Enterprise and Regulatory Reform Bill

Page 62, line 31, at end insert—

“( ) in Schedule 1, paragraph 6;”

Page 62, line 32, at end insert—

“( ) Nothing contained in this section or in the Copyright, Designs and Patents Act 1988 shall have effect so as to treat the making, distributing or communicating to the public photographs, graphic or reprographic reproductions, or other two-dimensional images of relevant articles falling within section 52 as infringement of copyright in such articles or the artistic work from which they are derived.”

Page 62, line 32, at end insert—

“( ) This section applies where a design incorporating an artistic work or any part thereof has been made available to the public, in the United Kingdom or elsewhere.

( ) It is not an infringement of copyright in the artistic work to make and exploit articles the design of which produces on an informed user a different overall impression from the design of the article which has been made available to the public in accordance with this section.”

Page 62, line 32, at end insert—

“( ) This section shall not come into force before 1 June 2015”

Page 62, line 32, at end insert—

“( ) This section shall not apply to acts done in relation to copies of artistic works—

(a) within four months after the entry into force of this section provided that—

(i) the copies of the work were manufactured in the EEA; or

(ii) the copies of the work were imported into the EEA before the commencement of this section;

(b) after four months but within eight months after the entry into force of this section provided that—

(i) the conditions set out in paragraph (a)(i) are fulfilled; and

(ii) there are extraordinary circumstances justifying the acts.

This provision is without prejudice to the other exceptions set out in Chapter III of Part I of the Copyright, Designs and Patents Act 1988.”

Insert the following new Clause—

“Revived copyright: transitional provisions and use as of right subject to reasonable royalty

(1) Part III of the Duration of Copyright and Rights in Performances Regulations 1995 (savings and transitional provisions) are amended as follows.

(2) In Regulation 16 after paragraph (d) insert—

“(e) to works in which copyright has been revived as a result of section 65 of the Enterprise and Regulatory Reform Act 2013.”

(3) In Regulation 24 after paragraph 4 insert—

“(5) This Regulation does not apply to artistic works in which copyright has been revived as a result of section 65 of the Enterprise and Regulatory Reform Act 2013.””

Leave out Clause 67 and insert the following new Clause—

“Penalties under provision amending exceptions: copyright and rights in performances

Paragraph 1(1)(d) of Schedule 2 to the European Communities Act 1972 (limitation on criminal penalties) does not apply for the purposes of provision under section 2(2) of that Act amending—

(a) Chapter 3 of Part 1 of the Copyright, Designs and Patents Act 1988 (acts permitted in relation to copyright works), or

(b) Schedule 2 to that Act (rights in performances: permitted acts).”

Page 64, line 2, after “amend” insert “paragraph 12(3) of”

Page 64, line 3, at end insert “other than—

“(a) unpublished photographs taken before the commencement of section 3 of the Copyright Act 1956,

(b) films not falling within paragraph 12(2)(e) of Schedule 1 to the Copyright, Designs and Patents Act 1988, and

(c) all other unpublished literary and artistic works within the meaning of Article 2 of the Berne Convention by known authors who died after 1899”

Page 64, line 9, at end insert “subject to the exclusion in subsection (2)”

Page 64, line 16, at end insert—

“( ) Subsections (2) to (6) do not apply in relation to works falling under section 116A of the Copyright Designs and Patents Act 1988.”

Page 64, line 39, after “search” insert “of each individual work”

Page 65, leave out lines 8 to 11

Page 65, line 13, after “a” insert “qualifying”

Page 65, line 15, leave out “grant copyright licences” and insert “extend an existing copyright licence between a user and the licensing body so as to confer on the user the right of exploitation within the United Kingdom provided by the licence”

Page 65, line 16, leave out “by the” and insert “or controlled by the licensing”

Page 65, line 17, at end insert—

“( ) In this section “a qualifying licensing body” means a body that—

(a) is representative of a substantial number of authors of the types of work covered and of the rights licensed by the copyright licence to be extended;

(b) has adopted a Code of Conduct adhering to the minimum standards set by the Secretary of State, including, but not limited to, provisions of audit, transparency and good governance.

( ) The authorisation proposed to be granted shall be advertised for a minimum of 60 days before the regulations are laid before Parliament.

( ) At any time before or after the authorisation has been granted, it may be referred to the Copyright Tribunal by a person claiming that the licensing body is not representative of a substantial number of authors of the types of work covered and of the rights licensed by the copyright licence to be extended by virtue of the proposed authorisation or fails to adhere to the provisions of the applicable Code of Conduct.”

Page 65, line 18, after “authorisation” insert “may only confer on the user the right of exploitation provided by the existing copyright licence and”

Page 65, line 21, at end insert—

“( ) At any time before or after the authorisation has been granted, it may be referred to the Copyright Tribunal by a person claiming that—

(a) the authorisation goes beyond the scope of the existing copyright licence which has been extended by virtue of the authorisation or proposed authorisation;

(b) the licensing body is not representative of a substantial number of authors of the types of work covered or of the rights licensed by the copyright licence which has been extended by virtue of the authorisation or proposed authorisation or fails to adhere to the provisions of the applicable Code of Conduct.

( ) An authorisation shall be for a maximum period of 5 years, which may be renewed on application to and review by the Secretary of State.

( ) An authorisation shall only remain in force for as long as the licensing body is representative of a substantial number of authors of the types of work covered and of the rights licensed by the copyright licence which has been extended.”

