Defence Reform Bill (HL Bill 90)

(a) any foreign property, right or liability is acquired or incurred by the
transferor in respect of any other property, right or liability, and

(b) by virtue of this paragraph, the transferor holds the other property
or right for the benefit of another person or is required to discharge
5the liability on behalf of another person,

the property, right or liability acquired or incurred immediately becomes the
property, right or liability of that other person.

(5) Sub-paragraphs (1) to (4) have effect in relation to foreign property, rights or
liabilities transferred to a person under sub-paragraph (4) as they have effect
10in relation to property, rights or liabilities transferred in accordance with a
transfer scheme.

(6) References in this paragraph to foreign property, or to a foreign right or
liability, are references to any property, right or liability as respects which an
issue arising in any proceedings would be determined (in accordance with
15the rules of private international law) by reference to the law of a country or
territory outside the United Kingdom.

(7) Expenses incurred by a transferor under this paragraph must be met by the
transferee.

(8) An obligation imposed under this paragraph in relation to property, rights
20or liabilities is enforceable as if contained in a contract between the
transferor and the transferee.

Incidental etc provision

5 A transfer scheme may—

(a) include incidental, supplementary and consequential provision;

(b) 25make transitory or transitional provision or savings;

(c) make different provision for different purposes;

(d) make provision subject to exceptions.

Modification of transfer schemes

6 (1) The Secretary of State may modify a transfer scheme.

(2) 30But if a transfer under the scheme has taken effect, any modification that
relates to the transfer may be made only with the agreement of the person
affected by the modification.

(3) A modification takes effect from a date specified by the Secretary of State
(which may be the date the original scheme came into effect).

35Interpretation etc

7 In this Schedule—

• “designated”, in relation to a transfer scheme, means specified in or
  determined in accordance with the scheme;

• “primary legislation” means—

  (a)

  40an Act of Parliament,

  (b)

  an Act of the Scottish Parliament,

  (c)

  an Act or Measure of the National Assembly for Wales, or

  (d)

  Northern Ireland legislation;

Defence Reform BillPage 41

• “subordinate legislation” means—

  (a)

  subordinate legislation within the meaning of the
  Interpretation Act 1978 (see section 21(1) of that Act), or

  (b)

  an instrument made under primary legislation of the kind
  5mentioned in paragraph (b), (c) or (d) of the definition of
  primary legislation above;

• “the transfer date” means a date specified by a transfer scheme as the
  date on which the scheme is to have effect;

• “transferee”, in relation to a transfer scheme, means a person who is a
  10transferee in respect of property, rights or liabilities for whose
  transfer the scheme provides;

• “transferor”, in relation to a transfer scheme, means the person for the
  transfer of whose property, rights or liabilities the scheme provides.

Section 13

SCHEDULE 4 15Single Source Regulations Office

Membership

1 (1) The SSRO is to consist of the following members—

(a) a chair appointed by the Secretary of State,

(b) at least two other members so appointed, and

(c) 20a chief executive, a chief operating officer and other members
appointed in accordance with paragraph 2.

(2) The number of executive members must be less than the number of non-
executive members.

(3) In this Schedule—

(a) 25references to “non-executive members” of the SSRO are to the
members mentioned in sub-paragraph (1)(a) and (b), and

(b) references to “executive members” of the SSRO are to the chief
executive, the chief operating officer and the other members
mentioned in sub-paragraph (1)(c).

30Executive members: appointment and status

2 (1) The executive members of the SSRO are to be appointed by the non-
executive members.

(2) A person may not be appointed as an executive member without the consent
of the Secretary of State.

(3) 35The executive members are to be employees of the SSRO.

Non-executive members: tenure

3 (1) A person holds and vacates office as a non-executive member of the SSRO in
accordance with the terms and conditions of his or her appointment.

(2) Appointment as a member of the SSRO is for a term of—

(a) 40not less than three years, and

(b) not more than six years.

(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
5of the following grounds—

(a) incapacity;

(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) 10The Secretary of State may suspend a person from office as a non-executive
member 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.

15Suspension from office

4 (1) This 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) 20delivered in person (in which case, the person is taken to receive it
when 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) 25The initial period of suspension must not exceed six months.

