House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

37

House of Commons

Thursday 10 October 2013

Public Bill Committee

New Amendments handed in are marked thus

Amendments which will comply with the required notice period at their next appearance

Defence Reform Bill

Note

The Amendments have been arranged in accordance with the Order of the

Committee [3 September 2013]

Alison Seabeck

Mr Kevan Jones

11

Clause  6,  page  5,  line  28,  after ‘State’ insert ‘, in accordance with any instruction or

guidance that the Secretary of State may provide.’.

Alison Seabeck

Mr Kevan Jones

9

Schedule  2,  page  34,  leave out from line 5 to line 7 on page 36 and insert—

‘Information to which Schedule applies

1    (1)
This Schedule applies to information if—

(a)
it was obtained by the Secretary of State or the contractor under or by

virtue of this Part or otherwise in connection with the carrying out of

functions under or by virtue of this Part, or is derived to any extent

from information that was so obtained, and

(b)
it relates to the affairs of an individual or to a particular business,

      (2)
Information ceases to be information to which this Schedule applies—

(a)
in the case of information relating to the affairs of an individual, when

the individual dies, and

Public Bill Committee: 10 October 2013
38

Defence Reform Bill, continued

(b)
in the case of information relating to a particular business, on the

earlier of—

(i)
the day on which the business ceases to be carried on, and

(ii)
the end of the period of 30 years beginning with the date on

which the information was obtained by the Secretary of State

or the contractor.

Offence of disclosing information

2    (1)
A person commits an offence if—

(a)
the person discloses information, or

(b)
information is disclosed or lost as a result of the person‘s failure to

prevent the disclosure or loss through measures taken under sub-

paragraph (2), and

(c)
it is information to which this Schedule applies.

      (2)
A person holding information to which this Schedule applies must take

adequate technical and organisational measures against unauthorised or

unlawful disclosure of, and against accidental loss of, the information.

      (3)
Sub-paragraph (1) is subject to paragraphs 4 to 6.

      (4)
A person who is guilty of an offence under sub-paragraph (1) is liable—

(a)
on summary conviction, to imprisonment for not more than 12 months

or to a fine not exceeding the statutory maximum (or both), or

(b)
on conviction on indictment, to imprisonment for not more than two

years or to a fine (or both).

      (5)
The reference in sub-paragraph (4)(a) to 12 months is to be read as a reference

to 6 months—

(a)
in its application to England and Wales in relation to an offence

committed before the date on which section 154(1) of the Criminal

Justice Act 2003 comes into force, and

(b)
in its application to Northern Ireland.

      (6)
If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act

2012 comes into force on or before the day on which this Act is passed—

(a)
Section 85 of that Act (removal of limit on certain fines on conviction

by magistrates’ court) applies in relation to an offence under sub-

paragraph (1) on and after that day as if it were a relevant offence (as

defined in section 85(3) of that Act), and

(b)
regulations described in section 85(11) of that Act may amend, repeal

or otherwise modify sub-paragraph (43)(a).

Disclosure with consent

3
Paragraph 2(1) does not apply to a disclosure made with the consent of—

(a)
the individual, or

(b)
the person for the time being carrying on the business (or, where there

are two or more such persons, all those persons).

Disclosure of information already available to public

4
Paragraph 2(1) does not apply to information that has been made available to

the public by being lawfully disclosed in circumstances in which, or for a

purpose for which, disclosure is not precluded by this Schedule.

Public Bill Committee: 10 October 2013
39

Defence Reform Bill, continued

Other permitted disclosures

5    (1)
Paragraph 2(1) does not apply where information is disclosed—

(a)
for the purpose of facilitating the carrying out of functions of a

Minister of the Crown (within the meaning of the Ministers of the

Crown Act 1975),

(b)
for the purpose of facilitating the carrying out by the SSRO of any of

its functions,

(c)
for the purpose of enabling or assisting an authorised person to carry

out any of its functions,

(d)
for the purpose of enabling or assisting a contractor to provide defence

procurement services to the Secretary of State by virtue of

arrangements mentioned in section 1,

(e)
to the person from whom the information was obtained or, where that

person is associated with one or more other persons, to any such

associated person,

(f)
by a person to whom the information is disclosed by virtue of

paragraph (e),

(g)
under the Freedom of Information Act 2000 where there is a

requirement to disclose notwithstanding available defences,

(h)
in connection with the investigation of a criminal offence or for the

purposes of criminal proceedings,

(i)
for the purposes of civil proceedings,

(j)
in pursuance of an EU obligation,

(k)
for the purpose of facilitating the carrying out by the Comptroller and

Auditor General of functions, or

(l)
in anonymised form.

