Consumer Rights Bill
Debate between Jo Swinson and Baroness Primarolo(9 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Madam Deputy Speaker (Dame Dawn Primarolo)
With this we may take Lords amendments 2 to 11 and 13 to 78.
Jo Swinson
I am delighted that we are bringing the Bill back to the House in such good shape. There was a good debate in the other place and a number of amendments build on and improve the Bill. We listened to concerns in both Houses about consumers being out of pocket if they have to pay to return rejected goods, and as a result we agree that it is sensible to make it clear in the Bill that the trader bears responsibility for the reasonable costs of returning goods that have been rejected by the consumer. That provides clarity and sets a sensible balance between the parties, without causing significant burden to business.
The Bill has always contained a provision that if a consumer exercises the final right to reject, the trader may reduce the refund to take account of the use that the consumer has had of the goods, unless the goods are rejected in the first six months, in which case the general rule is that no deduction may be applied. That is intended to balance the interests of consumers and traders, and for that reason the Bill provides a limited exception to the general six-month rule. However, we understand the concern that that exception could be interpreted too broadly, and in response we have narrowed the exception to address specifically the impact on the motor industry.
The particular nature of motor vehicles may affect the balance between traders’ and consumers’ interests because cars are high-cost items that lose value quickly. They are also complex, so it is more likely that a car will develop two faults in the first six months than, for example, a piece of furniture. The option to make a deduction for use in the first six months is therefore particularly significant for traders in motor vehicles.
The amendments include a power to increase the scope of the exception if appropriate in future. We think that is important, as it is not possible to predict the goods and technologies that may develop. We are conscious of the need to reflect the dynamic nature of digital content. Many forms of digital content are not static products and change over time with updates to software and apps. The Bill provides that the digital content must meet the quality rights—satisfactory quality, being fit for a particular purpose and as described—following an update. We listened to concerns raised in the other place that as originally drafted the requirement could prevent traders from improving digital content or offering flexible products. That outcome would not be good for consumers, so we have clarified that the requirement does not prevent traders from adding new features or enhancing existing features, as long as the original description is still met.
We have amended the provision on digital content that causes damage to a consumer’s device or other digital content. That will allow traders to exclude or restrict their liability under the Bill for damage to the consumer’s device or other digital content, to the extent that it would be fair under the unfair terms provisions in part 2 of the Bill. That provision will apply even to free digital content, specifically when it causes damage and the consumer can show that the trader failed to use reasonable care and skill to prevent the damage occurring. We have clarified the maximum fining penalty that the regulator of premium rate services can impose on non-compliant and rogue operators, and we are making clear that where appropriate and proportionate, the regulator can impose the maximum fine for each contravention of the code. That maximum is £250,000, so in the event of a company making two serious contraventions of the code, the regulator could impose a fine of up to £500,000 if that was considered appropriate and proportionate.
We are determined to tackle the minority of rogue letting agents who offer poor service, and in Committee we added provisions to ensure transparency of letting agent fees, to give consumers the information they want while supporting good letting agents. It is important that that requirement comes into effect as soon as possible to ensure that tenants have certainty over the payments that they make, and for that reason we are putting the enforcement details in the Bill. We are also applying the duty on letting agents to publicise fees in Wales as well as England. That was requested by the Welsh Government and has the added advantage of minimising any cross-border enforcement problems.
Existing legislation requires landlords and letting agents acting on their behalf to protect the tenant’s security deposit. That is the most significant money likely to be held by an agent, but they might hold other money on their client’s behalf, which is why the Government already encourage agents to join client money protection schemes. Public awareness of that is not as high as we would like, so we are also requiring agents to state whether they are a member of a client money protection scheme.
From 1 October last year all letting agents and property managers must belong to one of our three approved redress schemes that provide tenants with an effective way to address complaints. We will now require letting agents to publicise which redress scheme they have joined. Those changes will level the playing field for agents by raising awareness of what best practice looks like, put downward pressure on fees, and provide consumers with the information they need without introducing significant new costs to the sector.
As set out in our 2011 White Paper on higher education, we are providing all higher education students who receive public support with access to external dispute resolution. That reflects the fact that increasingly, new and different providers are offering higher education, not just the traditional university sector, yet only a handful of alternative providers—seven in total—have so far voluntarily joined the Office of the Independent Adjudicator’s complaints handling scheme. We are making it mandatory for alternative providers whose courses are designated for student support to join.
