Clause 52 - POWER OF OFT TO IMPOSE CIVIL PENALTIES
Consumer Credit Bill
10:30 am
Mr Laurence Robertson (Shadow Minister, Economic Affairs; Tewkesbury, Conservative)
I beg to move amendment No. 37, in clause 52, page 43, line 16, at end insert
'This amount may be altered by the Secretary of State by Statutory Instrument.'.
This issue was raised several times on Second Reading, particularly by Labour. Members. It relates to clause 52(3), which states:
''The amount of the penalty shall not exceed £50,000.''
It is probably correct to put a figure in the Bill, but Labour. Members were concerned that that figure might not be high enough in certain cases. More particularly, there is no provision in the Bill for the Minister to amend that figure by statutory instrument. It may be that, if we take another 30 years to revisit consumer credit—which we may or may not do; I do not know—that figure of £50,000 could become rather paltry.
We have relatively low inflation at present, but that may not always be the case, especially if we continue with the level of spending and debt that this Government seem determined to pursue. It might not be long before £50,000 is not much more than a slap on the wrist for some companies. I am trying to help the Minister by tabling the amendment. I am disappointed that none of his hon. Friends did so, because the point was raised several times on Second Reading.
The amendment does not alter the maximum penalty set out in the Bill. I do not suggest that the figure of £50,000 be changed; I suggest that the Minister should be able to vary the figure in future if he thinks it necessary, given the conditions at the time and, possibly, the seriousness of any offences that may be committed. We do not know what will happen in future, so it would be helpful for the Minister to have that power.
I am not normally one for giving too much power to Ministers, but we must be realistic. The Bill could become irrelevant if it is another 30 years before the issue is revisited. Why is that power not in the Bill? The Bill leaves many areas open in which a Minister can intervene; some of which are desirable, some of which perhaps ask too much of a Minister. I am surprised that this subsection cannot be changed, and I look forward to hearing the Minister's explanation.