Public Bodies Bill (HL)——————————

These notes refer to the Public Bodies Bill (HL)

as brought from the House of Lords on 10 May 2011

Explanatory Notes

INTRODUCTION

1. These explanatory notes relate to the Public Bodies Bill as brought from the House of Lords on 10th May 2011. They have been prepared by the Cabinet Office in order to assist the reader of the Bill and to help inform debate on it. They do not form part of the Bill and have not been endorsed by Parliament.

2. The Notes need to be read in conjunction with the Bill. They are not, and are not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause does not seem to require any explanation or comment, none is given.

SUMMARY AND BACKGROUND

3. Clauses 1 to 5 confer powers on a Minister of the Crown to make orders in relation to certain public bodies and offices (listed in Schedules 1 to 5); and clause 6 confers power to make consequential and supplementary provision. Clauses 7 to 11 contain restrictions and conditions attached to the use of the order-making powers in clauses 1 to 5, including provision for the procedure for making orders.

4. Clauses 13 to 20 confer order-making powers on Welsh Ministers in relation to certain environmental and other public bodies in Wales, and contain supplementary provision in relation to those powers.

5. Clauses 21 to 23 set out general restrictions on order-making powers in the Bill.

6. Clause 24 provides a power for Ministers to make transfer schemes in connection with orders under the Bill. Clause 25 provides a power for the Treasury to make an order providing for the tax consequences of such schemes.

7. Clause 27 makes provision in relation to the power of a Minister of the Crown to add categories of employment to Schedule 1 to the Superannuation Act 1972.

Bill 188-EN 55/1

8. The impetus for the Bill comes from the Government’s review of public bodies in 2010, and the outcome of this review as reported to Parliament in oral and written statements by the Minister for the Cabinet Office, Public Bodies Review Programme, on 14th October 2010.

TERRITORIAL EXTENT

9. The Bill extends to England and Wales, Scotland and Northern Ireland. An order made under the Bill which repeals, revokes or amends an enactment extending to any other jurisdiction may also extend there.

TERRITORIAL APPLICATION: WALES

10. Orders under clauses 1 to 5 of the Bill may in principle affect matters which are the responsibility of the devolved institutions in Wales, in the following respects:

• It is possible that the exercise of the powers in clauses 1 to 5 may affect functions of the Welsh Ministers or relate to matters within the legislative competence of the National Assembly for Wales . But any such provision requires the consent of the Welsh Ministers or the National Assembly for Wales (c lause 9(6) to (8) ).
• Clause 1 of the Bill specifies the Welsh Ministers as “an eligible person” to whom functions may be transferred unde r clauses 1, 2 and 5 . Again any such provision requires the consent of the Welsh Ministers (clause 9(7)).

11. Clauses 13 to 16 provide Welsh Ministers with powers to effect changes to public bodies in Wales.

12. A Legislative Consent Motion has been obtained for the provisions in the Bill which may affect matters which are the responsibility of the devolved institutions in Wales.

TERRITORIAL APPLICATION: SCOTLAND

13. Orders under clauses 1 to 5 of the Bill may in principle affect matters which are the responsibility of the devolved institutions in Scotland in the following respects:

• It is possible that the exercise of the powers in clauses 1 to 5 may affect the functions of Scottish Ministers or relate to matters within the legislative competence of the Scottish Parliament. But any such provision require s the consent of the Scottish Parliament (clause 9(1)).

Clause 1 of the Bill specifies the Scottish Ministers as "an eligible person" to whom functions may be transferred under clauses 1, 2 and 5. Again, clause 9(1) requires the consent of the Scottish Parliament to any such provision.

14. The Scottish Parliament’s consent has been obtained for the provisions in the Bill that trigger the Sewel Convention (i.e. provision relating to public bodies or offices which falls within Scottish legislative competence). The Sewel Convention provides that Westminster will not normally legislate with regard to devolved matters in Scotland without the consent of the Scottish Parliament. If there are amendments relating to such matters which trigger the Convention, the consent of the Scottish Parliament will be sought for them.

