Government of Wales Bill

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Government of Wales Bill

Government of Wales Bill
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(5)
Payments by the Welsh Ministers under subsection (4) are to be made at such
times, and by such methods, as the Treasury may from time to time determine.
(6)
Sums required for the making of the payments are to be charged on the Welsh
Consolidated Fund.
(7)
A statutory instrument containing an order under subsection (3) is subject to
5
annulment in pursuance of a resolution of the House of Commons.
(8)
In this Act “Budget resolution of the Assembly” means a resolution on an
annual Budget motion (see section 124) or a supplementary Budget motion (see
section 125).
Borrowing
10
120
Borrowing by Welsh Ministers
(1)
The Welsh Ministers may borrow from the Secretary of State any amounts it
appears to them are required by them for the purpose of—
(a)
meeting a temporary excess of sums paid out of the Welsh
Consolidated Fund over sums paid into that Fund, or
15
(b)
providing a working balance in the Fund.
(2)
Amounts borrowed under this section must be repaid to the Secretary of State
at such times and by such methods, and interest on such sums must be paid to
the Secretary of State at such rates and at such times, as the Treasury from time
to time determine.
20
(3)
Sums required for the repayment of, or the payment of interest on, amounts
borrowed under this section are to be charged on the Welsh Consolidated
Fund.
121
Lending by Secretary of State
(1)
The Treasury may issue to the Secretary of State out of the National Loans
25
Fund such sums as the Secretary of State needs for making loans under section
120.
(2)
The aggregate outstanding in respect of the principal of sums borrowed under
that section must not exceed £500 million.
(3)
The Secretary of State may by order made with the consent of the Treasury
30
substitute for the amount for the time being specified in subsection (2) such
greater amount as is specified in the order.
(4)
No order is to be made under subsection (3) unless a draft of the statutory
instrument containing it has been laid before, and approved by a resolution of,
the House of Commons.
35
(5)
Sums received by the Secretary of State under section 120(2) must be paid into
the National Loans Fund.
122
Accounts relating to loans
(1)
The Secretary of State must for each financial year prepare accounts in such
form and manner as the Treasury may direct of—
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(a)
loans made by the Secretary of State under section 120 or treated as
made by paragraph 11(6) of Schedule 3 or paragraph 42(6) of Schedule
11, and
(b)
repayments and payments of interest made to the Secretary of State in
respect of those loans.
5
(2)
The Secretary of State must send accounts under subsection (1) relating to a
financial year to the Comptroller and Auditor General no later than five
months after the end of the financial year.
(3)
The Comptroller and Auditor General must—
(a)
examine, certify and report on accounts sent under subsection (2), and
10
(b)
lay copies of the accounts, together with the report prepared under
paragraph (a), before each House of Parliament.
Expenditure
123
Payments out of Welsh Consolidated Fund
(1)
A sum may only be paid out of the Welsh Consolidated Fund if—
15
(a)
it has been charged on that Fund by any enactment, or
(b)
its payment out is authorised or deemed to be authorised by a Budget
resolution of the Assembly (see sections 124 to 127) for or in connection
with either of the purposes mentioned in subsection (2),

and an approval to draw the payment of the sum out of the Welsh
20
Consolidated Fund is granted by the Auditor General (see section 128).
(2)
Those purposes are—
(a)
meeting expenditure of a relevant person, and
(b)
meeting expenditure payable pursuant to a relevant enactment.
(3)
For the purposes of this section and sections 124 to 127 the relevant persons
25
are—
(a)
the Welsh Ministers, the First Minister and the Counsel General,
(b)
the Assembly Commission,
(c)
the Auditor General, and
(d)
the Public Services Ombudsman for Wales.
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(4)
For the purposes of this section and sections 124 to 127 a relevant enactment is
an enactment which provides for payment out of the Welsh Consolidated
Fund.
(5)
This section does not apply to sums paid out of the Welsh Consolidated Fund
by virtue of section 129.
35
(6)
Any enactment which—
(a)
charges the payment of sums on the Consolidated Fund or requires or
authorises the payment of any sum from the Consolidated Fund, or
(b)
requires or authorises the payment of sums out of money provided by
Parliament,
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does not have effect if the sums are payable by any of the relevant persons.

