House of Commons Amendments

Session 2013 - 14
Internet Publications
Other Bills before Parliament

51

House of Commons

Tuesday 15 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

30

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

John Woodcock

Alison Seabeck

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

Public Bill Committee: 15 October 2013
52

Defence Reform Bill, continued

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.’.

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.’.

Public Bill Committee: 15 October 2013
53

Defence Reform Bill, continued

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)’.

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.’.

Public Bill Committee: 15 October 2013
54

Defence Reform Bill, continued

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’.

Alison Seabeck

41

Clause  27,  page  19,  line  43,  at end add ‘so long as that direction does not place

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

Mr Philip Dunne

24

Clause  28,  page  20,  line  18,  after ‘State’ insert ‘, an authorised person’.

Mr Philip Dunne

25

Clause  28,  page  20,  line  40,  after ‘State’ insert ‘, an authorised person’.

Public Bill Committee: 15 October 2013
55

Defence Reform Bill, continued

Alison Seabeck

42

Clause  35,  page  25,  line  29,  at end add ‘and to a primary contractor on request of

that primary contractor’.

Mr Philip Dunne

26

Clause  35,  page  25,  line  33,  leave out subsection (5).

Mr Philip Dunne

27

Schedule  5,  page  44,  line  32,  after ‘State’ insert ‘, an authorised person’.

Mr Philip Dunne

28

Schedule  5,  page  45,  line  7,  after ‘State’ insert ‘, an authorised person’.

Alison Seabeck

Mr Kevan Jones

12

Schedule  5,  page  45,  line  10,  leave out lines 10 and 11 and insert—

    ‘(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.’.

Alison Seabeck

Mr Kevan Jones

13

Schedule  5,  page  45,  line  40,  after ‘being’ insert ‘lawfully’.

Alison Seabeck

Mr Kevan Jones

14

Schedule  5,  page  46,  line  16,  leave out ‘in response to a request’.

Alison Seabeck

Mr Kevan Jones

15

Schedule  5,  page  46,  line  16,  at end insert ‘where there is a requirement to disclose

notwithstanding available defences,’.

Public Bill Committee: 15 October 2013
56

Defence Reform Bill, continued

Alison Seabeck

Mr Kevan Jones

16

Schedule  5,  page  46,  line  28,  at end add—

‘(1)
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.

(2)
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.’.

Alison Seabeck

Mr Kevan Jones

17

Schedule  5,  page  47,  line  13,  at end add—

‘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

43

Clause  38,  page  26,  line  10,  at end insert—

‘(1A)
Before undertaking a review under this section the SSRO must consult the

industry body and those persons as it thinks fit and must have regard to the results

of that consultation.

(1B)
Where by virtue of subsection (2) the SSRO has held consultations in relation to

proposals for this Part and regulations under this Part, it must, when

recommending changes to the Secretary of State, in accordance with subsection

(4) below, publish a report of the results of those consultations, and of its

conclusions.’.

Public Bill Committee: 15 October 2013
57

Defence Reform Bill, continued

Alison Seabeck

44

Clause  38,  page  26,  line  16,  at end insert—

‘(3A)
Changes made to this Part and to the regulations under this Part must not be made

unless a draft of a statutory instrument containing them has been laid before

Parliament and approved by a resolution of each House of Parliament. The

Secretary of State must when laying the instrument before Parliament also

publish the reasons for any differences between the recommendations made by

SSRO and terms of the draft statutory instrument so laid.’.

Alison Seabeck

45

Clause  41,  page  27,  line  15,  at end insert—

‘“industry body” means any body which appears to the Secretary of State

appropriate to represent manufacturers and suppliers;

“manufacture” includes assembly, install and service and “manufacturer”

means any person who manufactures goods for defence purposes;

“supplier” means any person who supplies goods, works or services for

defence purposes.’.

Mr Kevan Jones

48


Clause  43,  page  28,  line  36,  at end insert—

‘(7A)
After Section 62, insert—

“62A
Deferral of call-out liability

(1)
A member of the Reserve Forces who is self-employed may defer

liability for call-out for a period of up to 12 months if they show to the

satisfaction of the Defence Council or any authorised officer that there is

good reason why their liability should be deferred.

(2)
A member of the Reserve Forces who is employed by a company,

organisation or person whose main business is in the manufacturing or

provision of equipment, works or services for defence purposes may

defer liability for call-out for a period of up to 12 months if they show to

the satisfaction of the Defence Council or any authorised officer that

there is good reason why their liability should be deferred.”.’.

Mr Kevan Jones

49


Clause  44,  page  29,  line  23,  at end insert ‘, or

‘(d)
undertakes activities as a special member of the reserve forces

(“Sponsored Reserves”).’.



© Parliamentary copyright	Revised 15 October 2013