Regulatory Enforcement and Sanctions Bill [HL]

It might surprise some noble Lords to learn that in principle I, too, am a great fan of sunset clauses. I have championed them in the past and I will do so in the future. It is a provision that we look at case by case. Nevertheless, I do not think that such a clause would be applicable here. Sunset clauses are for where legislation includes proposals designed to address time-limited issues where specific requirements might become out of date, and where there is a focus on a certain set of measures based on market conditions that might change as those markets develop. Neither of those applies here. As the noble Baroness, Lady Wilcox, has said, the purpose of the Bill is to create certainty and consistency, and to reduce regulatory burdens. A sunset clause that is intended to create less regulation over a period of time would have the opposite effect in this case. The Bill is intended to deliver benefits to business and we believe that it will do so. A sunset clause would create huge uncertainty, and indeed would be resisted by business, as we have been told repeatedly by representatives. However, I assure the noble Baroness that we understand the intention behind the proposal, which is to create a requirement to review whether the legislation is achieving its objectives. I should like to reassure her that the Bill has ample provision for ongoing review of the way in which it will be implemented. Clause 17 in Part 1 confers on the Secretary of State the power to provide for the dissolution of the LBRO, which is to be used when it is deemed that the office has achieved its objectives, or indeed has not done so. As we discussed earlier today, Part 3 places a duty on the Minister to make an order to conduct a post-implementation review within three years. Additionally, Clause 64 in Part 3 is a suspension clause that enables a Minister making an order to confer sanctioning powers on a regulator to be able to direct it, not to issue any further sanctions where there is clear evidence that that regulator has persistently failed to act in accordance with its duties under the Bill. I hope that with these safeguards we have addressed the intent behind the amendment and that the noble Baroness may feel able to withdraw it.