Clause 41

Part of Pensions Bill – in a Public Bill Committee at 5:15 pm on 29 January 2008.

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Photo of James Plaskitt James Plaskitt Parliamentary Under-Secretary, Department for Work and Pensions 5:15, 29 January 2008

I appreciate hon. Members’ contributions. The short answer, on which I shall expand a little bit more in a moment, is that clause 41 makes alterations to the 2004 Act and therefore incorporates the same language and terminology in it. We cannot revisit that Act. The simpler way of inserting into the Bill the essential powers that we must have is to take them from the 2004 Act. However, the two powers in the clause should be regarded as backstop powers to be used for extreme  purposes, where there is non-compliance. They have to be included because not to have them would leave the regulator disarmed in certain circumstances and I do not think that the Committee would want that to be so. As I have just outlined, clause 41 amends section 72 of the 2004 Act. The amendment would force the regulator to ensure that such meetings as are indicated take place at a reasonable time and place.

I recognise the intention of the amendment and understand the principle behind it, but it should be remembered that the regulator will require people to meet it only in exceptional circumstances. If the regulator is of the opinion that an employer is not complying or may not comply with their duties, it will need the appropriate powers to conduct further investigations. It will also need sufficient flexibility in the legislation to be able to implement processes that will ensure that it meets its objectives in an effective and efficient manner.

Inserting the word “reasonable” where the amendment would insert it could make the powers unworkable. It is almost certain that instances will arise in which there are differences of opinion between the regulator and the person required to attend about what is a reasonable time and place to meet. We do not want to hinder those important powers. I hope that with that explanation the hon. Gentleman will agree to withdraw the amendment.