TERRITORIAL APPLICATION: NORTHERN IRELAND

15. Orders under clauses 1 to 5 of the Bill may in principle affect matters which are the responsibility of the devolved institutions in Northern Ireland in the following respects:

• It is possible that the exercise of the powers in clauses 1 to 5 may affect the functions of, for example, Northern Ireland Ministers or relate to matters within the legislative competence of the Northern Ireland Assembly . But any such provision requires the consent of the Northern Ireland Assembly ( clause 9(3) ).

Clause 1 of the Bill specifies a Northern Ireland Department as "an eligible person" to whom functions may be transferred under clauses 1, 2 and 5. Any such provision requires the consent of the Northern Ireland Assembly (clause 9(3)).

16. A Legislative Consent Motion has been obtained for the provisions in the Bill which may affect matters which are the responsibility of the devolved institutions in Northern Ireland.

COMMENTARY

Clause 1: Power to abolish

17. Clause 1 confers power on a Minister to make provision by order to abolish any body or office listed in Schedule 1. As subsection (2) describes, such an order can include provision transferring any or all of the functions of an abolished body or office to an "eligible person" (as defined in subsection (3)). On this basis, an order made under clause 1 might, for instance, abolish a body and all its functions, or might abolish a body and transfer some or all of its functions to a Minister, to another person exercising public functions, a company limited by guarantee, or any other eligible person permitted by subsection (3).

Clause 2: Power to merge

18. Clause 2 confers power on a Minister to make provision by order to merge any group of bodies or offices (or both) listed in Schedule 2. Such provision might involve the establishment of a new body corporate or office (including provision for constitutional arrangements) to replace the bodies being merged, or the abolition of all but one body or office in a group (in which case the remaining body or office would assume some or all of the functions previously held by other members of the group). An order under this clause may also include a transfer of functions to an eligible person (as defined in clause 1(3)) which is not included in the group of bodies or offices involved in the merger.

Clause 3: Power to modify constitutional arrangements

19. Clause 3 confers power on a Minister to make provision by order to modify the constitutional arrangements of any body or office listed in Schedule 3. The term "constitutional arrangements" refers to a wide range of arrangements relating to the structure, governance and functions of an office or body: these are described in subsection s (2) and (3) for bodies and offices respectively. Examples of provision that could be made under clause 3 include:

• Provision to ensure a particular number of non-executive directors on the b oard of a body ;
• Provision requiring a body to report publicly on how it has sought to increase efficiency in the exercise of its functions;
• Provision requiring permission from a Minister in relation to employment of staff, or remuneration of staff in excess of an agreed threshold;
• Provision requiring that the c hair of a body, or an office-holder, be required to undergo a pre-appointment hearing process before taking up their post.

Clause 4: Power to modify funding arrangements

20. Clause 4 confers power on a Minister to make provision by order to modify the funding arrangements of a body or office listed in Schedule 4. Subsectio n (2 ) specifies that the power includes alterations to the funding a body or office receives from a Minister, or giving a body or office-holder the power to charge a fee for a function that body or office carries out. For example, an order made under this clause might give a body which issues licences for a particular purpose the power to charge a fee for the issue of such a licence.

Clause 5: Power to modify or transfer functions

21. Clause 5 confers power on a Minister to make provision by order to modify the functions of a body or office-holder listed in Schedule 5, or to transfer a function of such a body or office-holder to an eligible person. Subsection (2) defines the modification of functions as including the conferral of new functions, the abolition of functions, or changes to the purpose for which, or conditions under which, functions are exercised. So, for example, an order under clause 5 might give new functions to a body, while transferring some of its existing functions to a Minister or other eligible person.

Clause 6: Consequential provision etc

22. Clause 6 provides that an order under clauses 1 to 5 may include consequential, supplementary, incidental or transitional provisions or savings. This includes a power to allow an order under clauses 1, 2 or 5 transferring functions to make consequential provisions to modify the functions or constitutional or funding arrangements of the transferor or transferee. For example, this power could be used to amend the qualification requirements for members of a body if a new function is conferred on it under clause 5.

