House of Commons Public Bill Committee Proceedings

House of Commons

Session 2006 - 07
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Other Bills before Parliament

1

House of Commons

Tuesday 12th June 2007

Public Bill Committee Proceedings

Legal Services Bill [Lords]

[First and Second SITTINGs]

Bridget Prentice

Agreed to

That—

(1)
the Committee shall (in addition to its first meeting at 10.30 a.m. on Tuesday

12th June) meet—

(a)
at 4.00 p.m. on Tuesday 12th June;

(b)
at 9.00 a.m. and 1.00 p.m. on Thursday 14th June;

(c)
at 10.30 a.m. and 4.00 p.m. on Tuesday 19th June;

(d)
at 9.00 a.m. and 1.00 p.m. on Thursday 21st June;

(e)
at 10.30 a.m. and 4.00 p.m. on Tuesday 26th June;

(f)
at 9.00 a.m. and 1.00 p.m. on Thursday 28th June;

(2)
the proceedings shall be taken in the following order: Clauses 1 and 2;

Schedule 1; Clauses 3 to 12; Schedule 2; Clauses 13 to 19; Schedule 3; Clause

20; Schedule 4; Clauses 21 and 22; Schedule 5; Clauses 23 to 26; Schedule

6; Clauses 27 to 33; Schedule 7; Clauses 34 to 44; Schedule 8; Clause 45;

Schedule 9; Clauses 46 to 76; Schedule 10; Clauses 77 to 83; Schedule 11;

Clause 84; Schedule 12; Clauses 85 to 89; Schedule 13; Clauses 90 to 102;

Schedule 14; Clauses 103 to 114; Schedule 15; Clauses 115 to 178; Schedule

16; Clauses 179 to 183; Schedule 17; Clauses 184 to 187; Schedule 18;

Clause 188; Schedule 19; Clause 189 to 196; Schedule 20; Clauses 197 to

215; Schedules 21 to 24; new Clauses and new Schedules; remaining

proceedings on the Bill;

(3)
the proceedings shall (so far as not previously concluded) be brought to a

conclusion at 4.00 p.m. on Thursday 28th June.

Bridget Prentice

That, subject to the discretion of the Chairman, any written evidence received by the

Committee shall be reported to the House for publication.

Agreed to

Public Bill Committee Proceedings: 12th June 2007
2

Legal Services Bill-[ [], continued

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Simon Hughes

John Hemming

Negatived on division  217

Clause  1,  page  1,  line  10,  after ‘(e)’ insert ‘subject to objectives (a) to (d),’.

Members’ explanatory statement

To ensure that the objective of promoting competition is expressly subordinate to the objectives of

protecting and promoting the public interest; supporting the constitutional principle of the rule of

law; improving access to justice; and protecting and promoting the interests of consumers.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Simon Hughes

John Hemming

Withdrawn  207

Clause  1,  page  2,  line  7,  at end insert—

‘(ca)
That authorised persons should not act where there is a conflict between

the interests of two or more of their clients, or between the authorised

person and their client.’.

Members’ explanatory statement

This amendment would ensure that the avoidance of conflict of interest is included within the pro

fessional principles, promotion of which is (by virtue of Clause 1(1)(h)) one of the regulatory ob

jectives.

Clause Agreed to.

Clause 2 Agreed to.

Bridget Prentice

Agreed to on division  30

Schedule  1,  page  121,  line  6,  leave out ‘with the concurrence of the Lord Chief

Justice’.

Members’ explanatory statement

This amendment reverses one made in the House of Lords requiring the concurrence of the Lord

Chief Justice to the appointment of the chairman of the Board.

Bridget Prentice

Agreed to on division  31

Schedule  1,  page  121,  line  10,  leave out ‘with the concurrence of the Lord Chief

Justice’.

Members’ explanatory statement

This amendment reverses one made in the House of Lords requiring the concurrence of the Lord

Chief Justice to the appointment of the members of the Board other than its chairman and Chief

Executive.

Public Bill Committee Proceedings: 12th June 2007
3

Legal Services Bill-[ [], continued

Bridget Prentice

Agreed to on division  32

Schedule  1,  page  121,  line  16,  leave out ‘and Lord Chief Justice’.

Members’ explanatory statement

This amendment is consequential on amendments 30 and 31, removing a reference to the functions

of the Lord Chief Justice which those amendments remove.

Mr Kevan Jones

Simon Hughes

John Hemming

Withdrawn  264

Schedule  1,  page  121,  line  19,  leave out ‘first’.

Bridget Prentice

Agreed to on division  33

Schedule  1,  page  122,  line  17,  leave out ‘and Lord Chief Justice’.

Members’ explanatory statement

This amendment is consequential on amendments 30 and 31, removing a reference to the functions

of the Lord Chief Justice which those amendments remove.

