Health and Social Care Bill

Session 2010 - 11
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Other Bills before Parliament

Health and Social Care Bill

Health and Social Care Bill
Schedule 8 — Monitor
332

      (8)
Monitor must act with a view to securing that NHS foundation trusts—
(a)
comply promptly with requests from it or the Secretary of State for
information relating to their accounts, and
(b)
otherwise act so as to facilitate the preparation of accounts by the
Secretary of State.
5
      (9)
This paragraph does not apply to the financial year specified for the
purposes of section 152(7) (which provides for the order that commences
section 152, which itself relates to the preparation of the accounts of NHS
foundation trusts, to specify the first financial year to which that section will
apply) or to the subsequent financial years.
10
Accounts of Monitor
18    (1)
Monitor must keep proper accounts and proper records in relation to the
accounts.
      (2)
The Secretary of State may, with the approval of the Treasury, give
directions to Monitor as to—
15
(a)
the content and form of its accounts, and
(b)
the methods and principles to be applied in the preparation of its
accounts.
      (3)
In sub-paragraph (2), the reference to accounts includes Monitor’s annual
accounts prepared under paragraph 19 and any interim accounts prepared
20
by virtue of paragraph 20.
19    (1)
Monitor must prepare annual accounts in respect of each financial year.
      (2)
Monitor must send copies of the annual accounts to the Secretary of State
and the Comptroller and Auditor General within such period after the end
of the financial year to which the accounts relate as the Secretary of State
25
may direct.
      (3)
The Comptroller and Auditor General must—
(a)
examine, certify and report on the annual accounts, and
(b)
lay copies of them and the report before Parliament.
20    (1)
The Secretary of State may, with the approval of the Treasury, direct
30
Monitor to prepare accounts in respect of such period or periods as may be
specified in the direction (“interim accounts”).
      (2)
Monitor must send copies of any interim accounts to the Secretary of State
and, if the Secretary of State so directs, the Comptroller and Auditor General
within such period as the Secretary of State may direct.
35
      (3)
The Comptroller and Auditor General must—
(a)
examine, certify and report on any interim accounts sent by virtue of
sub-paragraph (2),
(b)
if the Secretary of State so directs, send a copy of the report on the
accounts to the Secretary of State, and
40
(c)
if the Secretary of State so directs, lay copies of the accounts and the
report on them before Parliament.

Health and Social Care Bill
Schedule 9 — Requirements under section 67: undertakings
333

Reports and other information
21    (1)
As soon as practicable after the end of each financial year, Monitor must
prepare an annual report on how it has exercised its functions during the
year.
      (2)
The report must, in particular, set out the measures that Monitor has taken
5
to promote economy, efficiency and effectiveness in the use of resources for
the exercise of its functions.
      (3)
Monitor must—
(a)
lay a copy of the report before Parliament, and
(b)
once it has done so, send a copy of it to the Secretary of State.
10
      (4)
Monitor must provide the Secretary of State with—
(a)
such other reports and information relating to the exercise of
Monitor’s functions as the Secretary of State may require;
(b)
such information about NHS foundation trusts that Monitor has in
its possession as the Secretary of State may require.
15
Recommendations by Committees in Parliament
22
Monitor must respond in writing to any recommendation about its exercise
of its functions that a Committee of either House of Parliament or a
Committee of both Houses makes.
Seal and evidence
20
23    (1)
The application of Monitor’s seal must be authenticated by the signature of
the chair or any other person who has been authorised (generally or
specifically) for that purpose.
      (2)
A document purporting to be duly executed under Monitor’s seal or to be
signed on its behalf must be received in evidence and, unless the contrary is
25
proved, taken to be so executed or signed.
Status
24    (1)
Monitor must not be regarded as the servant or agent of the Crown or as
enjoying any status, immunity or privilege of the Crown.
      (2)
Monitor’s property must not be regarded as property of, or property held on
30
behalf of, the Crown.
Schedule 9
Section 69

Requirements under section 67: undertakings
Procedure
1     (1)
Monitor must publish a procedure for entering into section 69 undertakings.
35
      (2)
Monitor may revise the procedure and, if it does so, Monitor must publish
the procedure as revised.

Health and Social Care Bill
Schedule 9 — Requirements under section 67: undertakings
334

