Government demands action over 'abuse' of BHS 'asset stripping'

In the case of BHS, opposition spokeswoman Baroness Jones of Whitchurch said a Government-run fund had been left to bail out staff pensions.

The department store chain fell into administration in April, putting 11,000 jobs at risk and leaving a £571 million pension fund black hole.

Lady Jones was speaking as peers continued to debate the Government's legislative programme set out in the Queen's Speech, which she argued represented a "missed opportunity".

As well as the case of BHS, she also stressed the need to address the over reliance on financial services "and their long overdue need for reform".

She said: "The truth is that despite the lessons of the financial crash the banking sector is continuing very much with business as usual.

"Risky loan packages are creeping back on the market, bankers' bonuses are hitting eye-watering volumes again and the race is on for quick profits at the expense of long term investment.

Read more: Probe into BHS pensions following chain's collapse

"Does the Government accept that this Queen's Speech represents a missed opportunity to tackle that abuse?"

She added: "At the same time, we have seen the owners of BHS asset strip the heart out of it, leaving the Government-run pension protection fund to bail out the pensions of the staff.

"It was never intended to be used in that way.

"But this isn't the first time that a company has torn up its pensions' obligations in the race for quick profits.

"So what is the Government now doing to tackle this abuse?"

The Labour peer also said the tax avoidance revealed in the so-called Panama Papers had "exposed the fact that for many wealthy individuals and business paying tax has become a choice, not as a necessity.

"All too many are simply are choosing not to pay. Clearly, there is a need for urgent action on this."

Earlier, opening the debate for the Queen's Speech, Treasury minister Lord O'Neill of Gatley told peers there was "no silver-bullet responses" regarding the economy.

But he said the measures set out by the Government showed its determination "to follow an economic plan that will lay the groundwork for the long-term good of the country".

Read more: BHS to find out whether creditors back turnaround plans

Lord O'Neill said: "We will continue to take action to ensure security, sustainability and strength in our economy for the long term.

"That rests, without doubt, on our work to control public spending, but it is equally dependent on the success of our work to rebalance the economy, put in place the infrastructure we will need in the future and help people get on in life.

"The legislative programme for the next parliamentary session represents important steps forward in achieving these aims."

Baroness Bakewell of Hardington Mandeville felt the speech was "sadly lacking in the Government's aspirations for the country in the next 12 months".

She was concerned there was no mention of affordable social rented housing in the legislative plans.

She said: "The Government prefer instead to concentrate on the private rented sector. For those not able to buy their home or afford rents in the private sector, social housing is the only option."

Making her maiden speech in the Lords, the Bishop of Newcastle, the Rt Rev Christine Hardman, welcomed the commitment to the northern powerhouse, but stressed this would need to be matched by funding.

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Championing her region, she said: "The North East is not a problem to be solved by the rest of the country but an asset to be valued.

"We are one of the very few parts of the UK with a surplus of both water and energy.

"Rather than transporting these vital resources to other parts of the country, we should be looking to relocate water and energy-intensive businesses to the North East."

In a wide-ranging spech, independent crossbencher Lord Palmer argued there was a "strong case" to scrap the EU, as it had become "far too unruly" with 28 members.

He also branded it an "utter scandal" that the European Commission relocated from Brussels to Strasbourg once a month.

Lord Palmer also said he had learned about fracking on a trip to Texas.

He said: "If fracking is undertaken under a very strict code of conduct, as indeed it is in Texas, I am utterly convinced that it will be a safe and reliable source of energy for future generations. It is pleasing that the green light has been given to fracking in North Yorkshire.

"In many ways, energy and the environment are facing challenging times and I hope that the Government will seize these opportunities before it is too late."

Tory peer and former MP Lord Young of Cookham welcomed moves to increase the supply of housing, but had hoped there would be a commitment to legislation on homelessness.

He said: "Homelessness is sadly on the increase and the law as it stands creates a two-tier system involving people in 'priority need', who are owed the full homelessness duty, and those who are judged not to be and can be turned away with little or no help.

Read more: Sir Philip Green agrees to BHS showdown with MPs

"This binary distinction is increasingly difficult to justify."

Labour's Lord Morris of Aberavon argued the need for a "level playing field" for the under- threat steelworks at Port Talbot, highlighting the problems caused by Chinese dumping and high energy costs.

The Bishop of Portsmouth, the Rt Rev Christopher Foster, felt there was "too little" in the government proposals to help people "facing economic challenge and disadvantage".

He said: "The spectre of austerity and its impacts and implications are still real to many.

"The point is not just that there are inequalities but that there are injustices."

Labour peer Lord McFall of Alcluith, who as an MP headed the Commons Treasury Select committee, said the Government's aims for the economy could not be achieved without a well-functioning banking system which was currently "a distant prospect".

He said the "foot had been taken off the pedal" by the politicians, regulators and the corporations in relation to the industry.

Highlighting continuing "creative accounting", Lord McFall said: "We are seeing real bonuses still being paid out of fake profits and we thought that had gone in 2008."

He added: "The system of executive pay is broken. There are still high rewards for those at the top and in the banking sector, it allows senior management to have the fruit of large and open-ended subsidies from the taxpayer."

He stressed the need for "the cultural problem" to be tackled.

Conservative peer, the Earl of Caithness, pressed for measures that would allow farmers to curb the population of ravens, which were blamed for killing young lambs.

He said: "There is nothing more heartbreaking for a farmer than to produce good lambs and find that your week-old lambs are being attacked by ravens. They are doing it for fun.

"It involves only a small number of ravens, and if farmers could be licensed to exterminate those, the problem would solve itself."

Liberal Democrat Baroness Parminter expressed "sincere regret" the Queen's Speech did not contain the word "environment" for the second year running.

She said: "There are no measures to protect or enhance our natural environment and no measures to deliver the Conservative manifesto commitment to protect our public forests and woodlands for the good of the country."

Independent crossbencher Lord Rana said the sugar tax on soft drink was "an important step" in tackling obesity and unhealthy diets that contributed to it.

But he questioned why there were no proposals for a similar levy on choclate and other sweets.

He said: "The soft drinks levy should be the beginning rather than the end of financial legislation and seek to promote a healthy lifestyle."

Former trade union leader and Labour peer Lord Morris of Handsworth highlighted problems over recycling and called for it to be a more "friendly and rewarding experience".