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Lord Davies of Oldham: My Lords, my noble friend expresses himself in the kind of robust language which is unlikely to be quoted against him in his local newspaper when people get into difficulties. Of course, people must act with responsibility. However, we probably have some responsibility for increasing and improving the financial literacy of the nation against a background where people have greater disposable assets but often do not have the insight and knowledge to make best use of such assets. We all know that a fool and his money are soon separated. The essential job of a good community is to ensure that the fools are in the smallest number possible.
Lord Ackner: My Lords, have the Government considered what will be the state of the first-time buyers' market in, say, 10 years' time when the students have acquired an average overdraft of about £30,000?
Lord Davies of Oldham: My Lords, the noble and learned Lord has combined two difficult concepts in a most interesting way. Perhaps I may make the obvious point that changes in societal behaviour are issues that the Government must constantly address. He will recognise that one effect on the housing market is the extraordinary change in marital patterns where young people are marrying much later and there are more single households. That affects the housing market in an obvious and direct way.
The noble and learned Lord has succeeded in bringing into the equation another dimension; namely, how wealthy individuals will be a decade from now. The obvious point is known throughout the House: we have an average growth rate of just over 2 per cent and, as a whole, the country doubles its wealth in 25 years.
Lord Higgins: My Lords, is not part of the problem that credit rating agencies are not subject to effective
competition, tend to be inefficient and do not reply to complaints? They also frequently lead people who are a bad credit risk to obtain credit and stop people who are a good credit risk from obtaining credit. Can the Minister assure the House that this issue will be covered in the White Paper?
Lord Davies of Oldham: My Lords, that is an important consideration. As the noble Lord indicated, two abuses are being perpetrated by an ineffective and unfair credit market. There is a limit to which legislation can introduce help in every respect, but we are looking at this issue because it certainly has grown during recent years.
The Earl of Northesk: My Lords, what is the current total of household debt? What proportion of it is unsecured against assets? The reason I ask is because some forecasters are predicting that household debt will top £1 trillion by next year.
Lord Davies of Oldham: My Lords, I cannot give that figure to the noble Earl, but I can reassure him that the ratio of debts to assets in the economy is still very healthy among households. The reason why people feel that they can push the boat out with regard to credit cards is because they feel wealthier, although we all recognise that it can get out of hand in individual cases. People feel wealthier because, objectively, they are wealthier. Given the number of people who own property, there cannot be a 50 per cent average increase in house prices in the past decade without that being reflected in the wider population. There is an increased degree of security in terms of management of debt, particularly if people are managing debt not against raging inflation and very high interest rates, but under controlled inflation and very low interest rates. That is where confidence comes from for our fellow citizens.
Economic Affairs
House Committee
Human Rights
Procedure of the House
Deputy Chairmen of Committees
3.17 p.m.
The Chairman of Committees (Lord Brabazon of Tara): My Lords, I beg to move the five Motions standing in my name on the Order Paper en bloc.
Economic AffairsMoved, That a Select Committee be appointed to consider economic affairs;
That, as proposed by the Committee of Selection, the following Lords be named of the committee:
That the committee have power to appoint a sub-committee and to refer to such sub-committee any of the matters within the terms of reference of the committee; that the committee have power to appoint the chairman of such sub-committee;
That the committee have power to co-opt any Lord for the purpose of serving on such sub-committee;
That the committee have power to adjourn from place to place;
That the committee have power to appoint specialist advisers;
That the committee have leave to report from time to time;
That the minutes of evidence taken before the Economic Affairs Committee or any sub-committee in the last Session of Parliament be referred to the committee;
That the minutes of evidence taken before the committee from time to time shall, if the committee think fit, be printed.
Moved, That a Select Committee be appointed to supervise the general administration of the House and guide the work of the Management Board; to agree the annual Estimates, Supplementary Estimates and the three-year spending forecasts; to approve the House of Lords Annual Report; and to approve changes in employment policy;
That, as proposed by the Committee of Selection, the following Lords together with the Chairman of Committees be named of the committee;
That the committee have leave to report from time to time;
That the reports of the Select Committee from time to time shall be printed, notwithstanding any adjournment of the House.—(The Chairman of Committees.)
On Question, Motion agreed to.
Moved, That a Select Committee of six Lords be appointed to join with a committee appointed by the Commons as the Joint Committee on Human Rights:
(a) matters relating to human rights in the United Kingdom (but excluding consideration of individual cases);
(b) proposals for remedial orders, draft remedial orders and remedial orders made under Section 10 of and laid under Schedule 2 to the Human Rights Act 1998; and
(c) in respect of draft remedial orders and remedial orders, whether the special attention of the House should be drawn to them on any of the grounds specified in Standing Order 74 (Joint Committee on Statutory Instruments);
(a) in relation to any document containing proposals laid before the House under paragraph 3 of the said Schedule 2, its recommendation whether a draft order in the same terms as the proposals should be laid before the House; or
(b) in relation to any draft order laid under paragraph 2 of the said Schedule 2, its recommendation whether the draft order should be approved;
and to have power to report to the House on any matter arising from its consideration of the said proposals or draft orders; and
To report to the House in respect of any original order laid under paragraph 4 of the said Schedule 2, its recommendation whether:
(a) the order should be approved in the form in which it was originally laid before Parliament; or
(b) that the order should be replaced by a new order modifying the provisions of the original order; or
(c) that the order should not be approved,
and to have power to report to the House on any matter arising from its consideration of the said order or any replacement order;
That, as proposed by the Committee of Selection, the Lords following be named of the committee:
That the committee have power to agree with any committee appointed by the Commons in the appointment of a chairman;
That the quorum of the committee shall be two;
That the committee have power to adjourn from place to place;
That the committee have leave to report from time to time;
That the committee have power to appoint specialist advisers;
That the minutes of evidence taken before the Human Rights Committee in the last Session of Parliament be referred to the committee;
That the minutes of evidence taken before the committee from time to time shall, if the committee think fit, be printed.—(The Chairman of Committees.)
On Question, Motion agreed to; and a message was ordered to be sent to the Commons to acquaint them therewith.
Moved, That the Select Committee on Procedure of the House be appointed and that, as proposed by the Committee of Selection, the following Lords together with the Chairman of Committees be named of the committee:
L. Falconer of Thoroton (Lord Chancellor)
Moved, That, as proposed by the Committee of Selection, the following Lords be appointed as the panel of Lords to act as Deputy Chairmen of Committees for this Session:
B. Turner of Camden.—(The Chairman of Committees.)
On Question, Motion agreed to.
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