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Defence Reform BillPage 40

(3) A person may at any time resign from office as a non-executive member by
giving notice to the Secretary of State.

(4) The Secretary of State may at any time remove a member from office on any
of the following grounds—

(a) 5incapacity;

(b) misconduct (which may include breach of a term or condition of the
member’s appointment);

(c) failure to carry out his or her duties.

(5) The Secretary of State may suspend a person from office as a non-executive
10member if it appears to the Secretary of State that there are or may be
grounds to remove the person from office under sub-paragraph (4).

(6) A person who ceases to be a non-executive member is eligible for
reappointment.

Suspension from office

4 (1) 15This paragraph applies where a person is suspended under paragraph 3(5).

(2) The Secretary of State must give notice of the decision to the person; and the
suspension takes effect on receipt by the person of the notice.

(3) The notice may be—

(a) delivered in person (in which case, the person is taken to receive it
20when it is delivered), or

(b) sent by first-class post to the person’s last known address (in which
case, the person is taken to receive it on the third day after the day on
which it is posted).

(4) The initial period of suspension must not exceed six months.

(5) 25The Secretary of State may at any time review the suspension.

(6) The Secretary of State—

(a) must review the suspension if requested in writing by the person to
do so, but

(b) need not review the suspension less than three months after the
30beginning of the initial period of suspension.

(7) Following a review during a period of suspension, the Secretary of State
may—

(a) revoke the suspension, or

(b) suspend the person for another period of not more than six months
35from the expiry of the current period.

(8) The Secretary of State must revoke the suspension if the Secretary of State
decides—

(a) that there are no grounds to remove the person from office under
paragraph 3(4), or

(b) 40that there are grounds to do so but does not remove the person from
office under that provision.

5 (1) Where a person is suspended from office as the chair under paragraph 3(5),
the Secretary of State may appoint a non-executive member as interim chair
to exercise the chair’s functions.

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(2) Appointment as interim chair is for a term not exceeding the shorter of—

(a) the period ending with either—

(i) the appointment of a new chair, or

(ii) the revocation or expiry of the existing chair’s suspension,
5and

(b) the remainder of the interim chair’s term as a non-executive member.

(3) A person who ceases to be the interim chair is eligible for reappointment.

Payment of non-executive members

6 The SSRO may, with the approval of the Secretary of State—

(a) 10pay remuneration and allowances to the non-executive members,
and

(b) pay or provide for the payment of pensions, allowances and
gratuities to or in respect of a person who is or has been a non-
executive member of the SSRO.

15Staff etc

7 (1) The SSRO may appoint employees.

(2) The SSRO may pay its employees remuneration and allowances.

(3) Employees of the SSRO are to be appointed on such other terms and
conditions as the SSRO may determine.

(4) 20The SSRO may pay or provide for the payment of pensions, allowances and
gratuities to or in respect of any person who is or has been an employee of
the SSRO.

8 (1) The SSRO may make arrangements—

(a) for persons to provide professional services to the SSRO;

(b) 25for persons to be seconded to the SSRO.

(2) The arrangements may, with the approval of the Secretary of State, include
provision for payments by the SSRO.

Superannuation

9 (1) In Schedule 1 to the Superannuation Act 1972 (kinds of employment to which a
30scheme under section 1 of that Act can apply), at the end of the list of “Other Bodies”
insert

(2) The SSRO must pay to the Minister for the Civil Service, at such times as the
Minister may direct, such sums as the Minister may determine in respect of
35any increase attributable to sub-paragraph (1) in the sums payable out of
money provided by Parliament under the Superannuation Act 1972.

Procedure

10 (1) The SSRO may determine its own procedure; but this is subject to sub-
paragraphs (2) to (6).

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(2) A function of the SSRO under or by virtue of a provision listed in sub-
paragraph (3) (provisions for the making of determinations, the giving of
opinions etc by the SSRO) is exercisable by a committee appointed under
paragraph 11.

(3) 5The provisions are—

(4) A committee appointed for the purposes of sub-paragraph (2) must consist
of three persons appointed by the chair or any other member who has been
authorised (generally or specifically) for that purpose.

(5) At least one of the members of such a committee must be a person who is not
20a member or employee of the SSRO.

(6) A determination by such a committee—

(a) is to be made on the basis of a majority of the committee, and

(b) is final.

(7) The validity of any act of the SSRO is not affected—

(a) 25by any vacancy among the members, or

(b) by any defect in the appointment of a member.

Committees

11 (1) The SSRO—

(a) may appoint committees, and

(b) 30may determine the procedure of its committees (subject to paragraph
10).

(2) A committee may include persons who are not members or employees of the
SSRO.