Clause 7: Restrictions on Ministerial powers

23. Clause 7 imposes restrictions on the use of the order-making powers conferred on Ministers by clauses 1 to 5. Subsection (1) stipulates that an order must not prevent an affected function from being exercised independently of Ministers in any of the cases set out in subsection (2 ) . Subsection (3) requires that provision made by an order made under clauses 1 to 5 must be proportionate to the reasons for the order. The reasons for the order will be set out in the explanatory document which accompanies an order, as required by clause 11(2).

Clause 8: Purpose and conditions

24. Subsection (1) of clause 8 provides that a Minister may only make an order under clauses 1 to 5 if the Minister considers that the order will serve the purpose of improving the exercise of public functions, having regard to the matters described in subsection (1)(a) to (d). In considering whether an order serves this purpose, a Minister is able to consider the wider policy context within which the order is made.

25. Subsection (2) places restrictions on orders made by a Minister in that the Minister may only make an order under clauses 1 to 5 if the Minister considers that it does not remove any necessary protection or prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise.

Clause 9: Devolution

26. Clause 9 limits the powers of Ministers to make orders in relation to devolved matters.

27. Subsection (1) provides that orders made under clauses 1 to 5 which contain provision which would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament or which modifies the functions of Scottish Ministers require the consent of the Scottish Parliament, subject to subsection (2).

28. Subsection ( 3 ) provides that orders made under clauses 1 to 5 which contain provision which would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly or which modifies the functions of persons within subsection (4), require the consent of the Northern Ireland Assembly. Subsection ( 5 ) provides that the stipulation in subsection (3)(a) does not apply if a Bill for an Act of the Northern Ireland Assembly containing the provision would require the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998 and the provision does not affect, otherwise than incidentally, a transferred matter.

29. Subsection ( 6 ) provides that an order made under those clauses requires the consent of the National Assembly for Wales if the order contains provision which would be within the legislative competence of the National Assembly if contained in a Measure or Act of that Assembly.

30. Subsection (7) provides that such any order made under subsection (6) requires the consent of the Welsh Ministers if it contains provision modifying a function of the Welsh Ministers, the First Minister or the Counsel General to the Welsh Assembly Government, or if it could be made by any of those persons. Subsection ( 8 ) sets out limitations on the definition of "function" for these purposes.

Clause 10: Consultation

31. Subsection (1) requires a Minister who proposes to make an order under clauses 1 to 5 to consult the persons described. Subsection (2) requires a Minister to carry out any appropriate further consultation if, following a consultation conducted under subsection (1), the Minister considers it appropriate to change all or part of the proposal. Subsection (3) provides that consultation carried out before the commencement of the clause may be considered to meet the requirements of the clause.

Clause 11: Procedure

32. This clause sets out the procedure applicable to orders made under clauses 1 to 5. Subsections (1) to (3) require a Minister to lay a draft order and explanatory document before Parliament, but the Minister may not do so for 12 weeks from the beginning of the consultation process. S ubsection (4) provides that any orders must be approved by Parliament through the use of the affirmative procedure (approval by a resolution of each House of Parliament) unless the procedure described in the following paragraph applies.

33. Subsection s (5 ) to (9) provide for an enhanced affirmative procedure if either House of Parliament so requires, or a Committee of either House so recommends (and the recommendation is not rejected by the House). Such a resolution or recommendation must be made within 30 days of the laying of a draft order. The enhanced procedure extends the scrutiny period for an order to 60 days, and requires a Minister to have regard to any recommendations or representations made by Parliament during this period. Following the conclusion of the scrutiny period, a Minister would have the option of laying a revised draft order.

Clause 12: Time limit s

34. Clause 12 provides that each entry in Schedules 1 to 5 will cease to have effect 5 years after the commencement of that entry. This is, therefore, a form of "sunsetting" in that the relevant order-making power will only be exercisable in relation to the entry for five years. This time limit would apply to any entries added to the Schedules by later primary legislation, as well as those which form part of the Bill at the time of Royal Assent.

