Consumers, Estate Agents and Redress Bill [Lords]

I listened to the hon. Lady’s case with interest, but the procedures that a regulator needs to follow in making regulations prescribing the standards to be met for complaint handling by regulated service providers, as set out in clause 44, are sufficiently robust. There is a requirement on a regulator to consult widely by conducting research to obtain and then take into consideration the views of a representative sample of persons likely to be affected by the regulations, and publicising the proposals in full detail to bring them to the attention of those likely to be affected, which is to a rather wider audience. In addition, the Bill provides that the regulations to be made are to be subject to the consent of the Secretary of State. Those requirements will mean that full and proper consideration will be given to proposed standards before a final decision is made by a regulator. The consultation requirement in the clause will enable all interested parties to contribute their ideas and advice on the complaint-handling standards which should be adopted, including any views on where best practice lies. It will be an open process, rather than the more restricted one about which the hon. Lady, understandably, expressed concern. The prescribed standards will relate to the handling of complaints that are made to the regulated service providers by consumers of their services. The Bill sets out in clause 42(1) the regulated gas, electricity and postal services providers that will be subject to the new complaint-handling standards. As for which users and customers will be covered by the standards, that is at the discretion of the regulator and can include small businesses if the regulator determines that it is appropriate that they should come within the scope. On the question of the criteria for approval of redress schemes as opposed to complaint-handling schemes, the processes are quite different. For redress schemes, it is the regulated service providers that can establish schemes and seek the approval of the regulator. Key criteria for approval are set out in clause 49, where the regulator is obliged to have regard to generally accepted principles of best practice. The regulator is not obliged to consult on the approval criteria for the redress schemes, but is so obliged for the schemes on complaint handling. For complaint handling, it is the regulator who takes the initiative. Clause 44 obliges the regulator to consult, so there are different processes. That is the reason for the different approach that we have taken. I hope that that explanation has provided some reassurances to the hon. Lady and that she will feel able to withdraw the amendment. If not, I will ask my hon. Friends to oppose it.