House of Commons Public Bill Committee Proceedings

Session 2012 - 13
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Other Bills before Parliament

19

House of Commons

Tuesday 10 July 2012

Public Bill Committee Proceedings

Enterprise and Regulatory Reform Bill

[TWELFTH AND THIRTEENTH SITTINGS]

Norman Lamb

That the Order of the Committee of 19 June 2012 be amended as follows:  (1) in

paragraph (1)(i), for “10.30 am and 4.00 pm” substitute “9.00 am and 1.30   pm”;  (2)

in paragraph (4), for “8.00 pm” substitute “5.30 pm”.

Agreed to

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  82

Schedule  4,  page  63,  line  26,  at end insert—

(i)
an assessment of the adequacy of staff skills in relation to the

performance of the CMA’s functions;

(j)
an estimate of the resource needed adequately to perform its functions

for the two financial years following the year in which the annual

report in 14(1) refers.’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  84

Schedule  4,  page  63,  line  26,  at end insert—

  ‘(2A)
The first annual report of the CMA following Royal Assent must include an

assessment of transition costs in both financial and competition terms.’.

Public Bill Committee Proceedings: 10 July 2012
20

Enterprise and Regulatory Reform Bill, continued

Mr Iain Wright

Ian Murray

Chi Onwurah

Negatived on division  83

Schedule  4,  page  64,  line  27,  at end insert—

‘Consumer research

16A(1)
The CMA must make arrangements for ascertaining—

(a)
the state of public opinion about the manner in which financial

services are provided to consumers;

(b)
the experiences of consumers in relation to the provision of financial

services;

(c)
the experiences of such consumers in relation to the handling, by

institutions within the financial services sector, of complaints made to

them by such consumers;

(d)
the experiences of such consumers in relation to the resolution of

disputes with institutions within the financial services sector; and

(e)
the interests and experiences of such consumers in relation to other

matters that are incidental to, or are otherwise connected with, their

experiences of the provision of financial services or of the availability

of associated facilities.

      (2)
The CMA shall consult with concurrent regulators where necessary.

      (3)
The CMA shall publish the conclusions from research carried out under

section (1) every two years.

      (4)
The CMA shall produce a report stating its conclusions and any

recommendations from section (1) to the Secretary of State every 2 years.

      (5)
The Secretary of State shall publish a response to the report within 60 days.

      (6)
Arrangements made by the CMA for the purposes of this section may include

arrangements for the carrying out of research in one or more of the following

ways—

(a)
by members or employees of the CMA;

(b)
by persons who are neither members nor employees of the CMA.

      (7)
This section does not restrict the CMA’s power to make any arrangements they

consider to be incidental or conducive to the carrying out of any of their

functions.

16B(1)
The CMA must make arrangements for ascertaining—

(a)
the level of competition in the financial services sector; and

(b)
the effects of the competition environment in the financial services

sector on

(i)
the availability of finance to small and medium-sized

enterprises;

(ii)
the availability of finance to high growth businesses;

(iii)
the availability of finance to businesses in general.

      (2)
The CMA shall consult with concurrent regulators where necessary.

      (3)
The CMA shall publish the conclusions from research carried out under

section (1) every two years.

      (4)
The CMA shall produce a report stating its conclusions and any

recommendations from section (1) to the Secretary of State every two years.

      (5)
The Secretary of State shall publish a response to the report within 60 days.

Public Bill Committee Proceedings: 10 July 2012
21

Enterprise and Regulatory Reform Bill, continued

      (6)
Arrangements made by the CMA for the purposes of this section may include

arrangements for the carrying out of research in one or more of the following

ways—

(a)
by members or employees of the CMA;

(b)
by persons who are neither members nor employees of the CMA.

      (7)
This section does not restrict the CMA’s power to make any arrangements they

consider to be incidental or conducive to the carrying out of any of their

functions.’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  90

Schedule  4,  page  67,  line  24,  at end insert—

  ‘(2A)
No person who participated in the CMA Board’s consideration of whether to

refer the matter to the chair shall form part of a group selected by the chair to

investigate the matter.’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  85

Schedule  4,  page  68,  line  19,  at end insert—

‘(f)
at least three persons (“specialist consumer competition panel

members”) appointed to the CMA panel under paragraph 1(1)(b) for

the purpose of being available for selection as members of a group

constituted to carry out specialist consumer competition welfare

functions on behalf of the CMA;

(g)
at least three persons (“specialist financial competition panel

members”) appointed to the CMA panel under paragraph 1(1)(b) for

the purpose of being available for selection as members of a group

constituted to carry out specialist financial services competition

functions on behalf of the CMA.’.

Schedule 4 Agreed to.

Clause 19 Agreed to.

Norman Lamb

Agreed to  21

Schedule  5,  page  79,  line  39,  leave out paragraph 32 and insert—

‘32(1)
Section 52 (advice and information) is amended as follows.

      (2)
In subsection (1), for the words from the beginning to “the Director” substitute

“The CMA”.

      (3)
In subsection (1A), for the words from the beginning to “the OFT” substitute

“The CMA”.

      (4)
In subsections (2) to (6) and (8), for “OFT” (in each place where it occurs)

substitute “CMA”.’.

Public Bill Committee Proceedings: 10 July 2012
22

Enterprise and Regulatory Reform Bill, continued

Norman Lamb

Agreed to  22

Schedule  5,  page  81,  line  29,  at end insert—

‘
In Schedule 2 (exclusions: other competition scrutiny), in Part 3, in paragraph

5(3)(a), for “Director” substitute “CMA”.’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Negatived on division  92

Schedule  5,  page  83,  line  28,  after ‘subsections’, insert ‘(1A),’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  91

Schedule  5,  page  84,  line  14,  after ‘subsections’, insert ‘(1A),’.

