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Energy BillPage 120

(3) One employee of the ONR is to be appointed as the Chief Nuclear Inspector.

(4) One employee of the ONR is to be appointed as the Chief Executive Officer.

(5) The appointment of the Chief Nuclear Inspector or the Chief Executive
Officer also requires the approval of the Secretary of State.

(6) 5A person may be both the Chief Nuclear Inspector and the Chief Executive
Officer.

(7) The ONR may make arrangements for persons to be seconded to the ONR
to serve as members of the ONR’s staff.

(8) A period of secondment to the ONR does not affect the continuity of a
10person’s employment with the employer from whose service he or she is
seconded.

13 (1) The ONR may pay to or in respect of an employee sums by way of or in
respect of allowances, expenses, pensions, gratuities or compensation for
loss of employment.

(2) 15The ONR may pay to or in respect of a person seconded to it sums by way
of or in respect of allowances, expenses, pensions or gratuities.

(3) An executive member may not take part in the determination of the amount
of any remuneration, allowance, expense, pension, gratuity or compensation
payable to or in respect of him or her.

14 (1) 20Service as an employee of the ONR is not service in the civil service of the
State.

(2) A person employed in the civil service of the State continues to be employed
in the civil service of the State during any period of secondment to the ONR.

(3) Members of the ONR’s staff are to be regarded as Crown servants for the
25purposes of the Official Secrets Act 1989.

(4) Employment by the ONR is not Crown employment for the purposes of the
Trade Union and Labour Relations (Consolidation) Act 1992 (see section 273
of that Act).

15 (1) The persons to whom section 1 of the Superannuation Act 1972 (persons to
30or in respect of whom benefits may be provided by schemes under that
section) applies are to include the employees of the ONR.

(2) Accordingly, in Schedule 1 to that Act (employment to which
superannuation schemes may extend), in the list of other bodies, at the
appropriate place insert—

(3) The ONR must pay to the Minister for the Civil Service, at such times as that
Minister may direct, such sums as that Minister may determine in respect of
the increase attributable to sub-paragraph (1) in the sums payable out of
money provided by Parliament under that Act.

40Committees

16 (1) The ONR may establish committees, and any committee may establish sub-
committees.

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(2) The members of a committee may include persons who are not members of
the ONR or the ONR’s staff (and the members of a sub-committee of a
committee may include persons who are not members of the committee or
members of the ONR or the ONR’s staff).

(3) 5The ONR may make arrangements for the payment of such remuneration,
allowances and expenses as it considers appropriate to any person who—

(a) is a member of a committee or sub-committee, but

(b) is not a member of the ONR or of the ONR’s staff.

(4) Payments made by the ONR under sub-paragraph (3) are to be of such
10amounts as may be determined by the Secretary of State.

Procedure

17 (1) The ONR may make such provision as it considers appropriate to regulate—

(a) its own proceedings (including quorum), and

(b) the proceedings (including quorum) of its committees and sub-
15committees.

(2) The ONR may, to any extent, permit any of its committees and sub-
committees to regulate their own proceedings (including quorum).

(3) The validity of any proceedings of the ONR is not affected by any vacancy
among the members or by any defect in the appointment of a member.

(4) 20The ONR must from time to time publish a summary of its rules and
procedures.

Performance of functions

18 (1) The ONR may authorise—

(a) a member of the ONR,

(b) 25a member of the ONR’s staff,

(c) a health and safety inspector, or

(d) a committee of the ONR,

to do anything required or authorised to be done by the ONR (and such
authorisation may include authorisation to exercise the power conferred on
30the ONR by this paragraph).

(2) The ONR must give an authorisation or authorisations under this paragraph
in respect of all its functions which consist of the exercise of a regulatory
function in a particular case.

(3) Only the following may be authorised under this paragraph to do anything
35in the exercise of a regulatory function in a particular case—

(a) a member of the ONR’s staff;

(b) a health and safety inspector;

(c) a committee of the ONR of which every member is a member of the
ONR’s staff or a health and safety inspector.

(4) 40An authorisation under this paragraph—

(a) may be general or specific;

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(b) does not affect the ability of the ONR to exercise the function in
question.

(5) Any authorisations given by the ONR under this paragraph must be in
writing.

(6) 5The ONR must publish any authorisations which it gives under this
paragraph.

