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Banking Bill

I intend to do so. The noble Baroness will have noticed that I commented on other contributions to the debate but not on hers; I had not addressed myself to her comments and was in no way, shape or form including her within the framework of my remarks. The Treasury may need to specify assumptions that the independent valuer must take into account in conducting the valuation exercise. These principles set out the parameters that the independent valuer must adhere to in making his determination. This in no way undermines the independence of the valuer. The European Convention on Human Rights recognises that such parameters may be established by the state in circumstances where compensation arrangements are being considered and where the state has been active in terms of public resources. I emphasise that I am seeking to defend properly, as I was seeking to do in relation to the earlier amendments, the independence of the valuer, while stating that Clause 57 accurately outlines the parameters within which the valuer is bound to work. Without the clause, the work of the independent valuer would have to take place with no principles or parameters. That would surely be open to the sharpest of criticism. I point out that the detail of the valuation principles, which will be set out in a compensation order made about a bank resolution, would be subject to full parliamentary scrutiny through the affirmative procedure. I reiterate the obvious point that parliamentary scrutiny is necessary for the order. That is an important part of the legislation. I emphasise that the clause is a crucial part of the legislation. It is consistent with the European Convention on Human Rights. We have considered the provision with the greatest care. We are working within that framework. If we did not have parameters on which the independent valuer—I hope that in our discussion on previous clauses we have established the independence of that valuer—would act, the Bill would be severely deficient. I emphasise again how important that provision is to the Bill. I hope that the noble Baroness accepts that point.