      (3)
Monitor must consult such persons as it considers appropriate before
publishing or revising the procedure.
2     (1)
Where Monitor accepts a section 69 undertaking, Monitor must publish the
undertaking.
      (2)
But Monitor must not under sub-paragraph (1) publish any part of a section
5
69 undertaking which contains commercial information the disclosure of
which Monitor considers would or might significantly harm the legitimate
business interests of any person to whom it relates.
Variation of terms
3
The terms of a section 69 undertaking (including in particular the action
10
specified under it and the period so specified within which the action must
be taken) may be varied if both the person giving the undertaking and
Monitor agree.
Compliance certificates
4     (1)
Where Monitor is satisfied that a section 69 undertaking has been complied
15
with, Monitor must issue a certificate to that effect (referred to in this
Schedule as a “compliance certificate”).
      (2)
A person who has given a section 69 undertaking may at any time make an
application to Monitor for a compliance certificate.
      (3)
The application must be made in such form, and accompanied by such
20
information, as Monitor requires.
      (4)
Monitor must decide whether or not to issue a compliance certificate, and
give notice to the applicant of its decision, before the end of the period of 14
days beginning with the day after that on which the application is received.
5     (1)
An appeal lies to the First-tier Tribunal against a decision of Monitor to
25
refuse an application for a compliance certificate.
      (2)
The grounds for an appeal under this paragraph are that the decision was—
(a)
based on an error of fact,
(b)
wrong in law, or
(c)
unfair or unreasonable.
30
      (3)
On an appeal under this paragraph, the Tribunal may confirm Monitor’s
decision or direct that it is not to have effect.
Inaccurate, incomplete or misleading information
6
Where Monitor is satisfied that a person who has given a section 69
undertaking has supplied Monitor with inaccurate, misleading or incorrect
35
information in relation to the undertaking—
(a)
Monitor may treat the person as having failed to comply with the
undertaking, and
(b)
if Monitor decides so to treat the person, Monitor must by notice
revoke any certificate of compliance given to that person.
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Health and Social Care Bill
Schedule 10 — References by Monitor to the Competition Commission
335

Schedule 10
Sections 103 and 140

References by Monitor to the Competition Commission
Variation of reference
1     (1)
Monitor may, at any time, by notice given to the Competition Commission
vary a reference—
5
(a)
by adding to the matters specified in the reference, or
(b)
by excluding from the reference some of the matters so specified.
      (2)
On receipt of a notice under sub-paragraph (1), the Commission must give
effect to the variation.
Monitor’s opinion of public interest etc.
10
2
Monitor may specify in a reference, or a variation under paragraph 1, for the
purpose of assisting the Competition Commission in carrying out the
investigation on the reference—
(a)
any effects adverse to the public interest which Monitor considers
the matters specified in the reference or variation have or may be
15
expected to have, and
(b)
any changes in relation to those matters by which Monitor considers
those effects could be remedied or prevented.
Publication etc. of reference
3
As soon as practicable after making a reference, or a variation under
20
paragraph 1, Monitor—
(a)
must send a copy of the reference or variation to the relevant
persons, and
(b)
must publish particulars of the reference or variation.
Information
25
4     (1)
Monitor must, for the purpose of assisting the Competition Commission in
carrying out an investigation on a reference, or in carrying out the function
under paragraph 8, give the Commission—
(a)
such information in Monitor’s possession as relates to matters within
the scope of the investigation or the carrying out of the function
30
and—
(i)
is requested by the Commission for that purpose, or
(ii)
is information which Monitor considers it would be
appropriate for that purpose to give to the Commission
without request, and
35
(b)
such other assistance as the Commission may require, and as is
within its power to give, in relation to any such matters.
      (2)
The Commission must, for the purpose of carrying out the investigation or
the function, take account of such information as is given to it for that
purpose under sub-paragraph (1).
40

Health and Social Care Bill
Schedule 10 — References by Monitor to the Competition Commission
336

Time limits
5     (1)
A reference must specify a period within which the Competition
Commission must make a report on the reference.
      (2)
A period specified for the purposes of sub-paragraph (1) must not be longer
than six months beginning with the date of the reference.
5
      (3)
A report of the Commission on a reference does not have effect (and no
action may be taken in relation to it under paragraph 7) unless the report is
made before the end of—
(a)
the period specified in the reference, or
(b)
such further period as is allowed under sub-paragraph (4).
10
      (4)
Monitor may, if it receives representations on the subject from the
Competition Commission and is satisfied that there are special reasons why
the report cannot be made within the period specified in the reference,
extend the period by no more than six months.
      (5)
But Monitor may not make more than one extension under sub-paragraph
15
(4) in relation to the same reference.
      (6)
Where Monitor makes an extension under sub-paragraph (4), it must send
notice of the extension to the relevant persons.
      (7)
Monitor must also publish the notice.
Reports on references
20
6     (1)
In making a report on a reference, the Competition Commission—
(a)
must include in the report definite conclusions on the questions in
the reference together with such an account of its reasons for those
conclusions as it considers expedient for facilitating a proper
understanding of those questions and of its conclusions,
25
(b)
where it concludes that any of the matters specified in the reference
operate, or may be expected to operate, against the public interest,
must specify in the report the effects adverse to the public interest
which those matters have or may be expected to have, and
(c)
where it concludes that any adverse effects so specified could be
30
remedied or prevented by changes in relation to the matters
specified in the reference, must specify in the report changes which
could remedy or prevent those effects.
      (2)
For the purposes of paragraphs 7 and 8, a conclusion in a report of the
Commission is to be disregarded if the conclusion is not that of at least two-
35
thirds of the members of the group constituted in connection with the
reference in pursuance of paragraph 15 of Schedule 7 to the Competition Act
1998.
      (3)
If a member of a group so constituted disagrees with a conclusion in a report
made on a reference, the report must, if the member so wishes, include a
40
statement of the member’s disagreement and reasons for disagreeing.
      (4)
A report of the Commission on a reference must be sent to Monitor.
      (5)
On receiving a report on a reference, Monitor must send a copy of it to the
Secretary of State.

