Constitutional Reform and Governance Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Constitutional Reform and Governance Bill

Constitutional Reform and Governance Bill
Schedule 5 — Judicial appointments etc
52

      (6)
After subsection (4) insert—
“(4A)
The Lord Chancellor may notify the Commission under this
subsection if—
(a)
the candidate does not comply with a re quest under
subsection (2B) or (3)(a), or
5
(b)
the Lord Chancellor is not satisfied, on the basis of a report
under subsection (3)(b), that it would be appropriate to
appoint or recommend the candidate.
(4B)
Before notifying the Commission under subsection (4A) the Lord
Chancellor must consult the Lord Chief Justice.”
10
      (7)
In subsection (5)—
(a)
in paragraph (a) for “previous” substitute “other”, and
(b)
after paragraph (c) insert—
“(d)
the candidate must not be selected again pursuant to
that request for the same appointment or
15
recommendation.”
      (8)
This paragraph and paragraph 6 below have no effect in a case in which the
Lord Chancellor accepts a selection under Chapter 2 of Part 4 of the 2005 Act
made pursuant to a pre-commencement request.
      (9)
“Pre-commencement request” means a request made before the coming into
20
force of this paragraph.
6
In section 97(1)(e) for “96(4)(a)” substitute “96(4B)”.
7
In section 118 before subsection (1) insert—
“(A1)
This Chapter applies in relation to justices of the peace appointed
under section 10(1) of the Courts Act 2003 as it would apply if the
25
office were listed in Schedule 14.”
8
After section 139(4)(e) (disclosure of confidential information) insert—
“(f)
the disclosure is made—
(i)
for the purpose of preventing a crime, or
(ii)
for the purposes of a criminal investigation or
30
criminal proceedings or a decision whether to start
such an investigation or proceedings.”
9
In paragraphs 10, 13(2) and 14(2) of Schedule 8 for “notifies” substitute
“recommends”.
10
In Part 2 of Schedule 14 omit the entries relating to—
35
(a)
justice of the peace, and
(b)
justice of the peace who is not a District Judge (Magistrates’ Courts).

Constitutional Reform and Governance Bill
Schedule 6 — The National Audit Office
Part 2 — Non-executive members
53

Schedule 6
Section 43

The National Audit Office
Part 1
Membership and status
Membership
5
1     (1)
NAO is to have nine members.
      (2)
They are to be—
(a)
five persons who are not employees of NAO (“non-executive
members”) (see Part 2 below);
(b)
the Comptroller and Auditor General (see Part 3 below);
10
(c)
three employees of NAO (“employee members”) (see Parts 4 and 5
below).
Status
2     (1)
NAO (including its members and employees) is not to be regarded—
(a)
as the servant or agent of the Crown, or
15
(b)
as enjoying any status, immunity or privilege of the Crown.
      (2)
NAO’s property is not to be regarded as property of, or held on behalf of,
the Crown.
Part 2
Non-executive members
20
The chair of NAO
3     (1)
One of the non-executive members is to be the chair of NAO.
      (2)
It is for Her Majesty by Letters Patent to appoint the chair of NAO.
      (3)
Her Majesty’s power is exercisable on an address of the House of Commons.

This is subject to sub-paragraph (6).
25
      (4)
It is for the Prime Minister to move the motion for the address.
      (5)
To do so the Prime Minister must have the agreement of the person who
chairs the Committee of Public Accounts.
      (6)
Her Majesty may by Letters Patent extend an appointment under this
paragraph on the recommendation of the Prime Minister.
30
      (7)
To make a recommendation the Prime Minister must have the agreement of
the person who chairs the Committee of Public Accounts.
      (8)
An extension of an appointment counts as a separate appointment for the
purposes of paragraphs 5 to 7.

