Draft Consumer Protection (Enforcement) (Amendment etc.) (EU Exit) Regulations 2018

Patricia Gibson Excerpts

Wednesday 23rd January 2019 General Committees

On resuming—

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

My remarks on this statutory instrument will be very brief. The SI repeals the consumer protection co-operation regulation in full to ensure that there are no unilateral obligations or rights conferred on or between EU member states and/or the UK after Brexit, in the event of a no deal.

Is it the Government’s policy to ensure that, as far as possible, UK consumers are no worse off after Brexit than before? However, it is also the case that there are no substantial policy changes proposed for UK consumer law in the event of no deal, and after Brexit. My concern is that there are absolutely no guarantees that UK consumer law will continue to evolve and develop to ensure that UK consumers are not disadvantaged and left, over time, with fewer protections relative to their European counterparts. That must be a cause of concern to us all.

Furthermore, I am well aware that the Minister simply cannot guarantee that our rights will not diverge from Europe’s over time, because that is not in the gift of the Minister. That is why this is a matter of concern. We are being asked blindly to step into the unknown. That is the nature of Brexit, deal or no deal, whether we like it or not, regardless of how we voted.

Given the circumstances today, may I throw out for the Minister’s consideration a matter I have written to her about? I thought this might be a timely moment to bring it up. She will be aware there are many areas of concern for the future, but one example that concerns me is that the EU is now set to move on standardising the expiry dates on all gift cards at five years, instead of the mishmash of confusion that we have now.

The Minister will perhaps remember that I have made inquiries. I found that the UK Government are reluctant to examine this matter carefully, despite the fact that the industry is worth billions of pounds in the UK and that the measure would cost the UK Government nothing to implement. This is one simple area where UK consumers will be left behind when such provision is adopted across the EU post-Brexit. I know that the Minister suspects that that may not happen in Europe, but I can assure her that there are definitely moves afoot for it to happen. As the CPC regulation makes clear, it is the “collective interests of consumers” that we need to be protecting.

The reality is that Brexit, with or without a deal, can only—perhaps in moments of self-reflection, the Minister will see this—reduce the UK’s influence and that of UK enforcement bodies. I do not think that is a matter of dispute. She said in her opening remarks that co-operation will continue. I of course very much hope, for the sake of consumers, that that will be the case. No one wants to see a diminution of consumer protection. No one voted for that in the referendum. Whatever they voted for, they were not voting for fewer protections as consumers. However, concerns remain, because the UK will lose the influence that it has in the area of consumer protection, and of course in other areas, as we ironically will be forced to look inwards, instead of outwards, if we are engulfed by the chaos of no deal.

[Kelly Tolhurst]

I thank the hon. Lady for her contribution. As a responsible Government, we continue to prepare proportionately for all scenarios, including the scenario that we leave the EU without a deal. That is what this statutory instrument ensures: it revokes provision in the CPC regulation and the injunctions directive that will not be reciprocated by the EU in a no-deal situation.

I recognise the hon. Lady’s concern about the particular issue that she has raised. It is not in the scope of these regulations, but, as she knows, I am more than happy to communicate with her outside this statutory instrument Committee. Importantly, the instrument ensures that, after EU exit, UK enforcers retain powers to continue protecting UK consumers in the case of infringement of UK consumer law. That includes EU-derived consumer law.

[Patricia Gibson]

What does the Minister think will be the effect on the UK’s influence in European markets, for example? After Brexit, does she think that the UK’s influence on consumer protection will increase or decrease?

[Kelly Tolhurst]

The statutory instrument before us talks about UK enforcement, and that, through our UK enforcement agencies, which are already registered under EU law, will be retained under UK law. As always, this Government and our enforcement agencies are committed to the protection of consumers in this country and will do whatever they can, in the event of no deal, to ensure that the relationships with our European neighbours will be maintained as far as possible, but obviously a lot of that will rest with the EU and how it wants to deal with us after EU exit.