I am very pleased to open the stage 1 debate on the Consumer Scotland Bill. Although it is a small bill, it has enormous potential to benefit the people of Scotland.
In 2015, ahead of the devolution of consumer advocacy and advice powers, the Scottish Government formed a working group on consumer and competition policy to explore how Scotland could best use its new powers for the good of consumers here in Scotland. The group brought together experts from across Scotland and the United Kingdom, from trading standards, Citizens Advice Scotland, Which? and others, and its work was supported by a series of expert panels drawn from regulators, academics and public services. At this stage, I want to put on record my sincere thanks to those who willingly gave their time and effort to the work of that group. As a result of that activity, the review of Scotland’s consumer protection landscape was comprehensive and informed by people who understand the history of consumer protection and its current challenges.
The group’s key recommendation was the establishment of a dedicated consumer champion that would speak up for consumers and represent their interests to policy makers, regulators and industry. That brings us to today’s debate, in which we are debating the Consumer Scotland Bill. Since that recommendation, the idea of consumer Scotland has been tested rigorously, but the expectations have remained consistent. People expect a body that can unite a fragmented landscape, a body that can make better use of data to identify and tackle harm, and a body that can focus on the most complex problems and find solutions.
I believe that, as well as establishing such a body, the bill goes further by establishing a consumer duty that will increase the consideration that is given to consumers by relevant public authorities.
Before I talk about the bill in more detail, I offer my thanks to the Economy, Energy and Fair Work Committee for its scrutiny at stage 1. I am pleased that the committee’s report recognises the need for a new consumer body, endorses the general principles of the bill and recommends that the Parliament agree to them. I have provided a written response to the committee on its recommendations and I look forward to further discussion of the report and the bill this afternoon.
I thank those who gave evidence to the committee, particularly those who have been instrumental in testing and developing the proposals for consumer Scotland. We have reached this position as a direct result of that. I am particularly grateful to those who took the time to respond to our pre-legislative consultation or who came to our consultation events. The vast majority of respondents agreed that consumer Scotland was needed and that our proposals for the body and the duty could add genuine value to the current system. Those views were replicated in response to the committee’s call for evidence.
The process of scrutinising and testing our proposals and thinking will contribute to refining and enhancing the bill, which is exactly what our legislative process is for.
The case for consumer Scotland has been made many times, but I will set it out again today. In proposing the body, I recognise that we operate in a landscape in which organisations already work hard to protect consumers. They do invaluable work and we owe them our thanks. However, we also know that the consumer protection landscape is complex and that, since the abolition of Consumer Focus Scotland, there is no longer a single organisation that can take a big-picture view of the issues that are faced by consumers in Scotland. Neither is there an organisation to co-ordinate responses to consumer harm so that limited resources are used most effectively. That is the gap that we want consumer Scotland to fill.
The bill provides the legal framework to ensure that consumer Scotland has the powers and structures to operate effectively, and it establishes it as a body with three key objectives: to reduce harm to consumers, to increase consumer confidence, and to increase the extent to which public authorities take account of consumer matters. To do that, the body will primarily carry out investigations into the most serious issues of consumer harm, using rigorous evidence gathering and analysis to identify the causes of consumer harm and recommend solutions to Government, regulators and industry.
Consumer Scotland’s work beyond that will see increased collaboration across the landscape and ensure that consumers have access to high-quality consumer advice, without the body itself becoming a front-line advice organisation.
The bill is deliberately high level and enabling and does not seek to prescribe how the body will carry out its functions. That will ensure that consumer Scotland’s senior staff and board will have a direct role in shaping and prioritising its work.
I recognise that the committee has highlighted that that flexibility has resulted in some concern that the body’s exact role is not fully understood. Although I continue to believe that the body should have the space to develop its operational activity, I am very clear that it must work with existing organisations and add value rather than duplicate what is already there. I have therefore committed to providing further detail on the form and functions of consumer Scotland, without, of course, restricting its scope to independently establish its own priorities and relationships. I offer assurance that, from day 1, consumer Scotland will be tasked with building strong relationships with consumer organisations, and that its work programmes and scope of activity will be developed with their input. That commitment is reflected in the bill, which makes collaboration fundamental to consumer Scotland, both in its general work and, specifically, in developing its work plans.
