Article
20 June 05
A bumper programme
by Michael Clancy
Outline of the principal measures to look out for in Westminster in 2005-06 following the Queen's Speech
Her Majesty attended the State Opening of Parliament on 17 May 2005, and provided the usual address to peers and MPs which sets out the Government’s programme for what is shaping up to be a bumper 18 month session of Parliament.
A total of 41 bills were announced and there are a further seven draft bills lurking around.
More than two-thirds of the bills in the legislative programme will include provisions which will apply in Scotland. Some of the most significant bills are:
- Company Law Reform
- Consumer Credit
- Immigration and Asylum
- Regulation of Financial Services
- ID Cards
- Equality.
Company Law Reform
This bill is intended to keep the regulatory burden on business to a minimum, particularly for small and medium sized enterprises. It originated with the independent Company Law Review and will focus on four main areas:
- improving and encouraging shareholder engagement in the long-term investment culture;
- ensuring better regulation of business and a “think small first” approach;
- making it easier to set up and run a company; and
- providing a level of flexibility for future business environment.
The bill is also likely to contain provisions to limit the liability on auditors and directors.
The company law white paper will not be implemented by this bill – its consultation ran until 10 June 2005. In that context, the Society’s Company Law Subcommittee has been examining the white paper and had points to raise on the following issues:
- who can be a director;
- auditor liability and audit quality; and
- removal of the requirement to appoint a company secretary.
Consumer Credit
This is a reintroduction of the Consumer Credit Bill which fell on the dissolution of Parliament before the election. This bill will update the Consumer Credit Act 1974, particularly in relation to the licensing of consumer credit businesses, and will provide regulators with more proportionate enforcement powers. Controls on extortionate credit bargains will be enhanced, with consumers being given better access to dispute resolution, and the financial limit below which regulation currently applies will be removed so that all consumer credit will be regulated to the same level. This bill originated in the white paper “Fair, Clear and Competitive – the Consumer Credit Market in the 21st Century”, which was published in December 2003.
The Society’s Consumer Law Subcommittee had little to say about the actual terms of the bill, although some aspects will require amendment, particularly those which give warrant powers in Scotland to JPs rather than sheriffs.
Immigration and Asylum
The Immigration and Asylum Bill will seek to implement the Government’s five-year plan on asylum and immigration. Some features of the bill include the introduction of a “points system” for migrants and the use of fingerprinting and biometrics for inclusion in travel documents.
Employers of illegal immigrants will be subjected to the use of civil penalties and there will be a reviewed appeals system to accompany the introduction of the points system for legitimate migration.
Regulation of Financial Services
The Regulation of Financial Services (Land Transactions) Bill will extend the FSA’s regulatory powers to cover home reversion plans and Islamic banking products.
ID Cards
The bill bringing in identity cards will be reintroduced after being dropped at the election and is likely to prove to be somewhat controversial in the House of Commons, particularly with the Prime Minister’s reduced majority.
A sub-group of the Society’s Human Rights, Privacy and Criminal Law Committees is considering the bill and will provide comment on the technical legal aspects of this measure.
Equality
This bill has also been reintroduced after its fall at the dissolution of the last Parliament. The principal aim of this measure is to create a single equality and human rights body for the United Kingdom. This body, to be known as the Commission for Equality and Human Rights (CEHR), will replace the three existing equality bodies – the Commission for Racial Equality, the Equal Opportunities Commission and the Disability Rights Commission. The CEHR will be charged with preventing discrimination on the grounds of age, religion and beliefs, and sexual orientation.
The bill will seek to introduce a “gender duty” on public authorities requiring them to promote equality of opportunity between men and women. The bill was due to have its second reading on 15 June 2005 and will be examined by the Society’s Human Rights Subcommittee.
If you want further information about any of these measures, or any other law reform issues, please do not hesitate to contact Michael Clancy at the Society – telephone 0131 476 8123 or email moiragoll@lawscot.org.uk.
Michael Clancy, Director, Parliamentary Liaison