Product Regulation and Metrology Bill [ Lords ] (First sitting)
Debate between Justin Madders and Harriett BaldwinTuesday 13th May 2025
(1 day, 16 hours ago)
Public Bill CommitteesRead Full debate Product Regulation and Metrology Bill [HL] 2024-26 View all Product Regulation and Metrology Bill [HL] 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 13 May 2025 - (13 May 2025)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
Thank you, Sir John—and what a lengthy title. I hope that is not a portent for the rest of the day. It is a pleasure to see you in the Chair this morning. I thank all Members and officials for helping us to examine the Bill.
The Bill, as the title suggests, is a little dry—as dry as the weather, possibly—but it is very important in underpinning product safety in this country. I am sure that by the end of the Committee we will all know a little more about product safety, with the possible exception of my hon. Friend the Member for Erewash, who is the first metrologist to be elected to this House. I am sure he will give the Committee the benefit of his experience, which we are all looking forward to.
I thank the shadow Minister for her introduction. She has cut to the heart of one of the central arguments that we will no doubt be having over the next few days, on the importance of the powers to keep people safe and to ensure that the right level of scrutiny is applied to regulations made under the Bill. The Lords have made a number of changes to get that balance right.
Our product regulation and metrology framework is extensive and highly technical. It extends to dozens of regulations and thousands of products in a huge range of technical detail. The Bill’s powers will allow us to keep that extensive body of regulation up to date. We need to make sure that regulation can be modified to reflect new evidence of risks, such as new chemical ingredients in cosmetics. We also need to keep it more substantially updated as business models and products change, not least to reflect the growth of online marketplaces, which I am sure we will debate in due course. The shadow Minister’s amendments 14 to 16 would strip out the power to do that in clause 1(1).
Clause 1(1) contains the Bill’s central power to ensure that product risks can be mitigated, to ensure that products operate effectively or efficiently and, of course, to ensure that products operate accurately. It is vital to ensuring that our product regulation framework can adapt, keep consumers safe and give them confidence that what they are buying is safe, which we think is very important. Removing subsection (1) would leave our product regulation framework frozen in time.
Of course, it is important that Parliament has appropriate scrutiny of the powers—no doubt we can all trade quotes on the various things we have said about the importance of parliamentary scrutiny. However, it would not be a good use of parliamentary time to require primary legislation or affirmative procedure debates for every single change in the regulations, no matter how small and technical. We have listened to the concerns of the DPRRC and the Lords Constitution Committee and have already amended the Bill to improve parliamentary scrutiny. We have increased the number of areas where the affirmative procedure will operate, such as when we impose product requirements on a new category of supply chain actor, and removed most of the Bill’s Henry VIII powers.
Dame Harriett Baldwin
The Minister refers to the Government’s decision to pursue so many skeleton powers in the Bill, and says the Secretary of State now disagrees with what he said back in 2018. Can the Minister elaborate on what has happened in the real world to cause the Secretary of State to have such a damascene conversion?
Justin Madders
I am not able to read the Secretary of State’s mind, but this debate is about a different area of law from the one the Secretary of State was talking about. I refer the hon. Lady to one of her colleagues, the former Minister, the right hon. Member for Beverley and Holderness (Graham Stuart), who said:
“It is critical that that power operates in that manner to ensure that legislation that sits on the UK’s statute book is able to keep pace with scientific and technological developments, so that we continue to uphold our high standards as well as ensure laws remain tailored to best suit the UK’s needs. Without that power, it would take a significant amount of parliamentary time for the Government to bring forward bespoke proposals and consider each amendment on a sector by sector basis.”––[Official Report, Retained EU Law (Revocation and Reform) Public Bill Committee, 29 November 2022; c. 260.]
That is essentially the argument. I served on that Public Bill Committee, which accepted that there is a need for a degree of delegated power, but we have gone further. We have published a code of conduct setting out statutory and non-statutory controls to ensure that product safety regulation, now and in the future, is proportionate and evidence based, and takes into account the views of relevant stakeholders.
It is not the case, as was suggested by the hon. Member for Bognor Regis and Littlehampton, that this has all taken place behind closed doors. The code of conduct is a very clear public statement, there has been relevant engagement and consultation with stakeholders, and the affirmative procedure will be applied on a number of occasions. It is about getting that balance right.
I note the shadow Minister’s generous comments about the current Secretary of State being a benign individual; I hope her comments also apply to the Secretary of State’s immediate predecessor. It is worth pointing out that similar product safety powers have existed for almost 40 years in the Consumer Protection Act 1987. I do not believe there has been any occasion on which a Secretary of State, of any political persuasion, has used the powers in a draconian or whimsical way.
The shadow Minister described the powers in the Bill as “extraordinary.” I am afraid they are actually rather ordinary in the sense that, to my reckoning, over the last decade the DPRRC has described some 19 Bills as either wholly or partially skeletal. Of course, the shadow Minister will be aware that all those Bills were introduced when her party was in government.
It is entirely normal for Bills to have a degree of delegated powers, particularly within important areas of technical detail where there is a need to act quickly. It is about getting the balance right. We need to ensure that the product regulation framework is agile, up to date and able to protect consumers and businesses effectively. We have taken great care, and we have listened to get the right balance between delivering that objective and ensuring appropriate parliamentary scrutiny on the exercise of the powers. I therefore invite the shadow Minister to withdraw her amendment.
Dame Harriett Baldwin
I listened carefully to the Minister. If I heard him correctly, he basically said that these kinds of skeleton Bills exist, and therefore, despite the objections of his Secretary of State in the last Parliament, he will persist in supporting legislation that continues this practice, which has been so soundly described in the other place as unacceptable in our democracy. The Opposition believe the principle is so important that we will press our amendment to a Division.
Dame Harriett Baldwin
We did not hear anything from the Minister to reassure the Committee on the fundamental points that we have been making throughout the debate. The Bill gives unfettered powers to the Secretary of State, and it is openly acknowledged, both in the Bill and in the impact assessment, that the powers could be used to dynamically align us to EU regulation.
We have tried to be constructive by tabling a range of amendments that would give a more prominent role to parliamentary scrutiny and would give the legislature significant oversight of how the Secretary of State uses the powers. The hon. Member for Chippenham also tabled an amendment that would enable the sharing of further information with voters at the next election. I think that the voters of Knowsley, of Birmingham Northfield and of Worsley and Eccles will want to know how their Secretary of State used the powers in this Trojan horse surrender legislation. They will want to know what the impact has been, as judged by experts such as economists and by people who really know their trade.
Justin Madders
I was at pains to explain why the shadow Minister is wrong in her analysis of the effect of the Bill. It has essentially the same powers as in last year’s regulations, which allow us to take decisions on a case-by-case basis. Why does she insist on saying that this is some sort of Trojan horse?
Dame Harriett Baldwin
It is accepted in the impact statement that that is one potential use of the powers, but if the Minister believes that, he will want to support our amendments in this group.
Sir John, I understand that because amendment 14 fell, we were unable to divide on subsequent amendments in the first group. In this group, however, I believe that we can divide the Committee on more of the amendments individually. I seek your guidance on how many amendments in this group we can divide the Committee on.
