Clause 5
Compensation Bill [Lords]
4:30 pm
Oliver Heald (Shadow Secretary of State for Constitutional Affairs & Shadow Chancellor of the Duchy of Lancaster (Assisted By Shadow Solicitor General), Constitutional Affairs; North East Hertfordshire, Conservative)
I beg to move amendment No. 7, in clause 5, page 4, line 13, at end insert—
‘(4A) The Secretary of State may not make an order under subsection (1) or (2) in relation to a trade union or other similar body.'.
If we are to regulate the claims-handling world, we must do so properly. The definition of claims management services in the Bill has clearly been drawn intentionally wide to ensure that there are no loopholes that unscrupulous individuals or companies could use to evade regulation. The definition captures all those who provide claims management services, subject to the points that I made about the term “regulated”.
However, there is also a power to exempt. While I can see the logic in exempting bodies whose claims management services will be regulated under the new Legal Services Board umbrella, I cannot understand why the Government believe that trade unions should be exempt, because some have clearly behaved in the same way as disreputable claims handlers.