(1 day, 22 hours ago)
Public Bill CommitteesI thank my hon. Friend for that clear and important intervention. She is absolutely right: this is an opportunity to create incentives for growth and to position the UK as a global leader in innovation. We all know that we must continue to innovate. We want the UK to be at the forefront for so many possible emerging markets. We must do everything we can to support that. I urge Members to support the amendment.
Economic growth is, as we are all aware, the No. 1 mission of the Government. The Bill will support growth by giving the Government the flexibility to ensure that regulations are tailored to the needs of the UK and can respond to global developments. It will ensure that regulations work effectively for businesses and consumers, and will continue to do so in future. We will empower businesses to have the certainty that they can invest and innovate.
I have to take issue with what my Cheshire neighbour, the hon. Member for Chester South and Eddisbury, said: the Bill does not mean dynamic alignment and we have been clear on that. Some of the doom and gloom from Opposition Members about the state of the economy fails to recognise that it grew by 0.5% in February, and that we are currently second in the G7 countries in terms of growth predicted for this year. There are some positive aspects on the economy.
In terms of innovation, we of course now have the Regulatory Innovation Office under the auspices of Lord Vallance, who I think is doing some excellent work, particularly in the areas of AI. In terms of the shadow Minister’s references to AI, AI will become relevant in this particular Bill only when it is actually manifested in a tangible product. I understand that fridges are a good example of where AI and tangible consumer products actually come into play. I am not quite sure how that works in practice, as my fridge does not talk to me, but I believe that some do, and are quite smart at working out when someone has run out of products.
(1 day, 22 hours ago)
Public Bill CommitteesClause 2 clarifies the power given under clause 1, specifically what types of requirement the product regulations may cover. It enables regulations to specify the requirements that products to be marketed or used in the UK must meet. That will ensure that the UK can maintain high levels of product safety and compliance, support economic growth, and remove unsafe or non-compliant goods from the market.
The requirements may cover a range of activities related to products, and the list in clause 2 is not exhaustive. It includes, for example, how a product is marketed, how it is assessed, how it is installed and how it is manufactured and packaged. It also allows regulations to set requirements on the components of products, whether tangible or intangible. In that way, although the Bill relates to physical products, regulations may address the effects of intangible components, such as artificial intelligence software, on the risks that a physical product may present.
In terms of who it affects, the clause allows the regulations to set obligations on manufacturers, persons who market or import the products, online marketplace operators and other actors involved in the product journey. Thus, all actors involved in the product’s lifecycle, and therefore the product’s safety, may be covered by the regulations. Members will be aware of the breadth of product safety regulations already on the statute book. The breadth of clause 2 is necessary to ensure that all aspects of ensuring product safety are adequately covered now and in the future by regulations passed under the Bill.
While the growth of e-commerce models has provided consumers with greater choice and convenience, that cannot be at the expense of consumer protection or undermine compliant businesses. The rapid expansion of e-commerce has also brought significant challenges to regulatory frameworks, which were not designed with increasingly complex online and globalised supply chains in mind. Today, the sale of unsafe products to UK consumers via online marketplaces is a significant problem that has led to serious harm and fatalities. The clause will allow the Government to respond to those modern challenges by explicitly recognising the role of online marketplaces in ensuring that products sold via their sites are safe, while enabling businesses to innovate and grow.
We intend to use the powers in the Bill to clarify the responsibilities of online marketplaces. We will build on best practice to create a proportionate regulatory framework for online marketplaces to prevent non-compliant and unsafe products being made available on their sites, to ensure that sellers operating on their platform comply with product safety obligations, to provide consumers with appropriate information, and to co-operate with regulators, such as by establishing processes to remove unsafe products from the market quickly.
The Government will develop the details of the requirements with consideration of the practical implications and through stakeholder engagement and consultation before they are implemented via secondary legislation. The affirmative procedure will also apply when imposing product requirements for the first time on online marketplaces. This will ensure that the first regulations imposing new obligations on providers and platforms are subject to debate and appropriate parliamentary scrutiny.
