Clause 94 - Power to deal with urgent cases
Communications Bill
Public Bill Committees, 19 December 2002, 11:15 am

Mr John Greenway (Ryedale, Conservative)
I beg to move amendment No.108, in
clause 94, page 89, line 43, leave out from 'direction' to end of line 47.
Under the clause, where Ofcom has reasonable grounds for believing that there has been a breach and reasonable grounds for believing that the matter is urgent, it can take action by direction. Under subsection (6)(b), it can attach conditions to the direction. It is not appropriate for Ofcom to have such a potentially wide-ranging power to impose possibly damaging conditions on a provider purely on the basis of there being, in Ofcom's view, reasonable grounds for believing that there has been a breach and reasonable grounds for believing that the matter is urgent.
The amendment therefore seeks to remove the power to impose conditions. In responding to a similar amendment addressing the reasonable grounds issue, the Minister explained persuasively why it was important that Ofcom had the necessary powers. I suggest to him that even if the amendment were accepted, Ofcom would still be able to suspend an operator's entitlement to provide—what used to be the licence—either for the activity in question or its entire business. The issue is that the power to attach conditions is not limited to the activity in dispute because it gives Ofcom carte blanche. The regulation is poorly targeted and it could lead to disproportionate regulation. It goes beyond what is needed for Ofcom to be able to act speedily and incisively in the manner that the Minister described earlier today.

Dr Nick Palmer (Broxtowe, Labour)
I wonder whether the hon. Gentleman is concerned by the fact that if the amendment were carried subsection (6)(b) would no longer have any discernable meaning. He would have been better advised to delete from the word ''and'' in subsection (6)(a).

Mr Stephen Timms (Minister of State (e-Commerce & Competitiveness), Department of Trade and Industry; East Ham, Labour)
On the particular point on which the hon. Member for Ryedale's remarks were focused, any conditions attached to the direction, which require the contravening provider to pay compensation to their customers, cannot take effect until and unless the direction has been confirmed, which is set out in clause 95(6). There is, of course, an option to appeal to the Competition Appeal Tribunal.
I am resisting the amendment on the grounds that it would remove Ofcom's ability to impose conditions on a provider subject to suspension or restriction for the purpose of protecting that provider's customers, and it would significantly reduce the effectiveness of those powers both as a deterrent and in their actual use. I hope that the hon. Gentleman will not press the amendment because I was able to make the point about the conditions being attached.

Mr John Greenway (Ryedale, Conservative)
As it is Christmas, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 94 ordered to stand part of the Bill.

Mr Peter Atkinson (Hexham, Conservative)
I shall mention some housekeeping arrangements for when we get back with regard to the tabling of amendments. Amendments can be tabled up to the rising of the House today, and they will be published on the blue papers on Friday 20 December. Amendments may be tabled on any working day during the Christmas recess. On Friday 3 January the Public Bill Office will open until 4.30 pm, and any amendments tabled after that time will be sent for publication in the blue papers on Monday 6 January. Any amendments tabled up to 4.30 pm on Friday 3 January will appear unstarred on Tuesday 7 January, and will therefore be eligible for selection at that day's meeting of the Committee. The Public Bill Office will open on Monday 6 January, but amendments tabled then will not be eligible for selection on Tuesday 7 January.
Finally, I remind members of the Committee that we reconvene on Tuesday 7 January. With Tuesday
being a Monday in the weird world of Parliament, we will start at 4.30 pm as opposed to 2.30 pm. Merry Christmas!
It being twenty-five minutes past Eleven o'clock, The Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till Tuesday 7 January 2003 at half-past Four o'clock.
