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Regulatory Enforcement and Sanctions Bill [Lords]

The amendments would defend an important principle for business. Amendment No. 10 would give businesses the option of electing for criminal trial rather than having a fixed monetary penalty imposed upon them. Amendment No. 11 would do the same in respect of discretionary requirements and amendment No. 12 would strengthen the existing right of appeal against a stop notice by similar recourse to a court. I would be worried if companies could use amendment No. 12 as a loophole to delay the imposition of a stop notice, but the wording of clause 54(3) is that a stop notice ““may””, and only may, be suspended pending appeal. I assume from that that if a claim were seen as a delaying tactic, the stop notice would not be suspended, in which case the amendment is needed. I would not wish to press an amendment that could be used as a delaying loophole, however, and I seek guidance from the Minister on that point. I do not envisage that the proposed power would be exercised often. However, it should be in the Bill in case a company feels that it has been wrongly treated and its reputation is at stake. We could make the analogy of an old lady who is accused of stealing a loaf of bread. One could argue that it is a trivial matter and that she should pay the fine or accept the warning and get on with her life, but the size of the offence is not what is important to the old lady. What is important is her reputation. A company’s reputation can be just as important.