Dame Harriett Baldwin
It is important to highlight the excluded products in the schedule. The powers that the Committee has just agreed to give to the Secretary of State will not cover food, plants, animal by-products, products of animal origin, aircraft, components of aircraft and radio equipment. Importantly,
“unmanned aircraft designed or intended…for use in play by children under 14 years old”
are not excluded. My eight-year-old grandson was given one of those for his birthday; I am reassured by the fact that, under the schedule, his little radio-controlled aircraft will be something that can be regulated. There are also some exemptions for military equipment and, furthermore, medicines and medical devices.
These exemptions are worth highlighting on the record because, in the line-by-line scrutiny of the Bill, we should appreciate that questions about food, phytosanitary products, medicines, military equipment and radio spectrum products are incredibly important, particularly in relation to trade agreements. When we discuss some of the clauses as part of the line-by-line scrutiny of the Bill, those things must be separately considered. It is notable that some of those product lines were ones that were not affected by tariffs when—and I quote —“liberation day” in the United States was announced. It is very important that there is clarity in the legislation. We have not tabled any amendments to the schedule, but it is worth highlighting that what we have been talking about today does not cover those product lines.
Justin Madders
The shadow Minister has helpfully read the list of sectors excluded from the schedule, so I will not repeat it. However, it is important, when a Bill has powers of this nature, that we are clear about what they do and do not relate to. As I think Members will appreciate, those excluded sectors will have other regulatory domains, which will refer to them. It is important that we are specific about what the Bill relates to, and that is the purpose of the schedule.
Question put and agreed to.
Schedule accordingly agreed to.
Clause 2
Product requirements
Product Regulation and Metrology Bill [Lords] (Second sitting)
Debate between Justin Madders and Harriett BaldwinTuesday 13th May 2025
(1 day, 16 hours ago)
Public Bill CommitteesRead Full debate Product Regulation and Metrology Bill [HL] 2024-26 View all Product Regulation and Metrology Bill [HL] 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Public Bill Committee Amendments as at 13 May 2025 - (13 May 2025)
Justin Madders
That is not correct. There are a number of opportunities for debate under the affirmative procedure, and we have set out in the Bill the triggers that would allow that, so there will be plenty of parliamentary scrutiny. The amendments do not reflect what the Bill actually does and seek to paint it as a project, which it simply is not in reality. I therefore ask that they be withdrawn.
Dame Harriett Baldwin
I would like to respond before I divide the Committee on this amendment. I seek your advice, Ms Vaz. The previous group contained amendments 21, 5 and 7, which relate to clause 2, and we may also want to get the Committee’s point of view on them.
The Minister’s reluctance to make this innocuous change to the Bill speaks volumes. I am not the only one who thinks that: the Delegated Powers and Regulatory Reform Committee said in paragraph 4 of its 15th report that it is “deeply concerned” that
“the delegated powers in the Bill give Ministers maximum flexibility to choose the direction that the law in this area will take, including making potentially politically contentious choices about the degree to which our domestic laws on product regulation should be aligned with EU laws”.
By not accepting the amendments, I am afraid the Minister compels me to test the will of the Committee not only on these amendments but on amendments 21, 5 and 7, which we discussed in the previous group.
Question put, That the amendment be made.
Justin Madders
I apologise—I had not realised. I will try to slow down.
Clause 2 is a vital part of the Bill: it will ensure that the UK has a comprehensive framework for regulating products sold on its markets and provides the flexibility to recognise global standards and maintain the highest safety and quality requirements for consumers and businesses.
Dame Harriett Baldwin
It will not surprise the Committee to hear that, because our very sensible amendments to clause 2 have been rejected, we continue to have significant concerns about it and the extraordinary powers it confers on the Minister. In particular, subsection (7), which we tried to amend, will allow product regulations to provide that a
“product requirement is to be treated as met if—
(a) a requirement of relevant EU law specified in product regulations is met, or
(b) such a requirement is met and conditions specified in the regulations are also met.”
Because of our concerns about those provisions, and because the Committee took the view that it did not want to accept our sensible amendments, I will divide the Committee on clause 2 stand part.
Justin Madders
Amendment 23 would prevent the naming in regulations of “relevant authorities”. That would render enforcement of the Bill impossible, so clearly it is not an amendment that we will accept. Local authority enforcement officers conduct the majority of product safety and metrology enforcement activities, and the Office for Product Safety and Standards is the national regulator. Other regulators are also responsible for enforcement, including the Health and Safety Executive, the Office for Nuclear Regulation, the Medicines and Healthcare products Regulatory Agency, the Office of Communications and the Office of Rail and Road. There is an indicative list in the explanatory notes to the Bill and the code of conduct.
We need to be clear in clause 3 because it is important that the authorities are able to enforce in a targeted way when regulations are created. The Bill places sensible and important restrictions on those who may be named as a “relevant authority”. Only those who are fulfilling a public function will be given powers under the Bill. That is set out in subsections (2) and (3).
Dame Harriett Baldwin
If I understand the Minister correctly, he is saying that “relevant authority” is strictly limited to the organisations that he has already mentioned.
Justin Madders
If we were to limit ourselves to naming organisations in the Bill, we might not have sufficient flexibility in the future. I am trying to indicate the types of body that we would expect to enforce product safety regulations, as they do already.
Amendment 24 would prevent regulations made under the Bill from creating product regulations and metrology enforcement powers and functions. At present, product legislation provides a patchwork of enforcement powers across numerous pieces of legislation, but that has caused complexities and inconsistencies to emerge over decades. The Bill will enable the Government to introduce powers vital to the enforcement of product regulations and will ensure that enforcement powers can meet changing demands, without the continuous process of layering that caused confusion and complexity in the current framework. There is considerable precedent for the inclusion of enforcement powers in regulations, including the Toys (Safety) Regulations 2011 and the Personal Protective Equipment (Enforcement) Regulations 2018.
Amendment 25 would remove powers relating to investigations, which would prevent relevant authorities from effectively monitoring product compliance. Powers to inspect, investigate and dispose of goods are an essential part of effective enforcement. The purpose of clause 3 is to protect the public and ensure a level playing field for businesses. A crucial element of that is ensuring that it can future-proof enforcement against gaps that may emerge following changes in technology, some of which we have already discussed. Technologies such as 3D printing and AI are likely to have meaningful impacts on the supply chain and business requirements, so removing the ability to make targeted provision for investigatory powers in the Bill would undermine the ability appropriately to regulate products involving new supply chain actors and technologies.
There are provisions in subsection (5) on the requirements for warrants to be issued in certain circumstances, and the Bill also limits the criminal penalties that may be implemented for contraventions of product regulations. The criminal penalties imposed under the Bill may not exceed the existing maxima. This is not a massive expansion of powers; it is simply a consolidation of existing laws that gives us additional flexibility to adjust when new products and marketplaces develop, as we expect them to.
Dame Harriett Baldwin
I am not sure that I have heard enough to reassure the Opposition on the subject of who will be a relevant authority, which specific functions will be conferred on that relevant authority and the powers that might be granted to it, so I would like to press the amendments to a vote.
Question put, That the amendment be made.
Justin Madders
I am beginning to wonder whether Opposition Members think that “Capricorn One” was a documentary rather than a work of fiction. We are really entering some quite interesting territory about what evil plots this Government have, which of course is not the case at all.
