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Digital Economy Bill [HL]

My Lords, with regard to both amendments, what is being proposed by the noble Lord, Lord Lucas, and the noble Earl, Lord Erroll, is a further test of a relevant failure by an internet domain registry. The effect of both amendments is that a registry might be able to delay or avoid taking action by claiming it could do nothing about the prescribed unfair practices or misuse of domain names because it did not have the power, responsibility or resources. The amendment of the noble Earl, Lord Erroll, would leave the Secretary of State powerless to act where a registry had taken reasonable steps, even when those steps had entirely failed to sort things out. Let me reassure both the noble Earl and the noble Lord that the Government would not expect a registry to act beyond its powers to correct any failure that it could not reasonably address; for example, where that failure results from the actions of a third party over which it has no control. However, in our view, it is unlikely that a domain name registry would not have the authority and capability to suspend a domain name or take down a site using a domain name used by that registry if it was requested to do so by the relevant authorities because of the adverse effects on the interests of consumers. In practice, however, the Government will have attempted to have a discussion with the relevant registry about the problem that has caused concern long before the powers in this clause are exercised. Any real compliance difficulties faced by the registry will have to come to light during these discussions and, it is to be hoped, a way forward found to the satisfaction of both parties. I turn to the amendment of the noble Lord, Lord Lucas. The absence of adequate arrangements for dealing with complaints by an internet domain registry is one of the two tests that decide whether there has been a relevant failure by that registry. While we regard it as important that such arrangements exist, we realise the form they take will depend on the registry concerned. As I have already explained, if we were concerned there might be a serious failure the Government would have had discussions with the registry to determine whether its arrangements for handling complaints were adequate before—and I stress before—exercising powers in this clause. These discussions will enable the Government to understand what, if any, barriers the registry faces in having adequate arrangements for handling complaints and to try to reach a solution satisfactory to both parties. Using the powers really will be a last resort. However, if abuses are damaging our internet economy, the Government should not be prevented from using these powers because the registry does not have the resources or powers to comply with prescribed requirements. I was as shocked as the noble Lord, Lord Howard, at the idea of taxing domain names. The idea of the Opposition Benches proposing more taxes for the Government is an interesting one that we will take away and raise with the Chancellor. I was reassured that it was not described as a "stealth tax". As for Henry VIII powers, we have dabbled enough in that already—I see the Lib Dem Benches concur. In the light of my explanation, I trust that the noble Lord will feel able to withdraw the amendment.