12244.37-43

Session 2010 - 12
Internet Publications
Other Bills before Parliament

Lords Amendments to the Localism Bill

37
73
Page 30, line 47, leave out “local or”
74
Page 30, line 48, leave out “subsection (3)(b)” and insert “section (Matters to be

determined before a final notice is given)(4)”
75
Page 31, line 2, at end insert—

“(9)
In this section and section (Matters to be determined before a final notice is

given) “the panel” means the panel established under section (Establishment

of independent panel) to deal with the EU financial sanction to which the

notice relates.”
After Clause 32
76
Insert the following new Clause—

“Matters to be determined before a final notice is given

(1)
This section applies where—

(a)
a warning notice has been given to a public authority; and

(b)
the panel has considered all representations made to it under the

procedures set out in that notice.

(2)
The panel must make, to a Minister of the Crown, a report on the matters

to which the representations made to the panel relate.

(3)
The report—

(a)
may be published by the panel in such manner as the panel thinks

fit and, if not published by the panel, must be published by the

Minister of the Crown to whom it is made in such manner as the

Minister of the Crown thinks fit;

(b)
must include recommendations as to the determination of the

matters mentioned in subsection (4)(a) and (b);

(c)
if the authority has made representations to the panel about

anything the authority considers relevant to any of the matters

mentioned in paragraphs (c) to (e) of subsection (4), must include

recommendations as to the determination of the matters mentioned

in those paragraphs; and

(d)
must include the panel’s reasons for any recommendations

included in the report.

(4)
After having had regard to the report, a Minister of the Crown must

determine the following matters—

(a)
whether any acts of the authority did cause or contribute to the

infraction of EU law concerned and, in relation to any periodic

payments, whether any acts of the authority have continued, and

will continue, to cause or contribute to the continuation of that

infraction;

(b)
the proportion of—

(i)
the total amount of the sanction (being the amount to be

specified under section 33(2)(b) if a final notice is given),

and

(ii)
any periodic payments not included in that total amount

(including both payments that have fallen due since the date

specified under section 32(6C)(b) and future periodic

payments),

38


that, in the light of the acts of the authority which are determined to

be relevant for the purposes of paragraph (a), is to be regarded as

reflecting the authority’s share of the responsibility for the

infraction of EU law concerned or, in relation to a periodic payment

mentioned in sub-paragraph (ii), the continuing infraction of EU

law concerned;

(c)
whether the authority should be required to make any payment or

payments in respect of the EU financial sanction;

(d)
if so, what payment or payments the authority should make

towards—

(i)
the total amount of the sanction referred to in paragraph

(b)(i); and

(ii)
any periodic payments referred to in paragraph (b)(ii); and

(e)
when any such payment or payments should be made.

(5)
In determining the matters mentioned in subsection (4)(c), (d) and (e) the

Minister of the Crown must have regard to—

(a)
the effect on the authority’s finances of any amount it may be

required to pay and in particular, if the authority has mixed

functions, the need to avoid any prejudicial effect on the

performance by the authority of its devolved functions;

(b)
the determination under subsection (4)(b); and

(c)
any other relevant considerations.

(6)
Before making a final decision on the matters mentioned in subsection

(4)(c), (d) and (e), the Minister of the Crown must invite—

(a)
representations from the authority about the potential effect on its

finances and, if it has mixed functions, the effect on its devolved

functions of any amount it may be required to pay; and

(b)
if the authority has mixed functions, representations from the

appropriate national authority.”
Clause 33
77
Page 31, line 4, leave out from “give” to end of line 8 and insert “a final notice to a

public authority only if a Minister of the Crown has decided in accordance with

section (Matters to be determined before a final notice is given) to impose a requirement

under this Part on the authority.”
78
Page 31, line 9, leave out subsections (2) to (6) and insert—

“(2)
The final notice must—

(a)
identify the EU financial sanction to which the notice relates;

(b)
specify the total amount of the sanction (see subsection (3)) and,

where relevant, the amount and frequency of any future periodic

payments (see subsection (4));

(c)
describe the acts of the authority that a Minister of the Crown has

under section (Matters to be determined before a final notice is given)(4)

determined—

(i)
have caused or contributed to the infraction of EU law

concerned; or

(ii)
have caused or contributed, or will continue to cause or

contribute, to the continuation of that infraction;


and set out the reasons for that determination;

39

(d)
summarise the other determinations made by a Minister of the

Crown under section (Matters to be determined before a final notice is

given)(4) and set out the reasons for making them;

(e)
specify the amount required to be paid by the authority towards the

total amount of the sanction and when it is to be paid (and if it is to

be paid in instalments, the instalments and the date on which they

become payable);

(f)
specify the amount or proportion required to be paid towards any

future periodic payment (as defined for the purposes of paragraph

(b)) and the time when that amount is to be paid (or, if the notice so

provides the time when two or more such amounts are to be paid);

and

(g)
specify how and to whom payments are to be made.

