Constitutional Reform and Governance Bill

I would argue that we have kept up the momentum. It is essential that this House is able to deal with disciplinary issues effectively. Last year, the Privileges Committee concluded that this House did not have the powers it needed to expel Peers, or to withhold a writ of summons from a suspended Member. In order to ensure that this House has a robust disciplinary regime to deal with misconduct, Part 5 includes important measures which will, among other things, provide the House with the power to suspend or expel a Peer; override a writ of summons, or cause one not to be issued; and provide that Peers are to be disqualified from the House after conviction for a serious criminal offence, or being subject to a bankruptcy restrictions order. Part 5 also allows Peers to resign, a provision supported by the Public Administration Select Committee. Peers who have left the House may, if they wish, disclaim their peerage. A consensus is forming around the need to address the growing size of your Lordships’ House. With over 700 Members, this House is second in size only to the Chinese National People’s Congress. Indeed, a recent report by the Commons Public Administration Select Committee, entitled Goats and Tsars, expressed support for allowing Peers to resign from this House. In all other aspects of public life we accept that a person should be allowed to resign from office, and the Government believe that Members of this House should be able to resign if they no longer intend to sit and vote. In advance of full reform, Part 5 will provide this House with the powers it needs to operate effectively and for us to address the growing size of the House. I turn to Part 6 and tax status. Part 6 provides that MPs and Lords Temporal are to be deemed resident, ordinarily resident and domiciled in the United Kingdom for the purposes of income tax, capital gains tax and inheritance tax. As a result, they will be liable to pay these taxes on their worldwide income, gains and assets and will be unable to access the remittance basis of taxation. The Government are clear that Members of this House and the other place should be liable to pay the same taxes as the majority of taxpayers in the UK. I am glad to say that this is one of the many issues in the Bill that enjoys cross-party support. My noble friend the Leader of the House wrote to all noble Lords on 29 January, setting out how the new regime will apply to incumbent Members of the House. While MPs who do not wish to be deemed for tax purposes may stand down, we recognise that the situation is different for incumbent Members of your Lordships’ House. To this end, Part 6 includes transitional arrangements for Peers who are not prepared to accept deemed status. I turn to public order. Part 7 sets out a clear legal framework for the participation in, and policing of, demonstrations around Parliament Square, ensuring that Parliament is able to function while at the same time allowing people to exercise their basic democratic rights to assemble and protest peacefully. This has been informed by wide consultation with the police, the House authorities and the public. The Bill repeals Sections 132 to 138 of the Serious Organised Crime and Police Act 2005, which regulate demonstrations in the vicinity of Parliament. This proposal has received widespread public support. We take seriously the need to safeguard the proper operation of Parliament and the need to maintain access to the Palace of Westminster. The powers in Schedule 9 allow senior police officers to give directions imposing conditions on organisers or those taking part in processions or assemblies within a designated area around Parliament. Part 8 concerns human rights claims brought against the devolved Administrations and confirms that such claims can be brought within 12 months. This part of the Bill has been agreed with the devolved Administrations, and the Scottish Parliament has given its consent in line with the Sewel convention. Indeed, the approach set out in this part of the Bill was agreed by the House itself when it approved an order under the Scotland Act in the previous Session. Part 9 deals with courts and tribunals. It and Schedule 10 include a range of measures to strengthen the independence of the judiciary and further improve the appointments process. For example, statutory salary protection is extended to various judicial office-holders. Part 9 also removes the Prime Minister from the process of appointing Supreme Court justices. Recommendations to the Queen will in future be made by the Lord Chancellor, following work done by the selection commission. Part 10 deals with national audit. On 6 March 2008 the all-party Commons Public Accounts Commission published a report on the future governance of the National Audit Office, and Part 10 implements its recommendations. It modernises the NAO’s governance arrangements, to ensure appropriate internal controls, while at the same time safeguarding the independence of the Comptroller and Auditor-General. The Public Accounts Commission has strongly endorsed these provisions. Part 10 also includes a framework power to enable the National Assembly for Wales to legislate for the governance arrangements of the Wales Audit Office. Part 11 permits the Treasury to issue directions about the way that government departments prepare estimates. It allows for the consolidation of NDPBs and other central government bodies into supply estimates and departmental resource accounts. This will provide greater consistency and transparency of public spending data that are presented to Parliament by aligning the spending of NDPBs with the existing budgetary treatment. The Bill also allows Welsh Ministers to make equivalent provision in Wales. I turn to Part 12. In line with the Government’s response to the review of the 30-year rule, chaired by Paul Dacre, the Bill provides for a transition to a 20-year rule. This rule governs the point at which public records of historical significance are transferred to the National Archives or to other places of deposit. In addition, certain exemptions under the Freedom of Information Act 2000 will cease to have effect after 20 years, rather than 30 years as at present. The Bill also provides for enhanced protection for limited categories of royal information, to protect the constitutional conventions surrounding the monarchy. Part 13 includes provisions to clarify the effect of the Electoral Administration Act 2006 in relation to the eligibility of Commonwealth and Irish citizens to be Members of this House or holders of other public offices, in line with the Government’s Written Ministerial Statement of 15 December. I hope that the inclusion of this provision will reassure Members who have been concerned about this issue. Clause 91 in this part requires returning officers to take reasonable steps to ensure that the counting of votes in parliamentary elections begins within four hours of polls closing. This part of the Bill also contains provisions to improve the regulation of referendums, including the AV referendum proposed in Part 3. In that regard, the House will wish to note that Clauses 88 and 89 respond to recommendations from the Electoral Commission. This is an important Bill; it has had a long gestation, and many of its provisions—