Amendment 26 seeks to remove the ability to create or widen criminal offences, or to implement civil sanctions, through regulations. The harm caused by breaches of regulations can vary considerably depending on the product sector. Consequently, offences and penalties must be tailored to the specific requirements of a given sector and the seriousness of the breach. The consequences of failing to provide the necessary instructions for a product could be entirely different for a highly sensitive component within a nuclear energy installation than for a lower-risk product. Reducing enforcement flexibility to a series of broad, rigid offences would negatively impact relevant authorities’ ability to enforce proportionately. Attempting to draft very broad offences and penalties in the Bill, to capture requirements in a less targeted way, would actually undermine legal clarity and the principles of the rule of law.
There was talk from Opposition Members about how this would all be done through the back door. The affirmative procedure will apply where new offences are created or widened, so there will be no rubber-stamping after the event. There will be parliamentary scrutiny, as one would expect. We have considered the views of the DPRRC, but we have taken this approach in the Bill because it is not, in fact, unique to it. The shadow Minister said that she was shocked when she saw these subsections. I wonder whether she was equally shocked when criminal offences were created in regulations by the Building Safety Act 2022, the Retained EU Law (Revocation and Reform) Act 2023 or the European Union (Withdrawal) Act 2018. Those all included similar powers to the ones that we are talking about now, but I do not recall Opposition Members expressing shock and dismay at what was happening. Existing product regulations, such as the Cosmetic Products Enforcement Regulations 2013, also contained offences and penalties, further demonstrating that this is not a departure from existing practice.
The Bill has also placed limits on the maximum criminal penalties that may be implemented for contraventions of product regulations. Product regulations made under the Bill will not be able to exceed maximum criminal penalties that reflect the existing maxima. I believe that Opposition Members are making this a far more dramatic issue that it needs to be, and I ask that the amendment be withdrawn.
Dame Harriett Baldwin
Sadly, I have not seen “Capricorn One”. I have already said clearly, on the record, that I have great confidence in the good intentions of the Minister himself and his Secretary of State. However, that is not to say that we should put powers on the statue book that would allow future occupiers of the position to send someone to prison for three months, or to fine them a substantial amount. For those very reasons, I wish to press amendment 26 to a vote.
Question put, That the amendment be made.
Justin Madders
Clause 3 reflects an ambition to streamline and modernise our approach to the enforcement of product regulations to ensure that it is proportionate and effective. We will ensure that the tools available for enforcement are effective so that we may further level the playing field for businesses and provide UK consumers with deepened confidence in their purchasing. Many of the powers contained within existing legislation overlap with one another, which has created a proliferated system that is undermined by its complexity.
The clause will enable the introduction of regulations that consolidate existing enforcement powers. New regulations will implement a set of flexible, proportionate and effective enforcement tools. The new toolkit will continue to cover activities relating to the monitoring, investigation, sanctioning and remediation of non-compliance with product safety regulations. By delivering these changes through regulations, we will be able to flex and adapt to the marketplace quickly. We will be able to ensure that duties can always be enforced, and it is imperative that duties can be enforced without ambiguity.
Through regulations enabled by this clause, we will simplify powers to ensure that they are applicable inland and at the border. We will also ensure that powers are available to enforce duties on all those holding responsibility in the supply chain. Powers should be applicable without unnecessary complexity wherever product regulations require enforcement. Additionally, we intend to augment existing powers carefully with precedented powers such as improvement notices and undertakings, which will provide proportionate routes for resolving non-compliance.
Another power under the clause is one to widen or create criminal offences, as well as introduce civil sanctions for the first time. We have committed to following the affirmative procedure when introducing regulations that seek to use the power to widen or create criminal offences. The power will allow offences to meet the requirements imposed by product regulations. Offences and penalties are already often set out in regulations, so this approach follows precedent.
Finally, the clause will allow the Secretary of State to designate relevant authorities responsible for product regulation enforcement to both ensure flexibility and provide additional clarity. We have included a non-exhaustive list of those relevant authorities in the Bill’s explanatory notes. As I have mentioned, relevant authorities will include those currently enforcing product regulation, such as local authority enforcement teams, the Office for Product Safety and Standards and the Health and Safety Executive. Relevant authorities will have access to the new, consolidated toolkit of enforcement powers that I have described. The clause is necessary for the proper enforcement of the UK’s product safety regime, and I commend it to the Committee.
Dame Harriett Baldwin
Ms Vaz, you will not be surprised to hear that this dystopian picture of unnamed relevant authorities sweeping the land with their powers of seizure, fining and imprisonment is not something that we support, and we therefore oppose clause 3.
Question put, That the clause stand part of the Bill.
Justin Madders
Members on this side of the Committee always enjoy our clause 4 moments.
Clause 4 is an essential part of the Bill, and it is informed by the lessons of the covid-19 pandemic. The then Government had to act quickly during that emergency to ensure the supply of critical products such as personal protective equipment. However, the regulatory easement was made under sections 45C, 45F and 45P of the Public Health (Control of Disease) Act 1984 as no alternative powers were available through the product safety framework.
Clause 4 therefore fills the gap by providing a mechanism to disapply or modify product regulations in a controlled manner for future emergencies, including emergencies that go beyond public health. In practice, the clause will allow the supply and fair distribution of critical goods in short supply during a national emergency, while ensuring greater co-ordination of market surveillance and enforcement activities during these periods.
The Government have also produced a code of conduct on product safety to support the use of powers under the Bill. The code outlines the Government’s proposals for how the emergency powers will work. To summarise a few key points, the code outlines that a derogation will be made available only if there is a serious risk of harm to people, businesses or the environment, and if it is in compliance with the UK’s international obligations. A derogation will be granted only for products deemed critical for the emergency response where demand exceeds supply.
In times of emergency, the Government may temporarily reduce or modify requirements for a product to meet essential health and safety requirements for use in certain settings, provided the market surveillance authority is satisfied with the product’s safety and traceability. For example, in the hypothetical scenario of a national power outage, demand for essential consumer products such as gas stoves, torches or batteries could surge rapidly. If compliant products are in short supply, the Government could use clause 4 to allow UK manufacturers or importers to supply these products, where they meet essential safety standards or other internationally recognised standards, while awaiting UKCA certification.
In such circumstances, the market surveillance authority must also be satisfied that the product still meets acceptable safety standards and can be effectively traced through distribution. This may involve reviewing safety data, in-house test reports or batch numbers and distribution records for traceability.
To be clear, and as Members will expect me to say, the Government will use clause 4 only in emergency situations. Depending on the nature of the emergency, the Government will decide how products can best be fast-tracked on to the market and, where appropriate, implement conditions through secondary legislation for pre-market assessments, consumer protections and time limits. We have also committed to developing a clear framework for how clause 4 will operate in practice, in consultation with stakeholders. This will be developed and delivered through the Office for Product Safety and Standards, and it will be published in due course.
It is also important to highlight that the power is not a carte blanche for bypassing product safety regulation, but rather a targeted response to emergencies. The clause will ensure that, while we speed up the process, essential safety standards are maintained through proportionate measures. Crucially, the exercise of clause 4 will be subject to the draft affirmative legislative procedure, ensuring that any regulatory changes made under the clause are subject to scrutiny by both Houses before coming into force.
In conclusion, clause 4 is a necessary response to ensure that, in future emergencies, the Government can react swiftly to guarantee the supply of critical products while maintaining safety standards. I therefore commend it to the Committee.
