Kevin Hollinrake
MP for Thirsk and Malton · Conservative · United Kingdom
“That issue is one of the many things that the people who signed the petition are concerned about, Dr Huq. One of the big things that the Government promised, which I agree with them about, is the need to encourage faster growth in our economy. Of course that is right, but look at where that growth is.”
“The UK economy went through many challenges, of course, some of them caused by Brexit; the reality is that a change like that was bound to have a short-term effect—but only a short-term effect. The country grew faster than Germany and France during that period of time.”
“As I said before, governing is not easy; we had many challenges ourselves, and we did not get everything right, but what we did during that difficult period of time—those 14 years—was get 1.2 million more people employed in our economy. Unemployment was halved during our time in office.”
“Of course, many Government Members supported his leadership challenge. We are here now, looking forward to a general election coming down the track. We are ready for a general election when the Government are, because, unlike them, we have a strong leader—against their weak leader.”
“I was, absolutely. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for his excellent opening speech. He made so many good points, not least about the level of support for this petition.”
“Members on the Government side of the House also feel betrayed and angry with their own leadership, for marching them up to the top of the hill and marching them back down again on many of these issues, but they do not feel as betrayed as the businesspeople in this country in particular.”
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“By placing the burden of proving the accuracy of claims on the trader, the clause is crucial in stopping unscrupulous traders from spreading wild promises or getting the CMA bogged down in disproving claims that should be backed up by evidence. Clause 188 sets out the process that the CMA must follow for proposing to materially vary or revoke any directions. The clause gives flexibility to the CMA to direct compliance while requiring it to provide a sufficient notice period and clear information to guarantee fairness to the person involved.”
“Clause 186 gives the CMA an alternative means of enforcing compliance with directions given in final infringement notices, online interface notices and final breach of undertakings enforcement notices by enabling applications to court for an order to require compliance. It also provides a backstop power for the CMA to apply for a court order where it considers a person has failed to comply with a direction given in a final breach of directions enforcement notice. Clause 187 gives the CMA the power to require evidence from the enforcement subject to substantiate factual claims made as part of its commercial practices under investigation. This applies where the CMA gives a provisional notice concerning a suspected breach of the unfair trading prohibitions in chapter 1 of part 4 of the Bill.”
“Given the seriousness of the situation and the late stage in the process of enforcing compliance with consumer protection law, the Bill sets out that the CMA will impose a monetary penalty each time it gives a final notice under the clause. Clause 185 provides for the types of penalties and the maximum penalty amounts that can be imposed by the CMA through a final breach of directions enforcement notice. The total penalty amount can be a fixed amount up to £150,000 or 5% of total turnover, whichever is higher. It can also be a daily rate penalty up to £15,000 or 5% of the total value of the daily turnover, whichever is higher, and accruing over the days while non-compliance continues. It can also be a combination of both, but that must not exceed the maximum penalty amounts in both separate cases.”
“Clauses 183 to 188 principally deal with the enforcement of directions imposed by the CMA in its final infringement notices, online interface notices, and final breach of undertakings enforcement notices. Clause 183 empowers the CMA to enforce compliance with enforcement directions by giving a provisional breach of directions enforcement notice. That allows the enforcement subject to know the case against them and to make representations. Clause 184 allows the CMA to give a final breach of directions enforcement notice, if it is satisfied that a direction has been fully or partially breached without a reasonable excuse. The notice must follow a provisional breach of directions enforcement notice and can be given only after the period to make representations has expired and the CMA has considered any representations received.”
“Of course—sorry, Dame Maria. Clauses 189 and 190 empower the CMA to give a provisional false information enforcement notice, followed by a final notice imposing a monetary penalty of up to £30,000 or, if higher, 1% of total turnover. They allow the CMA to enforce against, and penalise, the provision of materially false or misleading information to the CMA without reasonable excuse.”
“Finally, the CMA will be required to have regard to the most recent published statement approved by the Secretary of State when deciding whether to impose penalties under this chapter, as well as deciding the penalty’s nature and amount.”
