Local Government (Wales) Measure 2009 (Consequential Modifications) Order 2010

My Lords, some Members of the Committee may be surprised to find me here—and, indeed, I am surprising myself. The reason for my presence is that my noble friend Lord Glentoran has been delayed in a meeting to deal with the somewhat fraught situation in Northern Ireland. He forewarned me that that might happen and asked me to stand in his place. As the Explanatory Memorandum notes, this is the first order under Section 50 of the Government of Wales Act 2006, which provides for changes necessary in consequence of an Assembly measure being passed. This is yet another historic first in Welsh devolution, and a fairly significant one, because what is provided for here is a change in the content of Schedule 8 of the original 2006 Act as a result of an Assembly measure. It is a curious boomerang effect, which some of us may think more curious as we consider the possible unintended consequences. Am I right in thinking—I believe that I am—that out goes the "best value" principle of the Local Government Act 1999 and that its place is taken by an "improvement" criterion, which is very much looser and is not confined to "economy, efficiency and effectiveness"? This is clearly the case, and it is confirmed by paragraph 7.1 of the Explanatory Memorandum accompanying the order. I have not seen a copy of the Assembly measure, so I must ask whether improvement is defined there, and how. Without definition, improvement can mean all sorts of different things to different people and authorities. Definition is necessary to achieve a measure of consistency between authorities of the same kind. I would have thought that that was desirable. I shall be very brief in my comments on article 2, amending the 2006 Act so that the Auditor-General retains income from fees and does not have to pay them into the Welsh Consolidated Fund. How will the use and expenditure of these fees be accounted for? It is a fair and an important question. Auditing systems are just as fallible as any other, and financial integrity and accountability must have a very high priority, at all times and in all organisations, especially those supported by taxpayers’ money. The same article 2 amends the Act, ""so as to prohibit the Audit Committee of the National Assembly … from examining any … of the annual estimate of the income and expenses of the …. Auditor General"," to quote the Explanatory Memorandum. Why should this prohibition be required? I am mystified, and surprised that the Wales Audit Office appears to have agreed to this restriction on its powers because it is content that the order be made. We ought to have a clear answer about why the exclusion of the Wales Audit Office is included because unless we do, people will read between the lines with suspicion in their hearts, and I shall not blame them.