| Previous Section | Back to Table of Contents | Lords Hansard Home Page |
Lord Whitty: The amendment does not require any reporting as I read it, but Ofwat already reports and the authority that replaces it will continue to report on much to which the noble Lord referred.
Baroness Byford: I thank the Minister for his response, although I am disappointed. He indicated that he considered that parts of the amendment were desirable, and that the Government could accept them. He has reservations on proposed new subsection (4)(b) and has explained why—in particular, that he thinks that it will reduce the ability of the water companies to run their businesses as well as they might.
Would proposed new subsection (4)(a) be acceptable? I am really looking to the Minister for guidance. I cannot see any reason not to accept proposed new subsection (4)(c) or (d). He indicated
that proposed new subsection (4)(e) was already catered for, but would he have regard for proposed new subsection (4)(a), (c) and (d), or a rewording of those paragraphs? As the wording is obviously not acceptable to the Government, they could take the wording away and think about tabling or letting us table another amendment to deal with the issues that those paragraphs cover. To me, they seem to make common sense and to be acceptable.5 p.m.
Lord Whitty: We do not usually legislate on the basis that there is no good argument against a particular provision. We legislate on the basis that it is necessary. In general, we do not need a repetition of the reference to various principles of regulation that are set out in the amendment. However, I shall have another look at it to see whether there is a version of it that would be helpful.
Baroness Byford: I am grateful to the Minister, particularly in relation to paragraph (a). It is important that it is targeted only at cases that need action. It seems to me silly to waste taxpayers' money on examining cases where no action is needed or where the action has been agreed with Ofwat directly and the water companies are trying to put the matter right. I believe that paragraph (a) is hugely important. I am grateful to the Minister for indicating that he is willing to consider paragraphs (a), (c) and (d). I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
[Amendment No. 98A not moved.]
Clause 39 [Guidance to Authority on social and environmental matters]:
[Amendments Nos. 99 and 100 not moved.]
Baroness Byford moved Amendment No. 101:
- After Clause 39, insert the following new clause—
The noble Baroness said: This amendment deals with the authority's statement of policy. We feel that it is important. I know it is a long amendment. I believe that the hearts of Ministers and legal people must have sunk when they saw the length of it. The Minister nods. I quite understand, but the amendment is very important; that is why we have tabled it. We would not table amendments unless we thought they were important.
The aim of the amendment is to achieve better decision-making through discussions at an early stage in order to get decisions right in the first place, which would, in turn, lessen the work referred to the Competition Commission. If that were achieved, it would save costs both from the commission's point of view and from that of the water companies, the latter having to provide senior managers who are then away from their job of running the water companies efficiently, which is what we require them to do. We believe that that preventive work would benefit all.
Concern has been expressed by Water UK that there is a lack of opportunity for companies to make representations early enough. Subsection (7)(c) of the proposed new clause would give each person reasonable opportunity to make oral representations. I hope that the idea will be welcomed by the Minister.
Subsection (11) places on the Competition Commission the duty to determine the policy. I shall deal with that shortly.
I return to subsection (11), which states:
I have picked up one or two specific issues from this rather long amendment. I suspect that other noble Lords may wish to comment on issues to which I have not referred. I beg to move.
"AUTHORITY'S STATEMENT OF POLICY
After section 2 of the WIA there is inserted— "2B AUTHORITY'S STATEMENT OF POLICY
(1) The Authority shall prepare and publish a statement of policy with respect to its determination of charges in periodic reviews and interim determinations under all or any of the instruments of appointment of companies as relevant undertakers made by virtue of Part 2 of this Act.
(2) The Authority's statement of policy under this section shall include a statement of its policy with regard to—
(a) the carrying out of its duties under this Act insofar as they relate to its determination of charges;
(b) the matters to be taken into account and the methodologies to be applied in its determination of charges; and
(c) the extent to which the performance of functions by persons with powers and duties conferred or imposed by or under this Act or any other enactment are relevant to its determination of charges.
(3) The Authority shall determine charges in periodic reviews and interim determinations under a company's instrument of appointment as a relevant undertaker on the basis of the most recently published statement of policy.
(4) The Authority may revise its statement of policy and where it does so shall publish the revised statement.
(5) Publication under this section shall be in such manner as the Authority considers appropriate for the purpose of bringing the matters contained in the statement of policy to the attention of persons likely to be affected by them and shall not be made less than twelve months before a periodic review.
(6) When preparing or revising its statement of policy under this section, the Authority shall consult relevant undertakers and such other persons as it considers appropriate, subject to the requirements of subsection (7).
(7) For the purposes of subsection (6)—
(a) consultation shall be by way of written notice given by the Authority not less than six months prior to the publication of the statement of policy which it is preparing or revising;
(b) such notice shall state—
(i) the matters which the Authority proposes to publish in its statement of policy and its reasons for including them in the statement; and
(ii) a period of not less than three months within which that person may give written notice of objection with respect to the matters referred to in the notice; and
(c) the Authority shall give each person reasonable opportunity to make oral representations to it on the matters referred to in the notice.
(8) The Authority shall not issue or publish a statement of policy unless—
(a) no notice of objection to the policy is given to the Authority within the time period specified in its notice under subsection (7); or
(b) if one or more relevant undertakers gives notice of objection to the Authority within that time—
(i) the proportion (expressed as a percentage) of the relevant undertakers who have given notice of objection is less than such percentage as may be prescribed; and
(ii) the percentage given by subsection (9) is less than such percentage as may be prescribed.
(9) The percentage given by this subsection is the proportion (expressed as a percentage) of the relevant undertakers who have given notice of objection, weighted according to their market share in such manner as may be prescribed.
(10) If the conditions referred to in subsection (8) are not met, the Authority shall (within three months of its receipt of the first or only notice of objection) refer the policy to the Competition Commission for review.
(11) Where a reference is made to the Competition Commission under this section, it shall be the duty of the Competition Commission to determine whether the policy which is the subject of the reference operates in a manner best calculated to fulfil the duties of the Authority arising under this Act.
(12) Where a reference is made to the Competition Commission under this section, the Authority shall not prepare or revise its statement of policy other than on the basis of the determinations of the Competition Commission.
(13) The Secretary of State may by regulations make such provision as he considers appropriate for regulating the procedure to be followed with respect to any reference to the Competition Commission under this section.
(14) Without prejudice to the generality of the power conferred by subsection (13), regulations under that subsection may, in relation to any such reference, apply (with or without modifications) the provisions of any enactment relating to the references to the Competition Commission under the provisions of this Act, the Fair Trading Act 1973 (c. 41) or the Competition Act 1998 (c. 41).""
Xthe Authority shall not prepare or revise its statement of policy other than on the basis of the determinations of the Competition Commission".
If it does, why have a Competition Commission at all? We believe that no one should overrule it. That is why the amendment is in that form.
XThe Secretary of State may by regulations make such provision as he considers appropriate for regulating the procedure to be followed with respect to any reference to the Competition Commission under this section".
XWhere a reference is made to the Competition Commission under this section, it shall be the duty of the Competition Commission to determine whether the policy which is the subject of the reference operates in a manner best calculated to fulfil the duties of the Authority arising under this Act".
Next Section
Back to Table of Contents
Lords Hansard Home Page