“Clauses 191 to 194 cover appeal rights and other requirements for the CMA that will ensure that it exercises its direct enforcement powers proportionately and transparently. I will also discuss clauses 195 to 199, which make supplementary provision for the monetary penalties imposable by the CMA and the civil courts under part 3 of the Bill. Clause 191 requires the CMA to produce and publish a statement of policy relating to its exercise of powers to impose monetary penalties. The statement of policy must cover the considerations relevant to whether to impose a penalty and the nature and amount of the penalty. When preparing or revising that statement, the CMA must consult the Secretary of State and other relevant stakeholders. The statement, or its revised form, cannot be published without the Secretary of State’s approval.”
“I fear that I may have missed one or two of the hon. Lady’s points, but I think I got most of them. Guidance under clause 191 will be publicly consulted on, giving those potentially affected by it an opportunity to comment directly. That consultation will happen post Royal Assent, and when finalised it will be published on the CMA’s website. On the Secretary of State requesting reports, clearly we do not know what we do not know. The Secretary of State has flexibility on when they might consider that a report is required under clause 193. The CMA already publishes regular impact assessments and other public reports, including its annual report to Parliament, and scrutiny will continue by traditional means, such as through Select Committees.”
“Indeed, we write an annual letter to the CMA, which sets out where we expect its focus to lie. [Official Report, 20 July 2023, Vol. 736, c. 13MC.] The hon. Lady asked a fair question about the appeals timelines. They will not be consulted on, but they will be subject to the civil procedure rules, and relevant rules in other UK jurisdictions. The civil procedure rules will be amended as part of the implementation of the provisions through the Civil Procedure Rule Committee in the usual way. Of course, we will want appeals to take place as expeditiously as possible, provided that they are fair. Question put and agreed to. Clause 191 accordingly ordered to stand part of the Bill. Clause s 192 to 199 ordered to stand part of the Bill. Clause 200 Investigatory powers of enforcers Question proposed, That the clause stand part of the Bill.”
“That was a very comprehensive intervention. I think that we are saying the same thing. Of course the CMA will continue to report annually, and of course we would expect it to report on the new powers that it has been granted through the Bill. In addition to that, the Bill gives the Secretary of State the power to request additional reports as he or she sees fit. We think that that achieves an appropriate balance. We do not think that it is right to get in the way of the CMA doing its job by obliging it to report on a more frequent basis. Of course, as part of my role, or my successor’s role if I move from this position back to the Back Benches or wherever, we regularly have meetings with the CMA to discuss its activities and where it is using its powers.”
“Members agree that the schedule completes the largely successful modernisation of the investigatory powers of consumer law enforcers made by the Consumer Rights Act in 2015.”
“Secondly, we are providing a new direct enforcement power for the CMA to decide whether an enforcement notice it has issued has been complied with and, if not, to impose a civil monetary penalty for any non-compliance without reasonable excuse. The schedule also sets out the extraterritorial reach of enforcers’ power to request information by notice. We are legislating to ensure that enforcers can obtain all the necessary information from parties in and outside the UK to inform their analysis and ascertain breaches of the law, subject to certain conditions. The schedule also ensures that a warrant may be granted in relation to material that may be remotely stored in the cloud but still be accessible from the premises. I hope hon.”
“Clause 200 introduces schedule 15 to the Bill, which contains amendments to schedule 5 to the Consumer Rights Act 2015, relating to the investigatory powers of consumer protection enforcers. Schedule 15 amends provisions in schedule 5 to the Consumer Rights Act to ensure the enforceability of statutory information notices given to a person under paragraph 14 of schedule 5. The amendments made through schedule 15 come in two parts. First, we are providing the courts with a new power to impose a civil monetary penalty where the court finds there has been non-compliance, without reasonable excuse, with an information notice given by any consumer enforcer.”
