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Scottish Banknotes (Acceptability in United Kingdom) Bill

On this occasion, I am in complete agreement with the Minister. "Legal tender" is a phrase that is often bandied about in the press or in discussion, but its meaning is quite different from what people think it is. They think that, if a note or piece of currency is legal tender, there is an obligation to accept it, but that is simply not the case. Many businesses decline to take notes of a certain size or certain cards; they can also decline to take cheques. The Bill will require all providers of goods and services in the United Kingdom that accept Bank of England notes to accept Scottish banknotes on an equal basis. I believe that that clear, simple requirement would do all that those wishing to make purchases with Scottish notes want it to do. However, it would not do any more than that. In framing the Bill, I have been careful not to make unreasonable demands on any vendor. The way in which the requirement is worded would not, for example, require sellers who currently accept only cheques and card payments to start handling cash, even when presented with a Scottish banknote. Similarly, I recognise that some sellers consider changing a £50 Bank of England note too much of an inconvenience, and they would not be required to accept large-denomination Scottish notes either. As I have said, I am aware of the regulatory difficulties that small businesses, in particular, face. I appreciate that the current recession is putting extra pressure on those businesses. I have therefore been careful not to open the door to disproportionate sanctions such as court action. Instead, I have chosen to give the Office of Fair Trading the power to investigate complaints of non-compliance with the requirement to accept Scottish notes. The OFT may investigate complaints as it considers necessary, and notify a business of its obligations. If the OFT finds that a vendor has breached the requirement to accept Scottish banknotes more than twice in one year, it has the option to require the business to display notices about the availability of banknotes. These notice-giving provisions have precedent in section 38 of the Consumer Credit Act 2006 and section 33A of the Consumer Credit Act 1974. These provisions reflect two things. The first is my belief that any regulation should be as minimal as possible. The second is my belief that the vast majority of those sellers who mistreat Scottish banknotes are doing so not through bloody-mindedness but simply through ignorance. Having legislation that makes it clear that Scottish banknotes are equally valid—and of equal value—and ought to be accepted will do much to ensure that sellers accept the notes. Threatening them with draconian penalties is unnecessary. The House will also see that my Bill allows the suspicion that a note is a forgery to be used as a defence. However, that must be a reasonable suspicion. With the right awareness training work, I do not believe that it is unfair to expect sellers outside Scotland to make their staff familiar with the existence of Scottish banknotes.