Mr Andrew Robathan (Blaby, Conservative)

I beg to move amendment No. 277, in

clause 117, page 109, line 19, leave out 'the pricing of premium rate services' and insert 'the transparency of pricing of premium rate

services and the maximum amounts payable for each transmission of a premium rate service before a transmission is terminated.'

Mr Roger Gale (North Thanet, Conservative)

With this it will be convenient to take amendment No. 278, in

clause 118, page 109, line 37, after 'about', insert 'the transparency of'.

Mr Andrew Robathan (Blaby, Conservative)

The amendments are inspired by the mobile telephone operators, who seek particular clarification that ICSTIS's activities remain confined to consumer protection and do not extend into economic regulation. The Committee will see that any code approved under the section as worded will include provision about the pricing of premium rate services. That seems to give ICSTIS responsibility for pricing matters. The amendment would replace the pricing of premium rate services with the words

''the transparency of pricing of premium rate services and the maximum amounts payable for each transmission of a premium rate service before a transmission is terminated.''

Amendment No. 278 is consequential upon that.

The amendments seek to clarify the position that ICSTIS is not an economic regulator, and that it does not, and should not be asked to, make judgments about the fairness of service providers' pricing, which is surely a matter for the Office of Fair Trading or for Ofcom, if applicable. It should be absolutely clear that the premium rate service regulator is there for the purpose of protecting consumers from unexpectedly high telephone charges incurred by them or by others at their expense, and from getting access to inappropriate material. ICSTIS should not be put in a position in which it is required make judgments about value for money and similar problems of economic regulation. The amendments would provide that certainty and fulfil the Government's policy objective that these provisions do not extend the scope and responsibility of ICSTIS's work.

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

It is certainly not the Government's intention that ICSTIS, or indeed anyone else who might in future be responsible for the code referred to in the clause, should engage in economic regulation. I agree with the hon. Gentleman about that. We aim to ensure that users are not taken advantage of by unscrupulous operators or subjected to extraordinary costs without being aware of the risks that they are running. In principle, that requires the transparency on cost and maximum charge prior to a call being terminated that the amendment envisages. The ICSTIS codes sets out several different maximum charges. There is the potential for services to be structured in a way in which a set maximum would not be appropriate. In any event, setting a maximum charge might not be helpful to mobile operators where the cost of premium rate service is often a little higher than it would be from a land line.

We should stick to the wording in the Bill. I give an undertaking to reflect on what has been said this afternoon and look again at several issues. I shall consider whether the text will implement our intentions faithfully. If we conclude that changes are needed, I shall table an amendment at a later stage.

Mr Andrew Robathan (Blaby, Conservative)

I am delighted to hear the Minister's words. As he has been so generous with his reflections, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

It being Seven o'clock, The Chairman proceeded, pursuant to Sessional Order C relating to Programming [29 October 2002] and the Order of the Committee [10 December 2002] to put forthwith the Questions

necessary to dispose of the business to be concluded at that time.

Clauses 117 to 146 ordered to stand part of the Bill.

Further consideration adjourned—[Mr. Jim Murphy.]

Adjourned accordingly at Seven o'clock till Thursday 9 January at five minutes to Nine o'clock.