Select Committee on Regulatory Reform Second Special Report


Appendix A

Letter from the Pat McFadden MP, Parliamentary Secretary, Cabinet Office, to the Chairman of the Regulatory Reform Committee

I am writing in response to the recommendations made in your First Special Report of Session 2006-07 concerning Regulatory Reform Committee Standing Orders for scrutinising orders under the Legislative and Regulatory Reform Act 2006.

Continuing current procedures, I am content to agree that a Minister's motion to agree a draft order, which has not been approved unanimously by Members of the Committee, should be debated on the floor of the House for up to one and a half hours. The Committee has also proposed that it should be able to force a debate on orders on which they have not divided. I can assure you that, if the Committee were to make such a recommendation, the usual channels would of course consider positively any request for wider debate in the same way that time for debate was given for wider consideration of the Regulatory Reform Order (Fire Safety) proposal. But I would also be happy to underpin this commitment by including in Standing Order No 141, if you think it would be helpful, a specific Committee option to recommend draft Orders which the Committee considers of sufficient legal and political significance, but on which they have not divided, for debate in a Delegated Legislation Committee.

I can reiterate the Ministerial undertaking that the Government will not force through an order in the face of opposition from relevant Committees. I agree with the Procedure Committee (included in your report at Appendix C) that the House in principle must have the power and the right to overturn a Committee veto. On this basis, I am content to agree that there is no need for detailed procedures to be laid out in Standing Order No. 18.

Although the main body of your report does not deal with it, I cannot agree to the effect of your proposed change to proposed Standing Order 18 (5) in respect of debate on negative Orders which the Committee has voted against. However, I am content to give an undertaking that a Motion in these circumstances would be given a debate except in very unusual circumstances. A Committee rejection of a draft order subject to negative resolution procedure would be a motion of similar character to a prayer.

I accept that your Committee should continue to scrutinise any future Subordinate Provisions Orders under the 2001 Act. The attached revised draft Standing Orders reflect this. The Government can also accept your Committee's proposed change to the wording in 141 (3b and 3c) to "serves the purpose of removing or reducing a burden …". I acknowledge that there may be instances in the future where greater flexibility will be required for the second stage Committee reporting period on an amended order under the super-affirmative resolution procedure. Although I agree that your Committee has always fully complied with the instruction of 15 days under the 2001 Act, for the purposes of certainty for both stakeholders supporting any proposed order and the Government itself, I propose that the period should be lengthened to 25 days. An extra two working weeks should cover any future possibility of timing difficulties.

I do not see the need for deleting Standing Order 141(13). Instead I have redrafted it so that it is less burdensome, but still ensures that the relevant Government department has the opportunity to explain the case for the need for an order.

I can reiterate the Government undertaking made during the passage of the Act through Parliament, that a Minister will report to the House no less than five years after enactment on the operation of the Act. In the meantime, departmental Simplification Plans will include proposals that have been identified as suitable for delivery by order. As you will know from the 2006 Simplification Plans, where available, the proposals include an estimate of the costs saved and the benefits expected from individual proposals. Furthermore, every draft order laid under the LRRA 2006 will be accompanied by an explanatory document. It is a statutory requirement that this explanatory document include in the case of an order under section 1, an assessment of the extent to which the provision would remove or reduce burdens. Together, Simplification Plans and individual orders will provide a very clear validation of costs and benefits derived from orders under the LRRA.

There are one or two other minor drafting changes from the version in my earlier letter which I understand are acceptable following discussions at official level. I hope that on the basis of this we can agree the final draft of Regulatory Reform Committee Standing Orders so that CA Committee clearance on them can be sought

25 January 2007

ANNEX A

Further revised version of Standing Orders

Consideration of Regulatory Reform Orders

18.—(1) If the Regulatory Reform Committee has recommended under paragraphs (4) or (6) of Standing Order No.141 (Regulatory Reform Committee) that a draft Order subject to the affirmative or super-affirmative procedure, laid before the House under Part 1 of the Legislative and Regulatory Reform Act 2006, should be approved, and a motion is made by a Minister of the Crown to that effect, the question thereon shall:

(a) if the committee's recommendation was agreed without a division, be put forthwith; and

(b) if the committee's recommendation was agreed after a division, be put not later than one and a half hours after the commencement of proceedings on the motion;

(2) If the committee has recommended under paragraphs (4) or (6) of Standing Order No.141 that a draft Order subject to the affirmative or super-affirmative procedure be not approved, no motion to approve the draft Order shall be made unless the House has previously resolved to disagree with the committee's report; the questions necessary to dispose of proceedings on the motion for such a resolution shall be put not later than three hours after their commencement; and the question on any motion thereafter made by a Minister of the Crown that the draft Order be approved shall be put forthwith.

(3) If the committee recommends that a draft Order subject to the negative resolution procedure should not be made, that recommendation shall be deemed to constitute notice of a motion under paragraph (4)(a) of Standing Order No 118 (Delegated Legislation Committees).

(4) Motions under paragraphs (1) or (2) above may be proceeded with, though opposed, until any hour.


Regulatory Reform Committee

141. (1) There shall be a select committee, called the Regulatory Reform Committee, to examine and report on—

(i) every draft Order laid before the House under sections 14 and 18 of the Legislative and Regulatory Reform Act 2006 ('the Act');

(ii) any Subordinate Provisions Order or draft of such an Order made or proposed to be made under sections 1 and 4 of the Regulatory Reform Act 2001 (except those not made by a Minister of the Crown);

(iii) any matter arising from its consideration of such Orders or draft Orders; and

(iv) matters relating to regulatory reform.

