Constitutional Reform and Governance Bill

House of Commons

Session 2009 - 10
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Constitutional Reform and Governance Bill

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
71

Schedule 5
Section 44

Parliamentary Standards Act 2009: new Schedule 4
“Schedule 4
Section 9B

Enforcement
Part 1
5
Recovery of overpayments
Power to give repayment direction
1     (1)
This paragraph applies where the Compliance Officer—
(a)
has conducted an investigation in respect of a member of
the House of Commons under section 9, and
10
(b)
has made findings under section 9(5) that the member was
paid an amount under the MPs’ allowances scheme (the
“overpayment”) that—
(i)
should not have been allowed, and
(ii)
has not been repaid.
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      (2)
The Compliance Officer must give the member a direction under
this paragraph (a “repayment direction”).
      (3)
A repayment direction must require the member to pay to the
IPSA the amount of the overpayment before the end of the period
specified in the direction (the “repayment period”).
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      (4)
A repayment direction may also require the member to do one or
both of the following before the end of the repayment period—
(a)
pay to the IPSA interest on the overpayment, at the rate
and in relation to the period specified in the direction;
(b)
pay to the IPSA an amount reasonably representing the
25
costs incurred by the IPSA in relation to the overpayment,
including the costs of the Compliance Officer in
conducting the investigation.
      (5)
The Compliance Officer must send a copy of the repayment
direction to the IPSA.
30
      (6)
References in this Part of this Schedule to a member of the House
of Commons include a former member of that House.
      (7)
In this Schedule “overpayment”, “repayment direction” and
“repayment period” have the meaning given by this paragraph
(but in relation to the repayment period, see further paragraph
35
4(3)).
The costs requirement
2     (1)
The IPSA must prepare guidance about the circumstances in
which the Compliance Officer should include in a repayment
direction a requirement under paragraph 1(4)(b).
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Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
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      (2)
The amount mentioned in paragraph 1(4)(b) is to be calculated by
the Compliance Officer in accordance with a scheme prepared by
the IPSA for that purpose.
      (3)
Before preparing guidance under sub-paragraph (1) or a scheme
under sub-paragraph (2) the IPSA must consult the persons listed
5
in section 9A(6).
Appeal against repayment direction
3     (1)
A member who has been given a repayment direction under
paragraph 1 may appeal to the First-tier Tribunal against—
(a)
the Compliance Officer’s findings under section 9(5);
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(b)
a requirement contained in the repayment direction
because of paragraph 1(4).
      (2)
An appeal under this paragraph must be brought before the end
of the period of 28 days beginning with the day on which the
repayment direction is sent to the member (unless the Tribunal
15
directs that it may be brought after the end of that period).
      (3)
An appeal under this paragraph is by way of a rehearing.
      (4)
On an appeal under this paragraph the Tribunal may—
(a)
allow the appeal in whole or in part, or
(b)
dismiss the appeal.
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      (5)
If the Tribunal allows the appeal (in whole or in part) it may—
(a)
revoke the repayment direction;
(b)
revoke or vary any requirement contained in the
repayment direction;
(c)
make any other order it thinks fit.
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      (6)
If the Tribunal dismisses the appeal it may make any other order
it thinks fit.
      (7)
The Compliance Officer must notify the IPSA of the Tribunal’s
decision (and the result of any further appeal).
Extension of repayment period
30
4     (1)
The member may at any time before the end of the repayment
period make an application to the Compliance Officer for the
Compliance Officer to extend (or further extend) the repayment
period.
      (2)
The Compliance Officer must notify the IPSA of any decision by
35
the Compliance Officer to extend (or further extend) the
repayment period.
      (3)
If the Compliance Officer extends (or further extends) the
repayment period, references in this Schedule to the repayment
period are to that period as extended (or further extended) by the
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Compliance Officer.