Dame Harriett Baldwin
As the Committee reaches its clause 4 moment, Members might be pleased to hear that I will not propose voting against it—[Hon. Members: “Oh!”] I know: a political conversion. I accept that in exceptional times, and unfortunately we have seen a few of those in recent years, the Government need these emergency powers.
I welcome that, in the other place, Lord Leong published the code of conduct on product safety setting out how the Office for Product Safety and Standards expects the emergency powers to work. Will the Minister clarify whether that will include time limiting the period of emergency? How will we know when the emergency has ended? I believe that some products approved during the pandemic are on the market but still have not had their status clarified since the pandemic ended, as anyone would define it. Will the Minister elaborate a little on the time limits for emergency periods?
While the Minister looks at his officials for inspiration, I acknowledge that the pandemic was clearly an emergency, and we have seen a number of situations that could constitute an emergency. We will be able to tell when an emergency has started because of the steps that the Minister set out, but it would be helpful if he could clarify for the record how he would define the end of an emergency, when the powers will effectively end.
Justin Madders
I am grateful for the shadow Minister’s support. As a shadow Health Minister during the pandemic, I had more than my fair share of emergency legislation, and I think it is fair to say that we have all learned lessons from how that process played out. However, I am afraid that her valiant efforts to play for time have not led to my getting the answer I was seeking. My understanding is that there will be some sort of time limit, but it is safer to say that I will write to her. It is important that we are clear.
Dame Harriett Baldwin
We now move on to the enforcement powers in terms of the metrology regulations. I draw the Committee’s attention to the point I made on the enforcement regulations to do with the product regulations, because many of the same concerns exist here. In the case of clause 6(6), there is something that I personally think is the most egregious and extraordinary provision in any legislation I have ever seen. I would call it the “something” provision. Clause 6(6) says:
“Provision described in subsection (3)(c) or (d) may include provision conferring power on a relevant authority by notice to require a person to do or cease to do something.”.
Has this House, or this Committee, ever seen something so broadly defined? I am interested to hear whether the Minister is able to define “something”. It astonishes me that we are sitting here looking at legislation that includes provision
“conferring a power on a relevant authority”,
which as we have already heard is not narrowly defined,
“by notice to require a person to do or cease to do something”.
How are we supposed to know what this particular provision is meant to refer to? Amendment 29 would require the Minister to be very clear as to what he means by “something” regarding the powers of the relevant authority in enforcing metrology regulations. That is far too broadly drawn. It is absolutely incomprehensible to the layperson.
Amendment 28 goes back to the points I made in the debate on clause 3 about how we are defining a “relevant authority”. We have heard about the importance of the relevant authority from the hon. Member for Erewash, who spoke extremely well about the range of bodies that could be the relevant authority here—but we do not know, because the legislation is not clearly defined enough. Because we do not know, and because the legislation simply refers to “something”, I am afraid we are nowhere near able to support clause 6, or to withdraw our amendments 28 and 29 to it. The public deserve to know what they might be required
“to do or cease to do.”
The wording is far too broad, I am keen to hear what the Minister thinks.
Justin Madders
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.
Dame Harriett Baldwin
Amendment 30 continues some of the themes around the enforcement powers on product regulation. It leaves out subsection (7), which is on sanctions for non-compliance with metrology regulations. Here again is the amorphous concept of a relevant authority that is empowered by metrology regulations. Subsection (7) talks about the
“obstruction of, or failure to assist or co-operate with, a relevant authority or an inspector;”
and about providing
“false or misleading information to a relevant authority or an inspector.”
With amendment 30, we are seeking clarification on what constitutes non-compliance. Is it if a pub landlord manages to serve someone more than “0.56826125 cubic decimetres”? Any reasonable person would think not, but it appears that with the provisions as they are currently set out under the metrology regulations, that could be considered a case of non-compliance.
By tabling amendment 30, I seek a definition from the Minister of how serious he sees those kinds of infractions as being. Given how busy trading standards can be, how serious an infraction of the metrology regulations would a failure to assist be, as an individual would presumably have exactly the right measuring equipment? I want the Minister to put on record how the extremely severe and onerous provisions in the Bill are to be implemented.
Amendment 31 also seeks to remove subsection (9) from the Bill, which again introduces the idea of criminal offences for underselling or overselling measurements, or for potentially not co-operating with this so-called and widely defined relevant authority. Our concerns about that, as well as about the Henry VIII powers involved, are firmly on the record now, but we want to clarify through amendment 31 the specific offences that might be created or expanded, as well as the civil sanctions that might be imposed.
We want to get the Minister’s sense of how bad it would be if an individual were to slightly overpour a pint. The civil sanctions are very broad and allow the Secretary of State significant powers over our criminal justice system. When new offences are created, it is proper that both Houses have the chance to consider and debate them. We had the same debate on the earlier clause regarding product regulations, and there seem to be the same failures of drafting with the metrology regulations, which is why we have tabled amendments 30 and 31.
Justin Madders
As the shadow Minister said, this debate has a similar theme to earlier ones. It is the case that the harm caused by a breach of regulations will vary tremendously, which is why it is important to have different levels of intervention. This clause actually creates a much broader suite of powers at a lower level for intervention. There will be an ability to require undertakings or civil monetary penalties, and an improvement notice could also be served. At the moment, I do not believe that any of those powers are available in metrology regulations, and it is important that we have many tools at our disposal to ensure that measurements are done accurately.
It would not be helpful or proportionate to spell out every single circumstance in the Bill. We can give an assurance that, where new offences are created or expanded on as a result of the Bill, we have already committed to using the affirmative procedure to ensure that there is parliamentary scrutiny. Of course, many measures in the Bill already exist in various legislative guises, so it is not, in the main, a massive extension of power as is being suggested. I think this is a proportionate and reasonable way to deliver on the Bill’s intentions, and therefore I ask that the amendment be withdrawn.
Dame Harriett Baldwin
I seek the Committee’s decision on the amendment.
Question put, That the amendment be made.
Justin Madders
Clause 6 reflects an ambition to streamline and modernise our approach to the enforcement of metrology regulations, in the same way that clause 3 seeks to do for the enforcement of product regulations. We will ensure that the tools available for enforcement are effective and proportionate so that we may further level the playing field for businesses and provide UK consumers with deepened confidence in their purchasing. Many of the metrology enforcement powers in existing legislation overlap with one another, which has created a proliferated system that is undermined by its complexity.
As for product regulations, clause 6 will enable the introduction of metrology regulations that consolidate the existing metrology enforcement powers. New regulations will implement a set of flexible, distinct and efficient enforcement tools. That toolkit will continue to cover activities relating to the monitoring, investigation, sanctioning and remediation of non-compliance with metrology regulations. By delivering these changes through regulations, we will be able to flex and adapt to the marketplace—for example, ensuring that duties can always be enforced even when changes are made by regulations. It is imperative to ensure that all duties imposed may be enforced without ambiguity.
We intend to carefully augment existing enforcement powers with precedented powers, such as improvement notices and undertakings, which will provide proportionate routes for resolving non-compliance. Another power under this clause will widen or create criminal offences, as well as civil sanctions. As clause 3 does for product regulations, so the power in clause 6 will allow offences to fit the requirements imposed by metrology regulations. The clause also provides that metrology regulations may provide for the use of civil sanctions, including fines for certain offences. That power will allow offences to proportionately meet the requirements imposed by metrology regulations. Offences and penalties are already often set out in regulations, so the approach follows precedent.