Bridget Prentice

Agreed to on division  34

Schedule  1,  page  123,  line  6,  leave out ‘with the concurrence of the Lord Chief

Justice’.

Members’ explanatory statement

This amendment reverses one made in the House of Lords requiring the concurrence of the Lord

Chief Justice to the removal from office of an ordinary member of the Board (which includes the

chairman).

Bridget Prentice

Agreed to on division  35

Schedule  1,  page  123,  line  8,  leave out ‘and Lord Chief Justice’.

Members’ explanatory statement

This amendment is consequential on amendment 34, removing a reference to the function of the

Lord Chief Justice which that amendment removes.

Bridget Prentice

Agreed to on division  36

Schedule  1,  page  123,  line  11,  leave out ‘and Lord Chief Justice are’ and insert ‘is’.

Members’ explanatory statement

This amendment is consequential on amendment 34, removing a reference to the function of the

Lord Chief Justice which that amendment removes.

Bridget Prentice

Agreed to  37

Schedule  1,  page  123,  line  21,  leave out sub-paragraph (5).

Members’ explanatory statement

This amendment reverses one made in the House of Lords which duplicates the provision made by

other amendments requiring concurrence of the Lord Chief Justice in the removal from office of

Public Bill Committee Proceedings: 12th June 2007
4

Legal Services Bill-[ [], continued

an ordinary member of the Board.

Bridget Prentice

Agreed to on division  38

Schedule  1,  page  123,  line  23,  leave out ‘the Lord Chancellor and Lord Chief

Justice remove’ and insert ‘removing’.

Members’ explanatory statement

This amendment is consequential on amendment 34, removing a reference to the function of the

Lord Chief Justice which that amendment removes.

Bridget Prentice

Agreed to on division  39

Schedule  1,  page  123,  line  26,  leave out ‘and Lord Chief Justice’.

Members’ explanatory statement

This amendment is consequential on amendment 34, removing a reference to the function of the

Lord Chief Justice which that amendment removes.

Bridget Prentice

Agreed to  40

Schedule  1,  page  123,  line  35,  at end insert—


‘The terms of appointment of the chairman or any other ordinary member may

provide for the Board to pay, or make payments towards the provision of, a

pension, allowance or gratuity to or in respect of that person.


If the Lord Chancellor thinks there are circumstances that make it right for a

person ceasing to hold office as chairman or another ordinary member to

receive compensation, the Board may pay that person such compensation as

the Lord Chancellor may determine.’.

Members’ explanatory statement

This amendment provides that the terms of appointment of the chairman or other ordinary mem

bers of the Board may provide for pensions, allowances or gratuities. It also allows the Board to

pay compensation to the chairman or other ordinary members in certain circumstances.

Bridget Prentice

Agreed to  41

Schedule  1,  page  124,  line  6,  at end insert—


‘The Board may pay compensation for loss of employment to or in respect of

a member (or former member) of staff.’.

Members’ explanatory statement

This amendment allows the Board to pay compensation to its staff or former staff for loss of em

ployment with the Board.

Schedule, as amended, Agreed to.

Public Bill Committee Proceedings: 12th June 2007
5

Legal Services Bill-[ [], continued

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Simon Hughes

John Hemming

Withdrawn  206

Clause  3,  page  2,  line  25,  leave out ‘so far as is reasonably practicable.’.

Members’ explanatory statement

To ensure that the Legal Services Board’s duty to act in a way which is compatible with the regu

latory objectives is not qualified.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Withdrawn  213

Clause  3,  page  2,  line  34,  at end insert—

‘(4)
In assessing what is proportionate in the regulation of approved regulators the

Board shall have regard, inter alia, to—

(a)
the regulator’s resources (including voluntary resources) and the effect

on them of the Board’s acts;

(b)
the effect on regulatory fees;

(c)
the extent to which the Board’s acts might discourage entry to or

retention in the regulated sector;

(d)
the extent to which the number of persons regulated by a regulator might

be reduced in consequence of the Board’s acts;

(e)
the extent to which the regulator might be disadvantaged and another

regulatory might derive an advantage, in particular through the

movement between regulators of regulated persons as a consequence of

the Board’s acts’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  214

Clause  3,  page  2,  line  34,  at end insert—

‘(4)
The role of the Board is to ensure that the approved regulators act in a way which

is compatible with the regulatory objectives.’.

Mr Jonathan Djanogly

Mr Henry Bellingham

Mr Tobias Ellwood

Not called  254

Clause  3,  page  2,  line  34,  at end add—

‘(4)
In considering what degree of protection may be appropriate for consumers, the

Board must have regard to the differing degrees of experience and expertise that

different consumers may have in relation to different kinds of regulated activity.’.

Members’ explanatory statement

This amendment is designed to ensure that regulation is proportionate and risk-based.

Clause Agreed to.

[Adjourned till Thursday at 9.00 a.m.