Payment of allowances and expenses

19 The ONR may pay allowances or expenses to any person in connection with
the performance of any of its functions.

10Indemnities

20 (1) The ONR may, in the circumstances specified in sub-paragraph (2),
indemnify persons who are ONR officers against all or any part of any
liability which they incur in the execution, or purported execution, of their
functions as such ONR officers.

(2) 15Those circumstances are that the ONR is satisfied that the person in question
honestly believed that the act giving rise to the liability—

(a) was within the person’s relevant powers, and

(b) was one that the person was required or entitled to do by virtue of
the person’s position as an ONR officer.

(3) 20Sub-paragraph (1)—

(a) applies only so far as the ONR is not otherwise required to indemnify
ONR officers, and

(b) is not to be taken to affect any other powers that the ONR has to
indemnify its members or members of staff or persons appointed by
25it.

(4) In this paragraph—

Accounts

21 (1) 5It is the duty of the ONR—

(a) to keep proper accounts and proper records in relation to the
accounts;

(b) to prepare in respect of each financial year a statement of accounts in
such form as the Secretary of State, with the approval of the
10Treasury, may direct;

(c) to send copies of the statement to the Secretary of State and the
Comptroller and Auditor General before the end of November next
following the financial year to which the statement relates.

(2) The Comptroller and the Auditor General must examine, certify and report
15on the statement and must lay copies of the statement and of the report on it
before Parliament.

Strategy

22 (1) The ONR must prepare a strategy for carrying out its functions, including
any general priorities it will apply, or principal objectives to which it will
20have regard, in carrying out its functions.

(2) The ONR must act in accordance with its strategy, or any revision of it,
approved under sub-paragraph (7).

(3) Before preparing or revising its strategy the ONR must consult such persons
as it considers it appropriate to consult.

(4) 25The first proposal for the ONR’s strategy must be submitted to the Secretary
of State within 8 months beginning with the day on which this paragraph
comes into force.

(5) The ONR—

(a) may review its strategy at any time, and

(b) 30must do so—

(i) within 5 years beginning with the day on which its strategy
is first published, and

(ii) within 5 years beginning with the most recent review of its
strategy.

(6) 35The ONR—

(a) may revise its strategy following a review under sub-paragraph (5),
and

(b) must submit any revision of its strategy to the Secretary of State.

(7) The Secretary of State may approve the ONR’s strategy, or any revision of it,
40with or without modifications.

(8) The Secretary of State must consult the ONR before approving with
modifications the ONR’s strategy or any revision of it.

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Annual plan

23 (1) The ONR—

(a) must prepare, for each financial year, a plan for the performance
during that year of its functions (“the annual plan”), and

(b) 5may revise the annual plan.

(2) The ONR must take all reasonable steps to act in accordance with the annual
plan, or any revision of it, approved under sub-paragraph (4).

(3) The ONR must submit the proposed annual plan and any revision of it to the
Secretary of State.

(4) 10The Secretary of State may approve the annual plan and any revision of it
with or without modifications.

(5) The Secretary of State must consult the ONR before approving with
modifications the ONR’s annual plan or any revision of it.

Reporting requirements of the ONR

24 (1) 15As soon as reasonably practicable after the end of each financial year, the
ONR must make a report to the Secretary of State on the performance of the
ONR’s functions during the year.

(2) The report for a financial year must contain—

(a) a general description of what the ONR has done in the exercise of its
20functions during the year,

(b) a description of how, and the extent to which, what the ONR has
done during the year has enabled it to—

(i) act in accordance with its strategy in force during the year,
and

(ii) 25meet any objectives set out in its annual plan, and

(c) a description of any relevant services provided by the ONR during
the year to any person, whether or not in the United Kingdom, under
section 70(2) (provision of services or facilities).

Laying and publication

25 (1) 30This paragraph applies to—

(a) the ONR’s strategy, and any revision of it, approved under
paragraph 22(7),

(b) the ONR’s annual plan, and any revision of it, approved under
paragraph 23(4), and

(c) 35a report made to the Secretary of State under paragraph 24.

(2) The documents mentioned in sub-paragraph (1) are referred to in this
paragraph as “relevant documents”.

(3) The Secretary of State must lay a copy of each relevant document before
Parliament, together with a statement as to whether any matter has been
40excluded from that copy in accordance with sub-paragraph (4).

(4) If it appears to the Secretary of State, after consultation with the ONR, that
the publication of any matter in a relevant document would be contrary to

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the interests of national security, the Secretary of State may exclude that
matter from the copy of it as laid before Parliament.

(5) The ONR must arrange for a relevant document to be published in the form
in which it was laid before Parliament under sub-paragraph (3).

