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Malcolm Wicks (Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform; Croydon North, Labour)

This clause will ensure directions issued by the Secretary of State will, if they are not complied with, attract the same maximum penalties as would an infringement of a licence, which leads to criminal sanctions under clause 8. It is therefore a central part of the regulatory enforcement arrangements proposed by this Bill. As with clause 8, it will be a valid defence if the licence holder proves that due diligence was exercised in trying to avoid committing the offence, and we have had a useful discussion about due diligence. In the case of a contractor, due diligence could include appropriate monitoring and supervision of a contractor acting on behalf of a licensee, even if the contractor subsequently still failed to comply with conditions. I move that this clause stand part of the Bill.

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