credibility.

Lord Myners (Financial Services Secretary to the Treasury):

The noble Lord, Lord Bilimoria, made an interesting speech from the Cross Benches. I could see that he made it from the Cross Benches; it was less easy to conclude that from listening to what he had to say. It was sad that he was not in the House when the noble Lord, Lord Sheikh, made his speech. Perhaps he would like to look at the noble Lord’s speech, because it had some interesting insights both into national economic management and into the management of private businesses. I was sure that people could agree with certain parts of his speech, but I found it more difficult to believe that people could agree with the whole of it, as he seemed to talk first in terms of increasing expenditure on defence, education and a number of other areas but then immediately coupled that with a call for a rapid reduction in public expenditure.

I have already referred to the excellent contribution by the noble Lord, Lord Sheikh.

My Lords, I begin by paying tribute to the honourable Member for Totnes in the other place for his prudent stewardship of this important Bill, which I wholeheartedly support, and also to the noble and learned Baroness, Lady Butler-Sloss, for introducing it to your Lordships’ House. I also congratulate the noble Baroness, Lady Young of Hornsey, on her excellent speech.

I sincerely believe that this legislation will contribute towards heralding a new era of heightened awareness of the abhorrent issue of slavery. I have spoken several times on this matter, both in your Lordships’ House and at events outside Parliament. Some opponents of the Bill say that the United Nations international day for the commemoration of the 200th anniversary of the abolition of the transatlantic slave trade already serves the purpose of the proposed legislation. My response is that we are far from the point where it is unnecessary to draw attention to the unsavoury practice that continues to take place in this country and around the world.

Clause 1(1) makes it incumbent on the Secretary of State to allocate a specific date that will be observed annually as anti-slavery day. I welcome this section, which serves a broad purpose in acknowledging the suffering inflicted on victims of slavery, and in turn allows us to pay our respects to these individuals. Most importantly, such a day would serve as a reminder to communities that all types of forced servitude have no place in our society.

Clause 1(2)(b) aims to raise awareness among the public of the threat posed by slavery in our society, and of the importance of rejecting all forms of servitude in our communities. It was encouraging to see programmes across the UK in both 2008 and 2009 that created greater awareness of, and further education on, the perils of the slave trade. I expect that this will continue for many years with, I hope, the welcome addition of the provisions in the Bill.

Clause 1(2)(c) acknowledges the progress made by government and agencies in combating exploitation. I fully support the Council of Europe in attempting to combat trafficking in human beings, as it highlights the importance of a multi-agency approach to ensuring the safety of victims, and prosecution of the perpetrators, of slavery. Europol plays a vital role in fostering co-operation between the law-enforcement bodies of member states, in addition to publishing a document each year on the state of human trafficking in the European Union. I also welcome the Government’s decision to implement an action plan to address the problem of human trafficking.

The Poppy project has proven to be a great success in supporting victims of human trafficking and slavery. I commend the Government for acknowledging the need to give assistance to victims of this social evil. I would be grateful if the Minister would say what measures the Government will put in place to ensure that adequate funding and resources are also made available to community groups that give assistance to victims of modern-day slavery and human trafficking.

Clause 1(3) states that slavery encompasses child trafficking, as well as trafficking for sexual exploitation, forced labour and domestic servitude. The average age of those who enter prostitution in Europe is frightfully low at 14 years. It is believed that the vast majority of these individuals are victims of trafficking.

Close to 330 children are trafficked in Europe each year; the majority enter the modern slave trade in the form of hard domestic labour or, increasingly, the adult trade. That is wholly undesirable and often results in children continuing in this industry into their adulthood. It is therefore the duty of policy-makers and local agencies to give assistance whenever possible to the overwhelming majority of prostitutes who are in the industry against their will.

Human trafficking is an issue of great concern to me. This immoral practice is the equivalent of modern-day slavery. The United Nations convention against transnational organised crime not only prohibits human trafficking but actively requires countries to strive towards addressing the demand for sexual exploitation. The creation of an effective border security system would play a key role in making sure that border police and officials are able to identify traffickers and their victims. Some cases that result in slavery often involve economic migrants who enter Britain with the promise of work and better living conditions than those enjoyed in their native countries. However, upon arriving in Britain, the harsh reality for many migrants is far from the scenario they imagined.

