Product Regulation and Metrology Bill [HL]

(Limited Text - Ministerial Extracts only)

Committee stage
Wednesday 27th November 2024 Grand Committee

[Lord Fox (LD)]

My Lords, had I been a little shrewder on the grouping, I would have included in this group Amendment 106, which we will debate in the antepenultimate group of the Bill, as it also addresses Clause 7 and goes after the same objective of information sharing. Whether it is lithium-ion batteries or some other danger, it is important that we learn from the problems that are established and that the right people can get that information, so that learning process can start.

I suggest that, whether it is the process set down by the noble Baroness, Lady Finlay, which we support, or something like my Amendment 106, or something that the drafters sitting behind the Minister can do much better than we can, there needs to be a point in this Bill about a process of information sharing, whether it is set out in detail, as in my amendment, which talks about who or what those bodies are, or whether it is a more general duty, as the noble Baroness, Lady Finlay, has set out. We support these proposals, and I hope that we can have a debate next time. I hope that the Minister will acknowledge the need to understand dangers, learn from them and move to be able to prevent them.

[Lord Sharpe of Epsom (Con)]

I thank the noble Baroness, Lady Finlay, for her important amendments. I, too, am looking forward to exploring the meaning of “relevant authorities” in the next group. If this is really about product safety, of course we have to have regard to unsafe products, and of course that information ought to be shared with the emergency services, so I have absolutely no problem in supporting all those amendments.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, I am grateful to noble Lords who have spoken in this interesting debate. Obviously, the noble Baroness, Lady Finlay, speaks with great experience in this area, on the higher risk of the online second-hand marketplace and the relationship between that, the information and the emergency services, as she so rightly says. I take the point made by the noble Lord, Lord Foster, which we will debate later on. I have also noted Amendment 106 from the noble Lord, Lord Fox, which seeks to ensure that the information-sharing provisions apply to more bodies, including medical examiners and coroners. In fact, he has put an extensive list in that amendment.

On the issue of secondary legislation, I cannot as yet commit to a detailed timetable. Clearly, this Bill is starting in your Lordships’ House, so we do not know when it is going to get through and, I hope, receive Royal Assent. Then work will obviously take place in relation to secondary legislation, but my understanding is that, in the meantime, we are continuing to work with stakeholders to make sure that we can do this as quickly as possible.

We are coming on to the issue of relevant authorities but, as we see it, it is restricted under Clauses 3(2) and 6(2) to those authorities fulfilling a public function, such as local authorities and sectoral regulators. We think that any further specification would limit our ability to ensure that enforcement authorities can be equipped with necessary powers to enforce their areas of responsibility. Relevant authority and inspector functions are outlined in Clauses 3(3), 6(3), 3(4) and 6(4) respectively, but I suspect that we will come back to this in relation to the amendment from the noble Lord, Lord Fox, later on.

The noble Lord, Lord Foster, mentioned lithium batteries. We know that he is making a very important point—we very much acknowledge that. We think that the powers in the Bill will allow us to determine what changes and updates to our regulations may be needed to ensure the best protections for consumers and support for reputable retailers, including those related to installation.

On data sharing, which the noble Baroness, Lady Finlay, has raised, I have worked with the noble Baroness in the past on CO₂ safety issues, where again the issue of data being shared is very important. That also relates to death certification, in getting accurate information. I well understand that. The draft provisions already allow regulations to make provision for information sharing and co-operation with emergency services. Existing legislation that seeks to facilitate information exchange does not always cover the type of data needed to help protect consumers from unsafe products. We believe that the Bill aims to improve data exchange on product safety among public authorities, emergency services and consumers. Powers in the Bill will allow for regulations to enable extending data-sharing agreements to include public agencies such as emergency services. Sharing information is clearly an important feature in the work of relevant authorities; their ability to obtain and share information enables them to undertake their activities effectively and efficiently. As Clause 7(5) makes clear, any information-sharing regulations must not contravene existing data protection legislation, which covers personal data.

--- Later in debate ---

[Baroness Finlay of Llandaff (CB)]

I am most grateful to the Minister for having such an open door in discussing these issues. I may be wrong, but I understood from the London Fire Brigade that, although its collection of data is comprehensive, other fire brigades around the country do not feed in in the same way. We also have the issue of devolved responsibilities in the devolved nations. Therefore, there is a need to clarify data sharing. I wonder whether we might need to go over this in order to be clear in regulation that some incidents are notifiable.

In responding, the Minister referred to carbon monoxide, which is a colourless gas that does not smell but that can, at high levels, kill you in three minutes. Carbon monoxide deaths are still occurring in this country because of faulty boilers, gas cookers and so on; they are also caused by faulty vehicles when exhaust fumes leak. I understand that we cannot have regulation that includes notifying absolutely everything, but we need further debate on where to draw the line in terms of what becomes notifiable and what is not. It is about an assessment of risk of harm, perhaps.