As Members will be aware, currently we recognise certain EU product requirements, such as conformité Européenne marking, to support the interests of UK businesses and consumers. The clause will ensure that where the EU makes changes to product requirements, including those we recognise, we are able to recognise those changes where it is in our interest to do so. This would offer businesses the choice to use either the CE or UKCA marking to place a range of products on the GB market, helping them to avoid duplication of costs without compromising on consumer safety. The clause also enables the UK to end recognition of EU requirements where that is in our interests. The UK being able to respond to changes made by the EU to product requirements that we recognise will allow us to give businesses the regulatory clarity they need.
I thank the Minister for his remarks. If he says that these things will be done if they are in the country’s interest, what is the problem with bringing that back to the House to be debated and agreed? The problem we have, Ms Vaz, is that Ministers are to have discretion to decide what is in the country’s interest, when we think that should be for Parliament to decide.
I understand the point being made. We have already made it clear that there will be a number of occasions when we bring regulations under the affirmative procedure—for example, when a new power of entry is created; when regulations are disapplied in the case of an emergency; when a criminal offence is created or widened; when information sharing provisions are introduced; when cost recovery procedures are established; where changes are made to primary legislation; when the definition of an online marketplace is amended; when requirements relating to the marking of products and online marketplaces are introduced for the first time; when requirements on persons who control online marketplaces are introduced for the first time, and so on. I suggest that there will be ample opportunity for Parliament to have its say and scrutinise regulations made under the Bill.
Finally, I turn to the technical standards that will be developed or updated. Technical standards set out practical ways in which a requirement may be met, to help manufacturers in meeting their obligations. Currently, they can be used to demonstrate compliance with a particular product requirement, and are often prepared and adopted by recognised bodies such as the British Standards Institution. The reference to standards in clause 2 makes clear that regulations will maintain this practice, and that will therefore help to provide clarity to manufacturers and traders on how to comply with regulatory requirements through the use of these standards.
I am glad that the shadow Minister is keen to hear from me. I can, I think, explain the power in subsection (6); it refers to subsection (3)(c) and (d), which cover compliance with metrology regulations and mitigating the effect of non-compliance with metrology regulations. This provision is about making sure that those delivering and producing those products are doing so accurately and in compliance with the law. By its nature, subsection (6) has to be broad, but it has to be seen in the context of subsection (3)(c) and (d), which explain the context in which that power would operate.
As the shadow Minister said, the argument here is similar—it is possibly identical—to the one we had earlier about the powers. As I said earlier, enforcement authorities include the Office for Product Safety and Standards, local authority enforcement officers, the Health and Safety Executive, and the Office for Nuclear Regulation. We need to ensure that these bodies can enforce in a targeted way, with the relevant requirements created by these regulations, which set out clearly what those powers do, and they must do so while fulfilling a public function, as set out in clause 6(2) and clause 3(2), which we debated earlier.
It is still not entirely clear from subsection (3)(c) and (d) what that “something” is. Rather than just referring to those provisions, will the Minister clarify what “something” means, instead of referring it back to the relevant authorities, when we still do not know exactly what they will be required to enforce?
I refer the hon. Member to clause 5(5), which talks about quantities, goods and units of measurement, which is the broad ambit of the areas where these powers will apply.
Amendment 29 seeks to prevent regulations made under the Bill from creating product regulation and metrology enforcement powers and functions. At present, product legislation provides a patchwork of enforcement powers across numerous pieces of legislation. That has caused complexity over the decades, so we are seeking to introduce new enforcement powers that are able to meet changing demands without the continuous process of layering that we have seen in recent decades, which has caused confusion and added complexity to the current framework.
As I mentioned earlier, there is precedent for including enforcement powers within regulations, including in the Toys (Safety) Regulations 2011 and the Personal Protective Equipment (Enforcement) Regulations 2018. I believe that the issues in this debate are the same as those that we discussed earlier; therefore, I invite the shadow Minister to withdraw her amendment.