Regulatory Enforcement and Sanctions Bill [HL]

The LBRO’s ability to delegate its arbitration functions under paragraph 9 of Schedule 4 is critical to the success of the scheme. The LBRO will be a relatively small public body with a wide-ranging scope. I am sure that Members of the Committee will have had a quick glance at Schedule 3 and will have seen the range of regulatory issues that its work will cover: if I take the simple A to Z approach, from accommodation agencies to zoo licensing. Arbitration cases may be referred to it under any of these headings, and it is unlikely that the LBRO will have the right in-house expertise to deal with all such matters. For example, a chemicals firm may refer a matter to the LBRO that calls for a highly specialised knowledge of environmental science or of the particular issues raised by a pollutant in a very specific ecosystem. In such cases, the LBRO may wish to delegate the arbitration function to persons or bodies with the appropriate expertise—in the case I have given, perhaps to the Environment Agency. The Committee can be sure that the LBRO will be under a public law duty not to delegate its functions irrationally. We can consider the points the noble Baroness has raised to ensure that she and the public get that assurance, but, if we removed the delegation power at paragraph 9, that would have serious implications for the viability of the scheme and how it works in practice. I will ask for the noble Baroness’s points to be considered in order to give her that comfort, but removing delegation would, frankly, render the scheme unworkable.