Public Bodies Bill [HL]

My Lords, the amendment removes the Security Industry Authority from the list of public bodies that the Minister can abolish by secondary legislation. Some noble Lords may wonder why the Government are supporting an amendment which is the same as one which the Opposition put forward a few weeks ago and which we then resisted. If I go into the Government’s reasoning behind our approach to the Bill, it will then become clear why we are now supporting this amendment. First, our willingness to accept the amendment does not represent a change of policy; it remains the Government’s intention to abolish the SIA in its present form. We have, however, decided that this will be best achieved through a different piece of primary legislation. As noble Lords know, it was announced on 14 October as part of the public bodies review that the SIA would no longer be a non-departmental public body and that we would take forward a phased transition to a new regulatory regime. I went through the reasons for that during the Committee debate on 28 February, and I do not intend to detain the House at this hour by going over that ground again. I am sure that noble Lords will welcome that. Home Office Ministers asked the SIA last October to consult key stakeholders, including the industry, and to produce a detailed plan of how the phased transition to the new regulatory regime could be achieved. As the House will know, the chair of the SIA, the noble Baroness, Lady Henig, and its chief executive, Bill Butler, presented their plan to the department on 16 February and there has been a subsequent meeting with the Home Secretary on 14 March, so there has been close dialogue between the SIA and the department. The key points that emerge from the proposals are that: regulation will shift from licensing individuals to registering businesses, which will have to meet a comprehensive set of conditions set by the new regulator; the regulation of individuals will become the responsibility of registered businesses, which is an important point; the new regulator will have the power to impose sanctions, including removing the right to trade in the private security industry on the part of businesses that fail to comply with the conditions that it sets for registration; and the Government’s aim is for the new regulatory regime to be in place by the end of 2013, using a phased approach to ensure a smooth transition. We have decided to support the amendment to remove the SIA from the Bill because Clause 1 includes only powers to abolish bodies and transfer functions via secondary legislation. It does not include powers to set up new regulatory bodies, and it has become clear that primary legislation will be required to establish a successor self-regulatory body that will have the power to impose sanctions on businesses that do not comply with set standards. If I understood the noble Lord’s point, he attaches importance to the idea that the regulatory body should have teeth. The Government agree—in other words, it must have powers that will enable it to enforce sanctions against companies that breach standards. We have therefore taken the opportunity to review, and decided that references to the SIA should be removed from the Bill. The same primary legislative vehicle that will establish the successor regulatory body will also be used to abolish the SIA, so we will put it all in another Bill. I am sure that noble Lords will understand that I cannot give further detail on that legislation today, except to say that we will bring it forward when parliamentary time allows. A final point: the Home Secretary has also written to Ministers in the Scottish Government and in the Department of Justice in Northern Ireland to advise them of this amendment. Regulation of the private security industry in their nations is a policy decision for the devolved Administrations to make. We are working with them to ensure that transitional and subsequent arrangements meet the needs of all UK Administrations. Accepting the amendment does not constitute a change in policy; it is a change to the vehicle that the Government will use to deliver that policy. There is wide agreement between the Government and what I understand to be the points made on the opposition Benches regarding the substance. It is still the Government’s intention to abolish the existing body and replace it with another body for the private security industry that is self-regulatory. I therefore support the amendment.