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124
Annual Budget motions
(1)
For each financial year there is to be moved in the Assembly a motion (referred
to in this Act as an “annual Budget motion”) for the purpose of authorising—
(a)
the amount of resources which may be used in the financial year by the
relevant persons, or pursuant to a relevant enactment, for the services
5
and purposes specified in the motion,
(b)
the amount of resources accruing to the relevant persons in the
financial year which may be retained by them to be used for the services
and purposes so specified (rather than being paid into the Welsh
Consolidated Fund), and
10
(c)
the amount which may be paid out of the Welsh Consolidated Fund in
the financial year to the relevant persons, or for use pursuant to a
relevant enactment, for the services and purposes so specified.
(2)
An annual Budget motion may only be moved by the First Minister or a Welsh
Minister appointed under section 48.
15
(3)
An annual Budget motion must be accompanied by a written statement made
by the Welsh Ministers showing—
(a)
the total amount of the payments which they estimate will be made for
the financial year under section 117(1),
(b)
the total amount of the payments which they estimate will be made to
20
the Welsh Ministers, the First Minister or the Counsel General for the
financial year by Ministers of the Crown and government departments,
and
(c)
the total amount of the payments which they estimate will be made to
the Welsh Ministers, the First Minister or the Counsel General for the
25
financial year otherwise than by a Minister of the Crown or
government department.
(4)
In this Act a reference to the use of resources is a reference to their expenditure,
consumption or reduction in value.
125
Supplementary Budget motions
30
(1)
For any financial year there may be moved in the Assembly one or more
motions (referred to in this Act as a “supplementary Budget motion”) for either
or both of the purposes specified in subsections (2) and (3).
(2)
A supplementary Budget motion may approve a variation in any one or more
of the following—
35
(a)
the amount of resources authorised to be used in the financial year by
a relevant person, or pursuant to a relevant enactment, for any service
or purpose,
(b)
the amount of resources accruing to a relevant person in the financial
year and authorised to be retained by that person to be used for any
40
service or purpose, and
(c)
the amount authorised to be paid out of the Welsh Consolidated Fund
in the financial year to a relevant person, or for use pursuant to a
relevant enactment, for any service or purpose.
(3)
A supplementary Budget motion may authorise any one or more of the
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following—