Norman Lamb

Agreed to  23

Schedule  5,  page  87,  leave out line 28.

Norman Lamb

Agreed to  24

Schedule  5,  page  89,  line  12,  at end insert—

‘( )
after “(6)” insert “—

(a)
”.’.

Norman Lamb

Agreed to  25

Schedule  5,  page  89,  line  13,  at end insert ‘, and

( )
at the end insert “; and

(b)
for the purposes of section 34C, the group constituted

in consequence of the reference under section 45 is to

be treated as if it were constituted in consequence of

a reference under section 22 or (as the case may be)

33.”’.

Schedule, as amended, Agreed to.

Schedule 6 Agreed to.

Clause 20 Agreed to.

Clause 24 Agreed to.

Schedule 8 Agreed to.

Public Bill Committee Proceedings: 10 July 2012
23

Enterprise and Regulatory Reform Bill, continued

Mr Iain Wright

Ian Murray

Chi Onwurah

Not selected  88

Clause  21,  page  17,  line  38,  at end insert—

‘(13)
No member involved in the decision making process shall have taken any part in

the phase one investigation.’.

Clause Agreed to.

Clause 22 Agreed to.

Schedule 7 Agreed to.

Clause 23 Agreed to.

Clauses 25 and 26 Agreed to.

Schedule 9 Agreed to.

Clause 30 Agreed to.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  61

Schedule  12,  page  188,  line  4,  at end insert—

‘(d)
the resources which will be assigned to the market study.’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Withdrawn  62

Schedule  12,  page  188,  line  35,  leave out ‘6’ and insert ‘3’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  65

Schedule  12,  page  188,  line  35,  leave out ‘6’ and insert ‘12’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  63

Schedule  12,  page  189,  line  32,  leave out ‘6’ and insert ‘3’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  66

Schedule  12,  page  189,  line  32,  leave out ‘6’ and insert ‘12’.

Public Bill Committee Proceedings: 10 July 2012
24

Enterprise and Regulatory Reform Bill, continued

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  64

Schedule  12,  page  189,  line  41,  leave out ‘6’ and insert ‘3’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  67

Schedule  12,  page  189,  line  41,  leave out ‘6’ and insert ‘12’.

Norman Lamb

Agreed to  26

Schedule  12,  page  193,  line  15,  after ‘if’, insert ‘the CMA has accepted an

undertaking or group of undertakings under section 154 and’.

Norman Lamb

Agreed to  27

Schedule  12,  page  193,  line  33,  at end insert—

      ‘()
In subsection (1), after paragraph (a) insert—

“(aa)
any decision not to make a reference under section 131

following a consultation in relation to the matter concerned

under section 169;”’.

Norman Lamb

Agreed to  28

Schedule  12,  page  194,  line  3,  at end insert—

‘
In section 179 (review of decisions under Part 4), in subsection (2), before

paragraph (a) insert—

“(za)
does not include a decision whether to carry out functions

under section 5 in a case where the CMA is, or would have

been, required to publish a market study notice (see section

130A(1));”.’.

Schedule, as amended, Agreed to.

Clause 28 Agreed to.

Mr Iain Wright

Ian Murray

Chi Onwurah

Withdrawn  86

Schedule  11,  page  183,  leave out lines 18 to 21.

Norman Lamb

Agreed to  29

Schedule  11,  page  184,  line  42,  after ‘140A(2)’, insert ‘(b)’.

Public Bill Committee Proceedings: 10 July 2012
25

Enterprise and Regulatory Reform Bill, continued

Norman Lamb

Agreed to  30

Schedule  11,  page  184,  line  46,  after ‘140A(2)’, insert ‘(b)’.

Mr Iain Wright

Ian Murray

Chi Onwurah

Not called  87

Schedule  11,  page  186,  line  12,   leave out from ‘exceeding’ to end of line 17 and

insert—


‘10 per cent. of the company’s revenues for the previous year, or

£30,000 whichever is the higher;

(b)
in the case of any amount calculated by reference to a daily rate, an

amount per day exceeding 10 per cent. of the company’s revenues for

the previous year, or £15,000 whichever is the higher; and

(c)
in the case of a fixed amount and an amount calculated by reference to

a daily rate, a fixed amount exceeding £30,000 or 10 per cent. of the

company’s revenues for the previous year whichever is the higher, and

an amount per day exceeding £15,000 or 10 per cent. of the company’s

revenues for the previous year whichever is the higher.’.

Schedule, as amended, Agreed to.

Norman Lamb

Agreed to  31

Clause  27,  page  21,  line  24,  after ‘where’, insert ‘—

(a)
’.

Norman Lamb

Agreed to  32

Clause  27,  page  21,  line  25,  at end insert ‘; or

(b)
the CMA has begun the process of consultation under section 169 in

respect of a decision of the kind mentioned in subsection (6)(a)(i) of that

section.’.

Norman Lamb

Agreed to  33

Clause  27,  page  21,  line  30,  after ‘permitted period’, insert ‘, in a case to which this

section applies by virtue of paragraph (a) of subsection (A1),’.

Norman Lamb

Agreed to  34

Clause  27,  page  21,  line  42,  after ‘period.’ insert—

‘(1B)
For the purposes of subsection (1), the permitted period, in a case to which this

section applies by virtue of paragraph (b) of subsection (A1), is the period

beginning with the date on which the CMA begins the process of consultation

concerned and ending with—

(a)
the acceptance by the CMA of an undertaking under section 154 instead

of the making of a reference under section 131 in relation to the matter

concerned;



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