Page 65, leave out lines 22 and 23 and insert—

“( ) The regulations must provide—

(a) for the copyright owner or the copyright owner’s exclusive licensee or authorised representative to have a right at any time to limit or exclude the grant of licenses by virtue of the regulations by giving notice to the licensing body or the user,

(b) irrespective of whether the author has limited or excluded the grant of licences, that no licences shall be extended with respect to works where there are reasons to believe that the author would oppose the exploitation,

(c) that authors whose copyright is licensed as provided under this section shall have the same rights (including rights to payment and other benefits) in respect of the licensing body as authors of works in which copyright is owned or controlled by the licensing body,

(d) that authors of works not owned or controlled by the licensing body shall have the right to claim individual remuneration from the licensing body irrespective of whether such a right is provided in the copyright licence or by the licensing body’s Code of Conduct (or both),

(e) that the Copyright Tribunal shall settle disputes regarding the amount of such remuneration.”

Page 65, line 22, after “owner” insert “exclusive licensee or an authorised representative”

Page 65, leave out lines 33 to 36

Page 65, line 37, leave out “other” and insert “additional”

Page 65, line 41, after “paid” insert “if deemed required”

Page 66, line 3, leave out “must” and insert “may”

Page 66, line 3, after “for” insert “additional”

Page 66, line 7, leave out “other” and insert “additional”

Page 66, line 8, leave out “, including in particular provision” and insert “of works”

Page 66, leave out lines 9 to 19 and insert—

“(7) The regulations must provide for a right conferred by section 77 to be treated as having been asserted in accordance with section 78.

(8) The regulations may include other provisions for the purposes of authorisation and licensing, including in particular provision—

(a) permitting the use of a work for incidental purposes including an application or search, and

(b) for the payment of fees to cover administrative expenses.”

Insert the following new Clause—

“Greater protection for authors when assigning or licensing copyright

In paragraph 1(c) of Schedule 1 to the Unfair Contract Terms Act 1977 (scope of sections 2 to 4 and 7), omit “copyright”.”

Insert the following new Clause—

“Diligent search

(1) The Copyright, Designs and Patents Act 1988 is amended as follows.

(2) In section 97(2)(a), after “infringement” insert “, in particular whether in respect of any work or group of works the defendant has carried out a diligent search in accordance with the requirements of inserted section 116A.”

(3) In section 191J(2)(a), after “infringement” insert “, in particular whether in respect of any work or group of works the defendant has carried out a diligent search in accordance with the requirements of paragraph 1A of Schedule 2A.”

Insert the following new Clause—

“Right of identification

(1) The Copyright, Designs and Patents Act 1988 (the “1988 Act”) is amended as follows.

(2) For section 78 (requirement that right be asserted) substitute—

“78 Moral rights

(1) The rights conferred by this Chapter (moral rights) are—

(a) exercisable without formality in unpublished works,

(b) exercisable without formality in works made available to the public after this section comes into force.

(2) There shall be no cause of action for omission of attribution in re-publication of a work that was legitimately made available before the commencement of this section, unless the rights conferred by this Chapter were asserted at the time.”

(3) For section 205D (requirement that right be asserted by performers) substitute—

“205D Moral rights

(1) The rights conferred by this Chapter (moral rights) are—

(a) exercisable without formality in unpublished works,

(b) exercisable without formality in works made available to the public after this section comes into force.

(2) There shall be no cause of action for omission of attribution in re-publication of a work that was legitimately made available before the commencement of this section, unless the rights conferred by this Chapter were asserted at the time.””

Page 67, line 9, at end insert “for the purpose of providing for inter alia, in the case of quoted companies, the policy’s approval by means of an annual resolution under section 439A”

Page 67, line 9, at end insert—

“(2B) The regulations must require the inclusion of information regarding the 10 highest paid and 10 lowest paid employees in the company outside of the board and executive committee.”

Page 67, line 33, leave out “ordinary” and insert “special”

Page 67, line 36, leave out from “which” to “, and” in line 38 and insert “the company becomes a quoted company”

Page 67, line 39, leave out from “held” to end of line 43 and insert “annually thereafter”

Page 68, line 2, leave out “ordinary” and insert “special”

Page 68, line 8, at end insert—

“( ) Subsection (2) does not apply in relation to a quoted company before the first meeting in relation to which it gives notice under subsection (1).”

Page 68, line 43, at end insert—

“(c) “special resolution” has the same meaning as defined under section 283”

[Withdrawn]

Page 71, line 23, at end insert—

“(5A) Nothing in section 226B or 226C applies in relation to a remuneration payment or (as the case may be) a payment for loss of office made to a person who is, or is to be or has been, a director of a quoted company before the earlier of—

(a) the end of the first financial year of the company to begin on or after the day on which it becomes a quoted company, and

(b) the date from which the company’s first directors’ remuneration policy to be approved under section 439A takes effect.”

Page 71, line 30, leave out “Subject to subsections (3) and (4),”

Page 71, line 41, leave out “it” and insert “—

(a) subsection (2) does not apply, and

(b) the payment”

Page 72, line 2, leave out from end of line to “is” in line 3 and insert—

“( ) subsection (2) does not apply, and

( ) the payment”

Page 72, line 7, at end insert—

“(5) If in proceedings against a director for the enforcement of a liability under subsection (2)(b)—

(a) the director shows that he or she has acted honestly and reasonably, and

(b) the court considers that, having regard to all the circumstances of the case, the director ought to be relieved of liability,

the court may relieve the director, either wholly or in part, from liability on such terms as the court thinks fit.”

Page 72, line 31, after “company” insert “other than a payment to which section 226C does not apply by virtue of section 226D(5A)”

Page 74, line 7, at end insert—

“( ) In relation to a company that is a quoted company immediately before the day on which section 71 of this Act comes into force, section 439A(1)(a) of the Companies Act 2006 (as inserted by section 71(4) of this Act) applies as if—

(a) the reference to the day on which the company becomes a quoted company were a reference to the day on which section 71 of this Act comes into force, and

(b) at the end of the paragraph (but before the “, and”) there were inserted “or at an earlier general meeting”.

( ) In relation to a company that is a quoted company immediately before the day on which section 71 of this Act comes into force, section 226D(5A)(a) of the Companies Act 2006 (as inserted by section 72 of this Act) applies as if the reference to the day on which the company becomes a quoted company were a reference to the day on which section 71 of this Act comes into force.”

