Clause 47 - Inspection of premises
Pensions Bill
3:30 pm
Mr Chris Pond (Parliamentary Under-Secretary, Department for Work and Pensions; Gravesham, Labour)
Despite the hon. Gentleman's assumption that there is great interest in these issues outside this Room, I have to tell him that the west end play, ''An Inspector Calls'' is not based on the powers of the regulator.
The amendments seek to ensure that if the regulator exercises its powers to inspect premises and takes no subsequent action, the owner of the premises is entitled to claim compensation from the regulator. The amendments could have an adverse effect by hampering the regulator and adding to its costs in protecting scheme members' interests and the valuable assets of pension schemes. Premises are liable to inspection only if the inspector has reasonable grounds to believe that scheme members are employed there, documents relevant to the administration of the scheme are being kept there, or the administration of the scheme—or work connected with it—is being carried out there.
Information collecting and management are the key to the new risk-based approach to regulation. The regulator will need to have accurate, up-to-date information about schemes. It will only have powers to request information that is relevant to its functions. It will have procedures in place to ensure that all legal obligations are adhered to, including those imposed by the Data Protection Act 1998. If the regulator requires a scheme or other person to supply a document or piece of information, it would in the first instance request it under its power in clause 6. If that information were not forthcoming, the regulator might resort to its powers to enter and inspect premises. Robust measures are needed to ensure that when there is non-compliance with the request for information, decisive action can be taken to ensure that the regulator can fulfil its objective of protecting scheme members' benefits. That is what the powers to inspect premises are there for.
Hon. Members may wish to note that clauses 47 and 48, to which we shall come in a minute, each replicate powers that OPRA has under the Pensions Act 1995 and the Pension Schemes Act 1993. I cannot for the moment think who was in power when those two pieces of legislation were introduced. Hon. Members may also wish to note that OPRA carries out on average 12 unannounced visits per year. These powers are important, but they are exercised in moderation.
Given the strictures within which the regulator will have to operate when conducting investigations, the additional cost burdens that the amendments could place on those activities are unnecessary because they restrict the regulator's powers to acquire up-to-date information. They are also potentially harmful to the people and interests—the pension scheme members—
that the regulator is there to protect. I ask the hon. Gentleman to withdraw the amendment.