I convey my grateful thanks to the Delegated Powers and Regulatory Reform Committee. It published the outcome of its scrutiny on 11 July 2014, and I was delighted to accept its recommendations that the exercise of certain powers in the Bill be subject to the affirmative resolution procedure, as reflected in the amendments. We also addressed concerns that current provisions for the appointment of the Competition Appeal Tribunal—or CAT—effectively exclude judges from the Scottish Court of Session or the Northern Ireland High Court. We have now ensured that Lord Chief Justices of England, Wales and Northern Ireland, and the Lord President of the Court of Session, may nominate any suitably qualified individual who is already a judge sitting in a relevant court to be deployed as a CAT chair.
We have improved provision for private actions in competition law. First, we are allowing the Competition and Markets Authority—the CMA—to approve an outline of a voluntary redress scheme, and for the business to create a full scheme afterwards. That is part of a wider Government initiative to promote alternative dispute resolution, and it allows responsible businesses who wish to make redress to those they have wronged an avenue to do so. The amendment allows the CMA to impose conditions necessary to set up a full scheme. If those conditions are not complied with when the full scheme is set up, the CMA can withdraw approval or consider a revised scheme.
We are enabling provision to be made for claimants to incur costs if they apply to have the representative to the action removed but lose the application. That is in line with the wider “loser pays” principle that exists in domestic law, and should deter vexatious applications. The Government recognise that during collective proceedings, not all damages are claimed. Therefore the Bill makes provision that the CAT may award unclaimed damages from opt-out collective action proceedings to a prescribed charity—currently the Access to Justice Foundation. Although the body to receive unclaimed damages may be changed, we are ensuring that it must always be a charity.
The Bill consolidates and simplifies important provisions on investigatory powers of consumer law enforcers, and the Government greatly value the vital work that enforcers such as trading standards do in protecting consumers and legitimate businesses. We now require enforcers to give two days’ written notice for routine inspections, and we have set out clear exemptions to that. We are firmly underlining that provision by putting it beyond doubt that notice need be given only for routine inspections, which is when there is no reason to doubt that the business in question is operating properly without any significant breaches of legislation. We have committed to review the practical effect of the notice requirement within two years of the commencement of the Bill. As a result, we are confident that the powers and safeguards strike the right balance between protecting civil liberties, reducing business burdens, and ensuring effective enforcement, and I invite the House to agree with the amendments.
National Minimum Wage
Debate between Jo Swinson and Baroness Primarolo(9 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jo Swinson
I will come to those remarks in a minute. I understand the very real concern that has been expressed.
The hon. Member for Birmingham, Erdington (Jack Dromey) talked about the money the Government spend to support people on the national minimum wage and suggested that a higher minimum wage could reduce that expenditure. The Institute for Fiscal Studies has analysed that suggestion and is not sure that that would be the result. Nevertheless, he made a powerful and passionate contribution, particularly given his experience over many years dealing with these issues. His point at the end was perhaps the most important: this is about the moral cause of ensuring people are properly rewarded for their work.
Members on both sides of the House have been understandably shocked by Lord Freud’s remarks, which, I stress, absolutely do not reflect the Government’s position and are clearly offensive and unacceptable. I am glad he has issued a full apology. Of course, my hon. Friend the Member for Harlow (Robert Halfon) rightly expressed his dismay that the shadow Education Secretary mistakenly accused him on television of supporting a lower minimum wage for disabled people. I hope that my hon. Friend’s intervention will have helped to correct the record, not just here, but more widely.
The hon. Members for Westminster North (Ms Buck) and for Bolton West and my hon. Friend the Member for Bedford (Richard Fuller) raised the issue of travel time in the social care sector, and it is important—[Interruption.]
Madam Deputy Speaker (Dame Dawn Primarolo)
Order. There are too many private conversations going on in the Chamber, and it is disrupting my ability to hear clearly what the Minister is saying. If Members are in the Chamber, they are here to listen to the Minister. If they want to have a private conversation, they could step outside to continue it.
Jo Swinson
Thank you, Madam Deputy Speaker.
Travel times are a genuine issue. If somebody is expected to travel—during the day as part of their work, rather than to and from work—that time should be included for minimum wage calculation purposes. I shall repeat the number for the pay and work rights helpline, which investigates these complaints: 0800 917 2368.
