Consumers, Estate Agents and Redress Bill [HL]

I shall speak to the amendments relating to Energywatch and Postwatch. First, my noble friends Lord O’Neill of Clackmannan and Lord Whitty, who has great knowledge in this area, raised the issue of an integrated consumer body. A number of noble Lords have asked why a consumer body cannot do more, and why we have not incorporated more consumer-representative groups in the Bill. That issue was raised on Second Reading, but I will go over it briefly again. We undertook a consultation with groups such as the Financial Services Consumer Panel and the Ofcom Consumer Panel. However, the majority of responses to the consultation said that the role of these panels was different from that of statutory consumer bodies, being primarily regulator-facing rather than consumer-facing. There were other groups, and the noble Earl, Lord Selborne, mentioned the water sector, where the consumer representation function has only recently been reformed. It was viewed as unwise at such a stage to incorporate the water sector. A similar view was held on the rail sector, which has just had its consumer representation reformed as well. It was inappropriate to incorporate them at this stage. The Air Transport Users Council is part of the sectoral regulator, the Civil Aviation Authority; it is not actually a separate consumer representation body. However, we do not rule out any further developments or any of the sectors being incorporated at a later stage. At this stage, after extensive consultation, it was felt that it was not appropriate to incorporate them. I shall go through one or two points that have been raised. The noble Baroness, Lady Miller, raised the method of enforcement by the regulator. Enforcement in the energy sector is currently the same as that provided for in the Bill. Currently, in the postal services sector the court enforces a provision of information to the sectoral consumer body. The noble Baroness, Lady Oppenheim-Barnes, raised the point about designated consumers and vulnerable consumers. Designated consumers are those in sectors that require special attention in view of the market. They may or may not be a priority at any time, hence the description ““designated””. The council will have functions in relation to vulnerable consumers. That is in Clause 11. The council will also have functions in relation to energy disconnections and it is felt important that vulnerable consumers should be covered by the Bill. I shall turn to the main points on Energywatch and Postwatch. The intention behind the amendments is to remove those consumer bodies from the scope of the Bill. In effect, the result would be to create a new consumer council from the existing National Consumer Council only, which would not be able to require information from the sectoral regulators to carry out its functions. The new body is intended to be stronger than the sum of its parts—an assurance that I can give to the noble Earl, Lord Selborne, and to my noble friend Lord Whitty. The idea is to produce a strong consumer advocate for consumers in all sectors. Achieving that aim would create a powerful consumer advocate, able to address consumer issues that frequently exist across sectors of the economy. The new body would have the critical mass to engage effectively with the Government, regulators and industry sectors on the basis of expert and informed analysis, with the benefit of being able to draw on experience and expertise from a number of sectors. Responsibility and authority to speak for consumers would rest with a single organisation, thus providing a stronger and more effective policy voice in the UK and EU. Therefore, the Committee will understand that I cannot accept these amendments. I believe that Clauses 3, 12, 24 and 29 and Schedules 2 and 3 should stand part of the Bill. Clause 36 contains provisions that enable the Secretary of State to extend the functions of the council if he considers that it is in the interests of consumers or in the interests of a particular description of consumer. That is subject to the proviso that such additional functions must be connected to an existing or former function of the council. It provides flexibility in expansion of functions if that becomes necessary in the future. The Bill provides for prior consultation. The clause does not permit promotion to be made which would be within the legislative competence of the Scottish Parliament. If a provision is made under that clause it would fall within the legislative competence of the National Assembly for Wales. The provision may be made only with the consent of the Assembly. Clause 37 provides that the Secretary of State may make an order removing the functions of the council in respect of Northern Ireland, provided he is satisfied that arrangements are in place for another body to exercise the functions which were exercised by the council under the Bill in relation to Northern Ireland. That refers to the proposal under the Bill that only postal services in Northern Ireland will be covered. That is intended to provide flexibility in the face of changing circumstances. The clause provides for the Secretary of State to consult the council and such other persons as he considers appropriate before making an order under the clause. Amendment No. 142 deals with Clause 59 and concerns the matter of applying the Statutory Instruments Act 1946 in respect of regulations made by regulators under Clauses 42 or 45. The amendment refers to the removal of the subsection from the Bill. However, the intention is to provide that the Statutory Instruments Act 1946 should apply to such regulations made by regulators under Clauses 42 or 45. Therefore, I cannot accept the amendment. Similarly, Amendment No. 144 is necessary to ensure that regulations made under Clauses 42 or 45 are recognised as having the same status as regulations made by regulators included in the Documentary Evidence Act 1868 for the purposes proving certain documents. Amendment No. 147 has the effect of removing certain specified orders related to designated consumers, the designation of the Consumer Council for Water, conferral of additional functions on the council and removal of the council's functions in relation to Northern Ireland from the list of orders and regulations to be subject to the affirmative resolution procedure. That would make them subject to the negative resolution procedure, but given the importance of their effect, I think they should be debated in Parliament. For the reasons that I have given, I must resist all the amendments and that Clauses 3, 12, 24, 29, 36 and 37 and Schedules 2 and 3 should not stand part of the Bill.