Consumer Rights Bill

Stephen McPartland Excerpts

Tuesday 28th January 2014 Commons Chamber

[Stella Creasy]

I thank the hon. Gentleman for his contribution, and I will come on to whether the voice of the consumer is strong enough with the regulators. That is the sort of issue a regulator could consider, because not all people access services in the same way.

With that in mind—I am conscious of time—I will press on to the final question that we will set for the Bill in Committee, which concerns whether it has a clear enough framework for when things go wrong. We know that absence of enforcement gives an advantage to firms that break the rules, whether in a local community or nationally. Consumers are getting a poor deal and providers are getting away with it because there is little accountability or likelihood of prosecution. Giving consumers a stronger voice in the regulation of goods and services would enable consideration of the consequences of the different way that services are managed among different groups in society.

Again, the Bill could have led on that and tackled the problem. The concept of an ombudsman is clear in principle, but confused in practice. There are at least 17 different ombudsman services including the Financial Ombudsman Service, the local government ombudsman, the housing ombudsman, the pensions ombudsman and the legal ombudsman, as well as the parliamentary ombudsman and the health service ombudsman. In addition, there are also 14 recognised complaints handling services, including the Advertising Standards Authority, the commissioner for young people, the Information Commissioner and the schools adjudicator. However, not all ombudsmen and adjudicators are the same. Some exist through European and UK statute, such as the housing ombudsman, but others have been set up by the industries as voluntary bodies.

Let me return to the point raised by my hon. Friend the Member for Bridgend (Mrs Moon), who has sadly left the Chamber, about the furniture industry where we see such problems at first hand. The furniture ombudsman was set up as part of the Furniture Industry Research Association and is the only profit-making ombudsman service in this country. Some sectors have one ombudsman, but others have many. Businesses can pick and choose which they sign up to, further complicating matters for consumers. The lack of clarity about what an ombudsman could do and what powers it has is a problem for all consumers, and I say to the Secretary of State that tweeting about the issue or using social media is not the way to address it. My hon. Friend the Member for Makerfield (Yvonne Fovargue) has been diligent in raising the case of Farepak consumers, which seems exactly the point at which a stronger and clearer ombudsman system would come into play.

[Stephen McPartland (Stevenage) (Con)]

Will the hon. Lady give way?

[Stella Creasy]

If the hon. Gentleman will forgive me, I am conscious of time and want to press on.