House of Commons Public Bill Committee Proceedings

Session 2012 - 13
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Other Bills before Parliament

363

SUPPLEMENT TO THE VOTES AND PROCEEDINGS

Tuesday 16 April 2013

Proceedings

on Consideration of Lords Amendments

Enterprise and Regulatory Reform Bill

On Consideration of Lords Amendments to the Enterprise and Regulatory Reform Bill

Lords Amendment No. 35

Secretary Vince Cable
Agreed to on division

To move, That this House disagrees with the Lords in their Amendment.

Lords Amendment accordingly Disagreed to.

Lords Amendment No. 36

Secretary Vince Cable
Agreed to on division

To move, That this House disagrees with the Lords in their Amendment.

Lords Amendment accordingly Disagreed to.

Lords Amendment No. 37

Secretary Vince Cable
Agreed to on division

Sir Edward Garnier

To move, That this House disagrees with the Lords in their Amendment.

Proceedings on Consideration of Lords Amendments: 16 April 2013
364

Enterprise and Regulatory Reform Bill, continued

Lords Amendment accordingly Disagreed to.

Lords Amendment No. 38

Secretary Vince Cable
Agreed to on division

To move, That this House disagrees with the Lords in their Amendment.

Lords Amendment accordingly Disagreed to.

To move the following Amendments to the words so restored to the Bill:—

Secretary Vince Cable

Agreed to  (a)


Page  58,  line  34,  leave out from beginning to end of line 2 on page 59.

Secretary Vince Cable

Agreed to  (b)


Page  59,  line  5,  leave out ‘ , (2A) or (2B)’ and insert ‘or (2A)’.

Lords Amendment No. 40

Secretary Vince Cable
Agreed to

To move, That this House disagrees with the Lords in their Amendment.

Lords Amendment accordingly Disagreed to.

To move the following Amendments to the Bill in lieu of the Lords Amendment:—

Secretary Vince Cable

Agreed to  (a)


Page  73,  line  2,  at end insert the following new Clause:—


‘Redress schemes: lettings agency work

(1)
The Secretary of State may by order require persons who engage in lettings

agency work to be members of a redress scheme for dealing with complaints in
5
connection with that work which is either—

(a)
a redress scheme approved by the Secretary of State, or

(b)
a government administered redress scheme.

(2)
A “redress scheme” is a scheme which provides for complaints against members

of the scheme to be investigated and determined by an independent person.
10
(3)
A “government administered redress scheme” means a redress scheme which

is—

(a)
administered by or on behalf of the Secretary of State, and

Proceedings on Consideration of Lords Amendments: 16 April 2013
365

Enterprise and Regulatory Reform Bill, continued

(b)
designated for the purposes of the order by the Secretary of State.

(4)
The order may provide for the duty mentioned in subsection (1) to apply—
15
(a)
only to specified descriptions of persons who engage in lettings agency

work;

(b)
only in relation to specified descriptions of such work.

(5)
The order may also provide for the duty not to apply in relation to complaints of

any specified description (which may be framed by reference to a description of
20
person making a complaint).

(6)
Before making the order, the Secretary of State must be satisfied that all persons

who are to be subject to the duty will be eligible to join a redress scheme before

the duty applies to them.

(7)
In this section, “lettings agency work” means things done by any person in the
25
course of a business in response to instructions received from—

(a)
a person seeking to find another person wishing to rent a dwelling-house

in England under a domestic tenancy and, having found such a person, to

grant such a tenancy (“a prospective landlord”);

(b)
a person seeking to find a dwelling-house in England to rent under a
30
domestic tenancy and, having found such a dwelling-house, to obtain

such a tenancy of it (“a prospective tenant”).

(8)
However, “lettings agency work” does not include any of the following things

when done by a person who does no other things falling within subsection (7)—

(a)
publishing advertisements or disseminating information;
35
(b)
providing a means by which—

(i)
a prospective landlord or a prospective tenant can, in response to

an advertisement or dissemination of information, make direct

contact with a prospective tenant or (as the case may be)

prospective landlord;
40
(ii)
a prospective landlord and a prospective tenant can continue to

communicate directly with each other.

(9)
“Lettings agency work” also does not include —

(a)
things done by a local authority;

(b)
things of a description, or things done by a person of a description,
45
specified for the purposes of this section in an order made by the

Secretary of State.

(10)
In subsection (7), “domestic tenancy” means—

(a)
a tenancy which is an assured tenancy for the purposes of the Housing

Act 1988 except where—
50
(i)
the landlord is a private registered provider of social housing (as

to which see section 80 of the Housing and Regeneration Act

2008), or

(ii)
the tenancy is a long lease within the meaning given by section

(Redress schemes: property management work)(10);
55
(b)
a tenancy under which a dwelling-house is let as a separate dwelling and

which is of a description specified for the purposes of this section in an

order made by the Secretary of State.

