Enterprise and Regulatory Reform Bill

Debate between Baroness Crawley and Lord Borrie

Wednesday 12th December 2012 Grand Committee

[Baroness Crawley]

My Lords, as president of the Trading Standards Institute—excuse my cold—I agree very much with my noble friend Lord Whitty that there is a need at this point for precision when it comes to the role and functions of the CMA and the transfer of functions from the OFT. I especially agree when it comes to the funding of the transfer of those functions. There is a lot of uncertainty around that at present. There is a good will and hope but we need some answers from the Minister at this point about both national and local authority funding—the latter is under unprecedented pressure—to ensure that this devolution process operates as best it can and strengthens rather than weakens the role of the consumer. We must have some answers as far as funding of the transfer of functions from the OFT is concerned.

As my noble friend Lord Whitty said, some of the roles of the OFT will go to the National Trading Standards Board. However, as he said, that does not have a statutory underpinning. As far as I can see, it is a new animal in the process of being created. The Minister would help us all if he gave us some idea of the accountability within the creation of the National Trading Standards Board. There is a great deal of work being done, as noble Lords can imagine, to ensure that consumers will continue to be protected to the highest standard. I have nothing but admiration for the people trying to make that work, as far as both trading standards offices and the National Trading Standards Board are concerned, the latter made up of senior trading standards officers working across borders. However, we need some answers from the Minister on both funding and accountability within the board, and some idea of the way in which the Government believe that there can be a cohesive landscape at the end of this process.

[Lord Borrie]

My Lords, I very much agree with pretty well everything that has just been said by my noble friend Lady Crawley. She is the current president of the Trading Standards Institute, which has done a great deal of good over many years, not only in the individual local authorities which it represents but in getting together on a number of matters. That has reached a kind of culmination in the creation of the National Trading Standards Board, whereby it can get together and discuss matters, particularly a scam or whatever it is in the way of anti-consumer activity that is being indulged in. It gets together and ensures that the stronger of the trading standards offices takes up the cudgel and takes the enforcement action.

One of the most remarkable things about the provisions we are dealing with in the Bill is that we are on Clause 22. We know that Clauses 20 and 21 create the new authority and refer to the amalgamation of the Office of Fair Trading and the Competition Commission. Yet whereas on competition matters the new authority clearly has the powers to deal with anti-competitive activity, the Bill does not deal with the considerable number of powers which the Office of Fair Trading has built up over the years. They are left in limbo. Therefore, there is a great deal of uncertainty, except on the basis of government statements—it is not in the Bill. Only in government statements have we got some idea of who is to do the advocacy for the consumer and who is to do the other matters that my noble friend Lord Whitty has referred to in Amendment 24ZB—consumer education, consumer advice, consumer advocacy and the enforcement of redress.