§ Mr. LawsI beg to move amendment No. 40, in page 68, line 25, after 'it', insert
'twice within a period of five years'.The aim of the amendment is to clarify one small aspect of the construction industry scheme, and clause 66 in particular. The concern is that subsection (1)(b) 857 appears to be quite draconian, as just one error could lose a subcontractor his certificate. The preferable alternative suggested in the amendment is that an error in two returns in a five-year period would trigger the loss of the certificate. Another alternative is to introduce the concept of some type of serious error, although that introduces subjectivity and presumably the Government would need to define "seriousness" in terms of the amount of money lost.
Subsection (8) provides that, if the gross payment registration is cancelled, the person may not reapply for gross payment status within one year of the cancellation taking effect. The subcontractor must, however, be registered for payment under deduct, on. I hope that the Paymaster General will clarify whether the draconian interpretation of subsection (1)(b) is merited, or whether we are missing something that will satisfy us that our concerns are not justified.
§ Dawn PrimaroloThe hon. Gentleman asks for reassurance about the regulation-making powers. I think that he interprets in an unnecessarily draconian fashion the conditions under which registration would be withdrawn.
The clause provides for regulation-making powers. The regulations, which are subject to discussion, will require the return to contain a declaration to the Inland Revenue. Without wishing to anticipate exactly what the industry may say, I think that I can assure the Committee that the declaration will be subject to the "two strikes" point that the hon. Gentleman made. It will require the contractor to confirm that he has properly considered employment status.
Therefore, I do not think that thy hon. Gentleman need worry. I wonder whether he will consider looking at the regulations when the consultation has been completed. I will happily forward them to him, so that he will be able to reassure himself and those outside the Committee, who clearly have a concern.
§ Mr. LawsI am grateful to the Paymaster General for that clarification. Obviously, there will be an opportunity to look at the regulations to establish precisely how the Government have defined the penalties. With that reassurance from the right hon. Lady, I beg to ask leave to withdraw the amendment.
§ Amendment, by leave, withdrawn.
§ Clause 66 ordered to stand part of the Bill.
§ Clauses 67 to 69 ordered to stand part of the Bill.