Enterprise and Regulatory Reform Bill

Baroness Clark of Kilwinning Excerpts

Monday 11th June 2012 Commons Chamber

[Vince Cable]

What small businesses usually mean by gold-plating is that they spend a great deal of time filling in forms, ticking boxes and complying with regulatory measures that impede their business activity. If that is the case in this respect, as in others, we are happy to look at it.

Also in a deregulatory spirit, the heritage measures in the Bill implement commitments to legislation made in the Government’s response to the Penfold review of non-planning consents, which aimed to ensure that non-planning consent regimes operate in the most flexible and simplified way. The measures include bringing greater clarity on what is and what is not protected within listing buildings, and they will enable owners and local planning authorities to enter into voluntary partnership agreements to help them to manage listed buildings more effectively.

The measures that I have outlined are designed to improve the business environment and to help to restore the UK economy to health by laying the foundations for lasting recovery.

[Katy Clark (North Ayrshire and Arran) (Lab)]

rose—

[Vince Cable]

I am coming to the end of my speech.

I have acknowledged that legislation by itself will not solve the economic challenges we face, but these measures will help to create a platform for sustainable recovery. I commend the Bill to the House.

--- Later in debate ---

[Katy Clark (North Ayrshire and Arran) (Lab)]

Time restraints mean that I will keep my contribution brief, Mr Deputy Speaker, and address only one aspect of this wide-ranging Bill—the proposals relating to whistleblowing. Of course, the Secretary of State did not address them in his opening contribution, although the Labour Front-Bench team have indicated that they will look at these issues in detail in Committee.

The provisions in this Bill will amend the landmark Public Interest Disclosure Act 1998, which was introduced by the previous Government after many years—decades, in fact—of campaigning by those seeking to have whistleblowing legislation in this country. It put the UK at the forefront of corporate governance legislation at the time of its introduction. The Government’s amendment has the effect of introducing a public interest test into that Act, which I believe will weaken the legislation for anybody wishing to rely on it. I understand that the Government say that they are proposing this amendment in this way in order to overcome a legal loophole, which has resulted in part from the case of Parkins v. Sodexho Ltd. However, those who have been campaigning on this issue, such as Public Concern at Work, are extremely concerned that introducing this proposal in this way will weaken the legislation for everybody. There is no doubt that a loophole needs to be addressed in respect of that legal case, but the concern is that the Government’s amendment will not address it and instead will make it more difficult for anybody wanting to rely on the legislation. There is no doubt that after more than a decade of the Act being relied on in this country we need to look at this area again. There is no doubt that we need to improve the legislation and learn the lessons of experiences over the past decade and more.

We need to look at vicarious liability, which cannot be relied on by people trying to use the 2008 Act. Recently, three nurses in Manchester who were concerned that their colleague had lied about their qualifications were unable to rely on the original legislation because it did not deal with vicarious liability.

Other aspects highlighted by recent employment cases also need to be considered. The Government accept that there are difficulties with certain groups using the legislation, such as students on vocational placements, general practitioners and others. There is no doubt that the scope of the Act needs to be widened. Indeed, we need a separate public interest category, as there is in the United States.

Those who have campaigned on whistleblowing are clear that the Bill is a step backwards. They are calling for a full public consultation—there has been no consultation whatever so far—and a thorough review of the law on whistleblowing. I ask the Government to listen to what those campaigners are saying, initiate that review, look again at the proposal in the Bill, think again, and return with proposals that will strengthen whistleblowing in this country rather than weaken it.