Constitutional Reform and Governance Bill
Schedule 6 — The National Audit Office
Part 2 — Non-executive members
54

Appointment of other non-executive members
4     (1)
The other non-executive members are to be appointed by the Commission as
follows.
      (2)
If there is a vacancy, the chair of NAO must recommend a person to the
Commission for appointment.
5
      (3)
The Commission may—
(a)
appoint that person, or
(b)
require the chair to recommend another person (in which event this
sub-paragraph applies again and so on until someone is appointed).
Period of appointment and re-appointment
10
5     (1)
An appointment under this Part of this Schedule is to be for a period of no
more than three years.
      (2)
A person may not be appointed under this Part of this Schedule more than
twice.
Remuneration packages
15
6     (1)
The Prime Minister and the person who chairs the Committee of Public
Accounts may jointly determine a remuneration package for the chair of
NAO.
      (2)
Amounts required for providing the remuneration package of the chair of NAO are
to be charged on and paid out of the Consolidated Fund.
20
      (3)
The Commission may determine a remuneration package for any other non-
executive member.
      (4)
The remuneration packages of the other non-executive members are to be
paid for by NAO.
      (5)
A remuneration package determined under this paragraph—
25
(a)
may include an annual salary, allowances and other benefits but may
not include arrangements for a pension;
(b)
may include a formula or other mechanism for adjusting one or more
elements of the package from time to time.
Other terms of appointment
30
7     (1)
The Commission may determine other terms for an appointment under this
Part of this Schedule not covered by paragraph 5 or 6.
      (2)
These terms may include restrictions on—
(a)
the offices or positions (including offices and positions for which
persons are appointed or recommended by or on behalf of the
35
Crown) that the non-executive member may hold while, or after
ceasing to be, a member;
(b)
the agreements or other arrangements (including agreements and
arrangements with the Crown or bodies or other persons acting on
behalf of the Crown) that the non-executive member may be a party
40
to while, or after ceasing to be, a member.

Constitutional Reform and Governance Bill
Schedule 6 — The National Audit Office
Part 4 — Employee members
55

Consultation
8
Before making a determination under paragraph 6 or 7, the Commission
must consult any person with oversight of public appointments who the
Commission thinks it is appropriate to consult.
Termination of appointments
5
9     (1)
The chair of NAO may resign by giving written notice to the Prime Minister.
      (2)
Any other non-executive member may resign by giving written notice to the
Commission.
10    (1)
Her Majesty may terminate the appointment of the chair of NAO on an
address of both Houses of Parliament.
10
      (2)
The Commission may terminate the appointment of any other non-
executive member by giving the member written notice if—
(a)
the member has been absent from meetings of NAO without NAO’s
permission for a period of more than three months,
(b)
in England and Wales or Northern Ireland, a bankruptcy order is
15
made in relation to the member,
(c)
in Scotland, the member’s estate is sequestrated,
(d)
the member is unfit to continue the appointment because of
misconduct,
(e)
the member has failed to comply with the terms of the appointment,
20
or
(f)
the member is otherwise unable, unfit or unwilling to carry out the
member’s functions.
Part 3
Chief executive
25
11
The Comptroller and Auditor General is to be the chief executive (but not an
employee) of NAO.
Part 4
Employee members
Appointment
30
12    (1)
The employee members are to be appointed by the non-executive members
as follows.
      (2)
If there is a vacancy, the Comptroller and Auditor General must recommend
a person to the non-executive members for appointment.
      (3)
The non-executive members may—
35
(a)
appoint that person, or
(b)
require the Comptroller and Auditor General to recommend another
person (in which event this sub-paragraph applies again and so on
until someone is appointed).

Constitutional Reform and Governance Bill
Schedule 6 — The National Audit Office
Part 5 — Employees
56

Terms of appointment
13    (1)
The terms of an employee member’s appointment are to be determined by
the non-executive members.
      (2)
Terms may provide for an employee member to receive a remuneration
package which—
5
(a)
may include an annual salary, allowances and other benefits but,
subject to sub-paragraph (4), may not include arrangements for a
pension;
(b)
may include a formula or other mechanism for adjusting one or more
elements of the package from time to time.
10
      (3)
The remuneration package is to be paid for by NAO (subject to sub-
paragraph (4)).
      (4)
If an employee member (“E”) is a participant in a pension scheme under the
terms of E’s employment with NAO, E’s remuneration package may
provide for those terms to apply to E’s service as employee member as if it
15
were part of E’s service as employee.
      (5)
So far as appropriate, the Superannuation Act 1972 (c. 11) and any scheme
under that Act applies in relation to E accordingly.
Termination of appointments
14
The appointment of an employee member terminates—
20
(a)
if the terms of the member’s appointment provide for it to expire at
the end of a period, at the end of that period;
(b)
in any event, when the member ceases to be an employee of NAO.
15
An employee member may resign by giving written notice to the non-
executive members.
25
16
The non-executive members may terminate the appointment of an employee
member by giving the member written notice if—
(a)
the member has been absent from meetings of NAO without NAO’s
permission for a period of more than three months,
(b)
in England and Wales or Northern Ireland, a bankruptcy order is
30
made in relation to the member,
(c)
in Scotland, the member’s estate is sequestrated,
(d)
the member is unfit to continue the appointment because of
misconduct,
(e)
the member has failed to comply with the terms of the appointment,
35
or
(f)
the member is otherwise unable, unfit or unwilling to carry out the
member’s functions.
Part 5
Employees
40
17    (1)
NAO may employ staff.

