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Consumer Rights (EUC Report)

It is just like being told that the tooth fairy no longer exists. The noble and learned Lord has destroyed another illusion, but I thank him for the information. I think that I have already covered some of the points made by the noble Lord, Lord Borrie. He has already received enough plaudits for his contribution; if we give him any more, he will not get out of the Chamber. We share his concern about the reduction of protection. The noble Baroness, Lady Wilcox, spoke about the need for plain English and not having something that becomes almost a lowest common denominator. I believe that I have addressed her point about the full impact assessment. The noble Lord, Lord Whitty, feels that we need to start again. I am not sure that we would share that view, but we share his underlying concern about ensuring a real improvement in consumer rights in going down this road. I believe that I have addressed most of the points made by noble Lords. If I have missed any, we will communicate in writing. I reiterate the Government’s support for the principles that underpin this directive: consumer protection and the internal market. However, it is clear that there is much more work to do to secure a directive that meets both these objectives. We agree with the committee that the directive can be approved during negotiations; it should not be scrapped or rejected out of hand. I have just realised that I did not pick up all the points made by the noble Lord, Lord Razzall, who rightly said that we should not be complacent even about our own rights and that there are areas capable of being improved—he gave us numerous examples. I share the view of the noble Lord, Lord Hunt, that we will not get a total media bypass on this issue, because it genuinely creates a lot of interest. My noble friend Lord Whitty will in any case ensure through his work that there will not be a media bypass. Another pleasurable part of the debate was his reminding us about the law of unintended consequences and the cones helpline. What a poignant moment that was. I can assure him that we can retain auto-enrolment. We share his concern about clarity, which is vital. The Government are working hard to secure amendments to the directive that will provide the necessary levels of consumer protection and clarity. We are making progress and I remain optimistic that we can secure the necessary changes to achieve an overall high level of consumer protection. As we have made clear, the UK Government support full harmonisation of consumer rights where there is evidence that minimum harmonisation and the resulting divergence in laws create barriers to trade and reduce consumer confidence. We will continue to work with the Commission and other member states to find solutions that can be accepted on a full harmonisation basis wherever possible, but we recognise that it may be difficult to achieve this in some areas. We will not achieve the potential benefits that the directive can bring simply by insisting that all current UK provisions remain unchanged. All member states must be willing to amend and adapt their rules to achieve workable solutions to ensure that consumers across the whole EU benefit from the directive, but I stress again that it should not be at the expense of the clear protection that already exists. Likewise, simply setting the level of consumer protection at the highest possible level will not necessarily benefit consumers or traders. The increased costs to business will simply be passed on to consumers, and increased burdens may force traders to withdraw from some markets, resulting in a reduction in consumer choice. So there is a balance to be struck in consumer rights. We have been negotiating this directive in council for a year now. While the progress has been slow, we are making progress towards agreeing solutions on a number of key issues. Following the elections this year, the European Parliament has recently begun its detailed consideration of the proposal. We expect its report in the first half of next year. The Government will continue to work with our European partners to improve the text of the directive so that it brings benefits for both consumers and businesses in the UK and across Europe. As we stated in our consumer White Paper published earlier this year, it is our intention to implement the directive through a consumer Bill of rights that will simplify and modernise UK consumer protection legislation so that all key consumer protections are contained in a single piece of legislation, making it easier for traders and enforcers to understand and apply the law and for consumers to understand and assert their rights. I could not conclude this debate without once again thanking the noble Baroness, Lady Howarth, and the committee for a really valuable piece of work and an outstanding report.