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Regulatory Enforcement and Sanctions Bill [Lords]

I will not give way to the hon. Gentleman; he has not been here since the beginning of the debate. As the Macrory report made clear, we decided to introduce additional sanctions. He found that, in the past, UK regulators have relied too much on criminal prosecution as a means of tackling breaches of regulation. He identified a series of weaknesses in the current system. For example, he noted that criminal prosecution may occasionally be a disproportionate response when there is no deliberate intent or wilfulness to break the law. He also identified evidence of a compliance deficit, whereby regulators leave many breaches unpunished because they have a choice only between criminal prosecution and informal advice to tackle regulatory non-compliance. Macrory also made clear his view that the deterrent was occasionally insufficient. He noted the criticism that the current system provides insufficient tools, with the courts handing down fines that often do not reflect the seriousness of the offence or the financial benefit gained through wilful non-compliance with the law. He also noted that prosecutions take time and money. Heavy reliance on formal criminal prosecutions makes resolving such cases a costly and time-consuming exercise for business and regulators. In many instances, given regulators' limited resources, the cost or expense of bringing criminal prosecutions deters the regulator from taking any action in all but the most clear-cut cases. Civil sanctions will allow regulators to act in a more proportionate and targeted way, thus helping to close the compliance deficit and delivering considerable savings to both businesses and regulators. The hon. Member for Brent, East asked about restorative justice. Part 3 already includes a significant element of restorative justice through enabling regulators to impose restoration notices and accept undertakings offered on their business to rectify any harm caused by its non-compliance. The Better Regulation Executive is working in partnership with regulators to explore how they may develop restorative justice schemes locally. The hon. Member for Beverley and Holderness expressed concern that under the Bill regulators would act as judge, jury and sentencer. Opposition Front Benchers picked up on that, as did Lord Lyell in the other place. The Bill allows many regulators to receive significant new powers and also includes important safeguards. First, the regulator will need to be satisfied beyond reasonable doubt that an offence has been committed—that is the criminal standard of proof. Secondly, the person whom the regulator suspects of committing the offence will be able to make representations to the regulator before a fixed monetary penalty or a discretionary requirement can be imposed. Thirdly, and perhaps most important, the Bill provides, as I made clear in my intervention, a right of appeal to an independent, impartial and expert tribunal. We firmly believe that the provisions in part 3 are fully compatible with our obligations under the European convention on human rights.