New clause 2 - OFT GUIDANCE
Consumer Credit Bill
6:00 pm
Charles Hendry (Shadow Minister, Trade & Industry; Wealden, Conservative)
I beg to move, That the clause be read a Second time.
The Minister and I could almost swap places, as we know each other's phrases so well. I am sure he will know where I am coming from on new clause 2. He has stressed time and again that improving transparency is one of the fundamental aspects of the Bill. We all support that aim, but certain aspects of the Bill will not achieve it; indeed, some will serve only to blur the legal situation.
Far too many significant policy areas have been left to secondary legislation and guidance from the Office of Fair Trading. That not only creates uncertainty for consumers, businesses and enforcers but means that Parliament does not have the opportunity to consider vital detail that is relevant to the Bill. That issue was raised many times on Second Reading and has been raised many times in Committee.
As drafted, the detail of key features of the Bill has been left to be developed by the OFT, which is an agency over which the Government have no ministerial control and which operates as the regulator in its area. The result is that the OFT could become both judge and jury. That is bad legislation and not how we should move forward in trying to protect consumers. Instead, we should try to ensure the transparency that the Minister said that he wants.
The new clause will achieve just that, by requiring approval from the Secretary of State before OFT guidance is published and requiring the OFT to consult relevant stakeholders on the content of that guidance. That builds in essential safeguards, by enabling the Secretary of State to ensure that the OFT acts in accordance with Parliament's wishes, while not interfering with the detail of that work, and ensures that those affected have the chance to influence the OFT's direction before it is set in stone.