Lloyd's (Hansard, 23 January 1991)

§ 7. Mrs. Gorman
To ask the Secretary of State for Trade and Industry if he has any plans to review the self-regulation of Lloyd's of London.

§ Mr. Redwood
The Neill committee in 1986 reviewed regulation at Lloyd's thoroughly. Its 70 recommendations have been implemented in full and I think that the new system now requires a period of stability.

§ Mrs. Gorman
I thank my hon. Friend for that reply. He must be aware of the disquiet felt by people who are in dispute with Lloyd's because there is no form of independent appeals procedure. Will he express concern for my constituent, Mr. Cawen, who, after 25 years of exemplary service at Lloyd's, has been disbarred on a technical matter which would not occasion any form of prosecution in a court of law? Is my hon. Friend also aware that the United States Congress has expressed grave concern about the way in which Lloyd's is regulated? Will he therefore give an assurance that people in dispute with Lloyd's can look forward to a truly independent appeals system?

§ Mr. Redwood
There is an appeals system within Lloyd's and a large number of independent members are involved in regulation at Lloyd's—indeed, they are in a majority. If my hon. Friend would like to pursue the case of her constituent, Lloyd's would be prepared to talk to her about it, if she has her constituent's consent in so doing—

§ Mrs. Gorman
indicated dissent.

§ Mr. Redwood
I am telling the House today that I think that Lloyd's would be prepared to discuss the case with my hon. Friend if her constituent authorises her so to do. She is also welcome to come and see me about the matter, but regulation is for Lloyd's which has a system of regulation established under statute, and independence is an important characteristic in the appeals procedure.

§ Ms. Mowlam
Is the Minister really as satisfied with the system at Lloyd's as his remarks just now seemed to suggest? Not only are there internal problems, as the horn. Member for Billericay (Mrs. Gorman) pointed out—she has tried to talk to Lloyd's, but the response from Lloyd's has been negative and the Minister's response unacceptable—but there are difficulties at Howden and, as the Minister is aware, a record number of years of books are outstanding at Lloyd's. Is that what the Minister regards as regulation working?

§ Mr. Redwood
The new system at Lloyd's is much tougher than the old one. The recommendations are wide ranging, as the hon. Lady would know if she had done her homework. That system is now tackling the problems that arose before 1986 and the fundamental review. It is ridiculous for the hon. Lady to describe my reply as unacceptable when I have told my hon. Friend the Member for Billericay (Mrs. Gorman) that she can talk to me about the case in question and also to Lloyd's. What more can a Minister do than offer to talk through a particular case and to see whether Lloyd's can provide satisfactory answers for my hon. Friend, who needs to know both sides of the story?