Queen's Speech - Key plans

Tuesday 23rd November 2004 at 12:12 AM

Stakeholders comment on a range of government legislative proposals.

CONSUMER CREDIT BILL

Consumers will gain new rights as the government reforms the laws governing financial regulation.

Stakeholder Response: Which?

Laurence Baxter, senior policy advisor, said: "Which?very much welcomes the announcement of the Consumer Credit Bill, which should give greater protection against unfair lending and create a fairer and more competitive credit market, for example, by making it easier for people to challenge unfair or extortionate credit agreements.

"We hope it will also improve the government's ability to take action against unscrupulous lenders.

"Only transparent information and products will create a truly competitive market.

"Which? is calling for a raft of measures including: credit cards having one way of allocating interest on their cards so that people can better compare rates; sharing of customers' full credit history between lenders to ensure responsible lending; and banning the automatic inclusion of Payment Protection Insurance (PPI) in credit quotes which bumps up the cost of the loan without customers realising."

Stakeholder Response: National Consumer Council

Claire Whyley, NCC deputy head of policy, said: "Our credit laws are more than 30 years old and well past their use-by date. So today’s confirmation that last year's white paper proposals will crystallise into new credit laws is extremely welcome.

"NCC has campaigned hard for new laws that will oblige credit providers to lend responsibly and treat their customers fairly, that will introduce a tougher credit licensing regime than now, and that will give people with credit problems a simpler, more consumer-friendly redress system.

"What matters now is that these key reforms are included in the published bill and that they survive the parliamentary process which - with a general election on the near horizon - must suffer no delay."

Stakeholder Response: Association of Chartered Certified Accountants

John Davies, head of business law, said: "We welcome government action in this area - with consumer debit in the UK exceeding £1 trillion, resulting in a rapidly increasing rate of bankruptcy filings, consumers need additional protection against unfair credit practices, as well as fairer and more competitive credit market."

Stakeholder Response: Federation of Small Businesses

John Walker, FSB national policy chairman, said: "Small businesses need similar protection afforded to consumers as entrepreneurs often use their house for security and lack specialist financial knowledge."

Stakeholder Response: APACS - the UK payments association

Sandra Quinn, director of corporate communications for APACS, said: "We are pleased to see the Consumer Credit Bill in the Queen’s Speech. It will add to efforts on the part of the industry already underway to make the credit market more transparent.

"From what we understand the bill is working very much with the grain of the changes in the latest draft of the Banking Code which includes the summary boxes, clearer marketing practices and warnings about over indebtedness for which the government are likely to be legislating.

"This is the second stage of changes coming out of the government’s review of the 1974 Consumer Credit Act – the industry has already agreed a range of changes in partnership with the government such as a single APR calculation and alterations to the form and content of credit agreements.

"The industry also welcomes the expected measures to crackdown on predatory lending by loan sharks. People deserve protection from some of the appalling practices seen in this unregulated market.

"Credit cards remain one of our most popular payment tools in the UK, with more than 30 million customers, this is one of the world’s most competitive markets. The industry hopes that the Bill will further strengthen the credit card market."

COMMISSION FOR EQUALITY AND HUMAN RIGHTS

The Queen's speech set out plans to extend protection against discrimination to religious groups and merge existing rights organisations into a new Commission for Equality and Human Rights.

Stakeholder Response: Age Concern

Gordon Lishman, director general of Age Concern England, said: "The Equality Bill is a big win for the thousands of older people who are forced to fight ageism every day.

"For the first time ever, older people’s rights will be recognised and we have a real chance of defeating discrimination. Age Concern has long been campaigning for a body with the power to champion older people’s rights.

"The government must now get the equality champion up and running by 2006 and extend the public duty to promote equality to include age equality."

INLAND REVENUE AND CUSTOMS MERGER

This will merge the existing separate bodies of HM Customs and Excise and the Inland Revenue. Ministers believe it will lead to a more efficient system of tax collection, improving revenue collection.

Stakeholder Response: Association of Chartered and Certified Accountants

Chas Roy-Chowdhury, head of taxation, said: "ACCA remains supportive of the merging of the two bodies but are concerned that Customs' approach, which tends to be perceived by businesses as more investigative and 'hard line' than the Revenue - which is viewed more as a negotiator with a 'human face' - may end up dominating the newly-merged tax authority.

"It should not be forgotten that VAT and corporation tax are two very different animals. VAT is charged on a transaction basis and Customs' IT system is set up for regular payments over time. The Revenue's infrastructure is geared to deal with annual or quarterly deadlines - so the risk is that there will be difficulties in processing these very different sorts of payments in time to meet the deadlines. The cost of bringing together two such disparate systems will be significant."

Stakeholder Response: Federation of Small Businesses

John Walker, FSB national policy chairman said: "The FSB welcomes both the integration of Customs and Excise and Inland Revenue and the creation of a single equality commission. It makes sense to have a single point of reference for business owners looking for information and to rationalise the 350 different types of official inspectors that currently enjoy rights of access to business premises."

CORPORATE MANSLAUGHTER

This long awaited measure will reform the laws that govern prosecutions of companies for manslaughter offences. It will apply when there are "very serious failings in the strategic management of a company's activities that have resulted in death".

Stakeholder Response: Association of Chartered Certified Accountants

John Davies, head of business law, said: "The inclusion in the programme of only a draft bill on corporate manslaughter, despite the many years of debate on the issue, is an indication of how contentious and problematic the idea of legislating for corporate killing actually is.