(11)
An order under subsection (10)(b) may not provide for any of the following to be

a domestic tenancy—
60
(a)
a tenancy where the landlord is a registered provider of social housing (as

to which see section 80 of the Housing and Regeneration Act 2008);

(b)
a long lease within the meaning given by section (Redress schemes:

property management work)(10).’.

Proceedings on Consideration of Lords Amendments: 16 April 2013
366

Enterprise and Regulatory Reform Bill, continued

As Amendments to Secretary Vince Cable’s proposed amendment (a):—

Sir Peter Bottomley

Not called  (i)


Line  3,  leave out ‘may’ and insert ‘shall’.

Sir Peter Bottomley

Not called  (ii)


Line  14,  leave out ‘may’ and insert ‘shall’.

Secretary Vince Cable

Agreed to  (b)


Page  73,  line  2,  at end insert the following new Clause:—


‘Redress schemes: property management work

(1)
The Secretary of State may by order require persons who engage in property

management work to be members of a redress scheme for dealing with
5
complaints in connection with that work which is either—

(a)
a redress scheme approved by the Secretary of State, or

(b)
a government administered redress scheme.

(2)
“Redress scheme” and “government administered redress scheme” have the same

meanings as in section (Redress schemes: lettings agency work).
10
(3)
The order may provide for the duty mentioned in subsection (1) to apply—

(a)
only to specified descriptions of persons who engage in property

management work;

(b)
only in relation to specified descriptions of such work.

(4)
The order may also provide for the duty not to apply in relation to complaints of
15
any specified description (which may be framed by reference to a description of

person making a complaint).

(5)
Before making the order, the Secretary of State must be satisfied that all persons

who are to be subject to the duty will be eligible to join a redress scheme before

the duty applies to them.
20
(6)
In this section, “property management work” means things done by any person

(“A”) in the course of a business in response to instructions received from another

person (“C”) where—

(a)
C wishes A to arrange services, repairs, maintenance, improvements or

insurance or to deal with any other aspect of the management of premises
25
in England on C’s behalf, and

(b)
the premises consist of or include a dwelling-house let under a relevant

tenancy.

(7)
However, “property management work” does not include—

(a)
things done by a person who is a social landlord for the purposes of
30
Schedule 2 to the Housing Act 1996;

(b)
things of a description, or things done by a person of a description,

specified for the purposes of this section in an order made by the

Secretary of State.

(8)
In subsection (6), “relevant tenancy” means—
35
(a)
a tenancy which is an assured tenancy for the purposes of the Housing

Act 1988;

(b)
a tenancy which is a regulated tenancy for the purposes of the Rent Act

1977;

Proceedings on Consideration of Lords Amendments: 16 April 2013
367

Enterprise and Regulatory Reform Bill, continued

(c)
a long lease other than one to which Part 2 of the Landlord and Tenant
40
Act 1954 applies;

(d)
a tenancy of a description specified for the purposes of this section in an

order made by the Secretary of State.

(9)
An order under subsection (8)(d) may not provide for a tenancy to which Part 2

of the Landlord and Tenant Act 1954 applies to be a relevant tenancy.
45
(10)
In subsection (8)(c), “long lease” means a lease which is a long lease for the

purposes of Chapter 1 of Part 1 of the Leasehold Reform, Housing and Urban

Development Act 1993 or which, in the case of a shared ownership lease (within

the meaning given by section 7(7) of that Act), would be such a lease if the

tenant’s total share (within the meaning given by that section) were 100 per cent.’.

As Amendments to Secretary Vince Cable’s proposed amendment (b):—

Sir Peter Bottomley

Not called  (i)


Line  3,  leave out ‘may’ and insert ‘shall’.

Sir Peter Bottomley

Not called  (ii)


Line  10,  leave out ‘may’ and insert ‘shall’.

Secretary Vince Cable

Agreed to  (c)


Page  73,  line  2,  at end insert the following new Clause:—


‘Orders under section (Redress schemes: lettings agency work) or (Redress

schemes: property management work): enforcement

(1)
An order under section (Redress schemes: lettings agency work)(1) or (Redress
5
schemes: property management work)(1) may make provision —

(a)
for sanctions to be imposed in respect of a breach of a requirement

imposed by the order;

(b)
for the investigation of suspected breaches of such a requirement.

(2)
The sanctions for which provision may be made in the order are—
10
(a)
the imposition of civil penalties;

(b)
the making of orders prohibiting a person from engaging in lettings

agency work or (as the case may be) property management work or from

engaging in a particular description of such work;

(c)
the creation of criminal offences in respect of breaches of orders
15
mentioned in paragraph (b).

(3)
Provision made for the imposition of a sanction by virtue of subsection (1)(a)

must include—

(a)
provision for appeals to a court or tribunal against the imposition of the

sanction, and
20
(b)
such other provision as the Secretary of State considers appropriate for

safeguarding the interests of persons on whom the sanction may be

imposed.