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(a)
the amount of resources which may be used in the financial year by a
relevant person, or pursuant to a relevant enactment, for a service or
purpose specified in the motion,
(b)
the amount of resources accruing to a relevant person in the financial
year which may be retained by that person to be used for a service or
5
purpose so specified, and
(c)
the amount which may be paid out of the Welsh Consolidated Fund in
the financial year to a relevant person, or for use pursuant to a relevant
enactment, for a service or purpose so specified.
(4)
A supplementary Budget motion for any financial year may be expressed to
10
have effect from a time before it is made; but that time may not be earlier
than—
(a)
the date on which the last supplementary Budget motion for the
financial year was passed, or
(b)
(if none has) the date on which the annual Budget motion for the
15
financial year was passed.
(5)
A supplementary Budget motion may only be moved by the First Minister or
a Welsh Minister appointed under section 48.
126
Appropriation without Budget resolution
(1)
If a Budget resolution for a financial year is not passed before the beginning of
20
the financial year, the following are deemed to have been authorised by a
Budget resolution of the Assembly for that year—
(a)
the use in the year for any service or purpose of the relevant percentage
of the amount of the resources authorised to be used in the preceding
financial year for the service or purpose,
25
(b)
the retention in the year for use for any service or purpose of the
relevant percentage of the amount of the resources authorised to be
retained in the previous financial year for use for the service or
purpose, and
(c)
the payment out of the Welsh Consolidated Fund in the year for any
30
service or purpose of the relevant percentage of the amount authorised
to be paid out of the Fund in the previous financial year for the service
or purpose.
(2)
“The relevant percentage” is—
(a)
where a Budget resolution for the financial year is not passed before the
35
end of July in the financial year, 95%, and
(b)
otherwise, 75%.
127
Contingencies
(1)
This section applies where it is proposed—
(a)
that resources be used in any financial year by any of the relevant
40
persons, or pursuant to a relevant enactment, otherwise than as
authorised by virtue of sections 124 to 126, or
(b)
that amounts be paid out of the Welsh Consolidated Fund in the year
to the relevant persons, or for use pursuant to a relevant enactment,
otherwise than as authorised by virtue of those sections.
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(2)
The resources may be so used, or the amounts may be so issued, only with the
authority of the Welsh Ministers.
(3)
The Welsh Ministers may authorise the use of resources, or the payment of
amounts, only if they consider that—
(a)
the use of the resources, or the payment of the amounts, is necessary in
5
the public interest, and
(b)
it is not reasonably practicable, for reasons of urgency, for a motion to
be moved under section 124 or 125 to authorise the use of the resources
or the payment of the amounts.
(4)
The aggregate amount of resources which the Welsh Ministers may at any time
10
authorise to be used under this section by any person, or pursuant to any
enactment, in any financial year must not exceed 0.5% of—
(a)
the aggregate amount of the resources which, at the time, have been
authorised by virtue of sections 124 and 125 to be used by that person,
or pursuant to that enactment, in that financial year, or
15
(b)
(if none have) the aggregate amount of the resources which were so
authorised to be used by that person, or pursuant to that enactment, in
the immediately preceding financial year.
(5)
The aggregate amount which the Welsh Ministers may at any time authorise to
be paid out of the Welsh Consolidated Fund under this section to any person,
20
or for use pursuant to any enactment, in any financial year must not exceed
0.5% of—
(a)
the aggregate of the amounts which, at the time, have been authorised
by virtue of sections 124 and 125 to be paid to that person, or for use
pursuant to that enactment, in that financial year, or
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(b)
(if none have) the aggregate of the amounts which were so authorised
to be paid to that person, or for use pursuant to that enactment, in the
immediately preceding financial year.
(6)
The use of resources, or the payment of amounts, authorised by the Welsh
Ministers in accordance with this section is deemed to have been authorised by
30
a Budget resolution of the Assembly.
(7)
Where the Welsh Ministers authorise the use of resources, or the payment of
amounts, under this section they must, as soon as possible, lay before the
Assembly a report setting out—
(a)
the resources authorised to be used or the amounts authorised to be
35
paid,
(b)
the services or purposes for which the resources were authorised to be
used, or the amounts were authorised to be paid, and
(c)
why they considered it to be necessary to authorise the use of the
resources, or the payment of the amounts, under this section.
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128
Approvals to draw
(1)
The Auditor General must grant approvals to draw payments out of the Welsh
Consolidated Fund from time to time at the request of the Welsh Ministers.
(2)
An approval to draw may only be granted if, in the Auditor General’s opinion,
the proposed payment out of the Welsh Consolidated Fund would comply
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with section 123.

