Digital Markets, Competition and Consumers Bill

Debate between Paul Scully and John Redwood

2nd reading
Wednesday 17th May 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Paul Scully)]

It is a pleasure to follow what has been an excellent debate. We have had some great contributions from the hon. Member for Feltham and Heston (Seema Malhotra), my right hon. Friend the Member for Wokingham (John Redwood), the hon. Member for Gordon (Richard Thomson), my hon. Friend the Member for Folkestone and Hythe (Damian Collins), the hon. Member for Bristol North West (Darren Jones), my right hon. Friend the Member for Calder Valley (Craig Whittaker)—he made an important intervention, which I will come back to in a minute—my hon. Friend the Member for Boston and Skegness (Matt Warman), the hon. Member for Washington and Sunderland West (Mrs Hodgson), my hon. Friend the Member for Warrington South (Andy Carter), the hon. Member for Salford and Eccles (Rebecca Long Bailey), my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami), the hon. Member for Richmond Park (Sarah Olney), my hon. Friend the Member for North West Norfolk (James Wild), the right hon. Member for Hayes and Harlington (John McDonnell) and, of course, the hon. Member for Pontypridd (Alex Davies-Jones).

I will cover some of the issues, but I just want to say that it is great that we are holding this debate on the 100-day anniversary of the formation of the Department for Science, Innovation and Technology—and indeed on the Secretary of State’s birthday. That gives us the sharp focus we need as we bring in this important legislation, which I am glad to say has been welcomed right across the House. It is no exaggeration to say that the world is looking on at us in this forum. Yes, the European Union has the Digital Markets Act, but we have a less prescriptive, more flexible approach that other countries are looking at. If we get this right—it is important that we get it right, but also that we bring the Bill in quickly so that we get its effects quickly—hopefully there will be fewer regulatory environments around the world and we will give businesses certainty, rather than having 120 different regulatory environments, which makes it even more confusing for companies in adhering to them.

We heard Labour’s position on subscription traps, and my hon. Friend the Member for North West Norfolk gave the other side of the argument in saying that our approach to subscription traps was a little too prescriptive. The Government analysed consultation responses from last year, and we believe we are implementing measures that best balance the benefits to consumers and the associated cost to businesses. We have drawn the delegated powers as tightly as possible, and any broad or major change to the law will be subject to the draft affirmative procedure and must be laid before Parliament and approved by both Houses—we have been careful about that.

The hon. Member for Gordon raised a couple of measures including the right to redress. A range of consumer-related measures come under the scope of the Retained EU Law (Revocation and Reform) Bill, but the core protections in the Consumer Rights Act 2015 continue to apply. We have been careful and clear that we maintain measures that are necessary to fulfil our international commitments, and that will definitely apply to consumer protection. We have always set the highest standards for consumer protection.

The hon. Gentleman also talked about greenwashing and drip pricing. Under current legislation, the CMA is able to tackle those harms, and it is committed to doing so. For example, it has issued guidance to help businesses comply with their existing obligations under consumer protection law when making environmental claims, and in recent years it has acted on drip pricing, particularly in the holiday and travel sectors. The Government are undertaking research to understand the prevalence of drip pricing and its impact on UK consumers. The power to add to the list of banned commercial practices in the Bill will allow us to act swiftly to tackle specific online harms should there be sufficient evidence to warrant further action on specific practices in future.

My right hon. Friend the Member for Calder Valley, who is not in his place, intervened to ask about charity lotteries. In that instance, because a consumer donates regularly to a charity but does not have receipt of a good, a product or digital content in return, that will not meet the definition of a subscription contract. Therefore, those charitable donations do not need to be included in the exclusions set out in schedule 19, as they are not in scope in the first place.

The hon. Member for Bristol North West spoke about growth duties. Driving innovation, investment and growth should be at the heart of what our regulators do. The growth duty does not currently apply to Ofwat, Ofgem and Ofcom, which regulate sectors that account for 13% of annual private UK investment. As I announced on 10 May, in the coming months the Government intend to consult on reforms to regulation with economic regulators, and on how best to promote growth with utilities regulators. That might include consideration of a growth duty, or it may be done via other routes. The hon. Gentleman also asked about the digital regulation cooperation forum, and regulators that comprise the DRCF are already accountable to the Government and Parliament on an individual basis. We engage closely with them at every level through official channels to understand and inform its strategic priorities and identify opportunities for collaboration and knowledge sharing.

My hon. Friend the Member for Boston and Skegness spoke about the possibility for mission creep at the CMA and about interoperability. I agree that interoperability is important for making digital markets more competitive. Conduct requirements in the Bill could be used by the DMU to set clear expectations about interoperability and to prevent an SMS firm from restricting it between designated digital activities and products offered by other firms. If there is evidence of a specific competition problem, pro-competitive interventions will allow the DMU to design targeted interventions. It could, for example, require an SMS firm to allow app stores other than its own to be downloaded and used on its mobile devices.