Following the committee’s report, I will strengthen those provisions. As the bill is currently drafted, the body can take account of any organisation with a consumer interest, but it is required to take account only of public bodies with “similar functions”. The committee, and many of those who gave evidence, correctly pointed out that there are, of course, many organisations in Scotland, mainly in the third sector, that work to protect consumers. The committee therefore recommended—and I agree—that consumer Scotland should be required to consider the work of other bodies, beyond those in the public sector, with the same or similar functions as consumer Scotland. We will lodge an amendment to address that.
The committee made a number of other recommendations, and I committed in my written response to the committee to giving detailed consideration to them all. However, I will highlight two more in this opening speech.
First, the Scottish Government accepts the committee’s recommendation that the bill should revisit the definition of vulnerability to ensure that it reflects that vulnerability can take many forms and that it is often about context and not simply the characteristics of individual consumers. Although the bill sets out that the examples provided are illustrative and not exhaustive, it is clear that the text has caused concerns, so I have committed to exploring an amended definition to assuage those concerns. I will be very happy to work with committee members, and indeed any member with an interest, to work out how best to achieve that.
Secondly, the committee noted that many of the challenges that consumers face also apply to people who are running small businesses. It recommended an amendment that will broaden the definition of a consumer to address those concerns. As the Minister for Business, Fair Work and Skills, I am very keen to support Scotland’s businesses in any way that I can. I commit to ensuring that the concerns of small businesses are addressed. I will be very happy to work with the committee on the best way to achieve that.
Establishing the legislative framework is only one part of the journey to deliver consumer Scotland. Significant practical work will also be needed to ensure that the body is ready by April 2021. If the Parliament agrees to the general principles of the bill this evening, that activity will increase. As a first step, we will begin the appointments process for the new chair to ensure that the future leaders of the body are able to take decisions on the body’s work as soon as possible. More important, it will mean that the leaders can be involved in building the relationships with other consumer-focused organisations that will be vital to the body’s success.
We will also take practical steps to ensure that the consumer duty we have proposed has a meaningful impact. We are the first nation in the United Kingdom to develop and propose such a duty, and we have done so in response to the support that was demonstrated through the consultation on a consumer body for Scotland. Together, the duty and the body will ensure that consumers are protected from the unintended consequences of policy making, and that their potential to drive change is recognised and encouraged.
As with the body, the duty will be developed collaboratively. I am aware of the danger that it becomes a token gesture or another burden for public authorities to deal with. That is, of course, something that I want to avoid, and it is why the bill requires that the authorities to whom it potentially applies must be consulted. I will ensure that that consultation is meaningful and that it will allow those who are affected to shape how the duty works in practice.
Establishing a new consumer body and a consumer duty for Scotland is both an opportunity and a challenge. It is an opportunity to put consumer fairness more squarely at the centre of policy and regulatory decision making, and it is a challenge for politicians, regulators and business leaders to respond positively to that.
I will continue to work across the chamber, especially with the committee, to ensure that the legislation does all that it can to make that happen and that it establishes a body and a duty that will drive real change, both for individual consumers and for the organisations that work to protect them.
I recognise that the committee raised other issues that I have not touched on in opening today’s debate. I have no doubt that they will come up in the course of our deliberations today, and I will try to respond in my closing speech. However, I make this offer here and now: if any member wants to discuss how to improve the bill, I will gladly meet them to do so.
We have an opportunity to improve the position of consumers in Scotland. We have the opportunity to do that collectively, and I hope that we will take that opportunity by passing this bill at stage 1.
I move,
That the Parliament agrees to the general principles of the Consumer Scotland Bill.