Clause 50 - Officers of enforcement authorities other than OFT
Consumer Credit Bill
12:15 pm
Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
In response to the questions asked by the hon. Member for Wealden, I will outline the clause for the rest of the Committee.
New sections 36C and 36D inserted by clauses 47 and 48 will enable the OFT to ask offices of other enforcing authorities to carry out information gathering on its behalf. In practice, those other local enforcement authorities are likely to be local authority trading standards offices. They should be able to act as the OFT’s legs on the ground, carrying out routine monitoring visits and executing search warrants obtained by the OFT.
Under new section 36F inserted by this clause, anything done by an enforcement officer in the course of this activity will be treated as though it has been done by the OFT. That will not apply if the enforcement officer does anything that results in criminal proceedings. The OFT will enter into an arrangement with the trading standards authorities to carry out such activities. Trading standards officers must not disclose any information obtained as part of the such activity without the approval of the OFT, although that does not apply if the officer is under a duty to disclose the information.
In Northern Ireland, the Department of Enterprise, Trade and Investment carries out the function performed by trading standards officers in England, Scotland and Wales. The Bill will enable the OFT to work with the Northern Ireland body to carry out information-gathering activity in Northern Ireland. Trading standards officers have both the local knowledge and the proximity to carry out information and investigation work on behalf of the OFT, and they already have the expertise to take on the role. However, the OFT will also provide training and support. Working in partnership, the OFT and trading standards officers will be able to monitor licensees to ensure that they remain fit to hold consumer credit licences. The new powers will mean that the resource is used more effectively. The OFT will remain the primary enforcement body under the legislation and licensing decisions will still rest with it. That will improve standards and result in better protection for consumers.
Trading standards officers already enforce part of the 1974 Act, and they will work with the OFT to provide additional training. The OFT will fund trading standards activity under clause 50, and the OFT and trading standards staff will operate under appropriate agreements, so there will not be an on-cost to local trading standards authorities. We will debate later the role of trading standards in the wider context of the Hampton review. With that explanation, I hope that hon. Members will feel able to support the clause.