Communications Act 2003 (Maximum Penalty and Disclosure of Information) Order 2005

My Lords, I thank the Minister for explaining the order so clearly. On the matter of the increase in the maximum fine, while we strongly support stamping down on fraudulent and misleading practices against innocent consumers, we point out that many bona fide industry participants, who provide what we agree are very worthwhile services, may be relatively small businesses that could be bankrupted by a fine as large as £250,000 or indeed a lot less. We look to the Minister to explain how he will ensure in each case in deciding the amount of the fine that the potential for that fine to effect serious damage on the offending business will be assessed and taken into account. Will he also confirm that there is provision to vary the fine imposed between zero and the maximum, dependent on both the severity of the contravention and the size of the offending company? We would be grateful to the Minister for an indication of how much the premium rate services industry has grown in recent years. How many premium rate service companies are there in the UK? How many are estimated to operate from overseas but target the British consumer? Regarding the latter, how is it intended that Ofcom should regulate those companies that operate from overseas and target the UK consumer? The jump from a fine of £100,000 to £250,000 only two years after enactment of the primary legislation causes us to wonder either why it was not set at the right level at the outset or whether this is a knee-jerk reaction. First, how many companies have been referred to Ofcom and been fined in recent years? Secondly, how did Ofcom arrive at the figure of £250,000 for the maximum fine? Thirdly, what assessment was made of the impact of this as a deterrent or threat? We note the extension of the exemption of the restriction on disclosure to the Independent Committee for the Supervision of Standards of the Telephone Information Services. Perhaps the Minister could update us on progress regarding the other 16 recommendations of the Ofcom report, which was published a year ago. Lastly, we note the comment of the House of Lords Merits of Statutory Instruments Committee:"““We expect the Government, in keeping the situation under review, to ensure that fines are being effectively collected for breaches of the relevant code of practice, and to publicise the collection rates achieved””." What is the Government’s response to the Committee’s comment, especially as we are aware—the Minister referred to this—that there have been some concerns over ICSTIS’s past performance in collecting fines? We ask for his assurance that the DTI will monitor the situation to ensure continued improvement in collection rates. I look forward to the Minister’s response, and in anticipation that he can reassure us on the above points we will not be opposing the order.