35. Subsection (4) of clause 6 provides that an order under clauses 1 to 5 may also include provision repealing the relevant entry (which may be prior to the end of the five year time limit provided for by virtue of clause 12).

Clause 13: Powers relating to environmental bodies

36. Clause 13 confers power on Welsh Ministers, by order, to modify and transfer functions of certain environmental bodies, or to transfer certain functions relating to the environment to specified bodies.

37. Subsection (1) confers power to modify functions of the Countryside Council for Wales ("the CCW"), the Environment Agency as it relates to Wales, the Forestry Commissioners as they relate to Wales or a Welsh Flood and Coastal Committee (as defined in subsection (8)).

38. Subsection (2) confers power to transfer functions of the CCW. The persons to whom functions may be transferred are a new body (provided for in subsection (7)), the Environment Agency or Forestry Commissioners or any other person exercising Welsh devolved functions.

39. Subsection (3) confers power to transfer Welsh devolved functions (as defined in clause 29) of the Environment Agency or the Forestry Commission to a new body, the CCW, the Welsh Ministers or any other person exercising Welsh devolved functions.

40. Subsection (4) confers power to transfer functions of Welsh Flood and Coastal Committees to a new body, the Welsh Ministers or any other person exercising Welsh devolved functions.

41. Subsections (5) and (6) create further powers for Welsh Ministers to transfer any of their own functions relating to the environment, or to transfer any Welsh devolved functions relating to the environment which are exercisable by other persons. Transfers made under subsections (5) and (6) can be to a new body, CCW or any person exercising Welsh devolved functions.

42. Subsection (7) confers a power on Welsh Ministers to establish a new body corporate for the purposes of this clause.

43. Subsection (9) provides the Welsh Ministers must consult with the Secretary of State prior to making an order under subsection (1) or (4) relating to a Welsh Flood and Coastal Committee established for a region not wholly in Wales.

Clause 14: Powers relating to other bodies

44. Clause 14 confers order-making powers on the Welsh Ministers in relation to other specified bodies.

45. Subsection (1) confers a power to abolish the bodies specified in that subsection. Subsection (2) provides power allowing the transfer of functions from such bodies, in the event of their abolition, to the Welsh Ministers or any other person exercising Welsh devolved functions.

46. Subsection (3) confers a power by order to modify the funding arrangements of drinking water inspectors appointed by the Welsh Ministers. This includes provision to make alterations to the funding inspectors receive from the Welsh Ministers (subsection (4)).

47. Subsection (5) confers order-making powers on the Welsh Ministers to modify the constitutional arrangements or functions of internal drainage boards for areas wholly or mainly in Wales, or to transfer those boards’ functions to any of the persons listed). Subsection (6) provides that prior to making an order in relation to a board which is for an area in England as well as Wales, the Welsh Ministers must consult the Secretary of State.

Clause 15: Powers of Welsh Ministers: consequential provision etc

48. Clause 15 provides that an order made under clause 13 or 14 may include consequential, supplementary, incidental or transitional provision.

49. Subsection (2) provides that where an order transfers functions under clause 13 or 14, the order may also modify the constitutional or funding arrangements of the person from or to whom functions are transferred, or modify the functions of such person. It also confers a power for the Welsh Ministers to make directions in relation to functions which have been transferred.

50. Subsection (3) provides that where an order modifies functions of a person under clause 13 or 14 the order-making power includes power to modify the constitutional or funding arrangements of that person. Subsection (4) restricts the consequential or supplementary order-making powers in subsections (2) and (3) such that they may not be exercised to modify the constitutional or funding arrangements of the Environment Agency, Forestry Commissioners or any other cross-border operator (as defined in clause 29). Instead, subsection (6) confers a power on the Secretary of State to modify the constitutional or funding arrangements of such a person in consequence of an order made by the Welsh Ministers under clause 13 or 14.