(3)
In subsection (2)(b) and (e) the “total amount of the sanction” means the

sum of the following—

(a)
the amount of the lump sum (if any) due from the United Kingdom

under the terms of the EU financial sanction (disregarding any

amount that falls to be excluded from the lump sum by virtue of

section (The EU financial sanctions to which Part 2 applies)(2)); and

(b)
the total amount of the periodic payments (if any) which have fallen

due from the United Kingdom on or before a day specified in the

final notice (disregarding any amount that falls to be excluded from

any of those payments by virtue of section (The EU financial

sanctions to which Part 2 applies)(2));


and the day specified for the purposes of paragraph (b) must be no later

than the day on which the final notice is given to the authority.

(4)
In subsection (2)(b) “future periodic payments” means periodic payments

due from the United Kingdom other than—

(a)
any periodic payment taken into account in calculating the total

amount of the sanction; or

(b)
any periodic payment, or any part of a periodic payment, that falls

to be excluded from the EU financial sanction by virtue of section

(The EU financial sanctions to which Part 2 applies)(2).

(5)
The requirement to make payments towards periodic payments falling due

from the United Kingdom after the notice is given continues so long as

those periodic payments continue to fall due, unless a Minister of the

Crown gives the authority a notice under this subsection terminating the

requirement or varying it so as to make it less onerous for the authority.

(6)
A notice under subsection (5) may be given, either on the application of the

authority or without such an application, where a Minister of the Crown

considers it appropriate in the light of a change in the circumstances which

applied when the final notice was given or when it was last varied (as the

case may be).

(7)
A Minister of the Crown may—

(a)
consult the panel, or refer any matter relating to the possible

termination or variation of the requirement for its advice or

recommendations;

(b)
invite the authority to make representations; and

(c)
if the authority has mixed functions, invite the appropriate national

authority to make representations,

40


before deciding whether to terminate or vary the requirement mentioned

in subsection (5).

(8)
If the authority makes an application under subsection (6) a Minister of the

Crown may by notice to the authority suspend the requirement until

further notice (but this does not affect the liability to make any payment

once the suspension is ended, unless the final notice is varied to have that

effect).”
Clause 34
79
Leave out Clause 34
Clause 35
80
Leave out Clause 35
Clause 36
81
Leave out Clause 36
Clause 37
82
Page 33, line 38, leave out from beginning to end of line 1 on page 34 and insert—

““the appropriate national authority”, in relation to a public authority

with mixed functions, has the meaning given by section (Meaning of

“public authority” and related terms)(8);

“Article 260(2) proceedings” has the meaning given by section

31(8)(c);

“Court of Justice” means the Court of Justice of the European Union;

“EU financial sanction” has the meaning given by section 31(8)(a);

“final notice” means a notice under section 33;

“functions”, “non-devolved functions” and “devolved functions” are

to be construed in accordance with section (Meaning of “public

authority” and related terms);

“infraction of EU law”, in relation to an EU financial sanction, has the

meaning given by section 31(8)(b);”
83
Page 34, line 3, at end insert—

““periodic payment”, in relation to an EU financial sanction that is or

includes a penalty payment, means a payment due under the terms

of the penalty payment;

“public authority” has the meaning given in section (Meaning of

“public authority” and related terms)(2);

“public authority with mixed functions” has the meaning given by

section (Meaning of “public authority” and related terms)(7);

“warning notice” means a notice under section 32.”
84
Page 34, line 4, leave out subsection (2)
After Clause 37
85
Insert the following new Clause—

41

“Part

EU financial sanctions: Wales

Power to require Welsh public authorities to make payments in respect of

certain EU financial sanctions

(1)
The Welsh Ministers may, in accordance with the provisions of this Part,

require Welsh public authorities to make payments of amounts determined

by the Welsh Ministers in respect of an EU financial sanction to which this

Part applies.

(2)
A requirement to make a payment under this Part—

(a)
may only be imposed on a Welsh public authority if—

(i)
the authority has been designated under section

(Designation of Welsh public authorities); and

(ii)
the EU financial sanction concerned is one to which the

designation applies; and

(b)
must be imposed by a notice given to the authority under section

(Final notices) (referred to in this Part as a final notice).

(3)
If a final notice is registered in accordance with rules of court or any

practice direction, it is enforceable in the same manner as an order of the

High Court.

(4)
Any sums paid by a Welsh public authority under this Part are to be paid

into the Welsh Consolidated Fund.

