Compensation Bill [Lords]

The very fact that we are having this discussion demonstrates that the trade unions, voluntary organisations, the Law Society and other bodies with different forms of regulation have shown that the exemption is an appropriate way of proceeding. I repeat for the hon. Gentleman’s benefit that anyone who is given an exemption, but breaches the code of practice, could be brought back into the regulatory framework. The beauty of the Bill is that it is sufficiently flexible to allow that to happen. The comments of Labour Members show that trade unions are doing excellent work in the vast majority of cases. We can have every confidence that that will continue to be the case under the exempted procedure. The framework provides flexibility to respond to a changing market. It is proportionate and closes the regulatory gap, and it will provide similar regulatory requirements for claims farmers and solicitors. It will also send out a powerful message to those who attempt to evade regulation.