HMRC did a major piece of work on the social care sector and found that of the 224 employers investigated between 2011 and 2013, 104 were not paying the minimum wage properly, and identified £1.2 million of arrears for more than 6,300 workers. So there is a way that people can get what they are due, but we need to look at the wider issues as well, which is why the Department of Health recently consulted on statutory guidance for local authorities to make that crystal clear. The final guidance is expected soon. It is vital that we have proper enforcement, which is why we have increased the enforcement budget by 15% to £9.2 million. The extra money will help to employ extra compliance officers to ensure that complaints can be properly investigated and proactive work undertaken to investigate non-compliance. Indeed, just last year, 22,600 workers were paid back arrears of £4.6 million as a result of HMRC’s work.
The hon. Members for St Albans (Mrs Main) and for Elmet and Rothwell (Alec Shelbrooke) mentioned interns. On this point, we already have clear rules: if somebody is expected to turn up and undertake specific tasks, they should be getting the national minimum wage, whether they are in the House of Commons or anywhere else. It is right that somebody highlighted the excellent Speaker’s parliamentary placement scheme, set up by the right hon. Member for Salford and Eccles (Hazel Blears), along with my hon. Friend the Member for Lancaster and Fleetwood (Eric Ollerenshaw). I was involved in making that happen before I became a Minister. It is a good scheme and one that I hope will continue to be successful.
Zero-hours contracts will be discussed in more detail in the Small Business, Enterprise and Employment Bill, but the Government are taking action, through a code of practice, to ban exclusivity and improve standards for people working on such contracts.
In conclusion, the Government support the national minimum wage setting minimum standards in the labour market and encourage employers to pay more. We do not agree with the Opposition’s flawed prescription on the best way to achieve this, and we do not support the motion, but we will continue to support the national minimum wage and protect the most vulnerable people, making sure that we have more jobs in the economy and lower taxes, so that people can keep the benefit of their hard work.
Question put.
Delivery Surcharges (Transparency for Consumers) Bill
Debate between Jo Swinson and Baroness Primarolo(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Madam Deputy Speaker (Dawn Primarolo)
Order. Before the Minister carries on, I should tell her that other hon. Members wish to speak in the debate. It is not an Adjournment debate or a discussion between her and Sir Robert Smith. I hope she is watching the clock and leaves enough time for other hon. Members to contribute.
Jo Swinson
Thank you, Madam Deputy Speaker. I will take your guidance seriously.
I welcome my hon. Friend’s contribution. As he outlines, we can have a productive discussion with those businesses. It does not need to be rocket science for them. Some might have the problem in the “too difficult to do” box, and some might be unaware of how much distress the problem causes their customers in different parts of the country. By promoting the dialogue, raising awareness and setting out that the problem is not incredibly difficult to solve, we should be able to make things significantly better for the consumers whom the Bill intends to help. I hope I have set out why the Bill is not necessary to target the problem. The problem is genuine, and the Government are keen to work with my hon. Friend and others to ensure that it is properly addressed. I know that other hon. Members who have experienced the problem in their constituencies are keen to contribute and I look forward to hearing what they have to say.
Enterprise and Regulatory Reform Bill
Debate between Jo Swinson and Baroness Primarolo
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)
I beg to move, That this House disagrees with Lords amendment 35.
Madam Deputy Speaker
With this it will be convenient to discuss the following:
Lords amendments 36 to 38 and Government motion to disagree, and Government amendments (a) and (b) to words so restored to the Bill.
Lords amendment 39.
Lords amendment 40, Government motion to disagree, and Government amendments (a) to (h) in lieu, and amendments (i) and (ii) to Government amendments (a), (b) and (c) in lieu.
Jo Swinson
May I say what a great pleasure it is to see you back in the Chair after your time away, Madam Deputy Speaker? I am sure the whole House will wish to echo that sentiment.
As has already been discussed in this place and the other place, the measures in this Bill aim to promote long-term growth and reduce regulatory burdens on business. Consideration in the House of Lords has led to important changes to the Bill, the great majority of which the Government believe strengthen and improve it, and we will consider those changes when we discuss the second group of amendments. The first group of amendments deals with the few issues where the Government do not support the change proposed in the House of Lords. We have reflected carefully in the light of the strong views expressed and I will take each issue in turn.
As I outlined on Report, we want a strong, independent Equality and Human Rights Commission, and a great deal has already been achieved since we last debated that matter in the House. We have appointed a new chair of the EHRC, who has been welcomed by Members from all parties, and six new members to its board. We have announced a budget, agreed with the EHRC, to enable it to continue its important work.
