Communications Act (e-Commerce) (EU Exit) Regulations 2020

Baroness Wheatcroft Excerpts

Tuesday 10th November 2020 Grand Committee

[Baroness Wheatcroft (Non-Afl) [V]]

My Lords, I thank the Minister for her clear introduction to this short debate. The reason for these regulations is straightforward: when the transition period ends—and that time is frighteningly near—UK businesses in the communications industry will no longer be able to trade in EEA countries, relying on the fact that they comply with UK regulations. These regulations do not change that. They determine that companies from the EEA will no longer be able to rely on their compliance regimes to give them access to UK customers. Instead, they will have to comply with UK regulations. This means that they will have to master the regulations that apply in one more regime. Unfortunately, UK businesses will potentially have to comply with many different regimes in order to carry on trading with the EEA countries.

The Minister assures us that the cost to UK businesses will be minimal. But I wonder whether she can reassure us as to how that conclusion was reached. I understand that there was no consultation about the regulations and no impact assessment was conducted. I know that time is short but, if we are being told that costs will be minimal, we need to know what that is based upon.

Last month, the Minister for Media and Data, John Whittingdale, said reassuringly that

“we do not expect the regulatory regimes to be markedly different in the UK in comparison with other EEA states.”—[Official Report, Commons Delegated Legislation Committee, 20/10/20; col. 4.]

My noble friend the Minister has just repeated this. Those who, like me, regret the decision not to retain membership of the single market would surely shake their head at this comment. Given the expectation of such regulatory alignment in a growing sector, why is this country so set against this principle? It would have allowed continued membership of our most important trading bloc.

The EEA countries may choose to diverge their regulations. While this would not place extra burdens on member states, it would add to the burden on UK companies trading in the EU. Can the Minister tell us how confident she is that this will not be the case and that the regulatory regimes will remain reasonably aligned?

Effective regulatory insight is crucial in this sector. The legislation covers premium-rate phone services. Given that more than 200,000 people a year suffer text message scams—indeed, I was on the receiving end of one only last week—it is important that the Phone-paid Services Authority is given the power it needs to ensure that all companies trading in this sector play by the rules. Ofcom appoints the authority. As the Minister explained, it also has the responsibility for regulating electronic communications networks and services.

As we are asked to approve these regulations, I have one further question for the Minister. Back in September, it was rumoured that the Government planned to install Paul Dacre as the new chairman of Ofcom, which is a very powerful body. The Daily Mail reported it in some depth. As Mr Dacre is editor-in-chief of DMG Media, one might assume that these stories were well founded. Given that the chairman of Ofcom is a public appointment, the news was met with some surprise. A government spokesman insisted that the normal appointment process would be followed and that it would begin shortly. Yet the post does not appear to have been advertised yet. This important individual will play a vital role in ensuring that these regulations are put into practice. Can the Minister enlighten us as to when this appointment process is likely to begin?