Page 74, line 8, leave out subsection (1)

Page 74, line 12, leave out subsection (2)

Page 74, line 29, leave out “(2) or”

Insert the following new Clause—

“Pre-packs

(1) The Secretary of State shall commission an independent review into pre-pack administration.

(2) Such a review shall report on but not be limited to the following—

(a) the adequacy of existing requirements in relation to transparency of arrangements;

(b) compliance with existing requirements by pre-packs including Statements of Insolvency Practice;

(c) adequacy of existing enforcement mechanisms in relation to compliance;

(d) rules relating to the continuation of supply to businesses on insolvency.

(3) A review under this section shall report to the Secretary of State no later than 12 months following the day on which this section comes into force.

(4) A copy of the report under subsection (2) shall be laid before both Houses of Parliament.”

Page 75, line 15, at end insert—

“( ) Regulations under subsection (1)—

(a) must make provision requiring all regulated persons to be members of an approved redress scheme for dealing with complaints in connection with the supply of customer data under this section, and

(b) may also require a person authorised to receive data under subsection (1)(b) to be a member of such a scheme.”

Page 75, line 20, at end insert—

“( ) may not be set at a level that prohibits a customer from seeking access to that data; and”

Page 75, line 25, at end insert—

“(6A) In deciding whether conditions for authorised persons to satisfy should be specified under subsection (6), the Secretary of State must (among other things) have regard to the need for conditions that ensure wherever a regulated person provides customer data to an authorised person under subsection (1)(b), this takes place in a way that—

(a) ensures a customer and a regulated person can easily identify the bona fides of an authorised person;

(b) minimises the customer’s liability for any negligent or criminal use of any customer data provided to an authorised person under subsection (1)(b).

(6B) Before specifying any conditions under subsection (6A) the Secretary of State must consult—

(a) consumer bodies;

(b) organisations concerned with privacy and the collection, use and protection of personal data;

(c) the Information Commissioner and any other persons specified under the customer data regulations as an enforcer;

(d) regulators of the sectors in which “regulated persons” conduct the business to which the customer data regulations apply;

(e) regulated persons;

(f) authorised persons and persons seeking authorisation under subsection (1)(b);

(g) such other persons (if any), as the Secretary of State considers appropriate.”

Page 77, line 15, at end insert—

“(7A) Section 41A of the Data Protection Act 1998 (assessment notices) is amended as follows.

(7B) In subsection (2), after paragraph (a) insert—

“(aa) a person (other than the relevant customer) who receives customer data released by a regulated person under section 75 of the Enterprise and Regulatory Reform Act 2013 and processes that data otherwise than for solely domestic purposes falling within section 36,”.”

Page 77, line 25, leave out subsections (3) and (4) and insert—

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

(a) regulations under section 75 which make provision by virtue of section 75(2)(d), or

(b) regulations under section 76,

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 which—

(a) contains regulations under section 75, and

(b) is not an instrument to which subsection (3) applies,

is subject to annulment in pursuance of a resolution of either House of Parliament.”

Insert the following new Clause—

“Power to add to supplies protected under Insolvency Act 1986

(1) The Secretary of State may by order amend section 233 of the Insolvency Act 1986 so as to add to the supplies mentioned in subsection (3) of that section any of the following—

(a) a supply of gas, electricity, water or communication services by a specified description of person;

(b) a supply of a specified description of goods or services by a specified description of person where the supply is for the purpose of enabling or facilitating anything to be done by electronic means.

(2) The Secretary of State may by order amend section 372 of that Act of 1986 so as to add to the supplies mentioned in subsection (4) of that section any of the following—

(a) a supply of gas, electricity, water or communication services by a specified description of person;

(b) a supply of a specified description of goods or services by a specified description of person where the supply is for the purpose of enabling or facilitating anything to be done by electronic means.

(3) The power to make an order under this section includes power to make incidental, supplementary, consequential, transitional or saving provision, including doing so by amending any enactment.

(4) An order under this section must be made by statutory instrument.

(5) A statutory instrument containing an order under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

(6) In this section—

“enactment” includes—

(a) an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978),

(b) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament, and

(c) an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales; and

“specified” means specified in the order.”

Line 4, after first “to” insert—

“( ) omit subsection (2)(a), and”

Line 12, after first “to” insert—

“( ) omit subsection (2)(a), and”

Insert the following new Clause—

“Corporate insolvency: power to give further protection to essential supplies

(1) The Secretary of State may by order make provision for insolvency-related terms of a contract for the supply of essential goods or services to a company to cease to have effect where—

(a) the company enters administration or a voluntary arrangement under Part 1 of the Insolvency Act 1986 takes effect in relation to it, and

(b) any conditions specified in the order are met.

(2) The order must include provision for securing that, where an insolvency-related term of a contract ceases to have effect under the order, the contract may be terminated by the supplier if—

(a) an insolvency office-holder consents to the termination,

(b) a court grants permission for the termination, or

(c) any charges in respect of the supply that are incurred after the company enters administration or the voluntary arrangement takes effect are not paid within the period of 28 days beginning with the day on which payment is due.

(3) The order must include provision for securing that, where an insolvency-related term of a contract ceases to have effect under the order, the supplier may terminate the supply unless an insolvency office-holder personally guarantees the payment of any charges in respect of the continuation of the supply.

(4) The order may provide for exceptions to the right of a supplier to terminate a supply under provision made by virtue of subsection (3).

(5) The order must (in addition to the provision mentioned in subsections (2) and (3)) include such other provision as the Secretary of State considers appropriate for securing that the interests of suppliers are protected.

(6) A contract for the supply of essential goods or services is a contract for a supply mentioned in section 233(3) of the Insolvency Act 1986.