The clause will allow the Secretary of State to designate “relevant authorities” responsible for metrology regulation enforcement. To ensure flexibility but provide additional clarity, we have included a non-exhaustive list of those relevant authorities in the Bill’s explanatory notes. Relevant authorities will have access to the new, consolidated toolkit of enforcement powers that I have described. The clause is necessary for the modernisation and enforcement of the UK’s metrology regime.
Dame Harriett Baldwin
For the same reasons that we opposed clause 3 on enforcement, we would like to divide the Committee on clause 6.
Question put, That the clause stand part of the Bill.
Justin Madders
This clause relates to the collection of data and information that relevant authorities would undertake as part of their usual activities in support of ensuring that products are compliant with product and metrology regulations. Data collection may be instructive or informative for product safety and compliance, or in support of activities in respect of metrology.
The clause seeks for information to be shared with those with a legitimate need for access. That will support the identification of potential product risk and the prevention of serious accidents. Targeted action may then be taken in a more consistent way to prevent the same or similar incidents from recurring.
For example, a relevant authority may collate data and information in relation to electrical products that cause fire or where electric shock has been reported. That relevant authority may be able to provide information or data to another authority as to the frequency of fire incidents or about the use, time or some other relevant circumstance to do with the incident, such as where it has occurred and why.
In that way, a relevant authority, such as the Health and Safety Executive or the Office for Product Safety and Standards, may be able to discern some hitherto unknown physical characteristic or hidden issue that is relevant to a product’s safety or compliance, and recommend a specific course of action. In those circumstances, there is great benefit in the sharing of such information in support of delivering a consistent approach to such products and incidents.
I confirm that personal data is protected specifically by subsection (5), which provides that no metrology or product regulations may be made that require the processing of personal data in a way that would breach data protection legislation. Any information caught by the regulations that identifies an individual is therefore subject to all the same protections it would have in any other context.
I hope that Members can see why it is important that we are able to share data in that way. I commend the clause to the Committee.
Dame Harriett Baldwin
We have not tabled any amendments to clause 7. My earlier point about the vague wording of “relevant authority” also applies to this clause, but the Minister has set out why information sharing under these provisions is necessary. We can see the rationale for that, so we do not intend to oppose or seek to amend the clause.
Question put and agreed to.
Clause 7 accordingly ordered to stand part of the Bill.
Clause 8
Cost recovery
Question proposed, That the clause stand part of the Bill.
Justin Madders
Clause 8 will allow enforcement authorities to recover compliance and enforcement costs. As we know, enforcement can come with significant costs, which are currently borne by the relevant authority taking the action unless costs are awarded by the courts.
The clause will enable regulations to be made to provide for the recovery of costs incurred by a relevant authority’s enforcement activities. The regulations may set out a wide range of provisions, including who will be liable for costs, under which circumstances they will be liable, the amount of the fee, how and to whom it is payable, and the possibility of appeal.
The Consumer Protection Act 1987 makes it clear that the court may award costs to an enforcement authority on conviction for an offence in relation to the contravention of any safety requirements or under a forfeiture order. The clause will allow regulations to replicate that, but it also allows regulations to provide relevant authorities with the power to impose costs themselves.
As we know, cost recovery powers are not new and are used by other regulators, such as the Health and Safety Executive, that employ a fee-for-intervention approach. However, we recognise that Parliament may be particularly interested in the impact of the proposed new powers, and we have therefore ensured that any new regulations made under the clause will be subject to the draft affirmative procedure. I commend the clause to the Committee.
Dame Harriett Baldwin
Again, I think we are in relevant authority territory here. We are talking about imposing fees in respect of any costs, and there are certainly some issues to note for the record. On the collection and recovery of payments, I spoke strongly earlier about fines and the interest payable on outstanding payments and so on. Those are material issues that could result in some very serious situations. Nevertheless, we have not chosen to table any amendments to the clause, mainly because the point about relevant authorities was covered earlier in the Committee’s proceedings, and we do not intend to oppose it.
Question put and agreed to.
Clause 8 accordingly ordered to stand part of the Bill.
Clause 9
Application to existing product and metrology provision
Question proposed, That the clause stand part of the Bill.
Justin Madders
Clause 9 is necessary to give full effect to the intent of the Bill. As Members will know, one of the central needs for the powers in the Bill is to keep our huge range of product regulations updated. That can extend from small changes to regulations to reflect new ingredients or components in a product, to more substantial changes to respond to new threats. The clause ensures that the powers in the Bill can be used to amend existing product regulations, if those regulations could have been made under the powers in clauses 1 and 5. Such regulations will be subject to the usual statutory instrument procedures, either affirmative or negative depending on which provisions of the Bill are invoked. Some of the regulations extend to many pages, covering a whole host of a factors that go into a product and the risk that it presents.
Without the clause, key parts of the powers—such as those to do with enforcement, standards, information sharing and cost recovery—could be used only on a revoke and replace basis. I do not think it would be a good use of parliamentary time to have to revoke and replace entire sets of regulations simply to make one change to a particular provision—not to mention the uncertainty that it may cause business. The clause is therefore technical, but it is a key provision in the Bill. It helps to deliver one of the Bill’s central aims: to allow us to keep our product regulations updated. I therefore commend it to the Committee.
Dame Harriett Baldwin
Clause 9 is one of the clauses that their lordships were particularly concerned about, because of its sweeping Henry VIII powers. Although I have not tabled any amendments to it, I reiterate the point that I made about relevant authorities, and I think it is only right that we test the Committee’s opinion on the clause.
Question put, That the clause stand part of the Bill.
Justin Madders
I am grateful for my hon. Friend’s intervention. Indeed, I understand that that is now the premier proof house in the country, but some of the provisions in the 1868 Act show why we think these Henry VIII powers are appropriate. For example, sections 56, 65 and 66 set out that the Birmingham proof house must meet on Thursdays and that its annual general meeting must be held on the last Tuesday of April. I really do not think that parliamentary time needs to be expended on updating those particular rules.
The last Gun Barrel Proof Act was passed in 1978, when I believe some members of the Committee were not even born. That shows that this is not something that is at the cutting edge of our thoughts, although it does need modernising. It will be subject to the affirmative procedure and will also be subject to consultation with relevant stakeholders.
Amendment 11 would remove the power in the Bill to make amendments to legislation in consequence of the amending or repealing of the Acts specified in clause 10. That is a limited power that enables us to tidy up the statute book by ensuring that any cross-references to those Acts are updated as needed.
Amendment 12 would prevent any regulations made under the Bill from amending any primary or secondary legislation passed under other Acts. That goes to the core purpose of the Bill: to enable us to keep our product and metrology legal framework up to date and effectively protect consumers and support businesses. The power to make consequential amendments is a standard approach to legislation. We need to ensure that new regulations do not duplicate or overlap with existing legislation in a confusing way. That is vital for providing consumers and businesses with clarity.
Amendment 13 would make all regulations under the Bill that amend primary legislation subject to the affirmative procedure. It would also impose a mandatory six-week consultation period and require the Secretary of State to publish a detailed statement in advance of regulating. As I have stated, the Bill already requires the affirmative procedure for regulations amending primary legislation, as set out in clause 12(4)(g). In any such debate, the Government would of course set out why they are regulating, and in the other place we introduced an appropriate consultation requirement and additional triggers for the affirmative procedure.