      (2)
In sub-paragraph (1)(d), “contractor” and “defence procurement services”

have the same meanings as in Part 1.

      (3)
For the purposes of sub-paragraph (1)(l), information is disclosed in

anonymised form if no individual or other person to whom the information

relates can be identified from it.

      (4)
For the purposes of sub-paragraph (1), disclosures under paragraph 5(1)(a) to

(d) and paragraph 5(1)(h) to (k) must be strictly necessary for the purpose,

made in confidence and paragraph 2(1) applies to the recipient of that

disclosure.

      (5)
Prior to making a disclosure under paragraph 5(1)(a) to (d) or paragraph

5(1)(h) to (k), the individual or business to which the information relates must

be notified of the intended disclosure and must have the opportunity to

challenge that disclosure.

Power to prohibit disclosure

6    (1)
The Secretary of State may by order—

(a)
prohibit the disclosure of information to which this Schedule applies;

(b)
provide that a prohibition imposed by virtue of paragraph (a) is subject

to exceptions corresponding to those set out in paragraphs 3 to 5 (other

than paragraph 5(1)(g));

(c)
provide that a person who discloses information in contravention of

such a prohibition commits an offence punishable—

(i)
on summary conviction, with imprisonment for not more than

12 months or with a fine not exceeding the statutory

maximum (or both), or

Public Bill Committee: 10 October 2013
40

Defence Reform Bill, continued

(ii)
on conviction on indictment, with imprisonment for not more

than two years or with a fine (or both).

      (2)
The reference in sub-paragraph (1)(c)(i) to 12 months is to be read as a

reference to six months—

(a)
in its application to England and Wales in relation to an offence

committed before the date on which section 154(1) of the Criminal

Justice Act 2003 comes into force, and

(b)
in its application to Northern Ireland.

      (3)
An order under sub-paragraph (1) may repeal paragraphs 2 to 5.

      (4)
If section 85(1) of the Legal Aid, Sentencing and Punishment of Offenders Act

2012 comes into force on or before the day on which this Act is passed—

(a)
section 85 of that Act (removal of limit on certain fines on conviction

by magistrates’ court) applies in relation to the power under sub-

paragraph (1)(c)(i) on or after that day as if it were a relevant power

(as defined in section 85(3) of that Act), and

(b)
regulations described in section 85(11) of that Act may amend, repeal

or otherwise modify sub-paragraph (1)(c)(i).

      (5)
An order under sub-paragraph (1) is to be made by statutory instrument.

      (6)
A statutory instrument containing an order under sub-paragraph (1) may not be

made unless a draft of it has been laid before, and approved by a resolution of,

each House of Parliament.

Authority to inspect measures to protect information

7    (1)
A person holding information to which this Schedule applies must permit an

industry body, acting on behalf of the owner of that information, within six

months of the relevant date and subsequently every three years, on reasonable

prior written notice and on reasonable confidentiality and other undertakings,

to audit and inspect the person‘s technical and organisational measures for

protecting that information in compliance with this Schedule.

      (2)
A person holding information to which this Schedule applies must comply

with all reasonable requests or directions by the industry body to enable the

industry body to verify that the person is in compliance with their obligations

under this Schedule.

      (3)
The industry body must provide a report of its findings on each inspection to

the Secretary of State within three months of that inspection. The industry

body may publish each report within six months of that inspection and must

include with each report any response made by the Secretary of State to that

report.’.

Alison Seabeck

30


Clause  13,  page  9,  line  20,  leave out ‘good’.

Public Bill Committee: 10 October 2013
41

Defence Reform Bill, continued

John Woodcock

29


Clause  13,  page  9,  line  21,  at end insert—

‘(aa)
that government expenditure on qualifying defence contracts

shall be made with due regard to promoting the growth of the UK

defence industrial base and its associated supply chains; and’.

