Product Regulation and Metrology Bill [HL]

Lord Leong Excerpts

2nd reading
Tuesday 8th October 2024 Lords Chamber

Moved by

[Lord Leong]

That the Bill be now read a second time.

[Lord Leong (Lab)]

My Lords, it is a pleasure to open this debate. Safety and effective regulation lie at the heart of this legislation. Whether you place an online order for a new toaster or your business is investing in a new piece of machinery, you should have confidence that what you are buying is safe. At least 300,000 UK businesses, with an estimated market turnover of £490 billion, are affected by existing regulations, which are a critical element of the UK’s business and consumer landscape. As we embrace the opportunities of the digital age and exciting new technological advances, it is clear that the products we buy and the way we buy them are changing. It is only right that the rules and regulations that keep people safe and enable businesses to trade effectively are updated too.

This Bill will underpin the UK’s position at the forefront of international trade and enable the recognition of EU product requirements where it is in the UK’s interests to do so. It supports consumers, businesses and economic growth. However, we have to be honest with ourselves in saying that current outdated product and metrology regulations hinder more than help these ambitions. That is why it is now essential to update our framework and future-proof it to meet the challenges ahead.

Historically, the majority of the UK’s product regulation and metrology framework was managed through EU law. From EU exit until the present, the UK Government simply did not have the powers to regulate these areas effectively or efficiently, which is why we are bringing forward legislation now, so we can respond to anticipated changes in the global regulatory landscape next year.

The Bill will preserve the UK’s status as a global leader in product regulation, supporting businesses and protecting consumers. It will ensure that the UK is better placed to address modern-day safety issues, harness economic opportunities and ensure a level playing field between the high street and online marketplaces. It will allow the UK to respond to modern challenges, such as the fire risk associated with such products as e-bikes and lithium-ion batteries. Without these powers, we will not be able effectively to contribute to the regulation of such potentially high-risk products. I take a moment to pay tribute to the family of Sofia Duarte, who have been tirelessly advocating for more legislation to better regulate e-bikes, along with the batteries and chargers associated with them, and generally raise awareness of their risks. Sofia sadly died as a result of an e-bike fire on New Year’s Day 2023. This legislation will allow us to take action to help prevent similar such tragedies.

I would also like to mention the work of the noble Lord, Lord Redesdale, in this space. He introduced a Lithium-ion Battery Safety Bill in September, which generated a highly interesting debate. I look forward to continued engagement with him on both Bills. I also acknowledge and thank the noble Lord, Lord Foster, for his tireless work on lithium-ion batteries over these years. There are already strict legal requirements in place whereby manufacturers must ensure that such products are safe before they are sold. This includes ensuring they provide instructions for safe use, including safe charging. However, this is a complex issue and our understanding is developing over time. We need to tailor any regulatory intervention in the most effective way. This Bill will allow us to ensure that the responsibilities of those involved in the supply of products, such as online marketplaces, are made clear.

Online marketplaces already have some legal responsibility, but the Bill will enable the Government to modernise and clarify the responsibilities of online supply chain actors, and any new duties will be in addition to responsibilities they may already have as distributors under the current framework. Without these powers, it will remain far too easy for unscrupulous suppliers to place unsafe products on the UK market through online marketplaces, which also sees them undercut good British businesses. The legislation will enable improvements to compliance and enforcement, reflecting the challenges of modern digital borders. It enables the Government and our regulators to tackle non-compliance and target interventions by allowing greater sharing of data between regulators and market surveillance authorities.

Finally, the Bill will allow us to update the legal metrology framework, which governs the accuracy of weights and measures for purchased goods, to give consumers and business greater confidence in what they are buying. This will allow for technological progress, including in support of net-zero aims—for example, ensuring that energy smart meters are accurate in their readings.

The Government have worked closely with businesses, representatives and consumer groups, which is why organisations as diverse as Which?, the London Fire Brigade, the Association of Manufacturers of Domestic Appliances, Electrical Safety First and the Chartered Trading Standards Institute are all supportive of this legislation.

The Government are bringing forward this legislation as there are insufficient powers to update the existing body of law, either to keep pace with technical developments or to deal with new risks and hazards. Existing legislation recognises EU law as it stood from our date of recognition. Recognising the product rules of key trading partners such as the EU—should we wish to do so—will help to support trade and consumer choice, but current legislation only allows us to recognise EU rules as they currently stand. The Bill ensures we have the ability to end recognition of EU laws where they do not work for our businesses and consumers.

