Select Committee on Public Administration Third Report


2  Changes to the Bill

A Parliamentary veto

10. The Regulatory Reform Committee recommended that the Bill should be amended to provide scope for an effective veto on the use of the powers in the Act. We are delighted that, during the Committee stage of the Bill, the Minister announced that he would bring forward a Parliamentary veto on the use of the procedures in the Legislative and Regulatory Reform Act.

As the Minister himself noted, "to get the veto provision correct will take a great deal of work and thorough consideration".[8] We will look most carefully at any amendments the Government brings forward. Moreover, we draw attention to the Procedure Committee's recommendation that there should be a power of veto which could be exercised outside the Committee as well as within it, although the mechanism by which the House of Commons exercises the veto (as opposed to the addition of the veto itself) should rest on House of Commons procedure, rather than be written on the face of the Bill.

Determination of procedure

11. The Government wishes to have a mechanism whereby minor and non-controversial reforms are not subject to the lengthy super-affirmative procedures. We understand its desire for flexibility, although we note that none of the major delays in the Regulatory Reform process since 2001 have been caused by the parliamentary process.[9] As currently drafted, the Bill gives the Minister power to recommend the procedure which is to be followed. This recommendation will have effect, unless within 21 days either House of Parliament requires a different procedure to apply. We welcome the fact that the Government has undertaken to consider extending the period for consideration from 21 days to 30 days. Yet the extension of the preliminary period for consideration to 30 days is the most minimal of the Regulatory Reform Committee's proposals for change. The Procedure Committee has recommended that Clause 13 should be:

    replaced with the straightforward provision that all draft orders would be subject to the super-affirmative procedure unless either (a) both Houses recommended that either the affirmative or the negative procedure should apply; or (b) either House determined that the draft order should not be proceeded with.[10]

We support this approach.

Limitations on the use of the powers in the Bill

12. There have been a number of suggestions about ways in which the powers given by the Bill might be restricted, since the current concept of reforming burdens no longer applies. The Regulatory Reform Committee proposed that certain subject matter should be reserved from the Bill. Amendments were moved in committee to this end. The Standing Committee also considered an amendment which would exempt particular enactments from modification using the Legislative and Regulatory Reform procedures. In correspondence with the Leader of the House, our Chairman suggested that the Bill should be modified so that legislation could only be reformed in a way that was consonant with its original purpose.

13. On 12 April the Minister wrote to Mr Andrew Miller MP, the Chairman of the Regulatory Reform Committee, saying

The commitment is extremely welcome, but the Minister's letter gives no indication of the nature or extent of the amendments the Government will bring forward, and it is clear that the Government still seeks wide powers. We will not be able to judge the adequacy of any additional safeguards until we see precisely what is proposed.

14. It is not clear whether the Government will take a general approach in its amendments, perhaps by introducing something like the earlier concept of a burden, or whether it will exclude certain Acts or subject matter from the Bill. The Government has consistently argued that putting specific restrictions on the uses of its powers might mean that it was prevented from bringing forward useful and uncontroversial reforms simply because they touched reserved matters or enactments. We recognise that this is the case. Nonetheless, the Government seeks an unprecedented power to amend almost any legislation in almost any way. This is disproportionate to its stated aims. If Government wants broad powers, it must accept that some matters should be off-limits.

15. The Minister was against a prescriptive list because it would restrict "the ability to reduce bureaucracy, form filling and information sharing".[12] However, there are a large number of Acts, such as the Parliament Act, which contain important constitutional principles, and which impose no burden on business. We cannot see why they should not be excluded entirely from the provisions of the Bill. The Minister himself said:

    I do not accept that the Bill could be used to reform itself, for all sorts of reasons. Not least of those are the Government's assurance in 2001, which has been generally accepted, that they should not introduce highly controversial proposals, and the Select Committees' power to reject any proposals by order. Those are important powers that would protect Parliament from such a suggestion.[13]

If that is the case, then we can see no argument for not putting the restriction on the face of the Bill.

16. The Bill needs to be amended so that it contains real restrictions on the Government's power. Valuable suggestions about reserving certain subject matter or certain enactments have already been made. Minimally, the Bill needs to be amended to ensure that the powers it contains cannot be used to amend the Legislative and Regulatory Reform Act itself, or any enactment which deals in substance with either House of Parliament.

17. The Government rejected an amendment moved in committee which would have had the effect of limiting the orders which could be made under the Bill by introducing "a notion of purpose or scope which is derived from the legislation that the order would purport to change. No order for any purpose substantially different from the purpose of the legislation that is being changed would be allowed".[14] The Minister's reason for rejecting this was not entirely clear:

    We must reduce bureaucracy, and an ability to do that to all sorts of different Acts which themselves are highly controversial—the Government do not propose to introduce amendments to the policy but to amend the bureaucracy attached to them—is the right way to progress.[15]

The position was clarified by the Leader of the House, who wrote to our Chairman that:

    Amendment 46 provided that orders could not reform legislation for a purpose substantially different to that for which the original legislation was passed. Jim Murphy resisted this on the basis that such a definition could prevent the Government from delivering its wider better regulation agenda in a similar way that the narrow definition of legal burden in the 2001 Act has done.[16]

The acceptance of a Parliamentary veto may perhaps make it unnecessary for the Bill itself to specify that reforms should be compatible with the underlying legislation, but we trust that any committee scrutinising such orders will reject those which make radical changes to the policy underlying existing law.

Law Commission proposals

18. Throughout proceedings on this Bill, Members have expressed concern about the breadth of the powers to implement Law Commission proposals. Orders to implement Law Commission proposals can make changes to common law (possibly in a way which is not in accordance with recommendations from the Law Commission), and are not subject to limits on the penalties they can impose. The Procedure Committee has already drawn attention to the weakness of the Government's argument that there is not sufficient time to implement Law Commission recommendations through the normal legislative process, given that the House has expedited procedures for such bills. We welcome the fact that the Minister has undertaken to think again about the absence of limits on penalties when Law Commission recommendations are implemented. It is Parliament's responsibility to make new law, and significant proposals for such law should be made as primary legislation, however eminent and expert the body which recommends them.


7   Stg Co Deb, Standing Committee A, Fourth Sitting, 2 March 2006, col 141 Back

8   Ibid., col 142 Back

9   See Regulatory Reform Committee, Legislative and Regulatory Reform Bill, HC(05-06)878, Table 2, para 26 Back

10   Procedure Committee, Legislative and Regulatory Reform Bill, Session 2005-06, para 37 Back

11   http://www.cabinetoffice.gov.uk/regulation/documents/bill/letter_am.pdf Back

12   Stg Co Deb Standing Committee A, 2 March 2006, col 129 Back

13   Ibid. Back

14   Ibid., col 113 Back

15   Ibid., col 129 Back

16   See Appendix Back


 
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