[Lord Hunt of Kings Heath (Lab)]

On carbon monoxide, one of the issues concerns medical certificates and cause of death; there is a big problem because, often, carbon monoxide poisoning is not mentioned. The argument is that there is nothing in this legislation that precludes taking action in the way the noble Baroness wants us to take action. The question is whether the noble Baroness’s amendment is proportionate; we can have a further discussion about that.

[Baroness Finlay of Llandaff (CB)]

I completely accept that it is about what is and is not included. I recall having learned, on many occasions, the danger of having lists in legislation, because there is always something that has not been included, which becomes a tension. I look forward to further discussion. I am most grateful to others for supporting these amendments and recognising their importance. In the meantime, I beg leave to withdraw Amendment 23.

--- Later in debate ---

[Lord Stewart of Dirleton (Con)]

My Lords, I wish to address the Committee on Amendments 60 to 62 in the name of my noble friend Lord Sharpe; I thank him for his amendments on enforcement regulations in this Bill.

As has already been pointed out, the Bill fails to provide clarity about who will be the relevant authority, how that authority will be appointed and what criteria will be used to determine this. In setting out these points, I merely echo concerns already raised by your Lordships’ Committee. The concern is that a dangerous precedent is created, particularly where such broad powers are granted for enforcing product regulations—including sanctions—and for carrying out investigations.

To illustrate the risks of these broad and as yet undefined powers, we need look only to the Horizon scandal. In that case, as the Committee and indeed the whole House is aware, sub-postmasters were wrongly prosecuted based on flawed evidence and poor decision-making by the responsible authorities—a private prosecutor in England and Wales. The lack of proper scrutiny and oversight in that situation resulted in innocent people facing wrongful charges. Lives were ruined; indeed, lives were lost. The situation was greeted with mounting horror across our House, as it was across the country at large, as details began to emerge.

The Horizon case highlighted the dangers of unchecked power or power in the hands of those lacking the professional cultures to exercise such power responsibly. Our concern is that this could easily be replicated under the Bill if we do not ensure that the powers of the relevant authority are defined carefully and according to strict standards of accountability. We submit that the Government must provide clear criteria for the appointment of a relevant authority and establish rigorous oversight in order to ensure that the powers given under the Bill are used fairly and transparently. The Bill should ensure that those granted authority are highly qualified, possess relevant experience and are subject to ongoing monitoring in order to prevent misuse of power.

These clauses are considered skeleton legislation by the Delegated Powers and Regulatory Reform Committee. The House has collectively expressed its concern as to the dangers of skeleton legislation in other contexts, where vague provisions allow the Executive to bypass parliamentary scrutiny; indeed, the dangers and undesirability of such skeleton legislation were touched on yesterday in a take-note debate on the rule of law. Bypassing Parliament on such a critical matter—especially with the ability to bring solemn criminal charges on indictment, not just at summary level—creates risk and sets a dangerous precedent. We are by no means claiming that the Government are consciously seeking to set up a situation and a system of abuse of power, and we recognise the importance of effective regulation for consumer protection; our concern is that a lack of clarity in the Bill threatens to create an environment ripe for the misuse of power, at a time when our consciousness, and of the country at large, of those risks has never been sharper.

[Lord Sharpe of Epsom (Con)]

My Lords, I will speak to Amendments 60, 61, 62, 66, 67, 83, 84, 86, 88 and 89 standing in my name.

Before I get on to that, I thank all noble Lords who have spoken. I have not heard very much that I have disagreed with, and in particular I welcome the specialised and clearly considerable expertise of the noble Baroness, Lady Crawley, and my noble friend Lord Lindsay in this area. I also thank my noble and learned friend Lord Stewart of Dirleton, who brought a valuable legal perspective to my Amendments 60, 61 and 62. If I may say so, the Committee should also thank him, because that has relieved me of the duty of mentioning the delegated powers in the Bill.

To probe, starting with my Amendment 60, what is a relevant authority? My amendments as a group seek clarity. There is far too little of it, and I will explain why. There may be a case for a degree of generalisation on product safety laws, which we have discussed in previous Committee days, but when it comes to the enforcement of the law, as my noble and learned friend has just outlined, the Government should not be this vague. The clause that this amendment seeks to remove grants wide discretion in designating one or more persons as the relevant authority, without defining criteria or scope. Businesses need to know who they are engaging with when it comes to compliance and enforcement. The uncertainty in the Bill creates a challenging situation for businesses, in particular small and medium-sized enterprises, which may lack the resources to navigate unclear or fragmented enforcement mechanisms.

Without clearly defined enforcement roles, companies face potential delays and additional costs due to duplicative enforcement efforts, all of which could hamper innovation, productivity and growth. This clause effectively hands unchecked power to Ministers, allowing them to designate any person or organisation as a relevant authority without sufficient parliamentary scrutiny. But it fails to address critical questions, such as what qualifications or expertise the designated authority will require. How will conflicts of interest be avoided? Will there be oversight mechanisms to ensure that these authorities are held accountable for their enforcement activities?

The Government have repeatedly claimed that one of the goals of the Bill is innovation, and that they wish to be a leader on trade, yet unclear enforcement mechanisms may send the wrong message to trading partners and investors. Inconsistent enforcement practices could harm the perceived reliability of the UK’s regulatory regime, potentially complicating cross-border trade agreements and deterring foreign investment.