(7) An insolvency-related term of a contract for the supply of essential goods or services to a company is a provision of the contract under which—

(a) the contract or the supply would terminate, or any other thing would take place, because the company enters administration or the voluntary arrangement takes effect,

(b) the supplier would be entitled to terminate the contract or the supply, or to do any other thing, because the company enters administration or the voluntary arrangement takes effect, or

(c) the supplier would be entitled to terminate the contract or the supply because of an event that occurred before the company enters administration or the voluntary arrangement takes effect.

(8) In this section, “insolvency office-holder” means—

(a) in a case where a company enters administration, the administrator;

(b) in the case where a voluntary arrangement under Part 1 of the Insolvency Act 1986 takes effect in relation to a company, the supervisor of the voluntary arrangement.”

Line 19, leave out subsection (3)

Insert the following new Clause—

“Individual insolvency: power to give further protection to essential supplies

(1) The Secretary of State may by order make provision for insolvency-related terms of a contract for the supply of essential goods or services to an individual to cease to have effect where—

(a) a voluntary arrangement proposed by the individual is approved under Part 8 of the Insolvency Act 1986, and

(b) any conditions specified in the order are met.

(2) The order must include a condition that ensures that an insolvency-related term of a contract for the supply of essential goods or services to an individual does not cease to have effect unless the supply is for the purpose of a business that is or has been carried on by the individual or with which the individual has or had another connection of a kind specified in the order.

(3) The order must include provision for securing that, where an insolvency-related term of a contract ceases to have effect under the order, the contract may be terminated by the supplier if—

(a) the supervisor of the voluntary arrangement consents to the termination,

(b) a court grants permission for the termination, or

(c) any charges in respect of the supply that are incurred after the voluntary arrangement proposed by the individual is approved are not paid within the period of 28 days beginning with the day on which payment is due.

(4) The order must include provision for securing that, where an insolvency-related term of a contract ceases to have effect under the order, the supplier may terminate the supply unless the supervisor of the voluntary arrangement personally guarantees the payment of any charges in respect of the continuation of the supply.

(5) The order may provide for exceptions to the right of a supplier to terminate a supply under provision made by virtue of subsection (4).

(6) The order must (in addition to the provision mentioned in subsections (3) and (4)) include such other provision as the Secretary of State considers appropriate for securing that the interests of suppliers are protected.

(7) A contract for the supply of essential goods or services is a contract for a supply mentioned in section 372(4) of the Insolvency Act 1986.

(8) An insolvency-related term of a contract for the supply of essential goods or services to an individual is a provision of the contract under which—

(a) the contract or the supply would terminate, or any other thing would take place, because the voluntary arrangement proposed by the individual is approved,

(b) the supplier would be entitled to terminate the contract or the supply, or to do any other thing, because the voluntary arrangement proposed by the individual is approved, or

(c) the supplier would be entitled to terminate the contract or the supply because of an event that occurred before the voluntary arrangement proposed by the individual is approved.”

Line 25, leave out subsection (4)

Insert the following new Clause—

“Sections (Corporate insolvency: power to give further protection to essential supplies) and (Individual insolvency: power to give further protection to essential supplies): supplemental

(1) The power to make an order under section (Corporate insolvency: power to give further protection to essential supplies) or (Individual insolvency: power to give further protection to essential supplies) includes—

(a) power to make different provision for different cases;

(b) power to provide for a person to exercise a discretion in a matter;

(c) power to make incidental, supplementary, consequential, transitional or saving provision;

(d) power to make any provision that may be made by the order by amending the Insolvency Act 1986 or any other enactment.

(2) An order under either of those sections may not be made so as to have effect in relation to contracts entered into before the order come into force.

(3) An order under either of those sections must be made by statutory instrument.

(4) A statutory instrument containing an order under either of those sections may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

(5) In this section, “enactment” has the same meaning as in section (Power to add to supplies protected under Insolvency Act 1986).”

Insert the following new Clause—

Interpretation: “the media”, “news publishers” etc

(1) In this Act “the media” means—

(a) media organisations, and

(b) servants and agents of media organisations in the performance of functions relating to the activities of those organisations.

(2) In this Act “media organisations” means organisations which—

(a) make broadcasts within the meaning of section 95(1) of the Wireless Telegraphy Act 2006;

(b) publish, for circulation anywhere in England or Wales, a newspaper, magazine or periodical (or online content associated with a newspaper, magazine or periodical), a substantial proportion of which consists of news of, or opinion and discussion about, current affairs;

(c) in the course of a business, publish content on a website, a substantial proportion of which consists of news of, or opinion and discussion about, current affairs in England or Wales.

(3) In this Act “news publishers” means media organisations referred to in subsection (2)(b) and (c).

(4) In this Act “regulated publisher” means a news publisher which subscribes to a recognised regulator.

(5) In this Act a reference to “conduct” includes a reference to omissions; and a reference to a person’s conduct can include a reference to a person’s conduct after the events giving rise to a claim.”

Insert the following new Clause—

“Recognition

(1) In this Act “recognised regulator” means a body which—

(a) in the opinion of the Recognition Commission is established as a voluntary regulatory body for the purposes of those sections, and

(b) is certified by the Recognition Commission for the purposes of this subsection.

(2) The Recognition Commission shall be established in accordance with the provisions of Schedule (The Recognition Commission).

(3) In deciding whether to certify a body the Recognition Commission must consider, in particular, whether the body—

(a) has sufficient guarantees of independence, including suitable independent, fair and transparent procedures for appointments and funding,

(b) has suitable functions, powers, personnel and resources to ensure that it can fulfil its principal objects effectively,

(c) has an appropriately prepared standards code,

(d) has effective processes for upholding standards,

(e) has an efficient procedure for handling complaints,

(f) has an effective and accessible arbitration service, and

(g) includes subscribers owned by a range of companies.