I would like to give a brief overview of the contents of the Bill. While it is relatively short, it deals with some technical matters. It has14 clauses and a schedule. First, it creates new regulation-making powers to allow the Secretary of State to make regulations for prescribed purposes:

“Reducing or mitigating risks presented by products … ensuring that products operate efficiently or effectively … ensuring that products”


used for

“weighing or measuring operate accurately”,

or, when making provision that

“corresponds, or is similar, to … EU law”,

making regulations to reduce or mitigate

“the environmental impact of products”.

The Bill limits the scope of the products we seek to cover to tangible products that are manufactured or result from another method of production, with specific excluded products listed in the schedule.

However, while the Bill will not regulate AI on its own, we need powers in the Bill to cover it when it is integrated into, or as a component of, a physical product. With the expected increase in the inclusion of AI and machine learning in new products, it is likely that we will need to make amendments to regulations in the future to adapt to technological advances that could pose specific risks to consumers, particularly where AI is a component of a product’s safety.

It includes provision to continue recognising EU product requirements, where this is in the UK’s interest, or to end this recognition. The legislation confers an emergency derogation power to allow for the disapplication or modification of product regulatory requirements in certain emergency situations. This is subject to the affirmative procedure and builds on our experience of needing to bring products to market more quickly during the pandemic.

It creates new regulation-making powers to allow the Secretary of State to make regulations on the quantities in which certain goods may be made available in the UK market: for example, maintaining an average system of quantity control for the sale of packaged goods, including food and drink, and providing legal definitions of units of measurement and measurement standards. The Bill will also confer powers to allow tailored enforcement provision to be made in both product and metrology regulation, including the creation of criminal offences and new civil sanctions, including fines.

The Bill contains a power to amend, repeal or revoke provisions of specific primary legislation that deal with product safety and metrology, namely the Consumer Protection Act 1987, the Consumer Rights Act 2015, the Weights and Measures Act 1985 and the Gun Barrel Proof Acts of 1868 to 1978. This allows us to address the outdated governance requirements placed on the Birmingham Proof House. These were designed during the Napoleonic Wars, when there was a thriving Birmingham gun trade. This trade no longer exists. Again, this is subject to the affirmative parliamentary procedure.

The Bill contains powers to make provisions in future for a charging regime that will allow the relevant authority, such as local trading standards, to recover some of the costs attributable to the operation of enforcing the regulatory regime. Finally, it contains powers to allow the Secretary of State to make provisions in regulations permitting or requiring the sharing of information between relevant bodies, the emergency services and other persons who may be specified. This ensures that we have access to the right information in support of our market-surveillance activities and incident management.

Before finishing, I will touch on two key issues that I am sure will be of interest to noble Lords here today. The first relates to delegated powers. This Bill is what is sometimes called a framework Bill, as the vast majority of its provisions are delegated powers. The Government are fully cognisant of the importance of getting the right balance when it comes to delegated powers and using them as sparingly as possible. For technical policy areas, we believe that it is sensible and proportionate to give powers to Ministers to update and amend legislation, future-proofing the ability to respond quickly and flexibly to new technology and evolving innovation. We have minimised the use of the powers in the Bill as much as possible and we have worked closely with the Attorney-General—who, quite rightly, is a stickler for these kinds of things—to find the best approach. So we look forward to the report of the Delegated Powers and Regulatory Reform Committee, which we will carefully consider.

The second issue relates to devolution. In line with the Sewel convention, the UK Government are seeking the consent of each of the devolved legislatures for provisions that engage the legislative consent Motion process. Product safety is reserved, and, in the main, metrology is also reserved, but the Bill powers are UK-wide and subsequently touch on some elements of devolved competences. We are actively engaged with the devolved Governments on these provisions and will continue to work with them on any concerns they may have. We want to see that the broad support for the policy in this Bill is translated into legislative consent from the devolved Governments. I will update noble Lords as the Bill continues its passage.

I end by saying that this Bill will protect consumers and support businesses by ensuring that the UK is better placed to address modern-day safety issues. It will let us harness opportunities that deliver economic growth and will create a level playing field between the high street and online marketplaces by putting in place appropriate responsibilities throughout the supply chain. The result is that consumers can buy with confidence and businesses can trade effectively and compete fairly. Ultimately, it allows the UK to decide how best to protect consumers and support businesses on our own terms. To echo an often-used phrase, this legislation allows us to “take back control”. But, crucially, it allows us to do so in a way that supports our twin-track approach to trade: seeking a closer, more mature trading partnership with the EU and forging new trading relationships with countries around the world, too. I beg to move.