The Government’s Explanatory Notes suggest that the relevant authority could include the Secretary of State or

“other bodies exercising public functions”.

But nowhere in the Bill or the Explanatory Notes is there any mention of specialised bodies—including those represented by the noble Baroness, Lady Crawley, and my noble friend Lord Lindsay—which have clear expertise in product enforcement, safety and standards. We think this omission is striking. Will product safety specialists such as trading standards and accredited safety bodies be considered? Will enforcement fall to entities with deep technical knowledge and understanding of the complexities of product regulation?

The Bill uses the phrase

“other bodies exercising public functions”,

a catch-all term that could encompass almost anyone who engages in some form of public work. In practice, this could mean highly skilled and knowledgeable experts, but it could also mean organisations or individuals with no background in product safety. Could a local administrative body or other government-adjacent organisation whose primary function is entirely unrelated end up being designated as a relevant authority? Despite the Government’s claims of promoting clarity and higher standards, the wording here does the exact opposite.

This is not a trivial matter. The enforcement authority will determine how the rules are applied and the standards by which businesses are judged. Without explicit safeguards, this clause risks allowing enforcement to be carried out by ill-equipped individuals or bodies, potentially damaging the entire framework of product safety. I appreciate that I have ranged far and wide here, but unfortunately, the way the Bill is drafted invites all these questions, so I look forward to the Minister’s responses.

Turning to Amendment 61, also in my name, we of course recognise the importance of ensuring compliance with product regulations, but the manner in which these powers are drafted raises serious concerns about vagueness, overreach and potential misuse. This subsection includes functions such as monitoring compliance, investigating suspected non-compliance and even mitigating the effects of non-compliance. While monitoring compliance and addressing breaches are legitimate, the concept of suspected non-compliance is especially problematic. What constitutes suspicion? Will it be based on clearly defined criteria, or could it arise from arbitrary interpretations by an as yet to be defined relevant authority?

--- Later in debate ---

I hope that, in the period between Committee and Report—with the noble Lord, Lord Fox, and others contributing to this debate, along with the Department for Business and Trade, the IPO and the Department for Science, Innovation and Technology, given its responsibilities for intellectual property—we can have a round-table discussion about what the power in the Bill should look like and how that might be given effect in the months ahead as a strong, pro-innovation measure in the Bill.

[Lord Sharpe of Epsom (Con)]

My Lords, I will be very brief indeed. I have learned a lot from this brief debate and thank both noble Lords for their expert explanations. As a novice in this subject, I cannot think of a single possible objection, frankly, to either of the amendments from the noble Lord, Lord Fox, and my noble friend Lord Lansley. I hope the Government will welcome these as an example of well-informed common sense and give due consideration to some sort of amendment along these lines. I believe the Government to be sincere in their intention to promote growth and innovation, and it seems to me that both these amendments would, in some form or another, help to deliver that. If the Government do that, we will be supportive.

[Lord Leong (Lab)]

My Lords, I thank the noble Lords, Lord Fox and Lord Lansley, for their Amendments 34 and 35. When I saw the first amendment, I had to go and check what SEPs means. Now, after speaking to officials, I think I know a little bit and I welcome the opportunity to address the issues raised regarding software products that rely on standard essential patents, or SEPs.

These amendments go far beyond the intended focus of this legislation by expanding the scope of regulatory powers. Due to their complexity, the regulation of SEPs should not be reduced to a short provision in a Bill that was not drafted with the intention of regulating in this sphere. Any policy measures need to achieve a balance between rights holders being able to appropriately protect and enforce their rights, and users’ ability to access such technologies and innovations through fair and appropriate licensing forms.

However, I agree with the noble Lords that this is an important issue. The Intellectual Property Office has already engaged extensively with industry and business to determine whether any change to the framework for SEPs is necessary in order to ensure that businesses can license SEPs effectively and fairly. This engagement has included a call for evidence and views, and a questionnaire has been sent out to small and medium-sized enterprises. In response, the IPO has already launched a SEPs resource hub—an information resource that helps to address the very problem the noble Lords have identified. The IPO is also considering whether to consult formally next year on measures, as indicated by the noble Lord, Lord Lansley, and further to improve transparency in the SEPs ecosystem and enable more efficient dispute resolution. Any such consultation would be subject to ministerial decision, and we are currently working on that. In the meantime, I assure noble Lords that the IPO is continuing informal engagement with industry on both this matter and the SEPs ecosystem more generally. I hope that is reassuring to the Committee.

While I agree that this is an important issue, this Bill is not the right avenue to address the problems that the noble Lords raise. I therefore ask that they withdraw or do not press their amendments.

--- Later in debate ---

[Lord Russell of Liverpool (CB)]

My Lords, I will be brief. The noble Lord, Lord Lansley, has made a fairly persuasive case for this. I would hope that to a large extent what he is looking for is already happening fairly systematically as part of good practice in any regulatory authority. Given that it is likely that a large amount of our regulation will probably continue to be broadly in alignment with the EU, it would make a lot of sense for our respective regulatory authorities to be in pretty close contact to make sure that they have, to the extent that it is sensible, the same view and understanding and the same breadth in scanning the different international regulations so that, essentially, they are talking the same language. That would be extremely helpful.