“It is our contention that trading standards do have the powers that they need to access information. There are concerns; I have concerns—I want to ensure that trading standards have sufficient powers in terms of take-down powers. That is something that we are looking at and, as the hon. Lady says, is probably something that we will discuss as the Bill proceeds. Question put and agreed to . Clause 200 accordingly ordered to stand part of the Bill . Schedule 15 agreed to . Clause 201 ordered to stand part of the Bill. Clause 202 Notices under this Part Question proposed, That the clause stand part of the Bill.”
“Schedule 17 also makes specific rules for continuing conduct that is essentially an act or omission that starts before the new law has commenced but is repeated or continues after the new law’s commencement. In such a scenario, as well as applying to the post-commencement conduct, the new law will apply to the pre-commencement conduct for the purpose of enabling enforcement action under part 3 of the Bill. However, no requirements or penalties can be imposed on a person for the pre-commencement parts of the continuing conduct, unless such a requirement is already imposable under part 8 of the Enterprise Act 2002. Similarly, the court and the CMA will not be able to use their new powers to impose penalties for breaches of any undertakings given under part 8 of the 2002 Act.”
“It includes part 4 of the Bill in the list of enactments in respect of which investigatory powers under schedule 5 to the Consumer Rights Act 2015 are conferred. Clause 208 introduces schedule 17, which makes transitional and saving provision in relation to the court-based and CMA direct enforcement regimes. Schedule 17 provides for the general rule that the new law will apply to conduct that takes place on or after the commencement date of chapters 3 and 4 of part 3 of the Bill. Conversely, as a general rule, the “old law”—that is, part 8 of the Enterprise Act 2002 and related provisions—will continue to apply to conduct that takes place before the commencement date of chapters 3 and 4 in part 3 of the Bill.”
“Those suspected of infringing are not unfairly prejudiced by this clause, which merely reflects the long-standing principle that the exercise of regulatory and judicial functions should not give rise to defamation claims. Clause 207 formally introduces schedule 16 and its contents within the body of the Bill. Schedule 16 makes numerous minor and consequential amendments to other legislation. This schedule is important to provide for the smooth functioning of the enforcement regimes and to ensure legislative consistency. Government amendments 62 and 63 add a reference to chapters 3 and 4 of part 3 of the Bill to schedule 14 to the Enterprise Act 2002. These amendments will ensure legislative consistency. Government amendment 64 is a consequential amendment.”
“Clause 205 requires the CMA to prepare and publish guidance about its general approach to the carrying out of its direct enforcement functions, and to keep under review the guidance, which it may update from time to time. The CMA is required to publicly consult, and obtain the Secretary of State’s approval, before issuing its first guidance. Clause 206 provides that, for the purposes of the law of defamation, absolute privilege applies to anything done by the CMA in the exercise of its direct enforcement functions. There are strong precedents for that approach: judicial or tribunal proceedings are protected from defamation. There is also protection from defamation for the CMA’s direct enforcement regime for competition law and its merger and market investigation powers.”
“Clause 204 requires that the CMA’s rules must be publicly consulted on, and given the approval of the Secretary of State through regulations, before coming into force. Public consultation will ensure that the views of all stakeholders, including consumer groups and traders, are adequately considered as rules are prepared. The Secretary of State also has the ongoing power to vary or revoke rules, which will ensure that the wider needs of the economy continue to be reflected in the operation of the direct enforcement regime. This clause ensures that the CMA’s discretion to make technical rules governing its direct enforcement functions is exercised in a balanced way that serves the needs of the economy.”
“Clause 202 provides for the practicalities of giving notices. It sets out the permissible means for the CMA and other enforcers to give a notice: by delivering it to the person; by leaving it at the person’s address; by post; or by email. Clause 203 empowers the CMA to make rules about procedural and other matters in connection with its direct enforcement functions. This clause expressly permits the CMA to delegate decision making for its direct enforcement functions to its board, panel and/or staff. The clause provides the CMA with a vital tool with which it can establish the technical details of a robust and predictable direct enforcement process that will achieve the stronger enforcement that we need without compromising fair process or certainty for traders.”
