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| Consumer Credit Bill | ||
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Mark Lazarowicz (Edinburgh, North and Leith)
(Lab/Co-op): I have sympathy with the objectives of the new clause and with the need to promote greater data sharing on an historical basis. Does the hon. Gentleman agree, however, that we need to be careful about forcing consent, as it were, on members of the public? The Data Protection Act is there for a reason, after all. The new clause would give fairly wide powers to credit reference agencies and other organisations to extract consent from individuals. Perhaps the hon. Gentleman should think about the implications of what could be quite a serious breach of data protection principles. Norman Lamb (North Norfolk) (Lib Dem): I fully accept that. I have thought about the issue, and I realise that there is a balance to be struck. We could simply say that this provision breaches the principles of the Data Protection Act; therefore there is nothing we can do. However, the consequence of doing that would be too serious, and I cannot accept that that is the right approach. So while I fully understand the hon. Gentleman's point, it is my judgment that we should reform the law in the way that I have proposed. The consequence of not doing so could be very serious. At worst, it could be a matter of life or death. We have all come across awful cases of people taking their own lives because of the mess that they have got themselves into. There is a responsibility on all of us to address the problem, and to ensure that judgments on offering credit are made with the fullest possible information available... Mark Lazarowicz: I support the intentions behind the new clause, but may I pick up the point made by my hon. Friend the Member for Rhondda (Chris Bryant)? The new clause allows the use of "any information relating to the . . . financial standing of any debtor".
One could also argue that, if somebody is looking to take out a credit card or to borrow money, the question of whether they are paying thousands of pounds to a spouse is relevant and should be taken into account in assessing their ability to make repayments. Every time that we take out a mortgage or a loan, we are required to tell the lender about our other outgoings. If we are to encourage responsible lending, it is reasonable for lenders to be able to ask such questions. The thrust of the new clause is supported by the industry and by organisations that exist to protect consumers, such as Which? The new clause enjoys support from both sides of the argument, which shows that we are moving in the right direction. Mark Lazarowicz: We all want to reach the right solution, but under the terms of the new clause, people would have to provide not just financial information but any information. For example, they would have to disclose not merely how much they were paying to an ex-spouse, but any personal information that might have a bearing on their financial standing, such as whether or not they have an ex-spouse. The hon. Gentleman's new clause goes too far in seeking to reach an end about which we are all doubtless in agreement.... Mark Lazarowicz: Will the hon. Gentleman tell the House which consumer organisations have given their agreement to the specific wording in the new clause—not the principle of taking action, but the specific wording? Norman Lamb: I have spoken with Which?, but I cannot, in all honesty, rattle off a list of consumer organisations that endorsed the particular wording. I have carefully considered it and, for what it is worth, I am lawyer—[Interruption.] I understand that that causes a problem for the Minister. I believe that the provision is proportionate and that it is right to put it to the vote. Mark Lazarowicz: The hon. Gentleman is speaking to the House with the carefully constructed words of a lawyer. He answered my earlier intervention, but it now seems that consumer organisations have not endorsed the specific wording. That is the whole point, because it is the specific wording that is causing problems today. David Cairns: I thank my hon. Friend for his kind words. I am aware of the project that he mentions, and I congratulate OPD on winning that order from the Portuguese. This is a Scottish success story, in that we have developed the technology that is being purchased abroad. Of course, the project would not have reached this stage had it not been for the investment of a significant amount of taxpayers' money. OPD has benefited from £3.2 million of such investment from the Department of Trade and Industry's technology programme, and it is benefiting from the investment of £6 million in the European marine energy centre in Orkney, where such technology is being trialled. In addition, a £50 million fund is to be set aside, which OPD can bid into to develop marine energy further. Taken together, that demonstrates that the Government not only are committed to renewable energy but are making resources available to make that happen in Scotland and elsewhere. |
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| 14th July 2005, Column 984-995 |