In principle, this is a very good idea. However, it is fine for us, as legislators, to talk theoretically or in detail about statutes and subsections, but the proof is the view business takes of what we are discussing. If business regards this as entirely sensible and something that should be done anyway as a matter of doing regulation well, that is well and good. If it has concerns that this will complicate things further, slow things down and lead to slightly arcane arguments about relative international standards from goodness knows where in the world, I suspect it will not be quite so keen.

[Lord Sharpe of Epsom (Con)]

My Lords, I thank my noble friend Lord Lansley for introducing his amendments so incredibly clearly and expertly. It is obvious that international standards are vital for facilitating global trade. Products that adhere to international standards are more easily accepted across borders. They reduce trade barriers, open new markets for UK business and so on. They ensure that UK products can continue to compete internationally and maintain their high reputation for quality and reliability.

Aligning product requirements with international standards ensures that UK consumers also benefit from high levels of safety. This alignment builds consumer trust, as consumers know that the products they are buying meet rigorous global benchmarks. Amendment 43 specifies that this requires consultation. It is vital that consultation takes place with experts. In principle, we absolutely support the spirit and intent of these amendments.

[Lord Leong (Lab)]

My Lords, I thank the noble Lord, Lord Lansley, for tabling Amendments 38 and 43. I know from when I was on the Opposition Benches that he brings great expertise to this House, debating legislation as varied as the Trade Act 2021, the Procurement Act 2023 and the Bill before us today. His amendments raise important points about the role that international standards can play in domestic product regulation and in ensuring a strategic approach to their delivery and implementation.

Regarding Amendment 38, I reassure the noble Lord that Clause 2(6) enables product regulations to continue to reference international standards to support regulatory compliance, as is the case for medical devices. Provision is already made in current product regulations for the ability to designate a standard adopted by an international standardising body.

We work closely with all departments, including the Medicines and Healthcare products Regulatory Agency, and will continue to work with them to ensure the supply of safe and compliant products. However, each responsible department must individually consider the best approach for its own area.

Before the Secretary of State designates the standard for products regulated under the Bill it is assessed by government. The standard may be designated fully, with restrictions or not at all, depending on how far the standard ensures the relevant product requirements. Therefore Clause 2(6) sufficiently addresses the noble Lord’s concern. There is also no need to specifically reference the ability to designate international standards because that provision is already covered in product safety sector-specific legislation already on the statute book.

--- Later in debate ---

[Lord Fox (LD)]

Briefly, I of course support these four amendments from my noble friends, but I will say a few words on Amendment 56. In a previous group, amendments tabled by me and the noble Baroness, Lady Bennett, on the circular economy and disposal, also touched on these issues and it would be worth while looking at those in conjunction with the amendments from my noble friend Lord Redesdale.

To give a bit of advice to my noble friend, the noble Baroness, Lady Finlay, made some interesting points about it being fulfilment centres rather than the actual online marketplace. In some cases, the supplier is foreign but the fulfilment centre is local. Perhaps there is some advice to take from the thoughts of the noble Baroness, Lady Finlay, on that, as they seemed a way of bridging the issue of the supplier being a long way away in a different country, whereas the people dispatching the item are most definitely here. With those provisos, I reiterate my support for all four amendments.

[Lord Sharpe of Epsom (Con)]

My Lords, I will be very brief. I found that a most interesting explanation of lithium-ion batteries and their various aspects. I confess to not being an expert at all, so it is very clear that I—and, I imagine, the general public—need to be better informed on this. I imagine that regulations will form an essential component of becoming better informed.

It was interesting how the noble Lord, Lord Redesdale, said that he was worried about the scope of the Bill. This Bill will take pretty much anything you like—it is enormous—so I would not have too many concerns about that. I ended up, funnily enough, with a couple of questions, which we can perhaps discuss later. I am curious to know how much of the safety of these batteries is contingent on the way that they are stored, used and maintained. That would be an interesting subject to explore further.

[Lord Redesdale (LD)]

My Lords, it is worth mentioning because we have raised the issue and it is picked up whenever we discuss the danger. The actual danger of good batteries is extremely low. The problem is in the waste stream when they are hit by water or crushed. That is the issue that local authorities have.

--- Later in debate ---

[Lord Sharpe of Epsom (Con)]

Again, I think that my ignorance probably suggests that the public ought to be slightly better informed about that. Maybe they are; maybe it is solely me being ignorant. I do not know.

The other thing that struck me, while I again say to the noble Lord, Lord Redesdale, that I like his Amendment 56, is that surely we need to be a little bit careful about exploding Amazon trucks if they are this unstable. I will leave that thought with him.

There is, finally, a third subset of safety issues that I thought about when the noble Lord was talking about bikes. It is about those, Lime bikes in particular, that are left lying in the middle of the road unexpectedly as you go round a corner—he said, speaking from personal experience.

