Defence Reform Bill

Page 5, line 3, at end insert “, unmanned aerial systems, distributed common
ground systems, ground control and other stations used to support the operation
of unmanned aerial systems”

Page 5, line 6, after “contractor” insert “or any person who provides defence
procurement services to a contractor or to the Secretary of State for the purposes of
DE&S pursuant to the arrangements set out in section 1”

The above-named Lords give notice of their intention to oppose the Question that Clause 5
stand part of the Bill.

The above-named Lords give notice of their intention to oppose the Question that Clause 6
stand part of the Bill.

Insert the following new Clause—

“Immunity for contractor

(1)     The Secretary of State may by Order made under section 2 of the Crown
Proceedings (Armed Forces) Act 1987 revive section 10 of the Crown
Proceedings Act 1947 for the purposes of providing immunity for a
contractor.

(2)     Before making an order in accordance with the provisions of this section,
the Secretary of State shall publish and lay before Parliament a report on
the impact of making such an order on—

(a)   the procurement of defence equipment and modifications and
training facilities including material for urgent operational
requirements; and

(b)   the possibility of risk to the contractor of challenge, whether under
the Human Rights Act 1998 or under any other statutory provision,
arising from such procurement, whether at the time of the
procurement or at any future date.”

The above-named Lords give notice of their intention to oppose the Question that Clause 7
stand part of the Bill.

Page 35, line 5, leave out paragraphs 1 to 5 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

(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    (1)     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.

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

(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.”

The above-named Lords give notice of their intention to oppose the Question that Clause 8
stand part of the Bill.

Insert the following new Clause—

“Reporting obligations

Reporting obligation on contractors

In providing any defence procurement services, the contractor shall—

(a)   report annually to the Secretary of State or at any more frequent
intervals as the Secretary of State may specify on—procured under the arrangements set out in section 1; and

(i)   the technical characteristics;

(ii)   capabilities; and

(iii)   use of equipment and services,

  procured under the arrangements set out in section 1; and

(b)   ensure that any person who provides provision of goods or services
to a contractor or to the Secretary of State for the purposes of DE&S
pursuant to the arrangements set out in section 1 provides the
contractor with all information necessary to carry out the
contractor’s reporting obligation under paragraph (a).”

Insert the following new Clause—

“Reporting obligations relating to defence procurement services: consequential
amendments

(1)     In the Visiting Forces Act 1952, after section 8, insert—

(2)     In the Regulation of Investigatory Powers Act 2000, after section 58,
insert—

Insert the following new Clause—

“Reporting obligation on use of premises and property

(1)     On receipt of any report provided by a scrutiny group established under
section 8A of the Visiting Forces Act 1952, the Secretary of State shall—

(a)   lay a copy of the report before Parliament;

(b)   lay a copy of the report before the Intelligence and Security
Committee; and

(c)   lay a copy of the government’s response to the report before
Parliament, making particular reference to—

(i)   the impact of use of premises and property by visiting forces
on any arrangements made or proposed under section 1;
and

(ii)   whether any provision should be made under section 8 of
the Visiting Forces Act 1952 or any other enactment or
arrangement to regulate use of premises and property by
visiting forces.

(2)     On receipt of any report provided by the Interception Commissioner under
section 58A of the Regulation of Investigatory Powers Act 2000, the
Secretary of State shall—

(a)   lay a copy of the report before Parliament;

(b)   lay a copy of the report before the Intelligence and Security
Committee; and

(c)   lay a copy of the government’s response to the report before
Parliament, making particular reference to—

(i)   the impact of use of premises and property by visiting forces
on any arrangements made or proposed under section 1;
and

(ii)   whether any provision should be made under section 8 of
the Visiting Forces Act 1952 or any other enactment or
arrangement to regulate use of premises and property by
visiting forces.”

The above-named Lords give notice of their intention to oppose the Question that Clause 9
stand part of the Bill.

The above-named Lords give notice of their intention to oppose the Question that Clause 10
stand part of the Bill.

Insert the following new Schedule—

“SCHEDULE 3A

SUPER-AFFIRMATIVE PROCEDURE FOR ORDERS UNDER PART 1

Prior consultation

1    (1)     If the Secretary of State is proposing to make an order to commence
Part 1 of this Act, the Secretary of State must undertake a consultation
with—

(a)   relevant persons whom the Secretary of State deems appropriate;

(b)   any persons or bodies recommended to the Secretary of State by
the House of Commons Defence Select Committee; and

(c)   such persons or organisations as appear to him to be
representative of interests substantially affected by the
proposals.

Draft order

2    (1)     If, after such a consultation, the Secretary of State considers it
appropriate to proceed with the making of the order, the Secretary of
State must lay before Parliament—

(a)   a draft order, and

(b)   a document which explains the order.

(2)     The Secretary of State may not act under this paragraph before the end
of the period of twelve weeks beginning with the day on which the
consultation began.

