Regulatory Enforcement and Sanctions Bill [HL]

Let me try to do a bit better than before, and I will move forward a bit. The point of Clause 7 is as follows. We understand the concerns relating to it. It allows the LBRO to give directions to one or more local authorities to comply with guidance that it, or another body, such as a national regulator, has issued. The power to direct is intended as a backstop power that might be used where, for example, one or more local authorities persistently acts with disregard for a particular piece of guidance and that disregard is, frankly, detrimental to business or the public or, as could often happen, both. It is not intended that the LBRO will be directing local authorities as a matter of routine, and its use of this power is subject to important controls. Let me set those out. It may only use the power to direct a local authority: first, with the consent of the Secretary of State, or Welsh Ministers where applicable; secondly, after consultation with any relevant regulator; and, thirdly, after consultation with such other persons as the LBRO considers appropriate. We believe that that will include local authorities, LACORS and professional bodies such as the Trading Standards Institute and the Chartered Institute of Environmental Health. The Committee will know that the Government have accepted the recommendation that that should be subject to a statutory instrument process where directions apply to more than one local authority. Our view is that these provisions are vital in enabling the LBRO to achieve its objective and that sufficient safeguards are in place—I know that this is what the noble Viscount will be looking for—to ensure that the LBRO uses its power to direct compliance with guidance in a responsible manner. The Government recognise that there are legitimate anxieties about the use of powers of direction by public bodies at the centre in the context of local democracy. I suspect that that is what the noble and learned Lord, Lord Lyell, and the noble Viscount, Lord Eccles, are getting at in their questions. It is easy to caricature this debate as one of central versus local government, but the LBRO needs to be able to address the particular issues facing regulatory services which are, frankly of critical national importance but, perhaps too often, although certainly not always, have an extremely low priority for local authorities in practice. When we were discussing the composition of the LBRO board early on Monday afternoon, I talked about the range of stakeholders potentially involved. I know that I am taking up the Committee’s time, but this is an important group, so it may be helpful to review its attitude to the question under discussion. Our consultation produced an overwhelming view from business that the LBRO would need significant powers of compulsion beyond those of merely issuing guidance. Perhaps that is not very surprising. But business is not alone in that view; many of those who understand the sector well, and have its best interests at heart, take the view that a small, strategic body with significant powers is critical to the future success of our local regulatory services. I refer the Committee to the briefing on the Bill provided by the National Consumer Council, which has expressed its support for the LBRO’s power to direct, urged the Government to ensure that the LBRO is provided with sufficient discretion to use the power effectively, and stated that, "““LBRO cannot secure consistency in practice if Local Authority Regulators are free to chose to ignore its guidance””." There is also briefing from the Trading Standards Institute, which believes that a power to make guidance compulsory—precisely what we have drafted—will be necessary in some cases. It is right that where legislation seeks to give a body this sort of direction power it should be explained as fully as it can be; but I pray in aid the support of experts in this field, not least people involved in local government, who think that this cannot work unless there is some backstop power of direction. I hope that I have gone some way to answering the questions that have been raised. On Question, amendment agreed to.