Some of the provisions currently in primary legislation, such as the detailed requirements relating to gun-barrel proofing or the margin tolerances for packaged goods, are very technical. Our approach has therefore been to apply the affirmative procedure to regulations likely to be of particular interest to Parliament, such as the creation or widening of criminal offences or new powers of entry.
The powers in the Bill are crucial to ensuring that our product regulation framework is agile, up to date and able to effectively protect consumers and businesses. We have taken great care and have listened to concerns, and we now have the right balance between taking powers to enabling us to meet the objectives of the Bill and ensuring parliamentary scrutiny for the exercise of those powers. I appreciate that Opposition Members may not agree, but that is the nature of debate. I ask the shadow Minister to withdraw her amendment.
Dame Harriett Baldwin
What a welcome moment, Ms Vaz—my colleague from the Liberal Democrats, the hon. Member for Chippenham, supports the rationale behind the amendments. The swelling in support for our amendments gives me a welcome opportunity to test the opinion of the Committee on each of them.
Question put, That the amendment be made.
Justin Madders
We have already had a substantial debate on clause 10 as a result of the shadow Minister’s amendments, so I will be brief. The clause repeals specified provisions within the Consumer Protection Act 1987 and the Weights and Measures Act 1985 that may be rendered unnecessary or duplicative by regulations made under the Bill. It also allows regulations to amend the repeal of the Gun Barrel Proof Acts, which we have debated extensively.
The Bill, as introduced, sought Henry VIII powers for the repeal of the Consumer Protection Act and the Weights and Measures Act, as well as for the Consumer Rights Act 2015, but we listened to concerns expressed about those powers and have amended the Bill to eliminate most of them. Instead, we are repealing only the necessary specific provisions in existing measures that are no longer needed on the face of legislation. Commencement orders will be used to repeal those provisions at the right time, through regulations made under the Bill, to remove duplication in the statute book or to provide for regulatory continuity.
The single Henry VIII power that remains in the clause allows us to update the Gun Barrel Proof Acts 1868 and 1978. As I have explained, it is a very focused power to deal with the highly technical Gun Barrel Proof Acts. Subsections (3) and (4) of clause 12 ensure that any regulations that amend or repeal the Gun Barrel Proof Acts will be subject to the affirmative procedure, so the House will have the opportunity to express its opinion. I am sure my hon. Friend the Member for Birmingham Northfield will make himself available for any such debates. I commend the clause to the Committee.
Dame Harriett Baldwin
Given that the Minister just admitted that the Government had to amend the clause in the other place because of its extensive Henry VIII powers, and that some remain in the clause, we would like to divide the Committee.
Question put, That the clause stand part of the Bill.
Justin Madders
Clause 11 sets out the interpretation of key terms used throughout the Bill. Although many terms within the clause are commonplace, the definitions are set out so that the legislation is interpreted as intended, which is critical to the effectiveness of the Bill’s powers, as many of the terms are referenced throughout. It includes a definition of an “online marketplace”, which captures the range of different marketplace business models. We have already debated how that may well change in the future. Online marketplace sales are rapidly growing as a proportion of retail sales, reaching £29.3 billion in 2022, with an estimated growth of 70% between 2019 and 2024. It is therefore vital that product safety legislation captures online marketplaces as key supply chain actors.
We expect supply chains and e-commerce to continue to evolve, with the way in which UK consumers purchase products continually changing in ways that we may not be fully able to predict. Even within the past few years, we have seen new entrants and evolving business models of online marketplaces emerge. For example, since Temu launched in the UK in April 2023, it has amassed more than 11 million UK visitors per month. TikTok Shop launched in the UK in 2021 for businesses to sell products directly from social media videos. B&Q launched its online marketplace in March 2022, with a focus on selling via verified sellers. The proliferation of models is increasing.
It is vital that product safety regulation can keep pace with future changes. Clause 11 provides the power to amend the definition of an online marketplace, which enables the provision to be updated to include any future business models and types of online marketplace that might not be captured within the current definition. The use of the power will be subject to the affirmative procedure because amending the definition of an online marketplace in the Bill through secondary legislation is an important delegated power.
Dame Harriett Baldwin
On the surface, clause 11 looks like just an interpretation clause, but there is one provision about which I would like a little elaboration from the Minister. An online marketplace is defined as
“a service or feature of a service on…a website or part of a website…a mobile application, or…any other platform by means of which information is made available over the internet, which facilitates the marketing of products in the United Kingdom”.
That seems entirely reasonable. The Minister set out some of the new ways in which consumers in the UK are able to buy products here.
Under subsection (2), however, suddenly the Secretary of State
“may by regulations amend this section for the purposes of altering the definition of ‘online marketplace’”.
That strikes me as very strange. Exactly why is subsection (2) in the clause? Suddenly changing the definition of an online marketplace seems like a very wide, Henry VIII-type power. I see that the Minister is receiving inspiration for the answer to my question. I ask him to reply, and then we will decide whether we will press the clause to a Division.
Justin Madders
Inspiration comes in many forms. This is a rapidly evolving way of retailing, so we have discussed it with officials quite extensively. We are seeking to ensure that we are future-proofed for new business models. As I said, there are ways of selling items that I did not know existed until very recently. We want to make sure that, through subsection (2), we have the ability to update regulations when those new models emerge and do not tie ourselves in too much. I agree that definition (c) could cover everything, but we simply cannot predict how things will evolve in the future. It is important to clarify that any extensions to the definition of “online marketplace” will be subject to the affirmative procedure, which I hope gives the shadow Minister assurance that there will be an opportunity for parliamentary scrutiny.
Dame Harriett Baldwin
Will the Minister be kind enough to point out where that use of the affirmative procedure is set out in legislation?
Justin Madders
I will write to the hon. Lady, but that is definitely my understanding. It is certainly in the code of conduct, but we will make sure that we get that clarified for her.
Dame Harriett Baldwin
Ms Vaz, you heard it. For the record, I think I heard the Minister say that it is set out in the code of conduct, which I think means that extensions to the definition would be subject to the affirmative procedure and a consultation. I am hesitant to allow the clause to become legislation without those assurances.
Justin Madders
We will seek to give the shadow Minister assurances. If she is not assured, she can table an amendment on Report.
Question put and agreed to.
Clause 11 accordingly ordered to stand part of the Bill.
Clause 12
Regulations
Amendment proposed: 8, in clause 12, page 12, line 6, leave out from “Act” to “may” in line 7.—(Dame Harriett Baldwin.)
This amendment would make all regulations under this act subject to affirmative resolution of both Houses of Parliament.
Question put, That the amendment be made.
Justin Madders
I beg to move amendment 1, in clause 12, page 12, line 20, leave out “7 to 10” and insert “7, 8 and 10”.
This amendment corrects a cross-referencing error.
Government amendment 1 is a technical amendment to the drafting of the Bill, so I will not take up much of the Committee’s time speaking to it, but simply explain why it is needed. It makes a drafting change to clause 12(4), which lists the regulation-making clauses in the Bill that are subject to the affirmative procedure for statutory instruments. The current drafting includes clause 9 in that list. That is an unintended consequence of a previous amendment inserting clause 9 into the Bill. Unlike the other types of provision specified in clause 12, clause 9 does not confer a power to make a particular type of substantive provision. It specifies that regulations can amend existing provisions, as distinct from making fresh regulations. Government amendment 1 removes that unintended impact by removing the references to clause 9.