Clause 16: Delegation etc

51. Clause 16 provides that the Environment Agency, the Forestry Commissioners or any other person exercising Welsh devolved functions relating to the environment may make arrangements under which one exercises Welsh devolved functions relating to the environment for the other. Arrangements may also be made by them to co-operate when carrying out environment-related Welsh devolved functions or to provide each other with administrative, professional or technical services insofar as relating to functions they exercise in or as regards Wales.

52. Subsection (3) confers power on the Welsh Ministers to make provision about how making such arrangements is to be done.

53. Subsection (4) requires the Secretary of State’s consent to any arrangements or order under subsection (3) which relates to the Environment Agency, Forestry Commissioners or other cross-border operator.

Clause 17 : Purpose and conditions for orders made by Welsh Ministers

54. Clause 17 stipulates the purpose for which an order under clause 13 or 14 can be made. The effect of this clause is to ensure that the Welsh Ministers may only make an order under these clauses if they consider that the order will serve the purpose of improving the exercise of public functions, having regard to the matters described in subsection (1)(a) to (d). In assessing whether an order meets the prescribed purpose, the Welsh Ministers may take account of changes which are not directly effected by the order itself, but which are indirectly dependent on the order.

55. Subsection (2) places restrictions on orders made by the Welsh Ministers in that they may only make an order if they consider that it does not remove any necessary protection or prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise.

Clause 18: Consent of UK Ministers

56. This clause sets out the circumstances in which consent of Ministers is required for an order made by the Welsh Ministers under clause 13 or 14. Subsection (1) provides that an order transferring a function to or conferring a function on the Environment Agency, Forestry Commissioners or other cross-border operators requires the consent of the Secretary of State, and subsection (2) requires the Secretary of State’s consent to an order which modifies functions, other than Welsh devolved functions, of such persons. Subsection (3) requires a Minister’s consent to any order which transfers functions to, or modifies functions of, the Minister.

Clause 1 9: Consultation by Welsh Ministers

57. This clause requires the Welsh Ministers when proposing to make an order under clause 13 or 14 to consult as appropriate with the parties described in relation to the proposal contained within the order. Subsection (2) places a duty on the Welsh Ministers to carry out any appropriate further consultation if, following a consultation conducted under subsection (1), they consider it appropriate to change all or part of the proposal. Subsection (3) provides that consultation carried out before the commencement of the clause may be considered to meet the requirements of the clause.

Clause 20: Procedures for orders by Welsh Ministers etc.

58. This clause details the legislative procedure applying to orders made under clause 13 or 14. Subsections (1) to (3) require the Welsh Ministers to lay a draft order and explanatory document before the National Assembly for Wales after a period of not less than twelve weeks following the commencement of consultation for the purposes of clause 19.

59. Subsection (5) provides that the National Assembly, or a Committee of the Assembly charged with reporting on the Order, can opt by resolution or recommendation respectively that an enhanced affirmative procedure, as described in subsections (6) to (9), should apply in relation to any draft order laid before the Assembly in compliance with subsection (1). Such a resolution or recommendation must be made within 30 days of the laying of a draft order. If no such resolution or recommendation is made, the affirmative procedure described in subsection (4) will apply to the order.

Clause 21: Restriction on creation of functions

60. Clause 21 stipulates that an order made under the preceding provisions of the Bill may not create or authorise the creation of powers of forcible entry, search or seizure, a power to compel the giving of evidence, or a power to make subordinate legislation. This does not prevent the repeal and re-enactment of a power (see s ubsection (2)).

Clause 22: Restriction on transfer and delegation of functions

61. Clause 22 restricts the order-making powers in the preceding provisions of the Bill in respect of the transfer or delegation of functions. Firstly, a transfer may only be made to a charity or to a person not otherwise exercising public functions who is not a charity if that charity or person has consented (subsection (1)). Secondly, an order may not transfer or delegate a function specified in subsection (3) to a person not otherwise exercising public functions.

