Groceries Code Adjudicator Bill [HL]

Debate between Baroness Randerson and Lord Teverson

Thursday 28th June 2012 Grand Committee

[Baroness Randerson]

My Lords, I shall speak to Amendment 111A, which would amend Clause 19 by removing subsection (5) and replacing it with a new subsection. This concerns the same issue of the flat-rate levy. Clause 19(5) specifies that it should be the same for all retailers unless the Secretary of State decides otherwise and makes an order that allows it to reflect expense and time. My amendment does away with the first phase of the flat-rate levy. It is on very much the same ground as other amendments in this group. Mine would enable the Secretary of State to decide the criteria that should be applied for a variable levy.

I repeat what I said on Amendment 87C, which referred to this issue. There is a basic problem in that a flat-rate levy will not change behaviour because there will be no reward to retailers for avoiding getting into trouble and behaving well. We need to start on a strong footing and, as the noble Lord, Lord Knight, has just said, on an equitable footing that reflects the size of the different retailers. I am conscious that the Minister has said that she will deal with this issue when she responds to this group of amendments.

[Lord Teverson]

My Lords, I shall speak to Amendment 114, which is very straightforward. Under Clause 19(5), the Secretary of State must make an order to allow the adjudicator to differentiate. My noble friend Lord Razzall and I believe that the adjudicator should have this direct ability. Again, we have this indirect method of making decisions through the Secretary of State. I am sure that the Secretary of State has far more important things to do than decide the specific division of the levy among the small population of large retailers. If we are to have a serious adjudicator, we should give that person the authority to undertake that task. If we feel that the adjudicator’s decisions are wrong, I am sure that other provisions in the Bill will ensure that that is communicated to him or her.