Draft order approved

3    (1)     The Secretary of State may make an order in the terms of the draft order
laid under section 2 if, after the expiry of the 40-day period, the draft
order is approved by a resolution of each House of Parliament.

(2)     But the procedure in section 4 is to apply to the draft order instead of the
procedure in this paragraph if—

(a)   either House of Parliament so resolves within the 30-day period,
or

(b)   a committee of either House charged with reporting on the draft
order so recommends within the 30-day period and the House to
which the recommendation is made does not by resolution reject
the recommendation within that period.

Scrutiny extended

4    (1)     The Secretary of State must have regard to—

(a)   any representations,

(b)   any resolution of either House of Parliament, and

(c)   the recommendations of the Defence Select Committee, and any
other recommendations of a committee of either House of
Parliament charged with reporting on the draft order, made
during the 60-day period with regard to the draft order.

(2)     If after the expiry of the 60-day period the draft order is approved by a
resolution of each House of Parliament, the Secretary of State may make
an order in the terms of the draft order.

(3)     If after the expiry of the 60-day period the Secretary of State wishes to
proceed with the draft order but with material changes, the Secretary of
State may lay before Parliament—

(a)   a revised draft order, and

(b)   a statement giving a summary of the changes proposed; and any
representations made to the Secretary of State under section 4.

(4)     If the revised draft order is approved by a resolution of each House of
Parliament, the Secretary of State may make an order in the terms of the
revised draft order.

5 However, a committee of either House charged with reporting on the
revised draft order may, at any time after the revised draft order is laid
under section 4(3) and before it is approved by that House under section
4(4), recommend under this section that no further proceedings be taken
in relation to the revised draft order.

Interpretation

6    (1)     For the purposes of this paragraph an order is made in the terms of a
draft order or revised draft order if it contains no material changes to its
provisions.

(2)     In this Schedule, references to the “30-day”, “40-day” and “60-day”
periods in relation to any draft order are to the periods of 30, 40 and 60
days beginning with the day on which the draft order was laid before
Parliament.

(3)     Account is to be taken of any time during which Parliament is dissolved
or prorogued or during which either House is adjourned.”

The above-named Lords give notice of their intention to oppose the Question that Clause 11
stand part of the Bill.

The above-named Lords give notice of their intention to oppose the Question that Clause 12
stand part of the Bill.

Insert the following new Clause—

“Report on volunteer reserve forces

In Part 11 of the Reserve Forces Act 1996 (reserve associations), after section
113 insert—

Page 24, leave out line 21 and insert “single source contract regulations”

Page 24, line 34, leave out subsection (6) and insert—

“( )     The provision that may be made under subsection (1) by virtue of section 42(2) includes power to specify penalties of different amounts according to
the value of the contract to which the contravention relates.”

Page 24, line 37, leave out subsection (7)

Page 26, line 38, leave out “regulations under this Part” and insert “single source
contract regulations”

Page 27, line 33, leave out subsection (4) and insert—

“(4)     A statutory instrument containing—

(a)   the first single source contract regulations,

(b)   provision made by virtue of section 14(2), (6) or (8) (contracts to
which single source contract regulations apply), whether alone or
with other provision, or

(c)   provision made by virtue of section 33 (amount of penalty),
whether alone or with other provision,

may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.

(5)     Any other statutory instrument containing single source contract
regulations is subject to annulment in pursuance of a resolution of either
House of Parliament.”

Page 31, line 35, at end insert—

“( )     No statutory instrument containing an order under subsection (1) in
respect of Part 1 (with or without provision under subsection (4)) is to be
made unless a draft of the instrument has been laid before, and approved
by a resolution of, each House of Parliament.”

Page 31, line 35, at end insert—

“(2A)    No statutory instrument containing an order under subsection (1) in
respect of Part 1 (with or without provision under subsection (4)) is to be
made unless the Secretary of State has first satisfied the conditions set out
in subsection (2B) below and, subsequent to this, a draft of the instrument
has been laid before, and approved by Parliament, in strict accordance with
the super-affirmative procedure as set out in Schedule (Super-affirmative
procedure for orders under Part 1).

(2B)    The conditions that the Secretary of State must fulfil are as follows—

(a)   to publish and lay before Parliament an evidence-based impact
assessment which must assess the risks and merits of at least the
following options—

(i)   DE&S as modified by the Secretary of State in 2014,

(ii)   the arrangements for provision of defence procurement
services as laid out in Part 1 of the Defence Reform Act 2014
(“GoCo”), and

(iii)   other options as may be recommended following
consultation with the House of Commons Defence Select
Committee (Defence Select Committee);

(b)   to lay before Parliament an independent report setting out the
comparative advantages of the defence procurement arrangements
referred to in paragraph (a)(i) to (iii) above;

(c)   to require the Defence Select Committee to review and scrutinise
the independent report referred to in paragraph (b) and report on
its findings to Parliament; and

(d)   to lay before Parliament such other documents as the Secretary of
State may deem necessary to properly inform Parliament’s
decision.”