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Clause 2

Compensation in respect of suspension
Amendments made: 11, in clause 2, page 3, line 13, after ‘Registrar’, insert
‘decides not to refuse the application for an extension of the person’s registration or (as the case may be)’.
This amendment would extend the circumstances in which compensation may be payable to those where the Registrar suspends an instructor pending a decision in respect of an application made under s127(1) of the RTA 1988, but then decides not to refuse that application.
Amendment 12, in clause 2, page 3, line 16, after ‘Registrar’, insert
‘to refuse the application for an extension of the person’s registration or (as the case may be)’.
This amendment would extend the circumstances in which compensation may be payable to those where the Registrar suspends an instructor pending a decision in respect of an application made under s127(1) of the RTA 1988 and subsequently decides to refuse that application, but the instructor successfully appeals that decision.
Amendment 13, in clause 2, page 3, line 19, after ‘Registrar’, insert
‘to refuse the application for an extension of the person’s registration or (as the case may be)’.—(Paul Clark.)
This amendment would limit compensation so that, where the Registrar decides to refuse the instructor’s application under s127(1) of the RTA 1988 and that decision is successfully appealed after taking effect, it may only relate to any suspension imposed in relation to the application.
Paul Clark: I beg to move amendment 14, in clause 2, page 3, line 41, leave out from ‘may’ to end of line 44 and insert ‘appeal to the First-tier Tribunal’.
This amendment changes the venue for appeals against compensation awards from the Transport Tribunal to the First-tier Tribunal, which is established under the Tribunals, Courts and Enforcement Act 2007.
The Chairman: With this it will be convenient to discuss the following: amendment 15, in clause 2, page 3, line 45, leave out ‘Transport Tribunal’ and insert ‘First-tier Tribunal’.
See Member’s explanatory statement for amendment 14.
Amendment 16, in clause 2, page 3, line 45, leave out ‘they consider’ and insert ‘it considers’.
See Member’s explanatory statement for amendment 14.
Amendment 17, in clause 2, page 4, line 1, leave out ‘consider’ and insert ‘considers’.
See Member’s explanatory statement for amendment 14.
Amendment 22, in schedule 1, page 9, line 11, leave out from ‘may’ to end of line 14 and insert ‘appeal to the First-tier Tribunal’.
See Member’s explanatory statement for amendment 14.
Amendment 23, in schedule 1, page 9, line 15, leave out ‘Transport Tribunal’ and insert ‘First-tier Tribunal’.
See Member’s explanatory statement for amendment 14.
Amendment 24, in schedule 1, page 9, line 15, leave out ‘they consider’ and insert ‘it considers’.
See Member’s explanatory statement for amendment 14.
Amendment 25, in schedule 1, page 9, line 17, leave out ‘consider’ and insert ‘considers’.
See Member’s explanatory statement for amendment 14.
Paul Clark: I have the pleasure of speaking to all those amendments in the name of the Government. The Bill provides for compensation to be paid to suspended driving instructors in certain circumstances. Where an affected instructor disputes the Secretary of State’s decision on whether they are entitled to compensation, or what the level of compensation should be, the Bill permits an appeal to the transport tribunal. The amendments are necessary to change the body that will decide appeals regarding compensation under the Bill from the transport tribunal to the first-tier tribunal created under the Tribunals, Courts and Enforcement Act 2007. That is in consequence of the intended transfer of the transport tribunal’s functions to the new tribunal in the near future.
Mr. Goodwill: I have one brief question on which the Minister might want to comment. When we dealt with the money resolution, we talked about a figure of five or six cases a year in which compensation might be payable and around £60,000 in total to include both the administration and the compensation. While it is fairly easy to identify a figure for loss of income, does he have any concerns that a reputation figure might well be inflated? Is he content that the figures we are talking about are likely to be the sort of figures settled upon in such cases?
Willie Rennie: I accept the amendments. It is really about a name change. The tribunals Act has changed the name of the tribunal from the transport tribunal to the first-tier tribunal, so it is a logical update. The compensation is necessary, but it only covers the period when the person has been suspended, not the period after the termination or any other effects, apart from reputation. The number of cases has been estimated at five or six, but I think that that is at the upper level, because we are not dealing with a lot of people who have been convicted and go on to be removed as a result.
I leave the Minister to respond on what he thinks is an appropriate level of compensation. That is difficult to judge, because it depends on what the reputation of the person concerned was before, which will have to be considered. It is appropriate to have a compensation scheme because Governments, although it is difficult to believe, sometimes get it wrong and we do not appropriately suspend people all the time.
Paul Clark: First, in response to the question from the hon. Member for Scarborough and Whitby, I think that the figure of five or six cases a year that has been indicated is at the upper end of the scale. Indeed, members of the Committee have indicated that that would act as a deterrent to anyone who might be marginally in that position. Secondly, the estimates we have made give a figure in the region of those figures we have been talking about.
Mr. Knight: My reading of subsection (4) is that the Minister may, in due course, specify a scheme whereby certain areas of compensation are excluded. In other words, it may well be that the Minister’s ultimate scheme does not allow for compensation for loss of reputation. Can he confirm that? Furthermore, as the scheme is not actually set out in the Bill, can he give an undertaking that, when he is putting it in place, he will write to every member of the Committee to give us details about its precise terms?
10 am
Paul Clark: On that point, the scheme makes provision for potential loss of earnings and an effect on reputation. The right hon. Gentleman is right that the Bill allows the details of the scheme to be drawn up subsequently. Certainly, I will give the undertaking to write to members of the Committee with details of the scheme.
Amendment agreed to.
Amendments made: 15, in clause 2, page 3, line 45, leave out ‘Transport Tribunal’ and insert ‘First-tier Tribunal’.
See Member’s explanatory statement for amendment 14.
16, in clause 2, page 3, line 45, leave out ‘they consider’ and insert ‘it considers’.
See Member’s explanatory statement for amendment 14.
17, in clause 2, page 4, line 1, leave out ‘consider’ and insert ‘considers’.
See Member’s explanatory statement for amendment 14.(Paul Clark.)
Clause 2, as amended, ordered to stand part of the Bill.

