Digital Economy Bill - Third Reading

Part of the debate – in the House of Lords at 5:45 pm on 5 April 2017.

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Photo of Lord Ashton of Hyde Lord Ashton of Hyde Lord in Waiting (HM Household) (Whip), The Parliamentary Under-Secretary of State for Culture, Media and Sport 5:45, 5 April 2017

My Lords, the Government’s Amendments 10 and 11 acknowledge the DPRRC’s recommendations in relation to improved safeguards for the proposed charging regulations for the Information Commissioner. I committed to making these amendments on Report.

Amendment 10 will make it a requirement for the Secretary of State to consult,

“such representatives of persons likely to be affected by the regulations as the Secretary of State thinks appropriate, and … such other persons as the Secretary of State thinks appropriate”.

Amendment 11 will make it a requirement for the Secretary of State to use the affirmative procedure when making regulations under the new charging power, except for in cases of inflation increases, when the negative procedure will apply.

On Report, the noble Lords, Lord Collins and Lord Clement-Jones, sought assurances that the proposed ICO charging power clauses could not be used by the Secretary of State to set charges that allow for the over-recovery of costs to fund functions that are not currently in the ICO’s remit. ICO charges are set on a cost recovery basis and will continue to be set on that basis. I want to make it clear that the Government have no intention of setting charges that exceed the costs needed by the ICO to carry out its data protection responsibilities. As noble Lords will know, the £35 annual fee charged to 90% of data controllers by the ICO has not risen since 2001 and the £500 fee charged to large data controllers has not risen since 2009. Throughout the negotiations on the EU general data protection regulation, the Government fought hard to minimise the burdens on business while protecting the privacy rights of individuals. The Government will continue to seek to minimise the burden on business by setting fees that recover only the costs which are necessary for the ICO to run an effective data protection regulatory regime fit for the challenges of the 21st century digital economy.

On the issue of function creep, I would like to reassure noble Lords that Clause 113 (2)(a) clearly sets out the functions for which the Secretary of State can make regulations to raise charges for the ICO. If in the future the Government wish to raise charges to fund additional functions not listed in Clause 113, should that be appropriate, the Government would need to amend subsection (2)(a) by primary legislation.

Finally, I hope that it will reassure noble Lords to learn that the clauses will now contain a number of additional safeguards against excessive charging. These include a requirement to consult the ICO and representatives of data controllers before bringing forward regulations to set or amend fees; a requirement for the Secretary of State to review the fees every five years to ensure that they are still relevant and proportionate, and a requirement for the Secretary of State to use the affirmative procedure when making regulations under the new power except in the case of inflation increases, when the negative procedure will apply. I beg to move.