(4) The Recognition Commission may not certify a body unless satisfied that it complies with the minimum requirements specified in Schedule (Minimum requirements for a recognised regulator).

(5) The Recognition Commission must review each recognised regulator—

(a) at least once during the period of two years beginning with the date of certification, and

(b) at intervals of not more than three years after that.

(6) The Recognition Commission must also review a recognised regulator if in the Commission’s opinion there has been, or may have been, a significant change in the structure, processes, independence, fairness or effectiveness of the recognised regulator.

(7) But the Recognition Commission may not carry out a review under subsection (6) unless the Commission has given the approved regulator reasonable notice in writing of the proposal to do so; and the notice must specify the Commission’s reasons.

(8) The Recognition Commission must prepare and publish a report of each review under this section.

(9) A review under this section of a recognition under this section is a review only of the extent to which the recognised body is meeting requirements for certification in subsections (1), (3) and (4).

(10) If having reviewed a recognised body the Recognition Commission is no longer satisfied that it complies with subsections (1), (3) and (4), the Recognition Commission must consult the body and give directions designed to ensure that the body complies with subsections (1), (3) and (4).

(11) If the body fails to comply with directions given under subsection (10) within a reasonable time, the Recognition Commission must revoke the body’s certification.

(12) In making decisions under this Act, the Recognition Commission must aim to adopt procedures which are transparent and must, in particular—

(a) publish information and invite representations about applications made to it,

(b) publish information about the progress of proceedings on consideration of applications, and

(c) publish the determination of applications.

(13) Interference with the operation of the Recognition Commission by Ministers of the Crown, public officials or news publishers shall be unlawful (and any actual or threatened breach of this provision shall be actionable in the High Court at the instance of the Recognition Commission).

(14) The Recognition Commission shall not be involved in the regulation of any media organisation.”

Insert the following new Clause—

“Reports by Recognition Commission on Failure

(1) Within 3 months of a trigger event specified in subsection (2), the Recognition Commission must send a report to the Secretary of State and to the Speaker of the House of Commons drawing their attention to the fact that the system of regulation is not sufficiently effective.

(2) The following are trigger events—

(a) the first anniversary of the commencement of section (Recognition), if there is no recognised regulator certified under that section,

(b) the end of any continuous period of 6 months, after the first anniversary of the commencement of section (Recognition), at which there is no recognised regulator,

(c) the first anniversary of the commencement of section (Recognition), if in the opinion of the Recognition Commission there is a significant news publisher who is not a subscriber to a recognised regulator,

(d) the end of the period of 3 months, beginning with the date of revocation of a recognised regulator’s certificate of recognition, if in the opinion of the Recognition Commission a significant news publisher which was at the time of revocation a subscriber to that recognised regulator is not a subscriber to a recognised regulator, and

(e) the end of any continuous period of 6 months, after the first anniversary of the commencement of section (Recognition), during which in the opinion of the Recognition Commission a significant news publisher was not a subscriber to a recognised regulator.

(3) For the purposes of this section, a “significant news publisher” is a news publisher which in the opinion of the Recognition Commission has a weekly readership which would place it within the first twenty of a list of news publishers ranked in descending order of weekly readership.

(4) The Secretary of State must, within 3 months of the receipt of a report under subsection (1), lay proposals for the regulation of news publishers before Parliament for approval by each House of Parliament within one month of their being laid.

(5) If proposals are not approved under subsection (4) (or this subsection) the Secretary of State must within one month lay amended proposals before Parliament for approval by each House of Parliament within one month of their being laid.”

Insert the following new Clause—

“Data protection

In considering the exercise of any of its powers in relation to news publishers, the Information Commissioner shall have regard whether such publishers are subscribers regulated by a recognised regulator with the purpose of reducing the burden of regulation on such news publishers.”

Insert the following new Clause—

“Freedom of Information and Public Functions

(1) In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public bodies and offices), insert at the appropriate place—

“A recognised regulator under section 78C of the Enterprise and Regulatory Reform Act 2013.

The Recognition Commission constituted in accordance with Schedule (The Recognition Commission) to the Enterprise and Regulatory Reform Act 2013.”

(2) The functions of the Recognition Commission and of a recognised regulator are to be treated as public functions.”

Insert the following new Schedule—

1 This Schedule provides the method by which the Recognition Commission shall be constituted.

2 The appointment of the first Chair of the Recognition Commission together with at least 4 initial other Members shall follow a fair and open process, independent of news publishers, politicians and the Government to be conducted in the manner, and by the persons, described in this Schedule.

3 The responsibility for identifying and appointing the Chair of the Recognition Commission shall be that of an Appointments Committee, constituted in accordance with paragraphs 5 to 10, and the Appointments Committee shall ensure that the Chair is appointed before the appointment of any other member.

4 The other initial Members of the Recognition Commission shall be identified and appointed by the Appointments Committee, acting together with the Chair of the Recognition Commission.

5 The Appointments Committee shall consist of four individuals.

6 The Chair of the Judicial Appointments Commission shall be ex officio Chair of the Appointments Committee.

7 The Chair of the Appointments Committee shall appoint to the Committee—

(a) two members who, in the Chair’s opinion, are independent of political parties, the Government and news publishers; and

(b) one person who, in the Chair’s opinion, is independent of political parties, the Government and news publishers and is a Public Appointments Assessor (appointed pursuant to the Public Appointments Order in Council 2002) nominated for membership of the Appointments Committee by the Commissioner for Public Appointments for England and Wales.