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(3)
A request for the grant of an approval to draw is to be made in any manner
which the Welsh Ministers, with the approval of the Auditor General, decide
to adopt.
(4)
Where an approval to draw is granted the Paymaster General must make the
funds available to the Welsh Ministers, the First Minister, the Counsel General,
5
the Assembly Commission, the Auditor General or the Public Services
Ombudsman for Wales (as appropriate).
(5)
The Paymaster General must make available to—
(a)
the Auditor General, and
(b)
the principal accounting officer for the Welsh Ministers,
10

a daily statement regarding all the issues made out of the Welsh Consolidated
Fund in respect of sums charged on that Fund and other payments out of it.
(6)
For the purposes of this Act the principal accounting officer for the Welsh
Ministers is the Permanent Secretary to the Welsh Assembly Government.
(7)
But the Treasury may designate another member of the staff of the Welsh
15
Assembly Government to be the principal accounting officer for the Welsh
Ministers if and for so long as—
(a)
the Permanent Secretary to the Welsh Assembly Government is
incapable of discharging the responsibilities of principal accounting
officer for the Welsh Ministers, or
20
(b)
the office of Permanent Secretary to the Welsh Assembly Government
is vacant.
(8)
In this section “Permanent Secretary to the Welsh Assembly Government”
means the person appointed in accordance with section 52 to be the head of the
staff of the Welsh Assembly Government (whether or not that person is known
25
by the title of Permanent Secretary to the Welsh Assembly Government).
129
Payments in by mistake
Where a sum is paid into the Welsh Consolidated Fund which should not or
need not have been paid into the Fund, the Auditor General may grant an
approval to draw a payment equal to the amount of that sum out of the Fund.
30
Financial accountability of Welsh Ministers
130
Welsh Ministers’ accounts
(1)
The Welsh Ministers must, for each financial year, prepare accounts in
accordance with directions given to them by the Treasury.
(2)
The accounts must include details of the financial affairs and transactions of
35
the Counsel General.
(3)
The directions which the Treasury may give under subsection (1) include
directions to prepare accounts relating to financial affairs and transactions of
persons other than the Welsh Ministers.
(4)
The directions which the Treasury may give under subsection (1) include, in
40
particular, directions as to—
(a)
the financial affairs and transactions to which the accounts are to relate,

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(b)
the information to be contained in the accounts and the manner in
which it is to be presented,
(c)
the methods and principles in accordance with which the accounts are
to be prepared, and
(d)
the additional information (if any) that is to accompany the accounts.
5
(5)
Any accounts which the Welsh Ministers are directed under this section to
prepare for any financial year must be submitted by the Welsh Ministers to the
Auditor General no later than 30th November in the following financial year.
(6)
The Auditor General must—
(a)
examine and certify any accounts submitted under this section, and
10
(b)
no later than four months after the accounts are submitted, lay before
the Assembly a copy of them as certified by the Auditor General
together with the Auditor General’s report on them.
(7)
In examining accounts submitted under this section, the Auditor General must,
in particular, be satisfied—
15
(a)
that the expenditure to which the accounts relate has been incurred
lawfully and in accordance with the authority which governs it, and
(b)
that money received for a particular purpose or particular purposes has
not been expended otherwise than for that purpose or those purposes.
(8)
Where—
20
(a)
by virtue of any enactment other than this section the Welsh Ministers
are under an obligation to prepare accounts dealing with any matters,
and
(b)
it appears to the Treasury that those matters fall to be dealt with in
accounts directed to be prepared under this section,
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the Treasury may relieve the Welsh Ministers of that obligation for or in respect
of such periods as the Treasury may direct.
131
Account relating to Welsh Consolidated Fund
(1)
The Welsh Ministers must, for each financial year, prepare an account of the
payments into and out of the Welsh Consolidated Fund.
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(2)
The account must be prepared in accordance with directions given to the
Welsh Ministers by the Treasury.
(3)
The directions which the Treasury may give under subsection (2) include, in
particular, directions as to—
(a)
the information to be contained in the account and the manner in which
35
it is to be presented,
(b)
the methods and principles in accordance with which the account is to
be prepared, and
(c)
the additional information (if any) that is to accompany the account.
(4)
Any account which the Welsh Ministers are directed under this section to
40
prepare for any financial year must be submitted by the Welsh Ministers to the
Auditor General no later than 30th November in the following financial year.
(5)
The Auditor General must—
(a)
examine and certify any account submitted under this section, and