(5) The 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) 30need not review the suspension less than three months after the
beginning 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) 35suspend the person for another period of not more than six months
from 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
40paragraph 3(4), or

(b) that 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.

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

(a) 5the period ending with either—

(i) the appointment of a new chair, or

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

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

(3) 10A 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) pay remuneration and allowances to the non-executive members,
and

(b) 15pay 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.

Staff etc

7 (1) The SSRO may appoint employees.

(2) 20The 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) The 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
25the SSRO.

8 (1) The SSRO may make arrangements—

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

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

(2) The arrangements may, with the approval of the Secretary of State, include
30provision for payments by the SSRO.

Superannuation

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

• 35“Single Source Regulations Office.”

(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
any 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).

(2) A function of the SSRO under or by virtue of a provision listed in sub-
5paragraph (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) The provisions are—

• section 16(2)(b),

• 10section 18(3),

• section 20(5) or (6),

• section 21(3)(b),

• section 23(6) or (7),

• section 27(3),

• 15section 29(5),

• section 30(4)(b),

• section 32(8), and

• section 35(1), (3), (4) or (7).

(4) A committee appointed for the purposes of sub-paragraph (2) must consist
20of 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
a member or employee of the SSRO.

(6) A determination by such a committee—

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

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

30Committees

11 (1) The SSRO—

(a) may appoint committees, and

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

(2) 35A 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) is a member of a committee, but

(b) is not an employee of the SSRO,

40whether or not that person is a non-executive member of the SSRO.

Accounts and audit

12 (1) The SSRO must—

(a) keep 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—

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

(b) 5the 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
accounts relate as the Secretary of State may direct.

(4) The Comptroller and Auditor General must—

(a) 10examine, certify and report on each statement, and

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

Annual report

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

(2) 15The 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) The SSRO must send the report to the Secretary of State.

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

20Powers

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
those functions; but this is subject to sub-paragraph (2).

(2) The SSRO may not borrow money, other than temporarily by way of
25overdraft 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
the chief executive or any other member of the SSRO who has been
authorised (generally or specifically) for that purpose.

(2) 30A 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) is to be taken to be executed or signed in that way, unless the
contrary is proved.

35Finance

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) Payments 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—

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

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

(2) 5The SSRO’s property is not to be regarded as property of, or property held
on behalf of, the Crown.

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

Parliamentary Commissioner

18 10In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc
subject to investigation), at the appropriate place insert—

• “Single Source Regulations Office.”

Disqualification

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

(a) at the appropriate place insert—

• “The Single Source Regulations Office.”, and

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

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

(a) at the appropriate place insert—

• “The Single Source Regulations Office.”, and

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

Freedom of information

21 25In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
authorities to which Act applies)—

(a) at the appropriate place insert—

• “The Single Source Regulations Office.”, and

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

Section 38

30SCHEDULE 5 Restrictions on disclosing information

Information to which Schedule applies

1 (1) This Schedule applies to information if—

(a) it was obtained by the Secretary of State, an authorised person or the
35SSRO 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,

(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—

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

(b) 5in 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,
10an authorised person or the SSRO.

Offence of disclosing information

2 (1) A 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) 15A 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
20years or to a fine (or both).

(4) The reference in sub-paragraph (3)(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
25Justice Act 2003 comes into force, and

(b) in its application to Northern Ireland.

(5) 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
30by 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 (3)(a).

35Disclosure 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).

40Disclosure 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 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
5Crown 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) 10for 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
15associated person,

(f) by a person to whom the information is disclosed by virtue of
paragraph (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
20purposes 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) 25in 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
30relates can be identified from it.

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
35subject 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
40than 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
45reference 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.

(3) 5An 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-
10paragraph (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) 15A 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 45

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

1 20The 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) is amended as follows.

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

(a) the original transitional class (see Parts 1 and 2 of that
25Schedule), 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
original transitional class”.

(4) 30In subsection (3)—

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

• the original transitional class””, and

(b) at the end insert—

• ““the second transitional class”, in relation to members
  35of the reserve forces, shall be construed in accordance
  with Part 3 of Schedule 9.”

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) Schedule 9 (application of Act to transitional members) is amended as
40follows.