8 In order to ensure the independence of the Committee, the following shall be ineligible to be appointed to the Appointments Committee—

(a) a serving editor or current employee of a publication of a relevant publisher;

(b) a relevant publisher or a person who is otherwise involved in the publication of news or current affairs in the United Kingdom;

(c) a person who is involved in the governance of or is employed by a recognised regulator or by a body which is seeking recognition as a recognised regulator;

(d) a person who is, or has been, a member of the House of Commons, the House of Lords, the Scottish Parliament, the Northern Ireland Assembly or the National Assembly for Wales and whilst a member has been affiliated to any political party;

(e) a person who is, or has ever been, a Minister of the Crown, a Scottish Minister, a Northern Ireland Minister, or a Welsh Minister;

(f) a person who has held an appointment under Article 3(2) of the Civil Service Order in Council 1995 (or its predecessor or replacement);

(g) a person who has in the previous 10 years held elected political office at principal local authority level or above or who is or has been employed by a political party.

9 A person may not be appointed to the Appointments Committee under paragraph 7(a) unless the Commissioner for Public Appointments in England and Wales has published written confirmation that—

(a) the selection process was fair and open and independent of political parties, the Government and news publishers; and

(b) that the person is independent.

10 The members of the Appointments Committee shall serve in a personal capacity.

11 In making any appointment under this Schedule, the matters set out in paragraph 12 shall be used for—

(a) determining the overall nature of the membership of the Recognition Commission; and

(b) assessing the suitability of any particular person to be appointed as the Chair or a Member of the Recognition Commission.

12 The criteria for appointment as a Member of the Recognition Commission are that every member shall have an understanding of the context within which a Regulator will operate and at least one Member of the Recognition Commission should:

(a) have legal qualifications and skills, together with an understanding of the legal framework within which the Recognition Commission must operate;

(b) financial skills, including experience of delivering value for money;

(c) experience of public policy making, particularly in the context of consumer rights;

(d) be a man;

(e) be a woman.

13 In order to ensure the independence of the Recognition Commission, the disqualifications in paragraph 8 apply to the Commission.

14 A person may not be appointed to the Recognition Commission unless the Commissioner for Public Appointments in England and Wales has published written confirmation that—

(a) the selection process was fair and open; and

(b) the person appointed is independent.

15 Each Member of the Recognition Commission, including the Chair, shall hold and vacate office in accordance with the terms of this Schedule.

16 Each Member shall be eligible to serve for an initial term of 6 years and shall be eligible for reappointment for a further period of 3 years.

17 The Recognition Commission may make arrangements for the payment of allowances to Members; the amounts shall be set having regard to the prevailing rates payable to the members of equivalent public sector bodies.

18 A member of the Recognition Commission may resign by giving notice in writing to the Recognition Commission.

19 The Chair or any Member of the Recognition Commission may be dismissed by a majority vote of the Commission where they are satisfied that the Chair or Member is unwilling, unable or unfit to discharge functions under this Schedule.

20 The Chair or a Member may not be dismissed unless the Commissioner for Public Appointments in England and Wales has published written confirmation that the dismissal process was fair, open, and independent of news publishers, of political parties and of the Government.

21 Upon any person, including the Chair, ceasing to be a Member of the Recognition Commission for any reason, or the Recognition Commission determining that the appointment of an additional Member is desirable the process for appointing a successor or additional Member (as appropriate) shall be fair and open, and meet the requirements of paragraphs 11 to 14; and the responsibility for making such an appointment (including selection) shall be with the serving Members of the Recognition Commission, and not the Appointments Committee.

22 The Secretary of State must within two months of Royal Assent set aside the sum of £5 million for the purposes of this Schedule.

23 The sum set aside under paragraph 22 is to be invested by the Secretary of State, and investment receipts are to be added to the capital and set aside for the purposes of this Schedule.

24 The Appointments Committee and the Recognition Commission may apply to the Secretary of State for sums to be made available in respect of expenditure incurred or to be incurred by the Committee or the Commission; and

(a) the Secretary of State shall grant applications;

(b) but if the Secretary of State is concerned about sums expended or to be expended, or the manner in which decisions about expenditure have been or are to be taken, or the methods of procurement adopted, the Secretary of State may refer the matter to, and comply with any directions given by, the Comptroller and Auditor General.

25 The Appointments Committee and the Recognition Commission shall have regard to any guidance given to them by the Treasury in relation to—

(a) best practice in relation to procurement in the public sector;

(b) any applicable European Union law relating to procurement;

(c) accounting practice and record-keeping in the public sector; and

(d) any other financial matters on which the Treasury think it appropriate to give guidance.

26 The Appointments Committee shall regulate its own procedure.

27 The Recognition Commission shall, subject to section 78D, regulate its own procedure.

28 The Appointments Committee and the Recognition Commission are not to be regarded—

(a) as the servant or agent of the Crown; or

(b) as enjoying any status, immunity or privilege of the Crown.

29 The Appointments Committee and the Recognition Commission may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of their functions.

30 The Recognition Commission may charge fees to bodies which apply to be recognised.

31 The Appointments Committee and the Recognition Commission may appoint staff and engage services.”

Insert the following new Schedule—

1 A recognised regulator must be a company limited by guarantee.

2 The principal objects of a recognised regulator must be to—

(a) ensure the protection of freedom of expression of news publishers,

(b) protect the public interest by ensuring ethical, accurate and truthful reporting by news publishers,

(c) maintain certain minimum ethical and professional standards among news publishers, and

(d) ensure that the privacy and dignity of the individual is protected.

3 A recognised regulator must be independent in the performance of its functions.

4 The regulatory system provided by a recognised regulator must be open to subscription by any news publisher or other publisher on fair, reasonable and non-discriminatory terms (although subscription should be made available on different terms for different types of publishers).

5 A recognised regulator must be governed by an independent Board, the members of which are appointed without any influence of news publishers or the Government.

6 The Board must be appointed by an independent panel which must—

(a) be appointed in an independent, fair and open way;

(b) contain a substantial majority of members who are demonstrably independent of news publishers;

(c) include at least one person with current experience of news publishers;

(d) include no more than one current editor of a news publisher;

(e) not include any Minister of the Crown, or any present or former member of the House of Commons or the House of Lords or of any devolved Parliament or Assembly who, while a member, has been affiliated to any political party.