--- Later in debate ---

[Lord Leong (Lab)]

My Lords, I would first like to thank all noble Lords for their very kind remarks; they are much appreciated. I also thank noble Lords for taking part in today’s debate, and for the contributions from all sides of the House. Today’s debate has been not only informative and wide-ranging but also illustrated the depth of expertise and experience present in your Lordships’ House.

I was particularly pleased to hear the maiden speech of my noble friend Lady Winterton. She brings much experience and wisdom, having served with distinction as Deputy Speaker in the other place and as a Minister in multiple government departments between 2001 and 2010. Freed as she now is from the necessary neutrality of a formal role, we welcome her warmly to the government Benches, where I suspect that, like her former boss, Lord Prescott, she will pull no punches. I look forward to hearing from her many more times in the future.

As we have heard, product safety failures can have devastating consequences. We are determined that our regulatory framework is agile and flexible in its response both to new threats and to complex supply chains. For innovation to flourish and potential for growth to be realised, it is essential that consumers can have confidence in the safety of the products they buy and in the businesses that they buy from.

I will try my very best to address as many of the issues and questions raised today as possible within my timeframe of 20 minutes. If I do not have the time, I will get my office to go through Hansard and provide written answers to noble Lords and have a copy placed in the Library. Finally, let me assure all noble Lords that I want to work constructively and proactively in the passage of this Bill, and I will have many more conversations and share information with noble Lords through Peers drop-in sessions—my office is always open, so feel free to contact me and my private office.

The noble Lords, Lord Frost, Lord Browne and Lord Jackson, and the noble Baroness, Lady Lawlor, raised concerns that this Bill is tantamount to the UK rejoining the EU through the backdoor. Let me be extremely clear: this Bill is not rejoining the EU by the backdoor. This Bill gives us the flexibility to ensure that product regulation, now and in the future, is tailored to the needs of the UK. There will be some instances where we will want to take a similar approach to the EU, and there will be others where it makes sense for the UK to diverge. Those decisions will be based on the best interests of the UK’s businesses and consumers, and any secondary legislation will be subject to the usual parliamentary scrutiny. As I said in my opening speech, we are taking back control, seeking closer, more mature trading partnerships with the EU and forging new trading relationships with the global world out there.

The noble Lords, Lord Foster, Lord Browne of Ladyton, Lord Bourne, Lord Fox and Lord Johnson, and the noble Baroness, Lady Bennett, raised questions about devolution. The vast majority of product safety and metrology legislation is reserved, with some specific exceptions. We expect the overwhelming majority of secondary legislation brought forward under the main powers in Clauses 1 and 5 to be reserved. Given the technical nature of product regulation and metrology, it is possible—as many noble Lords have mentioned—that some elements of secondary legislation may touch on devolved aspects, such as regulating the environmental impact of certain products, as we consider safety impacts alongside.

Following meetings with my counterparts, I welcome their broad support for the policy intentions behind the Bill. However, we recognise that the devolved Governments have raised some concerns about the drafting and breadth of delegated power in the Bill. As outlined in our manifesto, this Government are committed to reset the UK Government’s relationship with the devolved Governments in Scotland, Wales and Northern Ireland. I have had positive meetings with my counterparts in the Welsh Government and Northern Ireland Executive and will be meeting with the Scottish Government this week. My department is engaging with all devolved Governments in an open and collaborative spirit, and we hope that we will gain legislative consent Motions from the devolved legislatures. I will keep the House informed of those discussions.

On the specific case of Northern Ireland, which has been raised by several noble Lords, in order to ensure dual access to both the UK internal market and the EU single market, Northern Ireland applies certain EU product regulations and metrology rules under the Windsor Framework. The Bill provides the Minister with the ability to make a sovereign choice and effectively manage upcoming regulatory divergence between the UK and EU, and therefore to ensure continuity across the UK internal market, where it is in our domestic interest to do so. As such, we expect that the Bill will have a positive impact on trade between Northern Ireland and the rest of the UK.