Clause 23: Restriction on creation of criminal offences

62. Clause 23 restricts the order-making powers in the preceding provisions of the Bill in respect of the creation (or the authorisation of the creation) of criminal offences. An order may not create or authorise the creation of an offence where the offence is punishable by a term of imprisonment, or a fine, which exceeds certain limits. This does not prevent the repeal and re-enactment of an offence (subsection (5)).

Clause 24: Transfer schemes

63. Clause 24 confers a power to make a scheme to transfer property, rights and liabilities on Ministers in connection with an order under clauses 1 to 5, and on Welsh Ministers under clauses 13 and 14. In the case of a scheme under subsection (1)(a) (schemes made by a Minister), the transfer of property, rights and liabilities must be to an eligible person or any body corporate unless constitutional or funding arrangements are being modified under clauses 3 or 4, in which case the transfer must be to a Minister. In the case of a scheme under made by the Welsh Ministers under subsection (1)(b), the transfer must be to the Welsh Ministers, a person exercising Welsh devolved functions or a body corporate.

64. Subsection (5) lists supplementary, incidental and transitional provision that may be made by a transfer scheme. These include making provision the same as or similar to the TUPE regulations (the Transfer of Undertakings (Protections of Employment) Regulations 2006 (S.I. 2006/246)). Subsection ( 8 ) makes provision in relation to individuals holding employment in the civil service.

Clause 2 5 : Transfer schemes: procedure

65. This clause stipulates that transfer schemes may be included within the order to which they relate. If they are not included within the order, they must be laid before the appropriate legislative body (Parliament for schemes in connection with clauses 1 to 5, or the National Assembly for Wales for schemes in connection with clause 13 and 14) after being made.

Clause 26: Transfer schemes: taxation

66. Clause 26 confers power on the Treasury to make provision by order varying the way in which tax provisions will be applied either for anything transferred under a scheme made under clause 24, or anything done for the purposes of, or in relation to a transfer under such a scheme.

67. Any such order is to be subject to the negative resolution procedure in the House of Commons (see subsection (4)).

Clause 27: Scope of power to amend Schedule 1 to Superannuation Act 1972

68. Clause 27 amends section 1(6) of the Superannuation Act 1972. It clarifies that when an employment or office is added by order to Schedule 1 of the Superannuation Act 1972 (which enables the staff of that body to become members of the Principal Civil Service Pension Scheme and linked schemes), the condition that the remuneration of staff in the employment or office must be paid out of moneys provided by Parliament, the Consolidated Fund or the Scottish Consolidated Fund applies only at the time that the addition to Schedule 1 is made.

Clause 2 8 : Orders: s upplementary

69. Subsection (4) stipulates that a draft instrument laid under this Bill cannot be treated as a hybrid instrument by either House, regardless of whether the content of said draft instrument would normally identify it as a hybrid instrument for such a purpose. This is designed to ensure that all orders made under this Bill are subject to a consistent level of Parliamentary scrutiny through the procedure described in clause 11.

Clause 30: Extent

70. Generally, the Bill extends to the whole of the United Kingdom. Subsection (2) provides that an order made under this Bill which repeals, revokes or amends any enactment extending outside the United Kingdom (for example, to the Channel Islands) may have the same extent as the original enactment.

Schedule 1: Power to abolish: bodies and offices

71. This Schedule specifies the bodies and offices which are subject to the power to abolish described in clause 1.

Schedule 2: Power to merge: bodies and offices

72. This Schedule specifies the groups of bodies and offices which are subject to the power to merge described in clause 2.

Schedule 3: Power to modify constitutional arrangements: bodies and offices

73. This Schedule specifies the bodies and offices which are subject to the power to modify constitutional arrangements described in clause 3.

Schedule 4: Power to modify funding arrangements: bodies and offices

74. This Schedule specifies the bodies and offices which are subject to the power to modify funding arrangements described in clause 4.

Schedule 5: Power to modify or transfer functions: bodies and offices

75. This Schedule specifies the bodies and offices which are subject to the power to modify or transfer functions described in clause 5.

