Enterprise and Regulatory Reform Bill
Debate between Peter Bottomley and Jo Swinson
Jo Swinson
I want to make a little progress, because I am conscious of time.
Amendments 38 and 39 focus on health and safety. Addressing the concerns about strict liability for breach of health and safety duties is an important element of the Government’s wider reforms to tackle both the perception of a compensation culture and the damaging effect it has on sensible health and safety management and business growth—concerns consistently reported by businesses.
As was outlined on Report, the purpose of this reform is to establish the important principle that a responsible employer should not be liable to a civil claim for compensation where they have taken all reasonable steps and have not been negligent. The substantive law is unaffected. Criminal offences and their enforcement will not be affected, and employees will continue to have the right to bring claims for compensation where they can prove their employer has been negligent.
The Government do not believe that it is justifiable to hold employers liable for incidents outside of their control that they could not have reasonably prevented. The modern framework of law and supporting evidence and guidance means that employees are in a much better position than they have been historically to demonstrate whether their employer is at fault, and that will remain relevant as evidence in assessing what employers should have known and whether an employer’s behaviour was reasonable. That reform will mean that in future there will be a consistent approach to civil litigation across all health and safety legislation. This is simpler for all to understand and will therefore have a greater impact in increasing employers’ confidence to do the right things to protect their employees and to develop and grow their business.
We have proposed an amendment in lieu of amendment 38 and proposed that the House should agree with the other place in its amendment 39, which, as well as reinstating the main provision, would also reintroduce amendments agreed in Grand Committee in response to points raised by the Delegated Powers and Regulatory Reform Committee. The Committee took the view that a power to extend the policy to wider health and safety legislation was too wide, and the Government have agreed to remove it.
I shall now turn to letting and managing agents. Many letting agents act lawfully and provide a good service, but there is a minority whose service quality is unacceptable—no doubt Members on both sides of the House have heard tales from their constituents where this has been the case. Consumer protection legislation covers many of the problematic practices, but enforcement is patchy, particularly in less serious cases. Also, existing legislation does not give consumers direct access to redress.
The noble Lady Baroness Hayter of Kentish Town said in the other place that her amendment simply required agents to sign up to a redress scheme. In response, this Government amendment gives the Secretary of State the power to make an order requiring letting and managing agents of privately rented and residential leasehold homes to belong to a redress scheme. The Government will consult on the detail, taking into account the recommendations of the Communities and Local Government Committee Select Committee and the Office of Fair Trading.
Sir Peter Bottomley (Worthing West) (Con)
I look forward, if I can, to contributing to this debate later. In the consultation, will the Government consider setting minimum standards, adopting other codes, such as the code for the Royal Institution of Chartered Surveyors? Will the consultation also include disciplinary procedures and will there be an improvement to the protection of leaseholder funds?
Jo Swinson
I know that the hon. Gentleman has tabled amendments and is keen to press the Government on these issues. It is important that consumers have access to redress where letting and managing agents do not act as they should. Obviously, the specifics of the consultation have not yet been drawn up, but I am sure that, through Hansard, his suggestions will be well-received. I know that the Minister for Housing, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), will be happy to meet him to discuss his concerns in more detail in order to ensure that we get this right. Taking this power in the Bill will give us an opportunity to ensure that we get the details right. I hope I can reassure him, however, when I say that my hon. Friend the Minister for Housing is keen to ensure that we make speedy progress, while still getting the details right.