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Regulatory Enforcement and Sanctions Bill [Lords]

I begin, again, by commending the hon. Member for Solihull (Lorely Burt) for tabling the amendments. They relate to part 3 of the Bill and the ability of regulators—plural in this case, not a single regulator—to apply civil sanctions, which in plain English means fines for the most part, instead of seeking redress through the criminal justice system. We strongly support the amendments. We recognise that if they are managed carefully, there is a good argument for civil sanctions when businesses transgress. A fine can sometimes be more appropriate than seeking prosecution for a criminal offence. However, there were serious concerns when the Government originally proposed to allow the revenue from those fines to remain with the regulator concerned. I am pleased to say that the Bill was amended in Committee so that instead of money remaining with the regulator, which could create an undue inducement, it will go to the general Consolidated Fund. The amendments address a different, but related and important, concern that was discussed briefly in Committee. I turn to the proposals for fixed monetary penalties. I should point out that there are also discretionary penalties in the Bill, but here we are looking at the fixed monetary penalties. The proposals do not allow for an accused person or business—I make that distinction carefully—to defend themselves prior to appeal. Nor do they require a regulator to prove to an independent party that the accused is indeed guilty. In short, the regulator, as the Bill stands, can investigate the issue, prosecute the matter and pass sentence through the civil process, and an accused business can only then appeal to clear its name—to put it in the jargon. In business, as the hon. Member for Solihull rightly highlighted, reputation is vital. That is especially the case in the modern era—in what we might describe as a more socially and environmentally responsible age. Consumers are very much aware that they can withdraw their custom or sell their shares, and that if a fine has been issued that catches the public eye, it can have an immediate impact on the operation and, indeed, the success or otherwise of that business. As the Bill stands, a notice to fine can be issued. Of course, in this day and age of 24-hour, instant media, there will then be the public assumption of guilt. We are all familiar with those instances where an announcement is made about a particular situation with a company, and perhaps three months later, after a long and tedious process, it is found that the allegation was not quite accurate or true, or that somebody else was at fault. By then, however, it is not a headline—it is on page 37, in ““Corrections””. Nevertheless, the damage has been done. We can all think of different instances. Perhaps an oil company has had an allegation against it about a dangerous leak. Here, I am not thinking merely of oilfields but, in the context of this Bill, the contaminant in the fuel at a petrol filling station possibly leaking into the local water system. We can all think of food hygiene examples. A business whose very trade survives on its reputation as an establishment of high quality could be severely damaged if a fine were submitted and guilt was assumed from that fine.