Contribution
My Lords, I am delighted that the Government have chosen to take forward the smart data schemes from the DPDI Bill. The ability seamlessly to harness and use data is worth billions to the UK economy. However, data sharing and the profit that it generates must be balanced against proper oversight.
Let me start by offering strong support to my noble friend Lord Arbuthnot’s Amendment 7. Personally, I would greatly welcome a more sophisticated and widespread insurance market for cyber protections. Such a market would be based on openly shared data; the widespread publication of that data, as set out in the amendment, could help to bring this about.
I also support in principle Amendments 8 and 10 in the name of the noble Lord, Lord Clement-Jones, because, as I set out on the previous group, there is real and inherent value in interoperability. However, I wonder whether the noble Lord might reconsider the term “machine readable” and change it to something— I do not think that I have solved it—a bit more like “digitally interoperable”. I just worry that, in practice, everything is machine-readable today and the term might become obsolete. I am keen to hear the Minister’s response to his very interesting Amendment 31 on the compulsion of any person to provide data.
I turn to the amendments in my name. Amendment 16 would insert an appeals mechanism by which a person is charged a fee under subsection (1). It is quite reasonable that persons listed under subsection (2)—that is, data holders, decision-makers, interface bodies, enforcers and others with duties or powers under these regulations —may charge a fee for the purposes of meeting the expenses they incur, performing duties or exercising powers imposed by regulations made under this part. However, there should be an appeals mechanism so that, in the event that a person is charged an unreasonable fee, they have a means of recourse.
Amendment 17 is a probing amendment intended to explore the rate at which interest accrues on money owed to specific public authorities for unpaid levies. Given that this interest will be mandated by law, do the Government intend to monitor the levels and, if so, how?
Amendment 18 is a probing amendment designed to explore how the Government intend to deal with a situation when a person listed under subsection (2) of this clause believes they have been charged a levy wrongly. Again, it is reasonable that an appeals mechanism be created, and this would ensure that those who considered themselves to have been wrongly charged have a means of recourse.
Amendment 19 is looking for clarification on how the Government envisage unpaid levies being recovered. I would be grateful if the Minister could set out some further detail on that matter.
Amendment 21 is a probing amendment. I am curious to know the maximum value of financial assistance that the Government would allow the Secretary of State or the Treasury to give to persons under Clause 13. I do not think it would be prudent for the Government to become a financial backstop for participants in smart data schemes, so on what basis is that maximum going to be calculated?
Amendment 22 follows on from those concerns and looks to ensure that there is parliamentary oversight of any assistance provided. I am most curious to hear the Minister’s comments on this matter.
Amendment 23 is a straightforward—I think—amendment to the wording. I feel that the phrase “reasonably possible” seems to open the door to almost limitless endeavours and therefore suggest replacing it with “reasonably practicable”.
On Amendment 25, easy access to the FCA’s policy regarding penalties and levies is important. That would allow oversight, not only parliamentary but by those who are directly or indirectly affected by decisions taken under this policy. I therefore believe the amendment is necessary, as a website is the most accessible location for that information. Furthermore, regular review is necessary to ensure that the policy is functioning and serving its purpose.
Amendments 26 and 27 return to the matter of an appeals process. I will not repeat myself too much, but it is important to be able to appeal penalties and to create a route by which individuals understand how they can go about doing so.
Amendment 28 would ensure that, when the Secretary of State and the Treasury review the regulations made under Part 1 of the Bill, they do so concurrently. This amendment would prevent separate reviews being conducted that may contradict each other or be published at different times; it would force the relevant departments to produce one review and to produce it together. This would be prudent. It would prevent the Government doing the same work twice, unnecessarily spending public money, and would prevent contradicting reviews, which may cause confusion and financial costs in the smart data scheme industry.
Lastly, Amendment 29, which would ensure that Section 10 of this part was subject to the affirmative procedure, would allow for parliamentary oversight of regulations made under this clause.
We are pleased that the Government have chosen to bring smart data schemes forward, but I hope the Minister can take my concerns on board and share with us some of the detail in her response.