Compensation Bill [HL]

I thank the noble Lord, Lord Goodhart, for his explanation of this group of amendments. I say at the beginning that I do not think the Bill is premature in any way. I understand the noble Lord’s argument that he seeks clarity and for the Government to explain their position, but I have indicated that as the Bill moves forward it is one of my ambitions to take on board the comments of noble Lords as we develop the way in which the Government will seek to regulate in this context and to deal with the other issues that have been raised. At all stages of our deliberations in Committee I will be as forthcoming as I can with information. While I do not suggest that the noble Lord, Lord Goodhart, said this, it is not that the Government do not have some clear ideas, but that we think there are options available to us. We should be open in saying that we want to consider whether the only body from the sector itself could conceivably turn into a regulator. We have invited independent professional advice to examine whether that is the case. I have indicated that we will make available to Members of the Committee as much information about the report as possible. However, I am sure the noble Lord, Lord Goodhart, will agree that the Claims Standards Council should be given a chance to respond to the report before we do so. That will be done very soon. We have also wanted to examine with others involved in the regulatory field where there is an appropriate existing regulator and to seek the views of those bodies on whether they could take this on. We have also sought their views on how they think the market might change in the future and what their role might be. We have had some interesting discussions on that point. However, if neither of those two options is appropriate or forthcoming, we will take the power ourselves and my noble and learned friend the Lord Chancellor will regulate. I have indicated that that might be done either directly through the department or indirectly. Although it may appear to the noble Lord that the Government do not have a clear vision, we do. We have a set of clear options which we now wish to determine upon and thus to establish which way to go. We have brought this legislation forward on that basis. On Report, noble Lords will have an opportunity to challenge what the Government are doing and, indeed, to vote if they feel that it is appropriate to do so. We do not deny that opportunity. However, it is hugely beneficial to me to listen to the noble Lords, Lord Goodhart and Lord Hunt, describe their particular views on how they believe this regulation might take place. I am also keen to hear their views on, for example, the work of the Claims Standards Council and the issues they feel are critically important regarding how regulation in this area should be taken forward. I feel that I benefit from the process. We are moving towards giving noble Lords real clarity of vision on how this is to be taken forward both in the short term and over the longer term. I am not sure whether the noble Lord wants me to give him the precise Government view on each of his amendments. In a sense I may have identified his overarching issue; that is, his concern about the designation of a regulator being a fundamental part of what we are doing as quickly as possible. In my view, that should be done in time for noble Lords to present their considered views. Further, while I understand his concerns about a private body, I am not yet in a position to tell him whether he has reason to be so concerned. Indeed, it may well be that in due course the noble Lord is entirely satisfied with how the Government move forward in this area. It would be nice if that were the case. But I am sure he will understand that I must wait until I am in a position to give a definitive view, which I hope will be very shortly. On that basis, I hope he will feel able to withdraw his amendment.