Consumers, Estate Agents and Redress Act 2007

Funding

31(1)After section 39 of that Act insert—

“39ALicences and the new arrangements

(1)The conditions of a licence may require the payment by the licence holder of sums relating to any of the expenses mentioned in subsection (2).

(2)The expenses within this subsection are—

(a)the appropriate proportion of the expenses of the Council (including expenses which relate to its establishment but not expenses within paragraph (c));

(b)the appropriate proportion of the expenses of the Secretary of State which relate to the establishment of the Council;

(c)any expenses of the Council, the Secretary of State or the Consumer Council for Postal Services which relate to a transfer scheme made in respect of the Consumer Council for Postal Services under section 35(2)(a) or (7) of the Consumers, Estate Agents and Redress Act 2007;

(d)the expenses of the Secretary of State which relate to the abolition of the Consumer Council for Postal Services;

(e)the expenses of the Office of Fair Trading which relate to the expansion of an OFT scheme to enable it to cater for postal services consumers;

(f)the appropriate proportion of the expenses of the Office of Fair Trading on, or in connection with, the support of any OFT scheme.

(3)The “appropriate proportion” of any expenses means such proportion of the expenses as the Secretary of State considers is reasonable having regard to—

(a)in the case of expenses within subsection (2)(a) or (b), the functions exercisable by the Council in relation to postal services consumers, and

(b)in the case of expenses within subsection (2)(f), the functions under the OFT scheme which are exercisable in relation to those consumers.

(4)The Commission may, in accordance with this section, modify any condition included in a licence by virtue of section 39 where the Commission considers it necessary or expedient to do so in consequence of, or of preparations for—

(a)the establishment of the Council, or

(b)the abolition of the Consumer Council for Postal Services.

(5)The Commission may, in accordance with this section, make such incidental or consequential modifications of the other conditions of a licence, as it considers necessary or expedient in consequence of, or of preparations for, an event mentioned in subsection (4)(a) or (b).

(6)Before modifying the conditions of a licence under subsection (4) or (5) the Commission must consult the licence holder.

(7)The powers of the Commission under subsection (4) or (5) may not be exercised after the end of the period of 2 years beginning with the commencement of those subsections.

(8)The Secretary of State may give directions to the Commission for the purpose of securing that sums relating to any of the expenses mentioned in subsection (2) are included in the sums payable by virtue of conditions in licences and the Commission must comply with any such direction.

(9)In this section—

• “consumer” has the same meaning as in Part 1 of the Consumers, Estate Agents and Redress Act 2007 (see section 3 of that Act);

• “postal services consumers” means consumers in relation to relevant postal services (within the meaning of section 41);

• “OFT scheme” means any public consumer advice scheme supported by the Office of Fair Trading.”