Under the leadership of Baroness O’Neill, we are confident that the organisation will go from strength to strength, but for any organisation to be successful, it must have clarity of purpose. The general duty is not a core purpose; it is a much more vague and aspirational statement. Although I am sure that people can agree with the sentiments it expresses, it does not help the commission or anyone else to understand clearly, in a focused way, what it is there to do and, importantly, what it can achieve. That is why we are seeking to repeal the general duty. The change will not hinder the EHRC’s ability to fulfil its important duties and responsibilities.
We are also changing the commission’s monitoring duty to ensure that it reports on its core functions, rather than on the state of society generally. That will enable the EHRC to continue to promote equality of opportunity, tackle discrimination, and protect and promote human rights, but more effectively than before. It will also enable the EHRC to gain the that respect hon. Members want it to have as our equality body and national human rights institution.
Enterprise and Regulatory Reform Bill
Debate between Jo Swinson and Baroness Primarolo(11 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Madam Deputy Speaker
Order. Mr Umunna, when I say, “Order”, you sit down. I also need to remind you that interventions are supposed to be brief. I appreciate that you were using a quotation, but using several quotations is not in order.
Jo Swinson
I meet and speak to those Liberal Democrat colleagues regularly, and I spoke to Lester Holloway last week about these issues. Some of the points that have been made have been based on inaccurate information, such as that about black and minority ethnic staff in the commission. The commission has corrected a lot of inaccurate information and misunderstanding about the impact that the restructuring plans will have on its staff. Of course, diversity is taken very seriously in all public sector organisations, but in the EHRC perhaps more than most there is acute awareness of how vital it is.
The duties that will remain in sections 8 and 9 of the Equality Act 2006 are the core functions of the EHRC. Several Members referred to the Let’s Kick Racism Out of Football campaign, which was an excellent initiative but contained nothing at all that could not be done under section 8. It is a false argument to take something excellent that the EHRC has done in the past and say that such an initiative could not be taken in future because of the changes that we are making to section 3. It absolutely could be taken under section 8.
Several Members asked whether the changes to the EHRC were about growth. I am not going to pretend that making its remit more structured is specifically a growth measure, but that does not mean that it is not a helpful thing to do. I have outlined the impact that the provisions coming out of the red tape challenge will have on business. Business will welcome that, coupled with all the other measures that we are taking in the red tape challenge to bear down on unnecessary regulation.
Several comments have been bandied around that many Government Members wish to see the back of the EHRC and that the change is abolition by stealth. I hope that I can reassure hon. Members that that is not the case. We certainly have not heard any suggestions to that effect from Government Members. Perhaps if that was what they believed, they would have come to the House to say so today. [Interruption.] I am sure that if any of them had wished to say that, they would have done. Even if that were the case, it is not the coalition Government’s position. We recognise that the EHRC is an important institution and that equalities law is vital. It is vital to our economic recovery, because we need to ensure that we use the talents of all the people in our work force and potential work force. That is why we are ensuring that it is focused on what is most important. We want to focus the EHRC on its core functions and, as I have mentioned, strengthen its governance and accountability, in which we have already had some degree of success.
A few Members mentioned the consultation and suggested that there was not necessarily unanimous support for the Government’s measures. However, if we examine the responses that were received from individuals—for clarification, they were not Members of Parliament—we see that more than half advocated the abolition of the EHRC. Opposition Members should be slightly careful what they wish for if they urge Governments always to follow consultation results exactly. We obviously have to take views into account, but we must also ensure that important provisions and protections are not undermined. Even if there were to be a groundswell of support for doing such a thing, the Government would recognise the important protections that the EHRC ensures are in place.
The hon. Member for Hayes and Harlington (John McDonnell) asked questions about the equality advisory and support service helpline, which opened on 1 October. It has some advantage compared with the previous commission helpline. It is open for longer—from 9 am to 8 pm Monday to Friday and from 10 am to 2 pm on Saturday—and is therefore more convenient. It handles conversations that people might not want to have while they are at work, so having longer opening hours is helpful and makes the service more accessible. It is free to phone from landlines, and it will soon be free from most mobiles too.
The inaccurate suggestion was made that the helpline can be used only when there are referrals from other organisations. That is not the case. It is there to help people with discrimination problems, and there is nothing to prevent a member of the public from approaching the EASS directly, although we accept that most people probably will access it via a referral.