Public Bodies Bill [HL]

Lord St John of Fawsley Excerpts

Tuesday 9th November 2010 Lords Chamber

[Lord Borrie]

My Lords, last Thursday, all sides of this House very much welcomed the Government’s statement that they were referring to Ofcom the acquisition by News Corp of the remaining shares in BSkyB which it did not own. In the course of my remarks, I ventured to raise the issue in regard to the Bill. I said, “What if Ofcom, which is listed in Schedule 5 and in Schedule 7, no longer exists?”. I was very glad that the noble Baroness, Lady Rawlings, who is in her place today, said that I need not worry on that score. She said:

“Ofcom, with all its responsibilities, will stay”.—[Official Report, 4/11/10; col. 1811.]

What did she mean by “stay”? If she meant that it will stay until 31 December, which is the date by which it has been asked to complete its present inquiry, that is not a very substantial promise. If she meant that it will stay indefinitely, the question arises, why is it in Schedule 5 and in Schedule 7?

There is uncertainty upon uncertainty. I use that as an example and it is applicable to so many different bodies. This Bill is not simply causing anxiety, although I need not develop that point because it has been mentioned several times. As the Constitution Select Committee of this House has said, in effect this is an unconstitutional Bill; it is very rare for us to see such a critical and condemnatory statement as has been made by the Select Committee relating to this Bill.

Questioning the work, questioning the costs and questioning the purpose of many public bodies is perfectly legitimate and justifiable and a very proper objective of any Government. Quangos may have outlived their purpose and outlived their usefulness but an attempt to condemn to oblivion or to change, in an enabling Bill, a whole host of bodies across the whole spectrum of government, without consultation, seems wildly unjustified. Involving so many bodies, the Bill leaves huge uncertainty and, as my noble friend Lady Andrews pointed out, uncertainty among all those bodies listed on the five pages of Schedule 7.

One set of bodies mentioned is the Office of Fair Trading and the Competition Commission, listed under Schedule 5. The Government have said, ex cathedra, that these two bodies are to be merged. The uncertainty here is not about whether there will be any change but about what it will mean to merge such bodies in terms of the investigatory functions. Are those functions of the Office of Fair Trading to be performed by the same people as are to perform the quasi-judicial functions of the Competition Commission, or is this new body arising from the merger to be newly constituted? The Government have said that the Office of Fair Trading is to lose its consumer protection role, which has so often helped to inform the office in its investigatory competition work. In any case, where is the competition protection work to go to? It cannot go to the National Consumer Council because it, under the name of Consumer Focus, is being abolished. Apparently, the Office of Fair Trading’s consumer role is to go to the trading standards offices of local authorities and the citizens advice bureaux—both excellent bodies which do excellent work.

None the less, this is an important shift in the world of consumer protection to local and charitable organisations. The chief executive of the Trading Standards Institute, a splendid man called Mr Ron Gainsford, described this as a,

“huge leap of faith. I just hope it isn't a leap in the dark”.

There must be a question whether a local trading standards office or citizens advice bureau will have the resources, the expertise, the training and all the rest of it to deal with international companies such as big banks. The organisation Which? has pointed out a tremendous weakness if everything is transferred locally and there is nothing left for consumer protection work nationally.

[Lord St John of Fawsley]

I agree with much of what the noble Lord, Lord Borrie, said. I think that these bodies should be examined in particular. However, where did the precedent come from? I point out to the noble Lord what happened to the Royal Fine Art Commission, of which I was chairman for 15 years, and which cost £750,000 to the taxpayer, as opposed to the £15 million which CABE now costs the taxpayer. How were we abolished? Not by constitutional discussion in this House; we were abolished by fax by the Minister concerned. That was a disgrace and we do not want that to happen again.