My Lords, the previous group has already set the scene on Clause 38, where I propose some changes to help small businesses, at least. The point remains that the CMA, or OIM, is an opining body, often for the benefit of Administrations, even if most of those are not happy with how it is set up. I also clarify that I am not against the CMA per se. I have responded to its consultations, been quoted by it and would give it more powers in competition matters. Even if it were the chosen body, I would still consider the same procedures and culture not right for monitoring the internal market, so to copy and paste legislation created for the competition field is not appropriate. I mention again the different approaches of DG COMP and DG Internal Market as an illustration.
In this group, I am further probing the constraints on information-gathering powers. As I have said, they often apply to individuals and businesses that have not done anything wrong, nor have their actions, individually or collectively, distorted the market. If the regulations are amiss, that is created by Administrations. With all due respect to the response the Minister gave on the
previous group, that is different from competition matters, which the businesses and their actions have brought forward. I find it alarming that there is no understanding of the fundamental difference between applying competition law and monitoring an internal market, but it is early days and this is all new.
I accept that an investigation into and report on the activities of companies that are causing distortion, as could be the case under Clause 31, is different. Then, it is perhaps reasonable to use the existing CMA powers and scope. But I can assure the noble Lord, Lord Stevenson, that the format of these enforcement powers is copied and pasted from the CMA in its role dealing with companies that potentially threaten the public interest, where there is at least a suspicion that competition laws or norms, such as market concentration or fair pricing, are being challenged. In the Bill, individuals or companies are being used as sources of information for things that they have not brought on themselves, and that is the difference. It is why having the same laws is not appropriate. For this reason, I object to the compulsory scope of Clause 38 for all circumstances, and the same applies to the enforcement and penalty powers in Clauses 39 and 40.
Clause 38(6) states that the notice will be sent with
“information about the … consequences of not complying”.
That is a frightener. Is that the way to treat business? Was it consulted upon? We challenged the Minister on Monday about the information he had been given to say to us, stating that using the CMA was consulted upon. Even if there were a few throwaway lines like “such as the CMA” in response, was any consultation conducted on whether CMA market study legislation fits the rather different circumstance of investigating Administrations’ actions? If businesses or individuals decide that they do not wish to or cannot provide information, and the CMA decides, under its own rules, that their excuse is not reasonable, they can be dealt with as obstructing and fined.
There was an interesting exchange on fines on Monday, when the noble Baroness, Lady Finlay, asked whether a Member of the Senedd could be fined. The Minister said that they could be asked for information, but not fined. Now we see another way to get some of that information: turn any business that had been in discussions with the Senedd into the informer. Who knows? Perhaps one day we might even get some of the unpublished consultation responses that the Government sit on.
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The only ray of hope is a reasonable excuse for failing to comply, and I would like guidance on what is reasonable. Is it a reasonable excuse that the person does not have time or cannot afford to attend wherever they are summoned, from a loss-of-earnings perspective? Is it a reasonable excuse that the businessperson concerned also has childcare responsibilities, which make it difficult to attend as well as costly? Is it a reasonable excuse, as there is no suggestion that they have done anything wrong and it would be inconvenient, that they wish to decline to do it? Is it a reasonable excuse that they do not have ready estimates and forecasts, and that it takes them away from fee-earning work to construct them? Is it a reasonable excuse that they do not keep
those kinds of records? Is it a reasonable excuse that a Member of the Administration has the information and has declined to produce it?
Freedom of information requests can be declined for taking too much time and involving too much expense. Does a similar consideration apply here, at the discretion of the person from whom the information is sought? Why is it any different when they have not done anything wrong? The Minister knows full well that businesses want a smooth-running internal market but, frankly, how many board members want to add CMA or OIM internal market information requests to their risk register? A good place to do business—what are you thinking?
On the other side, there are also circumstances where much more has been opened up for challenge by businesses through Clause 31, giving reach into administrative decisions; and, as mentioned in the impact assessment on page 29, legal actions may occur, possibly as a follow-on. This may also extend beyond UK shores, so can the Minister explain the scope for investigative actions from other countries that the provisions in the Bill create? For example, will the CMA accept third-country complaints under Clause 31? Or, when we get to it next week, under the wording in Clause 50, what third-country actions are opened up in services that are beyond the WTO provisions? Using the example mentioned by my noble friend Lord Fox, an English water company might actually respect the mutual Welsh water companies, but could a foreign water company intervene?