The noble Lords, Lord Foster, Lord Fox and Lord Johnson, raised the importance of ensuring that the enforcement authorities have adequate resources to fulfil their function. With this Bill we intend to improve enforcement capability, leading to more efficient and effective use of time through a better suite of notices and better data-sharing opportunities. The Office for Product Safety and Standards will continue to provide a range of support to enforcement authorities. This will include support on technical queries, access to product testing and an ongoing programme of training and continuous professional development. The Office for Product Safety and Standards will also produce guidelines for the application of any new powers so that enforcement authorities are equipped to use them efficiently.

The noble Lord, Lord Lansley, and several other noble Lords raised an important issue relating to international standards. The Bill will enable us to continue to amend product regulations as well as allow the designation of international standards for products in scope. In line with WTO obligations, the UK recognises the benefits and supports the use of international standards, as well as regional standards, to break down trade barriers with our trading partners. The British Standards Institution regularly reviews UK standards, replacing domestic standards with appropriate international ones. This is also something that the UK pursues in its international agreements.

The noble Lords, Lord Sandhurst, Lord Foster, Lord Lucas, Lord Jackson and Lord Fox, and the noble Viscount, Lord Trenchard, asked whether any draft regulations under the Bill would be produced. The Government are working through policy positions on a range of issues following the election, including addressing the sale of unsafe products via online marketplaces. Additionally, we are reviewing changes the EU is proposing to its registration regulations and considering the applications. Throughout, our response will depend on the outcome of our call for evidence and policy discussions with stakeholders.

The noble Lord, Lord Sandhurst, asked about the poor way we are approaching legislation. The review he referred to was issued by the previous Government. It was clear then that to make fundamental changes to product regulation requires primary legislation because the powers were not available to us, hence bidding for this Bill to ensure that we secure the powers to act in good time to address emerging risks.

The noble Lords, Lord Foster and Lord Sandhurst, asked about online marketplaces. It was right for us to bring forward this Bill to give us the powers we need to address sales of unsafe products by online marketplaces —an area on which the product safety review consulted. Consumer groups such as Which? have also been calling for us to take action. This Bill will allow us to take action now.

The noble Lords, Lord Sandhurst, Lord Foster and Lord Johnson, asked why we have not published a response to the product review consultation. We have bid for the necessary powers to make changes to our regulations and have introduced this Bill, which will deliver enabling powers to allow us to implement a lot of the policy proposals emanating from the product safety review to which the noble Lord, Lord Sandhurst, referred. That review received 126 responses covering regulatory changes. Action on online marketplace enforcement was supported by all respondents. The powers in the Bill are available powers and we have continued conversations with a wide range of stakeholders on the detail.

[Lord Sandhurst (Con)]

I appreciate that, but we have not actually got any detail at all, or even a summary, of what the responses are. We really do require that; it is normal.

[Lord Leong (Lab)]

I thank the noble Lord, Lord Sandhurst. I will ask my officials and come back to the noble Lord on that request.

The noble Lord, Lord Foster, asked about lithium-ion batteries. I am pleased to advise that, while we have been in this debate, Minister Madders, my colleague in the other place, is in Paris at the OECD global awareness campaign, which this year focuses on lithium-ion batteries. The UK and the Office for Product Safety and Standards have been leading on this campaign. The noble Lords, Lord Redesdale and Lord Fox, raised additional points about disposal. Ministers are referring proposals to consult on reforms to UK battery regulations before setting out next steps.

The noble Lord, Lord Russell of Liverpool, asked why the UK wished to be able to continue recognising the CE marking. This Bill will allow the Government to choose to recognise updates to EU product regulation to provide continued regulatory stability and avoid extra costs for business where this is in our interests. It will also allow us to end recognition of EU requirements where it is in the interest of business and consumers. We presently recognise current EU regulations for a range of products. Legislation passed in May 2024 to continue CE recognition for 21 product regulations is estimated to save UK businesses £640 million over a 10-year period, largely from avoiding duplicate compliance and labelling costs. Provisions in the Bill allowing us to continue or end recognition of EU requirements will enable us to provide the certainty that businesses need to plan for the future and innovate, supporting economic growth. The UK and EU share information on trade, including changes to the trade and co-operation agreement.

The noble Lord, Lord Foster, and several other noble Lords asked about the disposal of lithium-ion batteries. The Government are committed to cracking down on waste as we move towards a circular economy, where we keep the resources we use for longer and reduce waste. The existing product responsibility scheme for batteries and waste electronics makes producers responsible for the cost of end-of-life treatment. Under existing UK legislation it is already mandatory for all batteries placed on the market in the UK to be clearly marked with the crossed-out wheelie bin.

