Schedule 1 - Schedule A1 to the 1974 Act
Consumer Credit Bill
Public Bill Committees, 28 June 2005, 5:00 pm

Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
I beg to move amendment No. 28, in schedule 1, page 57, line 33, after 'limits', insert
'(including the period specified for the purposes of section 41(1) of this Act)'.
The amendment ensures that the power of the tribunal to make procedural rules allows it to extend the time limit within which an appeal must be brought. That is in line with the current appeal system under which the time for an appeal can be similarly extended. I hope that the Committee will support the amendment.
Amendment agreed to.
Question proposed, that this schedule, as amended, be the First schedule to the Bill.

Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
This schedule provides further detail about the Consumer Credit Appeals Tribunal, established in clause 55. The tribunal has been set up to hear appeals against determinations of the OFT, replacing the current system of appeals to the Secretary of State. For example, appeals might be heard against decisions to revoke, vary or suspend a licence, or to impose a requirement or a financial penalty. The schedule establishes the posts of president and deputy president of the tribunal, and appoints a panel of chairmen and a lay panel. It enables the removal of panel members in the case of incapacity or misbehaviour. Paragraphs 5 and 6 enable the Lord Chancellor to appoint and pay for the staff of the tribunal and to pay the president, deputy president and members. It also includes arrangements for the structure of the tribunal and its hours and procedures.
Paragraph 10 lists some of the matters on which the Lord Chancellor may make rules. They are primarily practical arrangements for appeals such as timing, who may appear on behalf of a party, hearings and disclosure of information. It also covers problems such as non-compliance with the rules, administrative errors and what happens if a member of a tribunal becomes unable to act. The list is not exhaustive.
Paragraph 12 sets out the courses of action that the tribunal can take in disposing of an appeal. It is able to confirm, quash or vary the OFT's decision, remit the matter to the OFT for consideration and determination and give directions to the OFT to give effect to the decision. Paragraph 13 states that decisions may be taken by majority, and paragraph 14 enables the tribunal to order that the OFT pay costs to the appellant in a number of given circumstances. In summary, the schedule provides the nuts and bolts of how the tribunal may work. As is usual in the case of tribunals, that will be elaborated on in rules made by the Lord Chancellor. I beg to move that the schedule be agreed to.

Charles Hendry (Shadow Minister, Trade & Industry; Wealden, Conservative)
I thank the Minister for his clarity in setting out those details with regard to tribunals. I shall be grateful if he will respond to a few questions, so that we have a little more information before we decide whether the schedule be agreed to.
First, on panels, paragraph 3(3) states:
''The Lord Chancellor shall also appoint a panel of persons who appear to him to be qualified by experience or otherwise to deal with appeals of the kind that may be made to the Tribunal.''
What sort of qualifications do we think that the Lord Chancellor will look for? It is important to understand what expertise will be expected. Or will those people involved just be old mates from his chambers, as seems to have happened in other cases?
Secondly, in paragraph 5, we read on remuneration and allowances:
''The Lord Chancellor may pay to a person in respect of his service—as the President . . . as a member of the Tribunal, or as a person appointed under paragraph 7(4), such remuneration and allowances as the Lord Chancellor may determine.''
Have we any indication of how much we are considering paying? Will people be taking on what is essentially a full-time job, or will they be performing a role for a day or two a week? I have no sense of how much time is going to be involved for those who take part in the tribunals' and, therefore, whether we will be paying them reasonable salaries or simply reimbursing them for losses of earnings elsewhere. How many members does the Minister envisage being involved in the tribunals? Also under paragraph 14 on costs, has he any sense of the level of cost that may be paid if the OFT is deemed to have acted inappropriately? Elsewhere in the Bill a limit of £50,000 is set. Does he envisage there being a limit for the maximum level of a fine or penalty cost that can be imposed on the OFT when it is deemed to have acted inappropriately?

Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
Again, I am grateful for the hon. Gentleman's broad welcome for the setting up of the new tribunal. On the way the members are chosen, he is right to say that the Lord Chancellor has many friends, but the Lord Chancellor is subject to the same rules as anybody else. Members will be appointed by the Lord Chancellor in accordance with the qualifications stipulated in the schedule. Members of the panel of chairmen must have been qualified lawyers for at least seven years. Members of the lay panel must appear to the Lord Chancellor to be qualified by experience to deal with appeals made to the tribunal.
Members of the existing panel will be able to transfer to the new tribunal with the skills that they brought to the Secretary of State's panel. The provision for that is in paragraph 26 of schedule 3 and the normal remunerations would be made. Again, if the hon. Gentleman would like me to, I will set out in a letter the details such as the likely frequency of meetings. It will not be a full-time requirement and will be based on the number of members who are required to hear a case. That would have to be reviewed after a period of time, depending on the number of cases and the number of issues to be dealt with. I will let the Committee have the details. With those explanations, I hope that the Committee will support the schedule.
Question put and agreed to.
Schedule, as amended, agreed to.