Dame Harriett Baldwin
Forgive me, Ms Vaz; it is getting quite late in the afternoon. The Minister’s amendment to line 20 of clause 12 leaves out “7 to 10” and inserts “7, 8 and 10”. Could I clarify what the “9” is a reference to? In which clause is the “9” referenced? I am not following it, because clause 12 seems to have seven subsections.
Justin Madders
I do not have an answer to that at the moment. My understanding is that this is effectively a change in the numbering rather than anything more substantive. It is an erroneous reference, which we tried to bottom out in discussions, but there is nothing dodgy going on here.
Dame Harriett Baldwin
I am grateful that the Minister is as confused as I am by this; I thought it was just the lateness in the day. Perhaps the Minister would be good enough to write to me to point out where the erroneous “9” exists.
Justin Madders
I am happy to do that, and I am sure that we will all be enlightened as a result.
Amendment 1 agreed to.
Dame Harriett Baldwin
The hon. Lady puts some extremely important and valuable questions to the Committee. I look forward to hearing the Minister’s reply.
Justin Madders
I am grateful to the Lib Dem spokesperson, the hon. Member for Chippenham, for raising this important issue. The amendment is consequential on new clause 12, on product recalls. It is important to state first that the Government are reviewing product recalls, as well as the full range of existing enforcement powers available for product safety and metrology, as part of our work on developing new enforcement regulations under the Bill, so the hon. Lady’s concerns are certainly ones we are aware of. Elements of the developing proposals will be included in the broader consultation document that the Government have agreed to publish on Royal Assent.
Furthermore, consumers are already able to make a claim for a refund, repair or replacement under the Consumer Rights Act 2015, and other routes for redress include the Consumer Protection Act 1987, the Consumer Protection from Unfair Trading Regulations 2008 and the Digital Markets, Competition and Consumers Act 2024. Supply chain actors are already under an obligation to report products that pose a risk to the relevant enforcement authority, as identified in legislation under the General Product Safety Regulation 2005 and sector-specific product regulations. Additionally, a publicly accessible, Government-hosted online database of product recalls—the “Product Safety Alerts, Reports and Recalls” database—is on gov.uk.
The exact requirements and capabilities of recall notices will be considered within the wider review of enforcement powers under the Bill. Part of that review will consist of extensive engagement with stakeholders. Placing a six-month time restriction on that—as suggested by the amendment—would therefore only restrict the amount of engagement possible. We do not believe that new clause 12 is needed, so the amendment that seeks to apply the affirmative procedure to regulations made under the new clause is also unnecessary. I hope that the hon. Member for Chippenham is assured that we take the matter seriously and will act on it when the Bill receives Royal Assent.
Justin Madders
Clause 12 is a standard clause that may be familiar to Members. It has two main functions: first, it sets out some general areas that regulations made under the Bill’s delegated powers may provide for—I note, importantly, that that is a “may”, not a “must”; and secondly, it sets out which parliamentary procedure the regulations made under the Bill must follow.
On the clause’s first role, the preceding clauses contain important delegated powers—which we have already debated—and each of those clauses includes some further detail on what can be achieved by regulations made under the relevant powers. It is therefore beneficial to have a general provision in clause 12 to provide some legal certainty over the implications of the regulations made under those powers.
Paragraphs (a) to (e) of subsection (2) are standard provisions that broadly make it clear that the powers can be used to differentiate for different scenarios and to provide detail about how or when things may or must be done. On paragraph (f), I note that legislation does not bind the Crown unless express provision is made in this respect. The Bill does not itself do that; however, it does allow scope for such consideration to be made in future regulations, should that need to be done.
Paragraph (g) enables the powers to be used to make transitional, consequential and saving provisions, which may be used to mitigate unfairness or provide legal certainty—for example, to deal with manufacturing or conformity-assessment processes that started before a change in the law, or where there are remaining overlaps or inconsistencies with existing provisions that need to be amended.
On the clause’s second function, we have sought to ensure appropriate parliamentary scrutiny over the use of the Bill’s delegated powers. Since the Bill was introduced in the other place, it has been improved to address concerns raised by the Delegated Powers and Regulatory Reform Committee, and by peers during debate. In particular, we have broadened the use of the affirmative procedure for future regulations made under the Bill’s powers, to strengthen parliamentary scrutiny.
Subsection (4) expressly specifies a list of certain types of provision that may be made under the Bill. Regulations made under the Bill that include any of these types of provision will be subject to the draft affirmative procedure. That means the draft affirmative procedure will be required for any regulations made under the Bill that provide for the power to enter, inspect and search premises in connection with enforcement of both product and metrology regulations, as provided for by clauses 3 and 6; for arrangements for emergencies, as provided for by clause 4; for the creation of, or widening the scope of, a criminal offence, as provided for by clauses 3 and 6; for any provision made in relation to clauses 7, 8 and 10, which concern information sharing, cost recovery and the amendment of specific items of primary legislation; and for changes connected with amending the Bill’s definition of an online marketplace.
Let me address concerns raised in the other place. The Bill now requires statutory instruments to be laid using the affirmative procedure in additional areas: where requirements relating to the marketing of products on online marketplaces are introduced for the first time; where requirements on persons who control online marketplaces, or on persons who act as their intermediaries, are introduced for the first time; and where requirements on new categories of person under clause 2(3)(e) are introduced for the first time. I confirm that the clause provides that anything not specified as subject to the draft affirmative procedure will be subject to the made negative procedure.
Alongside those changes to parliamentary procedure, the clause has also been amended to include a consultation requirement, thereby reaffirming our commitment to working constructively with interested parties before making any future regulations. I know we have discussed these issues at length, but I hope I have shown that we have taken a proportionate approach, striking the right balance to enable us to deliver the aims of the Bill while providing appropriate parliamentary oversight. I therefore commend the clause to the Committee.
Dame Harriett Baldwin
It is appropriate for me to put on the record how grateful we are for the scrutiny that the Bill received in the other place. We have just heard from the Minister how many changes had to be made because of the concerns raised by the Committee in the other place, which I have quoted extensively in today’s debates. We have covered a lot of ground in terms of concerns about individual clauses, and the Minister has helpfully set out the specific items that are subject to the affirmative as opposed to the negative procedure. Given that we have gone over this ground extensively during the debates on the other clauses, I shall leave it there.
Question put and agreed to.
Clause 12, as amended, ordered to stand part of the Bill.
Clause 13
Extent
Question proposed, That the clause stand part of the Bill.
The Chair
With this it will be convenient to discuss the following:
Clause 14 stand part.
Government amendment 2.
Clause 15 stand part.
Justin Madders
Government amendment 2 is a necessary technical amendment to correct an amendment that was inserted in the other place on Third Reading, to ensure that the powers in the Bill can be used effectively, such as by introducing cost-recovery provisions in accordance with clause 8. Without getting too technical, I understand that this is something to do with financial privilege.
Clause 13 details the territorial extent of the Bill. As we know, the Bill’s provisions extend to England and Wales, Scotland and Northern Ireland. The Bill’s extent means we can introduce regulations that reflect the realities of the UK market—that is, businesses and consumers can buy and trade most products in all parts of the UK. Having regulations that help to protect consumers and provide clarity and certainty for businesses about their obligations is an important part of maintaining a well-functioning UK market.