Clause 3

Exemptions from prohibitions concerning registration
Paul Clark: I beg to move amendment 18, in clause 3, page 4, line 15, after ‘exercise’, insert ‘(whether in individual cases or otherwise)’.
This amendment would confirm that regulations providing for exemptions from prohibitions concerning registration may give the Registrar a discretion as to whether the exemption should apply in individual cases (or a discretion in relation to persons more generally).
The Chairman: With this, it will be convenient to discuss amendment 19, in clause 3, page 4, line 26, at end insert—
‘(5) Regulations made by virtue of this section may, in particular, make provision for the payment of fees.’
This amendment would permit fees to be charged in respect of exemptions from prohibitions concerning registration.
Paul Clark: As I indicated earlier, schedule 6 to the Road Safety Act 2006 will make significant changes to the way in which trainee driving instructors are regulated. In particular, the current licensing system will be abolished and a new system of exemptions from regulation will be introduced. That is intended to provide for a more flexible system of qualification to be prescribed by the Driving Standards Agency. However, one effect is that it may reduce the registrar’s ability to regulate trainee instructors, as it does not explicitly envisage exemptions being granted on an individual basis so that the registrar may grant, suspend or remove exemptions from individual applicants wishing to become driving instructors.
The exemptions from registration are to be introduced by regulation. Clause 3 elaborates on the circumstances where such exemptions might apply. It envisages that the registrar might exercise his discretion over who can and who cannot take the benefit of an exemption and that the regulations may include a system for withdrawal of exemptions as well as a system of appeals and compensation in connection with such withdrawals.
The group of amendments enables the registrar to exercise his discretion regarding exemptions from registration in respect of individual and other cases, when provisions in schedule 6 to the 2006 Act are commenced. In particular, they permit the registrar to consider not only class exemptions from the requirement to be registered before giving paid driving instruction but individual applications for exemption, so that the registrar retains complete control over who can give paid instruction once the new regime is commenced. They also enable the registrar to charge a fee in connection with the exemptions, reflecting the extra administrative overhead that will be involved. That permits a fee to be charged in much the same way that there is currently a charge for granting training licences.
Willie Rennie: I am grateful to the Minister for introducing the group of amendments. He has identified a potential weakness in the Bill, because my original Bill did not include trainees. That is a large number of people who could, potentially, teach for ever—they do not have to become fully fledged approved driving instructors and can remain trainees for a very long time, until they take that final test. Therefore, there was a potentially large loophole for people who might want to subvert the system. I am grateful to the Minister for tabling the amendments.
We are caught between the old system of training registration and the new one, which is more of a block exemption. The clause will eventually straddle both systems and allow a proper supervisory arrangement to cover trainees. It also introduces a charge, which was already there under the old system, so there is no change. The Bill allows a charge to be introduced so that we can fund the supervision of the trainees, so that they cannot subvert the system. I am grateful to the Minister for tabling the amendments. I shall close my remarks there.
Amendment agreed to.
Amendment made: 19, in clause 3, page 4, line 26, at end insert—
‘(5) Regulations made by virtue of this section may, in particular, make provision for the payment of fees.’ —(Paul Clark.)
This amendment would permit fees to be charged in respect of exemptions from prohibitions concerning registration.
Clause 3, as amended, ordered to stand part of the Bill.
Clauses 4 to 7 ordered to stand part of the Bill.

