Draft Consumer Rights Act 2015 (Enforcement) (Amendment) Order 2023 Debate

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Department: HM Treasury
Abena Oppong-Asare Portrait Abena Oppong-Asare (Erith and Thamesmead) (Lab)
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It is a pleasure to serve under your chairship, Ms McVey, and to be with Committee members. As the Minister set out eloquently, this instrument amends the Consumer Rights Act 2015 to allow trading standards to exercise its powers fully under the Tobacco Products (Traceability and Security Features) (Amendment) Regulations 2023, statutory instrument 2023/606.

His Majesty’s official Opposition share the Government’s desire to crack down on the organised crime gangs that dominate the illegal market in tobacco products. This illicit trade is partly the product of the cost of living crisis, which is forcing people to seek out savings and driving them into the arms of counterfeiters, smugglers and pedlars of stolen goods. It is also partly a product of high duty rates on cigarettes and other tobacco products. However, those duties have had a positive impact by reducing the number of people who start smoking, and increasing the numbers seeking to cut down and quit. Alongside high-level policy such as the smoking ban introduced by Labour in the Health Act 2006, those duties play a part in reducing the harms caused by tobacco and can be a useful tool in the promotion of public health.

We want stiffer penalties for those who seek to avoid paying such duties, and commensurate powers for trading standards to tackle those who procure, supply, distribute illicit tobacco and profit from the illegal trade. We will not oppose the measure, but I have some helpful questions for the Minister to address, and perhaps take up with officials.

First, the measure has its genesis in the 2020 spring Budget, and a consultation was launched in December that year, so why has it taken until July 2023 for this instrument to come before the Committee? Either this measure is urgent and necessary, or it is not, so why the delay? The Minister may have further information about the background.

Secondly, the Minister refers to the £1 million made available in the 2020 Budget for trading standards’ anti-illicit tobacco projects. The Committee will forgive my cynicism, but I am always wary of Ministers brandishing suspiciously round figures. How was the figure of £1 million arrived at, and does the Minister believe it an adequate budget to tackle a vast, violent and invisible network of smugglers, robbers and street-level distributors?

I can help the Minister a little by sharing the view of the Chartered Trading Standards Institute. It says that there are half as many trading standards officers in local government as there were a decade ago. I am sure the Minister is aware of that. It reports that 2,500 highly skilled trading standards professionals have been lost. Do we have the men and women to do the job?

Finally, what measures are in place to review and assess the efficiency of this policy—for example, the level of fines? The Minister knows that for organised crime, fines are often viewed as a business expense. Far from being punitive, they are priced in, as vast potential profits are to be made. It is often the small fry who get caught and fined, while the crime bosses get away with it. What processes are there to review and assess the instrument that the Committee is being asked to sign off?

We will not vote against the measures, but I hope that the Minister finds my questions helpful and that he will answer them in the same constructive spirit in which they were asked.