The noble Baroness, Lady Crawley, asked why there have been no changes to legislation on product safety since our exit from the EU. I can reaffirm that this is real, hence bringing forward powers in this Bill to allow us to make changes before divergence happens and we fall further behind.

The noble Lord, Lord Frost, asked why we cannot use existing powers. The new Bill powers are required to enable the Government to modernise and future-proof product regulation, ensuring that it is tailored to the needs of the UK. The powers in the retained EU law Act 2023 are limited, in that they can be used only to revoke and replace assimilated law and have other inbuilt restrictions—for example, secondary legislation that is made under REUL must be deregulatory. This means that we would not be able to use the powers to increase safety requirements to respond to new and emerging threats through further amendments and legislation which was not assimilated law before.

The noble Lord, Lord Frost, also asked whether the Bill will make the UK a rule-taker or a rule-maker. We are definitely not a rule-taker. We are a rule-maker, and the Bill will provide powers to give the UK greater flexibility in setting and updating its own product-related rules, as well as enabling the UK to choose whether to recognise relevant EU products requirements. Any further changes made using these powers will be subject to appropriate parliamentary scrutiny. The noble Lord asked whether the Bill protects internal markets. The Bill will give us flexibility to ensure product regulation and metrology now and in the future. It is tailored to the needs of the UK as a whole. It will enable us to make changes to product regulation and metrology legislation that will benefit businesses and consumers.

The noble Lord, Lord Frost, also asked about the Windsor Framework. In updating its regulation, the EU will be seeking to deal with many of the same challenges that the Bill will address: for example, online marketplaces and batteries. The Bill will enable a choice to be made as to whether it is in the interests of UK businesses and consumers for UK regulations to take the same or a similar approach, or indeed a different one.

The noble Baroness, Lady Brinton, asked whether the Government will commit to a policy of alignment with EU chemical protections. This Government are committed to protecting human health and the environment from the risks posed by chemicals. We are currently considering the best approach to chemicals regulation in the UK separately to this Bill and will set out our priorities and next steps in due course. The noble Baroness also asked how the Bill will help the Government respond to emergencies.

[Lord Fox (LD)]

Am I to understand that, if there is to be separate consideration for chemicals regulation, it will not be in this Session because it was not in the King’s Speech? So all those businesses that are currently struggling with where we are now have at least a year, and probably 18 months, to wait before any sense of a Bill—never mind that Bill becoming law.

[Lord Leong (Lab)]

I am coming back to that in the later part of my winding speech.

National emergencies such as Covid-19 highlight the importance of ensuring that our product regulation framework allows for flexibility in times of national emergency. This enabling Bill will allow the Government, in response to an emergency, to temporarily disapply and modify product regulation while maintaining high safety standards, thereby providing a faster process by which critical products are able to reach the market in order to sustain an adequate supply of such products.

[Baroness Brinton (LD)]

I apologise, but that was not my question. My question was: will the Government make sure that, if emergency powers are used, both Houses of Parliament are kept informed prior to that happening?

[Lord Leong (Lab)]

I will get back to the noble Baroness in writing. I see the time flashing, so I might have to write to other noble Lords in response to their questions. Let me conclude.

I would like to thank everyone across this House for their contributions in today’s debate. I specifically thank my counterparts on the Opposition Benches, the noble Lords, Lord Johnson of Lainston and Lord Fox. This is not the first time that we have sat across from each other in such debates, albeit in different spots. I look back fondly on our debates during the passage of the CPTPP Act last year. I hope and expect that debates on this Bill will be as good-natured and as enlightening as those were.

I should like to stress my willingness to meet noble Lords to discuss further the detail of the Bill. I take the firm view that dialogue is essential to building public and parliamentary support.

To sum up, this Bill allows us to keep pace with new technologies, gives us the tools to stop dodgy suppliers placing dangerous goods on the market and allows us to make sovereign choices as to how we diverge or align with the EU and other trading partners. It gives enforcement bodies the tools they need to tackle modern problems facing the transit of goods coming across our borders, be they land, maritime or digital. Finally, it will allow us to update the legal and technological framework that underpins economy and trade. This Government will never compromise on safety. The Bill is essential to strengthening the rules and regulations needed to protect consumers, businesses and the public.

Bill read a second time and committed to a Grand Committee.