All these amendments have considerable merit. I am very interested to follow them and will consider supporting them.

[Lord Leong (Lab)]

My Lords, I thank the noble Lords who have spoken, in particular the noble Lord, Lord Foster, for speaking on behalf of the noble Baroness, Lady Brinton. The issue of lithium-ion battery safety is rightly getting a lot of attention and I am grateful for the opportunity to discuss it. I also mention the work of the noble Lord, Lord Redesdale, who has tabled a Private Member’s Bill on this same topic and with whom I have had valuable discussions during the passage of this legislation.

The Government have already taken significant steps to protect people from the dangers posed by products containing lithium-ion batteries. The Office for Product Safety and Standards has been working with colleagues across government and industry to identify the root causes of safety issues associated with lithium-ion batteries and to ensure that steps are taken to protect consumers and remove dangerous products from the market. We are also working with UK businesses to ensure that they comply with regulations. In addition, we have collaborated with fire and rescue services to identify products involved in incidents and have taken the appropriate action when unsafe products are identified.

Since 2022, efforts have resulted in 20 separate product recalls and 22 other enforcement actions for unsafe or non-compliant e-bikes or e-scooters. The OPSS has issued 26 withdrawal notices to eight online marketplaces, two manufacturers and 16 separate sellers to halt the sale of two dangerous e-bike battery models manufactured overseas by Unit Pack Power—UPP—that were discovered during fire and rescue investigations.

In terms of regulatory change, we need to ensure that any regulation is effective at stopping harmful products reaching the market. We also need to make sure that good businesses, which are in the majority, are not undercut by these unscrupulous traders.

The Bill is designed to provide powers across a broad range of products, including lithium-ion batteries. It does not highlight particular sectors that are in need of regulation. Noble Lords will appreciate that a very large range of products are covered by the Bill; therefore I would be hesitant to draw out lithium-ion batteries or specific measures in it. That would also limit our flexibility to work with all interested groups to identify the most effective way to tackle this issue. Today it may be lithium-ion batteries, while tomorrow it may be magnesium batteries, sodium batteries, salt or seawater—all of which may pose some safety features. So we need the flexibility to identify those new products on the marketplace.

Indeed, during Second Reading of the Bill in the name of the noble Lord, Lord Redesdale, a number of Peers highlighted that battery technology is changing. That is part of the reason why the Product Regulation and Metrology Bill works in this flexible way, as I stated earlier. It is to ensure that future regulations are able to take account of developing technologies.

We are, none the less, considering what change will make a meaningful difference to lithium-ion battery safety. My department has commissioned extensive research from the Warwick Manufacturing Group to better understand battery safety, including compatibility issues. This research is being finalised and we expect to publish it in due course. This will help us identify the root causes of battery risks and options to better protect consumers.

We want to take action about these unsafe products. We cannot commit to a timescale as we want to take the right action—but we do want to take action. One area where we have been very clear about the need for action is products sold via online marketplaces. I thank the noble Lord, Lord Foster of Bath, for his Amendment 49—and his well-informed advocacy in this area—that would require online marketplaces to take reasonable steps to ensure that products containing lithium-ion batteries sold on their platform are compliant.

In addition to the action I just mentioned, the OPSS wrote to major online marketplaces earlier this year, expressing concerns about the availability of unsafe products online. The OPSS has issued online marketplaces with legal notices that prohibit the supply of unsafe products. However, while much has already been done to keep people safe, our product safety regulations could go further.

As mentioned at Second Reading, we will use the Bill to clarify and modernise the responsibilities of online marketplaces in secondary legislation. These requirements will build on best practice to create a proportionate regulatory framework where online marketplaces take steps to prevent unsafe products from being made available to consumers. This will help prevent unsafe goods, including unsafe lithium-ion batteries, from reaching UK consumers.

The enforcement provisions in Clause 3 enable the introduction of enforcement powers for the purposes of monitoring and investigating, and securing compliance with product regulations. A requirement for the production of safety certificates that the noble Lord, Lord Foster, seeks as part of Amendment 49 could be implemented using the Bill’s powers as drafted. As I said, we are keen to continue working with noble Lords and others to identify the regulatory work that would be most effective.

Specifically on Amendments 55 and 56 on bikes, e-bikes and lithium-ion battery products sold on online marketplaces, we agree that online marketplaces should take steps to provide relevant information to consumers so that they can make well-informed purchasing decisions. This is also important to bridge the gap between the information consumers see before a purchase online, compared to the high street, where they can see the product and packaging.

In general terms, the Bill would enable us to introduce requirements on online marketplaces, including the provision of specific information, for the purpose of reducing or mitigating risks presented by products or ensuring that products operate effectively.

I thank the noble Lord for raising another important issue where consumer information can be beneficial to provide product traceability. As he discussed with me previously, this might help to deter the sale and assist the recovery of stolen bikes. The Home Office works closely with policing and academic leads to examine what more can be done to tackle the disposal market for stolen goods. We will therefore engage with the Home Office on this topic to explore whether product regulations could contribute to crime prevention. I will ask my officials to organise a meeting with the noble Lord and officials from the Home Office and other relevant authorities.

