Public Bodies Bill [HL]

Debate between Lord Borrie and Baroness Deech

Tuesday 11th January 2011 Lords Chamber

[Lord Borrie]

My Lords, I support the amendment proposed by my noble friends Lady Hayter and Lord Whitty. I have known this body very well for a long time. It was created in 1975, which was precisely a year before I became head of the Office of Fair Trading. We often had to work together, although I should not say “had to work together”, as it was a pleasure to do so. The NCC operated under the chairmanship of people of different political beliefs, but it always had a strong reputation for the quality of its research and its work and it was beneficial that its influence should be felt at every level of government. It has, as I indicated, had very different chairmanships, including Michael Young, the Labour Peer Lord Young of Dartington; the noble Baroness, Lady Oppenheim- Barnes, who had been a Minister in charge of consumer affairs at the DTI; Michael Montague, the Labour Peer; and not only the noble Lord, Lord Whitty, but the noble Baroness, Lady Wilcox, who is going to reply today. Each of them served Governments of varying political hues, not necessarily with the politics that they adhered to.

The National Consumer Council always researched and campaigned on a variety of consumer issues and we at the Office of Fair Trading certainly found its work and its publications to be of tremendous value. The coalition Government seem to intend—I think that we would all agree that nothing is all that clear at this present stage of flux—that the Office of Fair Trading’s consumer enforcement powers should be transferred to the local authorities’ trading standards services, for which I have the highest admiration. They do an excellent job at the moment and could do more.

The Consumer Direct line will go to Citizens Advice. I do not want to examine closely this evening the problems that this proposal gives rise to, but the abolition of the National Consumer Council or Consumer Focus—with the Postwatch and Energywatch powers that it has been given in more recent years—raises at once the issue of who is to perform the powerful and important high-quality research and advocacy campaigning role, if anyone is. It seems—no doubt the Government have had to search around to see who they can say will take on these roles—that the answer is Citizens Advice. Of course, I share the view of my noble friends Lady Hayter and Lord Whitty that Citizens Advice is something of which everybody in this country, whatever their politics, must be hugely proud. It gives advice across a whole range of things—not just consumer matters but welfare matters and all sorts of things.

However, I noticed recently at a meeting that the chief executive of the charity Citizens Advice—I emphasise that it is a charity—Gillian Guy, whom my noble friend mentioned, has bravely expressed delight at Her Majesty’s Government indicating confidence in Citizens Advice to the extent that it is to be given those extra powers now held by the National Consumer Council. It admits that it will need more finance; that is always more easily said than done, of course. The Minister will correct me if I am wrong but, as far as I can see, Citizens Advice has been given very little reassurance, if any, that adequate finance will be available to provide it with the expertise that it would otherwise lack or the other things that it must need in order to replicate in any way the work of the National Consumer Council.

The Government seem to have ignored the value that the National Consumer Council has in statutory powers and expertise. Consumer Focus and the National Consumer Council have built up expertise and developed statutory powers over the years. The noble Baroness has already raised this point, but will the Government give or be willing to give to a charity the sort of statutory powers that they and successive Governments have been willing to give to the National Consumer Council? Will the Government give a charity statutory powers to demand information from companies, which is essential if that charity wants to investigate the company and its behaviour towards consumers? There is, as far as I can see at the moment, no reassurance on that score at all.

The idea of the National Consumer Council way back in 1975 was very ambitious. It was to give the consumer a voice equal to that of the employer in the CBI and the worker in the TUC—to exaggerate in the manner of the speeches of the day. It was probably always a bit of an overstatement and an overambitious thing to try to achieve, but the National Consumer Council has over a quarter of a century and more certainly done a great deal for the consumer, which would be missing if it disappeared.

Finally—I say this only in passing, because I do not wish to emphasise it—I do not agree with the noble Lord, Lord Whitty, about charities and the third sector perhaps being able to do this work just as well as a statutory body. I doubt it. I would prefer to speak on the basis that I agree entirely with the amendment—namely, that the NCC should not be among those public bodies listed for abolition.

[Baroness Deech]

My Lords, I speak with no expertise but as a down-trodden consumer, which is probably how many people in this House see themselves. I therefore have the greatest admiration for the work that has been done for years by the noble Baroness, Lady Hayter, and others in this House who have fought for consumers. However, things have never been worse. Just look at the past few months. What agony it has been to be a rail or airport passenger, to suffer from the delays in post and from the inefficiencies of our garbage collection, to suffer at the hands of the banks and pension providers. I could go on. It seems to me that the voice of the individual consumer is not being heard; that we need more individual voices, less ideology and fewer vested interests.

This Bill has come under more attack than perhaps any Bill that I remember in recent years. But if it can result in a thorough shake-up and rationalisation of consumer matters, it will be a good thing. Citizens Advice is an institution of which we are all proud and which has been run on a shoe string. There will be even more demands on its services in future years because of the cuts in legal aid. With my legal hat on I can see that the citizens advice bureaux will have an enormously important part to play as more and more people, unable to afford legal advice, go to them. They need every support that we can give them. If there was an undertaking that the 154 staff apparently working for Consumer Focus, and its £13.9 million of funding, were to move over to Citizens Advice, it would offer some reassurance.

In many respects things have changed regarding its lack of statutory powers. Data protection and freedom of information legislation have enabled individuals to find out more than was the case in the past about the way that their consumer affairs are being handled. However, as an outside observer, it seems to me that there are too many bodies in this field. Google and you will find hundreds of consumer panels and consumer advice organisations. Consumer Direct lists about 50 organisations with which it co-operates. There must be room for some rationalisation and saving. There must be a way in which the voice of women, passengers, landlords and tenants—and not so much the voice of politicians, other regulators and so on—can be heard. I would support any move resulting from this Bill that would enable the Government to look—not ideologically but in helping the individual—at the whole field of consumer protection and advice because I believe that things have not gone well for consumers in recent years. If the recession continues and things do not improve, it will be equally bad for consumers who are a very important part of our citizenry. In fact, we are all consumers and need looking after. The Government should take this opportunity to ensure that consumers are cared for individually and should show great respect towards, and support for, Citizens Advice.