Constitutional Reform and Governance Bill
Schedule 6 — The National Audit Office
Part 7 — Other matters
57

      (2)
In determining the terms of employment of any staff, NAO must have
regard to the desirability of keeping the terms broadly in line with those
applying to civil servants.
      (3)
A person who is an employee of NAO must not hold any office or position
for which the person is appointed or recommended by or on behalf of the
5
Crown.
Part 6
Procedural rules
General
18
NAO must make rules for the purpose of regulating NAO’s procedure.
10
Quorum for NAO meetings
19
If the rules provide for a quorum for any meetings of NAO, the quorum
cannot be met unless a majority of the members present are non-executive
members.
Committees
15
20    (1)
The rules may include provision—
(a)
for the setting up of committees of NAO and for those committees to
set up sub-committees;
(b)
regulating the procedures of those committees and sub-committees.
      (2)
An employee of NAO who is not an employee member may be a member of
20
a committee or sub-committee.
      (3)
A person who is neither a member of NAO nor an employee of NAO may
be a member of a committee or sub-committee so long as no functions of
NAO are delegated to the committee or sub-committee (see paragraph 23).
Part 7
25
Other matters
Powers
21
NAO may do anything calculated to facilitate, or incidental or conducive to,
the carrying out of any of its functions.
Validity of proceedings
30
22
The validity of any proceedings of NAO, the non-executive members or any
committee or sub-committee is not affected by a vacancy or a defective
appointment.
Delegation
23    (1)
NAO may delegate functions to any of its members, employees or
35
committees.

Constitutional Reform and Governance Bill
Schedule 6 — The National Audit Office
Part 7 — Other matters
58

      (2)
A committee may delegate functions (including functions delegated to it) to
a sub-committee.
      (3)
The delegation of a function does not prevent NAO or the committee (as the
case may be) from carrying out the function itself.
      (4)
Functions under the following provisions may not be delegated—
5
(a)
section 45(2) of this Act;
(b)
paragraph 18 or 25(1) of this Schedule;
(c)
paragraph 1(1), 3(1) or (3), 7(3), 9(1) or 10(1) to (5) of Schedule 7.
NAO to prepare resource accounts
24    (1)
Resource accounts of the kind mentioned in section 5 of the Government
10
Resources and Accounts Act 2000 (c. 20) must be prepared for NAO for each
financial year.
      (2)
The Commission must appoint the Comptroller and Auditor General or
some other appropriate person as accounting officer to be responsible for
that.
15
      (3)
The person appointed as accounting officer must carry out any other
functions determined by the Commission.
Audit of NAO
25    (1)
NAO must appoint an auditor for NAO for each financial year.
      (2)
The Commission’s approval is required for the appointment (including its
20
terms).
      (3)
The auditor must be eligible for appointment as a statutory auditor by virtue
of Chapter 2 of Part 42 of the Companies Act 2006 (c. 46).
      (4)
Sections 1214 and 1216 of the 2006 Act apply as if the audit of NAO were a
statutory audit.
25
      (5)
The auditor must examine NAO’s resource accounts for the financial year.
      (6)
Sections 6(1) and 25(2) of the Government Resources and Accounts Act 2000
apply (with any necessary modifications) in relation to the examination as
they apply in relation to an examination by the Comptroller and Auditor
General of the resource accounts of a department.
30
      (7)
On completion of the examination the auditor must—
(a)
certify the accounts, and
(b)
send them, together with the auditor’s report on them, to the
Commission.
      (8)
The Commission must lay the accounts and report before the House of
35
Commons.
26    (1)
The terms of the auditor’s appointment may require the auditor to carry out
economy, efficiency and effectiveness examinations of the use of NAO’s
resources.
      (2)
On completion of the examinations, the auditor must send its report to the
40
Commission.