[John Redwood]

Do Ministers as a matter of course invite in leading regulators for at least annual reviews of corporate plans, budgets and performance?

[Paul Scully]

Many of the regulators will be under the remit of the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). Indeed, that is something that I did—

Subsidy Control Bill

Debate between Paul Scully and John Redwood

Consideration of Lords amendments
Wednesday 20th April 2022 Commons Chamber

[Paul Scully]

I thank the hon. Lady for her intervention. This is what I mean about using other areas of law; other areas testing the value of the use of public money will be better suited for addressing exactly those points, but I very much take the one she makes.

[John Redwood (Wokingham) (Con)]

Would it not in future be possible for the Government, when offering a subsidy to companies, to specify that they need to meet certain labour standards so that the subsidies regime would apply?

Postmasters with Overturned Convictions: Settlement Funds

Debate between Paul Scully and John Redwood

Wednesday 15th December 2021 Commons Chamber

[Paul Scully]

I recognise the right hon. Gentleman’s work over the past 10 years and the conversations we have had on this. I just let him know that I very much hear exactly what he is saying. I totally empathise with what he is saying, and I will continue to work to that end.

[John Redwood (Wokingham) (Con)]

I am grateful to the Minister for changing the policy. I have been a long-standing critic of past Governments and Ministers for not telling the Post Office to apologise and pay up, and I encourage him today to ensure that the Post Office apologises properly, and pays up quickly and generously.

[Paul Scully]

My right hon. Friend is absolutely right. We will ensure that we lean into the Post Office to ensure that they deliver all compensation schemes quickly and equitably so that we can get this issue sorted out. The Post Office has acknowledged that it has done wrong, but the inquiry will detail the questions that it needs to answer over the next few months.

Post Office Court of Appeal Judgment

Debate between Paul Scully and John Redwood

Tuesday 27th April 2021 Commons Chamber

[Paul Scully]

Because the evidence is coming forward. There is no point in compelling something that is already coming forward. Having said that, if that changes, our advice and our thoughts will change, but at the moment, everybody is participating in the inquiry. Sir Wyn Williams is happy and content that he is getting the information and co-operation that he requires to get answers.

[John Redwood (Wokingham) (Con) [V]]

Will the Minister understand that there has to be compensation, and urgently, and this compensation has to cover not just the Horizon losses but the legal costs and the loss of business and income that people suffered from the damage to their reputation?

Many MPs, including myself, told past Ministers that this was an accounting scandal—it was not a sudden outbreak of mass criminal activity by good public servants. They deserve better, and this Government must now apologise by making sure they get proper compensation.

[Paul Scully]

Indeed, it is important that the Post Office engages with all the appellants who have had their convictions quashed. As we are getting those answers, we will work to ensure that we can get fair compensation.

United Kingdom Internal Market Bill

Debate between Paul Scully and John Redwood

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 29th September 2020 Commons Chamber

[Paul Scully]

The Prime Minister, the Secretary of State and Ministers work with all the devolved Administrations. My colleague in the Business Department has meetings—especially at this particular time—with businesses across the devolved Administrations, including in Wales.

As I say, for this particular area, we already publish the report I referred to. However, we consider it right that any reporting on the Joint Committee machinery or the UK shared prosperity fund should be undertaken separately from that on internal market provisions. For that reason, I am not able to accept the amendment.

[John Redwood (Wokingham) (Con)]

Will the Minister confirm that Brexit is a huge opportunity to increase the powers both of this House—over our own internal market and economic prosperity—and of the devolved Administrations, which will gain power? Should everybody not cheer up and welcome the fact that both the devolved Administrations and the Union Parliament can take back control?

[Paul Scully]

I thank my right hon. Friend for the opportunity to absolutely agree with him that this gives us a great opportunity to come together as the United Kingdom, to give that sense of certainty to businesses and, just as importantly, to grab hold of the opportunities provided by leaving the European Union.

Before I address the amendments to the Bill’s Northern Ireland protocol measures, I remind hon. Members of the points made by the Minister of State, Northern Ireland Office, my hon. Friend the Member for Worcester (Mr Walker), in Committee last week. He made it clear that

“the Northern Ireland protocol…is designed to recognise and protect the needs and unique circumstances of Northern Ireland. Central to that is ensuring that the Belfast/Good Friday agreement, its successor agreements, and the gains of the peace process are protected.”

