Select Committee on Regulatory Reform Third Special Report


Third Special Report



Introduction

1. The Government will shortly be tabling revised Standing Orders to change the terms of reference of the Regulatory Reform Committee, as set out in Standing Order No 141, and the Parliamentary procedures for scrutinising relevant draft Orders by the House, as set out in Standing Order No 18.

2. This special report, the third that we have published recently on the subject of the revised Standing Orders, includes the Government's response to our previous special report. and is likely to represent our last opportunity to comment on the revised Standing Orders before the House considers them formally.

3. We are pleased to record that we have reached agreement with the Cabinet Office on most of the issues that initially divided us. For example, we are pleased that the Government has agreed that our Committee will have an expanded remit that would allow it to conduct inquiries into regulatory reform generally. In addition, our Committee will have responsibility for scrutinising Subordinate Provisions Orders under the Regulatory Reform Act 2001 rather than have that scrutiny power transferred to the Joint Committee on Statutory Instruments. We also welcome the Minister's acceptance of our recommendation that our Committee be given more time at the second stage to scrutinise any draft Orders which undergo unexpected changes compared with the version scrutinised by the Committee at the first stage.

4. We also welcome the Minister's recognition that there may be occasions when a pressing time limit for the exercise of a statutory function might require the Committee to exercise its judgement before explanations are furnished by the Government Department concerned. This is unlikely to happen in relation to super-affirmative resolution procedure Orders, where established practices from the 2001 Act can be straightforwardly adapted. But for negative and affirmative resolution procedure Orders, which are novel procedures with stricter time limits, the matter is less certain. In such circumstances, we expect to work with the Government in developing practices aimed at enabling explanations to be furnished in good time for decisions to be taken where that is reasonably practicable.

5. Despite the progress in reaching agreement with the Cabinet Office on the majority of issues, we remain disappointed that we have not reached total agreement on the last two remaining areas. The detailed arguments on these two issues are set our in our previous special reports, so we do not propose to echo them again. [1] Below we simply highlight these two areas.

Provisions to facilitate debates

6. The revised Standing Orders are likely to stipulate that a debate would only take place automatically if we divided on the draft Order. In our two previous special reports, we repeatedly called for the revised Standing Orders to be amended to give our Committee the power to refer any draft Order for debate in a Delegated Legislation Committee if it was considered to be of sufficient political or legal significance.[2] We requested this provision on the grounds that there may be occasions where some Members of the House might wish to have the opportunity to debate a draft Legislative Reform Order even though the draft Order had the unanimous approval of our Committee. The Minister has not accepted our recommendation, but instead has offered us assurances that in the absence of a division, a Committee recommendation for a debate would be considered sympathetically. We welcome this assurance, but remain disappointed that the Minister has not accepted fully our recommendation. Our Committee is likely to want to monitor how the Government responds to such recommendations for debates on draft orders that are considered to be of sufficient legal or political importance.

Overturning our opposition to a draft Order

7. We are also disappointed that the Minister has not accepted our recommendation that all provisions for overturning the procedural effects of our opposition to a draft Order be removed from the revised Standing Orders. The revised Standing Orders are likely to include a provision supporting an understanding that except in "very unusual circumstances"[3] time would be made available for a debate whenever the Committee opposes (but does not veto) a draft Order that was subject to the negative resolution procedure. This option would be exercised by deeming the Committee's objection to the draft Order to constitute a notice of a motion under paragraph (4)(a) of Standing Order No 118 (Delegated Legislation Committees) and tabling a Government motion to refer the draft Order to a Delegated Legislation Committee.

8. In our previous Special Reports, we called for the removal of this provision. We felt this reference to a notice of a motion could easily be misconstrued as a possible way of overturning our opposition to a draft Order and could also give rise to the false assumption that a veto of a negative instrument would automatically generate some further parliamentary procedure (although it is clear from the Act that it does not). The argument has now moved on somewhat in the sense that the revised Standing Orders are now likely to distinguish between a Committee vote against an Order where the Committee chooses not to invoke the statutory veto (which the Committee might wish to do to continue a dialogue with the relevant Government department concerning an Order which the Committee felt was flawed but still salvageable) and the Committee's exercise of its statutory veto (which the Committee could use if it concluded that an Order was inappropriate for this legislative procedure).

9. As a result of this distinction, the Government' s option of a debate on an opposed (but not vetoed) draft Order which is subject to the negative resolution procedure has the benefit of providing a further parliamentary procedure that would otherwise not exist. In the absence of this procedure, the relevant Minister could simply make the Order regardless of the opposition of the Committee. By introducing the option of a (probable) debate on such an opposed draft Order, the House would have a procedure similar to that initiated by a prayer. There are two criticisms of this procedure. First, this Parliamentary procedure is a relatively weak form of parliamentary scrutiny. Second, it is important to note that the use of the provision would, on the face of it, be inconsistent with the Government's assurance that it would not proceed with a draft Order in the face of opposition from the relevant Committee.

10. We recognise that - in the absence of a veto - a Minister could proceed to make a negative resolution procedure Order, whatever Standing Orders might state. Accordingly, we expect our Committee to be mindful of the limited effect that its opposition would have in relation to negative resolution procedure draft Orders unless it also invokes the veto. But having said that, we see the merits of including a route to a debate in the case of non-veto opposition to such Orders. Because of that, we recognise that it might appear superficially consistent for Standing Orders to include (as is expected) a procedure for debate to follow non-veto opposition to affirmative or super-affirmative resolution procedure draft Orders as well.[4] In contrast, rightly in our view, Standing Orders are not expected to provide for the overturning of any veto, or the overturning of any Committee adjustment of the parliamentary procedure for making an Order. We take this opportunity of recording our understanding that the apparent distinction between different types of Committee recommendation results from the need for internal completeness in Standing Orders and no more. Whether or not Committee opposition to a draft Order operates by way of a veto, we expect the Government to honour its undertaking not to proceed in the face of that opposition. On the same basis, we expect the Government not to seek to overturn any Committee adjustment of the parliamentary procedure for making an Order.

Conclusion

11. In welcoming the progress that has been made in refining the Standing Orders, we continue to be disappointed that the last two outstanding points that separate us have not been fully resolved. Despite this disappointment, we would like the House to have the opportunity to consider the revised Standing Orders at the earliest opportunity.


1   Regulatory Reform Committee, First Special Report of Session 2006-07, Scrutiny of Regulatory Reform Orders, HC 160 and Regulatory Reform Committee, Second Special Report of Session 2006-07, Revised Standing Orders, HC 385 Back

2   Under our existing Standing Orders, a debate on a draft Order is required only if the Government tables a motion to approve a draft Order which we had previously approved following a division or where we had recommended that no further proceedings be taken. Back

3   Minister's letter (dated May 2007)  Back

4   It is envisaged that Standing Order 18 will introduce a potential debate on a draft affirmative or super-affirmative resolution Order by the words:

"(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,…"

The reference to "paragraphs (4) or (6)" does not include a reference to paragraph (8) - the provision in the proposed new Standing Order 141 that covers the veto. Back


 
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Prepared 7 June 2007