FINANCIAL EFFECTS

76. The government does not anticipate new costs falling upon either the National Loans Fund or the Consolidated Fund as a direct result of the provisions in this Bill. Orders made under the provisions of this Bill may impact upon public expenditure; it is not possible to describe the nature of this impact until the content of any such orders has been determined.

PUBLIC SECTOR MANPOWER

77. The Bill itself has no impact upon public sector manpower. Orders made under the provisions of this Bill may have an impact on public sector manpower; it is not possible to describe the nature of this impact until the content of any such orders has been determined.

SUMMARY OF THE IMPACT ASSESSMENT

78. The Cabinet Office has produced an impact assessment for the Bill. Members of Parliament can obtain a copy of the impact assessment from the Vote Office in the House of Commons, or the Printed Papers Office in the House of Lords.

79. The Impact Assessment is also available on the Better Regulation Executive website.1

80. The Bill confers a series of enabling powers on Ministers and the Welsh Ministers, and accordingly has no directly attributable impact on business, the voluntary sector or the environment that could be captured through an impact assessment. It is therefore not possible to provide details of the likely costs and impacts of the Bill, as any costs or impacts arising from its use relate to orders made under its powers rather than to the Bill itself. When Departments or the Welsh Assembly Government use the powers, they will produce full impact assessments of the change or changes they are seeking where required.

81. The Cabinet Office has undertaken an Equality Impact Assessment screening for the Bill to determine whether a full Equality Impact Assessment is required. In line with the overall Impact Assessment, the Bill has been assessed as having no directly attributable impact on equality. Consequently, a full Equality Impact Assessment has not been undertaken. When Departments develop statutory instruments to affect changes using the powers, they will also be required to conduct separate Equality Impact Assessment screening to assess whether a full Equality Impact Assessment is required. Members of Parliament can obtain a copy of the Equality Impact Assessment screening decision, along with supporting evidence, from the Vote Office in the House of Commons, or the Printed Papers Office in the House of Lords.

COMPATIBILITY WITH the european convention on human rights

82. The Right Honourable Francis Maude MP has made the following statement pursuant to section 19(1)(a) of the Human Rights Act 1998:

"In my view the provisions of the Public Bodies Bill are compatible with the Convention Rights"

83. The Government does not consider that the Bill directly engages any Convention rights. The Bill contains a set of order-making powers, set out in clauses 1 to 5 of the Bill, which may be used in relation to the bodies listed in Schedules 1 to 5 to the Bill. There are separate order-making powers for Welsh Ministers in relation to environmental and certain other bodies in clauses 13 and 14. No body is subject to substantive changes on the face of the Bill.

84. All orders under the Bill will, as a minimum, be subject to affirmative resolution procedure, and therefore, in accordance with normal practice, the Explanatory Memorandum accompanying the instrument will include a statement of compatibility with the Convention.

85. The exceptions to this are (i) transfer schemes made under clause 24 which may be made by order, but need not be in all cases (a scheme not made by order must be laid before Parliament after being made) and (ii) orders making provision for tax neutrality under clause 26 which are subject to negative resolution procedure in the Commons.

86. There is nothing in the powers contained in the Bill to prevent them being exercised in a way that is fully compatible with the Convention.

87. Indeed, the Bill affords certain protections in this regard, in particular clause 8(2), which provides that a Minister can only make an order under clauses 1 to 5 if he is satisfied that the order does not remove any necessary protection and that the order does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise. Any right conferred or protected by the European Convention on Human Rights is a right which a person might reasonably expect to keep. This provision is mirrored in clause 16(2) of the Bill in relation to the order-making powers of Welsh Ministers.

88. The Bill also contains an amendment to section 1(6) of the Superannuation Act 1972 but the Government does not consider that the amendment engages any Convention rights.

89. Consequently, it is considered that that the Bill does not give rise to any Convention rights issues.

COMMENCEMENT DATE

90. Clause 30 provides for commencement two months after Royal Assent.