Consumers, Estate Agents and Redress Bill [Lords]

These amendments relate to clauses 44 and 47, and the new redress and complaint-handling provisions to be introduced in the energy and postal services sectors, and potentially in the water sector after consultation in 2008. Those elements of the new framework for consumer representation and redress are important to the new arrangements in the Bill. A direct consequence of those new provisions is that regulated providers in the energy and postal services sectors, and potentially water, will be required to take full and proper responsibility for handling complaints from consumers of their services. As an incentive for industry to take complaint-handling seriously—we have just had a short debate about the importance of those processes—the Bill places a requirement on the regulators to make regulations prescribing standards for complaint handling which will be binding on regulated providers in those sectors. Where a regulated service provider has not been able to resolve a complaint to the satisfaction of the consumer, the availability of redress schemes will ensure that consumers will benefit from the certainty of resolution of a complaint, and the award of compensation where appropriate. We are working closely with representatives of the key organisations concerned to ensure that we achieve a smooth transition to the new framework which maximises benefits to consumers, and minimises the uncertainty for staff in the existing organisations. We expect that the new sectoral redress schemes will be established by industry and approved by the relevant regulators. In parallel, regulators will also be considering how to introduce the new standards for complaint handling. We are discussing with industry and industry representatives how to make the transition to the new arrangements. The timetable for delivering the different aspects of the new framework will be challenging, and work on the detailed aspects of that must start immediately. The intention behind the amendments is straightforward: to clarify the status of actions such as consultations and other procedural steps and to provide that where they are carried out before Royal Assent and commencement they nevertheless satisfy the requirements of the Bill as set out in clauses 44(1) and 47(4). There are time constraints, and the amendments will help us to make progress before Royal Assent and commencement, and provide an assurance that such actions will satisfy the obligations contained in the Bill. They will save time later in the process, and enable us to introduce measures swiftly.