(4)
Provision made by virtue of this section may confer functions on a person that

exercises functions of a public nature.
25
(5)
The Secretary of State may make payments out of money provided by Parliament

to a person on whom functions are conferred by virtue of this section.’.

Proceedings on Consideration of Lords Amendments: 16 April 2013
368

Enterprise and Regulatory Reform Bill, continued

As Amendments to Secretary Vince Cable’s proposed amendment (c):—

Sir Peter Bottomley

Not called  (i)


Line  5,  leave out ‘may’ and insert ‘shall’.

Sir Peter Bottomley

Not called  (ii)


Line  9,  leave out ‘may’ and insert ‘shall’.

Secretary Vince Cable

Agreed to  (d)


Page  73,  line  2,  at end insert the following new Clause:—


‘Sections (Redress schemes: lettings agency work) to (Orders under section

(Redress schemes: lettings agency work) or (Redress schemes: property

management work): enforcement): minor definitions

(1)
This section applies for the purposes of sections (Redress schemes: lettings

agency work) to (Orders under section (Redress schemes: lettings agency work)

or (Redress schemes: property management work): enforcement).

(2)
References to persons who engage in lettings agency work or property

management work do not include references to persons who engage in that work

in the course of their employment under a contract of employment.

(3)
A “dwelling house” may be a house or part of a house.

(4)
“Local authority” means—

(a)
a county or district council;

(b)
a London borough council;

(c)
the Common Council of the City of London in its capacity as a local

authority;

(d)
the Council of the Isles of Scilly.’.

Secretary Vince Cable

Agreed to  (e)


Page  73,  line  2,  at end insert the following new Clause:—


‘Approval of redress schemes for the purposes of section (Redress schemes:

lettings agency work) or (Redress schemes: property management work)

(1)
The Secretary of State may by order make provision about the approval of redress

schemes for the purposes of section (Redress schemes: lettings agency work) or

(Redress schemes: property management work), including provision as to—

(a)
the making of applications for approval;

(b)
conditions which must be satisfied before approval may be given;

(c)
conditions which must be complied with by administrators of approved

redress schemes;

(d)
the withdrawal of approval.

(2)
The order may make provision about the conditions which must be satisfied

before a scheme administered by or on behalf of the Secretary of State may be

designated for the purposes of section (Redress schemes: lettings agency work)

or (Redress schemes: property management work).’.

Proceedings on Consideration of Lords Amendments: 16 April 2013
369

Enterprise and Regulatory Reform Bill, continued

Secretary Vince Cable

Agreed to  (f)


Page  73,  line  2,  at end insert the following new Clause:—


‘Orders under sections (Redress schemes: lettings agency work) to (Approval

of redress schemes for the purposes of section (Redress schemes: lettings

agency work) or (Redress schemes: property management work)):

supplemental

(1)
The power to make an order under section (Redress schemes: lettings agency

work), (Redress schemes: property management work) or (Approval of redress

schemes for the purposes of section (Redress schemes: lettings agency work) or

(Redress schemes: property management work)) includes power to make

incidental, supplementary, consequential, transitional or saving provision,

including doing so by amending any provision made by or under an Act.

(2)
An order under any of those sections must be made by statutory instrument.

(3)
A statutory instrument containing (whether alone or with other provision)—

(a)
an order under section (Redress schemes: lettings agency work) or

(Redress schemes: property management work) which includes—

(i)
provision by virtue of section (Orders under section (Redress

schemes: lettings agency work) or (Redress schemes: property

management work): enforcement), or

(ii)
provision by virtue of subsection (1) of this section that amends

an Act, or

(b)
an order under section (Approval of redress schemes for the purposes of

section (Redress schemes: lettings agency work) or (Redress schemes:

property management work)),


may not be made unless a draft of the instrument has been laid before, and

approved by a resolution of, each House of Parliament.

(4)
A statutory instrument containing an order under section (Redress schemes:

lettings agency work) or (Redress schemes: property management work), other

than one to which subsection (3) applies, is subject to annulment in pursuance of

a resolution of either House of Parliament.

(5)
Nothing in sections (Redress schemes: lettings agency work) to (Approval of

redress schemes for the purposes of section (Redress schemes: lettings agency

work) or (Redress schemes: property management work)) prevents a redress

scheme from providing—

(a)
for membership to be open to persons who are not subject to the duty to

be a member of the scheme;

(b)
for the investigation and determination of any complaints in relation to

which the duty does not apply, where the members concerned have

voluntarily accepted the jurisdiction of the scheme over those

complaints;

(c)
for the exclusion from investigation and determination under the scheme

of any complaint in such cases or circumstances as may be specified in

or determined under the scheme.’.

Secretary Vince Cable

Agreed to  (g)


Page  76,  line  2,  at end insert—

‘( )
sections (Redress schemes: lettings agency work) to (Orders under

sections (Redress schemes: lettings agency work) to (Approval of redress

schemes for the purposes of section (Redress schemes: letttings agency

work) or (Redress schemes: property management work)):

supplemental) extend only to England and Wales;’.



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