Consumer Rights Bill

Debate between Lord Skelmersdale and Baroness Hayter of Kentish Town

Monday 3rd November 2014 Grand Committee

[Baroness Hayter of Kentish Town]

My Lords, this has been an interesting part of the Bill. The heart would be taken out of the Bill were we to listen to the very eloquent pleas made. When it was still a draft Bill I was visited by someone who flew all the way from America on behalf of the US Chamber Institute for Legal Reform who told us that we Brits did not know how to do our own law and should listen to them. I think they have been back a second time since then.

I will say only a couple of things. I have also had a response from the CBI which, again, cleverly managed to get a letter in the Times today. I would point to what I have seen as a draft response to the letter in the Times, which I hope will be published tomorrow, and which makes a couple of pertinent points. Before coming to that, I have to ask whether the CBI really wants businesses that have been proved guilty of running a cartel. All this kicks in once they have been proved of running a cartel or some other equally anti-competitive business and concerns whether they are able to keep the fruits of their crime. That is what those people who do not want an opt-out have to consider. We will otherwise continue with the case that the people who have been affected by the cartel do not get any compensation.

More than that, companies would have to pay back only what they gained by that breach of law, unlike in America, where damages can be three times the compensation owed to consumers. Not only are we not America—because, luckily, we are not America—but this provision does not even have the same basis as the American situation. Our Competition Appeal Tribunal, in which I perhaps have a little more confidence—

[The Deputy Chairman of Committees]

My Lords, I hate to interrupt the noble Baroness in full flow, but I suspect that she might be going on for a few minutes longer, and therefore I must tell your Lordships that there is a Division in the Chamber and that we will not resume until 4.55 pm prompt.

Enterprise and Regulatory Reform Bill

Debate between Lord Skelmersdale and Baroness Hayter of Kentish Town

Wednesday 12th December 2012 Grand Committee

[Viscount Younger of Leckie]

My Lords, I thank the noble Baroness, Lady Hayter, for this amendment, which seeks to establish a CMA consumer panel, and I note her very considerable experience in chairing consumer panels over many years.

Close co-operation between the CMA and consumer organisations will be essential to ensure that the CMA is well informed on issues that cause consumer detriment, and that it takes action in the right areas. Competition authorities are well used to taking account of consumer welfare in their activities and this will be the case for the CMA in particular, given its objective to promote competition in the interest of consumers. This is why we have established SIPEP, a new strategic intelligence, prevention and enforcement partnership, which will bring together key consumer bodies, including Citizens Advice and representatives from Scotland and Northern Ireland, to work together to identify those issues that impact on consumers and collectively agree priorities for enforcement, information and education. These will assist in guiding the CMA’s policies and priorities.

In addition to this, the Bill already has extensive provisions on transparency and consultation with consumers and other bodies. The CMA must consult stakeholders, including consumer representative bodies and the general public, on a range of issues that guide its policy. For example, paragraph 12 of Schedule 4 to the Bill provides that as part of its annual plan, the CMA must consult on its main objectives for the year and the relative priorities of each of those objectives. The CMA must also consult on statutory and non-statutory guidance which sets out much of the CMA’s policy and processes. The super-complaint process, in which the OFT is required to provide a fast-track response to certain consumer bodies, will also be retained for the CMA.

Given the consultation requirements, the new approach to enhanced working between the CMA and bodies across the consumer landscape, and the super-complaint process, I hope that the noble Baroness will consider that the arrangements for consulting consumers are already sufficient and will agree to withdraw this amendment.

[Baroness Hayter of Kentish Town]

I thank the Minister for that response and my noble friend Lord Borrie and the noble Lord, Lord Skelmersdale, for their comments. As usual, my noble friend Lord Borrie goes straight to the point that the name is wrong. Maybe we can negotiate on “consumer forum” or “consumer round table”. However, right as he is on that, wrong are the Government in their response.

Before I turn to the Minister’s comments, perhaps I may say that the comment made by the noble Lord, Lord Skelmersdale, was interesting. It is about whether one person on a board is sufficient to represent all consumers, an issue which the consumer movement has discussed a great deal. It is like being the only woman in a committee and people assuming that you can speak on behalf of all women. When the noble Baroness, Lady Oppenheim-Barnes, was first at meetings—I hope she does not take this badly—she was very often probably the only woman present. Even women of my age are still experiencing that situation now. As the one woman, it was somehow expected that you would speak for all women. It can be the same with consumers. However, as I found on panels, there were BME consumers, rural consumers, old consumers and young consumers, and you need a broad panel, if you like, to reach in, understand and get to a hearing in that way. A middle-class woman such as myself as a consumer rep does not do it, but a much broader-based panel does.

I hope the noble Lord, Lord Skelmersdale, understands that it makes it easier for one consumer representative on a board if there are mechanisms for a much broader consultation.

[Lord Skelmersdale]

My Lords, if the noble Baroness has finished with her remarks on me, does that mean that she intends to withdraw Amendment 24BA—because, if not, she is speaking against herself?

[Baroness Hayter of Kentish Town]

I am certainly not. I am suggesting that you need a person on the board with experience—I will come to that—but, on its own, this is not a sufficient condition for making the board work.

Let me now comment on what the Minister has said. If he expects the partnership to carry out the kind of role that consumer panels have carried out, he does not understand what consumer panels have done. A partnership that comes together once a month, once a quarter—I do not know how often it is going to meet; I think it has met only twice so far—simply would not be able to bring the right level of detail to the work of the CMA. Some of the matters the Minister mentioned are exactly those outside functions which will not be carried out by the CMA but by others.

I think I have touched on the problem of consultation. When it goes outside the family to Which? or Citizens Advice, it is put out in a pristine and finished way rather than at an earlier stage. It does not solve the problem.

We will need to think about this matter and possibly come back to it because it is vital to make this new authority work well.