Enterprise and Regulatory Reform Bill

John Whittingdale Excerpts

Monday 11th June 2012 Commons Chamber

[Vince Cable]

We do see that as part of our mandate; indeed, it is the first item that I will discuss in detail. Specifically to support enterprise, we propose legislating for a green investment bank—that, I think, is the issue that is of concern to the hon. Lady. We propose improving the employment tribunal system and promoting resolution of disputes—that, I think, deals with the first intervention. We propose giving shareholders of UK quoted companies binding votes on directors’ pay; promoting competition through a single competition and markets authority; strengthening powers to address anti-competitive behaviour; and encouraging innovation and investment in design by enabling copyright owners to prevent the importation of replica products.

To simplify regulation and strip away unnecessary red tape, we propose extending the primary authority scheme to more businesses, for one-stop advice; repealing unnecessary regulatory requirements on business; and providing greater powers to time-limit new regulations—that is, to apply sunset clauses to new measures.

[Mr John Whittingdale (Maldon) (Con)]

Does the Secretary of State accept that copyright is the legal expression of intellectual property rights, and is not a regulation? Is he aware of the widespread concern among the creative industries about clause 56, which will allow copyright to be amended by statutory instrument without full parliamentary debate? Will he assure the House that the Government will not change copyright in that way without proper parliamentary scrutiny?

[Vince Cable]

Yes, I can give assurances on that. We will deal with this subject later, but I totally accept the hon. Gentleman’s crucial point: intellectual property rights are a key part of a market economy. They are not “regulation” in the pejorative sense in which we normally refer to it—absolutely not; but we have to strike a balance between access to information and copyright protection. We think we are striking the right balance, and we are proceeding to implement the Hargreaves report, which has many of those ideas at its heart. On a personal level, I introduced the private Member’s Bill that strengthened criminal penalties for copyright theft, so I have a long-standing interest in upholding that legislation.

Let me deal with the first issue I mentioned—the green investment bank. The transition to a low-carbon economy is a very big challenge. Some analysis suggests that there will be demand for more than £200 billion of investment in the next decade to develop the innovative technologies and products that will underpin it. The challenge is all the greater, given the novelty of these markets and the long-term nature of returns on green infrastructure investment, which may deter private sector investors. There is a market failure here that the green investment bank will address. The bank will break new ground in the financing of projects, while demonstrating to the market that such investments can deliver commercial returns.

--- Later in debate ---

[Vince Cable]

I do not think that there is any link between patents and copyrights in this case; they are separate systems of law. The hon. Gentleman will know that in the European Union there is already a unified approach to patents and to copyright, but we are trying to ensure that in the UK context copyright protection is properly enforced. That is the purpose of the changes before us.

[Mr Whittingdale]

The Secretary of State will be aware that in the Hargreaves report a number of the proposals relating to possible extensions of copyright exception are causing real concern in the creative industries. Can he provide an assurance that they will be introduced not by statutory instrument, but in proper, primary legislation?

[Vince Cable]

I am not going to give the hon. Gentleman a very precise answer because I will need to check on the exact legal position. I am aware of the concerns, and he is one of several people who have expressed them. I will endeavour to reply to him in writing to give him the precise answer to his question.

A further set of reforms accelerates the Government’s drive to tear up unnecessary red tape. We inherited over 20,000 separate rules and regulations affecting business in the UK. Cumulatively, this regulation stifles growth and strangles innovation, and in the past two years we have launched a concerted drive to tackle the problem. We introduced the one in, one out rule to stem the flow of regulation to business. The aim of one in, one out is not only to force regulating Departments to deregulate more but to change the Whitehall culture to encourage Departments to use regulation only as a last resort. Under the red tape challenge, 20 regulatory themes have been launched for comment on the website, involving more than 3,700 regulations. Decisions have been announced by Ministers on 1,500 of those, of which well over 50% will be scrapped or improved.