He stressed that it was crucial to

“ensure that the delicate balance between all communities in Northern Ireland is maintained and that the UK Government pursue policies for sustained growth and stability in Northern Ireland…Through this Bill, we are acting to uphold those priorities and deliver the commitments we made in our election manifesto that we would provide unfettered access between Northern Ireland and Great Britain and ‘maintain and strengthen the integrity and smooth operation of the internal market’.”—[Official Report, 21 September 2020; Vol. 680, c. 647.]

I will now speak to new clause 1, which seeks to replace clauses 42, 43 and 45, as well as amendment 16, which intends to remove clause 45. The Government have already been clear that these clauses are required to provide a safety net of powers in reserve, which Ministers may need to use to guarantee the integrity of our United Kingdom and to ensure that we are always able to deliver on our commitments to the people of Northern Ireland, in line with the three-strand approach of the Belfast agreement.

--- Later in debate ---

[Paul Scully]

I will make progress, because these are important points. New clause 1 and amendment 18 would remove that safety net, which we just cannot agree with. These clauses were supported by clear majorities of the whole House at Committee stage.

I can reassure hon. Members that many of the proposals in new clause 1 are already addressed in the Bill. First, the Government have been clear that regulations made under clauses 42 or 43 would be subject to judicial review on general public law grounds, while ensuring that any claims must be brought within three months. This ensures any challenge to the regulations will be subject to timely resolution before the courts. This is essential to ensure that Northern Ireland businesses and investors in Northern Ireland have the certainty that they need. Amendments to this effect have already been agreed to in Committee, and I thank my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill), who helped make that happen.

Secondly, on article 16 of the protocol, which new clause 1 mentions, in the event that regulations were made under clauses 42 or 43, we have been clear that we would activate appropriate dispute settlement mechanisms to find a solution in parallel to domestic legislation. Thirdly, the UK Government will continue, as we have always done, to negotiate with our friends and partners in the EU in good faith.

For the avoidance of any doubt, let me confirm again that we are of course committed to implementing the withdrawal agreement and the Northern Ireland protocol, and have already taken many practical steps to do this. However, as a responsible Government, we cannot allow the gains of the peace process or the economic integrity of the UK’s internal market—

[John Redwood]

Will the Minister give way?

[Paul Scully]

I will happily give way.

[John Redwood]

Would the Minister confirm that the Government are not intending to break the law—and I do not think anything they have suggested is breaking the law—and will he confirm that those who say otherwise are deliberately undermining our negotiations with the EU?

Horizon: Sub-Postmaster Convictions

Debate between Paul Scully and John Redwood

Wednesday 10th June 2020 Commons Chamber

[Paul Scully]

I am sorry that, for the same reason, I was unable to attend that session, but I hope in future to engage fully with the Select Committee. The key point is that the Post Office has said that it will disclose everything, and I will ensure that it does, to the best of my ability. I saw the same “Panorama” programme as the hon. Gentleman did, in which there was a big discussion and a long piece about non-disclosure. That cannot happen again. We have to draw a line and make sure that we get answers. The chairman of the independent review will push for that and so will I, to ensure that the Post Office complies appropriately.

[John Redwood (Wokingham) (Con)]

Most MPs want the Post Office to apologise to all those it has wronged and pay generous compensation to them in the circumstances. Will the Minister add the Government’s voice to that and make it a demand of the Post Office?

[Paul Scully]

The Post Office has acknowledged mistakes in the settlement and the case that we have had. I am glad that both parties to the group litigation were able to reach a settlement. Other sub-postmasters who suffered a shortfall will be able to take advantage of the historical shortfall scheme that the Post Office has launched. They will be able to come forward and have their case investigated, and hopefully those wrongs will be righted.

EU Referendum Leaflet

Debate between Paul Scully and John Redwood

Monday 9th May 2016 Westminster Hall

[Paul Scully]

I am sure that the Minister has heard that, and I hope that he will respond in full to the debate.

Katie Ghose of the Electoral Reform Society expressed similar concerns, and after the referendum on Scottish independence the Electoral Commission warned the Government over taxpayer-funded propaganda, saying that it could give an

“unfair advantage to one side of the argument”.

[John Redwood (Wokingham) (Con)]

Is this not a terribly easy case? No previous Labour or Conservative Government have ever thought they should spend taxpayers’ money on promoting Government policies ahead of a general election in the hope of getting a better result. Is that not exactly what the leaflet is doing, and is it not therefore a scandal?

[Paul Scully]

Absolutely. The Government are taking many difficult decisions across the five years of this Parliament, but we do not need to write in full to every household to explain why we are doing it. That is why the media and websites are there, and that is what Parliament is there for—we can report on that through our speeches and debates. I am not sure that the Government’s case for remaining is being helped, because it is likely that the contents of the leaflet will be long forgotten by the start of the purdah period on 27 May, but the £9.3 million price tag will still resonate with voters.