A notable proportion-women in particular-fall prey to ruthless individuals keen to exploit their circumstances. In extreme cases, these women are subjected to mental and physical torture. Those who subject individuals to slavery or servitude are in direct breach of Article 4 of the Universal Declaration of Human Rights. Thousands of people are trafficked into the United Kingdom each year, yet figures reveal that between 2004 and 2008, only 92 people were convicted of trafficking for illicit purposes and just four people were sentenced for labour trafficking. Records show that 127 people have been convicted of crimes relating to slavery and trafficking to date.

This disparity does not speak highly of the current methods used to deal with this trade effectively. What steps are the Government taking to ensure that all citizens who engage in any form of modern-day slavery are brought to justice? We should take pride in the fact that a large proportion of our society views slavery and human trafficking as wholly abhorrent practices.

In spite of this, statistics reveal that more than 5,000 people are trafficked into this country each year. Every citizen is entitled to a decent level of treatment in all areas of their lives. Slavery runs counter to all the beliefs that we hold so dear in our communities. Any legislation that will ensure individuals are treated according to their basic human rights is welcome. I hope that this Bill will gain swift passage through your Lordships’ House to give those who have been subjected to this form of torture the reassurance that we are striving to eradicate any form of slavery in our society.

I was born and brought up in Africa, which has been ravaged by slavery, where great men like General Gordon and Dr Livingstone lived and died and who passionately believed in abolishing slavery. I have also admired Dr Livingstone and in fact visited Ujiji on the shores of Lake Tanganyika where HM Stanley first met him. William Wilberforce, a Conservative politician, played an instrumental part in making sure that the abolition of the slave trade became a reality. We have both a moral and a civic duty to continue along this path.

My Lords, at the outset I declare an interest: I am the chairman of an insurance broking organisation. I welcome this Bill as I recognise that a binding agreement on flood risk management is long overdue. The recent floods in Cumbria caused widespread devastation, surpassed only by the 2007 floods which resulted in 13 deaths and extensive damage to properties at a cost of over £3 billion. The Environment Agency announced that the severe flooding in Cumbria last year was a phenomenon to be expected only once every thousand years. Although the circumstances were unforeseen, they can serve as a catalyst for better flood preparation in the future.

Many homes and businesses have been ruined by the effects of torrential floods; livelihoods have been shattered and in some cases, irreplaceable items have been destroyed. The Association of British Insurers has estimated that payouts resulting from the floods in Cumbria alone will be made in the region of between £50 million to £100 million, and may even surpass that figure. Flood damage has caused considerable losses to the insurance industry, which may result in the charging of higher premiums and application of terms in areas which are prone to floods. One in six homes in the United Kingdom is at risk from flooding. Better flood management and funding is essential to provide those at highest risk with adequate assistance.

In many instances the psychological damage caused by these floods will be difficult to overcome. Affected communities should be given additional emotional support through initiatives such as counselling for those who wish to make use of the service. The Bill provides developers with the responsibility to make sustainable drainage systems available in housing and commercial properties. An effective framework is needed to minimise the economic and social upheaval caused by flooding. Central and local governments must work together to successfully tackle flooding and give leadership to local communities on how best to prepare and equip themselves for floods.

There is growing concern that many individuals are unaware that they live or work in areas that are prone to floods or coastal erosion. A number of people in Cumbria did not arrange insurance cover and, as a result, have suffered financial hardship. What steps will the Government take to raise awareness of possible flooding in high-risk areas so that individuals can seek adequate insurance protection? There are specialist insurance brokers who can provide appropriate cover in areas which are prone to flooding. This legislation must end the confusion over which bodies have responsibility for flood-risk management. Although the Environment Agency should have an overview of all types of flooding, local communities have an important role to play as their knowledge and expertise is crucial to rescue efforts, both during and after flooding.