I also thank the noble Lord for his Amendment 56, which seeks to require online marketplaces to put in place a return policy for products containing lithium-ion batteries for the purpose of appropriate battery disposal. The Environment Act 2021 provides powers for the Government to introduce new requirements on online marketplaces with respect to the take-back of lithium-ion batteries and products containing lithium-ion batteries. Under the existing producer responsibility legislation, producers of industrial batteries, which include e-bike and e-scooter batteries, must take back waste products free of charge on request. Ministers are currently reviewing proposals to consult on reforms to UK batteries regulation before setting out next steps on battery disposal.

At this point, I wish to mention that I have spoken to my noble friend Lady Hayman of Ullock, Parliamentary Under-Secretary of State at Defra. It is clear to me that noble Lords will discuss the issue of disposal of lithium-ion batteries.

I hope this assures noble Lords that the Government take the issue of lithium-ion battery safety extremely seriously. We have already taken enforcement action and are keen to work with all interested groups to ensure that further regulatory change is effective. Consequently, I ask the noble Lord, Lord Foster, to withdraw his amendment.

Before I sit down, I wish to say that my private office has sent an invitation to noble Lords who have expressed an interest in visiting the OPSS. I very much hope they will take up that offer.

--- Later in debate ---

[Lord Fox (LD)]

I will briefly respond to the noble Earl. He is right to raise this issue, which is clearly important; we look forward to seeing how the Government respond to it. There are serious issues that need to be addressed somewhere. As has been observed by the noble Lord, Lord Sharpe, and others, the open nature of this Bill offers an opportunity for things like this to be properly discussed and to be, if not solved in this way, perhaps solved in another way.

[Lord Hunt of Kings Heath (Lab)]

My Lords, it is very good to respond to this debate. I am delighted that the noble Lord, Lord Fox, sees that there is some advantage in the way that we have drafted the Bill.

I thank the noble Earl, Lord Lytton, for raising what is a really important matter. We all recognise that there are failings in the system by which construction products are tested, assured and made available for sale. The noble Earl described his amendment as probing whether the Government are prepared to use the powers in Clauses 1 and 2 to regulate products used in construction. The noble Earl has huge professional expertise. He referred to the BBA and the specific approval given but warned of the risk of misuse; I very much take that point.

The straightforward answer is that we think this issue is very important. We intend to bring forward robust regulatory reforms in order to provide confidence in the construction products regime and to ensure that only safe products are used in buildings and infrastructure. To that end, we also intend to ensure that the testing and assessment of products’ conformity must be undertaken by those who are competent, impartial and effectively held to account. We have committed to working with the sector on system-wide reform, including examining the institutions that play a key role in the construction products regime, so that businesses and, in particular, consumers can have confidence in the products and services they purchase. The proposed new clause to be inserted after Clause 2, through the noble Earl’s Amendment 46, would place a duty on the Secretary of State to use the powers and to make provision for construction products regulations within a year of Royal Assent of the Bill.

I turn now to the Building Safety Act 2022, about which the noble Earl made some interesting points. That Act already includes powers to introduce construction product requirements and regulations. We are exploring how best to use those available powers, including their sufficiency—I take his point on that—as part of considering system-wide reform. He will know that since the Grenfell tragedy in 2017 some action has been taken on construction products, but we know that more needs to be done.

In December 2018, regulations came into force that banned the use of combustible materials in and on the external walls of buildings over 18 metres. The national regulator for construction products was established in 2021 and leads on market surveillance and enforcement of construction product regulation across the UK.

The Government extended the period of recognition of CE marking for construction products in September this year to give the industry sufficient certainty to support supply chains and to allow time to address the inadequacies across the wider construction products regime, but we recognise that this action is piecemeal and does not go far enough. We have confirmed that we will respond to the Grenfell inquiry within six months. We are also committed to bringing forward proposals for system-wide reform of the construction products regulatory regime.

I have listened very carefully to the noble Earl’s analysis of the Building Safety Act and his suggestion that it is not sufficient for our purposes. We are considering this and I will write to him in some detail about the points he has raised. But to be fair to him, I have to say that this Bill does not specifically exclude construction products and that there could be an opportunity to use the Bill powers in the future should we discover that the Building Safety Act 2022 may be insufficient.

I hope that he will accept this as a positive response to the issues he has raised.

[The Earl of Lytton (CB)]

My Lords, I am very grateful to the Minister for that reply and I am certainly prepared to accept what he says in relation to the Government’s intentions. I will need to consider very carefully what he has said, particularly if he is writing to me—I am grateful for that offer. I will consider things in the light of that.

Without further ado and given the hour, I simply beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Foster of Bath (LD)]

My Lords, it is an enormous pleasure to follow my noble friend and the two noble and learned Lords, and I am certain that I will not be anywhere near as eloquent in speaking to Amendment 102 as any of them were. Their amendments all deal with the operation of the Bill in the context of the different Administrations that make up the United Kingdom. My probing amendment—it is just that—aims to seek to understand how the Bill will operate in terms of its applicability and its jurisdiction beyond the borders of the United Kingdom. I thought that it might be helpful to noble Lords if I gave an example not of a product but of the issue that particularly drew me to consider this problem, as I see it.