“Ordered , That the Order of the Committee of 13 June be varied by the omission from paragraph 1(f) of “and 2.00 pm”.— (Mike Wood.) Ordered , That further consideration be now adjourned. — (Mike Wood.)”
“Schedule 17 Part 3: transitional and saving provisions in relation to Part 3 Amendment made: 65, in schedule 17, page 338, line 1, leave out from “means” to end of line 11 and insert “— (a) Part 8 of EA 2002, as that Part had effect immediately before the commencement date, and (b) any provisions of law (including in particular Schedule 5 to CRA 2015) relating to Part 8 of EA 2002, as those provisions had effect immediately before the commencement date.”.— (Kevin Hollinrake.) This amendment clarifies that the definition of “the old law” for the purposes of the transitional provisions in Schedule 17 to the Bill includes Schedule 5 to the Consumer Rights Act 2015 (which confers investigatory powers on enforcers). Schedule 17, as amended, agreed to. Clause s 209 to 215 ordered to stand part of the Bill.”
“Amendment 64, in schedule 16, page 337, line 2, at end insert— “Part 4 of the Digital Markets, Competition and Consumers Act 2023.”.— (Kevin Hollinrake.) This amendment adds Part 4 of the Bill to the list of enactments in the new paragraph 20A of Schedule 5 to the Consumer Rights Act 2015 (inserted by paragraph 8(10) of Schedule 16), with the effect that authorised enforcers will be able to exercise the investigatory powers conferred by Part 4 of Schedule 5 to CRA 2015 in connection with infringements of Part 4 of the Bill. Schedule 16, as amended, agreed to. Clause 208 ordered to stand part of the Bill.”
“Question put and agreed to. Clause 202 accordingly ordered to stand part of the Bill. Clauses 203 to 207 ordered to stand part of the Bill. Schedule 16 Part 3: minor and consequential amendments Amendments made: 62, in schedule 16, page 329, line 17, leave out sub-paragraph (b). See explanatory statement for Amendment 63. Amendment 63, in schedule 16, page 329, line 23, at end insert— “5A In Schedule 14 (provisions about disclosure of information) at the appropriate place insert— ‘Chapters 3 and 4 of Part 3 of the Digital Markets, Competition and Consumers Act 2023.’”. This amendment, which is made for drafting consistency, inserts a reference to Chapters 3 and 4 of Part 3 of the Bill into Schedule 14 to the Enterprise Act 2002 instead of achieving the same effect by adding that reference into section 238(1) of that Act.”
“I will make a couple of points, the first of which is on the negative procedure. On regulations, there is a combination in clause 204 of public consultation followed by review by the Secretary of State, which will allow for a significant level of scrutiny. On that basis, we feel the negative procedure is justified and appropriate. On the guidance, the CMA must undertake several actions, including a public consultation on the practices. This may take some time, and we expect that the guidance may be ready by autumn 2024, but that will depend upon a number of factors. We clearly want it in place as quickly as possible, but we must ensure that it is fit for purpose. The definition of “accessory” in clause 211 is consistent with, and restates with minor clarifications, the current definition in part 8 of the Enterprise Act 2002.”
“I thank my hon. Friend for being the foremost parliamentary champion for this important cause. The Neonatal Care (Leave and Pay) Act 2023 will give eligible employed parents up to 12 weeks of extra paid leave if their new baby is admitted to neonatal care, providing extra support at a very worrying time. We are keen to introduce the new entitlements as quickly as possible.”
“My hon. Friend is absolutely right to press us on this. We need to do this as quickly as possible and we are keen, as I have said, to do that. Similar work does require updating HMRC IT systems and parliamentary consideration is, of course, required for secondary legislation. There are seven pieces of secondary legislation, and support is needed for employers and payroll providers to implement the changes. We cannot introduce this mid-year; it has to be at the start of the year. I therefore think it very unlikely that we will be able to do that before April 2025.”
“The value of UK exports, measured in current prices, to the EU—including goods and services—was £247 billion in 2016, £298 billion in 2019, and £340 billion in 2022. The EU remains the UK’s largest export market, receiving 42% of UK exports in 2022.”
