The noble Lord refers to the construction industry, concerning roofing, if I read him correctly. We welcome the principles announced by the Construction Leadership Council to end the unfair use of cash retentions. The use of retentions is, I am pleased to reassure the noble Lord, in decline, with many of the construction industry’s better clients no longer withholding payments. Indeed, the Government have committed to reduce their use on their own contracts.
Will the Minister consider very carefully the issue of retention for the construction industry and, specifically, the roofing industry? Will he also give a firm commitment that he will listen to the Federation of Small Businesses and the construction industry, because there are considerable problems still, with over 50% of small businesses waiting for payment? Would he have a constructive consultation, because there have been concerns about them, to ensure that there are tangible measures in this Bill on the payment charter, for example, to make it more mandatory?
I hope that I can assure my noble friend that, in addition to introducing the new reporting requirement, we are looking at giving suppliers more information on what to expect from their customers and therefore to be in a better position to make an informed judgment on whether to enter a commercial relationship, and how to negotiate fair terms or challenge unfair terms, as well as how to understand what they need to do to ensure that they get paid on time.
(10 years, 10 months ago)
Lords ChamberI reassure the noble and learned Baroness that I am very much in listening mode and say again that some people will always genuinely want to receive bills and statements through the post. Companies certainly recognise that. The issue is that if that is the case and there is to be any change to contracts, I need to give them a decent amount of time under the legal protection to do that.
My Lords, the Minister has responded somewhat defensively on this issue. Could he please listen? We are talking about 7 million adults, largely elderly, and vulnerable and disabled people who cannot have access to the net, and many rural areas still do not have good broadband. These are very serious issues. Companies are pushing people in the wrong direction, for example, by renewing contracts over the internet. People are not aware of this and then learn, some months later, that money has been taken out of their accounts to renew a contract they did not know about. There are big issues involved.
Again, I note the point made by my noble friend. It is worth pointing out that providing information only online could, in certain circumstances, amount to indirect discrimination unless it is a proportionate means of achieving a legitimate aim. Consumers have the choice not to access the internet, but that choice may mean paying for a paper copy.