7 The Chair of the Board—

(a) must be appointed by the independent panel by an independent, fair and open process, and

(b) must be independent of all political parties and all media organisations.

8 The other members of the Board must be appointed by the independent panel, and the Chair of the Board, using the same independent, fair and open process; and the process must be designed to secure that the Board—

(a) comprises a majority of members who are independent of news publishers,

(b) includes a sufficient number of members with experience of the media who may include former editors and senior or academic journalists,

(c) does not include any serving editor of a news publisher,

(d) does not include any Minister of the Crown, or any present or former member of the House of Commons or the House of Lords or of any devolved Parliament or Assembly who, while a member, has been affiliated to any political party.

(e) numbers among its members at least one third men and at least one third women.

9 A recognised regulator must be funded under the terms of an agreement between news publishers and the Board of the regulator, taking into account the cost of fulfilling obligations of a regulator and the commercial pressures on news publishers.

10 The Board of a recognised regulator must prepare an indicative budget which it certifies is adequate for the purpose, in accordance with which funding settlements—

(a) cover five-year periods, and

(b) are negotiated with a minimum notice period of 2 years excluding the year of establishment of the regulator.

11 A recognised regulator must have a Standards Code which is the responsibility of the Board, advised by a Code Committee which may comprise both members of the Board and serving editors of news publishers.

12 The Code Committee—

(a) must include members of the Board who are independent of news publishers (“independent members”),

(b) may include serving editors of news publishers, and

(c) must have a simple majority of independent members.

13 The Standards Code must take into account the importance of freedom of speech and the public interest.

14 The Standards Code must set out the ethical and legal context within which it applies; together with a clear picture of how good journalism serves the public interest and the implications that has for journalistic behaviour; and the Code must cover standards for—

(a) conduct, especially in relation to the treatment of other people in the process of obtaining material,

(b) appropriate respect for privacy where there is no sufficient public-interest justification for breach, and

(c) accuracy and the need to avoid misrepresentation.

15 A recognised regulator must provide guidance, in the context of different provisions of the Standards Code, on the interpretation of “public interest” that justifies conduct that would otherwise be a breach of the Code.

16 The Standards Code must provide that news publishers will be held strictly accountable for any material that they publish, including photographs (however sourced).

17 A recognised regulator must establish a whistleblowing hotline for those who feel that they are being asked to do things which are contrary to the Standards Code.

18 A recognised regulator must require all subscribers—

(a) to maintain appropriate internal governance processes, in particular in relation to the process of obtaining material for publication,

(b) to provide transparency on what governance processes they have in place, and

(c) to give notice of any failures in compliance with the Code, as well as details of steps taken to address those failures.

19 A recognised regulator must—

(a) require all subscribers to have an adequate and speedy complaints handling mechanism;

(b) encourage those who wish to complain to do so through that mechanism;

(c) not receive complaints directly unless or until the internal complaints system has been engaged and the complaint has not been resolved within specified time limits.

20 In relation to complaints—

(a) a recognised regulator must have the power to hear and decide on complaints about breach of the standards code by subscribers;

(b) a recognised regulator must have the power (but not necessarily in all cases, depending on the circumstances, the duty) to hear complaints whoever they come from, whether persons personally and directly affected by the alleged breach, or a representative group affected by the alleged breach, or a third party seeking to ensure accuracy of published information (in which case the views of the party most closely involved should be taken into account);

(c) a recognised regulator must have the power to allow a complaint to be brought prior to commencing legal proceedings, without prejudice to any power of the court to order a stay of the regulator’s action if continuing it would endanger the civil action;

(d) decisions on complaints must be the ultimate responsibility of the Board, advised by complaints handling officials to whom appropriate delegations may be made;

(e) serving editors may not have any role in determining the outcome of individuals’ complaints, nor be members of any Committee advising the Board on complaints and any such Committee must have a composition broadly reflecting that of the main Board, with a majority of people who are independent of the press; and

(f) the mechanism must allow complainants to bring complaints free of charge.

21 The arrangements for subscription to each registered regulator must ensure that—

(a) the Board has authority to examine issues on its own initiative,

(b) the Board has sufficient powers, and personnel with the necessary experience and expertise and independence from news publishers, to carry out investigations both into suspected serious or systemic breaches of the Code and failures to comply with directions of the Board,

(c) subscribers are required to cooperate with any such investigation, and

(d) the investigation process is simple and credible.

22 A Board must have both the power and a duty to ensure that all breaches of the Standards Code that it considers are recorded as such and that proper data is kept that records the extent to which complaints have been made and their outcome; and this information must be made available to the public in a way that allows understanding of the compliance record of each subscribing member.

23 In relation to breaches of the Standards Code which a Board finds to have been established—

(a) the Board must have the power to direct appropriate remedial action for breach of standards and the publication of corrections and apologies;

(b) the Board must have the power to require publication of a correction and an apology, both in relation to standards breaches affecting individuals or groups of people, and in relation to matters of fact where no single identifiable individual has been affected;

(c) the Board must have the power to direct the nature, extent and placement of apologies;

(d) the Board must have the power to impose appropriate and proportionate sanctions (including financial sanctions up to 1% of turnover, with a maximum of £1 million) on any subscriber found to be responsible for serious or systemic breaches of the Standards Code or governance requirements of the body;

(e) the Board must not have the power to prevent publication of any material, by anyone, at any time although (in its discretion) it should be able to offer a service of advice to editors of subscribing publications relating to Standards Code compliance which editors, in their discretion, can deploy in civil proceedings arising out of publication.

24 The Board must demonstrate at the time of certification under section (Recognition (1)) that it has the ability and a timetable to consider all the matters set out in paragraph 26.

25 The Board must demonstrate at the time of—

(a) a review under section (Recognition)(5)(a) that it has considered the matters set out in paragraph 26 since certification; and

(b) a review under section (Recognition) (5)(b) that it has considered the matters set out in paragraph 26 since the previous review.