“As Churchill once said, the pessimist sees a crisis in every opportunity, but the optimist, which my hon. Friend is, sees an opportunity in every crisis. The UK’s total exports have recovered to pre-pandemic levels measured against 2018. In 2022 UK exports were £815 billion, up 21% in current prices and up 0.5% once adjusted for inflation. There is no doubt that UK exports are excelling and will continue to do so.”
“That backs up my comment on pessimism; the hon. Lady is cherry-picking the worst possible figures she can find. In my conversations this week at the OECD conference on SMEs, nations around the world were crying out to do business with the UK, and indeed are doing so. Of course we are trying to tackle market barriers where they exist. We are leading a whole-of-Government effort to remove a hit list of 100 market access barriers, including those arising in Europe, to open up opportunity to UK exporters worth more than £20 billion. The most recent statistics, for the year ending March 2023, show that 45 barriers were resolved in Europe in that year, compared with 41 in the previous year.”
“On a similar theme to my previous answer, the UK’s total exports have recovered to pre-pandemic levels measured against 2018. In 2022, UK exports were £815 billion, up 21% in current prices and by 0.5% once adjusted for inflation.”
“I say again that UK trade with the EU has recovered to pre-pandemic levels when measured in current prices, worth £772 billion in 2022, 14% higher in current prices than in 2018. We are making significant progress, not just with the European Union but with the rest of the world. We see our place in the world as being able to trade with the entire world, not just focusing entirely on the EU.”
“Europe remains a vital export destination for British businesses, with exports of £401 billion in 2022, an increase of 26% on the previous year in current prices. Only this week, I attended the OECD small and medium-sized enterprise conference, which dealt largely with international barriers to trade. We are determined to remove market barriers to make it easier, particularly for SMEs, to trade across borders.”
“I know that my colleagues at the Department for Culture, Media and Sport are working hard with our European counterparts to try to ease the difficulties in that area—we recognise it as a problem. Many positive things are happening in current trade with the EU. Indeed, in 2022, the north-west—the hon. Gentleman’s region—exported £33 billion-worth of goods and £24.5 billion-worth of services, which is the area he is referring to. The north-west is the third largest area in the country for services exported to the EU.”
“We do support reform and are keen to take forward primary legislation when parliamentary time allows. In the meantime, there are measures that we can take through secondary legislation, which we are taking forward. We are also looking to take forward insolvency reform, which is something else that we committed to do.”
“We are taking forward a number of reforms, as the hon. Member is aware. There is a private Member’s Bill, the Employment Relations (Flexible Working) Bill, which includes a day-one right to request flexible working, as well as the right to request predictable terms and conditions, which is one of the recommendations of the Taylor review. I think he should welcome those kinds of measures.”
“I was delighted to attend my hon. Friend’s business conference in north Northamptonshire. As part of that, we passed the Loake shop in Kettering, which is a world leader in shoes—in fact, I am wearing a pair today—and he offered to try to get me a pair at a discounted price, which I very much look forward to. There are great export opportunities through that.”
“First, through Lords amendment 2B, the noble Lords seek to introduce additional consultation requirements and new parliamentary scrutiny processes. We recognise the importance of ensuring that the public, employers, employees, trade unions and their members are all able to participate in setting minimum service levels. That is why we ran consultations on applying MSLs to ambulance, fire, and passenger rail services on that basis. The Government maintain that the Bill enables the appropriate consultation to take place, and we are confident that the affirmative procedure will allow Parliament to conduct proper scrutiny of secondary legislation.”
“There are three motions before the House. I am grateful for the fact that both Houses have reached agreement on the appropriate territorial application of the Bill, but I regret that we have not yet reached agreement on some remaining issues. I must once again urge the House to disagree with the Lords amendments before us. Again, the Bill has been amended in ways that would delay implementation or seriously limit the operation of minimum service levels. That would mean that we could not provide the all-important balance between the ability of unions and their members to strike and the ability of the wider public to access, during periods of strike action, the key services that our country needs. I will briefly summarise for the House the reasons why the amendments remain unacceptable to the House.”