Constitutional Reform and Governance Bill
Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
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      (4)
The member may appeal to the First-tier Tribunal against the
Compliance Officer’s decision on an application under this
paragraph.
      (5)
An appeal under this paragraph must be brought before the end
of the period of 28 days beginning with the day on which notice of
5
the decision is sent to the member (unless the Tribunal directs that
it may be brought after the end of that period).
      (6)
The appeal is by way of a rehearing.
      (7)
The Tribunal may—
(a)
allow the appeal in whole or in part, or
10
(b)
dismiss the appeal.
      (8)
If the Tribunal allows the appeal (in whole or in part) it may—
(a)
revoke or vary the Compliance Officer’s decision;
(b)
make any other order it thinks fit.
      (9)
If the Tribunal dismisses the appeal it may make any other order
15
it thinks fit.
     (10)
The Compliance Officer must notify the IPSA of the Tribunal’s
decision (and the result of any further appeal).
Enforcement of repayment direction
5     (1)
This paragraph applies to any amount which a member is
20
required by a repayment direction to pay to the IPSA, but only
when—
(a)
it is no longer possible for there to be a relevant appeal, and
(b)
all relevant appeals have been withdrawn or determined.
      (2)
A relevant appeal is—
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(a)
an appeal under paragraph 3 brought before the end of the
period mentioned in paragraph 3(2), or
(b)
a further appeal in relation to the repayment direction
which—
(i)
is brought before the end of the usual period for
30
bringing such an appeal, and
(ii)
is an appeal against the determination of an appeal
which was itself a relevant appeal.
      (3)
The IPSA may recover the amount by making deductions from—
(a)
any salary payable to the member under section 4;
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(b)
any allowances payable to the member under the MPs’
allowances scheme.
      (4)
In England and Wales and Northern Ireland the amount is
recoverable, if a county court so orders on the application of the
Compliance Officer, as if it were payable under an order of that
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court.
      (5)
In Scotland the amount is recoverable as if the repayment
direction were an extract registered decree arbitral bearing a

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Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
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warrant for execution issued by the sheriff court of any sheriffdom
in Scotland.
Part 2
Penalties
Power to impose penalties
5
6     (1)
If sub-paragraph (3) or (4) applies to a member of the House of
Commons, the Compliance Officer may by notice (a “penalty
notice”) impose a penalty on the member.
      (2)
A “penalty” means a sum of money payable by the member to the
IPSA.
10
      (3)
This sub-paragraph applies if the Compliance Officer has made a
finding under section 9(5) that the member has without reasonable
excuse failed to comply with a requirement under section 9(3)
(provision of information to Compliance Officer).
      (4)
This sub-paragraph applies if the Compliance Officer is satisfied
15
that the member has without reasonable excuse failed to comply
with any requirement contained in a repayment direction.
      (5)
The Compliance Officer must send a copy of the penalty notice to
the IPSA.
      (6)
References in this Part of this Schedule to a member of the House
20
of Commons include a former member of that House.
      (7)
In this Schedule “penalty notice” and “penalty” have the meanings
given by this paragraph.
Amount of penalty
7     (1)
The penalty notice must state the amount of the penalty.
25
      (2)
The amount of the penalty must not exceed £1,000.
      (3)
The amount in sub-paragraph (2) may be increased (or further
increased) by an order made by a Minister of the Crown.
      (4)
An order under sub-paragraph (3) is to be made by statutory
instrument.
30
      (5)
A statutory instrument containing an order under sub-paragraph
(3) may not be made unless a draft of the instrument has been laid
before and approved by a resolution of each House of Parliament.
Information to be contained in notice
8     (1)
The penalty notice must (as well as stating the amount of the
35
penalty) include information as to—
(a)
the reasons for imposing the penalty,
(b)
the period before the end of which the penalty is to be paid,
(c)
how the penalty may be paid,
(d)
the procedure and time limit for appealing,
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Schedule 5 — Parliamentary Standards Act 2009: new Schedule 4
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(e)
the effect of paragraph 12, and
(f)
any other matter specified by the IPSA.
      (2)
Before specifying a matter the IPSA must consult the persons
listed in section 9A(6).
Guidance etc
5
9     (1)
The IPSA must prepare guidance about—
(a)
the circumstances in which the Compliance Officer should
impose a penalty under paragraph 6, and
(b)
how the Compliance Officer should determine the amount
of the penalty.
10
      (2)
Before preparing the guidance the IPSA must consult the persons
listed in section 9A(6).
Review of penalty
10    (1)
The Compliance Officer may at any time review a decision to
impose a penalty on a member under paragraph 6.
15
      (2)
Following the review the Compliance Officer may cancel the
penalty or reduce the amount of the penalty.
      (3)
If the Compliance Office does either of those things, the
Compliance Officer must notify the IPSA.
      (4)
If the penalty (or part of the penalty) has already been paid the
20
IPSA must repay the member accordingly.
Appeal against penalty
11    (1)
A member on whom a penalty has been imposed under paragraph
6 may appeal to the First-tier Tribunal.
      (2)
An appeal under this paragraph must be brought before the end
25
of the period of 28 days beginning with the day on which the
penalty notice is sent to the member (unless the Tribunal directs
that it may be brought after the end of that period).
      (3)
The appeal is by way of a rehearing.
      (4)
On an appeal under this paragraph the Tribunal may—
30
(a)
allow the appeal and cancel the penalty,
(b)
allow the appeal and reduce the penalty, or
(c)
dismiss the appeal.
      (5)
The Compliance Officer must notify the IPSA of the Tribunal’s
decision (and the result of any further appeal).
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Enforcement of penalty
12    (1)
This paragraph applies to the amount of a penalty imposed on a
member under paragraph 6, but only when—
(a)
it is no longer possible for there to be a relevant appeal, and
(b)
all relevant appeals have been withdrawn or determined.
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      (2)
A relevant appeal is—
(a)
an appeal under paragraph 11 brought before the end of
the period mentioned in paragraph 11(2), or
(b)
a further appeal in relation to the penalty notice which—
(i)
is brought before the end of the usual period for
5
bringing such an appeal, and
(ii)
is an appeal against the determination of an appeal
which was itself a relevant appeal.
      (3)
The IPSA may recover the amount by making deductions from—
(a)
any salary payable to the member under section 4;
10
(b)
any allowances payable to the member under the MPs’
allowances scheme.
      (4)
In England and Wales and Northern Ireland the amount is
recoverable, if a county court so orders on the application of the
Compliance Officer, as if it were payable under an order of that
15
court.
      (5)
In Scotland the amount is recoverable as if the penalty notice were
an extract registered decree arbitral bearing a warrant for
execution issued by the sheriff court of any sheriffdom in
Scotland.
20
Payment of penalty into Consolidated Fund
13
The IPSA must pay into the Consolidated Fund—
(a)
the amount of any penalty paid to the IPSA, and
(b)
where the IPSA makes a deduction under paragraph 12(3),
an amount corresponding to the amount of the deduction.”
25
Schedule 6
Section 48

