Tribunals, Courts and Enforcement Bill [HL]

My name is attached to Amendments Nos. 70 and 71. There is no difference in principle between me and the noble Lord, Lord Thomas of Gresford, or, indeed, between us and the Government. We live in a market economy, which will work only if debts are paid. The issues that are about to be debated in the Committee are not so much on principles, but about getting the balance absolutely right between the creditor and the debtor. Inevitably, there will be differences between us at the margin, but I do not think that today we are debating the underlying importance of what the Government seek to do. Powers of entry are essential to ensure that debts are enforceable. But we must guard against any abuse of these powers and, in particular, as the noble Lord, Lord Thomas of Gresford, emphasised, the ignorance surrounding them. Amendment No. 70 would introduce a requirement to supply a debtor with an information sheet on a bailiff’s first visit. The information would include the rights of the debtor, the powers available to the bailiffs, and, perhaps most importantly, what the bailiff cannot do. The general concern with this part of the Bill is that bailiffs are given, as the noble Lord, Lord Thomas, indicated, increased powers of entry, and we must ensure that debtors are properly protected against bad practice. On Amendment No. 71, we support the Government’s aim to update the law of distress, allowing landlords to recover rent arrears through the new commercial rent arrears recovery procedure. This small amendment relates to the appropriate notice period. Any minimum period of notice set out under regulations allowed for in this section must, in our view, be as short as reasonably possible to prevent tenants disposing of goods, hence the recommendation of no more than one working day. Under current Distress for Rent Rules, a landlord is permitted to take action as soon as rent is overdue and without notice. The Bill will require the landlord to give the tenant notice that the enforcement action will commence if the arrears are not paid. The minimum period and form of notice are not specifically included in the Bill and, according to paragraph 7 of Schedule 12, will be set down in future regulations. The provision of giving notice will put the landlord at a disadvantage as the tenant will be in a position to dispose of the goods prior to the rent arrears procedure being exercised. As such, the period of notice should be no more than one working day.