Clause 11 - Super-complaints to the OFT
Enterprise Bill
6:30 pm
Mr Nigel Waterson (Eastbourne, Conservative)
We have reached one of the more exciting parts of the Bill. [Interruption.] I notice a ripple of excitement among Labour Members, particularly from the hon. Member for South Ribble. I am sure that we shall have a lively debate.
The arrival of the super complaint must have seemed like the arrival of gunpowder and cannons to the proprietor of a medieval castle–alarming and impressive at the same time. It is, on paper, an extremely powerful weapon, which could change the balance of power–I do not want to get too carried away or I shall sound like David Starkey–between consumers and business. Like all powerful weapons, it must be handled with care. That is why we have tabled a number of amendments; they express our concerns, queries and probing ideas and those of business about how it will work in practice.
I should like to make a point that might be of help. Our general approach will be to seek fairly wide debates on groups of amendments, but to dispense with a stand part debate unless no amendments to the clause have been tabled. Even then, we might not have a stand part debate if the clause does not warrant it.
However, because this clause is such an important part of the Bill, we might want to say something about the stand part aspect of it even after we have dealt with the amendments.
When the Department is preparing its press releases about how wonderful the Bill is, the provision for super complaints will be one bit that ends up in the first paragraph. The concept of super complaints is widely welcomed by the consumer organisations. We are keen for it to work in a way that delivers for consumers but does not cause massive problems and disruption for legitimate business.
The wording of amendments Nos. 17 and 24 replicates the wording in article 81 of the EU treaty and the chapter 1 prohibition in the Competition Act 1998. Without such replication, it seems to us and to organisations such as the CBI that there is a risk of inconsistency and uncertainty. There is also the possibility that a new and unnecessary additional standard could be introduced into the UK competition regime. I do not know whether that was what the Department had in mind when it drafted this part of the Bill, but we want to find out through these probing amendments.
Amendment No. 18 would delete the wording
''is or appears to be significantly harming the interests of consumers''
and replace it with the phrase
''prevents, restricts or distorts competition''.
That would again replicate wording in article 81of the EU treaty and the chapter 1 prohibition in the 1998 Act. It is again a question of consistency and certainty and the concern is again that a new and additional standard is being introduced into the regime. Anti-competitive behaviour almost by definition harms consumers, so is there any real need to refer to them explicitly?
That is the reasoning behind the group of amendments. They are more probing amendments than anything else, but I would be interested to hear the Minister's response to them.