I am the chairman of Peers for Gambling Reform and I have done a lot of work on the issue of gambling. Some time ago, my attention was drawn to an online image which was very clearly identified as coming from Paddy Power. When I looked at this image, I came to the conclusion that it was in breach of our code of conduct in relation to advertising, set by the so-called CAP. I therefore drew it to the attention of the Advertising Standards Authority and asked it to investigate whether this particular image was in breach of the CAP code. It took very many months and several follow-up letters from me before it eventually came back to me and told me that it was somewhat uncertain as to whether it had the jurisdiction to act in respect of that particular image. In the end, it came to the conclusion that it did not have the ability to act—it was something beyond the territorial powers that it had.

When it comes to this Bill, I have to ask myself the question: if somebody acts outside the United Kingdom, what powers do we have for the appropriate body to be able to investigate the activities of that individual or organisation? Will we be able to call for documents or evidence or require it to come for interviews so that an investigation can take place? I appreciate that in many cases we have a situation where we have an internet provider providing this service, and internet service is at the basis of all this. When I look at the Online Safety Act, I notice that that Act defines the internet service in such a way that it has extraterritorial application. Given that an online marketplace is making use of an internet service, one has to ask whether this Bill has extraterritorial powers. In the case of the Paddy Power image, a solution was found because it turns out that we have reciprocal arrangements with the equivalent ASA body in Ireland and it is now going to look into that case—even though the image used pound signs rather than euros, so it was quite clearly intended for a UK audience.

I have suggested an amendment to ensure that there are extraterritorial powers for the various measures in the Bill. I have no idea whether that is the Government’s intention, but I hope it is because so many of the products come from abroad and so many of the services that enable us to purchase those products are based abroad, even though the firms concerned may well have offices within the United Kingdom. It is a probing amendment and I hope that when the Minister replies to the important issues that have been raised by the three preceding speakers, he will also help me understand more clearly what the Bill has in respect of these issues outside our borders.

[Lord Sharpe of Epsom (Con)]

My Lords, I thank all four noble Lords for their remarks, which I found absolutely fascinating. I agree with the noble and learned Lord, Lord Thomas, that the noble and learned Lord, Lord Hope of Craighead, deals with parliamentary matters with considerable skill, diligence and persistence. It is always a pleasure to follow the noble and learned Lord. I am very grateful for the reference to the Constitution Committee, a subject I have laboured on at some length. It is important that we continue to return to the fact that the Government need to heed the comments of both the committees that opined on this Bill.

Before I go on, I say that I perhaps take a slightly different view of the previous Government’s interactions with the devolved Administrations than the noble and learned Lord, Lord Thomas, and gently remind him, colloquially, that it takes two to tango. When there is a hard-left Government in Wales and a nationalist Government in Scotland they are perhaps not warmly disposed to being enthusiastic interlocutors with a Conservative and Unionist Government.

The first three amendments in this group have a similar theme, so I shall speak mostly to Amendment 96 in the name of the noble Lord, Lord Fox, which would require the Secretary of State to have regard to Part 1 of the United Kingdom Internal Market Act 2020. We are very proud of our record in helping businesses by reducing barriers for them through that Act, and I pay due tribute to the noble and learned Lord, Lord Hope, for his work on it. The Internal Market Act guarantees that goods, services and qualifications recognised in one part of the UK are automatically recognised across all parts. For businesses, this means certainty, simplicity and reduced administrative burdens, themes that we have explored all evening, and enables them to sell goods and provide services without encountering unnecessary barriers or conflicting regulations. It also allows qualifying Northern Ireland goods to be sold in Great Britain in reliance on the market access principles.

This amendment does not seek to rewrite the principles of the Bill. Rather, it seeks to ensure that its implementation is compatible with the vital provisions of the UK Internal Market Act. The market access principles of mutual recognition and non-discrimination are central to the UK Internal Market Act, as it stops protectionist measures that might favour goods or services originating from one part of the UK over another and safeguards fair competition, fostering a level playing field across all regions.

Our views on prioritising growth and investment and adhering to the provisions of the UK Internal Market Act 2020 are well known; we believe that this measure is necessary to achieve that. I am relatively agnostic as to which of the amendments the Government would wish to look at but some amalgam would clearly be a welcome step forward, so I support the amendments.

[Lord Hunt of Kings Heath (Lab)]

My Lords, this has been a really interesting group of amendments on which to finish our deliberations tonight. I thank the noble and learned Lords, Lord Hope and Lord Thomas, for their Amendment 47; the noble Lord, Lord Fox, for his Amendments 93 and 96; and the noble Lord, Lord Foster, for his Amendment 102. As noble Lords have suggested, the amendments relate to the application of the Bill’s powers in the United Kingdom, particularly in terms of consultation with the devolved Governments; the United Kingdom Internal Market Act 2020; and the issue of the frameworks, including how they would relate to this legislation.