(2) In the case of every draft Order referred to in paragraph (1) (i) above the committee shall consider the Minister's recommendation under section 15(1) of the Act as to the procedure which should apply to it and shall report to the House any recommendation under the Act that a different procedure should apply.

(3) In its consideration of draft Orders under Part 1 of the Act the committee shall include in its consideration in each case whether provision in the draft Order—

(a) appears to make an inappropriate use of delegated legislation;

(b) serves the purpose of removing or reducing a burden, or the overall burdens, resulting directly or indirectly for any person from any legislation (in respect of a draft Order under section 1 of the Act);

(c) serves the purpose of securing that regulatory functions are exercised so as to comply with the regulatory principles, as set out in section 2(3) of the Act (in respect of a draft Order under section 2 of the Act);

(d) secures a policy objective which could not be satisfactorily secured by non-legislative means;

(e) has an effect which is proportionate to the policy objective;

(f) strikes a fair balance between the public interest and the interests of any person adversely affected by it;

(g) does not remove any necessary protection;

(h) does not prevent any person from continuing to exercise any right or freedom which that person might reasonably expect to continue to exercise;

(i) is not of constitutional significance;

(j) makes the law more accessible or more easily understood (in the case of provisions restating enactments);

(k) has been the subject of, and takes appropriate account of, adequate consultation;

(1) gives rise to an issue under such criteria for consideration of statutory instruments laid down in paragraph (1) of Standing Order No 151 (Statutory Instruments (Joint Committee)) as are relevant;

(m) appears to be incompatible with any obligation resulting from membership of the European Union;

Provided that in the case of draft Orders under section 20 of the Act, those criteria which are not relevant to provisions made pursuant to section 2(2) of the European Communities Act 1972 need not be taken into consideration in relation to those provisions.

(4) In relation to every draft Order laid under section 14 of the Act subject to the negative or affirmative procedure under sections 16 or 17 of the Act, the committee shall report its recommendation whether the draft Order should be made (in the case of the negative procedure) or approved (in the case of the affirmative procedure), indicating in the case of the latter whether the recommendation was agreed without a division.

(5) In relation to every draft Order laid under section 14 of the Act subject to the super-affirmative procedure under section 18 of the Act, the committee shall report its recommendation as to whether—

(a) the draft Order should be proceeded with unamended under section 18(3) of the Act; or

(b) a revised draft Order should be laid under section 18(7) of the Act; or

(c) no statement under section 18(3) or revised draft Order under section 18(7) should be laid.

(6) In relation to every draft Order or revised draft Order subject to the super-affirmative procedure being proceeded with under section 18(3) or 18(7) of the Act, the committee shall report its recommendation whether the draft Order or revised draft Order should be approved, indicating in the case of draft Orders which it recommends should be approved whether its recommendation was agreed without a division; and in respect of such draft Orders or revised draft Orders the committee shall consider in each case all such matters set out in paragraph (3) of this Order as are relevant and the extent to which the Minister concerned has had regard to any resolution or report of the committee or to any other representations made during the period for parliamentary consideration.

(7) It shall be an instruction to the committee considering draft Orders being proceeded with under section 18(3) or section 18(7) that it report not more than fifteen sitting days (in the case of an order under section 18(3)) or twenty-five sitting days (in the case of an order under section 18(7)) after the relevant statement is laid.

(8) In relation to every draft Order or revised draft Order, the committee shall report any recommendation under section 16(4) of the Act that the draft Order be not made, or under sections 17(3), 18(5) or 18(9) of the Act that no further proceedings be taken in relation to the draft Order.

[(8A) Where the committee has reported under paragraphs (4) or (6) above that a draft Order should be made (in the case of the negative procedure) or should be approved (in the case of the affirmative or super-affirmative procedure) it may also report a recommendation that the draft Order be debated.]

(9) In its consideration of any Subordinate Provisions Order under paragraph (1)(ii) above, the committee shall in each case consider whether the special attention of the House should be drawn to it on any of the grounds laid down in paragraph (1) of Standing Order No. 151 (Statutory Instruments (Joint Committee)); and if the committee is of the opinion that any such Order or draft Order should be annulled, or, as the case may be, should not be approved, they shall report that opinion to the House.

(10) The committee shall consist of fourteen members; and, unless the House otherwise Orders, each Member nominated to the committee shall continue to be a member of it for the remainder of the Parliament.

(11) The committee shall have power—

(a) to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report from time to time;

(b) to appoint specialist advisers either to supply information which is not readily available or to elucidate matters of complexity within the committee's order of reference; and

(c) to appoint a sub-committee, of which the quorum shall be two, which shall have power to send for persons, papers and records, to sit notwithstanding any adjournment of the House, and to adjourn from place to place.

(12) The committee and the sub-committee shall have the assistance of the Counsel to the Speaker.

(13) The committee and the sub-committee shall have power to invite Members of the House who are not members of the committee to attend meetings at which witnesses are being examined in relation to matters within paragraphs (1) (i) and (ii) and such Members may, at the discretion of the chairman, ask questions of those witnesses; but no Member not being a member of the committee shall otherwise take part in the proceedings of the committee or sub-committee, or be counted in the quorum.

(14) It shall be an instruction to the committee that before reporting on a draft Order it shall afford to any government department concerned a reasonable opportunity of furnishing orally or in writing to it or to the sub-committee appointed by it such explanations as the department think fit.


 
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