Clause 27 - Charge on applicants for licences etc.
Consumer Credit Bill
10:15 am
Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
We move on to issues relating to the Office of Fair Trading. Licence applicants will be required to pay a charge towards the OFT’s costs of carrying out its functions. That is the same as under the current system. Payment will be required on application and periodically after that, probably every five years.
The OFT will issue a general notice setting out the level of the charges and it is likely that the licence charge will increase from its current level. Approval of the Secretary of State and the Treasury will be required before charges are set. The OFT may set licence charges according to the category or sub-category of activity entered into. That will reflect the cost of monitoring. Narrow licences may attract a reduced charge, but licences in high risk sectors may attract a higher charge and some types of licensees will not have to pay an application or maintenance charge.
The increased charge will fund more effective monitoring of licensees. That will ensure that they remain fit to hold a licence, including visits to premises when appropriate, and will enable the OFT to use the additional powers in the Bill to investigate applicants and licensees.