Lord Hendy of Richmond Hill (Lab)

My Lords, this group concerns the consumer rights powers in the Bill and the scrutiny of those powers. I am grateful to noble Lords for their amendments. The Government’s objective is a coherent, effective and proportionate consumer protection regime for aviation passengers. Before I turn to the individual amendments, I will make three points that apply across this group. First, Clause 1 does not in itself create new powers of entry or financial penalties; it simply enables regulations to be made, with their scope, safeguards and detail being considered when they are brought forward. Secondly, the Government believe that detailed requirements should be developed through secondary legislation, with consultation, options appraisal and an impact assessment where appropriate. Thirdly, the Bill preserves flexibility so that the CAA, the CMA and the Government can respond effectively to consumer harms that may cut across aviation and wider markets. Where I refer to duplication, proportionality or flexibility, these are the common justifications that I have in mind. Let me begin with Amendments 8 and 18 in the name of the noble Lord, Lord Moylan, which are supported by the noble Baroness, Lady Foster, and concern the role of the Competition and Markets Authority. Although most aviation-specific enforcement relating to information gathering and powers of entry will sit with the CAA in practice, the CMA has a broader, market-wide role—including in sectors that overlap with aviation, such as travel and holidays. The CAA and the CMA already have concurrent powers in relation to general consumer law. Removing the CMA from this framework could limit flexibility and make it harder to address problems that span aviation and wider consumer markets. Therefore, in the Government’s view, it is right to retain the ability to include the CMA where necessary. The precise role of each regulator will be considered when secondary legislation is drafted. I therefore ask the noble Lord not to press his amendments. I turn next to the amendment from the noble Lord, Lord Grayling, which seeks to remove the power of entry provision in Clause 1. I am afraid that I cannot support it. The Bill is designed to improve the CAA’s enforcement ability and to reduce reliance on slow, resource-intensive court processes. Clause 2 strengthens the CAA’s direct information-gathering powers. Clause 1 enables those powers to be strengthened further, if needed, including by enabling powers to enter premises or to require documents and information during the course of an investigation. Any such power would be considered carefully, consulted on and include appropriate safeguards when regulations are brought forward. I also assure the noble Lord that these wide enforcement powers, including powers of entry, fell within Section 2 of the European Communities Act 1972. Much passenger rights law originated in EU law and has now been assimilated into UK law. Since our exit from the EU, primary legislation has generally been needed to amend it. Clause 1 restores the necessary degree of flexibility while preserving parliamentary scrutiny and future consultation. I ask the noble Lord not to press his amendment.