Mr Michael Fabricant (Lichfield, Conservative)

I have some questions regarding the notification of non-payment of charges. I am pleased to see that there are provisions whereby Ofcom cannot unilaterally and suddenly announce that charges will be made against the licensee. However, I am curious to know whether there are any provisions for charging interest for late payment. That issue was discussed at great length during proceedings on the Office of Communications Bill. Where are those provisions, and what rate of interest would be applied?

Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)

There are no such provisions, and there is no intention to impose interest.

Mr Michael Fabricant (Lichfield, Conservative)

I am grateful for the Minister's reply. If what he said is true, the only remaining option if someone does not pay on time is the nuclear option of withdrawing a licence, which is available under the Office of Communications Act 2002. Perhaps the Minister would like to consider how the Bill could be amended later. I am quite stunned. It is most unusual for any organisation not to have provision to charge interest on late payment. Even the Inland Revenue has such provisions. If the Bill does not provide such provisions, the nuclear option of withdrawing a license is all that is left. That seems particularly draconian. Would the Minister consider introducing such a provision?

Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)

I am happy to reflect on what the hon. Gentleman said. However, it is not clear to me that the alternative is the nuclear option that he outlined. Enforcement is an essential part of a charging system, and it is important that the money involved is recovered. I will reflect on the point that the hon. Gentleman made, and on whether explicit legislative sanction would be required. It would be possible to enforce the penalty by normal procedures—court orders and so on. That is the mechanism through which it is envisaged that money would be recovered. I shall reflect further on whether provisions on interest are necessary, though it is not clear to me why they should be.

Mr Michael Fabricant (Lichfield, Conservative)

I am grateful to you, Mr. Gale, for indulging me. The Minister said that he was not sure why such provisions were necessary. I think that they are necessary because if a small radio or ITV company, or any other broadcaster, such as a small satellite broadcaster, were to have cash-flow difficulties, it might decide to pay suppliers that charged interest sooner rather than later. If no such provision is available to Ofcom, that broadcaster may consistently decide to leave paying Ofcom licence or other charges until the last minute.

Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)

I am happy to reflect further on the points that the hon. Gentleman has made.

Question put and agreed to.

Clause 36 ordered to stand part of the Bill.

Clauses 37 to 40 ordered to stand part of the Bill.