5Payments and borrowing

26 (1) The Secretary of State must pay to the ONR such sums as are approved by the
Treasury and as the Secretary of State considers appropriate for the purpose of
enabling the ONR to perform its functions.

(2) The ONR may, with the consent of the Secretary of State, borrow money.

(3) 10The ONR may not borrow money if the effect of the borrowing would be to
cause the aggregate amount outstanding in respect of the principal of sums
borrowed by the ONR to be, or to remain, in excess of the ONR’s borrowing
limit.

(4) The ONR’s borrowing limit is £35 million.

(5) 15The Secretary of State may by order amend sub-paragraph (4) so as to
substitute, for the sum for the time being specified in that sub-paragraph, the
sum specified in the order, which must not be—

(a) less than £35 million, or

(b) greater than £80 million.

(6) 20Before making an order under this paragraph, the Secretary of State must
consult the ONR.

Supplementary powers

27 (1) The ONR may do anything which is calculated to facilitate, or is conducive
or incidental to, the performance of its functions.

(2) 25The power in sub-paragraph (1) is subject to any restrictions imposed by or
under any provision of any enactment.

Financial year

28 (1) In this Part of this Act “financial year” means a period of 12 months ending
with 31st March.

(2) 30But the first financial year of the ONR is—

(a) the period beginning with the date on which section 57 comes into
force and ending with the following 31st March, or

(b) if the Secretary of State so directs, such other period not exceeding 2
years as may be specified in the direction.

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Section 62

SCHEDULE 8 Inspectors

Part 1 Appointment and powers of inspectors

5Appointment of inspectors

1 (1) The ONR may appoint persons (referred to in this Part of this Act as
“inspectors”) to carry into effect the relevant statutory provisions.

(2) A person appointed as an inspector must be someone who appears to the
ONR to be suitably qualified to carry out the functions that the ONR
10authorises the person to carry out.

(3) The appointment of an inspector under this paragraph is to be on such terms
as the ONR may determine and may be ended by the ONR at any time.

(4) Any appointment of an inspector under this paragraph must be made by a
written instrument.

(5) 15References in this Schedule to carrying into effect the relevant statutory
provisions include in particular assisting the ONR to fulfil its functions
under the relevant statutory provisions.

Powers of inspectors

2 (1) An inspector’s instrument of appointment may authorise the inspector to
20exercise any relevant power.

(2) Authority to exercise a relevant power may be given—

(a) without restriction, or

(b) only to a limited extent or for limited purposes.

(3) The authority conferred by an inspector’s instrument of appointment to
25exercise any relevant powers may be varied by the ONR by a further
instrument in writing varying the instrument of appointment.

(4) For the purposes of this Schedule, an inspector is “authorised”, in relation to
a power, if and so far as the inspector is authorised by the instrument of
appointment to exercise the power.

(5) 30In this Part, “relevant power” means a power conferred by any of the
relevant statutory provisions on an inspector if and so far as so authorised.

(6) When exercising or seeking to exercise any relevant power, an inspector
must, if asked, produce the instrument of appointment (including any
instrument varying it) or a duly authenticated copy.

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Part 2 Powers exercisable by inspectors authorised by instrument of appointment:
improvement notices and prohibition notices

Improvement notices

3 (1) 5This paragraph applies where an inspector is of the opinion that a person—

(a) is contravening one or more applicable provisions, or

(b) has contravened one or more of those provisions in circumstances
that make it likely that the contravention will continue or be
repeated.

(2) 10The inspector may, if authorised, give the person a notice (an “improvement
notice”) requiring the person to remedy—

(a) the contravention, or

(b) as the case may be, the matters giving rise to the notice,

within the period specified in the notice.

(3) 15The improvement notice must—

(a) specify the applicable provision or provisions in question, and

(b) state that the inspector is of the opinion mentioned in sub-paragraph
(1), and why.

(4) The period specified under sub-paragraph (2) must end no earlier than the
20period within which an appeal against the notice may be brought under
paragraph 6.

(5) In this paragraph “applicable provision” means—

(a) any of the relevant statutory provisions other than—

(i) a provision of the Nuclear Safeguards Act 2000, or

(ii) 25any provision of nuclear regulations identified in accordance
with section 54(9) (requirement for provisions made for
nuclear security purposes or nuclear safeguards purposes, or
both, to be identified as such), or

(b) any condition attached to a nuclear site licence under section 4 of the
30Nuclear Installations Act 1965 relating to a site in England, Wales or
Scotland.