"The publication of the draft bill will be the opportunity for all these issues to be addressed in detail. Should the draft eventually result in legislation, it will have major consequences for company directors and managers, but any reform is not likely for the near future."

Stakeholder Response: Institute of Directors

Miles Templeman, director general of the IoD, said: "Directors need to have certainty in the law. An offence of corporate manslaughter should be a potent force in raising awareness and prompting better practice in organisations in the private and public sectors. We look forward to seeing the proposals in more detail.

"The IoD hopes the new law will be confined to prosecution of the offending organisation, and not a means of finding individual scapegoats."

ID CARDS

The identity cards bill will introduce compulsory identity cards to tackle terrorism, asylum abuses and identity fraud.

Stakeholder Response: Federation of Small Business

John Walker, FSB national policy chairman, said: "The proposal for ID cards will appeal to some sectors such as pubs and off-licenses which require proof of age. But we will be monitoring developments closely because we are concerned about the potential for bureaucracy and interference."

Stakeholder Response: Institute of Directors

Miles Templeman, director general of the IoD, said: "The IoD's members are in favour of identity cards, with 63 per cent supporting their introduction as part of a campaign to tackle crime.

"However, whilst backing identity cards in principle, 60 per cent of members do not believe that they will reduce the likelihood of a terrorist attack in the UK. Identity cards alone are not a panacea."

Stakeholder Response: APACS - the UK payments association

A spokesman for APACS said: "The UK payment industry has long been an advocate of the need for the UK government to address issues concerning the verification of identity, and is actively engaged with the Home Office and other government bodies in developing programmes to combat identity theft, financial crime and money laundering.

"APACS has considerable experience and a demonstrable record through the rollout of the UK Chip and PIN programme. APACS is highly supportive of the need and intent of this legislation.

"However, the government’s initiative must be credible and robust, and deliver a secure identity credential built on sound and secure registration and enrolment processes, with a secure supporting infrastructure."

DISABILITY DISCRIMINATION BILL

The Disability and Discrimination Bill will reform the rights of disabled people, extending existing laws to cover transport. It will also extend the definition of disability to include those with progressive diseases such as HIV, cancer and multiple sclerosis.

Stakeholder Response: Leonard Cheshire

John Knight, head of policy at Leonard Cheshire, said: "It is both ridiculous and appalling that parliament got itself so tied up in knots about hunting that such a vitally important piece of legislation as the DDB is simply left behind. Now disabled people just have to hope that the politicians don’t get so wrapped up in themselves that they forget about the bill again.

"Whatever the party politics, it is disabled people that will suffer. Delaying our civil rights to score political points over hunting is disgraceful – the DDB should already be progressing, now that it has been announced in the Queen's Speech it must be at the very top of the government’s agenda."

Stakeholder Response: National Autistic Society

Senay Camgöz, NAS parliamentary officer, said: "The National Autistic Society welcomes many of the bills and government plans announced by the Queen in her speech to the House of Lords today.

"The priority given to the elimination of discrimination against people with disabilities in the new Disability Bill could have profound effects for people with autism, their families and carers. The NAS does, however, have concerns over a number of the proposed bills.

"While we welcome the new Disability Bill, we believe the government could do more to challenge discrimination by making it clear on the face of the bill that people with autism, a social and communication disorder, are properly protected under it. The definition of disability in the current Disability Discrimination Act fails to cover all forms of autism effectively, especially high functioning autism and Asperger syndrome.

"Although we also welcome the government’s recent announcement that it will update the existing DDA guidance in order to better reflect the particular nature of autism, the NAS remains concerned that many people with autism, especially those most likely to be in employment, will still have to endure legal battles to be included in this new legislation.

"Currently, the law is ambiguous about certain forms of autism, especially Asperger syndrome. Many people with autism, including those of average or higher than average intelligence, find it impossible to decipher the social signals that the rest of us take for granted. Until this aspect of autism is recognised in primary legislation, a question mark will continue to hang over this group. We urge the government to take this important opportunity to end the ambiguity.

"The NAS also welcomes the fact that exam boards will now be covered by the DDA as we believe that this will lead to less discrimination against pupils with autism sitting exams. Currently exam boards are not covered by the DDA, so their actions cannot be challenged."

COMMENT ON MODERNISING RURAL DELIVERY BILL

The draft Modernising Rural Delivery Bill Merges English Nature with parts of the Countryside Agency and the Rural Development Service.

Stakeholder Response: Action within Communities in Rural England

Sylvia Brown, ACRE's chief executive said:"ACRE welcomes the government's intention to improve the flexibility of service provision in rural areas under the draft Modernising Rural Delivery Bill, which will form a central part of implementing the government's rural strategy.

"ACRE strongly supports the thrust of the new Rural Strategy, but stresses there are many details yet to be clarified before effective implementation can be achieved. Ministers have reassured ACRE's member Rural Community Councils (RCCs) that much of their community support work will be safeguarded within funding channelled through Government Offices. This reflects the Government's confidence in the experience of RCCs working and delivering services closely with the community.

"But in rationalising delivery through the regions, there’s a danger some crucial services could be lost.

"Whilst we welcome the current progress towards the new arrangements and the safeguarding of the innovative work of the RCCs in particular, we do have some concerns. Support for rural transport, for instance, will become the responsibility of the Regional Development Agencies. But low-key community transport schemes are generally social and community projects and ACRE is concerned these may not sit easily alongside major transport schemes that are the current focus of RDA investment plans. "

Queen's Speech - Key plans

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