(3) The SSRO may pay remuneration and allowances to any person who—

(a) 35is a member of a committee, but

(b) is not an employee of the SSRO,

whether or not that person is a non-executive member of the SSRO.

Accounts and audit

12 (1) The SSRO must—

(a) 40keep proper accounts and proper records in relation to them, and

(b) prepare a statement of accounts in respect of each financial year.

(2) The Secretary of State may give directions to the SSRO about—

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(a) the content and form of the statement, and

(b) the methods and principles to be applied in preparing it.

(3) The SSRO must send each statement to the Comptroller and Auditor
General within such period after the end of the financial year to which the
5accounts relate as the Secretary of State may direct.

(4) The Comptroller and Auditor General must—

(a) examine, certify and report on each statement, and

(b) send a copy of each report and certified statement to the Secretary of
State.

10Annual report

13 (1) The SSRO must prepare a report on its activities during each financial year.

(2) The report must include the statement of accounts in respect of that year.

(3) The report relating to a financial year must be prepared as soon as possible
after the end of the financial year.

(4) 15The SSRO must send the report to the Secretary of State.

(5) The Secretary of State must lay the report before Parliament.

Powers

14 (1) The SSRO may do anything which is calculated to facilitate the carrying out
of its functions or which is incidental to or conducive to the carrying out of
20those functions; but this is subject to sub-paragraph (2).

(2) The SSRO may not borrow money, other than temporarily by way of
overdraft up to a limit approved by the Secretary of State.

Seal and evidence

15 (1) The application of the SSRO’s seal must be authenticated by the signature of
25the chief executive or any other member of the SSRO who has been
authorised (generally or specifically) for that purpose.

(2) A document purporting to be duly executed under the SSRO’s seal or signed
on its behalf—

(a) is to be received in evidence, and

(b) 30is to be taken to be executed or signed in that way, unless the
contrary is proved.

Finance

16 (1) The Secretary of State may make to the SSRO such payments out of money provided
by Parliament as the Secretary of State considers appropriate.

(2) 35Payments under sub-paragraph (1) may be made at such times, and subject
to such conditions, as the Secretary of State considers appropriate.

Status

17 (1) The SSRO is not to be regarded—

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(a) as the servant or agent of the Crown, or

(b) as enjoying any status, immunity or privilege of the Crown.

(2) The SSRO’s property is not to be regarded as property of, or property held
on behalf of, the Crown.

(3) 5Service as a member or employee of the SSRO is not service in the civil
service of the State.

Parliamentary Commissioner

18 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc
subject to investigation), at the appropriate place insert—

Disqualification

19 In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975
(bodies of which all members are disqualified)—

(a) at the appropriate place insert—

(b) omit the entry for The Review Board for Government Contracts.

20 In Part 2 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (bodies of which all members are disqualified)—

(a) at the appropriate place insert—

(b) omit the entry for The Review Board for Government Contracts.

Freedom of information

21 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
authorities to which Act applies)—

(a) 25at the appropriate place insert—

(b) omit the entry for The Review Board for Government Contracts.

Section 37

SCHEDULE 5 Restrictions on disclosing information

30Information to which Schedule applies

1 (1) This Schedule applies to information if—

(a) it was obtained by the Secretary of State or the SSRO 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
35from information that was so obtained,

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

(c) it is of a kind specified in single source contract regulations.

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

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

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

(i) 5the 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 SSRO.

Offence of disclosing information

2 (1) 10A person commits an offence if the person discloses information to which
this Schedule applies.

(2) Sub-paragraph (1) is subject to paragraphs 3 to 5.

(3) 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
15months 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).

(4) The reference in sub-paragraph (3)(a) to 12 months is to be read as a
20reference 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.

(5) 25If 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
30defined 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 (3)(a).

Disclosure with consent

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

(a) 35the 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
40to the public by being disclosed in circumstances in which, or for a purpose
for which, disclosure is not precluded by this Schedule.

Other permitted disclosures

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

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(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
5its 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
10arrangements 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
15paragraph (e),

(g) in response to a request under the Freedom of Information Act 2000,

(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) 20in 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”
25have 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.

Power to prohibit disclosure

6 (1) 30The 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) 35provide 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

(ii) 40on 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 6 months—

(a) in its application to England and Wales in relation to an offence
45committed 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.

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(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
5by 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) 10An 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.

Section 43

SCHEDULE 6 15Call out of members of reserve forces: transitional classes

1 The Reserve Forces Act 1996 is amended as follows.

2 (1) Section 129 (application of Act to persons currently serving in the reserve
forces or regular services).

