Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)

Continuing to be consistent, we are talking about the OFT powers to impose requirements on licensees and statutory bodies that hold a group licence. The power enables the OFT to respond proportionately to problems with a licensable business. When it is dissatisfied with certain matters, the OFT can impose a requirement on a licence holder for the reasons that we explained earlier. That is useful when the problem is not sufficient to warrant refusing or revoking a licence.

The clause requires the OFT to publish guidance on how it proposes to exercise its powers to impose requirements. The OFT must have regard to that guidance when exercising its powers under the clause. The Committee has been provided with a note about the OFT’s guidance. That note provides an idea of the scope of the guidance based on the clauses in the Bill. Clearly, once the Bill is passed, the OFT will consult on the guidance, as stipulated in subsection (4).

The guidance will give examples of requirements and more details of the procedure that the OFT will go through. The OFT is able to revise the guidance if new   issues arise. The clause will help businesses and consumers to understand how the OFT will use its powers to impose requirements.

Charles Hendry (Shadow Minister, Trade & Industry; Wealden, Conservative)

May I press the Minister for a little more clarification? In general, we support what is being suggested, but it seems that, in particular, the way in which the OFT will publicise the guidance is vague. Subsection (3) of the clause says:

“The guidance shall be published in such manner as the OFT thinks fit for the purpose of bringing it to the attention of those likely to be affected by it.”

Clearly one must be vague when setting such a measure out in primary legislation, because the way in which the guidance might be published will change over time. Does the Minister have an idea in his mind of how that will be appropriate? Will publication on the OFT website be sufficient? Will the OFT need to write individually to all licensees? Would it be enough to advertise in the newspapers? It would be useful to have a clear understanding of what the Minister has in mind.

Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)

The Minister has in mind that the OFT acts in concordance with its normal rules and procedures on how it deals with issues relating to discussion and consultation. The OFT is responsible to the Cabinet Office concordat that sets out how best practice on consultation and discussion should be administered. I am sure that the hon. Gentleman has read the details of that concordat backwards. It is reasonable to expect that the OFT will consult with all relevant stakeholders, which has been the way in which we have dealt with the issue previously on all matters relating to the Bill and to the White Paper.

James Brokenshire (Hornchurch, Conservative)

I return to the point that I raised earlier. I rehearsed the argument there and I will say it formally again. The issue is the lack of checks and balances in the form of the approval of the Secretary of State of any guidance published under section 33E. There is also the consistency point that I made earlier looking forward to clause 54 of the Bill. In that case, a statement of policy would not be published without the consent of the Secretary of State. I hear what the Minister said on my earlier comments, but I ask that the issue be considered again in the context of clause 42.

Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)

I do not know whether this answer will be helpful to the hon. Gentleman. One of the reasons is that this clause relates to the conduct and normal, regulatory function, which describes what the OFT should do. The requirement for guidance is subject to consultation. That may assist him, or not.