Parliamentary standards: consequential amendments
1
The Parliamentary Standards Act 2009 (c. 13) is amended as follows.
2
In section 2(2) (effect of Act on House of Lords)—
(a)
omit paragraph (a),
30
(b)
omit “and” at the end of paragraph (b),
(c)
in paragraph (c) for “paragraphs 4(2) and 8(1)” substitute “paragraph
8(2)”, and
(d)
after that paragraph insert “, and
(d)
paragraph 7(5) of Schedule 4.”
35
3
In section 5(8) (allowances) for the words from “and” to the end substitute
“and in relation to any such allowances, references in this Act to a member
of the House of Commons include a former member of that House.”
4     (1)
Section 12 (interpretation) is amended as follows.
      (2)
In subsection (1)—
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(a)
for ““the Commissioner”” substitute ““the Compliance Officer””,
and
(b)
omit the definition of “the MPs’ code of conduct relating to financial
interests”.
      (3)
In subsection (2)—
5
(a)
after “committee” (in each place) insert “or officer”, and
(b)
in paragraph (a) for “its” substitute “the”.
5     (1)
Section 13 (transitional provision) is amended as follows.
      (2)
Omit subsection (2)(b) and (c).
      (3)
In subsection (4) and (6)(c) for “Commissioner” substitute “Compliance
10
Officer”.
6
In section 14 (commencement) omit subsection (2)(d).
7     (1)
Schedule 1 (the IPSA) is amended as follows.
      (2)
Omit paragraph 10 and the heading above it.
      (3)
In paragraph 18(1)—
15
(a)
for paragraph (a) substitute—
“(a)
section 4 (MPs’ salaries), so far as relating to the
payment (but not the determination) of salaries,”,
(b)
in paragraph (c), after “claims)” insert “(except as mentioned in sub-
paragraph (2) below)”, and
20
(c)
omit the words following paragraph (c).
      (4)
In paragraph 18(2)—
(a)
before paragraph (a) insert—
“(za)
sections 4 and 4A (MPs’ salaries) (except as
mentioned in sub-paragraph (1) above),”,
25
(b)
after paragraph (a) insert—
“(aa)
section 6(10) (determining procedures for
publication of allowances claims),”,
(c)
omit paragraph (b) (and the “and” following it), and
(d)
for paragraph (c) substitute—
30
“(c)
section 9(8)(b) and (9) (determining conditions),
(d)
section 9A (determining procedures for
investigations etc),
(e)
paragraphs 1, 2(2), 4(2) and 9(2) of Schedule 2
(appointment and removal of Compliance Officer
35
etc), and
(f)
paragraphs 2, 8 and 9 of Schedule 4 (scheme,
guidance etc for Compliance Officer).”
      (5)
In paragraph 22(8) for “Any repayments” substitute “Any payments
received by the IPSA as a result of a repayment direction under Schedule 4,
40
and any repayments otherwise”.