(2) In subsection (1), for “the transitional class” substitute

(a) 20the original transitional class (see Parts 1 and 2 of that
Schedule), or

(b) the second transitional class (see Parts 3 and 4 of that
Schedule).

(3) In subsection (2), for “the transitional class” (in both places) substitute “the
25original transitional class”.

(4) In subsection (3)—

(a) for “In this Act “the transitional class”” substitute In this Act—

(b) at the end insert—

3 In the heading of that section, for “persons currently serving in the reserve
forces or regular services” substitute “members of transitional classes”.

4 (1) 35Schedule 9 (application of Act to transitional members) is amended as
follows.

(2) In the heading of Part 1, for “transitional class” substitute “original
transitional class”.

(3) In paragraphs 1(1) and (2) and 6, for “transitional class” substitute “original
40transitional class”.

(4) In paragraph 4(2), after “may” insert “at any time”.

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(5) In the heading of Part 2, for “transitional class” substitute “original
transitional class”.

(6) After paragraph 12 insert—

12A In the application of section 28(3)(a) to a special agreement entered
5into by a transitional member, for the reference to a period not
exceeding 12 months there shall be substituted a reference to a
period not exceeding 9 months.

(7) At the end insert—

Part 3 10The second transitional class of members of the reserve forces

(1) The second transitional class consists of persons who—

(a) are members of a reserve force,

(b) are not, and have not been, members of the original
transitional class,

(c) 15for the time being fall within paragraph 26 or 27, and

(d) have not made an election under paragraph 28.

(2) In this Part of this Schedule “the appointed day” means the day
on which paragraph 4(7) of Schedule 6 to the Defence Reform Act
2013 (which inserts this Part of this Schedule) comes into force.

20A person who, immediately before the appointed day, was a
member of a reserve force falls within this paragraph if—

(a) the person has remained a member of that force without
interruption since that time, and

(b) the person has not extended his or her service in, or
25become an officer of, that force since that time.

A person who becomes a member of a reserve force on or after the
appointed day, on transfer to the reserve from the regular services,
falls within this paragraph if—

(a) the person joined the regular services before the appointed
30day and did not re-enlist, re-engage or extend his or her
service, or become an officer, in the regular services on or
after that day,

(b) the person has remained a member of the reserve force
concerned without interruption since being transferred
35from the regular services, and

(c) the person has not extended his or her service in, or
become an officer of, that force since being so transferred.

(1) A person who is a member of the second transitional class may
elect to cease to be a member of that class.

(2) 40A person serving in the regular services who—

(a) joined those services before the appointed day, and

(b) has not re-enlisted, re-engaged or extended his or her
service, or become an officer, on or after that day,

may at any time elect not to become a member of the second
45transitional class on transfer to the reserve.

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(3) An election under this paragraph must be made in the prescribed
manner.

(4) A person who has made an election under sub-paragraph (1)
ceases to be a member of the second transitional class.

(5) 5A person who has made an election under sub-paragraph (2) does
not become a member of the second transitional class.

(6) An election under this paragraph is irrevocable.

Part 4 Application of Act to members of the second transitional class

10Parts 4 and 6 of this Act apply in relation to members of the second
transitional class in accordance with this Part of this Schedule.

Section 28(3)(a) (special agreements: maximum period of service)
applies in relation to a special agreement entered into by a
member of the second transitional class as if for “12 months” there
15were substituted “9 months”.

(1) Section 56 (call out for certain purposes) applies in relation to the
call out of members of the second transitional class as if the power
conferred on the Secretary of State by subsection (1B) were limited
to the powers described in sub-paragraphs (2) and (3).

(2) 20The first power is to make an order authorising the calling out of
members of a reserve force where it appears to the Secretary of
State that it is necessary or desirable to use armed forces—

(a) on operations outside the United Kingdom for the
protection of life or property, or

(b) 25on operations anywhere in the world for the alleviation of
distress or the preservation of life or property in time of
disaster or apprehended disaster.

(3) The second power is to make an order authorising the calling out
of members of a reserve force for the purposes of carrying out
30work where—

(a) the work is approved in accordance with instructions
issued by the Defence Council under the Defence (Armed
Forces) Regulations 1939 as being urgent work of national
importance, and

(b) 35the Defence Council have by order under those
Regulations authorised members of any forces to be
temporarily employed in such work.

Section 57 (maximum duration of service for call out under section
56) applies in relation to members of the second transitional class
40as if—

(a) in subsection (4), for “12 months” there were substituted “9
months”,

(b) in subsection (6), for “12 months” there were substituted “9
months”,

(c) 45in subsection (8)(c), for “6 months” there were substituted
“3 months”, and

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