Schedule 1

Transitory amendments to existing regime
Amendments made: 20, in schedule 1, page 7, line 13, at end insert—
‘2A After subsection (8) of section 127 of the Road Traffic Act 1988 (c. 52) (extension of duration of registration) insert—
“(9) Sections 128(7A) to (7G) and 131A apply in relation to suspending a person’s registration in connection with an application under subsection (1) above as if the references in sections 128(7A) to (7G) and 131A to—
(a) a notice under section 128(4) were references to a notice under subsection (5) above, and
(b) the removal of the person’s name from the register were (or, in the case of section 128(7E)(d), included) references to the refusal of the person’s application for the retention of the person’s name in the register.”’.
This amendment would enable the Registrar to suspend a person’s registration while considering an application under s127(1) of the RTA 1988 (as it currently has effect, without the substitution of that section by Schedule 6 to the Road Safety Act 2006). Provisions relating to compensation would also apply.
Amendment 21, in schedule 1, page 8, line 8, at end insert—
‘4A After subsection (8) of section 129 of the Road Traffic Act 1988 (c. 52) (as it has effect without the omission of that section by Schedule 6 to the Act of 2006) (licences for giving instruction so as to obtain practical experience) insert—
“(9) Sections 130(7) to (13) and 131A apply in relation to suspending a person’s licence in connection with an application for a new licence in substitution for a licence current at the date of the application as if—
(a) the references in sections 130(7) to (13) and 131A to—
(i) a notice under section 130(3) were references to a notice under subsection (7) above,
(ii) the revocation of the licence were (except in section 130(11)(d)) references to the refusal of the person’s application for a new licence, and
(iii) the decision not being in effect were references to the decision not being in effect because the licence has not expired, and
(b) section 131A(3), and the words “(whether or not the Registrar’s decision has taken effect)” in section 131A(2)(b), were omitted.”’.
This amendment would enable the Registrar to suspend a person’s licence while considering their application for a new licence in substitution for a current licence under s129 of the RTA 1988 (without its omission by Schedule 6 to the Road Safety Act 2006). Provisions relating to compensation would also apply.
Amendment 22, in schedule 1, page 9, line 11, leave out from ‘may’ to end of line 14 and insert ‘appeal to the First-tier Tribunal’.
See Member’s explanatory statement for amendment 14.
Amendment 23, in schedule 1, page 9, line 15, leave out ‘Transport Tribunal’ and insert ‘First-tier Tribunal’.
See Member’s explanatory statement for amendment 14.
Amendment 24, in schedule 1, page 9, line 15, leave out ‘they consider’ and insert ‘it considers’.
See Member’s explanatory statement for amendment 14.
Amendment 25, in schedule 1, page 9, line 17, leave out ‘consider’ and insert ‘considers’.—(Paul Clark.)
See Member’s explanatory statement for amendment 14.
Question proposed, That the schedule, as amended, be the First schedule to the Bill.
 
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