Compensation Bill [HL]

I support some of the Minister’s remarks. We might be in danger of taking the consumer for granted as always being vulnerable. However, some consumers are less vulnerable than others. Indeed, some consumers are good at promoting claims and if they do not receive a satisfactory response from the first person they approach, they go to a second and even a third. Therefore, I urge that we do not shut every loophole, although my noble friend Lord Hunt likes to do so. We should never succeed in that and I feel strongly that it would be better to rely on a combination of guidance, as the Minister described. Guidelines are important. There was a good article in the Financial Times—I know that not the most vulnerable people read that—pointing out all the traps one can fall into if one goes to the wrong person to pursue a claim. I would prefer to be as precise as possible on a relatively narrow ground, if I followed the argument made about Fuengirola. With modern means of communication and with people authorised to manage claims not always being as good as they should be and behaving as well as they should do, we would be better advised to narrow it down. That leads me on to the secondary legislation point, also raised by my noble friend. The Better Regulation Task Force dealt not only with this subject but produced a report called Regulation—Less is More. The Government have been encouraging us all to have less secondary legislation, particularly for business. However, as regards this Bill, unless we see drafts of secondary legislation before it reaches Third Reading, we do not know what will be done. I am therefore concerned to introduce more precision. At Second Reading the noble Lord, Lord Goodhart, used the word ““premature””. I am not sure of the exact context in which he did so, but I think he said that the Bill might be somewhat premature. I remember agreeing with that comment. My plea is that we should not go on an extended loophole exercise, but should be more precise about a narrower measure that will work. We could always then apply the good lessons in another area later.