The Pitt review called for the allocation of clearly defined roles for flood management. It is encouraging to see that this recommendation is a requirement of the Bill. I welcome Clauses 7 and 8 as they make it incumbent on the Environment Agency to devise a strategy for flood and coastal-erosion risk management in both England and Wales. We need, however, to examine details of these clauses at later stages of the Bill. The agency should have the full confidence of both central and local government-related agencies to adequately develop a strategy that is free from political or commercial bias. It is important for the agency to present regular reports to policy-makers that include independent flood-risk assessments which also detail funding requirements and proposals for dealing with imminent floods. The agency should also devise a long-term plan for flood-risk management and must be given responsibility for creating accurate, national flood maps covering all sources of water damage to be made available to the public. There are opportunities for the Environment Agency to consult with tertiary institutions to promote the research and skills required for effective flood and coastal-erosion risk management.

I support Clause 13 as it ensures that local authorities communicate and co-operate with relevant bodies concerning flood and coastal-risk management. Resources such as flood maps are essential to the industry. There is scope for local agencies to collaborate with the Environment Agency in the production of local flood-risk maps. Local authorities have the potential to become the leading agencies in charge of assessing local flood risk in specific areas. Insurers and loss adjusters have a duty to advise local communities susceptible to flooding whether they should build in flood resistance to best prepare their homes for possible floods.

I welcome the provision which grants greater power to local authorities when managing flood risks as they are best placed to deal with the initial effects of flooding due to their knowledge of their areas. The proposal to promote multi-agency co-operation is also encouraging. A lack of broad agency collaboration has been cited as one of the barriers to effective flood management. Local authorities must work in concert with the Environment Agency to enable the development of a national overview of surface-water flood risk.

I agree with Clause 35 which proposes to regulate the provision of infrastructure by a third party for the eventual use by water or sewerage undertakers. I support Clause 36, which amends the Water Industry act 1991 to enable water companies to prevent or restrict the use of water at times when serious shortages occur, or are at risk of occurring. We have had situations in this country when there has been a lack of rain and a shortage of water. The use of water must be controlled under these circumstances. However, we must work out the details, perhaps in the form of issuing a suitable code. I will add that during the last drought, I lived in a house with five acres of grounds and encountered great difficulty in keeping my plants alive because of the hosepipe bans.

Water companies should be free to impose charges for connecting new developments to give access to sewerage and water networks. They also have a duty to ensure that new developments do not increase the risk of future damage. Clause 38 allows the Environment Agency to engage in works that may cause flooding, provided this is in the interests of natural conservation or civic enjoyment. I hope that the conditions of the clause will be examined in more detail in Committee.

We need to examine the provisions of Clause 39, which allows lead authorities or internal drainage boards to carry out works under certain conditions that will or may cause flooding, an increase in the amount of water below the ground, or coastal erosion.

I welcome Clause 42, which introduces a new section into the Water Industry Act 1991 that requires the owners of premises and sewers to connect with the public sewer. This requirement is, first, on the proviso that an adoption agreement exists between the owner of the sewer and the sewerage undertaker; and also that the agreement must include details concerning the standards that the constructed sewer or drain should meet. In most cases, repairs will be carried out in accordance with the same regulations that did not prevent water damage occurring in the first place. I would like to see a provision that will ensure that construction repairs are made in such a way as to prevent future floods from causing the same degree of damage. This would in turn reduce the costs and the level of disruption to local community groups. I recommend that local housing authorities be asked to provide low-cost insurance in high flood risk areas, perhaps on the lines of tenants’ contents insurance with rent schemes. This should gain wide support.

I am concerned at the number of householders and businesses without appropriate insurance who, in the event of flooding, will encounter financial and personal hardships. It is encouraging to witness broad political consensus for the majority of proposals in the Bill. I am confident that it will be adequately strengthened during its passage through your Lordships’ House. We have a duty to ensure that the Bill greatly contributes towards managing the rising threat of water damage, which is critical for the 5 million properties nationwide that are most at risk of flooding.