Prohibition notices

4 (1) This paragraph applies where an inspector is of the opinion that—

(a) relevant activities, as they are being carried on by or under the
35control of a person, involve a risk of serious personal injury, or

(b) relevant activities which are likely to be carried on by or under the
control of a person will, as so carried on, involve a risk of serious
personal injury.

(2) The inspector may, if authorised, give the person a notice (“a prohibition
40notice”) directing that the activities to which the notice relates must not be
carried on by or under the control of the person unless the following have
been remedied—

(a) the matters specified in the notice under sub-paragraph (3)(b), and

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(b) any associated contraventions of provisions specified under sub-
paragraph (3)(c).

(3) A prohibition notice must—

(a) state that the inspector is of the opinion mentioned in sub-paragraph
5(1);

(b) specify the matters which in the inspector’s opinion give, or, as the
case may be, will give rise to the risk mentioned in that sub-
paragraph;

(c) where in the inspector’s opinion any of those matters involves or, as
10the case may be, will involve a contravention of any applicable
provision—

(i) specify the provision or provisions in question, and

(ii) state that the inspector is of that opinion, and why.

(4) A prohibition notice takes effect—

(a) 15at the end of the period specified in the notice, or

(b) if the notice so specifies, immediately.

(5) In this paragraph—

Improvement and prohibition notices: supplementary

5 (1) In this paragraph “a notice” means an improvement notice or a prohibition
notice.

(2) 25A notice may (but need not) include directions as to the measures to be taken
to remedy any contravention or matter to which the notice relates.

(3) Any such directions—

(a) may be expressed by reference to any approved code of practice, and

(b) may afford the person to whom the notice is given a choice between
30different ways of remedying the contravention or matter.

(4) Sub-paragraph (5) applies where—

(a) any of the applicable provisions applies to a building or any matter
connected with a building, and

(b) an inspector proposes to serve an improvement notice relating to a
35contravention of that provision in connection with the building or
matter.

For this purpose “applicable provision” has the same meaning as in
paragraph 3.

(5) The notice must not direct any measures to be taken to remedy the
40contravention that are more onerous than any measures that would be
necessary to secure conformity with—

(a) current new-build requirements, or

(b) if the provision in question imposes specific requirements that are
more onerous than the requirements of any current new-build
45requirements, those specific requirements.

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(6) In sub-paragraph (5), “current new-build requirements”, in relation to a
building, or matter connected with a building, means the requirements of
any building regulations for the time being in force to which the building or
matter would be required to conform if the relevant building were being
5newly erected.

(7) In sub-paragraph (6), “building regulations”, in relation to Scotland, has the
meaning given by section 1 of the Building (Scotland) Act 2003 (asp 8)2003 (asp 8).

(8) Where an improvement notice or a prohibition notice which is not to take
immediate effect has been given—

(a) 10the notice may be withdrawn by an inspector at any time before the
end of the period specified in it under paragraph 3(2) or 4(4)(a), and

(b) the period so specified may be extended or further extended by an
inspector at any time when an appeal against the notice is not
pending.

15Appeal against improvement or prohibition notice

6 (1) In this paragraph, “a notice” means an improvement notice or a prohibition
notice.

(2) A person to whom a notice is given may appeal within such period after the
notice is given as may be prescribed by regulations made by the Secretary of
20State (“the prescribed period”).

(3) An appeal under this paragraph lies to an employment tribunal.

(4) On an appeal, the tribunal may—

(a) cancel the notice, or

(b) confirm it—

(i) 25in its original form, or

(ii) with such modifications as, in the circumstances, the tribunal
considers appropriate.

(5) Where an appeal under this paragraph is brought against an improvement
notice within the prescribed period, the operation of the notice is suspended
30until the appeal is withdrawn or finally disposed of.

(6) Where—

(a) an appeal under this paragraph is brought against a prohibition
notice within the prescribed period, and

(b) on the application of the appellant, the tribunal, so directs,

35the operation of the notice is suspended from the time the direction is given
until the appeal is withdrawn or finally disposed of.

(7) One or more assessors may be appointed for the purposes of any
proceedings brought before an employment tribunal under this paragraph.

Improvement and prohibition notices: offences

7 (1) 40It is an offence to contravene any requirement or prohibition imposed by an
improvement notice or a prohibition notice.

(2) A person who commits an offence under this paragraph is liable—

(a) on summary conviction—

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