I can give reassurance about the general approach of the Government to their relationships with the devolved Governments and the way in which we will conduct this. However, I want to reflect on some of the points raised by both noble and learned Lords; I will perhaps come back to them between Committee and Report.

The noble Lord, Lord Sharpe, mentioned the constitution. I am very cognisant: I know that both noble and learned Lords, in our discussions on a number of Bills in the past few years, have wanted to ensure that, in the words of the Constitution Committee, if we are to make the union work, the key words are “respect” and “co-operation”. I fully accept that. We believe that we have, in our first five months, begun to reset the relationship between ourselves and the devolved Governments. We want to work constructively with them. For instance, the noble Lord, Lord Fox, mentioned the input from the Welsh Assembly Government. We are considering it very carefully at the moment; my noble friend has also had some fruitful discussions with Scottish Ministers. That is the way we see ourselves going forward in future.

Many of the regulations made under this Bill will concern technical areas in relation to product regulation and metrology. These matters are largely reserved but some touch on devolved areas. I can confirm, and absolutely make clear, that the UK Government will continue to discuss product regulation and metrology matters with the devolved Governments. I am confident that, through this positive engagement, we will be able to reach a position where legislative consent can be gained. We will keep noble Lords updated on progress, obviously, but they will know that these matters sometimes take time. Equally, this is a Lords starter, so we have time over the next few months to ensure that we work in conjunction with the devolved Governments; we want to do that.

On the Sewel convention and secondary legislation, I was a Whip on the Scotland Bill and I remember the discussions involving Lord Sewel. I take the point made by the noble and learned Lord, but it would certainly not be our intention that, because of the convention, we could simply put through secondary legislation without seeking the input of the devolved Governments, certainly Scotland. We would not take forward regulations without engagement with the devolved Governments.

--- Later in debate ---

[Lord Foster of Bath (LD)]

Does it not therefore draw attention to the vital importance of very effective enforcement taking place at our borders? That requires us to look very carefully at the funding and resources of whatever body, or bodies, will be responsible for that enforcement. Does it not also mean that we need to have much clearer arrangements for the specification of the level of risk of different products that come in, so that that enforcement can be done relatively smoothly and openly to our total satisfaction?

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Lord always poses his questions wishing me to say “yes”. I am sympathetic to the points he raised but I cannot commit, and I cannot go further than what I said this afternoon except to say that this is a very important area and clearly something that we as a Government need to strongly reflect upon.

Having said that, I hope that I have indicated to noble Lords that I understand the important issues raised. I have given an absolute assurance from the Dispatch Box that we want to make our relationships with the devolved Governments as effective as possible. It is true that four can play but we hope that we will be able to deliver this and that we will get consent. Again, I would like to reflect some more on some of the tricky legal issues that both the noble and learned Lords raised.

[Lord Hope of Craighead (CB)]

My Lords, I am grateful to the Minister for his response to my amendments and for his assurances on the way forward that he sees on these matters.

I would like to make two points. First, I appreciate entirely that consulting on every single regulation would be a very time-consuming process, and I have seen the extent of to-and-fro engagement that goes on behind the scenes with good will between civil servants on both sides of the border. It is obviously a matter that deserves reflection and I absolutely understand why the Minister would like to take more time to look closely at it.

Secondly, as far as common frameworks are concerned, it always struck me in dealing with this subject that it is a great misfortune that the language chosen to identify them was not as readily identifiable as “internal market”. When you talk about the internal market everybody knows at once what it means but when you talk about common frameworks nobody knows what it means.

The Minister has obviously done some homework and has reassured me he understands the point, but the particular point about common frameworks is that it is a living process. It is perfectly true that there is a list of the frameworks—some 32 of them—but the prospect of having new ones is there all the time. One of the examples is that, in Wales, they are considering diverging from elsewhere on single-use plastics. I may be wrong but our products are developing all the time and each part of the UK might have an idea that it suits them to have a particular regime that they would like to discuss and introduce.

I ask the Minister to bear in mind that it is a living process and we have to make provision for the future. That is what my amendment seeks to do. I chose the words that were indeed the Government’s words in the internal market Act, so it is a system that they were prepared to accept. I am quite prepared to discuss this with the Minister further if he would like to and welcome his promise of future engagement before Report.

[Lord Hunt of Kings Heath (Lab)]

My Lords, of course, I very much welcome that. It is worth just referring to Section 10 of the 2020 Act, which defines a “common framework agreement” as

“a consensus between a Minister of the Crown and one or more devolved administrations”.

I take the noble and learned Lord’s point that “common framework agreement” does not readily come off the tongue but the wording very much sets the tone of the relationship that we want to see developed.

[Lord Hope of Craighead (CB)]

The Minister is right. Consensus lies at the heart of the common framework system. There will not be agreement across the various Administrations without consensus but, where consensus exists, it is a signal that they should be protected against any misfortune on legislation that is across the entire United Kingdom.

Having said all that and with gratitude to the Minister for what he said, I beg leave to withdraw the amendment.