(5)
In this Part—

(a)
“EU financial sanction” means a sanction consisting of a lump sum

or penalty payment (or both) imposed by the Court of Justice in

Article 260(2) proceedings for an infraction of EU law;

(b)
“infraction of EU law”, in relation to an EU financial sanction,

means the failure to comply with a judgment of the Court of Justice

given in proceedings under Article 258 or 259 of the Treaty on the

Functioning of the European Union; and

(c)
“Article 260(2) proceedings” means proceedings under Article

260(2) of that Treaty.”
86
Insert the following new Clause—

“Duty of the Welsh Ministers to issue a policy statement

(1)
The Welsh Ministers must publish a statement of policy with respect to—

(a)
the designation of Welsh public authorities under section

(Designation of Welsh public authorities);

(b)
the imposition and variation of requirements to make payments

under this Part; and

(c)
such other matters relating to the operation of the provisions of this

Part as the Welsh Ministers may think it appropriate to include in

the statement.

(2)
The Welsh Ministers may from time to time revise and republish the

statement of policy required by this section.

42

(3)
A revised statement of policy may include saving or transitional provisions

relating to the continued application for any purpose of any provisions of

an earlier published version of the statement.

(4)
The Welsh Ministers must consult such persons as the Welsh Ministers

consider appropriate before publishing, or revising and republishing, the

statement of policy required by this section.

(5)
In exercising functions under this Part in relation to an EU financial

sanction which has been or may be imposed on the United Kingdom—

(a)
the Welsh Ministers, and

(b)
a panel established under section (Establishment of independent panel

(No. 2)),


must have regard to the statement of policy most recently published under

this section.”
87
Insert the following new Clause—

“The EU financial sanctions to which Part (EU financial sanctions: Wales)

applies

(1)
This Part applies to an EU financial sanction imposed on the United

Kingdom if—

(a)
the sanction is imposed after the commencement of this Part, and

(b)
the Welsh Ministers certify that this Part applies to the sanction.

(2)
If a certificate under subsection (1)—

(a)
specifies a part or parts of the EU financial sanction concerned, and

(b)
states that this Part applies only to that part, or those parts, of the

sanction,


this Part applies to the sanction as if it included only that part or those

parts.

(3)
A certificate under subsection (1)—

(a)
may make different provision about any of the following—

(i)
the lump sum (if any) paid by the United Kingdom;

(ii)
any periodic payment due from the United Kingdom under

the terms of the EU financial sanction before the certificate

is given; and

(iii)
any future periodic payment that may fall due from the

United Kingdom under those terms; and

(b)
must be given in such form and published in such manner as the

Welsh Ministers think fit.

(4)
Any provision of a certificate under subsection (1) which has the effect of

excluding the whole or part of any periodic payment mentioned in

subsection (3)(a)(iii) (including any such payment which has fallen due

from the United Kingdom since the earlier certificate was given) may be

varied by a further certificate under subsection (1).”
88
Insert the following new Clause—

“Meaning of “Welsh public authority” and related terms

(1)
Subsections (2) to (5) define various terms used in this Part.

43

(2)
“Welsh public authority” means—

(a)
a council of a county or county borough in Wales; or

(b)
any other person or body which has any Welsh devolved functions.

(3)
References to functions are to functions of a public nature.

(4)
References to Welsh devolved functions are to functions which are

exercisable in relation to Wales and could be conferred by provision falling

within the legislative competence of the National Assembly for Wales as

defined in section 108 of the Government of Wales Act 2006.

(5)
The “appropriate national authority”, in relation to a Welsh public

authority with any functions other than Welsh devolved functions, means

the following national authority or authorities (according to whichever one

or more of the following paragraphs apply to that Welsh public

authority)—

(a)
a Minister of the Crown, if the Welsh public authority has any

functions which are not devolved functions;

(b)
the Scottish Ministers, if the Welsh public authority has any Scottish

devolved functions; and

(c)
the relevant Northern Ireland Department, if the Welsh public

authority has any Northern Ireland devolved functions.

(6)
In subsection (5)(a) “devolved functions” means—

(a)
Welsh devolved functions;

(b)
Scottish devolved functions; or

(c)
Northern Ireland devolved functions.

(7)
In subsections (5) and (6)—

“Northern Ireland devolved functions” means functions which could

be conferred by provision included in an Act of the Northern

Ireland Assembly made without the consent of the Secretary of

State (see sections 6 to 8 of the Northern Ireland Act 1998);

“Scottish devolved functions” means functions the exercise of which

would be within devolved competence (within the meaning of

section 54 of the Scotland Act 1998).”
89
Insert the following new Clause—

“Designation of Welsh public authorities

(1)
The Welsh Ministers may by order designate a Welsh public authority for

the purposes of this Part.

(2)
The order must—

(a)
specify the Welsh public authority by name;

(b)
identify any EU financial sanction to which the designation applies;

and

(c)
describe the activities of the authority which are covered by the

designation.

(3)
The order may identify an EU financial sanction for the purposes of

subsection (2)(b) by—

(a)
specifying an EU financial sanction that has been imposed on the

United Kingdom;