26 The matters to be considered by the Board are—

(a) the publication of compliance reports by papers in their own pages, and requiring papers to have named senior individuals with responsibility for compliance;

(b) the establishment of a kite-mark scheme;

(c) the holding of an early review of the Standards Code;

(d) Standards Code amendments giving the recognised regulator the power to intervene in cases of allegedly discriminatory reports, having regard to the need to protect freedom of speech and the need to reflect the purpose of equalities legislation;

(e) the need to be explicit in its work that where public-interest justification will be used, there should be a record of factors weighing for and against publication, and of conclusions reached;

(f) the provision of an advisory service to editors in relation to public-interest considerations;

(g) encouragement of its subscribers to be transparent with stories’ sources by providing information to help readers assess reliability of the information provided, such as links to studies and poll results and the names of photographers, subject to the condition that such transparency does not undermine the protection of confidential sources; and

(h) a requirement for there to be a conscience clause in journalists’ contracts.

27 The Board must publish an Annual Report identifying—

(a) the body’s subscribers, identifying any significant changes in subscriber numbers;

(b) the number of complaints it has handled and the outcomes reached, both in aggregate for all subscribers and individually in relation to each subscriber;

(c) a summary of any investigations carried out and their results;

(d) a report on the adequacy and effectiveness of compliance processes and procedures adopted by each subscriber;

(e) information about the extent to which the arbitration service has been used;

(f) information relating to its financial arrangements in the exercise of its functions and any changes to its financial arrangements.

28 The Board must provide an arbitration service for resolving publication proceedings by arbitration which has rules which provides for a fair, quick and inexpensive process, which is inquisitorial and free for complainants to use (save for a power to make an adverse order for the costs of the arbitrator if proceedings are frivolous or vexatious) and which has rules that—

(a) allow complainants to recover their costs from persons subscribing to the service, in circumstances where procedural fairness or access to justice requires this;

(b) give the arbitrator the powers in section 48(3) to (5) of the Arbitration Act 1996;

(c) allow either party to appeal to the High Court on a point of law in accordance with section 69 of the Arbitration Act 1996;

(d) allow the arbitrator to hold hearings where necessary or dispense with them where not necessary; and

(e) provide for frivolous or vexatious claims to be struck out at an early stage.

29 The Board must establish a ring-fenced enforcement fund into which receipts from financial sanctions are paid, for the purpose of funding investigations.

30 The Board must have the duty to provide advice to the public in relation to issues concerning its subscribers and the Code.

31 The Board must have the duty to provide a service to warn its subscribers, and other relevant parties such as broadcasters and press photographers, when an individual has made it clear that they do not welcome press intrusion.

32 The Board must have the duty to cooperate with any other recognised regulator and must put in place procedures to enable such co-operation.”

Page 81, line 1, leave out “and 64(1) and (2)” and insert “, 64(1) and (2) and (Abolition of Agricultural Wages Board and related English bodies)(1) to (3)”

Line 2, leave out “to (3)” and insert “and (2)”

Page 81, line 4, at end insert “, and

(e) an amendment, repeal or revocation made by Schedule (Abolition of Agricultural Wages Board and related English bodies: consequential provision) has the same extent as the provision amended, repealed or revoked, subject to subsection (5A).

(5A) The repeals of the following provisions in Schedule (Abolition of Agricultural Wages Board and related English bodies: consequential provision) extend to England and Wales only—

(a) section 67 of the Agriculture Act 1967,

(b) paragraph 32 of Schedule 2 to the Social Security (Consequential Provisions) Act 1975,

(c) paragraph 10 of Schedule 4 to the Social Security Pensions Act 1975,

(d) paragraph 12 of Schedule 17 to the Employment Protection Act 1975, and

(e) paragraph 4 of Schedule 2 to the Social Security (Consequential Provisions) Act 1992.”

Line 5, leave out from “revoked” to end of line 16

Page 81, line 9, leave out “section 78 extends” and insert “—

( ) sections (Power to add to supplies protected under Insolvency Act 1986), (Corporate insolvency: power to give further protection to essential supplies), (Sections (Corporate insolvency: power to give further protection to essential supplies) and (Individual insolvency: power to give further protection to essential supplies): supplemental) and 78 extend”

Page 81, line 9, at end insert—

“( ) section (Individual insolvency: power to give further protection to essential supplies) extends only to England and Wales.”

Page 81, line 9, at end insert “sections (Interpretation: “the media”, “news publishers” etc to Freedom of Information and Public Functions), extend only to England and Wales”

Page 81, line 12, at end insert—

“( ) section (ACAS: prohibition on disclosure of information);”

Page 81, line 13, at end insert—

“( ) section (Transitional provision: consultation);”

Page 81, line 14, leave out “section 46” and insert “sections 46 and (Orders under section 46: procedural requirements)”

Page 81, line 16, at end insert—

“( ) sections (Power to add to supplies protected under Insolvency Act 1986), (Corporate insolvency: power to give further protection to essential supplies), (Individual insolvency: power to give further protection to essential supplies) and (Sections (Corporate insolvency: power to give further protection to essential supplies) and (Individual insolvency: power to give further protection to essential supplies): supplemental;”

Page 81, line 20, after “regulations” insert “, rules”

Page 81, line 26, after “11,” insert “(Dismissal for political opinions etc: no qualifying period of employment),”

Page 81, line 26, leave out “15” and insert “(Disclosures not protected unless believed to be made in the public interest), (Power to reduce compensation where disclosure not made in good faith), (Extension of meaning of “worker”)”

Page 81, line 28, at end insert—

“( ) sections (Interpretation: “the media”, “news publishers” etc to Freedom of Information and Public Functions);”

Line 8, after “data;” insert “to make provision for the protection of essential supplies in cases of insolvency;”