Health and Social Care Bill
Schedule 10 — References by Monitor to the Competition Commission
337

      (6)
Not less than 14 days after the Secretary of State receives that copy, Monitor
must send a copy to the relevant persons.
      (7)
Not less than 24 hours after complying with sub-paragraph (6), Monitor
must publish the report.
Changes following report
5
7     (1)
This paragraph applies where a report of the Competition Commission on a
reference—
(a)
includes conclusions to the effect that any of the matters specified in
the reference operate, or may be expected to operate, against the
public interest,
10
(b)
specifies effects adverse to the public interest which those matters
have or may be expected to have,
(c)
includes conclusions to the effect that those effects could be
remedied or prevented by changes to the matters specified in the
reference, and
15
(d)
specifies changes by which those effects could be remedied or
prevented.
      (2)
Monitor must make such changes to the matters specified in the reference as
it considers necessary for the purpose of remedying or preventing the
adverse effects specified in the report.
20
      (3)
Before making changes under this paragraph, Monitor must have regard to
the changes specified in the report.
      (4)
Before making changes under this paragraph, Monitor must send a notice—
(a)
stating that it proposes to make the changes and setting out their
effect,
25
(b)
stating the reasons why it proposes to make the changes, and
(c)
specifying the period within which representations with respect to
the changes may be made.
      (5)
A period specified for the purposes of sub-paragraph (4)(c) must not be less
than 28 days beginning with the day after that on which the notice is
30
published.
      (6)
Monitor must send the notice to the relevant persons.
      (7)
Monitor must also publish the notice.
      (8)
After considering such representations as it receives before the end of the
period under sub-paragraph (4)(c), Monitor must send a notice to the
35
Competition Commission—
(a)
specifying the changes it proposes to make to remedy or prevent the
adverse effects specified in the report, and
(b)
stating the reasons for proposing to make the changes.
      (9)
Monitor must include with the notice under sub-paragraph (8) a copy of the
40
representations referred to in that sub-paragraph.
     (10)
If a direction under paragraph 8 is not given to Monitor before the end of the
period of four weeks beginning with the date on which it sends the notice
under sub-paragraph (8), Monitor must make the changes specified in the
notice.
45

Health and Social Care Bill
Schedule 10 — References by Monitor to the Competition Commission
338

     (11)
If a direction under that paragraph is given to Monitor before the end of that
period, Monitor must make such of the changes as are not specified in the
direction.
Competition Commission’s power to veto changes
8     (1)
The Competition Commission may, within the period of four weeks
5
beginning with the day on which it is sent a notice under paragraph 7(8),
direct Monitor—
(a)
not to make the changes set out in the notice, or
(b)
not make such of the changes as may be specified in the direction.
      (2)
Monitor must comply with a direction under sub-paragraph (1).
10
      (3)
The Secretary of State may, within that period and on the application of the
Commission, direct that the period for giving a direction under sub-
paragraph (1) (and, accordingly, the period referred to in paragraph 7(10)) is
to be extended by 14 days.
      (4)
The Commission may give a direction under sub-paragraph (1) only in
15
respect of such of the changes specified in the notice under paragraph 7(8)(a)
as it considers are necessary for the purpose of remedying or preventing one
or more of the adverse effects specified in the report as effects which could
be remedied or prevented by changes.
      (5)
If the Commission gives a direction under sub-paragraph (1), it—
20
(a)
must give notice specifying the changes proposed by Monitor, the
terms of the direction and the reasons for giving it, and
(b)
must itself make such changes to the matters specified in the
reference as it considers necessary for the purpose of remedying or
preventing the effects referred to in sub-paragraph (6).
25
      (6)
The effects mentioned in sub-paragraph (5)(b) are—
(a)
in the case of a direction under sub-paragraph (1)(a), the adverse
effects specified in the report as effects which could be remedied or
prevented by changes, or
(b)
in the case of a direction under sub-paragraph (1)(b), such of those
30
adverse effects as are not remedied or prevented by the changes
made by Monitor under paragraph 7(11).
      (7)
In exercising its function under sub-paragraph (5)(b), the Commission must
have regard to the matters to which Monitor must have regard when
determining the matters specified in the reference.
35
      (8)
Before making changes under sub-paragraph (5)(b), the Commission must
send a notice—
(a)
stating that it proposes to make the changes and specifying them,
(b)
stating the reason why it proposes to make them, and
(c)
specifying the period within which representations on the proposed
40
changes may be made.
      (9)
The period specified for the purposes of sub-paragraph (8)(c) must not be
less than 28 days beginning with the date on which the notice is published.
     (10)
The Commission must send a notice under sub-paragraph (8) to the relevant
persons.
45