Public Bodies Bill [HL]

I thank the noble Lord, Lord Whitty, for initiating this debate with his amendments as it is agreeable to return to the way in which the Bill operates, having discussed individual bodies at length. The noble Lord gave very good value, as he always does. I thank all noble Lords who have participated. The noble Baroness, Lady Hayter, drew the attention of the noble Lord, Lord Borrie, and, indeed, that of my noble friend Lord Newton of Braintree, to Clause 8. We are still looking at Clause 8 as the Delegated Powers and Regulatory Reform Committee asked us to do so. The noble Lord, Lord Rosser, has a slightly jaundiced view of the way in which the Government have established dialogue on the Bill. We are genuinely seeking to introduce a necessary vehicle to deal with the reform of public bodies. I think that there is general agreement on that across the Committee. The previous Government had such a policy and we seek to pursue it in our turn. The group of amendments in the name of the noble Lord, Lord Whitty, would require that, before laying an order under Clauses 2 to 6, a Minister must lay before Parliament a report setting out the reasoning for any change in the status of a body or bodies he or she proposes to make, with the said report being subject to debate and approval by resolution in each House. Amendment 119 would introduce an additional requirement for a report where an order affects a body or office within a particular set of categories. I hope the noble Lord will agree with that summary of what he is seeking to do. The Government agree that Parliament should have access to appropriate information regarding any proposals to use powers under the Bill. The government amendments that we have introduced in Committee reflect this. In the first instance we have sought, along with Peers from across the House, to introduce a new requirement for Ministers to consult in relation to proposed changes under the Bill. Secondly, government amendments have been tabled which would require any draft instrument laid before Parliament to include an explanatory document which includes details setting out the reasoning behind the order. These requirements give Parliament ample opportunity to scrutinise the reasoning behind the laying of an order. Amendment 113 in the name of the noble Lord, Lord Whitty, would effectively require an additional affirmative resolution process for a report concerning a proposed order before the order itself could be made. This amendment risks Parliament being asked to debate a report on a proposed order prior to the consultation on the said order having been concluded. Additionally, it would create a new burden on Parliament itself and on departments as they seek to deliver on the reform package to which the coalition Government are committed. Amendment 119 would require a Minister making an order affecting a group defined as an economic regulator or a consumer body to place a report before Parliament setting out the reasons for the proposals in the context of that group of bodies as a whole. The Government, of course, recognise that changes to public bodies should not be considered in isolation. I assure the noble Lord that this was not the case for those reforms set out by my right honourable friend the Minister for the Cabinet Office on 14 October. In this instance all reforms were agreed at Cabinet level and involved extensive dialogue between departments. I particularly appreciate the spirit of the noble Lord’s amendment in relation to relatively discrete groups of bodies such as the so-called economic regulators, where a shift in regulatory practice for one could potentially impact on regulatory stability across the sector, and where it is therefore right that Government act in a proportionate, joined-up manner. As I said at Second Reading—I am happy to reiterate it—the Government intend the economic and regulatory functions of bodies such as Ofcom and Ofgem to be excluded from the powers of the Bill for precisely this reason. I do not believe that it is necessary to place such a requirement in the Bill, because the Government expect Ministers to consider such issues as a matter of course and because our Amendment 118, which requires Ministers to produce an explanatory document with a draft statutory instrument setting out the reasons for an order, will provide another opportunity to inform Parliament of such matters. For example, where a change is proposed to a consumer body or any other body, the Government will be required by Amendment 118 to give reasons for the order that relate to considerations including efficiency, accountability and effective delivery of public functions. I take note of this debate, in which there have been valuable contributions—not least the ideas on Clause 8 proposed by my noble friend and the noble Baroness, Lady Hayter—and I hope that, given my assurances with regard to our commitment to sharing information with the House, the noble Lord will feel able to withdraw the amendment.