Clause 52 - Power of OFT to impose civil penalties
Consumer Credit Bill
4:45 pm
Gerry Sutcliffe (Parliamentary Under-Secretary (Employment Relations and Consumer Affairs), Department of Trade and Industry; Bradford South, Labour)
I welcome the broad acceptance of the clause. As we have said before in relation to other clauses, the OFT is the responsible body and has to operate within the confines of the Cabinet Office concordat. It has to respond to Parliament in its annual report. Anything that it does must be proportionate. The hon. Gentleman is right to say that the maximum fine for each breach is £50,000. Each breach of the requirement brings into play the OFT looking overall at the licence, and whether the holder is a fit person. The OFT statement of policy is subject to consultation with the Secretary of State and the Treasury, but it would be up to the OFT to consider each case on its individual merits within the framework and the appeals mechanisms that exist: appeals to the adjudicator or, if necessary, to the tribunal. The safeguards are in place. Under the 1974 Act, it was disproportionate: it lead to the revocation of a licence and nothing else. This gives an opportunity for refinements and improvements. There are issues under the Enterprise Act 2002 in terms of the stop-now orders that can be put in place. The OFT can use a range of tools proportionately and reasonably in different circumstances. The level of any fine would reflect that, with a maximum of £50,000.
There are other ways in which the OFT can deal with matters. It can consider action within the licensing regime, or the requirements that it outlined. It can also issue informal warnings about the conduct of individual companies, but there will be no prison sanction within the framework of the Act. However, if people commit fraudulent actions, criminal sanctions would be appropriate.
I hope that, with those assurances and explanations, the hon. Member for Wealden will support clause 52.
Question put and agreed to.
Clause 52 ordered to stand part of the Bill.