“If there is anybody whom the hon. Gentleman thinks was not able to contribute to the consultation, I ask him to please let me know, but it was open to anybody to make a submission to the consultation, and all those submissions will be properly assessed by Ministers and officials. I turn now to the Lords amendments that would restrict the ways in which we can ensure that minimum service levels are achieved, Lords amendment 4B still leaves employers powerless to manage instances of non-compliance when workers strike contrary to being named on a work notice.”
“As the hon. Lady may know, our initial consultations closed around the middle of May—9 May to 11 May. Those submissions will now be considered, and we will report back to the House accordingly.”
“We are very clear that we want to maintain the right to strike. Previous derogations, which we very much appreciate, have not interfered with people making their views known through industrial action. We do not expect that situation to change. As I say, the consultation ran for a good period of time, and the submissions are now being considered. Of course, we want to make sure that people have been properly consulted and that the regulations are fit for purpose.”
“I will make a little progress, but I will make sure that both the hon. Member for Kilmarnock and Loudoun (Alan Brown) and the hon. Member for Glasgow South West (Chris Stephens) get a chance to make their points. The Bill takes the same approach as to any other strike action that is not protected under existing legislation. Lords amendment 5B may suggest that the other place accepts that trade unions should have a role to play in ensuring that minimum service levels are met, but in reality under, that amendment, whether and how the unions encouraged their members to comply with work notices would be at their discretion. Unions would be able to induce people to strike as normal and take steps to undermine the achievement of minimum service levels. That is clearly directly counter to the objectives of the policy.”
“Not at all. There will be further scrutiny of the minimum service levels when they are brought forward, in the usual way that legislation passes through this House. Those regulations will be considered by both Houses.”
“Because it requires people who are named in a work notice to turn up for work, which is common in other jurisdictions that use minimum service levels in order to ensure that the public can go about their daily lives and businesses continue to operate. It does not interfere with that ability.”
“As always, I entirely agree with all the points that the hon. Gentleman has made. Of course strikes should be a last resort, and workers should be able to take industrial action when they feel their voices are not being heard. I do not think there is anything in the Bill that cuts across that. Hon. Members may disagree, but that is our position, and it is a position we have maintained throughout the passage of the Bill.”
“No, I have given way twice to the hon. Gentleman. The Government maintain that there must be a responsibility for unions to ensure that their members comply. Without that, and without any incentives for employees to attend work on a strike day when identified in a work notice, the effectiveness of the legislation will be severely undermined. Unfortunately, I do not consider that these amendments are a meaningful attempt to reach agreement. I fear that we are having a somewhat repetitive debate that is delaying us getting on with the important business of minimising disruption to the public during periods of strike action, and I encourage this elected House to disagree with the amendments.”
“But is he properly representing the many other stakeholders in this debate, such as pub landlords, restauranteurs, hoteliers and people seeking urgent medical treatment or trying to get to work or to see family? There have been 600,000 cancelled appointments as a result of the strikes of recent months and £3.2 billion of economic detriment—much of that to our restaurateurs, hoteliers and pub owners. It is important that their voices are heard, too.”
“I thank Members for their contributions. It is fair to say that we will have to agree to disagree. We believe that this legislation is a proportionate response that gives the Government the power to ensure a safe level of service in areas such as health, transport and border security, so that people’s lives are not put at risk and they can work, access healthcare and safely go about their daily lives. I will touch on one or two points raised by right hon. and hon. Members. I have a great deal of time for the shadow Minister, the hon. Member for Ellesmere Port and Neston (Justin Madders), though perhaps we do not agree so much in this debate. He asked who we govern on behalf of, and he listed very important people in our society—our nurses, train drivers and border security officers.”
“We have been clear that there is a balance between people being able to seek industrial action and being able to go about their daily lives. That is the balance that we are trying to strike. He asked if we fear scrutiny; not at all. What we fear is delay. That is what the Opposition parties are trying to bring about: delay in wrecking amendments.”