The Government have been clear in their intention to ensure that the devolution settlements are respected in both principle and practice. Indeed, we have tabled a new clause that will place a statutory requirement on the Secretary of State to obtain the consent of the devolved Governments where regulations contain provision within their devolved competence. We will probably debate that on another day.
Clause 14 is, I hope, a non-controversial clause. It details that the Bill will come into force with immediate effect on the day on which the Bill is passed, with the exception of section 10(1) and (3), which will be commenced by regulations at a later date. This is typical for Bills that contain delegated powers. For this Bill, it will allow the UK to start making proactive choices about product regulation through laying statutory instruments soon after Royal Assent.
The Government intend to take action to modernise and clarify requirements for online marketplaces. That will improve the safety of products sold on their platforms to UK consumers. The Bill’s immediate entry into force will also allow the UK to proactively choose how to respond to the upcoming changes to EU laws that we currently recognise—it has been a while since we mentioned the EU, but I am glad we got another reference in. This will provide industry with regulatory stability and certainty, and support economic growth.
Finally, clause 15 is a non-controversial clause that sets out the Bill’s short title. It provides a more convenient name for the Bill. This is in addition to, and does not replace, the long title. I therefore commend amendment 2 and clauses 13 to 15 to the Committee.
Dame Harriett Baldwin
I think the Committee may well return to some of these themes at a later stage of our deliberations. Clause 13 concerns the UK internal market, which is an important topic that deserves considerable further scrutiny and debate. Clauses 14 and 15 essentially clarify when the commencement will be for the various clauses. It would be more sensible if I were to devote my time to a discussion of some of the new clauses that we have tabled, which will come later in the Committee’s deliberations.
Question put and agreed to.
Clause 13 accordingly ordered to stand part of the Bill.
Clause 14 ordered to stand part of the Bill.
Clause 15
Short title
Amendment made: 2, in clause 15, page 12, line 37, leave out subsection (2).—(Justin Madders.)
This amendment would remove the privilege amendment inserted by the Lords.
Clause 15, as amended, ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Anna McMorrin.)
Royal Mail Takeover
Debate between Justin Madders and Harriett Baldwin(4 months, 4 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Dame Harriett Baldwin (West Worcestershire) (Con)
May I start by thanking the Minister for advance sight of his statement? Before I get into my questions, can we take a moment to thank every postman and postwoman up and down this country for their hard work, particularly at this time of year? In all the challenging weather, they are out there putting letters through every letterbox in the land and collecting thousands of letters from the red pillar boxes in every corner of our country. I take the opportunity, especially in this Christmas season, to say thank you on behalf of all of us.
Every colleague here will recognise the importance of Royal Mail, both as an institution and as a provider of a vital nationwide service. It has been in existence for more than 500 years, and it has seen a lot of change over those years, but the one consistent thing is that it is still a service on which we all depend every day. It is not the only way we communicate any more, but it is a vital one, and it will continue to be needed, including by Government. What a shame it is that one of the biggest postal deliveries done by Royal Mail this year was from the Government. It was a letter to many pensioners—often on low incomes—cancelling their winter fuel payments.
The dwindling number of letters sent has eroded the base on which the success of Royal Mail was built. The inevitable consequence is that Royal Mail has been facing serious financial challenges, and amid those challenges the service received by people across Britain has become worse, whether that is deliveries missing their deadlines, letters going missing or occasionally, in some areas, people going weeks at a time without post. The example of that failure was shown last week by the fines that Royal Mail received. The cost of this poor service cannot be overstated, whether it is for those who subscribe for services by mail, those who rely on business deliveries or those who miss appointments with their general practitioner, impacting their health and costing the Government. That poor service cannot be allowed to continue.
The inward investment into the service announced today will be scrutinised by shareholders, but given that they are the golden shareholder, I have questions for the Government. What guarantees has the Minister received about the service provision? What commitments has he received about the level of jobs across Royal Mail? How much of Royal Mail do the employees themselves now own? In some places it has been reported that the commitment to the tax residency guarantee is for five years, but I heard the Minister say at the Dispatch Box that it was perpetual. Can he clarify that?
What ongoing role will the Government have in making sure that Ofcom ensures that Royal Mail delivers the service expected by customers? The fines do not seem to be doing it. An important part of the service offered by Royal Mail is the universal service obligation, which now requires post to be delivered six days a week and parcels to be delivered five days a week. When the Royal Mail is working well, the universal service obligation provides an outstanding service. However, Royal Mail wishes for it to be reformed. Does the Minister believe that the obligation must be maintained in its current form? Can he confirm what discussions he has held with EP Group about the obligation? Will he confirm whether there is a sunset on the obligation? He mentioned that there potentially was with a transfer of ownership.
The value of Royal Mail goes far beyond the universal service obligation. Can the Minister outline whether he expects any of the other services provided by Royal Mail to be impacted? For example, can my rural constituents continue to count on their letters being collected from every post box? What risks has he identified with the takeover itself? Although the Post Office and Royal Mail are separate entities, they are closely tied. Just over a month ago, the Government announced that more than 100 post office branches were at risk of closure, with hundreds of jobs lost. Can the Minister explain what assessment he has made of the risks facing the Post Office and how they will be impacted by the sale of Royal Mail?
Royal Mail faces the same headwinds, often created by this Government, as other businesses. Whether it is Labour’s employment regulations or the national insurance jobs tax, businesses have warned that they may be forced to put up prices and cut jobs, because of the very actions of this Government. Finally, can the Minister confirm whether Royal Mail has expressed concerns over the Budget or the Employment Rights Bill?
Justin Madders
I thank the shadow Minister for her comments, and I start by joining her in thanking all those postal workers who throughout the year—not just at this time of year, when it is particular busy, but 12 months a year—come rain or shine, sleet or snow, deliver those much-needed communications from friends, family and loved ones. I was pleased to be able to go to my own depot in Ellesmere Port last Friday. I will go to another one in my constituency, in New Ferry, this Friday. All hon. Members should be encouraged to make those visits, because they really show how much we appreciate the work that our postmen and women do.
The hon. Lady is right that the Royal Mail is a service that we all depend on. I agree that performance has not been good enough in recent years. That is why we have had a number of discussions with the company and with Ofcom about how we will get things back on track. That is why the agreement is so important, because the deal will get in the investment needed to try to drive up that performance.
I turn to some of the hon. Lady’s specific questions. On guarantees of service provision, the legislative framework is already there for the universal service obligation, and I see the takeover having no impact on that. It has not been part of the discussions—it is an entirely separate issue—but Parliament will have its say on that if needed. Next year, Ofcom will have a consultation on the universal service obligation. I think it is recognised that an awful lot of work is needed to bring standards up to the level that we would like, and one of the protections in the agreement will hopefully deliver on that.
On jobs guarantees, the hon. Lady will be aware that the general secretary of the Communication Workers Union has spoken positively about the agreement reached. He believes that sufficient assurances have been given on jobs. On employee engagement, she asked whether the employees will own the company. That is not the case, but they will have a say in governance in future as a result of an agreement between the Communication Workers Union and EP Group. That is to be ratified by the Communication Workers Union executive, but that will be a groundbreaking arrangement that we did not have previously. She also asked about tax residency in perpetuity, which is what the golden share does indeed intend to deliver.