Alison Seabeck

46


Schedule  4,  page  39,  line  17,  after ‘Secretary of State’, insert ‘and ratified by the

House of Commons Defence Select Committee’.

Alison Seabeck

47


Schedule  4,  page  39,  line  34,  at end add—

    ‘(4)
Sections 170, 171, 173, 174, subsections (1) to (4) and (7) of section 175, 176

and 177 of the Companies Act 2006 shall apply to the executive members of

the SSRO as if they were directors of a company according to the provisions

of that Act.’.

Alison Seabeck

31


Clause  14,  page  9,  line  30,  at end insert—

‘(1A)
Before making any regulations under this Part, the Secretary of State must consult

with the industry body and those persons as he thinks fit and must have regard to

the results of the consultation.’.

Alison Seabeck

32


Clause  14,  page  10,  line  2,  leave out ‘and’ and insert—

‘(aa)
the contract is not made under the terms of a framework

agreement that was concluded before the relevant date,

where that agreement determines the basis for pricing

contracts placed under it, unless the Secretary of State

and the primary contractor agree that the contract is to be

a qualifying defence contract,

(ab)
the invitation to tender for the contract work identifies

the prospective contract as a contract to which this

subsection applies, and’.

Alison Seabeck

33


Clause  14,  page  10,  line  21,  at end insert ‘so long as that direction does not place

suppliers in one country at a disadvantage compared to those in other countries.’.

Public Bill Committee: 10 October 2013
42

Defence Reform Bill, continued

Alison Seabeck

34


Clause  15,  page  10,  leave out lines 39 and 40.

Alison Seabeck

35


Clause  18,  page  13,  line  19,  after ‘that’, insert ‘, if the achievement of a fair and

reasonable contract profit rate for a qualifying defence contract at the time of pricing was

frustrated because the information supplied or made accessible by one party to the other

at the time of pricing, and on which that contract profit rate was based in whole or in part,

was materially inaccurate or incomplete.’.

Mr Philip Dunne

18

Clause  18,  page  13,  line  20,  leave out from ‘subsection (4)’ to ‘, determine’ in line

22.

Alison Seabeck

36


Clause  19,  page  14,  line  5,  after ‘adjustment for that year’, insert ‘and the reasons

for any changes,’.

Alison Seabeck

37


Clause  20,  page  14,  line  14,  leave out subsection (1) and insert—

‘(1)
Single source regulations must contain measures for determining whether costs

and provisions are allowable costs and provisions under qualifying defence

contracts. The SSRO may issue guidance on the determination of allowable costs

and provisions, including adjustments to implement profit at only one level

within a number of group undertaking of which the contractor is one in relation

to allowable costs and provisions under the contract (see step 3 at section 17(2)).’.

Mr Philip Dunne

19

Clause  20,  page  14,  line  33,  leave out paragraph (a).

Mr Philip Dunne

20

Clause  22,  page  15,  line  25,  after the second ‘records’ insert ‘(whether in hard or

electronic form)’.

Public Bill Committee: 10 October 2013
43

Defence Reform Bill, continued

Alison Seabeck

38


Clause  22,  page  16,  line  21,  leave out ‘may’ and insert ‘must’.

Mr Philip Dunne

21

Clause  23,  page  16,  line  42,  at end insert—

‘( )
The regulations may provide for a requirement to provide a specified kind of

report to apply, in the case of contracts of a specified kind, only at the request of

the Secretary of State or an authorised person.


“Specified” means specified in the regulations.’.

Alison Seabeck

39


Clause  23,  page  16,  line  42,  at end insert—

‘(e)
may make provision for advance agreements between a primary

contractor and the Secretary of State on the methodologies and processes

used to generate those reports.’.

Alison Seabeck

40


Clause  24,  page  17,  line  10,  after ‘planning’, insert ‘applicable to qualifying

defence contracts’.

Mr Philip Dunne

That Clause 25 be transferred to line 9 on page 19.

Mr Philip Dunne

22

Clause  25,  page  18,  line  11,  leave out ‘or 24’ and insert ‘, 24 or 26’.

Mr Philip Dunne

23

Clause  25,  page  18,  line  31,  leave out ‘or 24’ and insert ‘, 24 or 26’.



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